N-CSR 1 a10-2539_3ncsr.htm N-CSR

 

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

811-01829

 

Columbia Acorn Trust

(Exact name of registrant as specified in charter)

 

One Financial Center, Boston, Massachusetts

 

02111

(Address of principal executive offices)

 

(Zip code)

 

James R. Bordewick, Jr., Esq.

Columbia Management Advisors, LLC

One Financial Center

Boston, MA 02111

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

1-617-426-3750

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

December 31, 2009

 

 

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.

 


 

Item 1. Reports to Stockholders.

 

 


Q4 2009

Columbia Management®

Columbia Acorn Family of Funds

Class Z Shares

Managed by Columbia Wanger Asset Management, L.P.

Annual Report

December 31, 2009

n  ColumbiaSM
Acorn® Fund

n  ColumbiaSM
Acorn International®

n  ColumbiaSM
Acorn USA®

n  ColumbiaSM
Acorn International SelectSM

n  ColumbiaSM
Acorn SelectSM

n  ColumbiaSM
Thermostat FundSM

NOT FDIC INSURED

NOT BANK ISSUED

May Lose Value

No Bank Guarantee


Columbia Acorn Family of Funds

Descriptions of Indexes Included in this Report

•  50/50 Blended Benchmark, established by the Fund's advisor, is an equally weighted custom composite of Columbia Thermostat Fund's primary equity and primary debt benchmarks, the S&P 500 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively. The percentage of the Fund's assets allocated to underlying stock and bond portfolio funds will vary, and accordingly the composition of the Fund's portfolio will not always reflect the composition of the 50/50 Blended Benchmark.

•  Barclays Capital U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs and total return performance of fixed-rate, publicly placed, dollar-denominated and non-convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity.

•  Lipper Indexes include the largest funds tracked by Lipper, Inc. in the named category. Lipper Small-Cap Core Funds Index, 30 largest small-cap core funds; Lipper Mid-Cap Growth Funds Index, 30 largest mid-cap growth funds; Lipper International Small/Mid Growth Funds Index, 10 largest non-U.S. small/mid growth funds, including Columbia Acorn International; Lipper Small-Cap Growth Funds Index, 30 largest small-cap growth funds; Lipper International Funds Index, 30 largest non-U.S. funds, excluding non-U.S. small-cap funds; Lipper Flexible Portfolio Funds Index, an equal-weighted index of the 30 largest mutual funds within the Flexible Portfolio fund classification, as defined by Lipper.

•  Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index is a capitalization-weighted index that tracks the total return of common stocks in 21 developed-market countries within Europe, Australasia and the Far East.

•  Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.

•  Russell 2500 Index measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index.

•  Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

•  Standard & Poor's (S&P) MidCap 400 Index is a market value-weighted index that tracks the performance of 400 mid-cap U.S. companies.

•  S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index is a subset of the broad market selected by the index sponsor representing the mid-cap developed market, excluding the United States.

•  S&P Global Ex-U.S. SmallCap Index is an unmanaged index consisting of the bottom 20% of institutionally investable capital of developed and emerging countries, excluding the United States.

•  S&P Global Ex-U.S. Between $500 Million and $5 Billion Index is a subset of the broad market selected by the index sponsor representing the mid- and small-cap developed and emerging markets, excluding the United States.

Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.

The views expressed in the "Squirrel Chatter II" and "In a Nutshell" commentaries reflect the current views of the respective authors. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective authors disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for a Columbia Acorn Fund are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any particular Columbia Acorn Fund. References to specific company securities should not be construed as a recommendation or investment advice and there can be no assurance that as of the date of publication of this report, the securities mentioned in each Fund's portfolio are still held or that the securities sold have not been repurchased.



Letter to Shareholders from the
Columbia Acorn Board of Trustees

Change and Continuity

Fellow Shareholders:

Our Funds enter the New Year facing important governance changes. In the next few months, your Trustees expect that the Fund's investment adviser, Columbia Wanger Asset Management ("CWAM"), will be sold to Ameriprise Financial, Inc. By law, your Trustees must determine whether CWAM should continue to serve as the Funds' investment adviser under its new ownership. Accordingly, the Board has spent significant time and effort considering whether this transaction is in the best interests of shareholders. A specially appointed committee of the Board has reviewed and is negotiating a proposed new investment advisory agreement and contracts with other critical service providers required upon a change of control of the investment adviser. The law also requires that shareholders approve the new investment advisory contract, and proxy materials describing these matters will be sent to shareholders before a change of control takes place.

A second area of change – and continuity – relates to your Funds' Trustees. Sadly, former Chair Bob Nason passed away last June and long-time trustee Jerry Kahn retired at year end. After a transitional period following Bob's death, the Board elected Steve Kaplan as Vice Chair and the undersigned as Chair. I am happy to report that the Board has also elevated Ralph Wanger to "Trustee Emeritus" upon his retirement as a Trustee later this year. This emeritus status allows the Board to continue to benefit from Ralph's experience, insight, and wisdom. Finally, we've rotated the leadership of each of the Board's committees. These changes reflect succession plans put in place by Bob Nason and Allan Muchin (the immediate past Vice Chair) in an effort to preserve the Board's strong independent tradition.

All of your Trustees are, like you, shareholders in the Funds. As such, we were heartened by the recent recovery in the financial markets and the Funds. The domestic Funds did particularly well, exceeding their benchmarks by a significant margin. More importantly, all of the Funds continue to do well when considered over the longer term. Such long-term success remains the constant focus of the Board.

Transitions are rarely easy. That said, your Trustees have worked to identify potential problems and minimize the impact should any arise. In taking these actions, we are following the example of the thoughtful and independent Acorn directors who came before us. They taught your Board to understand and appreciate its role as an unwavering advocate for shareholders and the ultimate protector of the Funds.

Thank you for your trust in the Acorn Funds.

James A. Star
Independent Chairman of the Board of Trustees
Columbia Acorn Trust


Columbia Acorn Family of Funds

Table of Contents

Performance At A Glance     1    
Squirrel Chatter II: Skill and Luck     2    
Understanding Your Expenses     4    
Columbia Acorn Fund  
In a Nutshell     6    
At a Glance     7    
Major Portfolio Changes     18    
Statement of Investments     20    
Columbia Acorn International  
In a Nutshell     8    
At a Glance     9    
Major Portfolio Changes     32    
Statement of Investments     34    
Portfolio Diversification     42    
Columbia Acorn USA  
In a Nutshell     10    
At a Glance     11    
Major Portfolio Changes     43    
Statement of Investments     44    
Columbia Acorn International Select  
In a Nutshell     12    
At a Glance     13    
Major Portfolio Changes     52    
Statement of Investments     53    
Portfolio Diversification     56    

 

Columbia Acorn Select  
In a Nutshell     14    
At a Glance     15    
Major Portfolio Changes     57    
Statement of Investments     58    
Columbia Thermostat Fund  
In a Nutshell     16    
At a Glance     17    
Statement of Investments     63    
Columbia Acorn Family of Funds  
Statements of Assets and Liabilities     66    
Statements of Operations     67    
Statements of Changes in Net Assets     68    
Financial Highlights     72    
Notes to Financial Statements     75    
Report of Independent Registered
Public Accounting Firm		     84    
Federal Income Tax Information     85    
Board of Trustees and Management
of Columbia Acorn Funds		     86    
Columbia Acorn Family of Funds Information     89    

 

No 2009 Year-end Capital Gain Distributions for the Columbia Acorn Funds

None of the Columbia Acorn Funds paid short-term or long-term capital gain distributions at year-end. As noted below, Columbia Acorn Fund did distribute ordinary income. The record date was December 8, 2009. The ex-dividend date was December 9, 2009, and the payable date was December 10, 2009.

    Ordinary
Income		   Reinvestment
Price		  
Columbia Acorn Fund   $ 0.0493     $ 23.58    

 

    

Bank of America To Sell Columbia Management Group, LLC

On September 29, 2009, Bank of America Corporation entered into an agreement with Ameriprise Financial, Inc. ("Ameriprise") to sell a portion of the long-term asset management business of Columbia Management Group, LLC, including 100% of Columbia Wanger Asset Management, L.P.

The planned acquisition of Columbia Management's long-term asset management business by Ameriprise is subject to federal, state and international regulatory approvals.


Columbia Acorn Family of Funds

Performance At A Glance Class Z Average Annual Total Returns through 12/31/09

    NAV on
12/31/09		   4th
quarter*		   1 year   3 years   5 years   10 years   Life
of Fund		  
Columbia Acorn Fund
(ACRNX) (6/10/70)		     $24.68       5.74%       39.65%       -2.59%       3.65%       7.93%       14.75%    
Russell 2500 Index             5.08 %     34.39 %     -4.86 %     1.58 %     4.91 %     NA    
S&P 500 Index**             6.04 %     26.46 %     -5.63 %     0.42 %     -0.95 %     10.54 %  
Lipper Small-Cap Core Funds Index             4.49 %     34.50 %     -4.06 %     1.55 %     5.24 %     NA    
Lipper Mid-Cap Growth Funds Index             5.65 %     42.65 %     -1.04 %     3.35 %     -1.47 %     NA    
Columbia Acorn International
(ACINX) (9/23/92)		     $34.26       4.32%       50.97%       -1.42%       9.44%       4.75%       11.58%    
S&P Global Ex-U.S. Between
$500 Million and $5 Billion Index		             3.46 %     55.49 %     -2.02 %     8.16 %     7.81 %     8.65 %  
S&P Global Ex-U.S. SmallCap Index             3.07 %     56.84 %     -4.03 %     7.12 %     6.98 %     7.86 %  
MSCI EAFE Index             2.18 %     31.78 %     -6.04 %     3.54 %     1.17 %     6.16 %  
Lipper International Small/
Mid Growth Funds Index		             3.73 %     54.44 %     -4.79 %     7.01 %     3.54 %     NA    
Columbia Acorn USA
(AUSAX) (9/4/96)		     $23.19       5.99%       41.49%       -3.82%       1.71%       5.50%       9.68%    
Russell 2000 Index             3.87 %     27.17 %     -6.07 %     0.51 %     3.51 %     6.23 %  
Russell 2500 Index             5.08 %     34.39 %     -4.86 %     1.58 %     4.91 %     7.93 %  
S&P 500 Index**             6.04 %     26.46 %     -5.63 %     0.42 %     -0.95 %     5.90 %  
Lipper Small-Cap Growth Funds Index             5.29 %     38.04 %     -4.58 %     0.25 %     -0.63 %     4.46 %  
Columbia Acorn Int'l Select
(ACFFX) (11/23/98)		     $23.64       4.65%       31.52%       -2.46%       7.96%       3.05%       9.35%    
S&P Developed Ex-U.S. Between
$2 Billion and $10 Billion Index		             1.14 %     38.60 %     -6.07 %     4.99 %     5.59 %     7.36 %  
MSCI EAFE Index             2.18 %     31.78 %     -6.04 %     3.54 %     1.17 %     3.63 %  
Lipper International Funds Index             2.57 %     35.30 %     -4.49 %     4.88 %     1.95 %     4.94 %  
Columbia Acorn Select
(ACTWX) (11/23/98)		     $23.38       7.79%       66.17%       -2.66%       4.16%       7.76%       10.14%    
S&P MidCap 400 Index             5.56 %     37.38 %     -1.83 %     3.27 %     6.36 %     8.04 %  
S&P 500 Index**             6.04 %     26.46 %     -5.63 %     0.42 %     -0.95 %     1.38 %  
Lipper Mid-Cap Growth Funds Index             5.65 %     42.65 %     -1.04 %     3.35 %     -1.47 %     4.93 %  
Columbia Thermostat Fund
(COTZX) (9/25/02)†		     $10.80       5.57%       32.29%       -0.10%       3.12%       —       6.56%    
S&P 500 Index             6.04 %     26.46 %     -5.63 %     0.42 %     —       6.43 %  
Barclays Capital U.S.
Aggregate Bond Index		             0.20 %     5.93 %     6.04 %     4.97 %     —       4.83 %  
Lipper Flexible Portfolio Funds Index             3.97 %     29.17 %     -0.32 %     3.50 %     —       7.51 %  
50/50 Blended Benchmark††             3.13 %     16.34 %     0.52 %     2.99 %     —       5.93 %  

 

* Not annualized.

**The comparison to the S&P 500 Index is presented to show performance against a widely recognized market index over the life of the Fund.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value of an investment in a Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Please visit columbiafunds.com for daily and most recent month-end updates.

Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC). If they were included, returns would have been lower. Class Z shares are sold only at NAV with no Rule 12b-1 fee. Only eligible investors may purchase Class Z shares of the Funds, directly or by exchange. Please see each Fund's prospectus for eligibility and other details. Class Z shares have limited eligibility and the investment minimum requirement may vary.

Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

Annual operating expense ratios are as stated in each Fund's current prospectus and differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. Columbia Acorn Fund Class Z: 0.76%. Columbia Acorn International Class Z: 0.96%. Columbia Acorn USA Class Z: 1.01%. Columbia Acorn International Select Class Z: 1.21%. Columbia Acorn Select Class Z: 0.95%. Columbia Thermostat Fund has a contractual expense waiver or reimbursement that expires April 30, 2010. Expense ratios without and with the contractual waiver, including fees and expenses associated with the Fund's investments in other investment companies, for Class Z shares are 1.05% and 0.97%, respectively. Absent the waiver or reimbursement, performance results would have been lower.

†A "fund of funds" bears its allocable share of the costs and expenses of the underlying funds in which it invests. Such funds are thus subject to two levels of fees and potentially higher expense ratios than would be associated with an investment in a fund that invests and trades directly in financial instruments under the direction of a single manager.

††The 50/50 Blended Benchmark is a custom supplemental benchmark established by the advisor.

All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

Unlike mutual funds, indexes are not actively managed and do not incur fees or expenses. It is not possible to invest directly in an index. For index definitions, see the inside front cover of this report.

The dates in parantheses are the inception dates for each respective Fund.


1


Squirrel Chatter II: Skill and Luck

Research has proven that it is extremely difficult for institutional investors to consistently outperform the stock market. The performance distribution among mutual funds usually looks like a bell shaped curve, with some funds outperforming, many underperforming, and the average fund underperforming its benchmark roughly by its expense ratio. I'm happy to say that the Columbia Acorn Funds have historically outperformed their primary benchmark for most time periods, as you can see on Page 1. But researchers note that there are thousands of mutual funds, and purely random outcomes will lead some funds to outperform. This raises an interesting debate: Do funds that outperform do so due to skill, or due to luck?

We try hard to apply investment skills in managing our Funds. We follow a time-tested approach and have an experienced and highly specialized team of investment professionals picking the stocks in which we invest. However, in order to cover both bases, I decided to also read up on luck. Dr. Richard Wiseman's The Luck Factor1 discusses his research and provides some common sense approaches that may enable people to become luckier.

Wiseman procured hundreds of volunteers, creating one group of people who considered themselves lucky and another who considered themselves unlucky. He tested conventional notions of luck. As one might expect, the lucky group had no apparent psychic ability; their guesses of upcoming lottery numbers were no better than guesses made by the unlucky group. Superstition was not effective either, as the appearance of a black cat vs. a white cat had no impact on results of a coin toss competition.

Instead, Wiseman concluded that people take specific actions that enable them to be lucky and succeed. He provides four principles that induce luck:

1)   Maximize your chance opportunities

2)   Listen to your lucky hunches

3)   Expect good fortune

4)   Turn bad luck into good

Though Wiseman does not explicitly mention investing, each principle can be applied in pursuit of successful money management.

Maximizing chance opportunities entails meeting a large number of people and creating networks to obtain information and investment ideas. Being observant and open to new ideas also helps. Successful investments can be discovered inadvertently: years ago I observed long lines and rising prices at parking garages in downtown Chicago and then profitably invested in a parking lot stock. Rather than pursuing information in hope of confirming existing opinions, pursuing unbiased information could induce the sale of an existing stock and purchase of a superior new one.

Listening to lucky hunches requires the use of intuition. Stocks tend to quickly react to information, and acting early, using imperfect information, is indeed an art form. We once had an analyst who tended to act only after obtaining repeated confirmations that company fundamentals had changed. He performed poorly because stocks often moved before he acted. In contrast, we recently successfully invested in a telecommunications stock that appeared likely to rise as an increasing number of Wall Street analysts began following it. Occasionally, we choose not to pursue possible investment opportunities because they simply don't feel right.

The next luck-inducing principle is to expect good fortune. This is consistent with our investment philosophy. We put money into stocks with the expectation that they will make money over time. We tend to expect continued good fortune from our successful investments and, when it makes sense, let our winners run. This has resulted in lower turnover than the industry average for the Columbia Acorn Funds.

We also attempt to turn bad luck into good and pursue an occasional positive side of bad luck. In the 1980s, several of our analysts complained about aggressive foreign competitors hurting companies we held in Columbia Acorn Fund. The portfolio manager at that time, Ralph Wanger, coined the phrase, "Don't bitch, switch!" and we've owned some foreign stocks in Acorn Fund ever since. We've learned that one company's problem may be


2


another company's opportunity, and that the best choice may be to invest in the latter company.

Ben Sherwood's The Survivors Club2 also mentions a few attributes applicable to investing. Situational awareness is a key part of military survival training and is important in investing too. Although many homebuilding stocks looked cheap during the housing bubble, generally avoiding them benefited our shareholders. Likewise, a well-run company may perform well within a highly competitive industry, but its stock could have substantial downside if its management changes or it grows beyond its niche.

As defined by Sherwood, the "incredulity response" occurs when very unusual events occur, such as catastrophes. Market meltdowns also appear to qualify. People tend to not believe such an event is happening and become paralyzed. Instead, survivors need to act positively. During a market meltdown, the market becomes extremely risk averse, and pays investors handsomely to take risk. That was true a year ago and we invested in several companies with substantial debt that our analysis indicated would likely survive and flourish. On average, those stocks performed very well for shareholders.

Both authors believe that people can create their own luck. After reading their perspectives, I have to agree. We at Columbia Wanger Asset Management think that creating luck is a skill and that providing above average returns is no random act.

Charles P. McQuaid

President and Chief Investment Officer
Columbia Wanger Asset Management, L.P.

The information and data provided in this analysis are derived from sources that we deem to be reliable and accurate. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. The views/opinions expressed in "Squirrel Chatter II" are those of the author and not of the Columbia Acorn Trust Board, are subject to change at any time based upon economic, market or other conditions, may differ from views expressed by other Columbia Management associates or other divisions of Bank of America and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Acorn Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Acorn Fund.

Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. A fund that maintains a relatively concentrated portfolio may be subject to greater risk than a fund that is more fully diversified.

1  Wiseman, Richard, The Luck Factor, (New York, New York, Miramax Books/Hyperion 2003).

2  Sherwood, Ben, The Survivors Club, (New York, New York, Grand Central Publishing, 2009).

Also referenced in the writing of this essay was a research paper written by Eugene F. Fama and Kenneth R. French titled, "Luck versus Skill in the Cross Section of Mutual Fund Returns." The paper was originally dated October 2007 and updated in November 2009. It can be found on the Social Science Research Network's website at www.ssrn.com.


3


Understanding Your Expenses

As a Fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees and other Fund expenses. The following information is intended to help you understand your ongoing costs of investing in the Columbia Acorn Funds and to 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 the Class Z shares of the Columbia Acorn Funds for the last six months. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different results. The amount listed in the "Actual" column is calculated using each Fund's actual operating expenses and total return for the period. The amount listed in the "Hypothetical" column assumes that the return each year is 5% before expenses and then applies each 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 reporting period. See "Compare With Other Funds" for details on using the hypothetical data.

July 1, 2009 - December 31, 2009

    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 (%)*		  
Class Z Shares   Actual   Hypothetical   Actual   Hypothetical   Actual   Hypothetical   Actual  
Columbia Acorn Fund     1,000.00       1,000.00       1,272.20       1,021.42       4.30       3.82       0.75    
Columbia Acorn International     1,000.00       1,000.00       1,244.50       1,020.37       5.43       4.89       0.96    
Columbia Acorn USA     1,000.00       1,000.00       1,309.40       1,020.11       5.88       5.14       1.01    
Columbia Acorn International Select     1,000.00       1,000.00       1,200.00       1,019.21       6.60       6.06       1.19    
Columbia Acorn Select     1,000.00       1,000.00       1,336.00       1,020.37       5.65       4.89       0.96    
Columbia Thermostat Fund**     1,000.00       1,000.00       1,228.70       1,023.95       1.40       1.28       0.25    

 

Expenses paid during the period are equal to each Fund's annualized expense ratio, 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.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the Funds and do not reflect any transaction costs, such as sales charges or redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transaction costs were included, your costs would have been higher.

Columbia Thermostat Fund's expenses do not include fees and expenses incurred by the Fund from the underlying portfolio funds in which it invests.

*For the six months ended December 31, 2009.

**Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

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 Funds with other funds. To do so, compare the 5% 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 continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.


4


Estimating Your Actual Expenses

To estimate the expenses that you actually paid over the period, first you will need your account balance at the end of the period:

•  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at columbiafunds.com or by calling Shareholder Services at (800) 922-6769.

•  For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table titled "Expenses paid during the period," locate the amount for your Fund. You will find this number is in the column labeled "Actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.


5



Columbia Acorn Fund

In a Nutshell

   
Charles P. McQuaid   Robert A. Mohn  
Lead Portfolio Manager   Co-Portfolio Manager  

 

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Crown Castle International     1.7 %  
Coach     1.5 %  
FMC Technologies     1.2 %  
tw telecom     1.1 %  
Fugro     1.1 %  
Southwestern Energy     1.0 %  
Urban Outfitters     1.0 %  
Chico's FAS     0.8 %  
Atwood Oceanics     0.8 %  
J Crew Group     0.8 %  
Valley National Bancorp     0.5 %  
Pacific Rubiales Energy     0.5 %  
Illumina     0.4 %  
MB Financial     0.3 %  
Associated Banc-Corp     0.3 %  

 

Columbia Acorn Fund jumped 39.65% in 2009, some 5.26% above its primary benchmark, the Russell 2500 Index. During the fourth quarter, the Fund appreciated 5.74%, modestly more than the Russell 2500's 5.08% gain. Additional performance comparisons can be found on Page 1 of this report.

Energy stocks were important contributors to the Fund's performance for the year and the quarter. Offshore oil service providers FMC Technologies, Fugro and Atwood Oceanics all more than doubled during the year on strong revenues and volumes. Oil and gas producers Southwestern Energy and Pacific Rubiales Energy provided 13% and 19% returns in the fourth quarter due to increased production, while XTO Energy rose 16% as its acquisition by Exxon Mobil was announced in December. We sold the Fund's XTO shares on the news.

Telecom stocks were also strong performers. Communications tower company Crown Castle International provided the Fund's largest dollar gains during both periods on a 122% surge for the year, including a 24% gain in the fourth quarter. We had added to holdings in Crown Castle during the credit crunch in late 2008, correctly believing in the company's business model and its ability to service a fairly large debt load. Provider of fiber optic telephone and data services tw telecom doubled during the year and gained 27% in the quarter as its business model proved to be fairly resistant to the recession.

After a tough 2008, retailers cashed in big gains in 2009. J Crew Group more than tripled and Urban Outfitters more than doubled on fine earnings due to strong product lines, market share gains and expense controls. Chico's FAS stock jumped 268% as new management executed a turnaround plan. Handbag designer and marketer Coach bagged a 77% gain for the year as management continued to execute well. All were up between 8% and 25% during the fourth quarter.

As might be expected given its overall results, Columbia Acorn Fund had few large losers in 2009. In the financials sector, Associated Banc-Corp was the largest dollar loser, falling 46% on large credit losses, while MB Financial and Valley National Bancorp fell about half that percentage for much the same reason. While we hate any losses, the Fund's aggregate bank holdings fell 5% in the year, much less than the loss of 22% in the benchmark's bank portfolio. During the quarter, Illumina, a maker of medical devices, was the largest dollar loser, off 28% on a revenue shortfall.

Columbia Acorn Fund's foreign stocks were up 76.73% for the year and 6.84% for the fourth quarter. The foreign portfolio has relatively large weights in energy and materials companies, which have done well. Fugro and Pacific Rubiales Energy, mentioned above, were the top international contributors. At year-end, international stocks made up 11.1% of the Fund.

We spent much of the last 15 months dealing with a volatile stock market and a weak economy. Understanding that smaller caps and more risky stocks have historically tended to recover the most off a deep market bottom, we prudently pursued them. Many of those investments were successful, and now we are pursuing companies that we expect to have good earnings growth. While we are happy with 2009 and fourth quarter performance, we realize that we have still not returned to the Fund's 2008 highs.

Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


6


Columbia Acorn Fund (ACRNX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Class Z)

through December 31, 2009

Inception 6/10/70   1 year   5 years   10 years  
Returns before taxes     39.65 %     3.65 %     7.93 %  
Returns after taxes on distributions     39.55       2.89       7.04    
Returns after taxes on distributions
and sale of fund shares		     25.77       3.17       6.76    
Russell 2500 Index (pretax)*     34.39       1.58       4.91    

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class Z shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes.

The Fund's Class Z shares annual operating expense ratio, as stated in the current prospectus, is 0.76%.

Columbia Acorn Fund Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn Fund Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Crown Castle International
Communications Towers		   1.7%
 		 
  2.     Coach
Designer & Retailer of Branded Leather Accessories		   1.5%
 		 
  3.     Informatica
Enterprise Data Integration Software		   1.2%
 		 
  4.     FMC Technologies
Oil & Gas Wellhead Manufacturer		   1.2%
 		 
  5.     Donaldson
Industrial Air Filtration		   1.2%
 		 
  6.     Amphenol
Electronic Connectors		   1.2%
 		 
  7.     Ametek
Aerospace/Industrial Instruments		   1.2%
 		 
  8.     Bally Technologies
Slot Machines & Software		   1.1%
 		 
  9.     tw telecom
Fiber Optic Telephone/Data Services		   1.1%
 		 
  10.     Fugro (Netherlands)
Sub-sea Oilfield Services		   1.1%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn Fund (Class Z)

June 10, 1970 through December 31, 2009

This graph compares the results of $10,000 invested in Columbia Acorn Fund at inception on June 10, 1970 to the S&P 500 Index and to an initial $31,777 investment in the Russell 2500 Index on the index's December 31, 1978 inception date. Although the indexes are provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the indexes. The indexes are unmanaged and returns for both the indexes and the Fund include reinvested dividends and capital gains. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $14.7 billion

*  A $10,000 investment in Columbia Acorn Fund at inception appreciated to $31,777 on December 31, 1978, the inception date of the Russell 2500 Index. For comparison with the Russell 2500 Index, we assigned the index the same value as the Fund at index inception.

**Although the Fund typically invests in small- and mid-sized companies, the comparison to the S&P 500 Index is presented to show performance against a widely recognized market index over the life of the Fund.


7


Columbia Acorn International

In a Nutshell

   
P. Zachary Egan   Louis J. Mendes III  
Co-Portfolio Manager   Co-Portfolio Manager  

 

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund's Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Naspers     1.8 %  
Seven Bank     0.5 %  
Wacom     0.4 %  

 

Columbia Acorn International returned 4.32% in the fourth quarter of 2009, 0.86% ahead of its primary benchmark, the S&P Global Ex-U.S. Between $500 Million and $5 Billion Index. The Fund's annual total return of 50.97% trailed its benchmark by 4.52%. Across most markets, share price performance was negatively correlated with size as smaller-capitalized stocks outperformed their larger brethren. The large-cap MSCI EAFE Index returned a relatively modest 31.78%.

We manage Columbia Acorn International with the intention of holding Fund investments for three- to five-years, which is relatively long among international small-cap managers. We believe Fund performance should be considered in this context. A glance at the performance table on Page 1 shows that the Fund's three- and five-year average annual returns were -1.42% and 9.44%, respectively. Both results remain ahead of Fund benchmarks and peer averages.

Much has been written in the financial press about the equity market's return from the precipice after a difficult January and February in 2009. We will not reproduce that discussion here, other than to note that the market rebound generally played out in a fashion consistent with a sudden subsidence of risk aversion across the board. The riskiest equities, including illiquid micro-caps, highly indebted companies and emerging market stocks, led the charge upward. In contrast, lower-risk markets such as Japan, where stocks are cheap, balance sheets overcapitalized and growth expectations generally too anemic to provide cause for disappointment, barely moved. Japanese small- to mid-cap stocks rose a mere 5.6% in U.S. dollar terms in 2009. In this context, it is interesting to look at the winning and losing stocks in the Fund whose performance cannot be explained by changes in how risk is priced alone. This highlights where stock picking matters.

Fund standouts on the upside included Naspers and Wacom. Naspers is a misunderstood South African-listed media company. With a dominant pay TV franchise in sub-Saharan Africa and a large stake in Tencent, a Hong Kong-listed Internet service provider and gaming company targeting the Chinese market, many investors have been unsure how to analyze the company. Our colleague Fritz Kaegi ferreted out this South African company, which more than doubled in the year and is now the Fund's largest position. Wacom is a Japanese technology company that jumped 155% in 2009 when demand for its pen tablet for professional and consumer applications proved resilient in a weak IT market. The company's new multi-finger touch screen for PCs also has a chance of playing an important role in the next generation of PC user interfaces.

On the downside, the Fund sold its investment in ING Bank Slaski at a 52% annual loss after wrongly judging that the Polish government would intervene in the currency market. This intervention would have let corporations off the hook on costly forward contracts they held with Polish banks. Japanese cash machine network operator Seven Bank, which operates ATMs at convenience stores, ended the year down 47% as investors worried that deflation expectations and weak consumer spending would reduce cash withdrawals and new consumer finance regulations would constrain high margin lending on ATM cards.

International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments. Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


8


Columbia Acorn International (ACINX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Class Z)

through December 31, 2009

Inception 9/23/92   1 year   5 years   10 years  
Returns before taxes     50.97 %     9.44 %     4.75 %  
Returns after taxes on distributions     49.97       8.52       3.86    
Returns after taxes on distributions
and sale of fund shares		     33.00       8.20       3.88    
S&P Global Ex-U.S. Between
$500 Million and $5 Billion Index (pretax)*		     55.49       8.16       7.81    

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class Z shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes.

The Fund's Class Z annual operating expense ratio, as stated in the current prospectus, is 0.96%.

Columbia Acorn International Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn International Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Naspers (South Africa)
Media in Africa & Other Emerging Markets		   1.8%
 		 
  2.     Olam International (Singapore)
Agriculture Supply Chain Manager		   1.5%
 		 
  3.     Eldorado Gold (Canada)
Gold Miner in Turkey, Greece, China & Brazil		   1.3%
 		 
  4.     Serco (United Kingdom)
Facilities Management		   1.2%
 		 
  5.     Localiza Rent A Car (Brazil)
Car Rental		   1.2%
 		 
  6.     Hexagon (Sweden)
Measurement Equipment		   1.2%
 		 
  7.     Kansai Paint (Japan)
Paint Producer in Japan, India, China & Southeast Asia		   1.2%
 		 
  8.     Imtech (Netherlands)
Electromechanical & ICT Installation & Maintenance		   1.1%
 		 
  9.     Suzano (Brazil)
Brazilian Pulp & Paper Producer		   1.1%
 		 
  10.     Atwood Oceanics (United States)
Offshore Drilling Contractor		   1.1%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn International (Class Z)

September 23, 1992 through December 31, 2009

This graph compares the results of $10,000 invested in Columbia Acorn International at inception on September 23, 1992 to the S&P Global Ex-U.S. Between $500 Million and $5 Billion Index. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. The index is unmanaged and returns for both the index and Fund include reinvested dividends and capital gains. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $4.4 billion


9


Columbia Acorn USA

In a Nutshell

Robert A. Mohn

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Crown Castle International     3.5 %  
tw telecom     2.5 %  
FMC Technologies     2.1 %  
Atwood Oceanics     1.9 %  
AmeriCredit     1.6 %  
Donaldson     1.4 %  
ITT Educational Services     1.3 %  
World Acceptance     1.1 %  
Valley National Bancorp     1.0 %  
Switch & Data Facilities     0.7 %  
MB Financial     0.7 %  
Human Genome Sciences     0.7 %  
Lakeland Financial     0.5 %  
Pacific Continental     0.4 %  
True Religion Apparel     0.4 %  
Berkshire Hills Bancorp     0.4 %  
Illumina     0.3 %  
Psychiatric Solutions     0.3 %  
Cephalon     0.3 %  
Associated Banc-Corp     0.2 %  

 

Columbia Acorn USA ended the fourth quarter of 2009 up 5.99%, outperforming the 3.87% gain of its primary benchmark, the Russell 2000 Index. For the year, the Fund strongly outperformed the Russell 2000 with a 41.49% return vs. a 27.17% annual gain for the index. While we are happy with 2009 performance, we realize that we have still not returned to the Fund's 2008 highs.

Fund telecommunication stocks continued to perform well in the fourth quarter. Both Crown Castle International, an owner of communications towers, and tw telecom, a provider of fiber optic telephone and data services, had solid revenue growth despite the Great Recession. These stocks both were up roughly 25% for the quarter and ended the year up over 100%.

Our holdings of companies in the consumer finance sector were also strong in the quarter as these stocks benefited from the disappearance of many of their competitors. World Acceptance, a provider of smaller personal loans, saw its earnings grow 48% year-over-year through September and announced a decrease in credit losses. Its stock gained 42% in the fourth quarter. Several large banks have completely withdrawn from the business of making used auto loans, and this reduction in supply has contributed to boosted lending spreads for surviving lenders such as AmeriCredit. AmeriCredit enjoyed a 21% gain in the fourth quarter and ended the year up 149%.

Biotech company Human Genome Sciences continued its strong run in the fourth quarter, posting a 62% gain after announcing additional positive results from its lupus drug trials. Its annual gain was a whopping 840%. Switch & Data Facilities, a provider of data center and Internet exchange services, gained 49% in the quarter and 179% for the year on news that it would be acquired by Equinix, a provider of data center operations and infrastructure services. Donaldson, a maker of industrial air filters, gained 23% in the quarter as the company controlled costs and increased its market share.

Top contributors to the Fund's annual performance were energy stocks FMC Technologies, an oil and gas wellhead manufacturer, and Atwood Oceanics, an offshore drilling contractor. Both had annual gains of over 140% as the industry's focus on deep sea drilling fueled growth in their businesses.

On the downside for the quarter, ITT Educational Services, a provider of post-secondary degree programs, fell 13% as student debt defaults showed signs of increasing. Premium denim retailer True Religion Apparel and Illumina, a maker of medical devices, reported disappointing third quarter sales, sending both companies' stocks down roughly 28%. Psychiatric Solutions, a provider of behavioral health services, fell 23% in the quarter and 26% for the year. Its business was hurt by an increase in the percentage of its patients who were uninsured.

Six of the 15 biggest detractors to performance in the Fund for the year were regional banks. MB Financial, Valley National Bancorp, Lakeland Financial, Berkshire Hills Bancorp, Associated Banc-Corp and Pacific Continental were all down between 22% and 46%. Losses on commercial loans held by these banks accelerated throughout the year, particularly on loans tied to new residential developments. Another laggard for the year was pharmaceutical company Cephalon, which was off nearly 20% in the Fund. Several of Cephalon's drug patents will expire soon, making way for competition from generics.

This past year started off with tremendous uncertainty but we were able to take advantage of the volatility in the market to make some opportunistic purchases of beaten down stocks. As we move into a new year, we plan to focus on finding stocks in smaller, niche companies, which we believe have good growth prospects and trade at attractive prices.

Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


10


Columbia Acorn USA (AUSAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Class Z)

through December 31, 2009

Inception 9/4/96   1 year   5 years   10 years  
Returns before taxes     41.49 %     1.71 %     5.50 %  
Returns after taxes on distributions     41.49       1.20       5.14    
Returns after taxes on distributions
and sale of fund shares		     26.97       1.50       4.79    
Russell 2000 Index (pretax)*     27.17       0.51       3.51    

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class Z shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes.

The Fund's Class Z annual operating expense ratio, as stated in the current prospectus, is 1.01%.

Columbia Acorn USA Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn USA Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Crown Castle International
Communications Towers		   3.5%
 		 
  2.     tw telecom
Fiber Optic Telephone/Data Services		   2.5%
 		 
  3.     Informatica
Enterprise Data Integration Software		   2.1%
 		 
  4.     FMC Technologies
Oil & Gas Wellhead Manufacturer		   2.1%
 		 
  5.     Atwood Oceanics
Offshore Drilling Contractor		   1.9%
 		 
  6.     Global Payments
Credit Card Processor		   1.8%
 		 
  7.     Ametek
Aerospace/Industrial Instruments		   1.7%
 		 
  8.     Bally Technologies
Slot Machines & Software		   1.7%
 		 
  9.     Nordson
Dispensing Systems for Adhesives & Coatings		   1.6%
 		 
  10.     AmeriCredit
Auto Lending		   1.6%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn USA (Class Z)

September 4, 1996 through December 31, 2009

This graph compares the results of $10,000 invested in Columbia Acorn USA at inception on September 4, 1996 to the Russell 2000 Index. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. The index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $1.4 billion


11


Columbia Acorn International Select

In a Nutshell

Christopher J. Olson

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund's Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Naspers     6.2 %  
Ascendas REIT     2.9 %  
Hexagon     2.4 %  
Pacific Rubiales Energy     2.2 %  
Jupiter Telecommunications     2.2 %  
Potash Corp. of Saskatchewan     2.1 %  
Benesse     1.9 %  
Rohto Pharmaceutical     1.8 %  
Seven Bank     1.7 %  
Ain Pharmaciez     0.9 %  
Kamigumi     0.8 %  

 

Columbia Acorn International Select ended the fourth quarter up 4.65% while its primary benchmark, the S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index, gained 1.14%. For the year ended December 31, 2009, the Fund had a 31.52% return while its benchmark was up 38.60%. Having positioned the Fund well for the previous downturn, the Fund lagged over the past year as the markets were boosted by an unprecedented amount of monetary and fiscal stimulus. Our focus for the Fund has been on companies with competitive market positions and business models, longer-term growth prospects and solid balance sheets, but these companies were not strong performers during 2009 as investor appetite for risk returned and lower quality stocks rallied. We intend to continue to manage the Fund following the approach that has resulted in good outperformance relative to its benchmark and peers over the past three- and five-year periods.

Naspers was the top dollar contributor to Fund performance for the quarter and for the year. Its stock rose 18% in the fourth quarter and ended the year up 121%. Naspers is a media company with assets in South Africa and other emerging markets that has enjoyed strong earnings growth and has benefited from its stake in the rapidly growing Chinese Internet company, Tencent. Hexagon, a Swedish manufacturer of measurement equipment, gained 23% in the fourth quarter and ended the year up 194%. The company's business fundamentals remained robust throughout the recession due to its strong focus on emerging markets where growth has proven to be more stable.

Canadian potash producer Potash Corp. of Saskatchewan had a 21% gain in the quarter and an annual return of 81% as the market's hope of a bottoming, and subsequently rebounding, potash price fed through to the stock. Ascendas REIT, an industrial property landlord in Singapore, gained 16% in the quarter and ended the year up 75% as the demand for property assets increased with the recovery in Singapore's economy. Canada's Pacific Rubiales Energy, an oil production and exploration company with operating assets in Colombia, gained 19% in the quarter and ended the year up an impressive 680%. The stock has benefited from increasing production and new exploration discoveries in Colombia as well as the rebound in oil prices.

Japanese holdings in the Fund were weak in the fourth quarter as investors flocked to riskier investments and markets. Japan's Seven Bank, Rohto Pharmaceutical, Benesse, Ain Pharmaciez and Kamigumi returned losses ranging from 10% to 20%. Japanese companies were also well represented among the Fund's biggest losers for the annual period, with Jupiter Telecommunications, Nintendo and Seven Bank down between 5% and 30% for the year. We sold out of Nintendo early in the third quarter of 2009. The Japanese economy continues to suffer from a deflationary environment and declining population. While stocks in Japan are beginning to look interesting from a valuation perspective, the growth outlook remains uncertain, and investors reduced their Japanese holdings over the course of the year to focus on companies in other regions. Cephalon, a U.S. pharmaceutical company, was the biggest detractor to the Fund's annual performance, falling more than 20% in the Fund. Upcoming patent expirations on several of Cephalon's drugs will make way for competition from generics, and potential health care reform in the United States added to uncertainty about its business. The Fund sold out of its position in Cephalon in the fourth quarter.

International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments. Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Investing in emerging markets may involve greater risks than investing in more developed countries.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


12


Columbia Acorn International Select (ACFFX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Class Z)

through December 31, 2009

Inception 11/23/98   1 year   5 years   10 years  
Returns before taxes     31.52 %     7.96 %     3.05 %  
Returns after taxes on distributions     30.97       7.60       2.86    
Returns after taxes on distributions
and sale of fund shares		     20.43       6.95       2.66    
S&P Developed Ex-U.S. Between
$2 Billion and $10 Billion Index (pretax)*		     38.60       4.99       5.59    

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class Z shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes.

The Fund's Class Z annual operating expense ratio, as stated in the current prospectus, is 1.21%.

Columbia Acorn International Select Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn International Select Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Naspers (South Africa)
Media in Africa & Other Emerging Markets		   6.2%
 		 
  2.     Serco (United Kingdom)
Facilities Management		   4.9%
 		 
  3.     Capita Group (United Kingdom)
White Collar, Back Office Outsourcing		   3.2%
 		 
  4.     NHN (South Korea)
South Korea's Largest Online Search Engine		   2.9%
 		 
  5.     Ascendas REIT (Singapore)
Singapore Industrial Property Landlord		   2.9%
 		 
  6.     Olam International (Singapore)
Agriculture Supply Chain Manager		   2.8%
 		 
  7.     Red Electrica de Espana (Spain)
Spanish Power Transmission		   2.6%
 		 
  8.     Cobham (United Kingdom)
Aerospace Components		   2.6%
 		 
  9.     Kansai Paint (Japan)
Paint Producer in Japan, India, China & Southeast Asia		   2.6%
 		 
  10.     Intertek Group (United Kingdom)
Testing, Inspection & Certification Services		   2.6%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn International Select (Class Z)

November 23, 1998 through December 31, 2009

This graph compares the results of $10,000 invested in Columbia Acorn International Select at inception on November 23, 1998 to the S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. The index and Fund returns include reinvested dividends and capital gains. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $410.7 million


13


Columbia Acorn Select

In a Nutshell

Ben Andrews

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund's Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

ITT Educational Services     4.9 %  
Pacific Rubiales Energy     4.9 %  
Sanmina-SCI     4.7 %  
Safeway     3.9 %  
Expedia     3.4 %  
Canadian Solar     2.8 %  
American Commercial Lines     1.1 %  
Houston American Energy     0.3 %  
GLG Life Tech     0.0 %*  
Fu Ji Food & Catering Services     0.0 %*  
ChemSpec International     0.0 %*  

 

*Rounds to less than 0.1%.

Columbia Acorn Select gained 7.79% in the fourth quarter of 2009. This exceeded the 5.56% rise in the Fund's primary benchmark, the S&P MidCap 400 Index. For the year, the Fund outperformed its benchmark by almost 29 percentage points with a 66.17% gain vs. a 37.38% return for the S&P MidCap 400 Index. We are pleased that we could offer our shareholders such strong performance. The S&P 500 Index, which is a large-cap index, trailed mid-caps with a 26.46% annual return.

The Fund's top two dollar winners for the fourth quarter were Canadian Solar, a solar-power equipment manufacturer, and Sanmina-SCI, a provider of electronic manufacturing services, which together added almost 2.6% to the Fund's performance. The two top dollar losers for the quarter were American Commercial Lines, a barge operator and builder, and ITT Educational Services, a provider of post-secondary degree programs, which together cost the Fund 1.6% of performance. For the year, Pacific Rubiales Energy, an oil production and exploration company, Sanmina-SCI and Expedia, a provider of online travel services, contributed about 20% of the Fund's 66% return. On the downside, pharmaceutical company Cephalon, supermarket chain Safeway and Chinese caterer Fu Ji Food & Catering Services together cost the Fund about 3% of its yearly portfolio return. We sold the Fund's position in Cephalon in the first half of the year.

During the fourth quarter, we added three new companies to the Fund's portfolio. The new investments were GLG Life Tech, ChemSpec International and Houston American Energy. GLG Life Tech produces an all natural, zero calorie sweetener made from the stevia plant. ChemSpec is a fluorinated specialty chemicals manufacturer, and Houston American Energy is an oil and gas exploration and production company with its primary operations in Colombia.

During the quarter we sold the Fund's position in Donaldson, a maker of industrial air filters, FMC Technologies, an oil and gas wellhead manufacturer, and retailer The Gap Stores. We sold down or out of the Fund's larger oil service/production companies while investing the dollars back into smaller oil companies, primarily those located in Colombia.

The U.S. economy is continuing to recover as we enter 2010, but unemployment remains high. However, I believe failure to pass a carbon tax and/or health care legislation could benefit both the economy and the market as it would clear away uncertainty, which is restraining job growth within two of this country's largest employing industries: industrials/oil/utilities and health care. I believe employment could also get a boost if the government chooses not to let the sun setting tax cuts, which are estimated to account for approximately 2% of GDP—a significant figure in an economy with over 10% unemployment—expire at the end of 2010. If these scenarios evolve, employment could rebound. Until then, our focus will be to find stocks that we believe can perform well in a slower growth environment.

Risks include stock market fluctuations due to economic and business developments. The Fund also has potentially greater price volatility due to the Fund's concentration in a limited number of stocks of mid-size companies. The Fund is a non-diversified fund and may, therefore, have a greater risk of loss from a few issuers than a similar fund that invests more broadly. The Fund may not operate as a non-diversified fund at all times. International investments involve greater potential risks, including less regulation, currency fluctuations, economic instability and political developments.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


14


Columbia Acorn Select (ACTWX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Class Z)

through December 31, 2009

Inception 11/23/98   1 year   5 years   10 years  
Returns before taxes     66.17 %     4.16 %     7.76 %  
Returns after taxes on distributions     66.17       3.84       7.33    
Returns after taxes on distributions
and sale of fund shares		     43.01       3.59       6.73    
S&P MidCap 400 Index (pretax)*     37.38       3.27       6.36    

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class Z shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes.

The Fund's Class Z annual operating expense ratio, as stated in the current prospectus, is 0.95%.

Columbia Acorn Select Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn Select Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     ITT Educational Services
Post-secondary Degree Services		   4.9%
 		 
  2.     Pacific Rubiales Energy (Canada)
Oil Production & Exploration in Colombia		   4.9%
 		 
  3.     SkillSoft
Web-based Learning Solutions (E-Learning)		   4.8%
 		 
  4.     Sanmina-SCI
Electronic Manufacturing Services		   4.7%
 		 
  5.     Hertz
Largest U.S. Rental Car Operator		   4.6%
 		 
  6.     Safeway
Supermarkets		   3.9%
 		 
  7.     Conseco
Life, Long-term Care & Medical Supplement Insurance		   3.5%
 		 
  8.     Expedia
Online Travel Services Company		   3.4%
 		 
  9.     Crown Castle International
Communications Towers		   3.1%
 		 
  10.     WNS (India)
Offshore BPO (Business Process Outsourcing) Services		   3.0%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn Select (Class Z)

November 23, 1998 through December 31, 2009

This graph compares the results of $10,000 invested in Columbia Acorn Select at inception on November 23, 1998 to the S&P MidCap 400 Index. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings differ significantly from those in the index. The index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $1.9 billion


15


Columbia Thermostat Fund

In a Nutshell

Charles P. McQuaid

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

A "fund of funds" bears its allocable share of the costs and expenses of the underlying funds in which it invests. Such funds are thus subject to two levels of fees and potentially higher expense ratios than would be associated with a fund that invests and trades directly in financial instruments under the direction of a single manager.

Columbia Thermostat Fund ended the fourth quarter up 5.57%, outperforming the 0.20% gain of the Barclays Capital U.S. Aggregate Bond Index, the Fund's primary bond benchmark, and underperforming the 6.04% return of the S&P 500 Index, the Fund's primary stock benchmark. For the year, the Fund's 32.29% return topped both indexes. The S&P 500 Index had an annual return of 26.46% and the Barclays Capital U.S. Aggregate Bond Index was up 5.93%.

We recently conducted a review of the structure, allocation percentages and underlying funds that comprise Columbia Thermostat Fund and, as a result of this review, we have made some changes to the Fund's structure. These changes went into effect on January 13, 2010, just after the period covered by this report. The specifics of these investment strategy changes are summarized below:

• We implemented a 90% maximum and a 10% minimum for both stock and bond allocations.

• The allocation of the Fund's assets among underlying stock and bond funds set forth in the Stock/Bond Allocation table in the Fund's prospectus has been modified in two additional ways. First, the increment in the S&P 500 Index that triggers a change in allocation has decreased from 60 to 50 points. Second, the range of the S&P 500 Index has been reduced so that allocations become static when the S&P 500 Index is at 1,000 and under (rather than 960 and under) or over 1,750 (rather than over 2,100).

• Consequently, the Fund now has a smaller percentage of assets in stock funds at the current level of the S&P 500 Index.

• The tighter range and smaller percentage in stock funds reflects our opinion that S&P 500 Index earnings and valuations will be lower than we previously expected.

• Believing that many foreign economies are likely to grow faster than the U.S. economy, we increased the stock fund allocation to Columbia Acorn International from 15% to 20%.

• To make room for additional international holdings, we reduced the stock fund allocation to the large-cap blend asset class from 25% to 20%.

• Within the large-cap blend asset class, we added Columbia Contrarian Core Fund as an underlying investment option and will split this allocation with Columbia Large Cap Enhanced Core Fund. Columbia Contrarian Core Fund has a fine track record and currently a greater bias towards growth stocks than Columbia Large Cap Enhanced Core Fund.

Results of the Funds Owned in Columbia Thermostat Fund as of December 31, 2009

Stock Funds
Fund		   Weightings
in category		   4th
quarter		   1 year  
Columbia Acorn Fund     15 %     5.74 %     39.65 %  
Columbia Acorn Select     10 %     7.79 %     66.17 %  
Columbia Marsico
Growth Fund		     15 %     6.56 %     29.37 %  
Columbia Acorn
International		     15 %     4.32 %     50.97 %  
Columbia Dividend
Income Fund		     20 %     6.82 %     18.59 %  
Columbia Large Cap
Enhanced Core Fund		     25 %     6.11 %     23.99 %  
Weighted Average
Equity Return/Loss		     100 %     6.20 %     33.80 %  
Bond Funds
Fund		   Weightings
in category		   4th
quarter		   1 year  
Columbia Intermediate
Bond Fund		     50 %     2.08 %     19.11 %  
Columbia U.S. Treasury
Index Fund		     30 %     -1.30 %     -3.77 %  
Columbia Conservative
High Yield Fund		     20 %     4.21 %     34.96 %  
Weighted Average
Income Return		     100 %     1.49 %     14.74 %  

 

Columbia Thermostat Fund
Rebalancing in the Fourth Quarter

October 15, 2009   85% stocks, 15% bonds  

 

The combination of our change in the allocation table and market movement resulted in Columbia Thermostat Fund having 70% in stock funds and 30% in bond funds as of press time on February 19, 2010.

The value of an investment in the Fund is based primarily on the performance of the underlying portfolio funds and the allocation of the Fund's assets among them. An investment in the underlying portfolio funds may present certain risks, including stock market fluctuations that occur in response to economic and business developments; and a greater degree of social, political and economic volatility associated with international investing. Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Value stocks may also be subject to specific business risks that have caused the stocks to be out of favor. Lower-rated and medium quality debt securities are more speculative and incur more risk. International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments. Changes in interest rates and changes in the financial strength of issuers of lower-rated bonds may also affect underlying fund performance. The Fund is also subject to the risk that the investment advisor's decisions regarding asset classes and underlying portfolio funds will not anticipate market trends successfully, resulting in a failure to preserve capital or lower total return. In addition, the Fund may buy and sell shares of the portfolio funds frequently. This may result in higher transaction costs and additional tax liability. This is not an offer of the shares of any other mutual fund mentioned herein.


16


Columbia Thermostat Fund (COTZX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Class Z)

through December 31, 2009

Inception 9/25/02   1 year   5 year   Life of fund  
Returns before taxes     32.29 %     3.12 %     6.56 %  
Returns after taxes on distributions     32.14       1.40       5.17    
Returns after taxes on distributions
and sale of fund shares		     20.97       1.97       5.11    
S&P 500 Index (pretax)*     26.46       0.42       6.43    
Barclays Capital U.S. Aggregate Bond Index (pretax)*     5.93       4.97       4.83    
Lipper Flexible Portfolio Funds Index (pretax)     29.17       3.50       7.51    

 

All results shown assume reinvestment of distributions.

*The Fund's primary stock and bond benchmarks, respectively.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class Z shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes.

The Fund's Class Z annual operating expense ratio, as stated in the current prospectus, reflects a contractual expense waiver or reimbursement that expires April 30, 2010. Expense ratios without and with the contractual waiver, including fees and expenses associated with the Fund's investment in other investment companies, are 1.05% and 0.97%, respectively. Absent the waiver or reimbursement, performance results would have been lower.

Columbia Thermostat Fund Asset Allocation

as a percentage of net assets, as of 12/31/09

Columbia Thermostat Fund Portfolio Weightings

as a percentage of assets in each investment category, as of 12/31/09

Stock Mutual Funds

Columbia Large Cap Enhanced Core Fund, Class Z     25 %  
Columbia Dividend Income Fund, Class Z     20 %  
Columbia Acorn Fund, Class Z     15 %  
Columbia Acorn International, Class Z     15 %  
Columbia Marsico Growth Fund, Class Z     15 %  
Columbia Acorn Select, Class Z     10 %  

 

Bond Mutual Funds

Columbia Intermediate Bond Fund, Class Z     50 %  
Columbia U.S. Treasury Index Fund, Class Z     30 %  
Columbia Conservative High Yield Fund, Class Z     20 %  

 

The Growth of a $10,000 Investment in Columbia Thermostat Fund (Class Z)

September 25, 2002 through December 31, 2009

This graph compares the results of $10,000 invested in Columbia Thermostat Fund at inception on September 25, 2002 to the S&P 500 Index, the Barclays Capital U.S. Aggregate Bond Index and the Lipper Flexible Portfolio Funds Index ("Lipper Index"). Although the indexes are provided for use in assessing the Fund's performance, the Fund's holdings differ significantly from those in the indexes. The Indexes are unmanaged (although the funds that comprise the Lipper Index are managed) and returns for the indexes and the Fund include reinvested dividends and capital gains. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $138.6 million


17



Columbia Acorn Fund

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Information  
AboveNet     500,000       600,000    
ANSYS     1,795,000       2,083,291    
Art Technology Group     885,000       2,594,654    
Blackboard     0       109,007    
Blue Coat Systems     786,000       1,534,000    
Discovery Communications,
Series C		     2,636,500       4,070,000    
Eutelsat (France)     250,000       400,000    
ExlService Holdings     0       747,658    
F5 Networks     920,000       1,045,000    
Mettler Toledo     1,385,000       1,450,000    
Monolithic Power Systems     745,000       870,000    
PAETEC Holding     8,500,000       9,600,000    
Plexus     1,275,000       1,395,000    
Tyler Technologies     632,890       1,134,260    
Consumer Goods & Services  
Abercrombie & Fitch     2,715,000       4,500,000    
Charming Shoppes     5,857,967       7,500,000    
Chico's FAS     7,767,000       8,514,272    
Diamond Foods     0       550,475    
Flowers Foods     497,511       819,000    
GLG Life Tech (Canada)     0       1,153,700    
Hansen Natural     1,600,000       1,802,600    
Hyatt Hotels     0       141,800    
Rue21     0       146,390    
Smart Balance     2,500,000       3,000,000    
Steelcase     2,612,606       3,000,000    
Industrial Goods & Services  
Airgas     2,275,000       2,555,200    
GrafTech International     1,050,000       1,680,000    
Jain Irrigation Systems (India)     440,416       1,000,000    
Pall     2,000,000       2,150,000    
Silgan Holdings     0       200,000    
TrueBlue     800,000       924,900    
Finance  
City National     170,000       295,000    
CVB Financial     0       830,700    
Eagle Bancorp     0       251,000    
Hanover Insurance Group     615,000       849,000    
Hudson Valley     0       660,000    
Leucadia National     2,220,000       2,427,400    
Pacific Continental     0       246,505    
SVB Financial Group     960,000       1,172,396    
Health Care  
Acorda Therapeutics     0       1,300,000    
Allos Therapeutics     1,800,000       2,800,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Allscripts-Misys Healthcare     0       700,000    
AthenaHealth     0       250,000    
Auxilium Pharmaceuticals     1,250,000       1,350,000    
BioMarin     3,000,000       3,250,000    
Gen-Probe     0       568,910    
Nanosphere     0       1,232,900    
PSS World Medical     2,300,000       2,750,000    
Seattle Genetics     3,250,000       4,117,700    
Sirona Dental Systems     650,500       850,000    
Energy & Minerals  
Alange Energy (Colombia)     156,500       8,435,000    
Baytex (Canada)     0       347,600    
Cabot Oil & Gas     0       250,000    
Houston American Energy     0       1,200,000    
Orko Silver (Canada)     3,500,000       10,000,000    
Pan Orient (Canada)     418,500       1,198,100    
Cap-Link Ventures     0       24,000,000    
Cap-Link Ventures-Warrants     0       24,000,000    
PolyMet Mining     1,000,000       1,500,000    
Royal Gold     400,000       500,000    
STR Holdings     0       400,000    
Zhaojin Mining Industry (China)     0       6,333,700    
Other Industries  
BioMed Realty Trust     1,360,000       2,260,902    
Macerich     865,037       880,376    
Old Dominion Freight Lines     0       150,000    
Terna (Italy)     0       3,500,000    

 

See accompanying notes to financial statements.


18


    Number of Shares  
    09/30/09   12/31/09  
Sales  
Information  
American Tower     1,500,000       1,200,000    
Cogent Communications     4,300,000       4,200,000    
Concur Technologies     1,400,000       1,200,000    
Dionex     500,000       400,000    
Discovery Communications     1,433,200       0    
Dolby Laboratories     1,340,000       1,140,000    
FARO Technologies     334,074       0    
Intermec     500,000       0    
Micros Systems     2,750,544       2,050,544    
ON Semiconductor     4,059,000       3,584,000    
Quality Systems     902,110       800,000    
Radiant Systems     2,204,336       1,000,000    
Red Hat     2,000,000       1,000,000    
SES (France)     893,000       702,000    
Trimble Navigation     1,770,000       1,545,000    
Varian     200,000       0    
Vasco Data Security International     154,749       0    
Consumer Goods & Services  
American Apparel     342,382       0    
Career Education     1,700,000       1,677,000    
Champion Enterprises     4,500,000       0    
Choice Hotels     1,700,000       1,300,000    
GameStop     1,650,000       0    
Herman Miller     3,500,000       2,800,000    
HNI     870,000       0    
Hot Topic     3,308,890       0    
Jarden     2,500,000       1,700,000    
Winnebago Industries     650,000       0    
Industrial Goods & Services  
Aalberts Industries (Netherlands)     2,825,285       2,200,000    
Administaff     1,935,000       1,428,224    
Clarcor     3,000,000       2,627,500    
FreightCar America     225,000       0    
Greif     600,000       500,000    
Haynes International     390,000       0    
Intertek Group (United Kingdom)     299,004       0    
Intrepid Potash     275,000       0    
Lincoln Electric     350,000       0    
Quanta Services     2,300,000       2,070,000    
Toro     1,075,000       900,000    
Watsco     725,000       625,000    
Finance  
Assurant     1,530,000       1,200,000    
BOK Financial     3,000,000       2,689,000    
Eaton Vance     4,235,000       3,735,000    
Protective Life     995,000       640,716    
West Coast Bancorp     1,000,000       491,788    

 

    Number of Shares  
    09/30/09   12/31/09  
Health Care  
Beckman Coulter     650,000       450,000    
Cephalon     1,250,000       475,000    
Cepheid     3,200,000       2,500,000    
Charles River Laboratories     1,050,000       700,000    
Edwards Lifesciences     600,000       500,000    
Henry Schein     1,090,000       800,000    
Hologic     1,900,000       0    
Human Genome Sciences     3,200,000       2,500,000    
InterMune     1,300,000       885,000    
Kinetic Concepts     900,000       400,000    
Luminex     1,700,000       0    
Myriad Genetics     1,735,000       1,200,000    
Nektar Therapeutics     4,425,000       3,052,000    
Poniard     1,450,916       0    
Psychiatric Solutions     2,200,000       1,300,000    
Thoratec     148,000       0    
United Therapeutics     900,000       760,000    
Energy & Minerals  
Carrizo Oil & Gas     1,167,000       994,900    
Trinidad Drilling (Canada)     5,000,000       3,677,900    
XTO Energy     1,580,000       0    
Other Industries  
American Commercial Lines     625,000       602,000    
Forest City Enterprises, Class B     1,158,000       1,105,289    
SL Green Realty     580,000       440,000    

 

See accompanying notes to financial statements.


19


Columbia Acorn Fund

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 97.2%    
Information 25.8%      
    > Business Software 4.7%  
  7,000,000     Informatica (a)(b)   $ 181,020    
        Enterprise Data Integration Software        
  2,083,291     ANSYS (a)     90,540    
        Simulation Software for Engineers & Designers        
  2,050,544     Micros Systems (a)     63,628    
        Information Systems for Restaurants & Hotels        
  12,500,000     Novell (a)     51,875    
        Directory, Operating System & Identity
Management Software		        
  1,200,000     Concur Technologies (a)     51,300    
        Web Enabled Cost & Expense
Management Software		        
  800,000     Quality Systems     50,231    
        IT Systems for Medical Groups &
Ambulatory Care Centers		        
  1,800,000     Blackbaud     42,534    
        Software & Services for Non-profits        
  2,425,000     Kenexa (a)(b)     31,646    
        Recruiting & Workforce Management Solutions        
  1,000,000     Red Hat (a)     30,900    
        Maintenance & Support for Open
Source & Middleware		        
  1,134,260     Tyler Technologies (a)     22,583    
        Financial, Tax, Court & Document
Management Systems for Government		        
  1,000,000     NetSuite (a)(c)     15,980    
        End to End IT Systems Solutions
Delivered Over the Web		        
  3,700,000     Actuate (a)(b)     15,836    
        Information Delivery Software & Solutions        
  2,594,654     Art Technology Group (a)     11,702    
        Software & Tools to Optimize Websites
for E-commerce		        
  1,000,000     Radiant Systems (a)     10,400    
        IT Systems for Restaurants, Convenience
Stores & Retail Stores		        
  700,000     Avid Technology (a)     8,932    
        Digital Nonlinear Editing Software & Systems        
  109,007     Blackboard (a)     4,948    
        Education Software        
      684,055    
    > Computer Hardware & Related
Equipment 2.9%		  
  3,800,000     Amphenol     175,484    
        Electronic Connectors        
  2,400,000     II-VI (a)(b)     76,320    
        Laser Optics & Specialty Materials        
  1,140,000     Dolby Laboratories (a)     54,412    
        Audio Technology for Consumer Electronics        
  1,400,000     Zebra Technologies (a)     39,704    
        Bar Code Printers        
  800,000     Nice Systems - ADR (Israel) (a)     24,832    
        Audio & Video Recording Solutions        
  970,000     Netgear (a)     21,039    
        Networking Products for Small Business & Home        
  740,000     Belden CDT     16,221    
        Specialty Cable        

 

Number of Shares     Value (000)  
  805,000     Stratasys (a)(c)   $ 13,911    
        Rapid Prototyping Systems        
  340,000     Teradata (a)     10,686    
        Enterprise Data Warehouse Systems        
      432,609    
    > Instrumentation 2.9%  
  1,450,000     Mettler Toledo (a)     152,235    
        Laboratory Equipment        
  5,200,000     Hexagon (Sweden)     76,386    
        Measurement Equipment        
  2,200,000     FLIR Systems (a)     71,984    
        Infrared Cameras        
  2,750,000     IPG Photonics (a)(b)     46,035    
        Fiber Lasers        
  1,545,000     Trimble Navigation (a)     38,934    
        GPS-based Instruments        
  400,000     Dionex (a)     29,548    
        Ion & Liquid Chromatography        
  400,000     Hamamatsu Photonics (Japan)     9,661    
        Optical Sensors for Medical &
Industrial Applications		        
      424,783    
    > Mobile Communications 2.6%  
  6,575,000     Crown Castle International (a)     256,688    
        Communications Towers        
  2,000,000     SBA Communications (a)     68,320    
        Communications Towers        
  1,200,000     American Tower (a)     51,852    
        Communications Towers in USA &
Latin America		        
  1,000,000     MetroPCS Communications (a)     7,630    
        Discount Cellular Telephone Services        
  1,500,000     Globalstar (a)(c)     1,305    
        Satellite Mobile Voice & Data Carrier        
      385,795    
    > Telephone and Data Services 2.0%  
  9,500,000     tw telecom (a)(b)     162,830    
        Fiber Optic Telephone/Data Services        
  4,200,000     Cogent Communications (a)(b)     41,412    
        Internet Data Pipelines        
  9,600,000     PAETEC Holding (a)(b)     39,840    
        Telephone/Data Services for Business        
  600,000     AboveNet (a)     39,024    
        Metropolitan Fiber Communications Services        
  2,000,000     General Communications (a)     12,760    
        Commercial Communications & Consumer
CATV, Web & Phone in Alaska		        
      295,866    
    > Financial Processors 1.7%  
  2,919,000     Global Payments     157,217    
        Credit Card Processor        
  10,000,000     Singapore Exchange (Singapore)     58,948    
        Singapore Equity & Derivatives Market Operator        
  2,125,000     Hong Kong Exchanges and Clearing
(Hong Kong)		     37,830    
        Hong Kong Equity & Derivatives
Market Operator		        
      253,995    

 

See accompanying notes to financial statements.


20


Number of Shares     Value (000)  
    > CATV 1.4%  
  4,070,000     Discovery Communications,
Series C (a)		   $ 107,936    
        CATV Programming        
  47,000     Jupiter Telecommunications (Japan)     46,564    
        Largest Cable Service Provider in Japan        
  1,250,000     Liberty Global, Series A (a)     27,388    
        Cable TV Franchises Outside the USA        
  4,000,000     Mediacom Communications (a)(b)     17,880    
        Cable Television Franchises        
      199,768    
    > Semiconductors & Related
Equipment 1.3%		  
  3,584,000     ON Semiconductor (a)     31,575    
        Mixed-signal & Power
Management Semiconductors		        
  1,035,000     Supertex (a)(b)     30,843    
        Analog/Mixed-signal Semiconductors        
  1,620,000     Microsemi (a)     28,755    
        Analog/Mixed-signal Semiconductors        
  870,000     Monolithic Power Systems (a)     20,854    
        High Performance Analog & Mixed-signal
Integrated Circuits (ICs)		        
  1,765,000     Pericom Semiconductor (a)(b)     20,350    
        Interface Integrated Circuits (ICs) &
Frequency Control Products		        
  3,750,000     Entegris (a)     19,800    
        Semiconductor Materials Management Products        
  500,000     Littelfuse (a)     16,075    
        Little Fuses        
  1,900,000     IXYS (a)(b)     14,098    
        Power Semiconductors        
  2,110,000     Integrated Device Technology (a)     13,652    
        Communications Semiconductors        
      196,002    
    > Telecommunications Equipment 1.2%  
  1,045,000     F5 Networks (a)     55,364    
        Internet Traffic Management Equipment        
  1,534,000     Blue Coat Systems (a)     43,780    
        WAN Acceleration & Network Security        
  1,580,000     Polycom (a)     39,453    
        Video Conferencing Equipment        
  1,165,000     CommScope (a)     30,908    
        Wireless Infrastructure Equipment &
Telecom Cable		        
      169,505    
    > Gaming Equipment & Services 1.1%  
  4,025,000     Bally Technologies (a)(b)     166,192    
        Slot Machines & Software        
      166,192    
    > Computer Services 1.0%  
  5,000,000     iGate (b)     50,000    
        IT & Business Process Outsourcing Services        
  1,905,000     SRA International (a)     36,386    
        Government IT Services        
  1,800,000     Virtusa (a)(b)     16,308    
        Offshore IT Outsourcing        

 

Number of Shares     Value (000)  
  747,658     ExlService Holdings (a)   $ 13,577    
        Business Process Outsourcing        
  4,500,000     Hackett Group (a)(b)     12,510    
        IT Integration & Best Practice Research        
  736,499     WNS - ADR (India) (a)     11,084    
        Offshore BPO (Business Process
Outsourcing) Services		        
  165,000     ManTech International (a)     7,966    
        Government IT Services        
      147,831    
    > Internet Related 0.7%  
  2,500,000     Switch & Data Facilities (a)(b)     50,525    
        Network Neutral Data Centers        
  188,000     NHN (South Korea) (a)     31,044    
        South Korea's Largest Online Search Engine        
  800,000     Akamai (a)     20,264    
        Content Delivery Network (CDN) for
Better Delivery of Online Content		        
  1,000,000     TheStreet.com     2,400    
        Financial Information Websites        
      104,233    
    > Electronics Distribution 0.6%  
  3,125,000     Avnet (a)     94,250    
        Electronic Components Distribution        
      94,250    
    > Business Information &
Marketing Services 0.5%		  
  2,500,000     Navigant Consulting (a)(b)     37,150    
        Financial Consulting Firm        
  650,000     FTI Consulting (a)     30,654    
        Financial Consulting Firm        
  1,240,000     InfoGROUP (a)     9,945    
        Business Data for Sales Leads        
      77,749    
    > Contract Manufacturing 0.5%  
  1,395,000     Plexus (a)     39,757    
        Electronic Manufacturing Services        
  3,050,000     Sanmina-SCI (a)     33,642    
        Electronic Manufacturing Services        
      73,399    
    > Advertising 0.2%  
  2,700,000     VisionChina Media - ADR (China) (a)     29,484    
        Advertising on Digital Screens in China's
Mass Transit System		        
      29,484    
    > Satellite Broadcasting &
Services 0.2%		  
  702,000     SES (France)     15,741    
        Fixed Satellite Services        
  400,000     Eutelsat (France)     12,834    
        Fixed Satellite Services        
      28,575    
    > Consumer Software 0.1%  
  3,200,000     THQ (a)     16,128    
        Entertainment Software        
      16,128    

 

See accompanying notes to financial statements.


21


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Radio 0.1%  
  1,541,000     Salem Communications (a)(b)   $ 9,230    
        Radio Stations for Religious Programming        
  164,991     Saga Communications (a)     2,071    
        Radio Stations in Small & Mid-sized Cities        
  2,400,000     Spanish Broadcasting System (a)(b)     1,872    
        Spanish Language Radio Stations        
      13,173    
    > TV Broadcasting 0.1%  
  2,500,000     Entravision Communications (a)     8,500    
        Spanish Language TV & Radio Stations        
  1,750,000     Gray Television (a)     2,642    
        Mid-market Affiliated TV Stations        
      11,142    
Information: Total     3,804,534    
Consumer Goods & Services 18.2%      
    > Retail 6.0%  
  4,500,000     Abercrombie & Fitch (b)     156,825    
        Teen Apparel Retailer        
  4,020,000     Urban Outfitters (a)     140,660    
        Apparel & Home Specialty Retailer        
  4,200,000     lululemon athletica (a)(b)     126,420    
        Premium Active Apparel Retailer        
  8,514,272     Chico's FAS (a)     119,626    
        Women's Specialty Retailer        
  2,564,000     J Crew Group (a)     114,713    
        Multi-channel Branded Retailer        
  7,500,000     Charming Shoppes (a)(b)     48,525    
        Women's Specialty Plus Size
Apparel Retailer		        
  3,500,000     AnnTaylor Stores (a)(b)     47,740    
        Women's Apparel Retailer        
  6,100,000     Saks (a)(c)     40,016    
        Luxury Department Store Retailer        
  900,000     Gymboree (a)     39,141    
        Children's Apparel Specialty Retailer        
  4,250,000     Talbots (a)(b)(c)     37,867    
        Women's Specialty Retailer        
  1,371,366     Gaiam (a)(b)     10,546    
        Healthy Living Catalogs & E-Commerce        
  146,390     Rue21 (a)     4,112    
        Fashion Value Apparel Retailer        
      886,191    
    > Travel 2.9%  
  4,700,000     Expedia (a)     120,837    
        Online Travel Services Company        
  1,950,000     Vail Resorts (a)(b)     73,710    
        Ski Resort Operator & Developer        
  3,700,000     Gaylord Entertainment (a)(b)(c)     73,075    
        Convention Hotels        
  4,700,000     Avis Budget Group (a)     61,664    
        Second Largest Car Rental Company        
  1,300,000     Choice Hotels     41,158    
        Franchisor of Budget Hotel Brands        
  3,000,000     Hertz (a)     35,760    
        Largest U.S. Rental Car Operator        

 

Number of Shares     Value (000)  
  110,000     Pierre & Vacances (France)   $ 8,478    
        Vacation Apartment Lets        
  141,800     Hyatt Hotels (a)     4,227    
        Hotel Owner Operator        
      418,909    
    > Educational Services 2.5%  
  1,350,000     ITT Educational Services (a)     129,546    
        Post-secondary Degree Services        
  9,500,000     SkillSoft - ADR (a)(b)     99,560    
        Web-based Learning Solutions (E-Learning)        
  550,000     New Oriental Education &
Technology - ADR (China) (a)(c)		     41,585    
        China's Largest Private Education
Service Provider		        
  1,677,000     Career Education (a)     39,091    
        Post-secondary Education        
  1,750,301     Universal Technical Institute (a)(b)     35,356    
        Vocational Training        
  3,000,000     Princeton Review (a)(b)     12,180    
        College Preparation Courses        
  1,268,258     Cambium Learning Group (a)     4,972    
        Education Services for the K-12 Market        
  2,000,000     Voyager Learning, Contingent
Value Rights (d)		     336    
        Education Services for the K-12 Market        
      362,626    
    > Apparel 1.7%  
  5,930,000     Coach     216,623    
        Designer & Retailer of Branded
Leather Accessories		        
  1,500,000     True Religion Apparel (a)(b)     27,735    
        Premium Denim        
      244,358    
    > Nondurables 1.5%  
  1,010,000     Chattem (a)(b)     94,233    
        Personal Care Products        
  1,700,000     Jarden     52,547    
        Branded Household Products        
  1,700,000     Helen of Troy (a)(b)     41,582    
        Hair Dryers & Curling Irons        
  550,000     Energizer Holdings (a)     33,704    
        Household & Personal Care Products        
      222,066    
    > Food & Beverage 0.9%  
  1,802,600     Hansen Natural (a)     69,220    
        Alternative Beverages        
  550,475     Diamond Foods     19,564    
        Culinary Ingredients & Snack Foods        
  819,000     Flowers Foods     19,459    
        Bread & Baked Goods        
  3,000,000     Smart Balance (a)     18,000    
        Healthy Food Products        
  1,153,700     GLG Life Tech (Canada) (a)     8,826    
        Produce an All-natural Sweetener
Extracted from the Stevia Plant		        
      135,069    

 

See accompanying notes to financial statements.


22


Number of Shares     Value (000)  
    > Furniture & Textiles 0.8%  
  2,800,000     Herman Miller (b)   $ 44,744    
        Office Furniture        
  4,000,000     Knoll (b)     41,320    
        Office Furniture        
  3,000,000     Steelcase     19,080    
        Office Furniture        
  1,000,000     Interface     8,310    
        Modular & Broadloom Carpet        
      113,454    
    > Other Consumer Services 0.5%  
  2,150,000     Lifetime Fitness (a)(b)(c)     53,599    
        Sport & Fitness Club Operator        
  10,976,800     Lifestyle International (Hong Kong)     20,360    
        Mid to High-end Department Store
Operator in Hong Kong & China		        
      73,959    
    > Casinos & Gaming 0.4%  
  4,050,000     Pinnacle Entertainment (a)(b)     36,369    
        Regional Casino Operator        
  875,000     Penn National Gaming (a)     23,782    
        Regional Casino Operator        
      60,151    
    > Consumer Goods Distribution 0.3%  
  2,100,000     Pool     40,068    
        Distributor of Swimming Pool
Supplies & Equipment		        
  264,010     Central European Distribution
(Poland) (a)		     7,501    
        Vodka Production & Spirits Distribution        
      47,569    
    > Leisure Products 0.3%  
  1,390,000     Thor Industries     43,646    
        RV & Bus Manufacturer        
      43,646    
    > Restaurants 0.3%  
  650,000     P.F. Chang's China Bistro (a)(c)     24,642    
        Mandarin Style Restaurants        
  2,000,000     AFC Enterprises (a)(b)     16,320    
        Popeye's Restaurants        
      40,962    
    > Other Entertainment 0.1%  
  435,000     CTS Eventim (Germany)     21,237    
        Event Ticket Sales        
      21,237    
    > Other Durable Goods —%  
  180,000     Cavco Industries (a)     6,466    
        Manufactured Homes        
      6,466    
Consumer Goods & Services: Total     2,676,663    
Industrial Goods & Services 18.1%      
    > Machinery 7.6%  
  4,200,000     Donaldson (b)     178,668    
        Industrial Air Filtration        

 

Number of Shares     Value (000)  
  4,500,000     Ametek   $ 172,080    
        Aerospace/Industrial Instruments        
  2,700,000     Oshkosh     99,981    
        Specialty Truck Manufacturer        
  2,627,500     Clarcor (b)     85,236    
        Mobile & Industrial Filters        
  2,200,000     ESCO Technologies (b)     78,870    
        Automatic Electric Meter Readers        
  2,150,000     Pall     77,830    
        Filtration & Fluids Clarification        
  2,300,000     Pentair     74,290    
        Pumps & Water Treatment        
  1,100,000     Nordson     67,298    
        Dispensing Systems for Adhesives & Coatings        
  1,975,000     Mine Safety Appliances (b)     52,396    
        Safety Equipment        
  1,660,000     MOOG (a)     48,522    
        Motion Control Products for Aerospace,
Defense & Industrial Markets		        
  1,300,000     Kaydon     46,488    
        Specialized Friction & Motion Control Products        
  1,225,000     HEICO (b)     44,051    
        FAA Approved Aircraft Replacement Parts        
  900,000     Toro     37,629    
        Turf Maintenance Equipment        
  600,000     Wabtec     24,504    
        Freight & Transit Component Supplier        
  1,000,000     Jain Irrigation Systems (India)     18,790    
        Agricultural Micro-irrigation Systems &
Food Processing		        
  114,000     Neopost (France)     9,419    
        Postage Meter Machines        
      1,116,052    
    > Industrial Materials & Specialty
Chemicals 2.9%		  
  2,000,000     Sociedad Quimica y Minera
de Chile - ADR (Chile)		     75,140    
        Producer of Specialty Fertilizers,
Lithium & Iodine		        
  2,200,000     Nalco Holding Company     56,122    
        Provider of Water Treatment & Process
Chemicals & Services		        
  1,530,000     Albemarle     55,646    
        Refinery Catalysts & Other Specialty Chemicals        
  363,000     Novozymes (Denmark)     37,639    
        Industrial Enzymes        
  1,600,000     Drew Industries (a)(b)     33,040    
        RV & Manufactured Home Components        
  500,000     Greif     26,990    
        Industrial Packaging        
  741,176     Carbone Lorraine (France)     26,720    
        Advanced Industrial Materials        
  15,000     Sika (Switzerland)     23,335    
        Chemicals for Construction &
Industrial Applications		        
  1,000,000     Albany International     22,460    
        Paper Machine Clothing & Advanced Textiles        
  2,000,000     Kansai Paint (Japan)     16,607    
        Paint Producer in Japan, India, China &
Southeast Asia		        

 

See accompanying notes to financial statements.


23


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Industrial Materials & Specialty
Chemicals—continued		  
  600,000     Crown Holdings (a)   $ 15,348    
        Metal Can Packaging        
  450,000     Celanese     14,445    
        Commodity & Specialty Chemicals Provider        
  200,000     Silgan Holdings     11,576    
        Metal & Plastic Packaging        
  350,000     Koppers Holdings     10,654    
        Integrated Provider of Carbon Compounds        
      425,722    
    > Industrial Distribution 2.0%  
  2,555,200     Airgas     121,628    
        Industrial Gas Distributor        
  1,000,000     WW Grainger     96,830    
        Industrial Distribution        
  2,600,000     Interline Brands (a)(b)     44,902    
        Industrial Distribution        
  625,000     Watsco     30,612    
        HVAC Distribution        
      293,972    
    > Other Industrial Services 1.8%  
  3,300,000     Expeditors International of Washington     114,609    
        International Freight Forwarder        
  1,500,000     Imtech (Netherlands)     40,253    
        Electromechanical & ICT
Installation & Maintenance		        
  1,300,000     Forward Air     32,565    
        Freight Transportation Between Airports        
  2,000,000     UTI Worldwide     28,640    
        Freight Forwarding & Logistics        
  1,750,000     Mobile Mini (a)     24,658    
        Portable Storage Units Leasing        
  924,900     TrueBlue (a)     13,698    
        Temporary Manual Labor        
  900,000     American Reprographics (a)     6,309    
        Document Management & Logistics        
      260,732    
    > Outsourcing Services 1.2%  
  35,000,000     Olam International (Singapore)     65,547    
        Agriculture Supply Chain Manager        
  2,070,000     Quanta Services (a)     43,139    
        Electrical & Telecom Construction Services        
  1,428,224     Administaff (b)     33,692    
        Professional Employer Organization        
  3,000,000     Serco (United Kingdom)     25,505    
        Facilities Management        
  600,000     GP Strategies (a)     4,518    
        Training Programs        
      172,401    
    > Construction 1.0%  
  700,000     Martin Marietta Materials     62,587    
        Aggregates        
  60,000     NVR (a)     42,642    
        D.C. Homebuilder        
  850,000     Simpson Manufacturing     22,856    
        Wall Joint Maker        

 

Number of Shares     Value (000)  
  687,500     Ritchie Brothers Auctioneers (c)   $ 15,421    
        Heavy Equipment Auctioneer        
  384,000     M/I Homes (a)     3,990    
        Columbus-based Home Builder        
      147,496    
    > Waste Management 0.6%  
  1,858,500     Republic Services     52,614    
        Solid Waste Management        
  1,200,000     Waste Connections (a)     40,008    
        Solid Waste Management        
      92,622    
    > Electrical Components 0.4%  
  1,300,000     Acuity Brands     46,332    
        Commercial Lighting Fixtures        
  1,000,000     Ushio (Japan)     16,648    
        Industrial Light Sources        
      62,980    
    > Conglomerates 0.3%  
  2,200,000     Aalberts Industries (Netherlands)     31,431    
        Flow Control & Heat Treatment        
  600,000     Ibiden (Japan)     21,368    
        Electronic Parts & Ceramics        
      52,799    
    > Steel 0.2%  
  1,680,000     GrafTech International (a)     26,124    
        Industrial Graphite Materials Producer        
      26,124    
    > Water 0.1%  
  1,750,000     Mueller Water Products     9,100    
        Fire Hydrants, Valves & Ductile Iron Pipes        
      9,100    
Industrial Goods & Services: Total     2,660,000    
Finance 11.8%      
    > Banks 3.7%  
  2,689,000     BOK Financial     127,781    
        Tulsa-based Southwest Bank        
  5,718,205     Valley National Bancorp (c)     80,798    
        New Jersey/New York Bank        
  4,150,000     TCF Financial     56,523    
        Great Lakes Bank        
  1,172,396     SVB Financial Group (a)     48,877    
        Bank to Venture Capitalists        
  2,305,600     MB Financial     45,467    
        Chicago Bank        
  3,737,900     Associated Banc-Corp (c)     41,154    
        Midwest Bank        
  640,000     Cullen/Frost Bankers     32,000    
        Texas Bank        
  2,440,000     Wilmington Trust     30,110    
        Delaware Trust Bank        
  1,200,000     TriCo Bancshares (b)     19,980    
        California Central Valley Bank        
  660,000     Hudson Valley     16,276    
        Metro New York City Bank        

 

See accompanying notes to financial statements.


24


Number of Shares     Value (000)  
    > Banks—continued  
  295,000     City National   $ 13,452    
        Bank & Asset Manager        
  830,700     CVB Financial (c)     7,177    
        Inland Empire Business Bank        
  1,170,000     First Busey     4,551    
        Illinois Bank        
  500,000     Sandy Spring Bancorp (c)     4,445    
        Baltimore, D.C. Bank        
  246,505     Pacific Continental     2,820    
        Pacific N.W. Bank        
  251,000     Eagle Bancorp (a)     2,628    
        Metro D.C. Bank        
  583,872     Green Bankshares (c)     2,073    
        Tennessee Bank        
  491,788     West Coast Bancorp     1,033    
        Portland Community Bank        
      537,145    
    > Insurance 2.9%  
  2,427,400     Leucadia National (a)     57,748    
        Insurance Holding Company        
  1,890,000     HCC Insurance Holdings     52,863    
        Specialty Insurance        
  9,420,000     Conseco (a)     47,100    
        Life, Long-term Care & Medical
Supplement Insurance		        
  849,000     Hanover Insurance Group     37,721    
        Personal & Commercial Lines Insurance        
  1,200,000     Assurant     35,376    
        Specialty Insurance        
  100,000     Markel (a)     34,000    
        Specialty Insurance        
  1,450,000     Delphi Financial Group     32,437    
        Workers Compensation & Group Employee
Benefit Products & Services		        
  575,000     Navigators Group (a)     27,088    
        Specialty Insurance        
  1,000,000     Aspen Insurance     25,450    
        Commercial Lines Insurance/Reinsurance        
  1,420,000     Selective Insurance Group     23,359    
        Commercial & Personal Lines Insurance        
  832,000     Willis Group (Ireland)     21,948    
        Insurance Broker        
  900,000     Tower Group     21,069    
        Commercial & Personal Lines Insurance        
  640,716     Protective Life     10,604    
        Life Insurance        
      426,763    
    > Finance Companies 2.5%  
  7,235,000     AmeriCredit (a)(b)     137,754    
        Auto Lending        
  1,545,000     World Acceptance (a)(b)     55,357    
        Personal Loans        
  2,350,000     McGrath Rentcorp (b)     52,546    
        Temporary Space & IT Rentals        
  1,730,000     GATX     49,737    
        Rail Car Lessor        
  3,300,000     H&E Equipment Services (a)(b)     34,617    
        Heavy Equipment Leasing        

 

Number of Shares     Value (000)  
  655,000     Aaron's (c)   $ 18,163    
        Rent to Own        
  1,650,000     CAI International (a)(b)     14,900    
        International Container Leasing        
  1,091,000     Marlin Business Services (a)(b)     8,652    
        Small Equipment Leasing        
      371,726    
    > Brokerage & Money
Management 1.6%		  
  3,735,000     Eaton Vance     113,581    
        Specialty Mutual Funds        
  6,448,000     SEI Investments     112,969    
        Mutual Fund Administration &
Investment Management		        
  700,000     Investment Technology Group (a)     13,790    
        Electronic Trading        
      240,340    
    > Savings & Loans 1.1%  
  6,480,000     People's United     108,216    
        Connecticut Savings & Loan        
  450,000     Housing Development Finance
(India)		     25,935    
        Indian Mortgage Lender        
  731,478     ViewPoint Financial     10,541    
        Texas Thrift        
  1,010,000     Provident New York Bancorp     8,524    
        New York State Thrift        
  234,693     Berkshire Hills Bancorp     4,854    
        Northeast Thrift        
      158,070    
Finance: Total     1,734,044    
Health Care 9.6%      
    > Medical Equipment &
Devices 3.1%		  
  3,000,000     Alexion Pharmaceuticals (a)     146,460    
        Biotech Focused on Orphan Diseases        
  1,700,000     Illumina (a)(c)     52,105    
        Leading Tools & Service Provider for
Genetic Analysis		        
  2,400,000     American Medical Systems (a)     46,296    
        Medical Devices to Treat
Urological Conditions		        
  500,000     Edwards Lifesciences (a)     43,425    
        Heart Valves        
  700,000     Haemonetics (a)     38,605    
        Blood & Plasma Collection Equipment        
  1,000,000     Orthofix International (a)(b)     30,970    
        Bone Fixation & Stimulation Devices        
  450,000     Beckman Coulter     29,448    
        In-vitro Clinical Diagnostics        
  850,000     Sirona Dental Systems (a)     26,979    
        Manufacturer of Dental Equipment        
  568,910     Gen-Probe (a)     24,406    
        Molecular In-vitro Diagnostics        
  400,000     Kinetic Concepts (a)     15,060    
        Wound Healing & Tissue Repair Products        

 

See accompanying notes to financial statements.


25


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Medical Equipment &
Devices—continued		  
  1,232,900     Nanosphere (a)   $ 7,940    
        Molecular Diagnostics Company with
Best of Breed Platform		        
      461,694    
    > Biotechnology & Drug Delivery 3.0%  
  2,500,000     Human Genome Sciences (a)     76,500    
        Biotech Focused on HCV,
Inflammation & Cancer		        
  3,250,000     BioMarin (a)     61,132    
        Biotech Focused on Orphan Diseases        
  4,117,700     Seattle Genetics (a)     41,836    
        Antibody-based Therapies for Cancer        
  1,350,000     Auxilium Pharmaceuticals (a)     40,473    
        Biotech Focused on Niche Disease Areas        
  760,000     United Therapeutics (a)     40,014    
        Biotech Focused on Rare Diseases        
  1,300,000     Acorda Therapeutics (a)     32,786    
        Biopharma Company Focused on
Nervous Disorder Drugs		        
  1,200,000     Myriad Genetics (a)     31,320    
        Genetic Diagnostics        
  3,052,000     Nektar Therapeutics (a)     28,445    
        Drug Delivery Technologies        
  600,000     AMAG Pharmaceuticals (a)     22,818    
        Biotech Focused on Niche Diseases        
  2,800,000     Allos Therapeutics (a)(c)     18,396    
        Cancer Drug Development        
  475,000     Onyx Pharmaceuticals (a)     13,937    
        Commercial-stage Biotech Focused on Cancer        
  885,000     InterMune (a)     11,540    
        Drugs for Pulmonary Fibrosis & Hepatitis C        
  1,400,000     Micromet (a)(c)     9,324    
        Next-generation Antibody Technology        
  2,700,000     NPS Pharmaceuticals (a)(b)     9,180    
        Orphan Drugs & Healthy Royalties        
  359,944     MicroDose Technologies (a)(d)     162    
        Drug Inhaler Development        
  187,500     Locus Pharmaceuticals,
Series A-1, Pfd. (a)(d)		     9    
  96,644     Locus Pharmaceuticals,
Series B-1, Pfd. (a)(d)		     5    
        High Throughput Rational Drug Design        
      437,877    
    > Medical Supplies 1.7%  
  800,000     Henry Schein (a)     42,080    
        Largest Distributor of Healthcare Products        
  1,675,000     QIAGEN (Netherlands) (a)(c)     37,386    
        Life Science Tools & Molecular Diagnostics        
  665,000     Idexx Laboratories (a)(c)     35,538    
        Diagnostic Equipment & Services
for Veterinarians		        
  486,000     Techne     33,320    
        Cytokines, Antibodies & Other Reagents for
Life Science		        

 

Number of Shares     Value (000)  
  2,500,000     Cepheid (a)   $ 31,200    
        Molecular Diagnostics        
  850,000     ICU Medical (a)(b)     30,974    
        Intravenous Therapy Products        
  1,400,000     Immucor (a)     28,336    
        Automated Blood Typing Reagents        
  150,000     Owens & Minor     6,440    
        Distribution of Medical Supplies        
      245,274    
    > Health Care Services 1.6%  
  2,750,000     PSS World Medical (a)     62,067    
        Distributor of Medical Supplies        
  700,000     Mednax (a)     42,077    
        Physician Management for Pediatric &
Anesthesia Practices		        
  1,300,000     Psychiatric Solutions (a)     27,482    
        Behavioral Health Services        
  4,250,000     eResearch Technology (a)(b)     25,543    
        Clinical Research Services        
  700,000     Charles River Laboratories (a)     23,583    
        Pharmaceutical Research        
  850,000     Healthcare Services Group     18,241    
        Outsourced Services to Long-term
Care Industry		        
  700,000     Allscripts-Misys Healthcare (a)     14,161    
        Clinical IT Solutions for Physician Offices        
  800,000     Emdeon (a)     12,200    
        Revenue & Payment Cycle Management        
  250,000     AthenaHealth (a)     11,310    
        Revenue Cycle Management for
Physician Offices		        
      236,664    
    > Pharmaceuticals 0.2%  
  475,000     Cephalon (a)     29,645    
        Specialty Pharmaceuticals for Pain,
Central Nervous System & Oncology		        
  2,450,000     United Drug (Ireland)     7,475    
        Irish Pharmaceutical
Wholesaler & Outsourcer		        
      37,120    
Health Care: Total     1,418,629    
Energy & Minerals 9.3%      
    > Oil Services 4.3%  
  3,100,000     FMC Technologies (a)     179,304    
        Oil & Gas Wellhead Manufacturer        
  2,809,568     Fugro (Netherlands)     160,446    
        Sub-sea Oilfield Services        
  3,200,000     Atwood Oceanics (a)     114,720    
        Offshore Drilling Contractor        
  1,000,000     Oceaneering International (a)     58,520    
        Provider of Sub-sea Services &
Manufactured Products		        
  1,670,000     ShawCor (Canada)     46,866    
        Oil & Gas Pipeline Products        
  3,677,900     Trinidad Drilling (Canada)     24,863    
        Operator of Deep Land Drilling Rigs &
Service Rigs Throughout North America		        

 

See accompanying notes to financial statements.


26


Number of Shares     Value (000)  
    > Oil Services—continued  
  1,750,000     Tesco (a)   $ 22,592    
        Developing New Well Drilling Technologies        
  375,000     Bristow (a)     14,419    
        Largest Provider of Helicopter Services to
Offshore Oil & Gas Producers		        
  600,000     Tetra Technologies (a)     6,648    
        U.S.-based Services Company with Life of
Field Approach		        
  2,983,500     Horizon North Logistics (Canada) (a)     4,707    
        Provides Diversified Oil Service Offering in
Northern Canada		        
      633,085    
    > Oil & Gas Producers 3.6%  
  3,200,000     Southwestern Energy (a)     154,240    
        Oil & Gas Producer        
  4,910,550     Pacific Rubiales Energy (Canada) (a)     72,542    
        Oil Production & Exploration in Colombia        
  1,100,000     Range Resources     54,835    
        Oil & Gas Producer        
  2,400,000     Tullow Oil (United Kingdom)     50,049    
        Oil & Gas Producer        
  975,000     Ultra Petroleum (a)     48,614    
        Oil & Gas Producer        
  2,700,000     Denbury Resources (a)     39,960    
        Oil Producer Using Co2 Injection        
  994,900     Carrizo Oil & Gas (a)     26,355    
        Oil & Gas Producer        
  4,000,000     Gran Tierra Energy (Canada) (a)     22,948    
        Oil Exploration & Production in Colombia,
Peru & Argentina		        
  24,000,000     Cap-Link Ventures (a)(d)     10,097    
  24,000,000     Cap-Link Ventures-Warrants (a)(d)     6,425    
        Oil & Gas Exploration & Production in
Colombia, Peru & Paraguay		        
  250,000     Cabot Oil & Gas     10,898    
        Large Natural Gas Producer in Appalachia &
Gulf Coast		        
  347,600     Baytex (Canada)     9,871    
        Oil & Gas Producer in Canada        
  1,198,100     Pan Orient (Canada) (a)     8,706    
        Growth Oriented & Return Focused
Asian Explorer		        
  1,200,000     Houston American Energy     7,392    
        Oil & Gas Exploration/Production in Colombia        
  1,500,000     Vaalco Energy     6,825    
        Oil & Gas Producer        
  8,435,000     Alange Energy (Colombia) (a)     5,081    
        Oil & Gas Exploration/Production in Colombia        
  264,000     Petrolifera Petroleum (a)     245    
        Oil & Gas Exploration & Production in
South America		        
      535,083    
    > Mining 1.1%  
  2,520,000     Silver Wheaton (Canada) (a)     37,850    
        Silver Mining Royalty Company        
  290,000     Core Laboratories (Netherlands)     34,255    
        Oil & Gas Reservoir Consulting        
  500,000     Royal Gold     23,550    
        Precious Metals Mining Royalty Company        

 

Number of Shares     Value (000)  
  7,725,000     Uranium One (South Africa) (a)   $ 22,307    
        Uranium Mines in Kazakhstan, the
U.S. & Australia		        
  1,000,000     Ivanhoe Mines (Canada) (a)     14,830    
        Copper Mine Project in Mongolia        
  6,333,700     Zhaojin Mining Industry (China)     12,493    
        Gold Mining & Refining in China        
  10,000,000     Orko Silver (Canada) (a)(b)     11,474    
        Silver Exploration & Development        
  1,500,000     PolyMet Mining (a)(c)     4,590    
        Copper & Nickel Miner        
      161,349    
    > Independent Power 0.1%  
  340,000     Wisconsin Energy     16,942    
        Wisconsin Utility        
      16,942    
    > Oil Refining, Marketing &
Distribution 0.1%		  
  175,000     Vopak (Netherlands)     13,826    
        World's Largest Operator of Petroleum &
Chemical Storage Terminals		        
      13,826    
    > Alternative Energy 0.1%  
  400,000     STR Holdings (a)     6,284    
        Makes Encapsulant for Solar Power
Modules/Provides Quality Assurance		        
  1,800,000     Synthesis Energy Systems (China) (a)     1,670    
        Owner/Operator of Gasification Plants        
      7,954    
Energy & Minerals: Total     1,368,239    
Other Industries 4.4%      
    > Real Estate 2.6%  
  675,000     Federal Realty Investment Trust     45,711    
        Shopping Centers        
  850,000     Digital Realty Trust     42,738    
        Technology-focused Office Buildings        
  2,260,902     BioMed Realty Trust     35,677    
        Life Science-focused Office Buildings        
  22,000,000     Ascendas REIT (Singapore)     34,453    
        Singapore Industrial Property Landlord        
  900,000     Corporate Office Properties     32,967    
        Office Buildings        
  880,376     Macerich (c)     31,649    
        Regional Shopping Malls        
  900,000     American Campus Communities     25,290    
        Student Housing        
  40,000,000     Mapletree Logistics Trust (Singapore)     22,290    
        Asian Logistics Landlord        
  440,000     SL Green Realty     22,106    
        Manhattan Office Buildings        
  700,000     Washington REIT     19,285    
        Washington D.C. Diversified Properties        
  3,750,000     DCT Industrial Trust     18,825    
        Industrial Properties        
  1,400,000     Extra Space Storage     16,170    
        Self Storage Facilities        

 

See accompanying notes to financial statements.


27


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Real Estate—continued  
  2,800     Orix JREIT (Japan)   $ 13,916    
        Diversified REIT        
  1,105,289     Forest City Enterprises, Class B (a)     13,131    
        Commercial & Residential
Property Developer		        
  2,300,000     Kite Realty Group     9,361    
        Community Shopping Centers        
  37,407     Security Capital European Realty
(Luxembourg) (a)(d)(e)		     —    
        Self Storage Properties        
      383,569    
    > Transportation 1.1%  
  2,110,000     JB Hunt Transport Services     68,090    
        Truck & Intermodal Carrier        
  2,480,000     Heartland Express     37,869    
        Regional Trucker        
  2,500,000     Rush Enterprises, Class A (a)(b)     29,725    
  500,000     Rush Enterprises, Class B (a)(b)     5,250    
        Truck Sales & Services        
  500,000     World Fuel Services     13,395    
        Global Fuel Broker        
  602,000     American Commercial Lines (a)     11,035    
        Operator of Inland Barges/Builder of
Barges & Vessels		        
  150,000     Old Dominion Freight Lines (a)     4,605    
        LTL Trucker        
      169,969    
    > Regulated Utilities 0.7%  
  2,200,000     Northeast Utilities     56,738    
        Regulated Electric Utility        
  500,000     Red Electrica de Espana (Spain)     27,711    
        Spanish Power Transmission        
  3,500,000     Terna (Italy)     15,060    
        Italian Power Transmission        
      99,509    
Other Industries: Total     653,047    
Total Equities: 97.2%
(Cost: $10,369,467)		     14,315,156    
Securities Lending Collateral: 1.3%      
  183,433,582     Dreyfus Government Cash
Management Fund (f)
(7 day yield of 0.000%)		     183,434    
Total Securities Lending Collateral:
(Cost: $183,434)		     183,434    

 

Principal Amount (000)     Value (000)  
Short-Term Obligations: 3.1%  
    > Repurchase Agreement 2.8%  
$ 413,094     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by
U.S. Government Agency
obligations with various
maturities to 9/17/10,
market value $421,361
(repurchase proceeds $413,094)		   $ 413,094    
      413,094    
    > Commercial Paper 0.3%  
  50,000     Toyota Motor Credit
0.16% due 1/04/10		     49,999    
      49,999    
Total Short-Term Obligations:
(Amortized Cost: $463,093)		     463,093    
Total Investments: 101.6%
(Cost: $11,015,994)(g)(h)		     14,961,683    
Obligation to Return Collateral for
Securities Loaned: (1.3)%		     (183,434 )  
Cash and Other Assets Less Liabilities: (0.3)%     (51,098 )  
Total Net Assets: 100.0%   $ 14,727,151    

 

ADR = American Depositary Receipts

See accompanying notes to financial statements.


28


> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
Abercrombie & Fitch     1,925,000       2,695,000       120,000       4,500,000     $ 156,825     $ 2,124    
Actuate     1,683,760       2,016,240       -       3,700,000       15,836       -    
Administaff     2,025,000       -       596,776       1,428,224       33,692       1,014    
AFC Enterprises     1,800,000       200,000       -       2,000,000       16,320       -    
AmeriCredit     7,235,000       -       -       7,235,000       137,754       -    
AnnTaylor Stores     -       3,500,000       -       3,500,000       47,740       -    
Array Biopharma*     2,910,000       -       2,910,000       -       -       -    
Avis Budget Group*     -       6,000,000       1,300,000       4,700,000       61,664       -    
Bally Technologies     3,750,000       275,000       -       4,025,000       166,192       -    
CAI International     1,500,000       150,000       -       1,650,000       14,900       -    
Carrizo Oil & Gas*     2,525,000       200,000       1,730,100       994,900       26,355       -    
Cepheid*     3,100,000       900,000       1,500,000       2,500,000       31,200       -    
Champion Enterprises*     4,500,000       -       4,500,000       -       -       -    
Charlotte Russe*     -       1,900,000       1,900,000       -       -       -    
Charming Shoppes     -       7,500,000       -       7,500,000       48,525       -    
Chattem     1,010,000       -       -       1,010,000       94,233       -    
Clarcor     3,000,000       -       372,500       2,627,500       85,236       1,103    
Cogent Communications     4,300,000       -       100,000       4,200,000       41,412       -    
Conseco*     9,420,000       -       -       9,420,000       47,100       -    
Donaldson     4,200,000       -       -       4,200,000       178,668       1,932    
Drew Industries     1,324,000       276,000       -       1,600,000       33,040       -    
Entravision Communications*     2,500,000       -       -       2,500,000       8,500       -    
eResearch Technology     3,935,901       314,099       -       4,250,000       25,543       -    
ESCO Technologies     2,200,000       -       -       2,200,000       78,870       -    
FARO Technologies*     1,275,000       -       1,275,000       -       -       -    
Forest City Enterprises, Class B*     1,158,000       -       52,711       1,105,289       13,131       -    
Forward Air*     1,900,000       -       600,000       1,300,000       32,565       413    
Gaiam     1,200,000       171,366       -       1,371,366       10,546       -    
Gaylord Entertainment     3,300,000       400,000       -       3,700,000       73,075       -    
H&E Equipment Services     3,300,000       -       -       3,300,000       34,617       -    
Hackett Group     4,600,000       -       100,000       4,500,000       12,510       -    
HEICO     850,000       375,000       -       1,225,000       44,051       125    
Helen of Troy     1,900,000       -       200,000       1,700,000       41,582       -    
Herman Miller     3,000,000       500,000       700,000       2,800,000       44,744       682    
Hot Topic*     -       3,791,890       3,791,890       -       -       -    
ICU Medical     1,250,000       -       400,000       850,000       30,974       -    
iGate     5,000,000       -       -       5,000,000       50,000       550    
II-VI     2,400,000       -       -       2,400,000       76,320       -    
Informatica     5,500,000       1,500,000       -       7,000,000       181,020       -    
Interline Brands     2,000,000       600,000       -       2,600,000       44,902       -    
IPG Photonics     2,750,000       -       -       2,750,000       46,035       -    
ITT Educational Services*     2,150,000       -       800,000       1,350,000       129,546       -    
IXYS     2,035,000       400,000       535,000       1,900,000       14,098       -    
Kenexa     2,425,000       -       -       2,425,000       31,646       -    
Kite Realty Group*     1,900,000       400,000       -       2,300,000       9,361       1,016    
Knoll     3,300,000       700,000       -       4,000,000       41,320       636    
Lifetime Fitness     1,900,000       250,000       -       2,150,000       53,599       -    
lululemon athletica     -       4,200,000       -       4,200,000       126,420       -    
Luminex*     1,110,000       1,343,000       2,453,000       -       -       -    
Marlin Business Services     1,091,000       -       -       1,091,000       8,652       -    
MB Financial*     2,020,000       285,600       -       2,305,600       45,467       306    
McGrath Rentcorp     1,890,000       460,000       -       2,350,000       52,546       1,872    
Mediacom Communications     4,000,000       344,085       344,085       4,000,000       17,880       -    
Mine Safety Appliances     1,975,000       -       -       1,975,000       52,396       1,896    
Mobile Mini*     1,750,000       -       -       1,750,000       24,658       -    
Navigant Consulting     2,500,000       -       -       2,500,000       37,150       -    
Nektar Therapeutics*     5,325,000       -       2,273,000       3,052,000       28,445       -    
NPS Pharmaceuticals     -       2,700,000       -       2,700,000       9,180       -    

 

See accompanying notes to financial statements.


29


Columbia Acorn Fund

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
Orko Silver     -       10,000,000       -       10,000,000     $ 11,474     $ -    
Orthofix International     600,000       400,000       -       1,000,000       30,970       -    
PAETEC Holding     8,000,000       1,600,000       -       9,600,000       39,840       -    
Pericom Semiconductor     915,000       850,000       -       1,765,000       20,350       -    
Pinnacle Entertainment     4,050,000       -       -       4,050,000       36,369       -    
Pool*     2,600,000       -       500,000       2,100,000       40,068       1,287    
Princeton Review     2,550,000       450,000       -       3,000,000       12,180       -    
Quality Systems*     1,850,000       -       1,050,000       800,000       50,232       1,665    
Radiant Systems*     3,050,000       -       2,050,000       1,000,000       10,400       -    
Rush Enterprises     2,750,000       250,000       -       3,000,000       34,975       -    
Salem Communications     1,541,000       -       -       1,541,000       9,230       -    
Savient Pharmaceuticals*     1,416,941       1,583,059       3,000,000       -       -       -    
SeaBright Insurance Holdings*     1,200,000       -       1,200,000       -       -       -    
Seattle Genetics*     4,400,000       867,700       1,150,000       4,117,700       41,836       -    
SkillSoft - ADR     9,500,000       -       -       9,500,000       99,560       -    
Smart Balance*     5,000,000       500,000       2,500,000       3,000,000       18,000       -    
Spanish Broadcasting System     2,400,000       -       -       2,400,000       1,872       -    
Stewart Information Services*     909,420       -       909,420       -       -       -    
Stratasys*     1,180,000       -       375,000       805,000       13,911       -    
Supertex     1,035,000       -       -       1,035,000       30,843       -    
Switch & Data Facilities     2,500,000       -       -       2,500,000       50,525       -    
Talbots     4,250,000       -       -       4,250,000       37,867       -    
TriCo Bancshares     1,200,000       -       -       1,200,000       19,980       624    
True Religion Apparel     1,150,000       633,000       283,000       1,500,000       27,735       -    
tw telecom     9,500,000       -       -       9,500,000       162,830       -    
Universal Technical Institute     1,500,000       250,301       -       1,750,301       35,356       -    
Vail Resorts     2,390,000       -       440,000       1,950,000       73,710       -    
Viad*     1,032,075       -       1,032,075       -       -       73    
Virtusa     1,000,000       800,000       -       1,800,000       16,308       -    
Voyager Learning*     2,000,000       -       2,000,000       -       -       -    
West Coast Bancorp*     837,000       163,000       508,212       491,788       1,033       28    
World Acceptance     1,545,000       -       -       1,545,000       55,357       -    
Total of Affiliated Transactions     225,449,097       62,694,340       45,551,769       242,591,668     $ 3,750,852     $ 17,346    

 

*  At December 31, 2009, the Fund owned less than five percent of the company's outstanding voting shares.

  The aggregate cost and value of these companies at December 31, 2009, were $3,167,879 and $3,750,852, respectively. Investments in affiliated companies represented 25.5% of the Fund's total net assets at December 31, 2009.

(c)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $175,896.

(d)  Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. These securities are valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. At December 31, 2009, the market value of these securities amounted to $17,034, which represented 0.12% of total net assets.

  Additional information on these securities is as follows:

Security   Acquisition
Dates		   Shares   Cost   Value  
Cap-Link Ventures   11/20/09     24,000,000     $ 4,898     $ 10,097    
Cap-Link Ventures-Warrants   11/20/09     24,000,000       3,117       6,425    
Voyager Learning, Contingent Value Rights   12/24/09     2,000,000       -       336    
MicroDose Technologies   11/24/00     359,944       2,005       162    
Locus Pharmaceuticals, Series A-1, Pfd.   9/05/01     187,500       7,500       9    
Locus Pharmaceuticals, Series B-1, Pfd.   2/08/07     96,644       280       5    
Security Capital European Realty   8/20/98-7/20/99     37,407       205       -    
                $ 18,005     $ 17,034    

 

(e)  Security has no value.

(f)  Investment made with cash collateral received from securities lending activity.

(g)  At December 31, 2009, for federal income tax purposes, the cost of investments was $11,076,313 and net unrealized appreciation was $3,885,370, consisting of gross unrealized appreciation of $5,220,362 and gross unrealized depreciation of $1,334,992.

See accompanying notes to financial statements.


30


> Notes to Statement of Investments (dollar values in thousands)

(h)  On December 31, 2009, the market value of foreign securities represented 11.08% of total net assets. The Fund's foreign portfolio was diversified as follows:

    Value   Percentage
of Net Assets		  
Netherlands   $ 317,597       2.16    
Canada     263,483       1.79    
Singapore     181,238       1.23    
Japan     124,764       0.85    
China     85,232       0.58    
Sweden     76,386       0.52    
United Kingdom     75,554       0.51    
Chile     75,140       0.51    
France     73,192       0.5    
Hong Kong     58,190       0.39    
India     55,809       0.38    
    Value   Percentage
of Net Assets		  
South Korea   $ 53,351       0.36    
Denmark     37,639       0.26    
Ireland     29,423       0.20    
Spain     27,711       0.19    
Israel     24,832       0.17    
Switzerland     23,335       0.16    
Germany     21,237       0.14    
Italy     15,060       0.1    
Poland     7,501       0.05    
Colombia     5,081       0.03    
Luxembourg     -       -    
Total Foreign Portfolio   $ 1,631,755       11.08    

 

The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Information   $ 3,515,526     $ 289,008     $ -     $ 3,804,534    
Consumer Goods & Services     2,626,252       50,075       336       2,676,663    
Industrial Goods & Services     2,326,738       333,262       -       2,660,000    
Finance     1,708,109       25,935       -       1,734,044    
Health Care     1,410,978       7,475       176       1,418,629    
Energy & Minerals     1,114,903       253,336       -       1,368,239    
Other Industries     539,617       113,430       -       653,047    
Total Equities     13,242,123       1,072,521       512       14,315,156    
Total Securities Lending Collateral     183,434       -       -       183,434    
Total Short-Term Obligations     -       463,093       -       463,093    
Total Investments   $ 13,425,557     $ 1,535,614     $ 512     $ 14,961,683    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Consumer Goods & Services   $ -     $ -     $ -     $ -     $ -     $ 336     $ 336    
Health Care     426       -       (4,500 )     4,250       -       -       176    
    $ 426     $ -     $ (4,500 )   $ 4,250     $ -     $ 336     $ 512    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 inputs during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $4,250. This amount is included in net change in unrealized appreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


31


Columbia Acorn International

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Asia  
> Japan  
Icom     213,700       312,000    
Makita     430,000       590,000    
Torishima Pump Manufacturing     339,100       633,800    
> China  
China Communication Services     0       24,952,000    
Shandong Weigao     5,018,500       6,000,000    
Sino Ocean Land     0       15,782,000    
Zhaojin Mining Industry     0       11,764,400    
> India  
Jain Irrigation Systems     1,868,376       2,000,000    
Patel Engineering     878,824       1,271,000    
> Taiwan  
Everlight Electronics     8,704,793       9,297,575    
Simplo Technology     4,020,500       5,693,500    
Yuanta Financial Holdings     45,000,000       55,734,000    
Europe  
> United Kingdom  
Chemring     400,000       580,000    
Cobham     4,950,000       6,800,000    
N Brown Group     3,150,000       3,465,000    
Schroders     1,350,000       1,466,000    
Serco     6,100,000       6,500,000    
Spice Group     0       4,722,884    
> Netherlands  
Smit Internationale     244,969       339,146    
Vopak     474,600       520,100    
> France  
Eutelsat     437,000       583,000    
Hi-Media     730,000       966,229    
Saft     469,574       506,362    
Zodiac Aerospace     411,000       541,000    
> Germany  
Elringklinger     696,311       750,000    
Tognum     790,000       960,000    
Vossloh     200,000       245,000    
Wirecard     0       1,180,000    
> Switzerland  
Bank Sarasin & Cie     126,406       349,882    
> Sweden  
East Capital Explorer     750,000       982,742    
Sweco     3,235,000       3,887,000    
> Italy  
Ansaldo STS     0       1,029,000    
CIR     9,610,356       11,180,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Credito Emiliano     2,639,000       3,069,000    
Terna     0       5,246,000    
> Ireland  
Paddy Power     300,300       448,000    
> Spain  
Red Electrica de Espana     532,000       573,000    
> Greece  
Intralot     3,427,000       3,725,000    
> Portugal  
Redes Energéticas Nacionais     0       3,909,580    
> Iceland  
Marel     22,568,604       29,868,604    
Other Countries  
> Canada  
Baytex     0       432,900    
Pan Orient     517,100       1,480,610    
> United States  
Bristow     300,000       391,000    
> Australia  
Australian Stock Exchange     550,000       700,000    
SAI Global     0       460,092    
Seek     0       731,000    
United Group     965,000       2,068,000    

 

See accompanying notes to financial statements.


32


    Number of Shares  
    09/30/09   12/31/09  
Sales  
Asia  
> Japan  
Aeon Mall     1,146,300       955,500    
Asics     2,143,500       1,905,500    
Benesse     398,900       306,900    
Point     519,570       478,570    
Unicharm PetCare     390,300       336,300    
> China  
China Shipping Development     7,891,000       0    
RexLot Holdings     250,000,000       240,000,000    
> Singapore  
Mapletree Logistics Trust     77,000,000       70,000,000    
> Taiwan  
President Chain Store     11,353,184       0    
> Hong Kong  
Hong Kong Exchanges
and Clearing		     2,700,000       2,500,000    
NagaCorp     73,217,756       29,595,256    
Europe  
> United Kingdom  
Intermediate Capital     864,000       0    
Randgold Resources - ADR     212,000       0    
> Netherlands  
Aalberts Industries     2,005,935       1,750,935    
> France  
Iliad     246,000       0    
SES     944,000       759,000    
> Germany  
Wincor Nixdorf     524,000       335,000    
> Sweden  
Hexagon     3,944,000       3,756,000    
Nobia     4,572,226       3,362,226    
> Ireland  
Aryzta     600,000       330,000    
Other Countries  
> United States  
Illumina     300,000       0    
Latin America  
> Mexico  
Urbi Desarrollos Urbanos     18,000,000       15,000,000    

 

See accompanying notes to financial statements.


33


Columbia Acorn International

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 95.6%    
Asia 38.7%      
    > Japan 15.3%  
  6,550,000     Kansai Paint   $ 54,386    
        Paint Producer in Japan, India, China &
Southeast Asia 		       
  31,500     Jupiter Telecommunications     31,208    
        Largest Cable Service Provider in Japan        
  12,500     Nippon Residential Investment (a)     30,372    
        Residential REIT        
  478,570     Point     26,719    
        Apparel Specialty Retailer        
  4,800     Orix JREIT     23,856    
        Diversified REIT        
  3,283,000     Kamigumi     23,855    
        Port Cargo Handling & Logistics        
  2,027,000     Rohto Pharmaceutical     23,331    
        Health & Beauty Products        
  640,000     Ibiden     22,793    
        Electronic Parts & Ceramics        
  1,016,000     Glory     22,468    
        Currency Handling Systems &
Related Equipment		        
  1,544,000     Aeon Delight     21,854    
        Facility Maintenance & Management        
  11,000     Seven Bank     21,847    
        ATM Processing Services        
  4,300     Osaka Securities Exchange     20,389    
        Osaka Securities Exchange        
  3,860     Nippon Accommodations Fund     20,121    
        Residential REIT        
  590,000     Makita     20,075    
        Power Tools        
  737,000     Kintetsu World Express     19,112    
        Airfreight Logistics        
  955,500     Aeon Mall     18,490    
        Suburban Shopping Mall Developer,
Owner & Operator		        
  1,905,500     Asics     17,060    
        Footwear & Apparel        
  7,500     Wacom     16,235    
        Computer Graphic Illustration Devices        
  3,050     Fukuoka     15,912    
        Diversified REIT in Fukuoka        
  787,200     Daiseki     15,850    
        Waste Disposal & Recycling        
  950,000     Ushio     15,815    
        Industrial Light Sources        
  643,000     Ain Pharmaciez     15,427    
        Dispensing Pharmacy/Drugstore Operator        
  480,000     Olympus     15,423    
        Medical Equipment (Endoscopes) & Cameras        
  193,000     Nakanishi     15,336    
        Dental Tools & Machinery        
  1,750,000     Suruga Bank     15,180    
        Regional Bank        
  587,800     Miura     14,838    
        Industrial Boiler        

 

Number of Shares     Value (000)  
  580,000     Hamamatsu Photonics   $ 14,008    
        Optical Sensors for Medical &
Industrial Applications		        
  633,800     Torishima Pump Manufacturing     13,701    
        Industrial Pump for Power Generation &
Water Supply Systems		        
  306,900     Benesse     12,834    
        Education Service Provider        
  345,000     Tsumura     11,112    
        Traditional Chinese/Japanese Herbal Rx
Drugs (Kampo)		        
  3,100,000     Chuo Mitsui Trust Holdings     10,346    
        Trust Bank        
  336,300     Unicharm PetCare     10,285    
        Pet Food & Pet Toiletries        
  2,470     Kakaku.com     9,590    
        Online Price Comparison Services for Consumers        
  822,000     Zenrin     9,478    
        Map Content Publisher        
  785,000     Tamron     7,928    
        Camera Lens Maker        
  312,000     Icom     6,690    
        Two Way Radio Communication Equipment        
  116,300     Toyo Tanso     5,604    
        Carbon & Graphite Products for Industrial Use        
  2,349     Start Today     4,278    
        Online Apparel Mall        
  208,900     As One     3,642    
        Scientific Supplies Distributor        
      677,448    
    > China 5.8%  
  10,107,000     China Yurun Food     29,827    
        Meat Processor in China        
  382,000     New Oriental Education &
Technology - ADR (b)(c)		     28,883    
        China's Largest Private Education
Service Provider		        
  31,987,000     Jiangsu Expressway     28,457    
        Chinese Toll Road Operator        
  29,166,400     China Green     27,607    
        Chinese Fruit & Vegetable Grower & Processor        
  240,000,000     RexLot Holdings     26,792    
        Lottery Equipment Supplier in China        
  703,800     Mindray - ADR (c)     23,873    
        Medical Device Manufacturer        
  11,764,400     Zhaojin Mining Industry     23,204    
        Gold Mining & Refining in China        
  6,000,000     Shandong Weigao     19,927    
        Vertically Integrated Hospital
Consumable Manufacturer		        
  15,782,000     Sino Ocean Land     14,455    
        Property Developer in China        
  12,316,000     Wasion Group     12,744    
        Electronic Power Meter Total Solution Provider        
  24,952,000     China Communication Services     12,203    
        China's Telecom Infrastructure Service Provider        
  1,000,000     VisionChina Media - ADR (b)     10,920    
        Advertising on Digital Screens in China's
Mass Transit System		        

 

See accompanying notes to financial statements.


34


Number of Shares     Value (000)  
    > China—continued  
  15,300,000     Fu Ji Food & Catering Services (b)(d)   $ 158    
        Food Catering Service Provider in China        
      259,050    
    > Singapore 4.9%  
  35,000,000     Olam International     65,547    
        Agriculture Supply Chain Manager        
  7,000,000     Singapore Exchange     41,263    
        Singapore Equity & Derivatives
Market Operator		        
  70,000,000     Mapletree Logistics Trust     39,008    
        Asian Logistics Landlord        
  30,000,000     CDL Hospitality Trust     36,903    
        Hotel Owner/Operator        
  21,000,000     Ascendas REIT     32,887    
        Singapore Industrial Property Landlord        
      215,608    
    > India 3.8%  
  1,008,727     Asian Paints     38,681    
        India's Largest Paint Company        
  2,000,000     Jain Irrigation Systems     37,580    
        Agricultural Micro-irrigation Systems &
Food Processing		        
  450,000     Housing Development Finance     25,935    
        Indian Mortgage Lender        
  2,135,000     Shriram Transport Finance     22,132    
        Truck Financing in India        
  1,570,000     Mundra Port & Special Economic Zone     18,568    
        Indian West Coast Shipping Port        
  900,000     Educomp Solutions     13,690    
        Multimedia Educational Content        
  1,271,000     Patel Engineering     12,207    
        Civil Engineering & Construction        
      168,793    
    > South Korea 3.3%  
  245,000     NHN (b)     40,456    
        South Korea's Largest Online Search Engine        
  182,000     MegaStudy     37,291    
        Online Education Service Provider        
  909,000     Woongjin Coway     29,970    
        South Korean Household Appliance Rental
Service Provider		        
  376,000     Mirae Asset Securities     20,891    
        South Korean Largest Diversified
Financial Company		        
  298,000     Taewoong     19,069    
        Niche Custom Forging        
      147,677    
    > Taiwan 2.9%  
  55,734,000     Yuanta Financial Holdings     40,621    
        Financial Holding Company in Taiwan        
  9,297,575     Everlight Electronics     34,672    
        LED Packager        
  5,693,500     Simplo Technology     33,564    
        World's Largest Notebook Battery Pack Supplier        
  1,454,200     Formosa International Hotels     18,636    
        Hotel, Food & Beverage Operation &
Hospitality Management Services		        
      127,493    

 

Number of Shares     Value (000)  
    > Hong Kong 2.0%  
  2,500,000     Hong Kong Exchanges and Clearing   $ 44,506    
        Hong Kong Equity & Derivatives
Market Operator		        
  22,154,200     Lifestyle International     41,092    
        Mid to High-end Department Store
Operator in Hong Kong & China		        
  29,595,256     NagaCorp     3,269    
        Casino/Entertainment Complex in Cambodia        
      88,867    
    > Indonesia 0.7%  
  75,000,000     Perusahaan Gas Negara     30,975    
        Gas Distributor & Pipeline Operator        
      30,975    
Asia: Total     1,715,911    
Europe 36.9%      
    > United Kingdom 6.9%  
  6,500,000     Serco     55,261    
        Facilities Management        
  3,300,000     Capita Group     39,804    
        White Collar, Back Office Outsourcing        
  1,890,000     Intertek Group     38,055    
        Testing, Inspection & Certification Services        
  1,466,000     Schroders     31,293    
        United Kingdom Top Tier Asset Manager        
  6,800,000     Cobham     27,410    
        Aerospace Components        
  580,000     Chemring     27,293    
        Defense Manufacturer of
Countermeasures & Energetics		        
  4,600,000     RPS Group     15,996    
        Environmental Consulting & Planning        
  690,000     Tullow Oil     14,389    
        Oil & Gas Producer        
  3,465,000     N Brown Group     13,770    
        Home Shopping Women's Clothes Retailer        
  682,000     Rotork     13,053    
        Valve Actuators for Oil & Water Pipelines        
  1,250,000     Smith & Nephew     12,835    
        Medical Equipment & Supplies        
  1,110,000     Keller Group     11,477    
        Ground Engineering        
  4,722,884     Spice Group     4,611    
        United Kingdom Utility Outsourcing        
      305,247    
    > Netherlands 6.8%  
  1,871,250     Imtech     50,216    
        Electromechanical & ICT
Installation & Maintenance		        
  735,945     Fugro     42,028    
        Sub-sea Oilfield Services        
  520,100     Vopak     41,091    
        World's Largest Operator of Petroleum &
Chemical Storage Terminals		        
  1,372,989     Koninklijke TenCate (a)     36,081    
        Advanced Textiles & Industrial Fabrics        

 

See accompanying notes to financial statements.


35


Columbia Acorn International

Statement of Investments, continued

Number of Shares     Value (000)  
    > Netherlands—continued  
  1,385,000     Unit 4 Agresso (a)(b)   $ 32,644    
        Business Software Development        
  339,146     Smit Internationale     29,195    
        Harbor & Offshore Towage & Marine Services        
  1,750,935     Aalberts Industries     25,015    
        Flow Control & Heat Treatment        
  1,088,187     Arcadis     24,480    
        Engineering Consultants        
  650,000     QIAGEN (b)     14,520    
        Life Science Tools & Molecular Diagnostics        
  62,000     Core Laboratories     7,323    
        Oil & Gas Reservoir Consulting        
      302,593    
    > France 4.4%  
  328,000     Neopost     27,100    
        Postage Meter Machines        
  506,362     Saft     24,392    
        Niche Battery Manufacturer        
  541,000     Zodiac Aerospace     22,577    
        Leading Supplier to the Aerospace Industry        
  271,000     Pierre & Vacances     20,888    
        Vacation Apartment Lets        
  531,176     Carbone Lorraine     19,149    
        Advanced Industrial Materials        
  583,000     Eutelsat     18,705    
        Fixed Satellite Services        
  759,000     SES     17,019    
        Fixed Satellite Services        
  170,000     Rubis     14,911    
        Tank Storage & Liquefied Petroleum
Gas Distribution		        
  259,664     Eurofins Scientific     14,126    
        Food, Pharmaceuticals & Materials
Screening & Testing		        
  160,701     Norbert Dentressangle     8,780    
        Leading European Logistics & Transport Group        
  966,229     Hi-Media (b)     6,768    
        Online Advertiser in Europe        
      194,415    
    > Germany 4.3%  
  700,000     CTS Eventim     34,175    
        Event Ticket Sales        
  245,000     Vossloh     24,408    
        Rail Infrastructure & Diesel Locomotives        
  335,000     Wincor Nixdorf     22,851    
        Retail POS Systems & ATM Machines        
  127,000     Rational     21,514    
        Commercial Oven Manufacturer        
  850,000     Rhoen-Klinikum     20,790    
        Health Care Services        
  750,000     Elringklinger     17,515    
        Automobile Components        
  1,180,000     Wirecard     16,223    
        Online Payment Processing & Risk Management        
  960,000     Tognum     15,927    
        Diesel Engines for Drive & Power
Generation Systems		        

 

Number of Shares     Value (000)  
  354,500     Deutsche Beteiligungs   $ 8,686    
        Private Equity Investment Management        
  700,000     Takkt     7,181    
        Mail Order Retailer of Office &
Warehouse Durables		        
      189,270    
    > Switzerland 2.7%  
  185,000     Geberit     32,770    
        Plumbing Supplies        
  20,500     Sika     31,891    
        Chemicals for Construction &
Industrial Applications		        
  275,000     Kuehne & Nagel     26,602    
        Freight Forwarding/Logistics        
  85,000     Burckhardt Compression     15,212    
        Manufactures & Services Compressors        
  349,882     Bank Sarasin & Cie (b)     13,223    
        Private Banking        
      119,698    
    > Sweden 2.6%  
  3,756,000     Hexagon     55,174    
        Measurement Equipment        
  3,887,000     Sweco     29,084    
        Engineering Consultants        
  3,362,226     Nobia (b)     19,704    
        Kitchen Cabinet Manufacturing & Sales        
  982,742     East Capital Explorer (b)     9,180    
        Sweden-based RUS/CEE Investment Fund        
      113,142    
    > Italy 2.1%  
  11,180,000     CIR (b)     28,868    
        Italian Holding Company        
  3,069,000     Credito Emiliano (b)     23,556    
        Italian Regional Bank        
  5,246,000     Terna     22,572    
        Italian Power Transmission        
  1,029,000     Ansaldo STS     19,525    
        Leading Systems Integrator for the
Railway Industry		        
      94,521    
    > Finland 2.0%  
  1,382,777     Stockmann     37,680    
        Department Store & Fashion Retailer in
Scandinavia & Russia		        
  1,756,000     Poyry     28,127    
        Engineering Consultants        
  2,170,000     Ramirent (b)     21,155    
        Largest Equipment Rental Company in
Scandinavia & Central Eastern Europe		        
      86,962    
    > Ireland 1.2%  
  8,100,000     United Drug     24,715    
        Irish Pharmaceutical Wholesaler & Outsourcer        
  448,000     Paddy Power     15,877    
        Irish Betting Services        
  330,000     Aryzta     12,091    
        Baked Goods        
      52,683    

 

See accompanying notes to financial statements.


36


Number of Shares     Value (000)  
    > Spain 0.9%  
  573,000     Red Electrica de Espana   $ 31,757    
        Spanish Power Transmission        
  1,546,000     ENCE (b)     5,968    
        Europe's Leading Eucalyptus Pulp Maker        
      37,725    
    > Denmark 0.7%  
  306,000     Novozymes     31,729    
        Industrial Enzymes        
      31,729    
    > Poland 0.6%  
  975,900     Central European Distribution (b)     27,725    
        Vodka Production & Spirits Distribution        
      27,725    
    > Czech Republic 0.5%  
  114,000     Komercni Banka     24,302    
        Leading Czech Universal Bank        
      24,302    
    > Greece 0.5%  
  3,725,000     Intralot     21,654    
        Lottery & Gaming Systems & Services        
      21,654    
    > Portugal 0.4%  
  3,909,580     Redes Energéticas Nacionais     16,794    
        Portuguese Power Transmission &
Gas Transportation		        
      16,794    
    > Iceland 0.3%  
  29,868,604     Marel (b)     14,881    
        Largest Manufacturer of Poultry &
Fish Processing Equipment		        
      14,881    
Europe: Total     1,633,341    
Other Countries 14.4%      
    > Canada 4.2%  
  3,927,000     Eldorado Gold (b)     56,022    
        Gold Miner in Turkey, Greece,
China & Brazil		        
  1,710,000     ShawCor     47,988    
        Oil & Gas Pipeline Products        
  1,117,000     CCL Industries     30,172    
        Leading Global Label Manufacturer        
  850,000     Ivanhoe Mines (b)     12,606    
  744,000     Ivanhoe Mines (b)(e)     10,870    
        Copper Mine Project in Mongolia        
  432,900     Baytex     12,293    
        Oil & Gas Producer in Canada        
  1,480,610     Pan Orient (b)     10,759    
        Growth Oriented & Return Focused
Asian Explorer		        
  2,262,100     Horizon North Logistics (b)     3,569    
        Provides Diversified Oil Service Offering in
Northern Canada		        
      184,279    

 

Number of Shares     Value (000)  
    > United States 3.9%  
  1,340,000     Atwood Oceanics (b)   $ 48,039    
        Offshore Drilling Contractor        
  625,000     Alexion Pharmaceuticals (b)     30,513    
        Biotech Focused on Orphan Diseases        
  346,000     Oceaneering International (b)     20,248    
        Provider of Sub-sea Services &
Manufactured Products		        
  660,000     World Fuel Services     17,681    
        Global Fuel Broker        
  391,000     Bristow (b)     15,034    
        Largest Provider of Helicopter Services to
Offshore Oil & Gas Producers		        
  251,000     FMC Technologies (b)     14,518    
        Oil & Gas Wellhead Manufacturer        
  725,000     BioMarin (b)     13,637    
        Biotech Focused on Orphan Diseases        
  430,000     Ritchie Brothers Auctioneers (c)     9,645    
        Heavy Equipment Auctioneer        
  324,000     Tesco (b)     4,183    
        Developing New Well Drilling Technologies        
      173,498    
    > Australia 2.6%  
  2,068,000     United Group     26,333    
        Engineering & Facilities Management        
  700,000     Perpetual Trustees     23,103    
        Mutual Fund Management        
  700,000     Australian Stock Exchange     21,801    
        Australian Equity & Derivatives
Market Operator		        
  2,000,000     Billabong International     19,444    
        Action Sports Apparel Brand Manager        
  262,000     Cochlear     16,178    
        Cochlear Implants for Hearing        
  731,000     Seek     4,492    
        Online Job Listing & Education        
  460,092     SAI Global     1,655    
        Publishing, Certification & Compliance Services        
  555,740     Hastie Group     938    
        Mechanical, Electrical & Hydraulic
(MEH) Engineering		        
      113,944    
    > South Africa 2.5%  
  1,973,000     Naspers     80,067    
        Media in Africa & Other Emerging Markets        
  4,600,000     Mr. Price     21,734    
        South African Retailer of Apparel,
Household & Sporting Goods		        
  3,049,000     Uranium One (b)     8,804    
        Uranium Mines in Kazakhstan, the
U.S. & Australia		        
      110,605    
    > Israel 0.8%  
  2,890,000     Israel Chemicals     37,734    
        Producer of Potash, Phosphates, Bromine &
Specialty Chemicals		        
      37,734    

 

See accompanying notes to financial statements.


37


Columbia Acorn International

Statement of Investments, continued

Number of Shares
or Principal Amount (000)		     Value (000)  
    > Kazakhstan 0.4%  
  1,770,000     Halyk Savings Bank of
Kazakhstan - GDR (b)		   $ 16,798    
        Largest Retail Bank & Insurer
in Kazakhstan		        
      16,798    
Other Countries: Total     636,858    
Latin America 5.6%      
    > Brazil 3.3%  
  5,000,000     Localiza Rent A Car     55,184    
        Car Rental        
  4,300,000     Suzano     50,075    
        Brazilian Pulp & Paper Producer        
  2,000,000     Natura     41,679    
        Direct Retailer of Cosmetics        
      146,938    
    > Mexico 1.6%  
  700,000     Grupo Aeroportuario del
Sureste - ADR		     36,267    
        Mexican Airport Operator        
  15,000,000     Urbi Desarrollos Urbanos (b)     33,825    
        Affordable Housing Builder        
      70,092    
    > Chile 0.7%  
  862,000     Sociedad Quimica y Minera de
Chile - ADR		     32,385    
        Producer of Specialty Fertilizers,
Lithium & Iodine		        
      32,385    
Latin America: Total     249,415    
Total Equities: 95.6%
(Cost: $3,179,286)		     4,235,525    
Securities Lending Collateral: 0.6%      
  26,644,150     Dreyfus Government Cash
Management Fund
(7 day yield of 0.000%) (f)		     26,644    
Total Securities Lending Collateral:
(Cost: $26,644)		     26,644    
Short-Term Obligations: 3.5%      
    > Repurchase Agreement 3.0%  
$ 131,378     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by
a U.S. Treasury obligation,
maturing 3/18/10,
market value $134,007
(repurchase proceeds $131,378)		     131,378    
      131,378    

 

Principal Amount (000)     Value (000)  
    > Commercial Paper 0.5%  
$ 21,900     Toyota Motor Credit
0.16% due 1/04/10		   $ 21,900    
      21,900    
Total Short-Term Obligations:
(Amortized Cost: $153,278)		     153,278    
Total Investments: 99.7%
(Cost: $3,359,208)(g)(h)		     4,415,447    
Obligation to Return Collateral for
Securities Loaned: (0.6)%		     (26,644 )  
Cash and Other Assets Less Liabilities: 0.9%     41,935    
Total Net Assets: 100.0%   $ 4,430,738    

 

ADR = American Depositary Receipts.

GDR = Global Depositary Receipts.

See accompanying notes to financial statements.


38


> Notes to Statements of Investments (dollar values in thousands)

(a)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
Ain Pharmaciez*     643,000       -       -       643,000     $ 15,427     $ 185    
Koninklijke TenCate     1,556,239       78,456 **     261,706       1,372,989       36,081       725    
Nippon Residential Investment     5,200       7,300       -       12,500       30,372       2,090    
Unit 4 Aggresso     1,385,000       -       -       1,385,000       32,644       -    
Total of Affiliated Transactions     3,589,439       85,756       261,706       3,413,489     $ 114,524     $ 3,000    

 

*  At December 31, 2009, the Fund owned less than five percent of the company's outstanding voting shares.

**  Includes the effect of a 2:1 stock split.

  The aggregate cost and value of these companies at December 31, 2009, were $77,410 and $114,524, respectively. Investments in affiliated companies represented 2.6% of total net assets at December 31, 2009.

(b)  Non-income producing security.

(c)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $25,743.

(d)  Illiquid security.

(e)  Security is traded on a U.S. exchange.

(f)  Investment made with cash collateral received from securities lending activity.

(g)  At December 31, 2009, for federal income tax purposes, the cost of investments was $3,397,978 and net unrealized apppreciation was $1,017,469, consisting of gross unrealized appreciation of $1,265,386 and gross unrealized depreciation of $247,917.

(h)  On December 31, 2009, the Fund's total investments were denominated in currencies as follows:

Currency   Value   Percentage
of Net Assets		  
Euro   $ 989,294       22.3    
Japanese Yen     677,448       15.3    
U.S. Dollar     548,464       12.4    
British Pound     305,247       6.9    
Hong Kong Dollar     284,241       6.4    
Other currencies less
than 5% of total net assets		     1,610,753       36.4    
    $ 4,415,447       99.7    

 

See accompanying notes to financial statements.


39


Columbia Acorn International

Statement of Investments, continued

> Notes to Statements of Investments (dollar values in thousands)

  At December 31, 2009, the Fund had entered into the following forward foreign currency exchange contracts:

Forward Foreign Currency
Exchange Contracts to Sell		   Forward Foreign Currency
Exchange Contracts to Buy		   Principal Amount in
Foreign Currency		   Principal
Amount in U.S. Dollar		   Settlement Date   Unrealized
Appreciation		  
USD   CAD       26,337     $ 25,000     2/12/10   $ 183    
USD   CAD     26,474       25,000     3/15/10     313    
EUR   USD     43,638       65,000     1/15/10     2,443    
EUR   USD     43,678       65,000     2/12/10     2,389    
EUR   USD     44,397       65,000     3/15/10     1,361    
            $ 245,000         $ 6,689    
Forward Foreign Currency
Exchange Contracts to Buy		   Forward Foreign Currency
Exchange Contracts to Sell		   Principal Amount in
Foreign Currency		   Principal
Amount in U.S. Dollar		   Settlement Date   Unrealized
(Depreciation)		  
AUD   USD       16,544     $ 15,000     1/15/10   $ (155 )  
AUD   USD     16,324       15,000     2/12/10     (393 )  
AUD   USD     16,531       15,000     3/15/10     (256 )  
CAD   USD     25,674       25,000     1/15/10     (452 )  
JPY   USD     2,234,275       25,000     1/15/10     (1,009 )  
JPY   USD     2,259,250       25,000     2/12/10     (737 )  
JPY   USD     2,215,575       25,000     3/15/10     (1,203 )  
            $ 145,000         $ (4,205 )  

 

The counterparty for all forward foreign currency exchange contracts is State Street Bank and Trust Company.

AUD = Australian Dollar

CAD = Canadian Dollar

EUR = Euro

JPY = Japanese Yen

USD = United States Dollar

The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Asia   $ 63,676     $ 1,652,077     $ 158     $ 1,715,911    
Europe     35,048       1,598,293       -       1,633,341    
Other Countries     366,581       270,277       -       636,858    
Latin America     102,477       146,938       -       249,415    
Total Equities     567,782       3,667,585       158       4,235,525    
Total Securities Lending Collateral     26,644       -       -       26,644    
Total Short-Term Obligations     -       153,278       -       153,278    
Total Investments   $ 594,426     $ 3,820,863     $ 158     $ 4,415,447    
Net Unrealized Appreciation on Forward Foreign
Currency Exchange Contracts		     -       6,689       -       6,689    
Net Unrealized Depreciation on Forward Foreign
Currency Exchange Contracts		     -       (4,205 )     -       (4,205 )  
Total   $ 594,426     $ 3,823,347     $ 158     $ 4,417,931    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

See accompanying notes to financial statements.


40


> Notes to Statements of Investments (dollar values in thousands)

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Asia   $ 312     $ -     $ -     $ (13,049 )   $ -     $ 12,895     $ 158    
    $ 312     $ -     $ -     $ (13,049 )   $ -     $ 12,895     $ 158    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 inputs during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(13,049). This amount is included in net change in unrealized appreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


41


Columbia Acorn International

Portfolio Diversification

At December 31, 2009, the Fund's portfolio investments as a percent of net assets were diversified as follows:

    Value (000)   Percentage
of Net Assets		  
> Industrial Goods & Services  
Other Industrial Services   $ 378,257       8.5    
Industrial Materials &
Specialty Chemicals		     306,733       6.9    
Machinery     272,568       6.2    
Outsourcing Services     165,223       3.7    
Electrical Components     100,514       2.3    
Conglomerates     76,676       1.7    
Construction     66,099       1.5    
Industrial Distribution     3,642       0.1    
      1,369,712       30.9    
> Consumer Goods & Services  
Nondurables     105,466       2.4    
Retail     100,417       2.3    
Educational Services     79,008       1.8    
Travel     76,072       1.7    
Apparel     74,184       1.7    
Other Consumer Services     71,062       1.6    
Food & Beverage     69,684       1.6    
Casinos & Gaming     67,592       1.5    
Other Entertainment     52,811       1.2    
Consumer Goods Distribution     27,725       0.6    
Furniture & Textiles     19,704       0.4    
Consumer Electronics     7,928       0.2    
      751,653       17.0    
> Information  
Financial Processors     101,992       2.3    
TV Broadcasting     80,067       1.8    
Computer Hardware &
Related Equipment		     72,650       1.6    
Instrumentation     69,182       1.6    
Internet Related     54,538       1.2    
Satellite Broadcasting & Services     35,724       0.8    
Semiconductors &
Related Equipment		     34,672       0.8    
Business Software     32,644       0.7    
CATV     31,208       0.7    
Publishing     23,168       0.5    
Advertising     17,688       0.4    
Business Information &
Marketing Services		     15,996       0.4    
Telecommunications Equipment     12,203       0.3    
Mobile Communications     6,690       0.2    
      588,422       13.3    
> Energy & Minerals  
Oil Services     195,606       4.4    
Mining     118,830       2.7    
Oil Refining, Marketing &
Distribution		     86,977       2.0    

 

    Value (000)   Percentage
of Net Assets		  
Agricultural Commodities   $ 50,075       1.1    
Oil & Gas Producers     37,442       0.9    
Other Resources     5,968       0.1    
      494,898       11.2    
> Other Industries  
Real Estate     247,339       5.6    
Transportation     144,236       3.2    
Regulated Utilities     71,123       1.6    
      462,698       10.4    
> Finance  
Brokerage & Money Management     168,798       3.8    
Banks     112,029       2.5    
Finance Companies     42,521       1.0    
Savings & Loans     25,935       0.6    
      349,283       7.9    
> Health Care  
Medical Equipment & Devices     134,085       3.0    
Pharmaceuticals     35,827       0.8    
Health Care Services     20,790       0.5    
Medical Supplies     14,520       0.3    
Biotechnology & Drug Delivery     13,637       0.3    
      218,859       4.9    
Total Equities:     4,235,525       95.6    
Securities Lending
Collateral:		     26,644       0.6    
Short-Term Obligations:     153,278       3.5    
Total Investments:     4,415,447       99.7    
Obligation to Return
Collateral for
Securities Loaned:		     (26,644 )     (0.6 )  
Cash and Other Assets
Less Liabilities:		     41,935       0.9    
Net Assets:   $ 4,430,738       100.0    

 

See accompanying notes to financial statements.


42



Columbia Acorn USA

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Information  
AboveNet     0       45,000    
Blue Coat Systems     210,100       389,100    
ExlService Holdings     0       248,698    
Monolithic Power Systems     340,000       500,000    
PAETEC Holding     1,591,800       2,250,000    
Plexus     115,000       165,000    
Supertex     189,296       287,000    
Consumer Goods & Services  
Abercrombie & Fitch     281,000       431,000    
Diamond Foods     0       97,814    
Lifetime Fitness     110,000       182,000    
Vail Resorts     150,000       220,000    
Industrial Goods & Services  
GrafTech International     200,000       540,000    
Pentair     500,000       585,000    
Energy & Minerals  
Atwood Oceanics     720,000       755,000    
Bristow     0       105,000    
Health Care  
Acorda Therapeutics     0       199,000    
Allos Therapeutics     341,000       565,000    
Gen-Probe     0       46,500    
Mednax     0       45,000    
Nanosphere     0       199,720    

 

    Number of Shares  
    09/30/09   12/31/09  
Sales  
Information  
Amphenol     295,600       285,600    
Cogent Communications     840,000       444,800    
Concur Technologies     223,000       158,000    
Micros Systems     695,100       620,000    
Polycom     525,000       480,000    
Switch & Data Facilities     947,000       510,000    
Consumer Goods & Services  
Hot Topic     497,714       0    
Jarden     298,000       154,000    
Industrial Goods & Services  
Greif     50,000       0    
Mine Safety Appliances     155,000       77,000    
Quanta Services     350,000       110,000    
Energy & Minerals  
FMC Technologies     598,400       500,000    
Oceaneering International     130,111       95,000    
Health Care  
Cephalon     125,000       56,000    
Charles River Laboratories     67,000       0    
Emdeon     148,000       0    
Human Genome Sciences     335,000       298,000    
InterMune     187,000       127,800    
Luminex     205,000       0    
Myriad Genetics     153,466       113,466    
Nektar Therapeutics     500,000       357,000    
Onyx Pharmaceuticals     75,000       0    
Poniard     290,184       0    
Psychiatric Solutions     287,000       170,000    
Other Industries  
Heartland Express     524,720       344,720    

 

See accompanying notes to financial statements.


43


Columbia Acorn USA

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 99.7%    
Information 35.4%      
    > Business Software 7.7%  
  1,155,000     Informatica (a)   $ 29,868    
        Enterprise Data Integration Software        
  620,000     Micros Systems (a)     19,239    
        Information Systems for Restaurants & Hotels        
  375,000     ANSYS (a)     16,297    
        Simulation Software for Engineers & Designers        
  525,000     Blackbaud     12,406    
        Software & Services for Non-profits        
  2,100,000     Novell (a)     8,715    
        Directory, Operating System & Identity
Management Software		        
  158,000     Concur Technologies (a)     6,755    
        Web Enabled Cost & Expense
Management Software		        
  240,000     NetSuite (a)(b)     3,835    
        End to End IT Systems Solutions Delivered
Over the Web		        
  57,000     Quality Systems     3,578    
        IT Systems for Medical Groups &
Ambulatory Care Centers		        
  108,213     Tyler Technologies (a)     2,155    
        Financial, Tax, Court & Document
Management Systems for Government		        
  307,352     Art Technology Group (a)     1,386    
        Software & Tools to Optimize Websites
for E-commerce		        
  100,000     Avid Technology (a)     1,276    
        Digital Nonlinear Editing Software & Systems        
  230,000     Actuate (a)     984    
        Information Delivery Software & Solutions        
  10,800     Blackboard (a)     490    
        Education Software        
      106,984    
    > Semiconductors &
Related Equipment 4.4%		  
  760,000     Microsemi (a)     13,490    
        Analog/Mixed-signal Semiconductors        
  500,000     Monolithic Power Systems (a)     11,985    
        High Performance Analog & Mixed-signal
Integrated Circuits (ICs)		        
  1,179,750     ON Semiconductor (a)     10,394    
        Mixed-signal & Power Management
Semiconductors		        
  287,000     Supertex (a)     8,553    
        Analog/Mixed-signal Semiconductors        
  1,168,000     Integrated Device Technology (a)     7,557    
        Communications Semiconductors        
  480,000     Pericom Semiconductor (a)     5,534    
        Interface Integrated Circuits (ICs) &
Frequency Control Products		        
  750,000     Entegris (a)     3,960    
        Semiconductor Materials Management Products        
      61,473    
    > Mobile Communications 3.8%  
  1,250,000     Crown Castle International (a)     48,800    
        Communications Towers        

 

Number of Shares     Value (000)  
  130,000     SBA Communications (a)   $ 4,441    
        Communications Towers        
  88,000     Globalstar (a)(b)     76    
        Satellite Mobile Voice & Data Carrier        
      53,317    
    > Telephone and Data Services 3.8%  
  2,061,000     tw telecom (a)     35,326    
        Fiber Optic Telephone/Data Services        
  2,250,000     PAETEC Holding (a)     9,337    
        Telephone/Data Services for Business        
  444,800     Cogent Communications (a)     4,386    
        Internet Data Pipelines        
  45,000     AboveNet (a)     2,927    
        Metropolitan Fiber Communications Services        
      51,976    
    > Instrumentation 3.4%  
  180,000     Mettler Toledo (a)     18,898    
        Laboratory Equipment        
  775,000     IPG Photonics (a)     12,973    
        Fiber Lasers        
  350,000     FLIR Systems (a)     11,452    
        Infrared Cameras        
  168,000     Trimble Navigation (a)     4,234    
        GPS-based Instruments        
      47,557    
    > Computer Hardware & Related
Equipment 3.3%		  
  505,000     II-VI (a)     16,059    
        Laser Optics & Specialty Materials        
  285,600     Amphenol     13,189    
        Electronic Connectors        
  280,000     Nice Systems - ADR (Israel) (a)     8,691    
        Audio & Video Recording Solutions        
  184,000     Zebra Technologies (a)     5,219    
        Bar Code Printers        
  135,000     Netgear (a)     2,928    
        Networking Products for Small Business & Home        
      46,086    
    > Telecommunications Equipment 2.3%  
  480,000     Polycom (a)     11,986    
        Video Conferencing Equipment        
  389,100     Blue Coat Systems (a)     11,105    
        WAN Acceleration & Network Security        
  335,000     CommScope (a)     8,887    
        Wireless Infrastructure Equipment & Telecom Cable        
      31,978    
    > Financial Processors 1.8%  
  463,000     Global Payments     24,937    
        Credit Card Processor        
      24,937    
    > Gaming Equipment & Services 1.7%  
  570,000     Bally Technologies (a)     23,535    
        Slot Machines & Software        
      23,535    

 

See accompanying notes to financial statements.


44


Number of Shares     Value (000)  
    > Computer Services 1.4%  
  395,000     SRA International (a)   $ 7,545    
        Government IT Services        
  248,698     ExlService Holdings (a)     4,516    
        Business Process Outsourcing        
  1,005,500     Hackett Group (a)     2,795    
        IT Integration & Best Practice Research        
  235,000     iGate     2,350    
        IT & Business Process Outsourcing Services        
  786,000     RCM Technologies (a)(c)     1,949    
        Technology & Engineering Services        
      19,155    
    > Internet Related 0.8%  
  510,000     Switch & Data Facilities (a)     10,307    
        Network Neutral Data Centers        
  381,740     TheStreet.com     916    
        Financial Information Websites        
      11,223    
    > Contract Manufacturing 0.3%  
  165,000     Plexus (a)     4,703    
        Electronic Manufacturing Services        
      4,703    
    > Radio 0.3%  
  511,100     Salem Communications (a)     3,062    
        Radio Stations for Religious Programming        
  705,500     Spanish Broadcasting System (a)     550    
        Spanish Language Radio Stations        
  18,750     Saga Communications (a)     235    
        Radio Stations in Small & Mid-sized Cities        
      3,847    
    > TV Broadcasting 0.3%  
  975,000     Entravision Communications (a)     3,315    
        Spanish Language TV & Radio Stations        
      3,315    
    > CATV 0.1%  
  335,000     Mediacom Communications (a)     1,498    
        Cable Television Franchises        
      1,498    
Information: Total     491,584    
Consumer Goods & Services 16.6%      
    > Retail 6.1%  
  431,000     Abercrombie & Fitch     15,021    
        Teen Apparel Retailer        
  402,000     Urban Outfitters (a)     14,066    
        Apparel & Home Specialty Retailer        
  281,000     J Crew Group (a)     12,572    
        Multi-channel Branded Retailer        
  390,000     lululemon athletica (a)     11,739    
        Premium Active Apparel Retailer        
  824,000     Chico's FAS (a)     11,577    
        Women's Specialty Retailer        
  875,000     Saks (a)     5,740    
        Luxury Department Store Retailer        
  480,000     Talbots (a)(b)     4,277    
        Women's Specialty Retailer        

 

Number of Shares     Value (000)  
  658,000     Charming Shoppes (a)   $ 4,257    
        Women's Specialty Plus Size Apparel Retailer        
  55,000     Gymboree (a)     2,392    
        Children's Apparel Specialty Retailer        
  165,000     AnnTaylor Stores (a)     2,251    
        Women's Apparel Retailer        
  17,100     Rue21 (a)     480    
        Fashion Value Apparel Retailer        
      84,372    
    > Travel 3.1%  
  750,000     Gaylord Entertainment (a)     14,813    
        Convention Hotels        
  797,750     Avis Budget Group (a)     10,466    
        Second Largest Car Rental Company        
  750,000     Hertz (a)     8,940    
        Largest U.S. Rental Car Operator        
  220,000     Vail Resorts (a)     8,316    
        Ski Resort Operator & Developer        
      42,535    
    > Educational Services 1.6%  
  192,000     ITT Educational Services (a)     18,424    
        Post-secondary Degree Services        
  165,000     Universal Technical Institute (a)     3,333    
        Vocational Training        
      21,757    
    > Furniture & Textiles 1.4%  
  980,000     Knoll     10,124    
        Office Furniture        
  285,000     Herman Miller     4,554    
        Office Furniture        
  540,000     Interface     4,487    
        Modular & Broadloom Carpet        
      19,165    
    > Apparel 1.0%  
  222,200     Coach     8,117    
        Designer & Retailer of Branded
Leather Accessories		        
  284,313     True Religion Apparel (a)     5,257    
        Premium Denim        
      13,374    
    > Other Durable Goods 0.8%  
  327,900     Cavco Industries (a)(c)     11,778    
        Manufactured Homes        
      11,778    
    > Consumer Goods Distribution 0.7%  
  523,500     Pool     9,988    
        Distributor of Swimming Pool
Supplies & Equipment		        
      9,988    
    > Food & Beverage 0.5%  
  97,814     Diamond Foods     3,476    
        Culinary Ingredients & Snack Foods        
  90,000     Hansen Natural (a)     3,456    
        Alternative Beverages        
      6,932    

 

See accompanying notes to financial statements.


45


Columbia Acorn USA

Statement of Investments, continued

Number of Shares     Value (000)  
    > Leisure Products 0.4%  
  180,000     Thor Industries   $ 5,652    
        RV & Bus Manufacturer        
      5,652    
    > Nondurables 0.3%  
  154,000     Jarden     4,760    
        Branded Household Products        
      4,760    
    > Other Consumer Services 0.3%  
  182,000     Lifetime Fitness (a)(b)     4,537    
        Sport & Fitness Club Operator        
      4,537    
    > Casinos & Gaming 0.3%  
  455,000     Pinnacle Entertainment (a)     4,086    
        Regional Casino Operator        
      4,086    
    > Restaurants 0.1%  
  40,000     P.F. Chang's China Bistro (a)(b)     1,517    
        Mandarin Style Restaurants        
      1,517    
Consumer Goods & Services: Total     230,453    
Industrial Goods & Services 13.3%      
    > Machinery 9.4%  
  627,500     Ametek     23,996    
        Aerospace/Industrial Instruments        
  373,600     Nordson     22,857    
        Dispensing Systems for Adhesives & Coatings        
  587,000     ESCO Technologies     21,044    
        Automatic Electric Meter Readers        
  445,000     Donaldson     18,930    
        Industrial Air Filtration        
  585,000     Pentair     18,895    
        Pumps & Water Treatment        
  235,000     Oshkosh     8,702    
        Specialty Truck Manufacturer        
  195,000     MOOG (a)     5,700    
        Motion Control Products for Aerospace,
Defense & Industrial Markets		        
  100,000     HEICO     3,596    
        FAA Approved Aircraft Replacement Parts        
  71,800     Toro     3,002    
        Turf Maintenance Equipment        
  77,000     Mine Safety Appliances     2,043    
        Safety Equipment        
  50,000     Kaydon     1,788    
        Specialized Friction & Motion Control Products        
      130,553    
    > Industrial Materials & Specialty
Chemicals 0.9%		  
  255,000     Drew Industries (a)     5,266    
        RV & Manufactured Home Components        
  150,000     Albany International     3,369    
        Paper Machine Clothing & Advanced Textiles        
  60,000     Albemarle     2,182    
        Refinery Catalysts & Other Specialty Chemicals        

 

Number of Shares     Value (000)  
  65,000     Koppers Holdings   $ 1,979    
        Integrated Provider of Carbon Compounds        
      12,796    
    > Steel 0.6%  
  540,000     GrafTech International (a)     8,397    
        Industrial Graphite Materials Producer        
      8,397    
    > Other Industrial Services 0.5%  
  265,000     TrueBlue (a)     3,925    
        Temporary Manual Labor        
  396,000     American Reprographics (a)     2,776    
        Document Management & Logistics        
      6,701    
    > Industrial Distribution 0.4%  
  350,000     Interline Brands (a)     6,044    
        Industrial Distribution        
      6,044    
    > Electrical Components 0.4%  
  145,000     Acuity Brands     5,168    
        Commercial Lighting Fixtures        
      5,168    
    > Construction 0.4%  
  240,000     M/I Homes (a)     2,494    
        Columbus-based Home Builder        
  110,000     Ritchie Brothers Auctioneers (b)     2,467    
        Heavy Equipment Auctioneer        
      4,961    
    > Waste Management 0.3%  
  130,000     Waste Connections (a)     4,334    
        Solid Waste Management        
      4,334    
    > Water 0.2%  
  550,000     Mueller Water Products     2,860    
        Fire Hydrants, Valves & Ductile Iron Pipes        
      2,860    
    > Outsourcing Services 0.2%  
  110,000     Quanta Services (a)     2,292    
        Electrical & Telecom Construction Services        
      2,292    
Industrial Goods & Services: Total     184,106    
Finance 12.5%      
    > Finance Companies 5.1%  
  1,136,500     AmeriCredit (a)     21,639    
        Auto Lending        
  407,900     World Acceptance (a)     14,615    
        Personal Loans        
  365,000     GATX     10,494    
        Rail Car Lessor        
  345,000     McGrath Rentcorp     7,714    
        Temporary Space & IT Rentals        
  275,000     Aaron's (b)     7,626    
        Rent to Own        
  625,000     H&E Equipment Services (a)     6,556    
        Heavy Equipment Leasing        

 

See accompanying notes to financial statements.


46


Number of Shares     Value (000)  
    > Finance Companies—continued  
  230,000     CAI International (a)   $ 2,077    
        International Container Leasing        
  99,200     Marlin Business Services (a)     786    
        Small Equipment Leasing        
      71,507    
    > Banks 4.4%  
  935,182     Valley National Bancorp (b)     13,214    
        New Jersey/New York Bank        
  492,125     MB Financial     9,705    
        Chicago Bank        
  659,800     TCF Financial     8,986    
        Great Lakes Bank        
  403,788     Lakeland Financial     6,965    
        Indiana Bank        
  508,000     Pacific Continental     5,811    
        Pacific N.W. Bank        
  127,200     SVB Financial Group (a)     5,303    
        Bank to Venture Capitalists        
  213,600     Associated Banc-Corp     2,352    
        Midwest Bank        
  215,000     Eagle Bancorp (a)     2,251    
        Metro D.C. Bank        
  500,000     First Busey     1,945    
        Illinois Bank        
  140,000     Wilmington Trust     1,728    
        Delaware Trust Bank        
  90,000     TriCo Bancshares     1,498    
        California Central Valley Bank        
  851,247     Guaranty Bancorp (a)     1,124    
        Colorado Bank        
  247,203     Green Bankshares (b)     878    
        Tennessee Bank        
      61,760    
    > Brokerage & Money Management 1.4%  
  280,000     Eaton Vance     8,515    
        Specialty Mutual Funds        
  750,000     MF Global (a)     5,212    
        Futures Broker        
  155,000     Investment Technology Group (a)     3,054    
        Electronic Trading        
  150,000     SEI Investments     2,628    
        Mutual Fund Administration &
Investment Management		        
      19,409    
    > Savings & Loans 1.0%  
  600,000     ViewPoint Financial     8,646    
        Texas Thrift        
  238,090     Berkshire Hills Bancorp     4,924    
        Northeast Thrift        
  42,231     K-Fed Bancorp (b)     371    
        Los Angeles Savings & Loan        
      13,941    
    > Insurance 0.6%  
  120,000     Tower Group     2,809    
        Commercial & Personal Lines Insurance        

 

Number of Shares     Value (000)  
  110,000     Delphi Financial Group   $ 2,461    
        Workers Compensation & Group Employee
Benefit Products & Services		        
  7,000     Markel (a)     2,380    
        Specialty Insurance        
      7,650    
Finance: Total     174,267    
Energy & Minerals 8.9%      
    > Oil Services 5.0%  
  500,000     FMC Technologies (a)     28,920    
        Oil & Gas Wellhead Manufacturer        
  755,000     Atwood Oceanics (a)     27,067    
        Offshore Drilling Contractor        
  95,000     Oceaneering International (a)     5,559    
        Provider of Sub-sea Services &
Manufactured Products		        
  105,000     Bristow (a)     4,037    
        Largest Provider of Helicopter Services to
Offshore Oil & Gas Producers		        
  115,375     Exterran Holdings (a)     2,475    
        Natural Gas Compressor Rental & Fabrication        
  106,000     Tesco (a)     1,369    
        Developing New Well Drilling Technologies        
      69,427    
    > Oil & Gas Producers 3.0%  
  925,000     Quicksilver Resources (a)     13,884    
        Natural Gas & Coal Steam Gas Producer        
  485,000     Carrizo Oil & Gas (a)     12,848    
        Oil & Gas Producer        
  218,800     Southwestern Energy (a)     10,546    
        Oil & Gas Producer        
  111,200     Equitable Resources     4,884    
        Natural Gas Producer & Utility        
      42,162    
    > Mining 0.5%  
  50,000     Core Laboratories (Netherlands)     5,906    
        Oil & Gas Reservoir Consulting        
  143,247     PolyMet Mining (a)     438    
        Copper & Nickel Miner        
      6,344    
    > Other Resources 0.4%  
  218,000     Layne Christensen (a)     6,259    
        Oil & Gas Production/Engineering &
Construction/Contract Drilling		        
      6,259    
Energy & Minerals: Total     124,192    
Health Care 8.4%      
    > Biotechnology & Drug Delivery 3.6%  
  298,000     Human Genome Sciences (a)     9,119    
        Biotech Focused on HCV,
Inflammation & Cancer		        
  199,000     Acorda Therapeutics (a)     5,019    
        Biopharma Company Focused on
Nervous Disorder Drugs		        
  266,000     BioMarin (a)     5,003    
        Biotech Focused on Orphan Diseases        

 

See accompanying notes to financial statements.


47


Columbia Acorn USA

Statement of Investments, continued

Number of Shares     Value (000)  
    > Biotechnology & Drug
Delivery—continued		  
  488,784     Seattle Genetics (a)   $ 4,966    
        Antibody-based Therapies for Cancer        
  157,000     Auxilium Pharmaceuticals (a)     4,707    
        Biotech Focused on Niche Disease Areas        
  565,000     Allos Therapeutics (a)     3,712    
        Cancer Drug Development        
  65,000     United Therapeutics (a)     3,422    
        Biotech Focused on Rare Diseases        
  357,000     Nektar Therapeutics (a)     3,327    
        Drug Delivery Technologies        
  85,000     AMAG Pharmaceuticals (a)     3,233    
        Biotech Focused on Niche Diseases        
  113,466     Myriad Genetics (a)     2,961    
        Genetic Diagnostics        
  500,000     NPS Pharmaceuticals (a)     1,700    
        Orphan Drugs & Healthy Royalties        
  127,800     InterMune (a)     1,667    
        Drugs for Pulmonary Fibrosis & Hepatitis C        
  225,000     Micromet (a)(b)     1,499    
        Next-generation Antibody Technology        
  18,181     Metabolex, Series A-1 (a)(d)     22    
        Diabetes Drug Development        
  738,060     Medicure - Warrants (a)(d)     7    
        Cardiovascular Biotech Company        
  100,000     IsoRay - Warrants (a)(d)     2    
        Radiology Cancer Company        
  37,500     Locus Pharmaceuticals,
Series A-1, Pfd. (a)(d)		     2    
  19,329     Locus Pharmaceuticals,
Series B-1, Pfd. (a)(d)		     1    
        High Throughput Rational Drug Design        
      50,369    
    > Medical Equipment & Devices 2.0%  
  235,000     Alexion Pharmaceuticals (a)     11,473    
        Biotech Focused on Orphan Diseases        
  134,000     Illumina (a)     4,107    
        Leading Tools & Service Provider for
Genetic Analysis		        
  85,000     Orthofix International (a)     2,632    
        Bone Fixation & Stimulation Devices        
  80,000     Sirona Dental Systems (a)     2,539    
        Manufacturer of Dental Equipment        
  46,500     Gen-Probe (a)     1,995    
        Molecular In-vitro Diagnostics        
  100,000     American Medical Systems (a)     1,929    
        Medical Devices to Treat Urological Conditions        
  40,000     Kinetic Concepts (a)     1,506    
        Wound Healing & Tissue Repair Products        
  199,720     Nanosphere (a)     1,286    
        Molecular Diagnostics Company with
Best of Breed Platform		        
      27,467    
    > Health Care Services 1.6%  
  606,300     PSS World Medical (a)     13,684    
        Distributor of Medical Supplies        
  170,000     Psychiatric Solutions (a)     3,594    
        Behavioral Health Services        

 

Number of Shares     Value (000)  
  45,000     Mednax (a)   $ 2,705    
        Physician Management for Pediatric &
Anesthesia Practices		        
  283,000     eResearch Technology (a)     1,701    
        Clinical Research Services        
      21,684    
    > Medical Supplies 1.0%  
  318,000     Cepheid (a)     3,969    
        Molecular Diagnostics        
  180,000     Immucor (a)     3,643    
        Automated Blood Typing Reagents        
  43,000     Techne     2,948    
        Cytokines, Antibodies & Other Reagents
for Life Science		        
  53,000     Idexx Laboratories (a)(b)     2,832    
        Diagnostic Equipment & Services
for Veterinarians		        
      13,392    
    > Pharmaceuticals 0.2%  
  56,000     Cephalon (a)     3,495    
        Specialty Pharmaceuticals for Pain,
Central Nervous System & Oncology		        
      3,495    
Health Care: Total     116,407    
Other Industries 4.6%      
    > Real Estate 4.1%  
  405,000     SL Green Realty     20,347    
        Manhattan Office Buildings        
  276,796     Macerich (b)     9,951    
        Regional Shopping Malls        
  170,000     Corporate Office Properties     6,227    
        Office Buildings        
  1,450,000     Kite Realty Group     5,902    
        Community Shopping Centers        
  100,000     Digital Realty Trust     5,028    
        Technology-focused Office Buildings        
  90,000     American Campus Communities     2,529    
        Student Housing        
  470,000     DCT Industrial Trust     2,359    
        Industrial Properties        
  196,000     Extra Space Storage     2,264    
        Self Storage Facilities        
  120,000     BioMed Realty Trust     1,894    
        Life Science-focused Office Buildings        
      56,501    
    > Transportation 0.5%  
  344,720     Heartland Express     5,264    
        Regional Trucker        
  180,000     Rush Enterprises, Class A (a)     2,140    
        Truck Sales & Services        
      7,404    
Other Industries: Total     63,905    
Total Equities: 99.7%
(Cost: $1,099,805)		     1,384,914    

 

See accompanying notes to financial statements.


48


Number of Shares
or Principal Amount (000)		     Value (000)  
Securities Lending Collateral: 1.2%  
  16,749,043     Dreyfus Government Cash
Management Fund (e)
(7 day yield of 0.000%)		   $ 16,749    
Total Securities Lending Collateral:
(Cost: $16,749)		     16,749    
Short-Term Obligation: 0.8%  
    > Repurchase Agreement 0.8%  
$ 11,015     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Treasury obligation,
maturing 3/18/10,
market value $11,239
(repurchase proceeds $11,015)		     11,015    
Total Short-Term Obligation:
(Cost: $11,015)		     11,015    
Total Investments: 101.7%
(Cost: $1,127,569)(f)		     1,412,678    
Obligation to Return Collateral for
Securities Loaned: (1.2)%		     (16,749 )  
Cash and Other Assets Less Liabilities: (0.5)%     (6,320 )  
Total Net Assets: 100.0%   $ 1,389,609    

 

ADR = American Depositary Receipts

See accompanying notes to financial statements.


49


Columbia Acorn USA

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $16,200.

(c)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliate   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
RCM Technologies     786,000       -       -       786,000     $ 1,949     $ -    
Cavco Industries     287,900       50,000       10,000       327,900       11,778       -    
Total of Affiliated Transactions     1,073,900       50,000       10,000       1,113,900     $ 13,727     $ -    

 

  The aggregate cost and value of these companies at December 31, 2009, were $16,520 and $13,727, respectively. Investments in the affiliated companies represented 1.0% of total net assets at December 31, 2009.

(d)  Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. These securities are valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. At December 31, 2009, the market value of these securities amounted to $34 which represented less than 0.01% of total net assets.

  Additional information on these securities is as follows:

Security   Acquisition
Dates		   Shares   Cost   Value  
Metabolex, Series A   2/11/00     18,181     $ 2,000     $ 22    
Medicure - Warrants   12/22/06     738,060       -       7    
IsoRay - Warrants   3/21/07     100,000       -       2    
Locus Pharmaceuticals, Series A-1, Pfd.   9/05/01     37,500       1,500       2    
Locus Pharmaceuticals, Series B-1, Pfd.   2/08/07     19,329       56       1    
                $ 3,556     $ 34    

 

(e)  Investment made with cash collateral received from securities lending activity.

(f)  At December 31, 2009, for federal income tax purposes, the cost of investments was $1,127,912 and net unrealized appreciation was $284,766, consisting of gross unrealized appreciation of $457,844 and gross unrealized depreciation of $173,078.

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Information   $ 491,584     $ -     $ -     $ 491,584    
Consumer Goods & Services     230,453       -       -       230,453    
Industrial Goods & Services     184,106       -       -       184,106    
Finance     174,267       -       -       174,267    
Energy & Minerals     124,192       -       -       124,192    
Health Care     116,373       9       25       116,407    
Other Industries     63,905       -       -       63,905    
Total Equities     1,384,880       9       25       1,384,914    
Total Securities Lending Collateral     16,749       -       -       16,749    
Short-Term Obligation     -       11,015       -       11,015    
Total Investments   $ 1,401,629     $ 11,024     $ 25     $ 1,412,678    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

See accompanying notes to financial statements.


50


> Notes to Statement of Investments (dollar values in thousands)

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Health Care   $ 41     $ -     $ -     $ (16 )   $ -     $ -     $ 25    
    $ 41     $ -     $ -     $ (16 )   $ -     $ -     $ 25    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(16). This amount is included in net change in unrealized depreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


51


Columbia Acorn International Select

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Europe  
> United Kingdom  
Cobham     2,115,000       2,650,000    
Schroders     270,000       310,000    
Spice Group     0       1,502,200    
> Netherlands  
Smit Internationale     0       38,285    
> France  
Eutelsat (France)     138,000       188,000    
> Germany  
Wirecard     0       635,000    
> Spain  
Red Electrica de Espana (Spain)     175,000       195,000    
> Switzerland  
Bank Sarasin & Cie     24,800       90,000    
Asia  
> Japan  
Ain Pharmaciez     95,300       160,000    
Nomura Holdings     0       560,000    
> Singapore  
Olam International (Singapore)     5,500,000       6,100,000    
> China  
Zhaojin Mining Industry (China)     0       3,711,000    
Other Countries  
> Australia  
United Group     0       487,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Sales  
Europe  
> United Kingdom  
RPS Group     1,200,000       0    
> France  
SES     210,000       0    
> Germany  
Wincor Nixdorf     110,000       0    
Asia  
> Japan  
Aeon Mall     296,000       0    
> Hong Kong  
NagaCorp (Hong Kong)     9,918,766       3,867,066    
Other Countries  
> Canada  
Potash Corp. of Saskatchewan     117,400       80,000    
> United States  
Alexion Pharmaceuticals     220,000       90,000    
Cephalon     85,000       0    
> Israel  
Israel Chemicals     1,203,000       310,000    

 

See accompanying notes to financial statements.


52


Columbia Acorn International Select

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 93.3%    
Europe 36.9%      
    > United Kingdom 15.2%  
  2,350,000     Serco   $ 19,979    
        Facilities Management        
  1,100,000     Capita Group     13,268    
        White Collar, Back Office Outsourcing        
  2,650,000     Cobham     10,682    
        Aerospace Components        
  525,000     Intertek Group     10,571    
        Testing, Inspection & Certification Services        
  310,000     Schroders     6,617    
        United Kingdom Top Tier Asset Manager        
  1,502,200     Spice Group     1,466    
        United Kingdom Utility Outsourcing        
      62,583    
    > Netherlands 6.0%  
  169,162     Fugro     9,660    
        Sub-sea Oilfield Services        
  252,000     Imtech     6,763    
        Electromechanical & ICT
Installation & Maintenance		        
  41,000     Core Laboratories     4,843    
        Oil & Gas Reservoir Consulting        
  38,285     Smit Internationale     3,296    
        Harbor & Offshore Towage & Marine Services        
      24,562    
    > France 4.3%  
  89,500     Neopost     7,394    
        Postage Meter Machines        
  188,000     Eutelsat     6,032    
        Fixed Satellite Services        
  102,000     Zodiac Aerospace     4,257    
        Leading Supplier to the Aerospace Industry        
      17,683    
    > Germany 3.2%  
  635,000     Wirecard     8,730    
        Online Payment Processing & Risk Management        
  174,000     Rhoen-Klinikum     4,256    
        Health Care Services        
      12,986    
    > Spain 2.6%  
  195,000     Red Electrica de Espana     10,807    
        Spanish Power Transmission        
      10,807    
    > Sweden 2.4%  
  669,000     Hexagon     9,827    
        Measurement Equipment        
      9,827    
    > Switzerland 1.7%  
  35,700     Kuehne & Nagel     3,454    
        Freight Forwarding/Logistics        
  90,000     Bank Sarasin & Cie (a)     3,401    
        Private Banking        
      6,855    

 

Number of Shares     Value (000)  
    > Ireland 0.8%  
  1,130,000     United Drug   $ 3,448    
        Irish Pharmaceutical Wholesaler & Outsourcer        
      3,448    
    > Denmark 0.7%  
  29,000     Novozymes     3,007    
        Industrial Enzymes        
      3,007    
Europe: Total     151,758    
Asia 35.1%      
    > Japan 14.6%  
  1,277,000     Kansai Paint     10,603    
        Paint Producer in Japan, India, China &
Southeast Asia		        
  9,000     Jupiter Telecommunications     8,916    
        Largest Cable Service Provider in Japan        
  189,300     Benesse     7,916    
        Education Service Provider        
  634,300     Rohto Pharmaceutical     7,301    
        Health & Beauty Products        
  3,540     Seven Bank     7,031    
        ATM Processing Services        
  900     Orix JREIT     4,473    
        Diversified REIT        
  560,000     Nomura Holdings     4,127    
        Brokerage, Dealing, Underwriting &
Asset Management		        
  160,000     Ain Pharmaciez     3,839    
        Dispensing Pharmacy/Drugstore Operator        
  435,000     Kamigumi     3,161    
        Port Cargo Handling & Logistics        
  307,000     Suruga Bank     2,663    
        Regional Bank        
      60,030    
    > Singapore 6.6%  
  7,500,000     Ascendas REIT     11,745    
        Singapore Industrial Property Landlord        
  6,100,000     Olam International     11,424    
        Agriculture Supply Chain Manager        
  702,000     Singapore Exchange     4,138    
        Singapore Equity & Derivatives Market Operator        
      27,307    
    > South Korea 6.6%  
  73,100     NHN (a)     12,071    
        South Korea's Largest Online Search Engine        
  49,204     MegaStudy     10,082    
        Online Education Service Provider        
  151,000     Woongjin Coway     4,978    
        South Korean Household Appliance Rental
Service Provider		        
      27,131    
    > China 4.7%  
  3,711,000     Zhaojin Mining Industry     7,320    
        Gold Mining & Refining in China        
  6,731,000     Jiangsu Expressway     5,988    
        Chinese Toll Road Operator        

 

See accompanying notes to financial statements.


53


Columbia Acorn International Select

Statement of Investments, continued

Number of Shares     Value (000)  
    > China—continued  
  1,752,700     Shandong Weigao   $ 5,821    
        Vertically Integrated Hospital
Consumable Manufacturer		        
      19,129    
    > Hong Kong 2.6%  
  434,700     Hong Kong Exchanges and Clearing     7,739    
        Hong Kong Equity & Derivatives
Market Operator		        
  1,259,800     Lifestyle International     2,337    
        Mid to High-end Department Store Operator in
Hong Kong & China		        
  3,867,066     NagaCorp     427    
        Casino/Entertainment Complex in Cambodia        
      10,503    
Asia: Total     144,100    
Other Countries 21.3%      
    > Canada 7.9%  
  701,250     Eldorado Gold (a)     10,004    
        Gold Miner in Turkey, Greece, China & Brazil        
  615,000     Pacific Rubiales Energy (a)     9,085    
        Oil Production & Exploration in Colombia        
  80,000     Potash Corp. of Saskatchewan     8,680    
        World's Largest Producer of Potash        
  172,000     CCL Industries     4,646    
        Leading Global Label Manufacturer        
      32,415    
    > South Africa 6.2%  
  630,000     Naspers     25,566    
        Media in Africa & Other Emerging Markets        
      25,566    
    > United States 4.7%  
  61,000     Diamond Offshore     6,004    
        Offshore Drilling Contractor        
  80,000     Oceaneering International (a)     4,681    
        Provider of Sub-sea Services &
Manufactured Products		        
  90,000     Alexion Pharmaceuticals (a)     4,394    
        Biotech Focused on Orphan Diseases        
  115,000     Atwood Oceanics (a)     4,123    
        Offshore Drilling Contractor        
      19,202    
    > Australia 1.5%  
  487,000     United Group     6,201    
        Engineering & Facilities Management        
      6,201    
    > Israel 1.0%  
  310,000     Israel Chemicals     4,048    
        Producer of Potash, Phosphates, Bromine &
Specialty Chemicals		        
      4,048    
Other Countries: Total     87,432    
Total Equities: 93.3%
(Cost: $302,588)		     383,290    

 

Number of Shares
or Principal Amount (000)		     Value (000)  
Exchange Traded Fund: 1.0%      
  325,000     iShares MSCI Taiwan Index Fund   $ 4,215    
        Taiwan Exchange Traded Fund        
Total Exchange Traded Fund:
(Cost: $3,231)		     4,215    
Short-Term Obligations: 5.9%      
    > Repurchase Agreement 5.4%  
$ 21,979     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Treasury obligation,
maturing 3/18/10,
market value $22,423
(repurchase proceeds $21,979)		     21,979    
      21,979    
    > Commercial Paper 0.5%  
  2,000     Toyota Motor Credit
0.16% due 1/04/10		     2,000    
      2,000    
Total Short-Term Obligations:
(Amortized Cost: $23,979)		     23,979    
Total Investments: 100.2%
(Cost: $329,798)(b)(c)		     411,484    
Cash and Other Assets Less Liabilities: (0.2)%     (809 )  
Total Net Assets: 100.0%   $ 410,675    

 

See accompanying notes to financial statements.


54


> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  At December 31, 2009, for federal income tax purposes, the cost of investments was $333,882 and net unrealized appreciation was $77,602, consisting of gross unrealized appreciation of $87,792 and gross unrealized depreciation of $10,190.

(c)  On December 31, 2009, the Fund's total investments were denominated in currencies as follows:

Currency   Value   Percentage
of Net Assets		  
Euro   $ 64,643       15.8    
British Pound     62,583       15.2    
U.S. Dollar     60,919       14.8    
Japanese Yen     60,030       14.6    
Hong Kong Dollar     29,632       7.2    
Singapore Dollar     27,307       6.7    
South Korean Won     27,131       6.6    
South African Rand     25,566       6.2    
Canadian Dollar     23,735       5.8    
Other currencies less
than 5% of total net assets		     29,938       7.3    
    $ 411,484       100.2    

 

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Europe   $ 4,843     $ 146,915     $ -     $ 151,758    
Asia     -       144,100       -       144,100    
Other Countries     51,617       35,815       -       87,432    
Total Equities     56,460       326,830       -       383,290    
Total Exchange Traded Fund     4,215       -       -       4,215    
Total Short-Term Obligations     -       23,979       -       23,979    
Total Investments   $ 60,675     $ 350,809     $ -     $ 411,484    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

  For more information on valuation inputs, and their aggregation into the levels used in the table above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


55


Columbia Acorn International Select

Portfolio Diversification

At December 31, 2009, the Fund's portfolio investments as a percent of net assets were diversified as follows:

    Value (000)   Percentage
of Net Assets		  
> Industrial Goods & Services  
Outsourcing Services   $ 46,137       11.2    
Other Industrial Services     31,246       7.6    
Industrial Materials &
Specialty Chemicals		     17,658       4.3    
Electrical Components     10,682       2.6    
Machinery     7,394       1.8    
      113,117       27.5    
> Information  
TV Broadcasting     25,566       6.2    
Financial Processors     20,607       5.0    
Internet Related     12,071       3.0    
Instrumentation     9,827       2.4    
CATV     8,916       2.2    
Satellite Broadcasting & Services     6,032       1.5    
      83,019       20.3    
> Energy & Minerals  
Mining     30,847       7.5    
Oil Services     24,468       6.0    
Oil & Gas Producers     9,085       2.2    
      64,400       15.7    
> Consumer Goods & Services  
Other Consumer Services     25,313       6.2    
Nondurables     11,947       2.9    
Retail     3,839       0.9    
Casinos & Gaming     427       0.1    
      41,526       10.1    
> Other Industries  
Real Estate     16,218       4.0    
Transportation     12,445       3.0    
Regulated Utilities     10,807       2.6    
      39,470       9.6    
> Finance  
Brokerage & Money Management     14,145       3.4    
Banks     9,694       2.4    
      23,839       5.8    

 

    Value (000)   Percentage
of Net Assets		  
> Health Care  
Medical Equipment & Devices   $ 10,215       2.5    
Health Care Services     4,256       1.0    
Pharmaceuticals     3,448       0.8    
      17,919       4.3    
Total Equities:     383,290       93.3    
Exchange Traded Fund:     4,215       1.0    
Short-Term Obligations:     23,979       5.9    
Total Investments:     411,484       100.2    
Cash and Other Assets
Less Liabilities:		     (809 )     (0.2 )  
Net Assets:   $ 410,675       100.0    

 

See accompanying notes to financial statements.


56


Columbia Acorn Select

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Consumer Goods & Services  
Abercrombie & Fitch     750,000       1,650,000    
GLG Life Tech (Canada)     0       108,000    
ITT Educational Services     825,000       1,000,000    
Safeway     3,500,000       3,600,000    
Steelcase     2,612,994       3,000,000    
Information  
Globalstar     11,800,000       13,400,800    
VisionChina Media - ADR (China)     4,121,817       4,250,000    
WNS - ADR (India)     3,900,000       3,913,900    
Energy & Minerals  
Alange Energy (Colombia)     156,600       8,400,000    
Houston American Energy     0       1,050,000    
Cap-Link Ventures     0       17,144,000    
Cap-Link Ventures-Warrants     0       17,144,000    
Finance  
Discover Financial Services     1,350,000       2,050,000    
Industrial Goods & Services  
Ametek     675,000       750,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Sales  
Consumer Goods & Services  
Career Education     1,300,000       977,000    
Gap     575,000       0    
Hertz     7,750,000       7,500,000    
NagaCorp (Hong Kong)     76,000,000       29,633,051    
SkillSoft - ADR     9,200,000       9,000,000    
Information  
American Tower     950,000       900,000    
CardTronics     3,430,343       2,620,000    
China Mass Media - ADR (China)     2,017,600       1,662,685    
Discovery Communications,
Series C		     1,125,000       400,000    
Hackett Group     1,334,442       1,000,000    
Novell     8,100,000       7,000,000    
Energy & Minerals  
FMC Technologies     600,000       0    
Synthesis Energy Systems
(China)		     2,500,000       2,200,000    
Tetra Technologies     6,400,000       5,000,000    
Uranium One (South Africa)     9,150,000       8,500,000    
Finance  
Conseco     14,900,000       13,500,000    
MF Global     5,800,000       5,500,000    
SEI Investments     1,250,000       1,100,000    
Industrial Goods & Services  
Donaldson     250,000       0    
Expeditors International
of Washington		     850,000       600,000    
Mobile Mini     750,000       117,328    
Quanta Services     2,300,000       1,950,000    

 

See accompanying notes to financial statements.


57


Columbia Acorn Select

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 92.2%    
Consumer Goods & Services 31.8%      
    > Educational Services 11.2%  
  1,000,000     ITT Educational Services (a)   $ 95,960    
        Post-secondary Degree Services        
  9,000,000     SkillSoft - ADR (a)(b)     94,320    
        Web-based Learning Solutions (E-Learning)        
  977,000     Career Education (a)     22,774    
        Post-secondary Education        
  950,000     Princeton Review (a)     3,857    
        College Preparation Courses        
      216,911    
    > Travel 8.0%  
  7,500,000     Hertz (a)     89,400    
        Largest U.S. Rental Car Operator        
  2,600,000     Expedia (a)     66,846    
        Online Travel Services Company        
      156,246    
    > Retail 6.9%  
  3,600,000     Safeway     76,644    
        Supermarkets        
  1,650,000     Abercrombie & Fitch     57,502    
        Teen Apparel Retailer        
      134,146    
    > Apparel 2.6%  
  1,400,000     Coach     51,142    
        Designer & Retailer of Branded
Leather Accessories		        
      51,142    
    > Casinos & Gaming 2.0%  
  325,000,000     RexLot Holdings (China)     36,280    
        Lottery Equipment Supplier in China        
  29,633,051     NagaCorp (Hong Kong)     3,274    
        Casino/Entertainment Complex in Cambodia        
      39,554    
    > Furniture & Textiles 1.0%  
  3,000,000     Steelcase     19,080    
        Office Furniture        
      19,080    
    > Food & Beverage 0.1%  
  108,000     GLG Life Tech (Canada) (a)     826    
        Produce an All-natural Sweetener Extracted
from the Stevia Plant		        
  17,500,000     Fu Ji Food & Catering Services
(China) (a)(c)		     181    
        Food Catering Service Provider in China        
      1,007    
Consumer Goods & Services: Total     618,086    
Information 22.4%      
    > Mobile Communications 6.6%  
  1,550,000     Crown Castle International (a)     60,512    
        Communications Towers        
  900,000     American Tower (a)     38,889    
        Communications Towers in USA &
Latin America		        

 

Number of Shares     Value (000)  
  505,000     SBA Communications (a)   $ 17,251    
        Communications Towers        
  13,400,800     Globalstar (a)(b)(d)     11,659    
        Satellite Mobile Voice & Data Carrier        
      128,311    
    > Contract Manufacturing 4.7%  
  8,200,000     Sanmina-SCI (a)(b)     90,446    
        Electronic Manufacturing Services        
      90,446    
    > Computer Services 3.2%  
  3,913,900     WNS - ADR (India) (a)(b)(d)     58,904    
        Offshore BPO (Business Process
Outsourcing) Services		        
  1,000,000     Hackett Group (a)     2,780    
        IT Integration & Best Practice Research        
      61,684    
    > Advertising 2.6%  
  4,250,000     VisionChina Media - ADR
(China) (a)(b)(d)		     46,410    
        Advertising on Digital Screens in China's
Mass Transit System		        
  1,662,685     China Mass Media - ADR
(China) (a)(b)(d)		     4,290    
        Media Planning Agency in China        
      50,700    
    > Computer Hardware & Related
Equipment 1.8%		  
  750,000     Amphenol     34,635    
        Electronic Connectors        
      34,635    
    > Business Software 1.5%  
  7,000,000     Novell (a)     29,050    
        Directory, Operating System & Identity
Management Software		        
      29,050    
    > Financial Processors 1.5%  
  2,620,000     CardTronics (a)(b)     29,003    
        Operates the World's Largest Network
of ATMs		        
      29,003    
    > CATV 0.5%  
  400,000     Discovery Communications,
Series C (a)		     10,608    
        CATV Programming        
      10,608    
Information: Total     434,437    
Energy & Minerals 15.7%      
    > Oil & Gas Producers 8.5%  
  4,966,666     Pacific Rubiales Energy
(Canada) (a)(e)		     73,004    
  1,483,334     Pacific Rubiales Energy
(Canada) (a)		     21,913    
        Oil Production & Exploration in Colombia        
  32,240,000     Canacol Energy (Canada) (a)(b)(e)     18,835    
        Oil Producer in South America        

 

See accompanying notes to financial statements.


58


Number of Shares     Value (000)  
    > Oil & Gas Producers—continued  
  2,500,000     Gran Tierra Energy (Canada) (a)   $ 14,342    
        Oil Exploration & Production in Colombia,
Peru & Argentina		        
  17,144,000     Cap-Link Ventures (a)(e)     7,213    
  17,144,000     Cap-Link Ventures-Warrants (a)(e)     4,590    
        Oil & Gas Exploration & Production in
Colombia, Peru & Paraguay		        
  25,883,000     ShaMaran Petroleum
(Canada) (a)(b)(e)		     10,691    
  5,117,000     ShaMaran Petroleum
(Canada) (a)(b)		     2,202    
        Oil Exploration in Kurdistan        
  1,050,000     Houston American Energy     6,468    
        Oil & Gas Exploration/Production in Colombia        
  8,400,000     Alange Energy (Colombia) (a)     5,060    
        Oil & Gas Exploration/Production
in Colombia		        
      164,318    
    > Alternative Energy 3.1%  
  1,900,000     Canadian Solar (China) (a)(d)     54,758    
        Solar Cell & Module Manufacturer        
  1,400,000     Real Goods Solar (a)(b)     4,410    
        Residential Solar Energy Installer        
  2,200,000     Synthesis Energy Systems
(China) (a)		     2,041    
        Owner/Operator of Gasification Plants        
      61,209    
    > Oil Services 2.8%  
  5,000,000     Tetra Technologies (a)(b)     55,400    
        U.S.-based Services Company with Life of
Field Approach		        
      55,400    
    > Mining 1.3%  
  8,500,000     Uranium One (South Africa) (a)     24,545    
        Uranium Mines in Kazakhstan, the
U.S. & Australia		        
      24,545    
Energy & Minerals: Total     305,472    
Finance 10.0%      
    > Brokerage & Money Management 5.0%  
  1,300,000     Eaton Vance     39,533    
        Specialty Mutual Funds        
  5,500,000     MF Global (a)     38,225    
        Futures Broker        
  1,100,000     SEI Investments     19,272    
        Mutual Fund Administration &
Investment Management		        
      97,030    
    > Insurance 3.5%  
  13,500,000     Conseco (a)(b)     67,500    
        Life, Long-term Care & Medical
Supplement Insurance		        
      67,500    

 

Number of Shares     Value (000)  
    > Credit Cards 1.5%  
  2,050,000     Discover Financial Services   $ 30,156    
        Credit Card Company        
      30,156    
Finance: Total     194,686    
Industrial Goods & Services 9.1%      
    > Waste Management 2.6%  
  1,500,000     Waste Management     50,715    
        U.S. Garbage Collection & Disposal        
      50,715    
    > Outsourcing Services 2.1%  
  1,950,000     Quanta Services (a)     40,638    
        Electrical & Telecom Construction Services        
      40,638    
    > Machinery 1.5%  
  750,000     Ametek     28,680    
        Aerospace/Industrial Instruments        
      28,680    
    > Industrial Materials & Specialty
Chemicals 1.3%		  
  1,000,000     Nalco Holding Company     25,510    
        Provider of Water Treatment & Process
Chemicals & Services		        
  18,263     ChemSpec International - ADR
(China) (a)		     120    
        Specialty Chemicals with Focus on
Fluorinated Chemical Manufacturing		        
      25,630    
    > Other Industrial Services 1.2%  
  600,000     Expeditors International
of Washington		     20,838    
        International Freight Forwarder        
  117,328     Mobile Mini (a)     1,653    
        Portable Storage Units Leasing        
      22,491    
    > Industrial Distribution 0.4%  
  90,000     WW Grainger     8,715    
        Industrial Distribution        
      8,715    
Industrial Goods & Services: Total     176,869    
Other Industries 3.2%      
    > Transportation 3.2%  
  1,300,000     JB Hunt Transport Services     41,951    
        Truck & Intermodal Carrier        
  1,125,000     American Commercial Lines (a)(b)     20,621    
        Operator of Inland Barges/Builder of
Barges & Vessels		        
      62,572    
Other Industries: Total     62,572    

 

See accompanying notes to financial statements.


59


Columbia Acorn Select

Statement of Investments, continued

Number of Shares
or Principal Amount (000)		     Value (000)  
Health Care —%      
    > Health Care Services —%  
  27,500     Emdeon (a)   $ 419    
        Revenue & Payment Cycle Management        
      419    
Health Care: Total     419    
Total Equities: 92.2%
(Cost: $1,551,056)		     1,792,541    
Securities Lending Collateral: 0.2%      
  3,884,667     Dreyfus Government Cash
Management Fund
(7 day yield of 0.000%) (f)		     3,885    
Total Securities Lending Collateral:
(Cost: $3,885)		     3,885    
Short-Term Obligations: 8.0%      
    > Repurchase Agreement 7.5%  
$ 146,852     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Treasury obligation,
maturing 4/01/10,
market value $149,790
(repurchase proceeds $146,852)		     146,852    
      146,852    
    > Commercial Paper 0.5%  
  9,300     Toyota Motor Credit
0.16% due 1/04/10		     9,300    
      9,300    
Total Short-Term Obligations:
(Amortized Cost: $156,152)		     156,152    
Total Investments: 100.4%
(Cost: $1,711,093)(g)		     1,952,578    
Obligation to Return Collateral for
Securities Loaned: (0.2)%		     (3,885 )  
Cash and Other Assets Less Liabilities: (0.2)%     (3,848 )  
Total Net Assets: 100.0%   $ 1,944,845    

 

ADR = American Depositary Receipts.

See accompanying notes to financial statements.


60


> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
American Commercial Lines     3,803,849       696,151       3,375,000 **     1,125,000     $ 20,621     $ -    
Canacol Energy     -       32,240,000       -       32,240,000       18,835            
Canadian Solar*     1,825,000       400,000       325,000       1,900,000       54,758       -    
CardTronics     3,560,000       140,000       1,080,000       2,620,000       29,003       -    
China Mass Media - ADR     2,350,000       -       687,315       1,662,685       4,290       -    
Conseco     14,950,000       -       1,450,000       13,500,000       67,500       -    
Globalstar     10,000,000       4,600,800       1,200,000       13,400,800       11,659       -    
Real Goods Solar     1,500,000       -       100,000       1,400,000       4,410       -    
Sanmina-SCI     50,200,000       -       42,000,000 ***     8,200,000       90,446       -    
ShaMaran Petroleum     -       31,000,000       -       31,000,000       12,893            
SkillSoft - ADR     9,500,000       -       500,000       9,000,000       94,320       -    
Synthesis Energy Systems*     2,800,000       -       600,000       2,200,000       2,041       -    
Tetra Technologies     6,150,000       1,050,000       2,200,000       5,000,000       55,400       -    
VisionChina Media - ADR     3,118,900       1,131,100       -       4,250,000       46,410            
WNS - ADR     3,100,000       859,975       46,075       3,913,900       58,904       -    
Total of Affiliated Transactions     112,857,749       72,118,026       53,563,390       131,412,385     $ 571,490     $ -    

 

*  At December 31, 2009, the Fund owned less than five percent of the company's outstanding voting shares.

**  Includes the effect of a 1:4 reverse stock split.

***  Includes the effect of a 1:6 reverse stock split.

  The aggregate cost and value of these companies at December 31, 2009, were $705,100 and $571,490, respectively. Investments in affiliated companies represented 29.4% of total net assets at December 31, 2009.

(c)  Illiquid security.

(d)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $3,749.

(e)  Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. These securities are valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. At December 31, 2009, the market value of these securities amounted to $114,333, which represented 5.88% of total net assets.

  Additional information on these securities is as follows:

Security   Acquisition
Dates		   Shares   Cost   Value  
Canacol Energy   9/23/09     32,240,000     $ 8,397     $ 18,835    
Pacific Rubiales Energy   7/12/07     4,966,666       19,942       73,004    
Cap-Link Ventures   11/20/09     17,144,000       3,499       7,213    
Cap-Link Ventures-Warrants   11/20/09     17,144,000       2,226       4,590    
ShaMaran Petroleum   9/15/09     25,883,000       18,117       10,691    
                $ 52,181     $ 114,333    

 

(f)  Investment made with cash collateral received from securities lending activity.

(g)  At December 31, 2009, for federal income tax purposes, the cost of investments was $1,729,836 and net unrealized appreciation was $222,742, consisting of gross unrealized appreciation of $585,007 and gross unrealized depreciation of $362,265.

See accompanying notes to financial statements.


61


Columbia Acorn Select

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Consumer Goods & Services   $ 578,351     $ 39,554     $ 181     $ 618,086    
Information     434,437       -       -       434,437    
Energy & Minerals     191,139       114,333       -       305,472    
Finance     194,686       -       -       194,686    
Industrial Goods & Services     176,869       -       -       176,869    
Other Industries     62,572       -       -       62,572    
Health Care     419       -       -       419    
Total Equities     1,638,473       153,887       181       1,792,541    
Total Securities Lending Collateral     3,885       -       -       3,885    
Total Short-Term Obligations     -       156,152       -       156,152    
Total Investments   $ 1,642,358     $ 310,039     $ 181     $ 1,952,578    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Consumer Goods & Services   $ -     $ -     $ -     $ (14,925 )   $ -     $ 15,106     $ 181    
    $ -     $ -     $ -     $ (14,925 )   $ -     $ 15,106     $ 181    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 inputs during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(14,925). This amount is included in net change in unrealized depreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


62


Columbia Thermostat Fund

Statement of Investments, December 31, 2009

Number of Shares
or Principal Amount (000)		     Value (000)  
    > Stock Funds: 85.0%  
  2,728,249     Columbia Large Cap Enhanced
Core Fund, Class Z		   $ 29,383    
  1,982,660     Columbia Dividend Income Fund,
Class Z		     23,495    
  720,997     Columbia Acorn Fund, Class Z     17,794    
  1,018,204     Columbia Marsico Growth
Fund, Class Z		     17,605    
  513,283     Columbia Acorn International,
Class Z		     17,585    
  510,373     Columbia Acorn Select, Class Z     11,932    
Total Stock Funds (Cost: $119,130)     117,794    
    > Bond Funds: 14.5%  
  1,148,436     Columbia Intermediate Bond Fund,
Class Z		     10,095    
  535,341     Columbia U.S. Treasury Index
Fund, Class Z		     5,932    
  551,500     Columbia Conservative High Yield
Fund, Class Z		     4,125    
Total Bond Funds (Cost: $19,764)     20,152    
Short-Term Obligation: 0.6%      
    > Repurchase Agreement: 0.6%  
$ 787     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Government Agency
obligation, maturing 9/17/10,
market value $806
(repurchase proceeds $787)		     787    
Total Short-Term Obligation
(Cost: $787)		     787    
Total Investments: 100.1%
(Cost: $139,681)(a)		     138,733    
Cash and Other Assets Less Liabilities: (0.1)%     (144 )  
Total Net Assets: 100.0%   $ 138,589    

 

See accompanying notes to financial statements.


63


Columbia Thermostat Fund

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

(a)  At December 31, 2009, for federal income tax purposes, the cost of investments was $140,157 and net unrealized depreciation was $1,424, consisting of gross unrealized appreciation of $8,876 and gross unrealized depreciation of $10,300.

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Total Stock Funds   $ 117,794     $ -     $ -     $ 117,794    
Total Bond Funds     20,152       -       -       20,152    
Total Short-Term Obligation     -       787       -       787    
Total Investments   $ 137,946     $ 787     $ -     $ 138,733    

 

  For more information on valuation inputs, and their aggregation into the levels used in the table above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


64



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65


Columbia Acorn Family of Funds

Statements of Assets and Liabilities

December 31, 2009   Columbia
Acorn
Fund		   Columbia
Acorn
International		   Columbia
Acorn
USA		  
(in thousands)  
Assets:  
Unaffiliated investments, at cost   $ 7,848,115     $ 3,281,798     $ 1,111,049    
Affiliated investments, at cost
(See Note 4)		     3,167,879       77,410       16,520    
Unaffiliated investments, at value (including
securities on loan: Columbia Acorn Fund
$175,896; Columbia Acorn International
$25,743; Columbia Acorn USA $16,200;
Columbia Acorn International Select $–;
Columbia Acorn Select $3,749; Columbia
Thermostat Fund $–)		   $ 11,210,831     $ 4,300,923     $ 1,398,951    
Affiliated investments, at value
(See Note 4)		     3,750,852       114,524       13,727    
Cash     34       —       — *  
Foreign currency (cost: Columbia
Acorn Fund $3,308;
Columbia Acorn International $29,329;
Columbia Acorn International
Select $25; Columbia Acorn Select $113)		     3,453       29,594       —    
Net unrealized appreciation on forward
foreign currency exchange contracts		     —       6,689       —    
Receivable for:  
Investments sold     19,206       8,744       6,072    
Fund shares sold     14,294       8,161       604    
Dividends and interest     7,667       4,939       649    
Securities lending income     89       27       10    
Foreign tax reclaims     166       1,030       —    
Trustees' Deferred Compensation Investments     3,145       876       244    
Other assets     92       25       8    
Total Assets     15,009,829       4,475,532       1,420,265    
Liabilities:  
Payable to custodian bank     —       9       —    
Collateral on securities loaned     183,434       26,644       16,749    
Expense reimbursement due to Advisor     —       —       —    
Net unrealized depreciation on forward
foreign currency exchange contracts		     —       4,205       —    
Payable for:  
Investments purchased     44,749       4,766       1,144    
Fund shares redeemed     37,841       2,725       11,007    
Management fee     7,895       2,855       999    
Administration fee     502       152       47    
12b-1 Service & Distribution fees     1,567       217       78    
Reports to shareholders     785       327       108    
Deferred Trustees' fees     3,145       876       244    
Transfer agent fees     2,095       405       230    
Trustees' fees     — *     — *     2    
Custody fees     181       289       5    
Chief compliance officer expenses     27       8       2    
Foreign capital gains tax     200       1,217       —    
Other liabilities     257       99       41    
Total Liabilities     282,678       44,794       30,656    
Net Assets   $ 14,727,151     $ 4,430,738     $ 1,389,609    
Composition of Net Assets:  
Paid in capital   $ 11,247,302     $ 3,962,215     $ 1,228,860    
Undistributed/(overdistributed)
net investment income
(Accumulated net investment loss)		     (20,794 )     39,113       (275 )  
Accumulated net realized gain/(loss)     (444,982 )     (628,257 )     (124,085 )  
Net unrealized appreciation/(depreciation) on:  
Investments     3,945,689       1,056,239       285,109    
Foreign capital gains tax     (200 )     (1,217 )     —    
Foreign currency translations     136       2,645       —    
Net Assets   $ 14,727,151     $ 4,430,738     $ 1,389,609    
Net asset value per
share – Class A (a)		   $ 23.98     $ 34.13     $ 22.43    
(Net assets/shares)     ($2,937,761/122,497)       ($578,599/16,955)       ($178,605/7,962)    
Maximum offering price per
share – Class A (b)		   $ 25.44     $ 36.21     $ 23.80    
(Net asset value per share/front-
end sales charge)		     ($23.98/0.9425)       ($34.13/0.9425)       ($22.43/0.9425)    
Net asset value and offering price
per share – Class B (a)		   $ 22.43     $ 33.22     $ 20.99    
(Net assets/shares)     ($525,072/23,411)       ($38,835/1,169)       ($20,903/996)    
Net asset value and offering price
per share – Class C (a)		   $ 22.23     $ 33.08     $ 20.84    
(Net assets/shares)     ($736,818/33,142)       ($85,625/2,588)       ($32,508/1,560)    
Net asset value and offering price
per share – Class Z (c)		   $ 24.68     $ 34.26     $ 23.19    
(Net assets/shares)     ($10,527,500/426,515)       ($3,727,679/108,818)       ($1,157,593/49,909)    

 

December 31, 2009   Columbia
Acorn
International
Select		   Columbia
Acorn
Select		   Columbia
Thermostat
Fund		  
(in thousands)  
Assets:  
Unaffiliated investments, at cost   $ 329,798     $ 1,005,993     $ 787    
Affiliated investments, at cost
(See Note 4)		     —       705,100       138,894    
Unaffiliated investments, at value (including
securities on loan: Columbia Acorn Fund
$175,896; Columbia Acorn International
$25,743; Columbia Acorn USA $16,200;
Columbia Acorn International Select $–;
Columbia Acorn Select $3,749; Columbia
Thermostat Fund $–)		   $ 411,484     $ 1,381,088     $ 787    
Affiliated investments, at value
(See Note 4)		     —       571,490       137,946    
Cash     —       —       1    
Foreign currency (cost: Columbia
Acorn Fund $3,308;
Columbia Acorn International $29,329;
Columbia Acorn International
Select $25; Columbia Acorn Select $113)		     25       113       —    
Net unrealized appreciation on forward
foreign currency exchange contracts		     —       —       —    
Receivable for:  
Investments sold     5       178       273    
Fund shares sold     769       2,479       93    
Dividends and interest     368       892       —    
Securities lending income     —       4       —    
Foreign tax reclaims     16       —       —    
Trustees' Deferred Compensation Investments     —       288       —    
Other assets     3       11       1    
Total Assets     412,670       1,956,543       139,101    
Liabilities:  
Payable to custodian bank     — *     4       —    
Collateral on securities loaned     —       3,885       —    
Expense reimbursement due to Advisor     — *     —       6    
Net unrealized depreciation on forward
foreign currency exchange contracts		     —       —       —    
Payable for:  
Investments purchased     189       48       —    
Fund shares redeemed     1,259       5,221       327    
Management fee     327       1,321       12    
Administration fee     14       66       5    
12b-1 Service & Distribution fees     25       242       48    
Reports to shareholders     46       191       41    
Deferred Trustees' fees     44       288       28    
Transfer agent fees     37       329       30    
Trustees' fees     — *     — *     — *  
Custody fees     22       50       —    
Chief compliance officer expenses     1       4       — *  
Foreign capital gains tax     —       —       —    
Other liabilities     31       49       15    
Total Liabilities     1,995       11,698       512    
Net Assets   $ 410,675     $ 1,944,845     $ 138,589    
Composition of Net Assets:  
Paid in capital   $ 405,974     $ 1,850,202     $ 166,320    
Undistributed/(overdistributed)
net investment income
(Accumulated net investment loss)		     1,978       (8,359 )     1,247    
Accumulated net realized gain/(loss)     (78,954 )     (138,483 )     (28,030 )  
Net unrealized appreciation/(depreciation) on:  
Investments     81,686       241,485       (948 )  
Foreign capital gains tax     —       —       —    
Foreign currency translations     (9 )     — *     —    
Net Assets   $ 410,675     $ 1,944,845     $ 138,589    
Net asset value per
share – Class A (a)		   $ 23.39     $ 22.81     $ 10.90    
(Net assets/shares)     ($64,664/2,764)       ($522,443/22,908)       ($42,976/3,943)    
Maximum offering price per
share – Class A (b)		   $ 24.82     $ 24.20     $ 11.56    
(Net asset value per share/front-
end sales charge)		     ($23.39/0.9425)       ($22.81/0.9425)       ($10.90/0.9425)    
Net asset value and offering price
per share – Class B (a)		   $ 22.34     $ 21.41     $ 10.93    
(Net assets/shares)     ($3,887/174)       ($88,004/4,111)       ($32,758/2,997)    
Net asset value and offering price
per share – Class C (a)		   $ 22.21     $ 21.25     $ 10.91    
(Net assets/shares)     ($11,096/500)       ($93,121/4,382)       ($21,090/1,933)    
Net asset value and offering price
per share – Class Z (c)		   $ 23.64     $ 23.38     $ 10.80    
(Net assets/shares)     ($331,028/14,003)       ($1,241,277/53,093)       ($41,765/3,866)    

 

(a)  Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge and redemption fee.

(b)  On sales of $50,000 or more the offering price is reduced.

(c)  Redemption price per share is equal to net asset value less any applicable redemption fee.

*  Rounds to less than $500.

See accompanying notes to financial statements.


66


Columbia Acorn Family of Funds

Statements of Operations
For the Year Ended December 31, 2009

(in thousands)   Columbia
Acorn
Fund		   Columbia
Acorn
International		   Columbia
Acorn
USA		  
Investment Income:  
Dividend income   $ 97,974     $ 78,907     $ 7,290    
Dividend income from affiliates
(See Note 4)		     17,346       3,000       —    
Dividends from affiliated investment
company shares (See Note 4)		     —       —       —    
Interest income     459       149       23    
Securitites lending income     957       174       139    
      116,736       82,230       7,452    
Foreign taxes withheld     (1,865 )     (6,487 )     (5 )  
Total Investment Income     114,871       75,743       7,447    
Expenses:  
Management fee     77,909       26,444       9,677    
Administration fee     5,179       1,459       477    
12b-1 Service and Distribution fees:  
Class A     6,042       1,076       372    
Class B     3,969       279       162    
Class C     6,373       676       269    
Transfer agent fees:  
Class A     1,927       681       135    
Class B     1,309       122       62    
Class C     950       149       39    
Class Z     2,857       1,241       446    
Custody fees     921       2,572       51    
Trustees' fees     922       260       85    
Reports to shareholders     2,065       909       328    
Chief compliance officer expenses
(See Note 4)		     525       142       48    
Other expenses     1,431       504       223    
Total expenses     112,379       36,514       12,374    
Less custody fees paid indirectly     — *     — *     — *  
Less reimbursement of expenses by
Investment Advisor		     —       —       —    
Net Expenses     112,379       36,514       12,374    
Net Investment Income/(Loss)     2,492       39,229       (4,927 )  
Net Realized and Unrealized Gain (Loss)
on Portfolio Positions:		  
Net realized gain/(loss) on:  
Unaffiliated investments     (227,130 )     (248,697 )     (20,041 )  
Affiliated investments (See Note 4)     (100,539 )     (3,829 )     (110 )  
Foreign currency transactions and
forward foreign currency  
exchange contracts		     (229 )     4,140       —    
Foreign capital gains tax     —       (1,789 )     —    
Distributions from affiliated investment
company shares		     —       —       —    
Net realized loss     (327,898 )     (250,175 )     (20,151 )  
Net change in net unrealized
appreciation/(depreciation) on:		  
Unaffiliated investments     3,343,556       1,554,069       437,114    
Affiliated investments (See Note 4)     1,143,521       49,345       1,994    
Foreign currency translations and
forward foreign currency  
exchange contracts		     134       6,043       —    
Foreign capital gains tax     (200 )     (1,217 )     —    
Net change in unrealized appreciation/
(depreciation)		     4,487,011       1,608,240       439,108    
Net realized and unrealized gain     4,159,113       1,358,065       418,957    
Net Increase in Net Assets resulting
from Operations		   $ 4,161,605     $ 1,397,294     $ 414,030    

 

(in thousands)   Columbia
Acorn
International
Select		   Columbia
Acorn
Select		   Columbia
Thermostat
Fund		  
Investment Income:  
Dividend income   $ 7,141     $ 7,661     $ —    
Dividend income from affiliates
(See Note 4)		     —       —       —    
Dividends from affiliated investment
company shares (See Note 4)		     —       —       2,149    
Interest income     16       68       — *  
Securitites lending income     1       282       —    
      7,158       8,011       2,149    
Foreign taxes withheld     (521 )     —       —    
Total Investment Income     6,637       8,011       2,149    
Expenses:  
Management fee     3,039       12,761       128    
Administration fee     138       666       55    
12b-1 Service and Distribution fees:  
Class A     137       1,086       99    
Class B     29       581       245    
Class C     98       769       204    
Transfer agent fees:  
Class A     81       434       77    
Class B     15       241       77    
Class C     25       147       44    
Class Z     87       446       17    
Custody fees     213       297       —    
Trustees' fees     34       119       17    
Reports to shareholders     167       478       121    
Chief compliance officer expenses
(See Note 4)		     13       66       5    
Other expenses     168       292       106    
Total expenses     4,244       18,383       1,195    
Less custody fees paid indirectly     — *     — *     — *  
Less reimbursement of expenses by
Investment Advisor		     (5 )     —       (327 )  
Net Expenses     4,239       18,383       868    
Net Investment Income/(Loss)     2,398       (10,372 )     1,281    
Net Realized and Unrealized Gain (Loss)
on Portfolio Positions:		  
Net realized gain/(loss) on:  
Unaffiliated investments     (31,361 )     31,100       —    
Affiliated investments (See Note 4)     —       (71,935 )     (18,232 )  
Foreign currency transactions and
forward foreign currency  
exchange contracts		     (46 )     589       —    
Foreign capital gains tax     —       —       —    
Distributions from affiliated investment
company shares		     —       —       1    
Net realized loss     (31,407 )     (40,246 )     (18,231 )  
Net change in net unrealized
appreciation/(depreciation) on:		  
Unaffiliated investments     127,658       521,773       —    
Affiliated investments (See Note 4)     —       316,510       51,494    
Foreign currency translations and
forward foreign currency  
exchange contracts		     (25 )     (3 )     —    
Foreign capital gains tax     —       —       —    
Net change in unrealized appreciation/
(depreciation)		     127,633       838,280       51,494    
Net realized and unrealized gain     96,226       798,034       33,263    
Net Increase in Net Assets resulting
from Operations		   $ 98,624     $ 787,662     $ 34,544    

 

*  Rounds to less than $500.

See accompanying notes to financial statements.


67


Columbia Acorn Family of Funds

Statements of Changes in Net Assets

    Columbia
Acorn Fund		   Columbia Acorn
International		   Columbia
Acorn USA		  
Increase (Decrease) in Net Assets   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008 (a)   2009   2008 (a)   2009   2008 (a)  
Operations:  
Net investment income/(loss)   $ 2,492     $ 12,367     $ 39,229     $ 76,400     $ (4,927 )   $ (5,465 )  
Net realized gain/(loss) on investments, foreign currency
transactions, forward foreign currency exchange contracts and
foreign capital gains tax		     (227,359 )     234,120       (246,346 )     (283,342 )     (20,041 )     (102,173 )  
Net realized gain/(loss) on affiliated investments and distributions
from affiliated investment companies and affiliated investment
company shares		     (100,539 )     (245,832 )     (3,829 )     (95,523 )     (110 )     —    
Net change in net unrealized appreciation/(depreciation) on
investments, foreign currency translations, forward foreign
currency exchange contracts and foreign capital gains tax		     3,343,490       (5,424,645 )     1,558,895       (2,403,427 )     437,114       (492,195 )  
Net change in net unrealized appreciation/(depreciation)
on affiliated investment companies and affiliated investment
company shares		     1,143,521       (1,918,721 )     49,345       337       1,994       (3,773 )  
Net Increase/(Decrease) from Operations     4,161,605       (7,342,711 )     1,397,294       (2,705,555 )     414,030       (603,606 )  
Distributions to Shareholders From:  
Net investment income – Class A     —       —       (6,102 )     (1,020 )     —       —    
Net realized gain – Class A     —       (91,100 )     —       (9,807 )     —       (8,248 )  
Net investment income – Class B     —       —       (290 )     — *     —       —    
Net realized gain – Class B     —       (26,893 )     —       (1,332 )     —       (1,748 )  
Net investment income – Class C     —       —       (348 )     — *     —       —    
Net realized gain – Class C     —       (28,315 )     —       (2,146 )     —       (1,740 )  
Net investment income – Class Z     (20,981 )     (6,088 )     (53,467 )     (23,593 )     —       —    
Net realized gain – Class Z     —       (284,695 )     —       (68,973 )     —       (41,787 )  
Total Distributions to Shareholders     (20,981 )     (437,091 )     (60,207 )     (106,871 )     —       (53,523 )  
Share Transactions:  
Subscriptions – Class A     639,685       612,669       181,444       277,346       54,531       53,928    
Distributions reinvested – Class A     —       83,711       5,737       9,979       —       7,538    
Redemptions – Class A     (744,769 )     (1,151,023 )     (140,626 )     (207,715 )     (66,724 )     (69,749 )  
Net Increase/(Decrease) – Class A     (105,084 )     (454,643 )     46,555       79,610       (12,193 )     (8,283 )  
Subscriptions – Class B     100       1,991       14       1,704       5       71    
Distributions reinvested – Class B     —       24,675       264       1,209       —       1,615    
Redemptions – Class B     (224,032 )     (255,304 )     (14,833 )     (23,974 )     (9,892 )     (11,765 )  
Net Decrease – Class B     (223,932 )     (228,638 )     (14,555 )     (21,061 )     (9,887 )     (10,079 )  
Subscriptions – Class C     58,069       62,517       14,494       20,234       2,513       3,931    
Distributions reinvested – Class C     —       22,379       265       1,596       —       1,523    
Redemptions – Class C     (151,419 )     (287,537 )     (18,021 )     (43,103 )     (5,210 )     (10,090 )  
Net Increase/(Decrease) – Class C     (93,350 )     (202,641 )     (3,262 )     (21,273 )     (2,697 )     (4,636 )  
Subscriptions – Class Z     1,484,719       1,526,416       671,256       664,727       246,578       213,395    
Distributions reinvested – Class Z     17,690       251,789       38,426       64,910       —       37,687    
Redemptions – Class Z     (1,364,770 )     (2,162,613 )     (486,805 )     (912,602 )     (190,623 )     (190,501 )  
Net Increase/(Decrease) – Class Z     137,639       (384,408 )     222,877       (182,965 )     55,955       60,581    
Net Increase/(Decrease) from Share Transactions     (284,727 )     (1,270,330 )     251,615       (145,689 )     31,178       37,583    
Redemption Fees     —       —       259       354       —       —    
Increase from regulatory settlements (See Note 9)     40       —       1,210       —       5       —    
Total Increase/(Decrease) in Net Assets     3,855,937       (9,050,132 )     1,590,171       (2,957,761 )     445,213       (619,546 )  
Net Assets:  
Beginning of period     10,871,214       19,921,346       2,840,567       5,798,328       944,396       1,563,942    
End of period   $ 14,727,151     $ 10,871,214     $ 4,430,738     $ 2,840,567     $ 1,389,609     $ 944,396    
Undistributed/(Overdistributed) Net Investment Income or
(Accumulated Net Investment Loss)		   $ (20,794 )   $ (2,116 )   $ 39,113     $ 57,491     $ (275 )   $ (157 )  

 

(a)  Certain items in the prior year financial statements were reclassified to conform to the current year's presentation. Such reclassifications had no effect on net income or net assets.

*  Rounds to less than $500.

See accompanying notes to financial statements.


68


    Columbia Acorn
International Select		   Columbia
Acorn Select		   Columbia
Thermostat Fund		  
Increase (Decrease) in Net Assets   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008   2009   2008 (a)   2009   2008  
Operations:  
Net investment income/(loss)   $ 2,398     $ 2,451     $ (10,372 )   $ (17,307 )   $ 1,281     $ 3,146    
Net realized gain/(loss) on investments, foreign currency
transactions, forward foreign currency exchange contracts and
foreign capital gains tax		     (31,407 )     (46,780 )     31,689       (71,830 )     —       —    
Net realized gain/(loss) on affiliated investments and distributions
from affiliated investment companies and affiliated investment
company shares		     —       —       (71,935 )     (15,794 )     (18,231 )     (9,015 )  
Net change in net unrealized appreciation/(depreciation) on
investments, foreign currency translations, forward foreign
currency exchange contracts and foreign capital gains tax		     127,633       (101,043 )     521,770       (965,213 )     —       —    
Net change in net unrealized appreciation/(depreciation)
on affiliated investment companies and affiliated investment
company shares		     —       —       316,510       (365,076 )     51,494       (58,979 )  
Net Increase/(Decrease) from Operations     98,624       (145,372 )     787,662       (1,435,220 )     34,544       (64,848 )  
Distributions to Shareholders From:  
Net investment income – Class A     (456 )     —       —       —       (7 )     (1,051 )  
Net realized gain – Class A     —       (984 )     —       (25,410 )     —       (337 )  
Net investment income – Class B     —       —       —       —       —       (657 )  
Net realized gain – Class B     —       (189 )     —       (4,641 )     —       (371 )  
Net investment income – Class C     —       —       —       —       —       (361 )  
Net realized gain – Class C     —       (288 )     —       (4,551 )     —       (201 )  
Net investment income – Class Z     (3,077 )     (280 )     —       —       (115 )     (1,140 )  
Net realized gain – Class Z     —       (3,600 )     —       (39,523 )     —       (301 )  
Total Distributions to Shareholders     (3,533 )     (5,341 )     —       (74,125 )     (122 )     (4,419 )  
Share Transactions:  
Subscriptions – Class A     30,670       47,637       98,691       131,376       5,619       21,460    
Distributions reinvested – Class A     439       901       —       23,381       6       1,269    
Redemptions – Class A     (28,558 )     (21,936 )     (190,444 )     (377,780 )     (14,381 )     (14,939 )  
Net Increase/(Decrease) – Class A     2,551       26,602       (91,753 )     (223,023 )     (8,756 )     7,790    
Subscriptions – Class B     —       271       39       388       —       2,089    
Distributions reinvested – Class B     —       170       —       4,147       —       943    
Redemptions – Class B     (1,493 )     (3,345 )     (23,638 )     (41,288 )     (12,541 )     (14,056 )  
Net Decrease – Class B     (1,493 )     (2,904 )     (23,599 )     (36,753 )     (12,541 )     (11,024 )  
Subscriptions – Class C     1,872       7,847       6,147       8,177       1,960       17,881    
Distributions reinvested – Class C     —       248       —       3,639       —       510    
Redemptions – Class C     (3,109 )     (4,044 )     (21,888 )     (51,407 )     (10,176 )     (8,717 )  
Net Increase/(Decrease) – Class C     (1,237 )     4,051       (15,741 )     (39,591 )     (8,216 )     9,674    
Subscriptions – Class Z     127,520       175,091       278,829       387,091       2,684       23,041    
Distributions reinvested – Class Z     833       1,768       —       29,748       106       1,339    
Redemptions – Class Z     (59,794 )     (84,177 )     (310,353 )     (373,486 )     (6,183 )     (8,008 )  
Net Increase/(Decrease) – Class Z     68,559       92,682       (31,524 )     43,353       (3,393 )     16,372    
Net Increase/(Decrease) from Share Transactions     68,380       120,431       (162,617 )     (256,014 )     (32,906 )     22,812    
Redemption Fees     33       171       —       —       —       —    
Increase from regulatory settlements (See Note 9)     265       —       —       —       —       —    
Total Increase/(Decrease) in Net Assets     163,769       (30,111 )     625,045       (1,765,359 )     1,516       (46,455 )  
Net Assets:  
Beginning of period     246,906       277,017       1,319,800       3,085,159       137,073       183,528    
End of period   $ 410,675     $ 246,906     $ 1,944,845     $ 1,319,800     $ 138,589     $ 137,073    
Undistributed/(Overdistributed) Net Investment Income or
(Accumulated Net Investment Loss)		   $ 1,978     $ 2,875     $ (8,359 )   $ (180 )   $ 1,247     $ 88    

 

See accompanying notes to financial statements.


69


Columbia Acorn Family of Funds

Statements of Changes in Net Assets, continued

    Columbia
Acorn Fund		   Columbia Acorn
International		   Columbia
Acorn USA		  
Changes in Shares of Beneficial Interest:   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008   2009   2008   2009   2008  
Subscriptions – Class A     33,142       26,521       6,366       8,030       3,208       2,597    
Shares issued in reinvestment and capital gains – Class A     —       3,428       208       248       —       302    
Less shares redeemed – Class A     (39,655 )     (49,918 )     (5,549 )     (6,693 )     (3,839 )     (3,306 )  
Net Increase/(Decrease) – Class A     (6,513 )     (19,969 )     1,025       1,585       (631 )     (407 )  
Subscriptions – Class B     5       80       — *     44       — *     3    
Shares issued in reinvestment and capital gains – Class B     —       1,065       10       30       —       68    
Less shares redeemed – Class B     (12,472 )     (11,645 )     (588 )     (768 )     (582 )     (573 )  
Net Decrease – Class B     (12,467 )     (10,500 )     (578 )     (694 )     (582 )     (502 )  
Subscriptions – Class C     3,215       3,082       497       569       148       219    
Shares issued in reinvestment and capital gains – Class C     —       975       10       41       —       65    
Less shares redeemed – Class C     (8,764 )     (13,528 )     (740 )     (1,414 )     (327 )     (514 )  
Net Increase/(Decrease) – Class C     (5,549 )     (9,471 )     (233 )     (804 )     (179 )     (230 )  
Subscriptions – Class Z     75,517       63,561       23,146       19,040       14,152       9,874    
Shares issued in reinvestment and capital gains – Class Z     750       10,170       1,391       1,609       —       1,466    
Less shares redeemed – Class Z     (70,272 )     (93,561 )     (18,261 )     (30,912 )     (10,509 )     (8,493 )  
Net Increase/(Decrease) – Class Z     5,995       (19,830 )     6,276       (10,263 )     3,643       2,847    
Net Increase/(Decrease) in Shares of Beneficial Interest     (18,534 )     (59,770 )     6,490       (10,176 )     2,251       1,708    

 

*  Rounds to less than 500.

See accompanying notes to financial statements.


70


    Columbia Acorn
International Select		   Columbia
Acorn Select		   Columbia
Thermostat Fund		  
Changes in Shares of Beneficial Interest:   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008   2009   2008   2009   2008  
Subscriptions – Class A     1,653       1,986       5,917       6,192       646       1,952    
Shares issued in reinvestment and capital gains – Class A     22       30       —       901       1       147    
Less shares redeemed – Class A     (1,497 )     (959 )     (11,758 )     (18,425 )     (1,674 )     (1,454 )  
Net Increase/(Decrease) – Class A     178       1,057       (5,841 )     (11,332 )     (1,027 )     645    
Subscriptions – Class B     —       10       2       16       —       176    
Shares issued in reinvestment and capital gains – Class B     —       6       —       168       —       104    
Less shares redeemed – Class B     (85 )     (149 )     (1,512 )     (2,059 )     (1,410 )     (1,344 )  
Net Decrease – Class B     (85 )     (133 )     (1,510 )     (1,875 )     (1,410 )     (1,064 )  
Subscriptions – Class C     103       317       371       469       212       1,558    
Shares issued in reinvestment and capital gains – Class C     —       9       —       148       —       56    
Less shares redeemed – Class C     (174 )     (183 )     (1,474 )     (2,581 )     (1,207 )     (861 )  
Net Increase/(Decrease) – Class C     (71 )     143       (1,103 )     (1,964 )     (995 )     753    
Subscriptions – Class Z     6,808       7,667       15,845       17,670       307       1,994    
Shares issued in reinvestment and capital gains – Class Z     42       58       —       1,123       12       153    
Less shares redeemed – Class Z     (3,083 )     (3,845 )     (18,178 )     (18,669 )     (727 )     (783 )  
Net Increase/(Decrease) – Class Z     3,767       3,880       (2,333 )     124       (408 )     1,364    
Net Increase/(Decrease) in Shares of Beneficial Interest     3,789       4,947       (10,787 )     (15,047 )     (3,840 )     1,698    

 

See accompanying notes to financial statements.


71



Columbia Acorn Family of Funds

Financial Highlights

Columbia Acorn Fund

Class Z Shares   Year ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 17.71     $ 29.61     $ 29.71     $ 28.17     $ 26.45    
Income from Investment Operations  
Net investment income (a)     0.04       0.06       0.15 (b)     0.13       0.15    
Net realized and unrealized gain/(loss)     6.98       (11.29 )     2.17       3.92       3.28    
Total from Investment Operations     7.02       (11.23 )     2.32       4.05       3.43    
Less Distributions to Shareholders  
From net investment income     (0.05 )     (0.01 )     (0.12 )     (0.13 )     (0.15 )  
From net realized gains     —       (0.66 )     (2.30 )     (2.38 )     (1.56 )  
Total Distributions to Shareholders     (0.05 )     (0.67 )     (2.42 )     (2.51 )     (1.71 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 24.68     $ 17.71     $ 29.61     $ 29.71     $ 28.17    
Total Return (d)     39.65 %     (38.55 )%     7.69 %(e)(f)     14.45 %(e)     13.11 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     0.77 %     0.76 %     0.74 %     0.74 %     0.74 %  
Net investment income (g)     0.18 %     0.26 %     0.46 %     0.45 %     0.57 %  
Waiver/reimbursement     —       —       0.00 %(h)     0.01 %     0.02 %  
Portfolio turnover rate     27 %     21 %     20 %     22 %     16 %  
Net assets at end of period (in millions)   $ 10,527     $ 7,446     $ 13,038     $ 12,128     $ 10,399    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.03 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(h)  Rounds to less than 0.01%.

Columbia Acorn International

Class Z Shares   Year ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 23.13     $ 43.60     $ 40.31     $ 33.44     $ 29.03    
Income from Investment Operations  
Net investment income (a)     0.34       0.60       0.43       0.35       0.34    
Net realized and unrealized gain/(loss)     11.31       (20.26 )     6.56       10.94       5.87    
Total from Investment Operations     11.65       (19.66 )     6.99       11.29       6.21    
Less Distributions to Shareholders  
From net investment income     (0.53 )     (0.21 )     (0.34 )     (0.51 )     (0.72 )  
From net realized gains     —       (0.60 )     (3.36 )     (3.91 )     (1.08 )  
Total Distributions to Shareholders     (0.53 )     (0.81 )     (3.70 )     (4.42 )     (1.80 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(b)     —       —       —       —       —    
Increase from regulatory settlements     0.01       —       —       —       —    
Net Asset Value, End of Period   $ 34.26     $ 23.13     $ 43.60     $ 40.31     $ 33.44    
Total Return (c)     50.97 %     (45.89 )%     17.28 %(d)     34.53 %(d)     21.81 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     0.99 %     0.96 %     0.91 %     0.94 %     0.99 %  
Net investment income (e)     1.23 %     1.72 %     0.96 %     0.92 %     1.09 %  
Waiver/reimbursement     —       —       0.00 %(f)     0.01 %     0.02 %  
Portfolio turnover rate     31 %     38 %     28 %     31 %     27 %  
Net assets at end of period (in millions)   $ 3,728     $ 2,372     $ 4,918     $ 3,836     $ 2,629    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Total return at net asset value assuming all distributions reinvested.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(f)  Rounds to less than 0.01%.

See accompanying notes to financial statements.


72


Columbia Acorn USA

Class Z Shares   Year ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 16.39     $ 27.97     $ 28.66     $ 27.03     $ 25.20    
Income from Investment Operations  
Net investment income/(loss) (a)     (0.07 )     (0.07 )     (0.01 )(b)     (0.02 )     0.07    
Net realized and unrealized gain/(loss)     6.87       (10.55 )     1.03       2.26       3.18    
Total from Investment Operations     6.80       (10.62 )     1.02       2.24       3.25    
Less Distributions to Shareholders  
From net investment income     —       —       —       —       (0.05 )  
From net realized gains     —       (0.96 )     (1.71 )     (0.61 )     (1.37 )  
Total Distributions to Shareholders     —       (0.96 )     (1.71 )     (0.61 )     (1.42 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 23.19     $ 16.39     $ 27.97     $ 28.66     $ 27.03    
Total Return (d)     41.49 %     (39.22 )%     3.46 %(e)(f)     8.28 %(e)     12.98 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     1.03 %     1.01 %     0.98 %     0.98 %     1.01 %  
Net investment income/(loss) (g)     (0.36 )%     (0.32 )%     (0.03 )%     (0.07 )%     0.28 %  
Waiver/reimbursement     —       —       0.00 %(h)     0.01 %     0.01 %  
Portfolio turnover rate     28 %     23 %     21 %     13 %     13 %  
Net assets at end of period (in millions)   $ 1,158     $ 758     $ 1,214     $ 1,214     $ 937    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.09 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(h)  Rounds to less than 0.01%.

Columbia Acorn International Select

Class Z Shares   Year ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 18.19     $ 32.02     $ 27.97     $ 20.57     $ 18.02    
Income from Investment Operations  
Net investment income (a)     0.17       0.28       0.14 (b)     0.10       0.13    
Net realized and unrealized gain/(loss)     5.50       (13.53 )     5.96       7.35       2.70    
Total from Investment Operations     5.67       (13.25 )     6.10       7.45       2.83    
Less Distributions to Shareholders  
From net investment income     (0.24 )     (0.04 )     (0.28 )     (0.05 )     (0.28 )  
From net realized gains     —       (0.54 )     (1.77 )     —       —    
Total Distributions to Shareholders     (0.24 )     (0.58 )     (2.05 )     (0.05 )     (0.28 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(c)     —       —       —       —       —    
Increase from regulatory settlements     0.02       —       —       —       —    
Net Asset Value, End of Period   $ 23.64     $ 18.19     $ 32.02     $ 27.97     $ 20.57    
Total Return (d)     31.52 %     (42.10 )%     21.86 %(e)     36.27 %(e)     15.98 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (f)     1.20 %     1.21 %     1.18 %     1.27 %     1.45 %  
Net investment income (f)     0.84 %     1.09 %     0.44 %     0.44 %     0.72 %  
Waiver/reimbursement     —       —       0.00 %(g)     0.01 %     0.04 %  
Portfolio turnover rate     56 %     68 %     57 %     47 %     39 %  
Net assets at end of period (in millions)   $ 331     $ 186     $ 204     $ 129     $ 74    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.07 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(g)  Rounds to less than 0.01%.

See accompanying notes to financial statements.


73


Columbia Acorn Family of Funds

Financial Highlights, continued

Columbia Acorn Select

Class Z Shares   Year ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 14.07     $ 28.41     $ 26.59     $ 22.77     $ 21.13    
Income from Investment Operations  
Net investment loss (a)     (0.08 )     (0.12 )     (0.07 )     (0.06 )     (0.03 )  
Net realized and unrealized gain/(loss)     9.39       (13.53 )     2.53       4.51       2.35    
Total from Investment Operations     9.31       (13.65 )     2.46       4.45       2.32    
Less Distributions to Shareholders  
From net investment income     —       —       —       (0.04 )     —    
From net realized gains     —       (0.69 )     (0.64 )     (0.59 )     (0.68 )  
Total Distributions to Shareholders     —       (0.69 )     (0.64 )     (0.63 )     (0.68 )  
Net Asset Value, End of Period   $ 23.38     $ 14.07     $ 28.41     $ 26.59     $ 22.77    
Total Return (b)     66.17 %     (49.18 )%(c)     9.20 %(d)     19.68 %(d)     11.08 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     0.99 %     0.95 %     0.91 %     0.96 %     0.99 %  
Net investment loss (e)     (0.47 )%     (0.51 )%     (0.24 )%     (0.26 )%     (0.16 )%  
Waiver/reimbursement     —       —       0.00 %(f)     0.02 %     0.03 %  
Portfolio turnover rate     19 %     28 %     14 %     21 %     19 %  
Net assets at end of period (in millions)   $ 1,241     $ 780     $ 1,571     $ 909     $ 688    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by 0.101% and $0.01, respectively.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(f)  Rounds to less than 0.01%.

Columbia Thermostat Fund

Class Z Shares   Year ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 8.19     $ 12.26     $ 12.57     $ 12.50     $ 13.12    
Income from Investment Operations  
Net investment income (a)     0.13       0.24       0.52       0.49       0.43    
Net realized and unrealized gain/(loss)     2.51       (3.96 )     0.53       0.84       0.28    
Total from Investment Operations     2.64       (3.72 )     1.05       1.33       0.71    
Less Distributions to Shareholders  
From net investment income     (0.03 )     (0.28 )     (0.57 )     (0.54 )     (0.42 )  
From net realized gains     —       (0.07 )     (0.79 )     (0.72 )     (0.91 )  
Total Distributions to Shareholders     (0.03 )     (0.35 )     (1.36 )     (1.26 )     (1.33 )  
Net Asset Value, End of Period   $ 10.80     $ 8.19     $ 12.26     $ 12.57     $ 12.50    
Total Return (b)(c)     32.29 %     (30.53 )%     8.49 %     10.86 %     5.50 %  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (d)(e)     0.25 %     0.25 %     0.25 %     0.25 %     0.25 %  
Net investment income (e)     1.48 %     2.23 %     4.05 %     3.84 %     3.28 %  
Waiver/reimbursement     0.14 %     0.08 %     0.15 %     0.13 %     0.11 %  
Portfolio turnover rate     17 %     130 %     128 %     66 %     96 %  
Net assets at end of period (in millions)   $ 42     $ 35     $ 36     $ 31     $ 26    

 

(a)  Per share data was calculated using the average shares outstanding during the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(d)  Does not include expenses of the investment companies in which the Fund invests.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

See accompanying notes to financial statements.


74



Columbia Acorn Family of Funds

Notes to Financial Statements

1.  Nature of Operations

Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA, Columbia Acorn International Select, Columbia Acorn Select and Columbia Thermostat Fund (the "Funds") are each a series of Columbia Acorn Trust (the "Trust"), an open-end management investment company organized as a Massachusetts business trust. The investment objective of each Fund is to seek long-term capital appreciation.

Columbia Thermostat Fund pursues its investment objective by investing in shares of other mutual funds. As a "fund of funds," under normal circumstances the Fund allocates at least 95% of its net assets among a selected group of stock and bond mutual funds ("portfolio funds") according to the current level of the S&P 500 Index in relation to predetermined ranges set by the Advisor. The Fund may invest up to 5% of its net assets plus any cash received that day in cash, repurchase agreements, high quality short-term paper and government securities.

Each Fund may issue an unlimited number of shares. Each Fund currently has four classes of shares: Class A, Class B, Class C and Class Z. Effective February 29, 2008, the Funds no longer offer Class B shares (other than through dividend reinvestment).

Class A shares are sold with a front-end sales charge. Class A shares bought without an initial sales charge in accounts aggregating $1 million up to $50 million at the time of purchase are subject to a 1.00% contingent deferred sales charge ("CDSC") if the shares are redeemed within 12 months of the date of purchase.

Class B shares are subject to a CDSC if redeemed within six years of purchase. Class B shares will convert to Class A shares automatically eight years after purchase.

Class C shares are offered at net asset value but are subject to a CDSC on redemptions made within one year after purchase.

Class Z shares are offered at net asset value. There are certain restrictions on who may purchase Class Z shares. Generally, Class Z shares of a Fund may be exchanged for shares of another fund distributed by Columbia Management Distributors, Inc. at no additional charge.

Columbia Acorn International and Columbia Acorn International Select impose a 2.00% redemption fee on shares that are redeemed within 60 days or less of purchase. See the discussion of Fund policies regarding redemption fees in the Funds' prospectuses for more information.

The financial highlights for the Fund's Class A, Class B and Class C shares are presented in a separate annual report.

Differences in class expenses may result in payment of different dividend distributions for each class. All of the Funds' share classes have equal rights with respect to voting, subject to Fund or class specific matters.

On September 29, 2009, Bank of America Corporation, the indirect parent company of Columbia Wanger Asset Management, L.P. ("CWAM"), entered into an agreement to sell a portion of the asset management business of Columbia Management Group, LLC ("Columbia Management") to Ameriprise Financial, Inc. The transaction ("Transaction") includes a sale of CWAM. The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the spring of 2010.

2.  Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Management has evaluated the events and transactions that have occurred through February 18, 2010, the date the financial statements were issued, and noted no items requiring adjustment of the financial statements or additional disclosures. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.

>Security valuation

Securities of the Funds are valued at market value or, if a market quotation for a security is not readily available or is deemed not to be reliable because of events or circumstances that have occurred between the market quotation and the time as of which the security is to be valued, the security is valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. With respect to Columbia Thermostat Fund, investments in portfolio funds are valued at their net asset values as reported by the portfolio funds. A security traded on a securities exchange or in an over-the-counter market in which transaction prices are reported is valued at the last sales price at the time of valuation. A security traded principally on NASDAQ is valued at the NASDAQ official closing price. Mutual Funds and Exchange Traded Funds are valued at their closing net asset value as reported to NASDAQ. A security for which there is no reported sale on the valuation date is valued


75


Columbia Acorn Family of Funds

Notes to Financial Statements, continued

at the latest bid quotation. Short-term investments maturing in 60 days or less are valued at amortized cost, which approximates market value. A security for which a market quotation is not readily available and any other assets are valued at its fair value determined in good faith under consistently applied procedures established by the Board of Trustees. The Funds have retained an independent statistical fair value pricing service that employs a systematic methodology to assist in the fair valuation process for securities principally traded in a foreign market in order to adjust for possible changes in value that may occur between the close of the foreign exchange and the time as of which the securities are to be valued. If a security is valued at fair value, that value may be different from the last quoted market price for the security.

Various inputs are used in determining the value of each Fund's investments. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

• Level 3 – significant unobservable inputs (including management's own assumptions in determining the value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Examples of the types of securities in which the Funds would typically invest and how they are classified within this hierarchy are as follows. Typical Level 1 securities include exchange traded domestic equities, mutual funds whose NAVs are published each day and exchange traded foreign equities that are not statistically fair valued. Typical Level 2 securities include exchange traded foreign equities that are statistically fair valued, forward foreign currency exchange contracts and short-term investments valued at amortized cost. Additionally, securities fair valued by the Fund's Valuation Committee that rely on significant observable inputs are also included in level 2. Typical Level 3 securities include any security fair valued by the Funds' Valuation Committee that relies on significant unobservable inputs.

>Repurchase agreements

Each Fund may engage in repurchase agreement transactions. Each Fund, through its custodian, receives delivery of underlying securities collateralizing repurchase agreements. The counterparty is required to maintain collateral that is at all times at least equal to the repurchase price including interest. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.

>Foreign currency translations

Values of investments denominated in foreign currencies are converted into U.S. dollars using the New York spot market rate of exchange at the time of valuation. Purchases and sales of investments and dividend and interest income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gain or loss resulting from changes in foreign exchange rates is included with net realized and unrealized gain or loss from investments, as appropriate.

>Forward foreign currency exchange contracts

Columbia Acorn International may enter into forward foreign currency exchange contracts in order to seek to minimize the risk from adverse changes in the relationship between the U.S. dollar and foreign currencies. A forward foreign currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Forward foreign currency exchange contracts are valued at the interpolated forward exchange rate of the underlying currencies and any market gain or loss, arising from the difference between the original value and the current value of such contract, is included as a component of unrealized gain/(loss) on the Statements of Operations. Open forward foreign currency exchange contracts, if any, are disclosed in the Notes to the Statement of Investments. As forward foreign currency exchange contracts are closed the resulting gain or loss, arising from the difference between the original value of the contract and the closing value of such contract, is included as a component of realized gain/(loss) on the Statements of Operations.

A forward foreign currency exchange contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. In addition, a Fund could be exposed to counterparty risks if counterparties to the contracts are unable to meet the terms of their contracts. The counterparty risk exposure is, therefore, closely monitored and contracts are only executed with high credit quality financial institutions.


76


A Fund may use forward foreign currency exchange contracts to buy or sell a foreign currency when the Advisor believes it has exposure to a foreign currency which may suffer or enjoy a movement against another foreign currency to which the Fund has exposure. A Fund will not attempt to hedge all of its foreign portfolio positions.

For additional information on derivative instruments, please see Note 5.

>Securities lending

Each Fund may lend securities up to one-third of the value of its total assets to certain approved brokers, dealers and other financial institutions to earn additional income. In lending its securities, the Fund retains the benefits of owning the securities, including receipt of dividends or interest generated by the security. Each Fund also receives a fee for the loan. Each Fund has the ability to recall the loans at any time and could do so in order to vote proxies or to sell the loaned securities. Each loan is collateralized by cash that exceeds the value of the securities on loan. The market value of the loaned securities is determined daily at the close of business of each Fund and any additional required collateral is delivered to each Fund on the next business day. Each Fund has elected to invest the cash collateral in the Dreyfus Government Cash Management Fund, and the income earned is paid to each Fund, net of any fees remitted to Goldman Sachs Agency Lending as the lending agent and net of any borrower rebates. The Funds' advisor, CWAM, does not retain any fees earned by the lending program. Generally, in the event of borrower default, a Fund has the right to use the collateral to offset any losses incurred. In the event a Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a potential loss to a Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of loss with respect to the investment of collateral.

The net lending income earned in 2009 by each Fund is included in the Statements of Operations.

>Security transactions and investment income

Security transactions, investment income and shareholder fund transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income and realized gain distributions from other funds are recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the information is available to the Funds. Interest income is recorded on the accrual basis and includes amortization of discounts on debt obligations when required for federal income tax purposes. Realized gains and losses from security transactions are recorded on an identified cost basis.

Awards, if any, from class action litigation related to securities owned may be recorded as a reduction of cost of those securities. If the applicable securities are no longer owned, the proceeds are recorded as realized gains.

The Funds estimate the tax character of distributions from real estate investment trusts ("REITs"). Distributions received in excess of income are recorded as a reduction of the cost of the related investments. If the applicable securities are no longer owned, any distributions received in excess of income are recorded as realized gains.

>Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale at the issuer's expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Trustees.

>Fund share valuation

Fund shares are sold and redeemed on a continuing basis at net asset value, subject to any applicable sales charge. Net asset value per share is determined daily as of the close of trading on the New York Stock Exchange ("NYSE") on each day the NYSE is open for trading. Generally, income, expenses and realized and unrealized gain/(losses) of a Fund are allocated to each class proportionately on a daily basis for purposes of determining the net asset value of each class. The Rule 12b-1 service and distribution fees, if any, and transfer agency fees are charged to each specific class as expenses are incurred. Redemption fees are accounted for as an addition to paid in capital for purposes of determining the net asset value of each class.

>Custody fees/credits

Custody fees are reduced based on each Fund's cash balances maintained with the custodian. The amount is disclosed as a reduction of total expenses on the Statements of Operations.

>Federal income taxes

The Funds have complied with the provisions of the Internal Revenue Code available to regulated investment companies and, in the manner provided therein, distribute all their taxable income, as well as any net realized gain on sales of investments and foreign currency transactions reportable for federal income tax purposes. Columbia Thermostat Fund distributes all of its


77


Columbia Acorn Family of Funds

Notes to Financial Statements, continued

taxable income, as well as any net realized gain on sales of portfolio fund shares and any distributions of net realized gains received by the Fund from its portfolio funds, reportable for federal income tax purposes. Accordingly, the Funds paid no federal income taxes and no federal income tax provision was required.

>Foreign capital gains taxes

Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 15%. The Funds accrue for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction.

>Distributions to Shareholders

Distributions to shareholders are recorded on the ex-dividend date.

>Indemnification

In the normal course of business, the Trust on behalf of the Funds enters into contracts that contain a variety of representations and warranties and that provide general indemnities. A Fund's maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Trust's organizational documents, the trustees and officers of the Trust are indemnified against certain liabilities that may arise out of their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be minimal.

3.  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. Reclassifications are made to each Fund's capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended December 31, 2009, permanent book and tax basis differences resulting primarily from differing treatments for proceeds from litigation settlements, net operating losses, foreign currency transactions, passive foreign investment company ("PFIC") adjustments and foreign capital gains tax adjustments were identified and reclassified among the components of each Fund's net assets as follows:

    Undistributed/
(Overdistributed)
or (Accumulated)
Net Investment
Income (Loss)		   Accumulated
Net Realized
Gain/(Loss)		   Paid-in
Capital		  
(in thousands)  
Columbia Acorn Fund   $ (189 )   $ 229     $ (40 )  
Columbia Acorn International     2,600       (2,551 )     (49 )  
Columbia Acorn USA     4,809       —       (4,809 )  
Columbia Acorn International
Select		     238       28       (266 )  
Columbia Acorn Select     2,193       (589 )     (1,604 )  
Columbia Thermostat Fund     — *     — *     —    

 

*Represents less than $500.

Net investment income and net realized gains/(losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the years ended December 31, 2009 and December 31, 2008 was as follows:

December 31, 2009   Ordinary
Income*		   Long-Term
Capital Gains		  
(in thousands)  
Columbia Acorn Fund   $ 20,981     $ —    
Columbia Acorn International     60,207       —    
Columbia Acorn USA     —       —    
Columbia Acorn International Select     3,533       —    
Columbia Acorn Select     —       —    
Columbia Thermostat Fund     122       —    
December 31, 2008   Ordinary
Income*		   Long-Term
Capital Gains		  
(in thousands)  
Columbia Acorn Fund   $ 24,585     $ 412,506    
Columbia Acorn International     32,574       74,297    
Columbia Acorn USA     9       53,514    
Columbia Acorn International Select     601       4,740    
Columbia Acorn Select     —       74,125    
Columbia Thermostat Fund     3,595       824    

 

*For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of December 31, 2009, the components of distributable earnings on a tax basis were as follows:

    Undistributed
Ordinary
Income		   Undistributed
Long-Term
Capital Gains		   Net Unrealized
Appreciation
(Depreciation)*		  
(in thousands)  
Columbia Acorn Fund   $ 13,908     $ —     $ 3,885,370    
Columbia Acorn International     78,049       —       1,017,469    
Columbia Acorn USA     —       —       284,766    
Columbia Acorn International
Select		     6,032       —       77,602    
Columbia Acorn Select     —       —       222,742    
Columbia Thermostat Fund     1,276       —       (1,424 )  

 

*The differences between book-basis and tax-basis net unrealized appreciation/(depreciation) are primarily due to deferral of losses from wash sales and PFIC adjustments.

The following capital loss carryforwards, determined as of December 31, 2009, may be available to reduce taxable income


78


arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

    Year of Expiration      
    2010   2011-
2015		   2016   2017   Total  
(in thousands)  
Columbia
Acorn Fund		   $ —     $ —     $ —     $ 409,911     $ 409,911    
Columbia Acorn
International		     —       —       135,487       489,443       624,930    
Columbia Acorn USA     1,518 *     —       76,008       36,216       113,742    
Columbia Acorn
International Select		     —       —       30,442       46,457       76,899    
Columbia Acorn Select     —       —       12,271       115,445       127,716    
Columbia
Thermostat Fund		     —       —       5,193       21,738       26,931    

 

*Remains from Columbia Acorn USA's merger with Stein Roe Small Company Growth Fund on 7/26/2002. Utilization of Stein Roe Small Company Growth Fund's losses could be subject to limitations imposed by the Internal Revenue Code.

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of December 31, 2009, post-October currency and capital losses attributed to security transactions were deferred to January 1, 2010 as follows:

    Currency   Capital  
(in thousands)  
Columbia Acorn Fund   $ —     $ 6,311    
Columbia Acorn International     —       —    
Columbia Acorn USA     —       10,041    
Columbia Acorn International Select     —       1,985    
Columbia Acorn Select     95       —    
Columbia Thermostat Fund     —       624    

 

Management is required to determine whether a tax position of the Funds is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized by the Funds is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions 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). The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

4.  Transactions with Affiliates

CWAM is a wholly owned subsidiary of Columbia Management, which in turn is an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"). CWAM furnishes continuing investment supervision to the Funds and is responsible for the overall management of the Funds' business affairs.

Under each Fund's investment advisory agreement, management fees were accrued daily based on each Fund's average daily net assets and paid monthly to CWAM at the annual rates shown in the table below for each Fund.

Columbia Acorn Fund

Average Daily Net Assets   Annual
Fee Rate		  
Up to $700 million     0.74 %  
$700 million to $2 billion     0.69 %  
$2 billion to $6 billion     0.64 %  
$6 billion and over     0.63 %  

 

Columbia Acorn International

Average Daily Net Assets   Annual
Fee Rate		  
Up to $100 million     1.19 %  
$100 million to $500 million     0.94 %  
$500 million and over     0.74 %  

 

Columbia Acorn USA

Average Daily Net Assets   Annual
Fee Rate		  
Up to $200 million     0.94 %  
$200 million to $500 million     0.89 %  
$500 million to $2 billion     0.84 %  
$2 billion to $3 billion     0.80 %  
$3 billion and over     0.70 %  

 

Columbia Acorn International Select

Average Daily Net Assets   Annual
Fee Rate		  
Up to $500 million     0.94 %  
$500 million and over     0.90 %  

 

Columbia Acorn Select

Average Daily Net Assets   Annual
Fee Rate		  
Up to $700 million     0.85 %  
$700 million to $2 billion     0.80 %  
$2 billion to $3 billion     0.75 %  
$3 billion and over     0.70 %  

 

Columbia Thermostat Fund

    Annual
Fee Rate		  
All Average Daily Net Assets     0.10 %  

 


79


Columbia Acorn Family of Funds

Notes to Financial Statements, continued

For the year ended December 31, 2009, the Funds' effective investment advisory fee rates were as follows:

Columbia Acorn Fund     0.65 %  
Columbia Acorn International     0.78 %  
Columbia Acorn USA     0.87 %  
Columbia Acorn International Select     0.94 %  
Columbia Acorn Select     0.82 %  
Columbia Thermostat Fund     0.10 %  

 

>Expense Limit

CWAM has voluntarily agreed to reimburse the ordinary operating expenses (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodian charges relating to overdrafts, if any) after giving effect to any balance credits from the Funds' custodian, exceeding 1.45% annually of the average daily net assets for Columbia Acorn International Select and 1.35% annually of the average daily net assets for Columbia Acorn Select. This arrangement may be modified or terminated by either the Funds or CWAM on 30 days notice.

CWAM has contractually agreed to waive fees and/or reimburse expenses of Columbia Thermostat Fund so that the ordinary operating expenses (exclusive of interest and fees on borrowings, and expenses associated with the Fund's investment in other investment companies, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, will not exceed 0.25% annually of the Fund's average daily net assets through April 30, 2010. There is no guarantee that this arrangement will continue thereafter.

Expenses reimbursed by CWAM to Columbia Acorn International Select and Columbia Thermostat Fund for year ended December 31, 2009, were $4,729 and $326,907, respectively.

CWAM provides administrative services and receives an administration fee from the Funds at the following annual rates:

Columbia Acorn Trust

Aggregate Average Daily
Net Assets of the Trust:		   Annual
Fee Rate		  
Up to $8 billion     0.050 %  
$8 billion to $16 billion     0.040 %  
$16 billion to $35 billion     0.030 %  
$35 billion to $45 billion     0.025 %  
$45 billion and over     0.015 %  

 

For the year ended December 31, 2009, each Fund's effective administration fee rate was 0.04% of average daily net assets. CWAM has delegated to Columbia Management Advisors, LLC, an indirect, wholly owned subsidiary of BOA, responsibility to provide certain sub-administrative services to the Funds.

Columbia Management Distributors, Inc. ("CMDI"), a wholly owned subsidiary of BOA, is the Funds' principal underwriter.

Each Fund has adopted a Rule 12b-1 (distribution and service) plan which requires it to pay CMDI a monthly service fee equal to 0.25% annually of the average daily net assets attributable to Class A, Class B and Class C shares and a monthly distribution fee equal to 0.50% and 0.75%, annually, of the average daily net assets attributable to Class B and Class C shares, respectively. CMDI receives no compensation with respect to Class Z shares.

Columbia Management Services, Inc. (the "Transfer Agent"), an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds. For such services, each Fund pays the Transfer Agent a monthly fee at the annual rate of $17.00 per account. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses and sub-transfer agency expenses.

Certain officers and trustees of the Trust are also officers of CWAM. The Trust makes no direct payments to its officers and trustees who are affiliated with CWAM.

The Board of Trustees appointed a Chief Compliance Officer to the Trust in accordance with federal securities regulations. The Funds, along with other affiliated funds, pay their pro-rata share of the expenses associated with the Office of the Chief Compliance Officer. Those expenses are disclosed separately as "Chief compliance officer expenses" in the Statements of Operations.

The Trust offers a deferred compensation plan for its independent trustees. Under that plan, a trustee may elect to defer all or a portion of his or her compensation. Amounts deferred are retained by the Trust and may represent an unfunded obligation of the Trust. The value of amounts deferred is determined by reference to the change in value of Class Z shares of one or more series of the Trust or a money market fund specified by the trustee. Benefits under the deferred compensation plan are payable when the trustee ceases to be a member of the Board of Trustees.

An affiliated person of a Fund may include any company in which a Fund owns five percent or more of its outstanding voting shares. On December 31, 2009, Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA and Columbia Acorn Select each held five percent or more of the outstanding voting securities of one or more companies.


80


Details of investments in those affiliated companies are presented on pages 29, 30, 39, 50 and 61, respectively.

During the year ended December 31, 2009, the Funds engaged in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common directors/trustees, and/or common officers. Those transactions complied with Rule 17a-7 under the Investment Company Act of 1940 and were as follows:

    Purchases   Sales  
(in thousands)  
Columbia Acorn International   $ 7,422     $ —    
Columbia Acorn Select     —       1,655    

 

5.  Objectives and Strategies for Investing in Derivative Instruments

Columbia Acorn International uses derivatives instruments including forward foreign currency exchange contracts in order to meet its investment objectives. The Fund employs strategies in differing combinations to permit it to increase, decrease or change the level of exposure to market risk factors. The achievement of any strategy involving derivatives depends on analysis of various risk factors, and if the strategies for the use of derivatives do not work as intended, the Fund may not achieve its investment objectives.

In pursuit of its investment objectives, the Fund is exposed to the following market risk:

Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign-currency-denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

The following notes provide more detailed information about the derivative type held by the Columbia Acorn International:

Forward Foreign Currency Exchange Contracts

• The Fund entered into forward foreign currency exchange contracts to shift its investment exposure from one currency to another.

• The Fund used forward foreign currency exchange contracts to shift its U.S. dollar exposure in order to achieve a representative weighted mix of major currencies relative to its benchmark and/or to recover an underweight country exposure in its portfolio relative to its benchmark.

Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between the trade and settlement dates of the contract. The Fund may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. The Fund may also enter into these contracts to reduce the exposure to adverse price movements in certain other foreign-currency-denominated assets. Contracts to buy are used to acquire exposure to foreign currencies, while contracts to sell are used to reduce the exposure to foreign exchange rate fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become realized at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Fund's portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Fund could also be exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.

During the year ended December 31, 2009, Columbia Acorn International entered into 122 forward foreign currency exchange contracts.

The following table is a summary of the value of the Columbia Acorn International's derivative instruments as of December 31, 2009.

  Fair Value of Derivative Instruments

    Asset  
    Statement of Assets
and Liabilities 		  Fair
Value		  
(in thousands)  


  Unrealized appreciation on
forward foreign currency
exchange contracts 		  $6,689  
    Liability  
    Statement of Assets
and Liabilities 		  Fair
Value		  
(in thousands)  


  Unrealized depreciation on
forward foreign currency
exchange contracts 		  $(4,205)  

 


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Columbia Acorn Family of Funds

Notes to Financial Statements, continued

The effect of derivative instruments on the Columbia Acorn International's Statement of Operations for the year ended December 31, 2009 was as follows:

Amount of Realized Gain or (Loss) and Change in Unrealized Appreciation or (Depreciation)
on Derivatives Recognized in Income

    Risk
Exposure		   Realized
Gain/(Loss)		   Change
in
Unrealized
Appreciation/
(Depreciation)		  
(in thousands)  
Forward foreign
currency
exchange
contracts 		  Foreign Exchange
Rate Risk		   $ 4,507     $ 5,763    

 

6.  Borrowing Arrangements

The Trust participated in a $150 million credit facility, along with another Trust managed by CWAM, which was entered into to facilitate portfolio liquidity. Under the facility, interest is charged to each participating fund based on its borrowings at a rate per annum equal to the higher of Federal Funds Rate or Overnight LIBOR plus 0.75%. In addition, a commitment fee of 0.12% per annum of the unutilized line of credit was accrued and apportioned among the participating funds based on their relative net assets. The commitment fee is included in "Other expenses" in the Statements of Operations. No amounts were borrowed by any Fund under this facility for the year ended December 31, 2009. The Trust enters into this line of credit for one year durations. The Trust has secured the line of credit for the entire year of 2010.

7.  Investment Transactions

The aggregate cost of purchases and proceeds from sales, other than short-term obligations, for the year ended December 31, 2009, were:

Columbia Acorn Fund

(in thousands)  
Investment securities  
Purchases   $ 3,110,424    
Proceeds from sales     3,561,995    

 

Columbia Acorn International

(in thousands)  
Investment securities  
Purchases   $ 1,154,358    
Proceeds from sales     1,014,864    

 

Columbia Acorn USA

(in thousands)  
Investment securities  
Purchases   $ 355,188    
Proceeds from sales     305,733    

 

Columbia Acorn International Select

(in thousands)  
Investment securities  
Purchases   $ 233,777    
Proceeds from sales     170,251    

 

Columbia Acorn Select

(in thousands)  
Investment securities  
Purchases   $ 280,494    
Proceeds from sales     568,076    

 

Columbia Thermostat Fund

(in thousands)  
Investment securities  
Purchases   $ 22,134    
Proceeds from sales     56,558    

 

8.  Redemption Fees

For the year ended December 31, 2009, the redemption fees imposed by Columbia Acorn International and Columbia Acorn International Select amounted to approximately $259,441 and $33,449, respectively, and are accounted for as additions to paid in capital.

9.  Regulatory Settlements with Third Parties

During the year ended December 31, 2009, Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA and Columbia Acorn International Select received payments totaling $39,819, $1,210,287, $4,593 and $265,461, respectively, representing distributions from a fair fund established in connection with a regulatory settlement between the Securities and Exchange Commission and a third party broker dealer relating to alleged market timing and late trading in mutual funds, including the Funds. The payments have been included in "Increase from regulatory settlements" on the Statements of Changes in Net Assets.

10.  Legal Proceedings

The Trust, CWAM and the Trustees of the Trust (collectively, the "Columbia defendants") are named as defendants in class and derivative complaints that have been consolidated in a Multi-District Action (the "MDL Action") in the federal district court of Maryland. These lawsuits contend that defendants permitted certain investors to market time their trades in certain Columbia Acorn Funds. The MDL Action is ongoing. However, all claims against the Trust and the independent trustees of the Trust have been dismissed.

The Trust and CWAM are also defendants in a class action lawsuit that alleges, in summary, that the Trust and CWAM exposed shareholders of Columbia Acorn International Fund to trading by market timers by allegedly: (a) failing to properly


82


evaluate daily whether a significant event affecting the value of the Fund's securities had occurred after foreign markets had closed but before the calculation of the Fund's net asset value ("NAV"); (b) failing to implement the Fund's portfolio valuation and share pricing policies and procedures; and (c) failing to know and implement applicable rules and regulations concerning the calculation of NAV (the "Fair Valuation Lawsuit"). The Seventh Circuit ruled that the plaintiffs' state law claims were preempted under federal law resulting in the dismissal of plaintiffs' complaint. Plaintiffs appealed the Seventh Circuit's ruling to the United States Supreme Court. The Supreme Court reversed the Seventh Circuit's ruling on jurisdictional grounds and the case was ultimately remanded to the state court.

On March 21, 2005, a class action complaint was filed against the Trust and CWAM seeking to rescind the CDSC assessed upon redemption of Class B shares of Columbia Acorn Funds due to the alleged market timing of the Columbia Acorn Funds (the "CDSC Lawsuit"). In addition to the rescission of sales charges, plaintiffs seek recovery of actual damages, attorneys' fees and costs. The case had been transferred to the MDL Action in the federal district court of Maryland.

On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL Action, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL Action described above, including the CDSC and Fair Valuation Lawsuits. The settlement is subject to court approval.

Columbia Acorn Trust and CWAM intend to defend these suits vigorously. CWAM believes that the lawsuits are not likely to materially affect its ability to provide investment management services to the Funds.


83



Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of
Columbia Acorn Trust:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA, Columbia Acorn International Select, Columbia Acorn Select and Columbia Thermostat Fund (each a series of the Columbia Acorn Trust, hereinafter referred to as the "Funds") at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Chicago, Illinois
February 18, 2010


84


Columbia Acorn Family of Funds

Federal Income Tax Information (in thousands) (unaudited) — Class A, B, C and Z shares

Columbia Acorn Fund

100.00% of the ordinary income distributed by the Fund, for the fiscal year ended December 31, 2009 qualified for the corporate dividends received deduction.

For non-corporate shareholders 100.00%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.

Columbia Acorn International

Foreign taxes paid during the fiscal year ended December 31, 2009, of $6,483 are being passed through to shareholders. This represents $0.05 per share. Eligible shareholders may claim this amount as a foreign tax credit.

Gross income derived from sources within foreign countries was $81,906 ($0.63 per share) for the fiscal year ended December 31, 2009.

For non-corporate shareholders 82.95%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.

Columbia Acorn International Select

Foreign taxes paid during the fiscal year ended December 31, 2009, of $521 are being passed through to shareholders. This represents $0.03 per share. Eligible shareholders may claim this amount as a foreign tax credit.

Gross income derived from sources within foreign countries was $6,377 ($0.37 per share) for the fiscal year ended December 31, 2009.

13.08% of the ordinary income distributed by the Fund, for the fiscal year ended December 31, 2009 qualified for the corporate dividends received deduction.

For non-corporate shareholders 100.00%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.

Columbia Thermostat Fund

100.00% of the ordinary income distributed by the Fund for the fiscal year ended December 31, 2009, qualifies for the corporate dividends received deduction.

For non-corporate shareholders, 100.00% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of the ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.


85



Board of Trustees and Management of
Columbia Acorn Funds

Each trustee may serve a term of unlimited duration. The Trust's By-laws generally require that a trustee retire at the end of the calendar year in which the trustee attains the age of 75 years. The trustees appoint their own successors, provided that at least two-thirds of the trustees, after such appointment, have been elected by shareholders. Shareholders may remove a trustee, with or without cause, upon the vote of two-thirds of the Trust's outstanding shares at any meeting called for that purpose. A trustee may be removed, with or without cause, upon the vote of a majority of the trustees. The names of the trustees and officers of the Trust, the date each was first elected or appointed to office, their principal business occupations during at least the last five years, number of portfolios in the fund complex they oversee, and other directorships they hold, are shown below. Each trustee serves in such capacity for each of the six series of Columbia Acorn Trust and for each of the four series of Wanger Advisors Trust.

The address for the trustees and officers of the Trust is Columbia Wanger Asset Management, L.P., 227 West Monroe Street, Suite 3000, Chicago, Illinois 60606. The Funds' Statement of Additional Information includes additional information about the Funds' trustees and officers. You may obtain a free copy of the Statement of Additional Information by writing or calling toll-free:

Columbia Wanger Asset Management, L.P.
Shareholder Services Group
227 W. Monroe, Suite 3000
Chicago IL 60606
1-800-922-6769

Name, Position(s)
with Columbia Acorn
Trust and Age at
December 31, 2009		   Year First
Elected or
Appointed
to Office*		   Principal Occupation(s)
during
Past Five Years		   Number of
Portfolios in
Fund Complex
Overseen by
Trustee/Officer		   Other
Directorships
in addition to
Columbia Acorn Trust		  
Trustees who are not interested persons of Columbia Acorn Trust:      
Laura M. Born, 44,
Trustee		     2007     Adjunct Assistant Professor of Finance, University of Chicago Booth School of Business; formerly, Managing Director – Investment Banking, J.P. Morgan Chase & Co. (broker/dealer) 2002-2007.     10     Wanger Advisors Trust  
Michelle L. Collins, 49,
Trustee		     2008     President, Cambium LLC (financial advisory firm) since 2007; Advisory Board Member, Svoboda Capital Partners LLC (private equity firm) since 2007; Managing Director Svoboda Capital Partners LLC, 1998-2006.     10     Wanger Advisors Trust; Bucyrus International, Inc. (mining equipment manufacturer); Molex, Inc. (electronics components manufacturer).  
Maureen M. Culhane, 61,
Trustee		     2007     Retired. Formerly, Vice President, Goldman Sachs Asset Management, L.P. (investment advisor), 2005-2007, and Vice President (Consultant) – Strategic Relationship Management, Goldman Sachs AG, 1999-2005.     10     Wanger Advisors Trust  
Margaret M. Eisen, 56,
Trustee		     2002     Chief Investment Officer, EAM International LLC (corporate finance and asset management) since 2003; Managing Director, CFA Institute, 2005-2008.     10     Wanger Advisors Trust; Antigenics, Inc. (biotechnology and pharmaceuticals) (until June 2009).  
Jerome Kahn, Jr., 75,(1)
Trustee		     1987     Portfolio manager and stock analyst; formerly, President, William Harris Investors, Inc. (investment advisor).     10     Wanger Advisors Trust  
Steven N. Kaplan, 50,
Trustee and Vice Chairman of the Board		     1999     Neubauer Family Professor of Entrepreneurship and Finance, University of Chicago Booth School of Business.     10     Wanger Advisors Trust; Accretive Health, Inc. (healthcare management services provider); Morningstar, Inc. (provider of independent investment research).  
David C. Kleinman, 74,
Trustee		     1972     Adjunct Professor of Strategic Management, University of Chicago Booth School of Business; business consultant.     10     Wanger Advisors Trust; Sonic Foundry, Inc. (rich media systems and software).  
Allan B. Muchin, 73,
Trustee		     1998     Chairman Emeritus, Katten Muchin Rosenman LLP (law firm).     10     Wanger Advisors Trust  

 


86


Name, Position(s)
with Columbia Acorn
Trust and Age at
December 31, 2009		   Year First
Elected or
Appointed
to Office*		   Principal Occupation(s)
during
Past Five Years		   Number of
Portfolios in
Fund Complex
Overseen by
Trustee/Officer		   Other
Directorships
in addition to
Columbia Acorn Trust		  
Trustees who are not interested persons of Columbia Acorn Trust: (continued)      
James A. Star, 48,
Trustee and Chairman of the Board		     2006     President, Longview Asset Management LLC (investment advisor) since 2003; Director, Traush Industries (privately-owned manufacturer of refrigeration parts and products).     10     Wanger Advisors Trust  
John A. Wing, 74,
Trustee		     2002     Partner, Dancing Lion Partners (investment firm); prior thereto, Frank Wakely Gunsaulus Professor of Law and Finance and Chairman of the Center for the Study of Law and Financial Markets, Illinois Institute of Technology; formerly, Chairman of the Board and Chief Executive Officer, ABN-AMRO Inc. (formerly named The Chicago Corporation, a financial services firm) and Chief Executive Officer, Market Liquidity Network, LLC.     10     Wanger Advisors Trust; First Chicago Bank and Trust; First Chicago Bancorp.  
Trustees who are interested persons of Columbia Acorn Trust:      
Charles P. McQuaid, 56,
Trustee and President(2)		     1992     President and Chief Investment Officer, CWAM or its predecessors, since October 2003; associated with CWAM or its predecessors since 1978.     10     Wanger Advisors Trust  
Ralph Wanger, 75,
Trustee(3)		     1970     Founder, CWAM. Formerly, President, Chief Investment Officer and portfolio manager, CWAM or its predecessors, July 1992 – September 2003; Director, Wanger Investment Company PLC; Consultant, CWAM or its predecessors, September 2003 – September 2005.     10     Wanger Advisors Trust  
Officers of Columbia Acorn Trust:      
Ben Andrews, 43,
Vice President		     2004     Portfolio manager and analyst, CWAM or its predecessors, since 1998; Vice President, Columbia Acorn Trust and Wanger Advisors Trust since 2004.     10     None  
Michael G. Clarke, 40,
Assistant Treasurer		     2004     Senior Vice President and Chief Financial Officer of certain Columbia Funds since January 2009; Treasurer of certain Columbia Funds from June 2008 – January 2009; Deputy Treasurer of certain Columbia Funds since June 2008; Chief Accounting Officer and Assistant Treasurer, the Columbia Funds, October 2004 to May 2008; Director of Fund Administration, Columbia Management Advisors, LLC, since January 2006; Managing Director, Columbia Management Advisors, LLC, September 2004 – December 2005.     10     None  
Jeffrey Coleman, 40,
Assistant Treasurer		     2006     Treasurer of certain Columbia Funds since June 2008; Director of Fund Administration, CWAM, since January 2006; Fund Controller, CWAM or its predecessors, October 2004 – January 2006.     10     None  
P. Zachary Egan, 41,
Vice President		     2003     Director of International Research, CWAM or its predecessors, since December 2004; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2007; portfolio manager and analyst, CWAM or its predecessors, since 1999.     10     None  
Peter T. Fariel, 52,
Assistant Secretary		     2006     Associate General Counsel, Bank of America Corporation, since April 2005; prior thereto, Partner, Goodwin Procter LLP (law firm).     10     None  

 


87


Name, Position(s)
with Columbia Acorn
Trust and Age at
December 31, 2009		   Year First
Elected or
Appointed
to Office*		   Principal Occupation(s)
during
Past Five Years		   Number of
Portfolios in
Fund Complex
Overseen by
Trustee/Officer		   Other
Directorships
in addition to
Columbia Acorn Trust		  
Officers of Columbia Acorn Trust: (continued)      
John Kunka, 39,
Assistant Treasurer		     2006     Director of Accounting and Operations, CWAM or its predecessors, since May 2006; Manager of Mutual Fund Operations, Calamos Advisors, Inc. (investment advisor), September 2005 – May 2006; prior thereto, Manager of Mutual Fund Administration, Van Kampen Investments.     10     None  
Joseph C. LaPalm, 40,
Vice President		     2006     Chief Compliance Officer, CWAM since 2005; prior thereto, compliance officer, William Blair & Company (investment firm).     10     None  
Bruce H. Lauer, 52,
Vice President, Secretary and Treasurer		     1995     Chief Operating Officer, CWAM or its predecessors, since April 2000; Vice President, Secretary and Treasurer, Columbia Acorn Trust and Wanger Advisors Trust, since 1995; Director, Wanger Investment Company PLC; Director, Banc of America Capital Management (Ireland) Ltd.; Director, Bank of America Global Liquidity Funds, PLC.     10     None  
Louis J. Mendes III, 45,
Vice President		     2003     Portfolio manager and analyst, CWAM or its predecessors, since 2001; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2005.     10     None  
Robert A. Mohn, 48,
Vice President		     1997     Director of Domestic Research, CWAM or its predecessors, since March 2004; Vice President, Columbia Acorn Trust and Wanger Advisors Trust, since 1997; portfolio manager and analyst, CWAM or its predecessors, since August 1992.     10     None  
Christopher J. Olson, 45,
Vice President		     2001     Portfolio manager and analyst, CWAM or its predecessors, since January 2001; Vice President, Columbia Acorn Trust and Wanger Advisors Trust, since 2001.     10     None  
Robert P. Scales, 57,
Chief Compliance Officer, Chief Legal Officer, Senior Vice President and General Counsel		     2004     Chief Compliance Officer, Chief Legal Officer, Senior Vice President and General Counsel, Columbia Acorn Trust and Wanger Advisors Trust, since 2004.     10     None  
Linda Roth-Wiszowaty, 40,
Assistant Secretary		     2006     Business support analyst, CWAM, since April 2007; prior thereto executive administrator, CWAM or its predecessors, and executive assistant to the Chief Operating Officer of CWAM or its predecessors.     10     None  

 

*  Dates prior to April 1992 correspond to the date of first election or appointment as a trustee or officers of The Acorn Fund, Inc., the predecessor trust to Columbia Acorn Trust.

(1)  Mr. Kahn retired at the end of calendar year 2009.

(2)  Mr. McQuaid is an "interested person" of Columbia Acorn Trust and of CWAM, as defined in the Investment Company Act of 1940 because he is an officer of the Trust and of CWAM.

(3)  Mr. Wanger is an "interested person" of Columbia Acorn Trust and of CWAM, as defined in the Investment Company Act of 1940 because, as of December 31, 2009, he owned securities issued by a controlling person of CWAM and was a consultant to CWAM within the most recently completed five fiscal years.


88


Columbia Acorn Family of Funds

Fourth Quarter Class Z Share Information

Minimum Initial Investment in
all Funds
 		  $2,500
 $1,000 for an IRA		  
Minimum Subsequent
Investment in all Funds		   $50  
Exchange Fee   None  

 

Columbia Acorn Fund     ACRNX    
Management Fee     0.65 %  
12b-1 Fee     None    
Other Expenses     0.12 %  
Net Expense Ratio     0.77 %  
Columbia Acorn International     ACINX    
Management Fee     0.78 %  
12b-1 Fee     None    
Other Expenses     0.21 %  
Net Expense Ratio     0.99 %  
Columbia Acorn USA     AUSAX    
Management Fee     0.87 %  
12b-1 Fee     None    
Other Expenses     0.16 %  
Net Expense Ratio     1.03 %  
Columbia Acorn International Select     ACFFX    
Management Fee     0.94 %  
12b-1 Fee     None    
Other Expenses     0.26 %  
Net Expense Ratio     1.20 %  
Columbia Acorn Select     ACTWX    
Management Fee     0.82 %  
12b-1 Fee     None    
Other Expenses     0.17 %  
Net Expense Ratio     0.99 %  
Columbia Thermostat Fund     COTZX    
Management Fee     0.10 %  
12b-1 Fee     None    
Other Expenses     0.15 %*  
Net Expense Ratio     0.25 %  

 

    Fees and expenses are for the twelve months ended December 31, 2009, and for Columbia Thermostat Fund include the effect of CWAM's undertaking to waive fees and/or reimburse the Fund for any ordinary operating expenses (exclusive of interest and fees on borrowings, and expenses associated with the Fund's investment in other investment companies, but inclusive of custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian in excess of the annual rate of 0.25% of the average daily net assets. Columbia Thermostat Fund's reimbursement arrangement is contractual through April 30, 2010.

  *  Does not include estimated fees and expenses of 0.82% incurred by the Fund from the underlying portfolio funds in which it invests.


89


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90



Columbia Acorn Family of Funds

Investment Advisor

Columbia Wanger Asset Management, L.P.
227 West Monroe Street, Suite 3000
Chicago, Illinois 60606

1-800-922-6769

Distributor

Columbia Management Distributors, Inc.
One Financial Center
Boston, Massachusetts 02111-2621

Transfer Agent, Dividend Disbursing Agent

Columbia Management Services, Inc.
P. O. Box 8081
Boston, Massachusetts 02266-8081

1-800-345-6611

Legal Counsel to the Funds

K&L Gates LLP
Washington, DC

Legal Counsel to the Independent Trustees

Drinker Biddle & Reath LLP
Philadelphia, Pennsylvania

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP
Chicago, Illinois

This report, including the schedules of investments, is submitted for the general information of the shareholders of Columbia Acorn Trust.

A description of the policies and procedures that the Funds use to determine how to vote proxies and a copy of the Funds' voting record are available (i) without charge, upon request, by calling 800-922-6769 and (ii) on the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2009, is available from the SEC's website. Information regarding how the Funds voted proxies relating to portfolio securities is also available at http://institutional.columbiamanagement.com.

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds' complete portfolio holdings are disclosed at www.columbiafunds.com, approximately 30 days after each month-end.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the Fund, contact your Columbia Management representative or financial advisor or go to www.columbiamanagement.com.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Columbia Wanger Asset Management, L.P. ("CWAM") is a registered investment advisor and an indirect, wholly owned subsidiary of Bank of America Corporation. CWAM is part of Columbia Management.

Find out what's new – visit our web site at:

www.columbiafunds.com

Our e-mail address is:

ServiceInquiries@ColumbiaManagement.com

Shareholders should not include personal information such as account numbers, Social Security numbers or taxpayer identification numbers in e-mail. We are unable to accept account transactions sent via e-mail.



PRESORTED

FIRST-CLASS MAIL

U.S. POSTAGE PAID

HOLLISTON, MA

PERMIT NO. 20

Columbia Management®

Columbia Acorn Family of Funds

Class Z Shares

Annual Report, December 31, 2009

For More Information

You'll find more information about the Columbia Acorn Family Funds in the documents described below. Contact Columbia Funds as follows to obtain these documents free of charge:

By Mail:  Columbia Funds
c/o Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081

By Telephone: 800.345.6611

Online: www.columbiafunds.com

Shareholder Communications with the Board

The Funds' Board of Trustees has adopted procedures by which shareholders may communicate with the Board. Shareholders who wish to communicate with the Board should send their written communications to the Board by mail, c/o Columbia Wanger Asset Management, L.P., 227 West Monroe Street, Suite 3000, Chicago, Illinois 60606, Attention: Secretary. Shareholder communications must (i) be in writing, (ii) identify the Columbia Acorn Fund to which the communication relates and (iii) state the particular class of shares and number of shares held by the communicating shareholder.

Prospectuses and the Statement of Additional Information (SAI)

The prospectuses and the SAI provide more detailed information about the Funds and their policies. The SAI is legally part of each prospectus (it's incorporated by reference). A copy of each has been filed with the SEC.

Information Provided by the SEC

You can review and copy information about the Funds (including their prospectuses, the SAI and shareholder reports) at the SEC's Public Reference Room in Washington, DC. To find out more about the operation of the Public Reference Room, call the SEC at 202.551.8090. Reports and other information about the Fund are also available in the EDGAR Database on the SEC's website at http://www.sec.gov, or you can receive copies of this information, for a fee, by electronic request at the following e-mail address: publicinfo@sec.gov. You can also obtain copies of this information by writing the Public Reference Section, Securities and Exchange Commission, Washington, DC 20549-0102.

The investment company registration number of Columbia Acorn Trust, of which each of these Funds are a series, is 811-01829.

© 2010 Columbia Management Distributors, Inc.

One Financial Center, Boston, MA 02111-2621

800.345.6611 www.columbiamanagement.com

SHC-42/30222-1209 10/103930



Q4 2009

Columbia Management®

Columbia Acorn Family of Funds

Class A, B and C Shares

Managed by Columbia Wanger Asset Management, L.P.

Annual Report

December 31, 2009

n  ColumbiaSM
Acorn® Fund

n  ColumbiaSM
Acorn International®

n  ColumbiaSM
Acorn USA®

n  ColumbiaSM
Acorn International SelectSM

n  ColumbiaSM
Acorn SelectSM

n  ColumbiaSM
Thermostat FundSM

NOT FDIC INSURED

NOT BANK ISSUED

May Lose Value

No Bank Guarantee


Columbia Acorn Family of Funds

Net Asset Value Per Share as of 12/31/09

    Columbia
Acorn Fund		   Columbia
Acorn
International		   Columbia
Acorn USA		   Columbia
Acorn
International
Select		   Columbia
Acorn
Select		   Columbia
Thermostat
Fund		  
Class A   $ 23.98     $ 34.13     $ 22.43     $ 23.39     $ 22.81     $ 10.90    
Class B   $ 22.43     $ 33.22     $ 20.99     $ 22.34     $ 21.41     $ 10.93    
Class C   $ 22.23     $ 33.08     $ 20.84     $ 22.21     $ 21.25     $ 10.91    

 

The views expressed in the "Squirrel Chatter II" and "In a Nutshell" commentaries reflect the current views of the respective authors. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective authors disclaim any responsibility to update such views. These views may not be relied upon as investment advice and, because investment decisions for a Columbia Acorn Fund are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any particular Columbia Acorn Fund. References to specific company securities should not be construed as a recommendation or investment advice and there can be no assurance that as of the date of publication of this report, the securities mentioned in each Fund's portfolio are still held or that the securities sold have not been repurchased.



Letter to Shareholders from the
Columbia Acorn Board of Trustees

Change and Continuity

Fellow Shareholders:

Our Funds enter the New Year facing important governance changes. In the next few months, your Trustees expect that the Fund's investment adviser, Columbia Wanger Asset Management ("CWAM"), will be sold to Ameriprise Financial, Inc. By law, your Trustees must determine whether CWAM should continue to serve as the Funds' investment adviser under its new ownership. Accordingly, the Board has spent significant time and effort considering whether this transaction is in the best interests of shareholders. A specially appointed committee of the Board has reviewed and is negotiating a proposed new investment advisory agreement and contracts with other critical service providers required upon a change of control of the investment adviser. The law also requires that shareholders approve the new investment advisory contract, and proxy materials describing these matters will be sent to shareholders before a change of control takes place.

A second area of change – and continuity – relates to your Funds' Trustees. Sadly, former Chair Bob Nason passed away last June and long-time trustee Jerry Kahn retired at year end. After a transitional period following Bob's death, the Board elected Steve Kaplan as Vice Chair and the undersigned as Chair. I am happy to report that the Board has also elevated Ralph Wanger to "Trustee Emeritus" upon his retirement as a Trustee later this year. This emeritus status allows the Board to continue to benefit from Ralph's experience, insight, and wisdom. Finally, we've rotated the leadership of each of the Board's committees. These changes reflect succession plans put in place by Bob Nason and Allan Muchin (the immediate past Vice Chair) in an effort to preserve the Board's strong independent tradition.

All of your Trustees are, like you, shareholders in the Funds. As such, we were heartened by the recent recovery in the financial markets and the Funds. The domestic Funds did particularly well, exceeding their benchmarks by a significant margin. More importantly, all of the Funds continue to do well when considered over the longer term. Such long-term success remains the constant focus of the Board.

Transitions are rarely easy. That said, your Trustees have worked to identify potential problems and minimize the impact should any arise. In taking these actions, we are following the example of the thoughtful and independent Acorn directors who came before us. They taught your Board to understand and appreciate its role as an unwavering advocate for shareholders and the ultimate protector of the Funds.

Thank you for your trust in the Acorn Funds.

James A. Star
Independent Chairman of the Board of Trustees
Columbia Acorn Trust


Columbia Acorn Family of Funds

Table of Contents

Share Class Performance     1    
Fund Performance vs. Benchmarks     2    
Description of Indexes     3    
Squirrel Chatter II: Skill and Luck     4    
Understanding Your Expenses     6    
Columbia Acorn Fund  
In a Nutshell     8    
At a Glance     9    
Major Portfolio Changes     20    
Statement of Investments     22    
Columbia Acorn International  
In a Nutshell     10    
At a Glance     11    
Major Portfolio Changes     34    
Statement of Investments     36    
Portfolio Diversification     44    
Columbia Acorn USA  
In a Nutshell     12    
At a Glance     13    
Major Portfolio Changes     45    
Statement of Investments     46    
Columbia Acorn International Select  
In a Nutshell     14    
At a Glance     15    
Major Portfolio Changes     54    
Statement of Investments     55    
Portfolio Diversification     58    

 

Columbia Acorn Select  
In a Nutshell     16    
At a Glance     17    
Major Portfolio Changes     59    
Statement of Investments     60    
Columbia Thermostat Fund  
In a Nutshell     18    
At a Glance     19    
Statement of Investments     65    
Columbia Acorn Family of Funds  
Statements of Assets and Liabilities     68    
Statements of Operations     69    
Statements of Changes in Net Assets     70    
Financial Highlights     74    
Notes to Financial Statements     80    
Report of Independent Registered
Public Accounting Firm		     89    
Federal Income Tax Information     90    
Board of Trustees and Management          
of Columbia Acorn Funds     91    
Columbia Acorn Family of Funds Information     94    

 

No 2009 Year-end Distributions for the Columbia Acorn Funds

Class A, B and C shares of the Columbia Acorn Funds did not have any distributions at year-end.

Bank of America To Sell Columbia Management Group, LLC

On September 29, 2009, Bank of America Corporation entered into an agreement with Ameriprise Financial, Inc. ("Ameriprise") to sell a portion of the long-term asset management business of Columbia Management Group, LLC, including 100% of Columbia Wanger Asset Management, L.P.

The planned acquisition of Columbia Management's long-term asset management business by Ameriprise is subject to federal, state and international regulatory approvals.


Columbia Acorn Family of Funds

Share Class Performance Average Annual Total Returns through 12/31/09

    Class A   Class B*   Class C  
    Without
Sales Charge		   With
Sales Charge		   Without
Sales Charge		   With
Sales Charge		   Without
Sales Charge		   With
Sales Charge		  
Columbia Acorn Fund (10/16/00)  
3 months**     5.69 %     -0.39 %     5.55 %     0.55 %     5.46 %     4.46 %  
1 year     39.26 %     31.25 %     38.37 %     33.37 %     38.16 %     37.16 %  
3 years     -2.87 %     -4.77 %     -3.47 %     -4.34 %     -3.64 %     -3.64 %  
5 years     3.35 %     2.14 %     2.70 %     2.38 %     2.54 %     2.54 %  
Life of fund     7.93 %     7.24 %     7.24 %     7.24 %     7.14 %     7.14 %  
Columbia Acorn
International (10/16/00)		  
3 months**     4.25 %     -1.75 %     4.07 %     -0.93 %     3.99 %     2.99 %  
1 year     50.40 %     41.75 %     49.36 %     44.36 %     49.12 %     48.12 %  
3 years     -1.77 %     -3.69 %     -2.37 %     -3.27 %     -2.54 %     -2.54 %  
5 years     9.08 %     7.79 %     8.38 %     8.08 %     8.22 %     8.22 %  
Life of fund     6.73 %     6.05 %     6.03 %     6.03 %     5.96 %     5.96 %  
Columbia Acorn USA (10/16/00)  
3 months**     5.95 %     -0.14 %     5.80 %     0.80 %     5.73 %     4.73 %  
1 year     41.07 %     32.96 %     40.12 %     35.12 %     39.96 %     38.96 %  
3 years     -4.08 %     -5.96 %     -4.70 %     -5.57 %     -4.84 %     -4.84 %  
5 years     1.43 %     0.23 %     0.76 %     0.42 %     0.63 %     0.63 %  
Life of fund     7.52 %     6.83 %     6.83 %     6.83 %     6.75 %     6.75 %  
Columbia Acorn International
Select (10/16/00)		  
3 months**     4.51 %     -1.50 %     4.34 %     -0.66 %     4.32 %     3.32 %  
1 year     31.01 %     23.48 %     30.19 %     25.19 %     30.04 %     29.04 %  
3 years     -2.80 %     -4.70 %     -3.43 %     -4.33 %     -3.57 %     -3.57 %  
5 years     7.62 %     6.35 %     6.93 %     6.62 %     6.77 %     6.77 %  
Life of fund     4.25 %     3.58 %     3.55 %     3.55 %     3.48 %     3.48 %  
Columbia Acorn Select (10/16/00)  
3 months**     7.75 %     1.55 %     7.53 %     2.53 %     7.49 %     6.49 %  
1 year     65.65 %     56.13 %     64.44 %     59.44 %     64.22 %     63.22 %  
3 years     -2.93 %     -4.83 %     -3.57 %     -4.50 %     -3.73 %     -3.73 %  
5 years     3.87 %     2.65 %     3.18 %     2.82 %     3.03 %     3.03 %  
Life of fund     7.52 %     6.83 %     6.80 %     6.80 %     6.72 %     6.72 %  
Columbia Thermostat
Fund (3/3/03)†3 months**		     5.62%       -0.45%       5.40%       0.40%       5.41%       4.41%    
3 months**     5.62 %     -0.45 %     5.40 %     0.40 %     5.41 %     4.41 %  
1 year     31.98 %     24.40 %     31.37 %     26.37 %     30.97 %     29.97 %  
3 years     -0.34 %     -2.28 %     -0.84 %     -1.73 %     -1.10 %     -1.10 %  
5 years     2.87 %     1.66 %     2.30 %     1.99 %     2.09 %     2.09 %  
Life of fund     6.56 %     5.64 %     5.95 %     5.95 %     5.77 %     5.77 %  

 

*The Funds no longer accept investments from new or existing shareholders in Class B shares.

**Not annualized.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value of an investment in a Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Please visit columbiafunds.com for daily and most recent month-end updates.

The "with sales charge" returns include the maximum initial sales charge of 5.75% for Class A shares, the applicable contingent deferred sales charge (CDSC) for Class B shares (5%, 4%, 3%, 3%, 2%, 1% and 0% for the first through seventh years after purchase, respectively), and the maximum CDSC of 1.00% of Class C shares during the first year after purchase.

Annual operating expense ratios are as stated in each Fund's current prospectus and differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. Columbia Acorn Fund: Class A: 1.05%; Class B: 1.65%; Class C: 1.83%. Columbia Acorn International: Class A: 1.31%; Class B: 1.90%; Class C: 2.08%. Columbia Acorn USA: Class A: 1.29%; Class B: 1.92%; Class C: 2.08%. Columbia Acorn International Select: Class A: 1.54%; Class B: 2.17%; Class C: 2.34%. Columbia Acorn Select: Class A: 1.24%; Class B: 1.87%; Class C: 2.04%. Columbia Thermostat Fund has a contractual expense waiver or reimbursement that expires April 30, 2010. Expense ratios without and with the contractual waiver, including fees and expenses associated with the Fund's investments in other investment companies are: Class A: 1.40%, 1.22%; Class B: 1.92%, 1.72%; Class C: 2.17%, 1.97%, respectively.

Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

†A "fund of funds" bears its allocable share of the costs and expenses of the underlying funds in which it invests. Such funds are thus subject to two levels of fees and potentially higher expense ratios than would be associated with an investment in a fund that invests and trades directly in financial instruments under the direction of a single manager.

All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.


1


Columbia Acorn Family of Funds

Fund Performance vs. Benchmarks Average Annual Total Returns through 12/31/09

Class A Shares, without sales charge   4th quarter*   1 year   3 years   5 years   Life of Fund  
Columbia Acorn Fund
(LACAX) (10/16/00)		     5.69 %     39.26 %     -2.87 %     3.35 %     7.93 %  
Russell 2500 Index     5.08 %     34.39 %     -4.86 %     1.58 %     5.24 %  
S&P 500 Index**     6.04 %     26.46 %     -5.63 %     0.42 %     -0.40 %  
Lipper Small-Cap Core Funds Index     4.49 %     34.50 %     -4.06 %     1.55 %     5.18 %  
Lipper Mid-Cap Growth Funds Index     5.65 %     42.65 %     -1.04 %     3.35 %     -1.34 %  
Columbia Acorn International
(LAIAX) (10/16/00)		     4.25 %     50.40 %     -1.77 %     9.08 %     6.73 %  
S&P Global Ex-U.S. Between $500 Million and $5 Billion Index     3.46 %     55.49 %     -2.02 %     8.16 %     10.05 %  
S&P Global Ex-U.S. SmallCap Index     3.07 %     56.84 %     -4.03 %     7.12 %     9.09 %  
MSCI EAFE Index     2.18 %     31.78 %     -6.04 %     3.54 %     3.10 %  
Lipper International Small/Mid Growth Funds Index     3.73 %     54.44 %     -4.79 %     7.01 %     4.97 %  
Columbia Acorn USA
(LAUAX) (10/16/00)		     5.95 %     41.07 %     -4.08 %     1.43 %     7.52 %  
Russell 2000 Index     3.87 %     27.17 %     -6.07 %     0.51 %     4.28 %  
Russell 2500 Index     5.08 %     34.39 %     -4.86 %     1.58 %     5.24 %  
S&P 500 Index**     6.04 %     26.46 %     -5.63 %     0.42 %     -0.40 %  
Lipper Small-Cap Growth Funds Index     5.29 %     38.04 %     -4.58 %     0.25 %     -0.64 %  
Columbia Acorn Int'l Select
(LAFAX) (10/16/00)		     4.51 %     31.01 %     -2.80 %     7.62 %     4.25 %  
S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index     1.14 %     38.60 %     -6.07 %     4.99 %     7.18 %  
MSCI EAFE Index     2.18 %     31.78 %     -6.04 %     3.54 %     3.10 %  
Lipper International Funds Index     2.57 %     35.30 %     -4.49 %     4.88 %     3.99 %  
Columbia Acorn Select
(LTFAX) (10/16/00)		     7.75 %     65.65 %     -2.93 %     3.87 %     7.52 %  
S&P MidCap 400 Index     5.56 %     37.38 %     -1.83 %     3.27 %     5.44 %  
S&P 500 Index**     6.04 %     26.46 %     -5.63 %     0.42 %     -0.40 %  
Lipper Mid-Cap Growth Funds Index     5.65 %     42.65 %     -1.04 %     3.35 %     -1.34 %  
Columbia Thermostat Fund
(CTFAX) (3/3/03)†		     5.62 %     31.98 %     -0.34 %     2.87 %     6.56 %  
S&P 500 Index     6.04 %     26.46 %     -5.63 %     0.42 %     6.30 %  
Barclays Capital U.S. Aggregate Bond Index     0.20 %     5.93 %     6.04 %     4.97 %     4.65 %  
Lipper Flexible Portfolio Funds Index     3.97 %     29.17 %     -0.32 %     3.50 %     7.54 %  
50/50 Blended Benchmark††     3.13 %     16.34 %     0.52 %     2.99 %     5.76 %  

 

*Not annualized.

**The comparison to the S&P 500 Index is presented to show performance against a widely recognized market index over the life of the Fund.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value of an investment in a Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Please visit columbiafunds.com for daily and most recent month-end updates.

Annual operating expense ratios are as stated in each Fund's current prospectus and differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. Columbia Acorn Fund: Class A: 1.05%; Class B: 1.65%; Class C: 1.83%. Columbia Acorn International: Class A: 1.31%; Class B: 1.90%; Class C: 2.08%. Columbia Acorn USA: Class A: 1.29%; Class B: 1.92%; Class C: 2.08%. Columbia Acorn International Select: Class A: 1.54%; Class B: 2.17%; Class C: 2.34%. Columbia Acorn Select: Class A: 1.24%; Class B: 1.87%; Class C: 2.04%. Columbia Thermostat Fund has a contractual expense waiver or reimbursement that expires April 30, 2010. Expense ratios without and with the contractual waiver, including fees and expenses associated with the Fund's investments in other investment companies are: Class A: 1.40%, 1.22%; Class B: 1.92%, 1.72%; Class C: 2.17%, 1.97%, respectively.

Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

†A "fund of funds" bears its allocable share of the costs and expenses of the underlying funds in which it invests. Such funds are thus subject to two levels of fees and potentially higher expense ratios than would be associated with an investment in a fund that invests and trades directly in financial instruments under the direction of a single manager.

††The 50/50 Blended Benchmark is a custom supplemental benchmark established by the advisor.

All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption of fund shares.

Unlike mutual funds, indexes are not actively managed and do not incur fees or expenses. It is not possible to invest directly in an index. For index definitions, see Page 3.

The dates in parantheses are the inception dates for each respective Fund.


2


Columbia Acorn Family of Funds

Descriptions of Indexes Included in this Report

•  50/50 Blended Benchmark, established by the Fund's advisor, is an equally weighted custom composite of Columbia Thermostat Fund's primary equity and primary debt benchmarks, the S&P 500 Index and the Barclays Capital U.S. Aggregate Bond Index, respectively. The percentage of the Fund's assets allocated to underlying stock and bond portfolio funds will vary, and accordingly the composition of the Fund's portfolio will not always reflect the composition of the 50/50 Blended Benchmark.

•  Barclays Capital U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs and total return performance of fixed-rate, publicly placed, dollar-denominated and non-convertible investment grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity.

•  Lipper Indexes include the largest funds tracked by Lipper, Inc. in the named category. Lipper Small-Cap Core Funds Index, 30 largest small-cap core funds; Lipper Mid-Cap Growth Funds Index, 30 largest mid-cap growth funds; Lipper International Small/Mid Growth Funds Index, 10 largest non-U.S. small/mid growth funds, including Columbia Acorn International; Lipper Small-Cap Growth Funds Index, 30 largest small-cap growth funds; Lipper International Funds Index, 30 largest non-U.S. funds, excluding non-U.S. small-cap funds; Lipper Flexible Portfolio Funds Index, an equal-weighted index of the 30 largest mutual funds within the Flexible Portfolio fund classification, as defined by Lipper.

•  Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index is a capitalization-weighted index that tracks the total return of common stocks in 21 developed-market countries within Europe, Australasia and the Far East.

•  Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.

•  Russell 2500 Index measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 17% of the total market capitalization of the Russell 3000 Index.

•  Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.

•  Standard & Poor's (S&P) MidCap 400 Index is a market value-weighted index that tracks the performance of 400 mid-cap U.S. companies.

•  S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index is a subset of the broad market selected by the index sponsor representing the mid-cap developed market, excluding the United States.

•  S&P Global Ex-U.S. SmallCap Index is an unmanaged index consisting of the bottom 20% of institutionally investable capital of developed and emerging countries, excluding the United States.

•  S&P Global Ex-U.S. Between $500 Million and $5 Billion Index is a subset of the broad market selected by the index sponsor representing the mid- and small-cap developed and emerging markets, excluding the United States.

Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.


3


Squirrel Chatter II: Skill and Luck

Research has proven that it is extremely difficult for institutional investors to consistently outperform the stock market. The performance distribution among mutual funds usually looks like a bell shaped curve, with some funds outperforming, many underperforming, and the average fund underperforming its benchmark roughly by its expense ratio. I'm happy to say that the Columbia Acorn Funds have historically outperformed their primary benchmark for most time periods, as you can see on Page 2. But researchers note that there are thousands of mutual funds, and purely random outcomes will lead some funds to outperform. This raises an interesting debate: Do funds that outperform do so due to skill, or due to luck?

We try hard to apply investment skills in managing our Funds. We follow a time-tested approach and have an experienced and highly specialized team of investment professionals picking the stocks in which we invest. However, in order to cover both bases, I decided to also read up on luck. Dr. Richard Wiseman's The Luck Factor1 discusses his research and provides some common sense approaches that may enable people to become luckier.

Wiseman procured hundreds of volunteers, creating one group of people who considered themselves lucky and another who considered themselves unlucky. He tested conventional notions of luck. As one might expect, the lucky group had no apparent psychic ability; their guesses of upcoming lottery numbers were no better than guesses made by the unlucky group. Superstition was not effective either, as the appearance of a black cat vs. a white cat had no impact on results of a coin toss competition.

Instead, Wiseman concluded that people take specific actions that enable them to be lucky and succeed. He provides four principles that induce luck:

1)   Maximize your chance opportunities

2)   Listen to your lucky hunches

3)   Expect good fortune

4)   Turn bad luck into good

Though Wiseman does not explicitly mention investing, each principle can be applied in pursuit of successful money management.

Maximizing chance opportunities entails meeting a large number of people and creating networks to obtain information and investment ideas. Being observant and open to new ideas also helps. Successful investments can be discovered inadvertently: years ago I observed long lines and rising prices at parking garages in downtown Chicago and then profitably invested in a parking lot stock. Rather than pursuing information in hope of confirming existing opinions, pursuing unbiased information could induce the sale of an existing stock and purchase of a superior new one.

Listening to lucky hunches requires the use of intuition. Stocks tend to quickly react to information, and acting early, using imperfect information, is indeed an art form. We once had an analyst who tended to act only after obtaining repeated confirmations that company fundamentals had changed. He performed poorly because stocks often moved before he acted. In contrast, we recently successfully invested in a telecommunications stock that appeared likely to rise as an increasing number of Wall Street analysts began following it. Occasionally, we choose not to pursue possible investment opportunities because they simply don't feel right.

The next luck-inducing principle is to expect good fortune. This is consistent with our investment philosophy. We put money into stocks with the expectation that they will make money over time. We tend to expect continued good fortune from our successful investments and, when it makes sense, let our winners run. This has resulted in lower turnover than the industry average for the Columbia Acorn Funds.

We also attempt to turn bad luck into good and pursue an occasional positive side of bad luck. In the 1980s, several of our analysts complained about aggressive foreign competitors hurting companies we held in Columbia Acorn Fund. The portfolio manager at that time, Ralph Wanger, coined the phrase, "Don't bitch, switch!" and we've owned some foreign stocks in Acorn Fund ever since. We've learned that one company's problem may be


4


another company's opportunity, and that the best choice may be to invest in the latter company.

Ben Sherwood's The Survivors Club2 also mentions a few attributes applicable to investing. Situational awareness is a key part of military survival training and is important in investing too. Although many homebuilding stocks looked cheap during the housing bubble, generally avoiding them benefited our shareholders. Likewise, a well-run company may perform well within a highly competitive industry, but its stock could have substantial downside if its management changes or it grows beyond its niche.

As defined by Sherwood, the "incredulity response" occurs when very unusual events occur, such as catastrophes. Market meltdowns also appear to qualify. People tend to not believe such an event is happening and become paralyzed. Instead, survivors need to act positively. During a market meltdown, the market becomes extremely risk averse, and pays investors handsomely to take risk. That was true a year ago and we invested in several companies with substantial debt that our analysis indicated would likely survive and flourish. On average, those stocks performed very well for shareholders.

Both authors believe that people can create their own luck. After reading their perspectives, I have to agree. We at Columbia Wanger Asset Management think that creating luck is a skill and that providing above average returns is no random act.

Charles P. McQuaid

President and Chief Investment Officer
Columbia Wanger Asset Management, L.P.

The information and data provided in this analysis are derived from sources that we deem to be reliable and accurate. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. The views/opinions expressed in "Squirrel Chatter II" are those of the author and not of the Columbia Acorn Trust Board, are subject to change at any time based upon economic, market or other conditions, may differ from views expressed by other Columbia Management associates or other divisions of Bank of America and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia Acorn Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia Acorn Fund.

Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. A fund that maintains a relatively concentrated portfolio may be subject to greater risk than a fund that is more fully diversified.

1  Wiseman, Richard, The Luck Factor, (New York, New York, Miramax Books/Hyperion 2003).

2  Sherwood, Ben, The Survivors Club, (New York, New York, Grand Central Publishing, 2009).

Also referenced in the writing of this essay was a research paper written by Eugene F. Fama and Kenneth R. French titled, "Luck versus Skill in the Cross Section of Mutual Fund Returns." The paper was originally dated October 2007 and updated in November 2009. It can be found on the Social Science Research Network's website at www.ssrn.com.


5


Understanding Your Expenses

As a Fund shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption or exchange fees. There are also ongoing costs, which generally include investment advisory fees, distribution and service (Rule 12b-1) fees and other Fund expenses. The following information is intended to help you understand your ongoing costs of investing in the Columbia Acorn Funds and to 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 the Class A, B and C shares of the Columbia Acorn Funds for the last six months. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different results. The amount listed in the "Actual" column is calculated using each Fund's actual operating expenses and total return for the period. The amount listed in the "Hypothetical" column assumes that the return each year is 5% before expenses and then applies each 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 reporting period. See "Compare With Other Funds" for details on using the hypothetical data.

July 1, 2009 – December 31, 2009

    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  
Columbia Acorn Fund  
Class A     1,000.00       1,000.00       1,270.10       1,020.01       5.89       5.24       1.03    
Class B     1,000.00       1,000.00       1,266.50       1,016.74       9.60       8.54       1.68    
Class C     1,000.00       1,000.00       1,265.20       1,015.88       10.56       9.40       1.85    
Columbia Acorn International  
Class A     1,000.00       1,000.00       1,242.40       1,018.65       7.35       6.61       1.30    
Class B     1,000.00       1,000.00       1,238.60       1,015.58       10.78       9.70       1.91    
Class C     1,000.00       1,000.00       1,237.10       1,014.67       11.78       10.61       2.09    
Columbia Acorn USA  
Class A     1,000.00       1,000.00       1,307.10       1,018.70       7.50       6.56       1.29    
Class B     1,000.00       1,000.00       1,302.90       1,015.43       11.26       9.86       1.94    
Class C     1,000.00       1,000.00       1,301.70       1,014.72       12.07       10.56       2.08    
Columbia Acorn International Select  
Class A     1,000.00       1,000.00       1,198.30       1,017.34       8.64       7.93       1.56    
Class B**     1,000.00       1,000.00       1,194.00       1,014.12       12.17       11.17       2.20    
Class C     1,000.00       1,000.00       1,192.80       1,013.11       13.26       12.18       2.40    

 


6


    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  
Columbia Acorn Select  
Class A     1,000.00       1,000.00       1,334.70       1,019.06       7.18       6.21       1.22    
Class B     1,000.00       1,000.00       1,329.80       1,015.48       11.33       9.80       1.93    
Class C     1,000.00       1,000.00       1,328.10       1,014.77       12.15       10.51       2.07    
Columbia Thermostat Fund**  
Class A     1,000.00       1,000.00       1,227.50       1,022.68       2.81       2.55       0.50    
Class B     1,000.00       1,000.00       1,224.00       1,020.16       5.61       5.09       1.00    
Class C     1,000.00       1,000.00       1,223.10       1,018.90       7.00       6.36       1.25    

 

Expenses paid during the period are equal to each Fund's annualized expense ratio, 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.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the Funds and do not reflect any transaction costs, such as sales charges or redemption or exchange fees. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning different funds. If these transaction costs were included, your costs would have been higher.

Columbia Thermostat Fund's expenses do not include fees and expenses incurred by the Fund from the underlying portfolio funds in which it invests.

*For the six months ended December 31, 2009.

**Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

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 Funds with other funds. To do so, compare the 5% 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 continuing costs of investing in a fund and do not reflect any transaction costs, such as sales charges or redemption or exchange fees.

Estimating Your Actual Expenses

To estimate the expenses that you actually paid over the period, first you will need your account balance at the end of the period:

•  For shareholders who receive their account statements from Columbia Management Services, Inc., your account balance is available online at columbiafunds.com or by calling Shareholder Services at (800) 922-6769.

•  For shareholders who receive their account statements from their brokerage firm, contact your brokerage firm to obtain your account balance.

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table titled "Expenses paid during the period," locate the amount for your Fund. You will find this number is in the column labeled "Actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.


7



Columbia Acorn Fund

In a Nutshell

   
Charles P. McQuaid   Robert A. Mohn  
Lead Portfolio Manager   Co-Portfolio Manager  

 

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Crown Castle International     1.7 %  
Coach     1.5 %  
FMC Technologies     1.2 %  
tw telecom     1.1 %  
Fugro     1.1 %  
Southwestern Energy     1.0 %  
Urban Outfitters     1.0 %  
Chico's FAS     0.8 %  
Atwood Oceanics     0.8 %  
J Crew Group     0.8 %  
Valley National Bancorp     0.5 %  
Pacific Rubiales Energy     0.5 %  
Illumina     0.4 %  
MB Financial     0.3 %  
Associated Banc-Corp     0.3 %  

 

Columbia Acorn Fund jumped 39.26% (Class A shares, without sales charge) in 2009, 4.87% above its primary benchmark, the Russell 2500 Index. During the fourth quarter, the Fund appreciated 5.69%, modestly more than the Russell 2500's 5.08% gain. Additional performance comparisons can be found on Page 2 of this report.

Energy stocks were important contributors to the Fund's performance for the year and the quarter. Offshore oil service providers FMC Technologies, Fugro and Atwood Oceanics all more than doubled during the year on strong revenues and volumes. Oil and gas producers Southwestern Energy and Pacific Rubiales Energy provided 13% and 19% returns in the fourth quarter due to increased production, while XTO Energy rose 16% as its acquisition by Exxon Mobil was announced in December. We sold the Fund's XTO shares on the news.

Telecom stocks were also strong performers. Communications tower company Crown Castle International provided the Fund's largest dollar gains during both periods on a 122% surge for the year, including a 24% gain in the fourth quarter. We had added to holdings in Crown Castle during the credit crunch in late 2008, correctly believing in the company's business model and its ability to service a fairly large debt load. Provider of fiber optic telephone and data services tw telecom doubled during the year and gained 27% in the quarter as its business model proved to be fairly resistant to the recession.

After a tough 2008, retailers cashed in big gains in 2009. J Crew Group more than tripled and Urban Outfitters more than doubled on fine earnings due to strong product lines, market share gains and expense controls. Chico's FAS stock jumped 268% as new management executed a turnaround plan. Handbag designer and marketer Coach bagged a 77% gain for the year as management continued to execute well. All were up between 8% and 25% during the fourth quarter.

As might be expected given its overall results, Columbia Acorn Fund had few large losers in 2009. In the financials sector, Associated Banc-Corp was the largest dollar loser, falling 46% on large credit losses, while MB Financial and Valley National Bancorp fell about half that percentage for much the same reason. While we hate any losses, the Fund's aggregate bank holdings fell 5% in the year, much less than the loss of 22% in the benchmark's bank portfolio. During the quarter, Illumina, a maker of medical devices, was the largest dollar loser, off 28% on a revenue shortfall.

Columbia Acorn Fund's foreign stocks were up 76.73% for the year and 6.84% for the fourth quarter. The foreign portfolio has relatively large weights in energy and materials companies, which have done well. Fugro and Pacific Rubiales Energy, mentioned above, were the top international contributors. At year-end, international stocks made up 11.1% of the Fund.

We spent much of the last 15 months dealing with a volatile stock market and a weak economy. Understanding that smaller caps and more risky stocks have historically tended to recover the most off a deep market bottom, we prudently pursued them. Many of those investments were successful, and now we are pursuing companies that we expect to have good earnings growth. While we are happy with 2009 and fourth quarter performance, we realize that we have still not returned to the Fund's 2008 highs.

Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


8


Columbia Acorn Fund (LACAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Based on Class A Share Returns)

through December 31, 2009

Inception 10/16/00     1 year   5 years   Life of fund  
Returns before taxes   NAV
POP		   39.26%
31.25		   3.35%
2.14		   7.93%
7.24		  
Returns after taxes on
distributions		   NAV
POP		   39.26
31.25		   2.62
1.41		   7.13
6.44		  
Returns after taxes
on distributions and
sale of fund shares		   NAV
POP		   25.52
20.31		   2.92
1.87		   6.83
6.20		  
Russell 2500 Index (pretax)*     34.39   1.58   5.24  

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes. Investment returns and principal value may fluctuate, resulting in a gain or loss on sale.

Public offering price (POP) returns include the maximum sales charge of 5.75% for Class A shares. Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC).

The Fund's Class A shares annual operating expense ratio, as stated in the current prospectus, is 1.05%.

Columbia Acorn Fund Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn Fund Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Crown Castle International
Communications Towers		   1.7%
 		 
  2.     Coach
Designer & Retailer of Branded Leather Accessories		   1.5%
 		 
  3.     Informatica
Enterprise Data Integration Software		   1.2%
 		 
  4.     FMC Technologies
Oil & Gas Wellhead Manufacturer		   1.2%
 		 
  5.     Donaldson
Industrial Air Filtration		   1.2%
 		 
  6.     Amphenol
Electronic Connectors		   1.2%
 		 
  7.     Ametek
Aerospace/Industrial Instruments		   1.2%
 		 
  8.     Bally Technologies
Slot Machines & Software		   1.1%
 		 
  9.     tw telecom
Fiber Optic Telephone/Data Services		   1.1%
 		 
  10.     Fugro (Netherlands)
Sub-sea Oilfield Services		   1.1%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn Fund (Class A)

October 16, 2000 through December 31, 2009

Illustration is based on a hypothetical $10,000 investment from inception in Class A shares of the Fund, which includes a 5.75% maximum initial sales charge. The Russell 2500 Index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $14.7 billion


9


Columbia Acorn International

In a Nutshell

   
P. Zachary Egan   Louis J. Mendes III  
Co-Portfolio Manager   Co-Portfolio Manager  

 

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund's Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Naspers     1.8 %  
Seven Bank     0.5 %  
Wacom     0.4 %  

 

Columbia Acorn International returned 4.25% (Class A shares, without sales charge) in the fourth quarter of 2009, 0.79% ahead of its primary benchmark, the S&P Global Ex-U.S. Between $500 Million and $5 Billion Index. The Fund's annual total return of 50.40% trailed its benchmark by 5.09%. Across most markets, share price performance was negatively correlated with size as smaller-capitalized stocks outperformed their larger brethren. The large-cap MSCI EAFE Index returned a relatively modest 31.78%.

We manage Columbia Acorn International with the intention of holding Fund investments for three- to five-years, which is relatively long among international small-cap managers. We believe Fund performance should be considered in this context. A glance at the performance table on Page 2 shows that the Fund's three- and five-year average annual returns were -1.77% and 9.08%, respectively. Both results remain ahead of Fund benchmarks and peer averages.

Much has been written in the financial press about the equity market's return from the precipice after a difficult January and February in 2009. We will not reproduce that discussion here, other than to note that the market rebound generally played out in a fashion consistent with a sudden subsidence of risk aversion across the board. The riskiest equities, including illiquid micro-caps, highly indebted companies and emerging market stocks, led the charge upward. In contrast, lower-risk markets such as Japan, where stocks are cheap, balance sheets overcapitalized and growth expectations generally too anemic to provide cause for disappointment, barely moved. Japanese small- to mid-cap stocks rose a mere 5.6% in U.S. dollar terms in 2009. In this context, it is interesting to look at the winning and losing stocks in the Fund whose performance cannot be explained by changes in how risk is priced alone. This highlights where stock picking matters.

Fund standouts on the upside included Naspers and Wacom. Naspers is a misunderstood South African-listed media company. With a dominant pay TV franchise in sub-Saharan Africa and a large stake in Tencent, a Hong Kong-listed Internet service provider and gaming company targeting the Chinese market, many investors have been unsure how to analyze the company. Our colleague Fritz Kaegi ferreted out this South African company, which more than doubled in the year and is now the Fund's largest position. Wacom is a Japanese technology company that jumped 155% in 2009 when demand for its pen tablet for professional and consumer applications proved resilient in a weak IT market. The company's new multi-finger touch screen for PCs also has a chance of playing an important role in the next generation of PC user interfaces.

On the downside, the Fund sold its investment in ING Bank Slaski at a 52% annual loss after wrongly judging that the Polish government would intervene in the currency market. This intervention would have let corporations off the hook on costly forward contracts they held with Polish banks. Japanese cash machine network operator Seven Bank, which operates ATMs at convenience stores, ended the year down 47% as investors worried that deflation expectations and weak consumer spending would reduce cash withdrawals and new consumer finance regulations would constrain high margin lending on ATM cards.

International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments. Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


10


Columbia Acorn International (LAIAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Based on Class A Share Returns)

through December 31, 2009

Inception 10/16/00     1 year   5 years   Life of fund  
Returns before taxes   NAV
POP		   50.40%
41.75		   9.08%
7.79		   6.73%
6.05		  
Returns after taxes on
distributions		   NAV
POP		   49.63
41.02		   8.25
6.97		   5.97
5.29		  
Returns after taxes
on distributions and
sale of fund shares		   NAV
POP		   32.66
27.05		   7.91
6.77		   5.76
5.15		  
S&P Global Ex-U.S.
Between $500 Million and
$5 Billion Index (pretax)*		       55.49   8.16   10.05  

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes. Investment returns and principal value may fluctuate, resulting in a gain or loss on sale.

Public offering price (POP) returns include the maximum sales charge of 5.75% for Class A shares. Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC).

The Fund's Class A shares annual operating expense ratio, as stated in the current prospectus, is 1.31%.

Columbia Acorn International Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn International Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Naspers (South Africa)
Media in Africa & Other Emerging Markets		   1.8%
 		 
  2.     Olam International (Singapore)
Agriculture Supply Chain Manager		   1.5%
 		 
  3.     Eldorado Gold (Canada)
Gold Miner in Turkey, Greece, China & Brazil		   1.3%
 		 
  4.     Serco (United Kingdom)
Facilities Management		   1.2%
 		 
  5.     Localiza Rent A Car (Brazil)
Car Rental		   1.2%
 		 
  6.     Hexagon (Sweden)
Measurement Equipment		   1.2%
 		 
  7.     Kansai Paint (Japan)
Paint Producer in Japan, India, China & Southeast Asia		   1.2%
 		 
  8.     Imtech (Netherlands)
Electromechanical & ICT Installation & Maintenance		   1.1%
 		 
  9.     Suzano (Brazil)
Brazilian Pulp & Paper Producer		   1.1%
 		 
  10.     Atwood Oceanics (United States)
Offshore Drilling Contractor		   1.1%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn International (Class A)

October 16, 2000 through December 31, 2009

Illustration is based on a hypothetical $10,000 investment from inception in Class A shares of the Fund, which includes a 5.75% maximum initial sales charge. The S&P Global Ex-U.S. Between $500 Million and $5 Billion Index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $4.4 billion


11


Columbia Acorn USA

In a Nutshell

Robert A. Mohn

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Crown Castle International     3.5 %  
tw telecom     2.5 %  
FMC Technologies     2.1 %  
Atwood Oceanics     1.9 %  
AmeriCredit     1.6 %  
Donaldson     1.4 %  
ITT Educational Services     1.3 %  
World Acceptance     1.1 %  
Valley National Bancorp     1.0 %  
Switch & Data Facilities     0.7 %  
MB Financial     0.7 %  
Human Genome Sciences     0.7 %  
Lakeland Financial     0.5 %  
Pacific Continental     0.4 %  
True Religion Apparel     0.4 %  
Berkshire Hills Bancorp     0.4 %  
Illumina     0.3 %  
Psychiatric Solutions     0.3 %  
Cephalon     0.3 %  
Associated Banc-Corp     0.2 %  

 

Columbia Acorn USA ended the fourth quarter of 2009 up 5.95% (Class A shares, without sales charge), outperforming the 3.87% gain of its primary benchmark, the Russell 2000 Index. For the year, the Fund strongly outperformed the Russell 2000 with a 41.07% return vs. a 27.17% annual gain for the index. While we are happy with 2009 performance, we realize that we have still not returned to the Fund's 2008 highs.

Fund telecommunication stocks continued to perform well in the fourth quarter. Both Crown Castle International, an owner of communications towers, and tw telecom, a provider of fiber optic telephone and data services, had solid revenue growth despite the Great Recession. These stocks both were up roughly 25% for the quarter and ended the year up over 100%.

Our holdings of companies in the consumer finance sector were also strong in the quarter as these stocks benefited from the disappearance of many of their competitors. World Acceptance, a provider of smaller personal loans, saw its earnings grow 48% year-over-year through September and announced a decrease in credit losses. Its stock gained 42% in the fourth quarter. Several large banks have completely withdrawn from the business of making used auto loans, and this reduction in supply has contributed to boosted lending spreads for surviving lenders such as AmeriCredit. AmeriCredit enjoyed a 21% gain in the fourth quarter and ended the year up 149%.

Biotech company Human Genome Sciences continued its strong run in the fourth quarter, posting a 62% gain after announcing additional positive results from its lupus drug trials. Its annual gain was a whopping 840%. Switch & Data Facilities, a provider of data center and Internet exchange services, gained 49% in the quarter and 179% for the year on news that it would be acquired by Equinix, a provider of data center operations and infrastructure services. Donaldson, a maker of industrial air filters, gained 23% in the quarter as the company controlled costs and increased its market share.

Top contributors to the Fund's annual performance were energy stocks FMC Technologies, an oil and gas wellhead manufacturer, and Atwood Oceanics, an offshore drilling contractor. Both had annual gains of over 140% as the industry's focus on deep sea drilling fueled growth in their businesses.

On the downside for the quarter, ITT Educational Services, a provider of post-secondary degree programs, fell 13% as student debt defaults showed signs of increasing. Premium denim retailer True Religion Apparel and Illumina, a maker of medical devices, reported disappointing third quarter sales, sending both companies' stocks down roughly 28%. Psychiatric Solutions, a provider of behavioral health services, fell 23% in the quarter and 26% for the year. Its business was hurt by an increase in the percentage of its patients who were uninsured.

Six of the 15 biggest detractors to performance in the Fund for the year were regional banks. MB Financial, Valley National Bancorp, Lakeland Financial, Berkshire Hills Bancorp, Associated Banc-Corp and Pacific Continental were all down between 22% and 46%. Losses on commercial loans held by these banks accelerated throughout the year, particularly on loans tied to new residential developments. Another laggard for the year was pharmaceutical company Cephalon, which was off nearly 20% in the Fund. Several of Cephalon's drug patents will expire soon, making way for competition from generics.

This past year started off with tremendous uncertainty but we were able to take advantage of the volatility in the market to make some opportunistic purchases of beaten down stocks. As we move into a new year, we plan to focus on finding stocks in smaller, niche companies, which we believe have good growth prospects and trade at attractive prices.

Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


12


Columbia Acorn USA (LAUAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Based on Class A Share Returns)

through December 31, 2009

Inception 10/16/00     1 year   5 years   Life of fund  
Returns before taxes   NAV
POP		   41.07%
32.96		   1.43%
0.23		   7.52%
6.83		  
Returns after taxes on
distributions		   NAV
POP		   41.07
32.96		   0.92
-0.27		   7.19
6.51		  
Returns after taxes
on distributions and
sale of fund shares		   NAV
POP		   26.69
21.42		   1.27
0.25		   6.65
6.03		  
Russell 2000 Index (pretax)*     27.17   0.51   4.28  

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes. Investment returns and principal value may fluctuate, resulting in a gain or loss on sale.

Public offering price (POP) returns include the maximum sales charge of 5.75% for Class A shares. Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC).

The Fund's Class A shares annual operating expense ratio, as stated in the current prospectus, is 1.29%.

Columbia Acorn USA Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn USA Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Crown Castle International
Communications Towers		   3.5%
 		 
  2.     tw telecom
Fiber Optic Telephone/Data Services		   2.5%
 		 
  3.     Informatica
Enterprise Data Integration Software		   2.1%
 		 
  4.     FMC Technologies
Oil & Gas Wellhead Manufacturer		   2.1%
 		 
  5.     Atwood Oceanics
Offshore Drilling Contractor		   1.9%
 		 
  6.     Global Payments
Credit Card Processor		   1.8%
 		 
  7.     Ametek
Aerospace/Industrial Instruments		   1.7%
 		 
  8.     Bally Technologies
Slot Machines & Software		   1.7%
 		 
  9.     Nordson
Dispensing Systems for Adhesives & Coatings		   1.6%
 		 
  10.     AmeriCredit
Auto Lending		   1.6%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn USA (Class A)

October 16, 2000 through December 31, 2009

Illustration is based on a hypothetical $10,000 investment from inception in Class A shares of the Fund, which includes a 5.75% maximum initial sales charge. The Russell 2000 Index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $1.4 billion


13


Columbia Acorn International Select

In a Nutshell

Christopher J. Olson

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund's Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

Naspers     6.2 %  
Ascendas REIT     2.9 %  
Hexagon     2.4 %  
Pacific Rubiales Energy     2.2 %  
Jupiter Telecommunications     2.2 %  
Potash Corp. of Saskatchewan     2.1 %  
Benesse     1.9 %  
Rohto Pharmaceutical     1.8 %  
Seven Bank     1.7 %  
Ain Pharmaciez     0.9 %  
Kamigumi     0.8 %  

 

Columbia Acorn International Select ended the fourth quarter up 4.51% (Class A shares, without sales charge) while its primary benchmark, the S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index, gained 1.14%. For the year ended December 31, 2009, the Fund had a 31.01% return while its benchmark was up 38.60%. Having positioned the Fund well for the previous downturn, the Fund lagged over the past year as the markets were boosted by an unprecedented amount of monetary and fiscal stimulus. Our focus for the Fund has been on companies with competitive market positions and business models, longer-term growth prospects and solid balance sheets, but these companies were not strong performers during 2009 as investor appetite for risk returned and lower quality stocks rallied. We intend to continue to manage the Fund following the approach that has resulted in good outperformance relative to its benchmark and peers over the past three- and five-year periods.

Naspers was the top dollar contributor to Fund performance for the quarter and for the year. Its stock rose 18% in the fourth quarter and ended the year up 121%. Naspers is a media company with assets in South Africa and other emerging markets that has enjoyed strong earnings growth and has benefited from its stake in the rapidly growing Chinese Internet company, Tencent. Hexagon, a Swedish manufacturer of measurement equipment, gained 23% in the fourth quarter and ended the year up 194%. The company's business fundamentals remained robust throughout the recession due to its strong focus on emerging markets where growth has proven to be more stable.

Canadian potash producer Potash Corp. of Saskatchewan had a 21% gain in the quarter and an annual return of 81% as the market's hope of a bottoming, and subsequently rebounding, potash price fed through to the stock. Ascendas REIT, an industrial property landlord in Singapore, gained 16% in the quarter and ended the year up 75% as the demand for property assets increased with the recovery in Singapore's economy. Canada's Pacific Rubiales Energy, an oil production and exploration company with operating assets in Colombia, gained 19% in the quarter and ended the year up an impressive 680%. The stock has benefited from increasing production and new exploration discoveries in Colombia as well as the rebound in oil prices.

Japanese holdings in the Fund were weak in the fourth quarter as investors flocked to riskier investments and markets. Japan's Seven Bank, Rohto Pharmaceutical, Benesse, Ain Pharmaciez and Kamigumi returned losses ranging from 10% to 20%. Japanese companies were also well represented among the Fund's biggest losers for the annual period, with Jupiter Telecommunications, Nintendo and Seven Bank down between 5% and 30% for the year. We sold out of Nintendo early in the third quarter of 2009. The Japanese economy continues to suffer from a deflationary environment and declining population. While stocks in Japan are beginning to look interesting from a valuation perspective, the growth outlook remains uncertain, and investors reduced their Japanese holdings over the course of the year to focus on companies in other regions. Cephalon, a U.S. pharmaceutical company, was the biggest detractor to the Fund's annual performance, falling more than 20% in the Fund. Upcoming patent expirations on several of Cephalon's drugs will make way for competition from generics, and potential health care reform in the United States added to uncertainty about its business. The Fund sold out of its position in Cephalon in the fourth quarter.

International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments. Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Investing in emerging markets may involve greater risks than investing in more developed countries.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


14


Columbia Acorn International Select (LAFAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Based on Class A Share Returns)

through December 31, 2009

Inception 10/16/00     1 year   5 years   Life of fund  
Returns before taxes   NAV
POP		   31.01%
23.48		   7.62%
6.35		   4.25%
3.58		  
Returns after taxes on
distributions		   NAV
POP		   30.66
23.15		   7.33
6.07		   4.11
3.44		  
Returns after taxes
on distributions and
sale of fund shares		   NAV
POP		   20.12
15.23		   6.68
5.56		   3.75
3.16		  
S&P Developed Ex-U.S.
Between $2 Billion and
$10 Billion Index (pretax)*		     38.60   4.99   7.18  

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes. Investment returns and principal value may fluctuate, resulting in a gain or loss on sale.

Public offering price (POP) returns include the maximum sales charge of 5.75% for Class A shares. Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC).

The Fund's Class A shares annual operating expense ratio, as stated in the current prospectus, is 1.54%.

Columbia Acorn International Select Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn International Select Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     Naspers (South Africa)
Media in Africa & Other Emerging Markets		   6.2%
 		 
  2.     Serco (United Kingdom)
Facilities Management		   4.9%
 		 
  3.     Capita Group (United Kingdom)
White Collar, Back Office Outsourcing		   3.2%
 		 
  4.     NHN (South Korea)
South Korea's Largest Online Search Engine		   2.9%
 		 
  5.     Ascendas REIT (Singapore)
Singapore Industrial Property Landlord		   2.9%
 		 
  6.     Olam International (Singapore)
Agriculture Supply Chain Manager		   2.8%
 		 
  7.     Red Electrica de Espana (Spain)
Spanish Power Transmission		   2.6%
 		 
  8.     Cobham (United Kingdom)
Aerospace Components		   2.6%
 		 
  9.     Kansai Paint (Japan)
Paint Producer in Japan, India, China & Southeast Asia		   2.6%
 		 
  10.     Intertek Group (United Kingdom)
Testing, Inspection & Certification Services		   2.6%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn International Select (Class A)

October 16, 2000 through December 31, 2009

Illustration is based on a hypothetical $10,000 investment from inception in Class A shares of the Fund, which includes a 5.75% maximum initial sales charge. The S&P Developed Ex-U.S. Between $2 Billion and $10 Billion Index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $410.7 million


15


Columbia Acorn Select

In a Nutshell

Ben Andrews

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

Fund's Positions
in Mentioned Holdings

As a percentage of net assets,
as of 12/31/09

ITT Educational Services     4.9 %  
Pacific Rubiales Energy     4.9 %  
Sanmina-SCI     4.7 %  
Safeway     3.9 %  
Expedia     3.4 %  
Canadian Solar     2.8 %  
American Commercial Lines     1.1 %  
Houston American Energy     0.3 %  
GLG Life Tech     0.0 %*  
Fu Ji Food & Catering Services     0.0 %*  
ChemSpec International     0.0 %*  

 

*Rounds to less than 0.1%.

Columbia Acorn Select gained 7.75% (Class A shares, without sales charge) in the fourth quarter of 2009. This exceeded the 5.56% rise in the Fund's primary benchmark, the S&P MidCap 400 Index. For the year, the Fund outperformed its benchmark by 28 percentage points with a 65.65% gain vs. a 37.38% return for the S&P MidCap 400 Index. We are pleased that we could offer our shareholders such strong performance. The S&P 500 Index, which is a large-cap index, trailed mid-caps with a 26.46% annual return.

The Fund's top two dollar winners for the fourth quarter were Canadian Solar, a solar-power equipment manufacturer, and Sanmina-SCI, a provider of electronic manufacturing services, which together added almost 2.6% to the Fund's performance. The two top dollar losers for the quarter were American Commercial Lines, a barge operator and builder, and ITT Educational Services, a provider of post-secondary degree programs, which together cost the Fund 1.6% of performance. For the year, Pacific Rubiales Energy, an oil production and exploration company, Sanmina-SCI and Expedia, a provider of online travel services, contributed about 20% of the Fund's 66% return. On the downside, pharmaceutical company Cephalon, supermarket chain Safeway and Chinese caterer Fu Ji Food & Catering Services together cost the Fund about 3% of its yearly portfolio return. We sold the Fund's position in Cephalon in the first half of the year.

During the fourth quarter, we added three new companies to the Fund's portfolio. The new investments were GLG Life Tech, ChemSpec International and Houston American Energy. GLG Life Tech produces an all natural, zero calorie sweetener made from the stevia plant. ChemSpec is a fluorinated specialty chemicals manufacturer, and Houston American Energy is an oil and gas exploration and production company with its primary operations in Colombia.

During the quarter we sold the Fund's position in Donaldson, a maker of industrial air filters, FMC Technologies, an oil and gas wellhead manufacturer, and retailer The Gap Stores. We sold down or out of the Fund's larger oil service/production companies while investing the dollars back into smaller oil companies, primarily those located in Colombia.

The U.S. economy is continuing to recover as we enter 2010, but unemployment remains high. However, I believe failure to pass a carbon tax and/or health care legislation could benefit both the economy and the market as it would clear away uncertainty, which is restraining job growth within two of this country's largest employing industries: industrials/oil/utilities and health care. I believe employment could also get a boost if the government chooses not to let the sun setting tax cuts, which are estimated to account for approximately 2% of GDP—a significant figure in an economy with over 10% unemployment—expire at the end of 2010. If these scenarios evolve, employment could rebound. Until then, our focus will be to find stocks that we believe can perform well in a slower growth environment.

Risks include stock market fluctuations due to economic and business developments. The Fund also has potentially greater price volatility due to the Fund's concentration in a limited number of stocks of mid-size companies. The Fund is a non-diversified fund and may, therefore, have a greater risk of loss from a few issuers than a similar fund that invests more broadly. The Fund may not operate as a non-diversified fund at all times. International investments involve greater potential risks, including less regulation, currency fluctuations, economic instability and political developments.

Portfolio holdings are subject to change periodically and may not be representative of current holdings.


16


Columbia Acorn Select (LTFAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Based on Class A Share Returns)

through December 31, 2009

Inception 10/16/00     1 year   5 years   Life of fund  
Returns before taxes   NAV
POP		   65.65%
56.13		   3.87%
2.65		   7.52%
6.83		  
Returns after taxes on
distributions		   NAV
POP		   65.65
56.13		   3.56
2.34		   7.26
6.58		  
Returns after taxes
on distributions and
sale of fund shares		   NAV
POP		   42.67
36.48		   3.34
2.28		   6.62
5.99		  
S&P MidCap 400 Index (pretax)*     37.38   3.27   5.44  

 

All results shown assume reinvestment of distributions.

*The Fund's primary benchmark.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes. Investment returns and principal value may fluctuate, resulting in a gain or loss on sale.

Public offering price (POP) returns include the maximum sales charge of 5.75% for Class A shares. Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC).

The Fund's Class A shares annual operating expense ratio, as stated in the current prospectus, is 1.24%.

Columbia Acorn Select Portfolio Diversification

as a percentage of net assets, as of 12/31/09

Columbia Acorn Select Top 10 Holdings

as a percentage of net assets, as of 12/31/09

  1.     ITT Educational Services
Post-secondary Degree Services		   4.9%
 		 
  2.     Pacific Rubiales Energy (Canada)
Oil Production & Exploration in Colombia		   4.9%
 		 
  3.     SkillSoft
Web-based Learning Solutions (E-Learning)		   4.8%
 		 
  4.     Sanmina-SCI
Electronic Manufacturing Services		   4.7%
 		 
  5.     Hertz
Largest U.S. Rental Car Operator		   4.6%
 		 
  6.     Safeway
Supermarkets		   3.9%
 		 
  7.     Conseco
Life, Long-term Care & Medical Supplement Insurance		   3.5%
 		 
  8.     Expedia
Online Travel Services Company		   3.4%
 		 
  9.     Crown Castle International
Communications Towers		   3.1%
 		 
  10.     WNS (India)
Offshore BPO (Business Process Outsourcing) Services		   3.0%
 		 

 

The Fund's top 10 holdings and portfolio diversification vary with changes in portfolio investments. See the Statement of Investments for a complete list of the Fund's holdings.

The Growth of a $10,000 Investment in Columbia Acorn Select (Class A)

October 16, 2000 through December 31, 2009

Illustration is based on a hypothetical $10,000 investment from inception in Class A shares of the Fund, which includes a 5.75% maximum initial sales charge. The S&P MidCap 400 Index is unmanaged and returns for both the index and the Fund include reinvested dividends and capital gains. Although the index is provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $1.9 billion


17


Columbia Thermostat Fund

In a Nutshell

Charles P. McQuaid

Lead Portfolio Manager

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit columbiafunds.com for daily and most recent month-end performance updates.

A "fund of funds" bears its allocable share of the costs and expenses of the underlying funds in which it invests. Such funds are thus subject to two levels of fees and potentially higher expense ratios than would be associated with a fund that invests and trades directly in financial instruments under the direction of a single manager.

Columbia Thermostat Fund ended the fourth quarter up 5.62% (Class A shares, without sales charge), outperforming the 0.20% gain of the Barclays Capital U.S. Aggregate Bond Index, the Fund's primary bond benchmark, and underperforming the 6.04% return of the S&P 500 Index, the Fund's primary stock benchmark. For the year, the Fund's 31.98% return topped both indexes. The S&P 500 Index had an annual return of 26.46% and the Barclays Capital U.S. Aggregate Bond Index was up 5.93%.

We recently conducted a review of the structure, allocation percentages and underlying funds that comprise Columbia Thermostat Fund and, as a result of this review, we have made some changes to the Fund's structure. These changes went into effect on January 13, 2010, just after the period covered by this report. The specifics of these investment strategy changes are summarized below:

• We implemented a 90% maximum and a 10% minimum for both stock and bond allocations.

• The allocation of the Fund's assets among underlying stock and bond funds set forth in the Stock/Bond Allocation table in the Fund's prospectus has been modified in two additional ways. First, the increment in the S&P 500 Index that triggers a change in allocation has decreased from 60 to 50 points. Second, the range of the S&P 500 Index has been reduced so that allocations become static when the S&P 500 Index is at 1,000 and under (rather than 960 and under) or over 1,750 (rather than over 2,100).

• Consequently, the Fund now has a smaller percentage of assets in stock funds at the current level of the S&P 500 Index.

• The tighter range and smaller percentage in stock funds reflects our opinion that S&P 500 Index earnings and valuations will be lower than we previously expected.

• Believing that many foreign economies are likely to grow faster than the U.S. economy, we increased the stock fund allocation to Columbia Acorn International from 15% to 20%.

• To make room for additional international holdings, we reduced the stock fund allocation to the large-cap blend asset class from 25% to 20%.

• Within the large-cap blend asset class, we added Columbia Contrarian Core Fund as an underlying investment option and will split this allocation with Columbia Large Cap Enhanced Core Fund. Columbia Contrarian Core Fund has a fine track record and currently a greater bias towards growth stocks than Columbia Large Cap Enhanced Core Fund.

Results of the Funds Owned in Columbia Thermostat Fund as of December 31, 2009

Stock Funds
Fund		   Weightings
in category		   4th
quarter		   1 year  
Columbia Acorn Fund Z     15 %     5.74 %     39.65 %  
Columbia Acorn Select Z     10 %     7.79 %     66.17 %  
Columbia Marsico
Growth Fund Z		     15 %     6.56 %     29.37 %  
Columbia Acorn
International Z		     15 %     4.32 %     50.97 %  
Columbia Dividend
Income Fund Z		     20 %     6.82 %     18.59 %  
Columbia Large Cap
Enhanced Core Fund Z		     25 %     6.11 %     23.99 %  
Weighted Average
Equity Return/Loss		     100 %     6.20 %     33.80 %  
Bond Funds
Fund		   Weightings
in category		   4th
quarter		   1 year  
Columbia Intermediate
Bond Fund Z		     50 %     2.08 %     19.11 %  
Columbia U.S. Treasury
Index Fund Z		     30 %     -1.30 %     -3.77 %  
Columbia Conservative
High Yield Fund Z		     20 %     4.21 %     34.96 %  
Weighted Average
Income Return		     100 %     1.49 %     14.74 %  

 

Columbia Thermostat Fund
Rebalancing in the Fourth Quarter

October 15, 2009   85% stocks, 15% bonds  

 

The combination of our change in the allocation table and market movement resulted in Columbia Thermostat Fund having 70% in stock funds and 30% in bond funds as of press time on February 19, 2010.

The value of an investment in the Fund is based primarily on the performance of the underlying portfolio funds and the allocation of the Fund's assets among them. An investment in the underlying portfolio funds may present certain risks, including stock market fluctuations that occur in response to economic and business developments; and a greater degree of social, political and economic volatility associated with international investing. Stocks of small- and mid-cap companies pose special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies. Value stocks may also be subject to specific business risks that have caused the stocks to be out of favor. Lower-rated and medium quality debt securities are more speculative and incur more risk. International investing may involve certain risks, including currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks. Significant levels of foreign taxes, including potentially confiscatory levels of taxation and withholding taxes, may also apply to some foreign investments. Changes in interest rates and changes in the financial strength of issuers of lower-rated bonds may also affect underlying fund performance. The Fund is also subject to the risk that the investment advisor's decisions regarding asset classes and underlying portfolio funds will not anticipate market trends successfully, resulting in a failure to preserve capital or lower total return. In addition, the Fund may buy and sell shares of the portfolio funds frequently. This may result in higher transaction costs and additional tax liability. This is not an offer of the shares of any other mutual fund mentioned herein.


18


Columbia Thermostat Fund (CTFAX)

At a Glance

Performance data quoted represents past performance and current performance may be higher or lower. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Performance results reflect any fee waivers or reimbursements of Fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Please visit columbiafunds.com for daily and most recent month-end updates.

Pretax and After-tax Average Annual Total Returns (Based on Class A Share Returns)

through December 31, 2009

Inception 3/3/03     1 year   5 years   Life of fund  
Returns before taxes   NAV
POP		   31.98%
24.40		   2.87%
1.66		   6.56%
5.64		  
Returns after taxes on
distributions		   NAV
POP		   31.98
24.39		   1.28
0.09		   5.20
4.30		  
Returns after taxes
on distributions and
sale of fund shares		   NAV
POP		   20.79
15.86		   1.83
0.80		   5.14
4.33		  
S&P 500 Index (pretax)*     26.46   0.42   6.30  
Barclays Capital U.S. Aggregate
Bond Index (pretax)*		     5.93   4.97   4.65  
Lipper Flexible Portfolio Funds
Index (pretax)		     29.17   3.50   7.54  

 

All results shown assume reinvestment of distributions.

*The Fund's primary stock and bond benchmarks, respectively.

After-tax returns are calculated using the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes. Returns after taxes on distributions and sale of Fund shares reflect the additional tax impact of long-term gains or losses realized when Fund shares are sold. The returns are taxed at the maximum rate and assume shares were purchased at the beginning of the period. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only; after-tax returns for other share classes will vary. Indexes do not reflect any deduction for fees, expenses or taxes. Investment returns and principal value may fluctuate, resulting in a gain or loss on sale.

Public offering price (POP) returns include the maximum sales charge of 5.75% for Class A shares. Net asset value (NAV) returns do not include sales charges or contingent deferred sales charges (CDSC).

The Fund's annual operating expense ratio, as stated in the current prospectus, reflects a contractual expense waiver or reimbursement that expires April 30, 2010. Class A expense ratios without and with the contractual waiver, including fees and expenses associated with the Fund's investment in other investment companies, are 1.40% and 1.22%, respectively. Absent the waiver or reimbursement, performance results would have been lower.

Columbia Thermostat Fund Asset Allocation

as a percentage of net assets, as of 12/31/09

Columbia Thermostat Fund Portfolio Weightings

as a percentage of assets in each investment category, as of 12/31/09

Stock Mutual Funds

Columbia Large Cap Enhanced Core Fund, Class Z     25 %  
Columbia Dividend Income Fund, Class Z     20 %  
Columbia Acorn Fund, Class Z     15 %  
Columbia Acorn International, Class Z     15 %  
Columbia Marsico Growth Fund, Class Z     15 %  
Columbia Acorn Select, Class Z     10 %  

 

Bond Mutual Funds

Columbia Intermediate Bond Fund, Class Z     50 %  
Columbia U.S. Treasury Index Fund, Class Z     30 %  
Columbia Conservative High Yield Fund, Class Z     20 %  

 

The Growth of a $10,000 Investment in Columbia Thermostat Fund (Class A)

March 3, 2003 through December 31, 2009

Illustration is based on a hypothetical $10,000 investment from inception in Class A shares of the Fund, which includes a 5.75% maximum initial sales charge. The indexes are unmanaged (although the funds that comprise the Lipper Flexible Portfolio Funds Index are managed) and returns for both the indexes and the Fund include reinvested dividends and capital gains. Although the indexes are provided for use in assessing the Fund's performance, the Fund's holdings may differ significantly from those in the index. It is not possible to invest directly in an index. The graph does not reflect taxes that a shareholder would pay on Fund distributions or on a sale of Fund shares.

Total Net Assets of the Fund: $138.6 million


19



Columbia Acorn Fund

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Information  
AboveNet     500,000       600,000    
ANSYS     1,795,000       2,083,291    
Art Technology Group     885,000       2,594,654    
Blackboard     0       109,007    
Blue Coat Systems     786,000       1,534,000    
Discovery Communications,
Series C		     2,636,500       4,070,000    
Eutelsat (France)     250,000       400,000    
ExlService Holdings     0       747,658    
F5 Networks     920,000       1,045,000    
Mettler Toledo     1,385,000       1,450,000    
Monolithic Power Systems     745,000       870,000    
PAETEC Holding     8,500,000       9,600,000    
Plexus     1,275,000       1,395,000    
Tyler Technologies     632,890       1,134,260    
Consumer Goods & Services  
Abercrombie & Fitch     2,715,000       4,500,000    
Charming Shoppes     5,857,967       7,500,000    
Chico's FAS     7,767,000       8,514,272    
Diamond Foods     0       550,475    
Flowers Foods     497,511       819,000    
GLG Life Tech (Canada)     0       1,153,700    
Hansen Natural     1,600,000       1,802,600    
Hyatt Hotels     0       141,800    
Rue21     0       146,390    
Smart Balance     2,500,000       3,000,000    
Steelcase     2,612,606       3,000,000    
Industrial Goods & Services  
Airgas     2,275,000       2,555,200    
GrafTech International     1,050,000       1,680,000    
Jain Irrigation Systems (India)     440,416       1,000,000    
Pall     2,000,000       2,150,000    
Silgan Holdings     0       200,000    
TrueBlue     800,000       924,900    
Finance  
City National     170,000       295,000    
CVB Financial     0       830,700    
Eagle Bancorp     0       251,000    
Hanover Insurance Group     615,000       849,000    
Hudson Valley     0       660,000    
Leucadia National     2,220,000       2,427,400    
Pacific Continental     0       246,505    
SVB Financial Group     960,000       1,172,396    
Health Care  
Acorda Therapeutics     0       1,300,000    
Allos Therapeutics     1,800,000       2,800,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Allscripts-Misys Healthcare     0       700,000    
AthenaHealth     0       250,000    
Auxilium Pharmaceuticals     1,250,000       1,350,000    
BioMarin     3,000,000       3,250,000    
Gen-Probe     0       568,910    
Nanosphere     0       1,232,900    
PSS World Medical     2,300,000       2,750,000    
Seattle Genetics     3,250,000       4,117,700    
Sirona Dental Systems     650,500       850,000    
Energy & Minerals  
Alange Energy (Colombia)     156,500       8,435,000    
Baytex (Canada)     0       347,600    
Cabot Oil & Gas     0       250,000    
Houston American Energy     0       1,200,000    
Orko Silver (Canada)     3,500,000       10,000,000    
Pan Orient (Canada)     418,500       1,198,100    
Cap-Link Ventures     0       24,000,000    
Cap-Link Ventures-Warrants     0       24,000,000    
PolyMet Mining     1,000,000       1,500,000    
Royal Gold     400,000       500,000    
STR Holdings     0       400,000    
Zhaojin Mining Industry (China)     0       6,333,700    
Other Industries  
BioMed Realty Trust     1,360,000       2,260,902    
Macerich     865,037       880,376    
Old Dominion Freight Lines     0       150,000    
Terna (Italy)     0       3,500,000    

 

See accompanying notes to financial statements.


20


    Number of Shares  
    09/30/09   12/31/09  
Sales  
Information  
American Tower     1,500,000       1,200,000    
Cogent Communications     4,300,000       4,200,000    
Concur Technologies     1,400,000       1,200,000    
Dionex     500,000       400,000    
Discovery Communications     1,433,200       0    
Dolby Laboratories     1,340,000       1,140,000    
FARO Technologies     334,074       0    
Intermec     500,000       0    
Micros Systems     2,750,544       2,050,544    
ON Semiconductor     4,059,000       3,584,000    
Quality Systems     902,110       800,000    
Radiant Systems     2,204,336       1,000,000    
Red Hat     2,000,000       1,000,000    
SES (France)     893,000       702,000    
Trimble Navigation     1,770,000       1,545,000    
Varian     200,000       0    
Vasco Data Security International     154,749       0    
Consumer Goods & Services  
American Apparel     342,382       0    
Career Education     1,700,000       1,677,000    
Champion Enterprises     4,500,000       0    
Choice Hotels     1,700,000       1,300,000    
GameStop     1,650,000       0    
Herman Miller     3,500,000       2,800,000    
HNI     870,000       0    
Hot Topic     3,308,890       0    
Jarden     2,500,000       1,700,000    
Winnebago Industries     650,000       0    
Industrial Goods & Services  
Aalberts Industries (Netherlands)     2,825,285       2,200,000    
Administaff     1,935,000       1,428,224    
Clarcor     3,000,000       2,627,500    
FreightCar America     225,000       0    
Greif     600,000       500,000    
Haynes International     390,000       0    
Intertek Group (United Kingdom)     299,004       0    
Intrepid Potash     275,000       0    
Lincoln Electric     350,000       0    
Quanta Services     2,300,000       2,070,000    
Toro     1,075,000       900,000    
Watsco     725,000       625,000    
Finance  
Assurant     1,530,000       1,200,000    
BOK Financial     3,000,000       2,689,000    
Eaton Vance     4,235,000       3,735,000    
Protective Life     995,000       640,716    
West Coast Bancorp     1,000,000       491,788    

 

    Number of Shares  
    09/30/09   12/31/09  
Health Care  
Beckman Coulter     650,000       450,000    
Cephalon     1,250,000       475,000    
Cepheid     3,200,000       2,500,000    
Charles River Laboratories     1,050,000       700,000    
Edwards Lifesciences     600,000       500,000    
Henry Schein     1,090,000       800,000    
Hologic     1,900,000       0    
Human Genome Sciences     3,200,000       2,500,000    
InterMune     1,300,000       885,000    
Kinetic Concepts     900,000       400,000    
Luminex     1,700,000       0    
Myriad Genetics     1,735,000       1,200,000    
Nektar Therapeutics     4,425,000       3,052,000    
Poniard     1,450,916       0    
Psychiatric Solutions     2,200,000       1,300,000    
Thoratec     148,000       0    
United Therapeutics     900,000       760,000    
Energy & Minerals  
Carrizo Oil & Gas     1,167,000       994,900    
Trinidad Drilling (Canada)     5,000,000       3,677,900    
XTO Energy     1,580,000       0    
Other Industries  
American Commercial Lines     625,000       602,000    
Forest City Enterprises, Class B     1,158,000       1,105,289    
SL Green Realty     580,000       440,000    

 

See accompanying notes to financial statements.


21


Columbia Acorn Fund

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 97.2%    
Information 25.8%      
    > Business Software 4.7%  
  7,000,000     Informatica (a)(b)   $ 181,020    
        Enterprise Data Integration Software        
  2,083,291     ANSYS (a)     90,540    
        Simulation Software for Engineers & Designers        
  2,050,544     Micros Systems (a)     63,628    
        Information Systems for Restaurants & Hotels        
  12,500,000     Novell (a)     51,875    
        Directory, Operating System & Identity
Management Software		        
  1,200,000     Concur Technologies (a)     51,300    
        Web Enabled Cost & Expense
Management Software		        
  800,000     Quality Systems     50,231    
        IT Systems for Medical Groups &
Ambulatory Care Centers		        
  1,800,000     Blackbaud     42,534    
        Software & Services for Non-profits        
  2,425,000     Kenexa (a)(b)     31,646    
        Recruiting & Workforce Management Solutions        
  1,000,000     Red Hat (a)     30,900    
        Maintenance & Support for Open
Source & Middleware		        
  1,134,260     Tyler Technologies (a)     22,583    
        Financial, Tax, Court & Document
Management Systems for Government		        
  1,000,000     NetSuite (a)(c)     15,980    
        End to End IT Systems Solutions
Delivered Over the Web		        
  3,700,000     Actuate (a)(b)     15,836    
        Information Delivery Software & Solutions        
  2,594,654     Art Technology Group (a)     11,702    
        Software & Tools to Optimize Websites
for E-commerce		        
  1,000,000     Radiant Systems (a)     10,400    
        IT Systems for Restaurants, Convenience
Stores & Retail Stores		        
  700,000     Avid Technology (a)     8,932    
        Digital Nonlinear Editing Software & Systems        
  109,007     Blackboard (a)     4,948    
        Education Software        
      684,055    
    > Computer Hardware & Related
Equipment 2.9%		  
  3,800,000     Amphenol     175,484    
        Electronic Connectors        
  2,400,000     II-VI (a)(b)     76,320    
        Laser Optics & Specialty Materials        
  1,140,000     Dolby Laboratories (a)     54,412    
        Audio Technology for Consumer Electronics        
  1,400,000     Zebra Technologies (a)     39,704    
        Bar Code Printers        
  800,000     Nice Systems - ADR (Israel) (a)     24,832    
        Audio & Video Recording Solutions        
  970,000     Netgear (a)     21,039    
        Networking Products for Small Business & Home        
  740,000     Belden CDT     16,221    
        Specialty Cable        

 

Number of Shares     Value (000)  
  805,000     Stratasys (a)(c)   $ 13,911    
        Rapid Prototyping Systems        
  340,000     Teradata (a)     10,686    
        Enterprise Data Warehouse Systems        
      432,609    
    > Instrumentation 2.9%  
  1,450,000     Mettler Toledo (a)     152,235    
        Laboratory Equipment        
  5,200,000     Hexagon (Sweden)     76,386    
        Measurement Equipment        
  2,200,000     FLIR Systems (a)     71,984    
        Infrared Cameras        
  2,750,000     IPG Photonics (a)(b)     46,035    
        Fiber Lasers        
  1,545,000     Trimble Navigation (a)     38,934    
        GPS-based Instruments        
  400,000     Dionex (a)     29,548    
        Ion & Liquid Chromatography        
  400,000     Hamamatsu Photonics (Japan)     9,661    
        Optical Sensors for Medical &
Industrial Applications		        
      424,783    
    > Mobile Communications 2.6%  
  6,575,000     Crown Castle International (a)     256,688    
        Communications Towers        
  2,000,000     SBA Communications (a)     68,320    
        Communications Towers        
  1,200,000     American Tower (a)     51,852    
        Communications Towers in USA &
Latin America		        
  1,000,000     MetroPCS Communications (a)     7,630    
        Discount Cellular Telephone Services        
  1,500,000     Globalstar (a)(c)     1,305    
        Satellite Mobile Voice & Data Carrier        
      385,795    
    > Telephone and Data Services 2.0%  
  9,500,000     tw telecom (a)(b)     162,830    
        Fiber Optic Telephone/Data Services        
  4,200,000     Cogent Communications (a)(b)     41,412    
        Internet Data Pipelines        
  9,600,000     PAETEC Holding (a)(b)     39,840    
        Telephone/Data Services for Business        
  600,000     AboveNet (a)     39,024    
        Metropolitan Fiber Communications Services        
  2,000,000     General Communications (a)     12,760    
        Commercial Communications & Consumer
CATV, Web & Phone in Alaska		        
      295,866    
    > Financial Processors 1.7%  
  2,919,000     Global Payments     157,217    
        Credit Card Processor        
  10,000,000     Singapore Exchange (Singapore)     58,948    
        Singapore Equity & Derivatives Market Operator        
  2,125,000     Hong Kong Exchanges and Clearing
(Hong Kong)		     37,830    
        Hong Kong Equity & Derivatives
Market Operator		        
      253,995    

 

See accompanying notes to financial statements.


22


Number of Shares     Value (000)  
    > CATV 1.4%  
  4,070,000     Discovery Communications,
Series C (a)		   $ 107,936    
        CATV Programming        
  47,000     Jupiter Telecommunications (Japan)     46,564    
        Largest Cable Service Provider in Japan        
  1,250,000     Liberty Global, Series A (a)     27,388    
        Cable TV Franchises Outside the USA        
  4,000,000     Mediacom Communications (a)(b)     17,880    
        Cable Television Franchises        
      199,768    
    > Semiconductors & Related
Equipment 1.3%		  
  3,584,000     ON Semiconductor (a)     31,575    
        Mixed-signal & Power
Management Semiconductors		        
  1,035,000     Supertex (a)(b)     30,843    
        Analog/Mixed-signal Semiconductors        
  1,620,000     Microsemi (a)     28,755    
        Analog/Mixed-signal Semiconductors        
  870,000     Monolithic Power Systems (a)     20,854    
        High Performance Analog & Mixed-signal
Integrated Circuits (ICs)		        
  1,765,000     Pericom Semiconductor (a)(b)     20,350    
        Interface Integrated Circuits (ICs) &
Frequency Control Products		        
  3,750,000     Entegris (a)     19,800    
        Semiconductor Materials Management Products        
  500,000     Littelfuse (a)     16,075    
        Little Fuses        
  1,900,000     IXYS (a)(b)     14,098    
        Power Semiconductors        
  2,110,000     Integrated Device Technology (a)     13,652    
        Communications Semiconductors        
      196,002    
    > Telecommunications Equipment 1.2%  
  1,045,000     F5 Networks (a)     55,364    
        Internet Traffic Management Equipment        
  1,534,000     Blue Coat Systems (a)     43,780    
        WAN Acceleration & Network Security        
  1,580,000     Polycom (a)     39,453    
        Video Conferencing Equipment        
  1,165,000     CommScope (a)     30,908    
        Wireless Infrastructure Equipment &
Telecom Cable		        
      169,505    
    > Gaming Equipment & Services 1.1%  
  4,025,000     Bally Technologies (a)(b)     166,192    
        Slot Machines & Software        
      166,192    
    > Computer Services 1.0%  
  5,000,000     iGate (b)     50,000    
        IT & Business Process Outsourcing Services        
  1,905,000     SRA International (a)     36,386    
        Government IT Services        
  1,800,000     Virtusa (a)(b)     16,308    
        Offshore IT Outsourcing        

 

Number of Shares     Value (000)  
  747,658     ExlService Holdings (a)   $ 13,577    
        Business Process Outsourcing        
  4,500,000     Hackett Group (a)(b)     12,510    
        IT Integration & Best Practice Research        
  736,499     WNS - ADR (India) (a)     11,084    
        Offshore BPO (Business Process
Outsourcing) Services		        
  165,000     ManTech International (a)     7,966    
        Government IT Services        
      147,831    
    > Internet Related 0.7%  
  2,500,000     Switch & Data Facilities (a)(b)     50,525    
        Network Neutral Data Centers        
  188,000     NHN (South Korea) (a)     31,044    
        South Korea's Largest Online Search Engine        
  800,000     Akamai (a)     20,264    
        Content Delivery Network (CDN) for
Better Delivery of Online Content		        
  1,000,000     TheStreet.com     2,400    
        Financial Information Websites        
      104,233    
    > Electronics Distribution 0.6%  
  3,125,000     Avnet (a)     94,250    
        Electronic Components Distribution        
      94,250    
    > Business Information &
Marketing Services 0.5%		  
  2,500,000     Navigant Consulting (a)(b)     37,150    
        Financial Consulting Firm        
  650,000     FTI Consulting (a)     30,654    
        Financial Consulting Firm        
  1,240,000     InfoGROUP (a)     9,945    
        Business Data for Sales Leads        
      77,749    
    > Contract Manufacturing 0.5%  
  1,395,000     Plexus (a)     39,757    
        Electronic Manufacturing Services        
  3,050,000     Sanmina-SCI (a)     33,642    
        Electronic Manufacturing Services        
      73,399    
    > Advertising 0.2%  
  2,700,000     VisionChina Media - ADR (China) (a)     29,484    
        Advertising on Digital Screens in China's
Mass Transit System		        
      29,484    
    > Satellite Broadcasting &
Services 0.2%		  
  702,000     SES (France)     15,741    
        Fixed Satellite Services        
  400,000     Eutelsat (France)     12,834    
        Fixed Satellite Services        
      28,575    
    > Consumer Software 0.1%  
  3,200,000     THQ (a)     16,128    
        Entertainment Software        
      16,128    

 

See accompanying notes to financial statements.


23


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Radio 0.1%  
  1,541,000     Salem Communications (a)(b)   $ 9,230    
        Radio Stations for Religious Programming        
  164,991     Saga Communications (a)     2,071    
        Radio Stations in Small & Mid-sized Cities        
  2,400,000     Spanish Broadcasting System (a)(b)     1,872    
        Spanish Language Radio Stations        
      13,173    
    > TV Broadcasting 0.1%  
  2,500,000     Entravision Communications (a)     8,500    
        Spanish Language TV & Radio Stations        
  1,750,000     Gray Television (a)     2,642    
        Mid-market Affiliated TV Stations        
      11,142    
Information: Total     3,804,534    
Consumer Goods & Services 18.2%      
    > Retail 6.0%  
  4,500,000     Abercrombie & Fitch (b)     156,825    
        Teen Apparel Retailer        
  4,020,000     Urban Outfitters (a)     140,660    
        Apparel & Home Specialty Retailer        
  4,200,000     lululemon athletica (a)(b)     126,420    
        Premium Active Apparel Retailer        
  8,514,272     Chico's FAS (a)     119,626    
        Women's Specialty Retailer        
  2,564,000     J Crew Group (a)     114,713    
        Multi-channel Branded Retailer        
  7,500,000     Charming Shoppes (a)(b)     48,525    
        Women's Specialty Plus Size
Apparel Retailer		        
  3,500,000     AnnTaylor Stores (a)(b)     47,740    
        Women's Apparel Retailer        
  6,100,000     Saks (a)(c)     40,016    
        Luxury Department Store Retailer        
  900,000     Gymboree (a)     39,141    
        Children's Apparel Specialty Retailer        
  4,250,000     Talbots (a)(b)(c)     37,867    
        Women's Specialty Retailer        
  1,371,366     Gaiam (a)(b)     10,546    
        Healthy Living Catalogs & E-Commerce        
  146,390     Rue21 (a)     4,112    
        Fashion Value Apparel Retailer        
      886,191    
    > Travel 2.9%  
  4,700,000     Expedia (a)     120,837    
        Online Travel Services Company        
  1,950,000     Vail Resorts (a)(b)     73,710    
        Ski Resort Operator & Developer        
  3,700,000     Gaylord Entertainment (a)(b)(c)     73,075    
        Convention Hotels        
  4,700,000     Avis Budget Group (a)     61,664    
        Second Largest Car Rental Company        
  1,300,000     Choice Hotels     41,158    
        Franchisor of Budget Hotel Brands        
  3,000,000     Hertz (a)     35,760    
        Largest U.S. Rental Car Operator        

 

Number of Shares     Value (000)  
  110,000     Pierre & Vacances (France)   $ 8,478    
        Vacation Apartment Lets        
  141,800     Hyatt Hotels (a)     4,227    
        Hotel Owner Operator        
      418,909    
    > Educational Services 2.5%  
  1,350,000     ITT Educational Services (a)     129,546    
        Post-secondary Degree Services        
  9,500,000     SkillSoft - ADR (a)(b)     99,560    
        Web-based Learning Solutions (E-Learning)        
  550,000     New Oriental Education &
Technology - ADR (China) (a)(c)		     41,585    
        China's Largest Private Education
Service Provider		        
  1,677,000     Career Education (a)     39,091    
        Post-secondary Education        
  1,750,301     Universal Technical Institute (a)(b)     35,356    
        Vocational Training        
  3,000,000     Princeton Review (a)(b)     12,180    
        College Preparation Courses        
  1,268,258     Cambium Learning Group (a)     4,972    
        Education Services for the K-12 Market        
  2,000,000     Voyager Learning, Contingent
Value Rights (d)		     336    
        Education Services for the K-12 Market        
      362,626    
    > Apparel 1.7%  
  5,930,000     Coach     216,623    
        Designer & Retailer of Branded
Leather Accessories		        
  1,500,000     True Religion Apparel (a)(b)     27,735    
        Premium Denim        
      244,358    
    > Nondurables 1.5%  
  1,010,000     Chattem (a)(b)     94,233    
        Personal Care Products        
  1,700,000     Jarden     52,547    
        Branded Household Products        
  1,700,000     Helen of Troy (a)(b)     41,582    
        Hair Dryers & Curling Irons        
  550,000     Energizer Holdings (a)     33,704    
        Household & Personal Care Products        
      222,066    
    > Food & Beverage 0.9%  
  1,802,600     Hansen Natural (a)     69,220    
        Alternative Beverages        
  550,475     Diamond Foods     19,564    
        Culinary Ingredients & Snack Foods        
  819,000     Flowers Foods     19,459    
        Bread & Baked Goods        
  3,000,000     Smart Balance (a)     18,000    
        Healthy Food Products        
  1,153,700     GLG Life Tech (Canada) (a)     8,826    
        Produce an All-natural Sweetener
Extracted from the Stevia Plant		        
      135,069    

 

See accompanying notes to financial statements.


24


Number of Shares     Value (000)  
    > Furniture & Textiles 0.8%  
  2,800,000     Herman Miller (b)   $ 44,744    
        Office Furniture        
  4,000,000     Knoll (b)     41,320    
        Office Furniture        
  3,000,000     Steelcase     19,080    
        Office Furniture        
  1,000,000     Interface     8,310    
        Modular & Broadloom Carpet        
      113,454    
    > Other Consumer Services 0.5%  
  2,150,000     Lifetime Fitness (a)(b)(c)     53,599    
        Sport & Fitness Club Operator        
  10,976,800     Lifestyle International (Hong Kong)     20,360    
        Mid to High-end Department Store
Operator in Hong Kong & China		        
      73,959    
    > Casinos & Gaming 0.4%  
  4,050,000     Pinnacle Entertainment (a)(b)     36,369    
        Regional Casino Operator        
  875,000     Penn National Gaming (a)     23,782    
        Regional Casino Operator        
      60,151    
    > Consumer Goods Distribution 0.3%  
  2,100,000     Pool     40,068    
        Distributor of Swimming Pool
Supplies & Equipment		        
  264,010     Central European Distribution
(Poland) (a)		     7,501    
        Vodka Production & Spirits Distribution        
      47,569    
    > Leisure Products 0.3%  
  1,390,000     Thor Industries     43,646    
        RV & Bus Manufacturer        
      43,646    
    > Restaurants 0.3%  
  650,000     P.F. Chang's China Bistro (a)(c)     24,642    
        Mandarin Style Restaurants        
  2,000,000     AFC Enterprises (a)(b)     16,320    
        Popeye's Restaurants        
      40,962    
    > Other Entertainment 0.1%  
  435,000     CTS Eventim (Germany)     21,237    
        Event Ticket Sales        
      21,237    
    > Other Durable Goods —%  
  180,000     Cavco Industries (a)     6,466    
        Manufactured Homes        
      6,466    
Consumer Goods & Services: Total     2,676,663    
Industrial Goods & Services 18.1%      
    > Machinery 7.6%  
  4,200,000     Donaldson (b)     178,668    
        Industrial Air Filtration        

 

Number of Shares     Value (000)  
  4,500,000     Ametek   $ 172,080    
        Aerospace/Industrial Instruments        
  2,700,000     Oshkosh     99,981    
        Specialty Truck Manufacturer        
  2,627,500     Clarcor (b)     85,236    
        Mobile & Industrial Filters        
  2,200,000     ESCO Technologies (b)     78,870    
        Automatic Electric Meter Readers        
  2,150,000     Pall     77,830    
        Filtration & Fluids Clarification        
  2,300,000     Pentair     74,290    
        Pumps & Water Treatment        
  1,100,000     Nordson     67,298    
        Dispensing Systems for Adhesives & Coatings        
  1,975,000     Mine Safety Appliances (b)     52,396    
        Safety Equipment        
  1,660,000     MOOG (a)     48,522    
        Motion Control Products for Aerospace,
Defense & Industrial Markets		        
  1,300,000     Kaydon     46,488    
        Specialized Friction & Motion Control Products        
  1,225,000     HEICO (b)     44,051    
        FAA Approved Aircraft Replacement Parts        
  900,000     Toro     37,629    
        Turf Maintenance Equipment        
  600,000     Wabtec     24,504    
        Freight & Transit Component Supplier        
  1,000,000     Jain Irrigation Systems (India)     18,790    
        Agricultural Micro-irrigation Systems &
Food Processing		        
  114,000     Neopost (France)     9,419    
        Postage Meter Machines        
      1,116,052    
    > Industrial Materials & Specialty
Chemicals 2.9%		  
  2,000,000     Sociedad Quimica y Minera
de Chile - ADR (Chile)		     75,140    
        Producer of Specialty Fertilizers,
Lithium & Iodine		        
  2,200,000     Nalco Holding Company     56,122    
        Provider of Water Treatment & Process
Chemicals & Services		        
  1,530,000     Albemarle     55,646    
        Refinery Catalysts & Other Specialty Chemicals        
  363,000     Novozymes (Denmark)     37,639    
        Industrial Enzymes        
  1,600,000     Drew Industries (a)(b)     33,040    
        RV & Manufactured Home Components        
  500,000     Greif     26,990    
        Industrial Packaging        
  741,176     Carbone Lorraine (France)     26,720    
        Advanced Industrial Materials        
  15,000     Sika (Switzerland)     23,335    
        Chemicals for Construction &
Industrial Applications		        
  1,000,000     Albany International     22,460    
        Paper Machine Clothing & Advanced Textiles        
  2,000,000     Kansai Paint (Japan)     16,607    
        Paint Producer in Japan, India, China &
Southeast Asia		        

 

See accompanying notes to financial statements.


25


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Industrial Materials & Specialty
Chemicals—continued		  
  600,000     Crown Holdings (a)   $ 15,348    
        Metal Can Packaging        
  450,000     Celanese     14,445    
        Commodity & Specialty Chemicals Provider        
  200,000     Silgan Holdings     11,576    
        Metal & Plastic Packaging        
  350,000     Koppers Holdings     10,654    
        Integrated Provider of Carbon Compounds        
      425,722    
    > Industrial Distribution 2.0%  
  2,555,200     Airgas     121,628    
        Industrial Gas Distributor        
  1,000,000     WW Grainger     96,830    
        Industrial Distribution        
  2,600,000     Interline Brands (a)(b)     44,902    
        Industrial Distribution        
  625,000     Watsco     30,612    
        HVAC Distribution        
      293,972    
    > Other Industrial Services 1.8%  
  3,300,000     Expeditors International of Washington     114,609    
        International Freight Forwarder        
  1,500,000     Imtech (Netherlands)     40,253    
        Electromechanical & ICT
Installation & Maintenance		        
  1,300,000     Forward Air     32,565    
        Freight Transportation Between Airports        
  2,000,000     UTI Worldwide     28,640    
        Freight Forwarding & Logistics        
  1,750,000     Mobile Mini (a)     24,658    
        Portable Storage Units Leasing        
  924,900     TrueBlue (a)     13,698    
        Temporary Manual Labor        
  900,000     American Reprographics (a)     6,309    
        Document Management & Logistics        
      260,732    
    > Outsourcing Services 1.2%  
  35,000,000     Olam International (Singapore)     65,547    
        Agriculture Supply Chain Manager        
  2,070,000     Quanta Services (a)     43,139    
        Electrical & Telecom Construction Services        
  1,428,224     Administaff (b)     33,692    
        Professional Employer Organization        
  3,000,000     Serco (United Kingdom)     25,505    
        Facilities Management        
  600,000     GP Strategies (a)     4,518    
        Training Programs        
      172,401    
    > Construction 1.0%  
  700,000     Martin Marietta Materials     62,587    
        Aggregates        
  60,000     NVR (a)     42,642    
        D.C. Homebuilder        
  850,000     Simpson Manufacturing     22,856    
        Wall Joint Maker        

 

Number of Shares     Value (000)  
  687,500     Ritchie Brothers Auctioneers (c)   $ 15,421    
        Heavy Equipment Auctioneer        
  384,000     M/I Homes (a)     3,990    
        Columbus-based Home Builder        
      147,496    
    > Waste Management 0.6%  
  1,858,500     Republic Services     52,614    
        Solid Waste Management        
  1,200,000     Waste Connections (a)     40,008    
        Solid Waste Management        
      92,622    
    > Electrical Components 0.4%  
  1,300,000     Acuity Brands     46,332    
        Commercial Lighting Fixtures        
  1,000,000     Ushio (Japan)     16,648    
        Industrial Light Sources        
      62,980    
    > Conglomerates 0.3%  
  2,200,000     Aalberts Industries (Netherlands)     31,431    
        Flow Control & Heat Treatment        
  600,000     Ibiden (Japan)     21,368    
        Electronic Parts & Ceramics        
      52,799    
    > Steel 0.2%  
  1,680,000     GrafTech International (a)     26,124    
        Industrial Graphite Materials Producer        
      26,124    
    > Water 0.1%  
  1,750,000     Mueller Water Products     9,100    
        Fire Hydrants, Valves & Ductile Iron Pipes        
      9,100    
Industrial Goods & Services: Total     2,660,000    
Finance 11.8%      
    > Banks 3.7%  
  2,689,000     BOK Financial     127,781    
        Tulsa-based Southwest Bank        
  5,718,205     Valley National Bancorp (c)     80,798    
        New Jersey/New York Bank        
  4,150,000     TCF Financial     56,523    
        Great Lakes Bank        
  1,172,396     SVB Financial Group (a)     48,877    
        Bank to Venture Capitalists        
  2,305,600     MB Financial     45,467    
        Chicago Bank        
  3,737,900     Associated Banc-Corp (c)     41,154    
        Midwest Bank        
  640,000     Cullen/Frost Bankers     32,000    
        Texas Bank        
  2,440,000     Wilmington Trust     30,110    
        Delaware Trust Bank        
  1,200,000     TriCo Bancshares (b)     19,980    
        California Central Valley Bank        
  660,000     Hudson Valley     16,276    
        Metro New York City Bank        

 

See accompanying notes to financial statements.


26


Number of Shares     Value (000)  
    > Banks—continued  
  295,000     City National   $ 13,452    
        Bank & Asset Manager        
  830,700     CVB Financial (c)     7,177    
        Inland Empire Business Bank        
  1,170,000     First Busey     4,551    
        Illinois Bank        
  500,000     Sandy Spring Bancorp (c)     4,445    
        Baltimore, D.C. Bank        
  246,505     Pacific Continental     2,820    
        Pacific N.W. Bank        
  251,000     Eagle Bancorp (a)     2,628    
        Metro D.C. Bank        
  583,872     Green Bankshares (c)     2,073    
        Tennessee Bank        
  491,788     West Coast Bancorp     1,033    
        Portland Community Bank        
      537,145    
    > Insurance 2.9%  
  2,427,400     Leucadia National (a)     57,748    
        Insurance Holding Company        
  1,890,000     HCC Insurance Holdings     52,863    
        Specialty Insurance        
  9,420,000     Conseco (a)     47,100    
        Life, Long-term Care & Medical
Supplement Insurance		        
  849,000     Hanover Insurance Group     37,721    
        Personal & Commercial Lines Insurance        
  1,200,000     Assurant     35,376    
        Specialty Insurance        
  100,000     Markel (a)     34,000    
        Specialty Insurance        
  1,450,000     Delphi Financial Group     32,437    
        Workers Compensation & Group Employee
Benefit Products & Services		        
  575,000     Navigators Group (a)     27,088    
        Specialty Insurance        
  1,000,000     Aspen Insurance     25,450    
        Commercial Lines Insurance/Reinsurance        
  1,420,000     Selective Insurance Group     23,359    
        Commercial & Personal Lines Insurance        
  832,000     Willis Group (Ireland)     21,948    
        Insurance Broker        
  900,000     Tower Group     21,069    
        Commercial & Personal Lines Insurance        
  640,716     Protective Life     10,604    
        Life Insurance        
      426,763    
    > Finance Companies 2.5%  
  7,235,000     AmeriCredit (a)(b)     137,754    
        Auto Lending        
  1,545,000     World Acceptance (a)(b)     55,357    
        Personal Loans        
  2,350,000     McGrath Rentcorp (b)     52,546    
        Temporary Space & IT Rentals        
  1,730,000     GATX     49,737    
        Rail Car Lessor        
  3,300,000     H&E Equipment Services (a)(b)     34,617    
        Heavy Equipment Leasing        

 

Number of Shares     Value (000)  
  655,000     Aaron's (c)   $ 18,163    
        Rent to Own        
  1,650,000     CAI International (a)(b)     14,900    
        International Container Leasing        
  1,091,000     Marlin Business Services (a)(b)     8,652    
        Small Equipment Leasing        
      371,726    
    > Brokerage & Money
Management 1.6%		  
  3,735,000     Eaton Vance     113,581    
        Specialty Mutual Funds        
  6,448,000     SEI Investments     112,969    
        Mutual Fund Administration &
Investment Management		        
  700,000     Investment Technology Group (a)     13,790    
        Electronic Trading        
      240,340    
    > Savings & Loans 1.1%  
  6,480,000     People's United     108,216    
        Connecticut Savings & Loan        
  450,000     Housing Development Finance
(India)		     25,935    
        Indian Mortgage Lender        
  731,478     ViewPoint Financial     10,541    
        Texas Thrift        
  1,010,000     Provident New York Bancorp     8,524    
        New York State Thrift        
  234,693     Berkshire Hills Bancorp     4,854    
        Northeast Thrift        
      158,070    
Finance: Total     1,734,044    
Health Care 9.6%      
    > Medical Equipment &
Devices 3.1%		  
  3,000,000     Alexion Pharmaceuticals (a)     146,460    
        Biotech Focused on Orphan Diseases        
  1,700,000     Illumina (a)(c)     52,105    
        Leading Tools & Service Provider for
Genetic Analysis		        
  2,400,000     American Medical Systems (a)     46,296    
        Medical Devices to Treat
Urological Conditions		        
  500,000     Edwards Lifesciences (a)     43,425    
        Heart Valves        
  700,000     Haemonetics (a)     38,605    
        Blood & Plasma Collection Equipment        
  1,000,000     Orthofix International (a)(b)     30,970    
        Bone Fixation & Stimulation Devices        
  450,000     Beckman Coulter     29,448    
        In-vitro Clinical Diagnostics        
  850,000     Sirona Dental Systems (a)     26,979    
        Manufacturer of Dental Equipment        
  568,910     Gen-Probe (a)     24,406    
        Molecular In-vitro Diagnostics        
  400,000     Kinetic Concepts (a)     15,060    
        Wound Healing & Tissue Repair Products        

 

See accompanying notes to financial statements.


27


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Medical Equipment &
Devices—continued		  
  1,232,900     Nanosphere (a)   $ 7,940    
        Molecular Diagnostics Company with
Best of Breed Platform		        
      461,694    
    > Biotechnology & Drug Delivery 3.0%  
  2,500,000     Human Genome Sciences (a)     76,500    
        Biotech Focused on HCV,
Inflammation & Cancer		        
  3,250,000     BioMarin (a)     61,132    
        Biotech Focused on Orphan Diseases        
  4,117,700     Seattle Genetics (a)     41,836    
        Antibody-based Therapies for Cancer        
  1,350,000     Auxilium Pharmaceuticals (a)     40,473    
        Biotech Focused on Niche Disease Areas        
  760,000     United Therapeutics (a)     40,014    
        Biotech Focused on Rare Diseases        
  1,300,000     Acorda Therapeutics (a)     32,786    
        Biopharma Company Focused on
Nervous Disorder Drugs		        
  1,200,000     Myriad Genetics (a)     31,320    
        Genetic Diagnostics        
  3,052,000     Nektar Therapeutics (a)     28,445    
        Drug Delivery Technologies        
  600,000     AMAG Pharmaceuticals (a)     22,818    
        Biotech Focused on Niche Diseases        
  2,800,000     Allos Therapeutics (a)(c)     18,396    
        Cancer Drug Development        
  475,000     Onyx Pharmaceuticals (a)     13,937    
        Commercial-stage Biotech Focused on Cancer        
  885,000     InterMune (a)     11,540    
        Drugs for Pulmonary Fibrosis & Hepatitis C        
  1,400,000     Micromet (a)(c)     9,324    
        Next-generation Antibody Technology        
  2,700,000     NPS Pharmaceuticals (a)(b)     9,180    
        Orphan Drugs & Healthy Royalties        
  359,944     MicroDose Technologies (a)(d)     162    
        Drug Inhaler Development        
  187,500     Locus Pharmaceuticals,
Series A-1, Pfd. (a)(d)		     9    
  96,644     Locus Pharmaceuticals,
Series B-1, Pfd. (a)(d)		     5    
        High Throughput Rational Drug Design        
      437,877    
    > Medical Supplies 1.7%  
  800,000     Henry Schein (a)     42,080    
        Largest Distributor of Healthcare Products        
  1,675,000     QIAGEN (Netherlands) (a)(c)     37,386    
        Life Science Tools & Molecular Diagnostics        
  665,000     Idexx Laboratories (a)(c)     35,538    
        Diagnostic Equipment & Services
for Veterinarians		        
  486,000     Techne     33,320    
        Cytokines, Antibodies & Other Reagents for
Life Science		        

 

Number of Shares     Value (000)  
  2,500,000     Cepheid (a)   $ 31,200    
        Molecular Diagnostics        
  850,000     ICU Medical (a)(b)     30,974    
        Intravenous Therapy Products        
  1,400,000     Immucor (a)     28,336    
        Automated Blood Typing Reagents        
  150,000     Owens & Minor     6,440    
        Distribution of Medical Supplies        
      245,274    
    > Health Care Services 1.6%  
  2,750,000     PSS World Medical (a)     62,067    
        Distributor of Medical Supplies        
  700,000     Mednax (a)     42,077    
        Physician Management for Pediatric &
Anesthesia Practices		        
  1,300,000     Psychiatric Solutions (a)     27,482    
        Behavioral Health Services        
  4,250,000     eResearch Technology (a)(b)     25,543    
        Clinical Research Services        
  700,000     Charles River Laboratories (a)     23,583    
        Pharmaceutical Research        
  850,000     Healthcare Services Group     18,241    
        Outsourced Services to Long-term
Care Industry		        
  700,000     Allscripts-Misys Healthcare (a)     14,161    
        Clinical IT Solutions for Physician Offices        
  800,000     Emdeon (a)     12,200    
        Revenue & Payment Cycle Management        
  250,000     AthenaHealth (a)     11,310    
        Revenue Cycle Management for
Physician Offices		        
      236,664    
    > Pharmaceuticals 0.2%  
  475,000     Cephalon (a)     29,645    
        Specialty Pharmaceuticals for Pain,
Central Nervous System & Oncology		        
  2,450,000     United Drug (Ireland)     7,475    
        Irish Pharmaceutical
Wholesaler & Outsourcer		        
      37,120    
Health Care: Total     1,418,629    
Energy & Minerals 9.3%      
    > Oil Services 4.3%  
  3,100,000     FMC Technologies (a)     179,304    
        Oil & Gas Wellhead Manufacturer        
  2,809,568     Fugro (Netherlands)     160,446    
        Sub-sea Oilfield Services        
  3,200,000     Atwood Oceanics (a)     114,720    
        Offshore Drilling Contractor        
  1,000,000     Oceaneering International (a)     58,520    
        Provider of Sub-sea Services &
Manufactured Products		        
  1,670,000     ShawCor (Canada)     46,866    
        Oil & Gas Pipeline Products        
  3,677,900     Trinidad Drilling (Canada)     24,863    
        Operator of Deep Land Drilling Rigs &
Service Rigs Throughout North America		        

 

See accompanying notes to financial statements.


28


Number of Shares     Value (000)  
    > Oil Services—continued  
  1,750,000     Tesco (a)   $ 22,592    
        Developing New Well Drilling Technologies        
  375,000     Bristow (a)     14,419    
        Largest Provider of Helicopter Services to
Offshore Oil & Gas Producers		        
  600,000     Tetra Technologies (a)     6,648    
        U.S.-based Services Company with Life of
Field Approach		        
  2,983,500     Horizon North Logistics (Canada) (a)     4,707    
        Provides Diversified Oil Service Offering in
Northern Canada		        
      633,085    
    > Oil & Gas Producers 3.6%  
  3,200,000     Southwestern Energy (a)     154,240    
        Oil & Gas Producer        
  4,910,550     Pacific Rubiales Energy (Canada) (a)     72,542    
        Oil Production & Exploration in Colombia        
  1,100,000     Range Resources     54,835    
        Oil & Gas Producer        
  2,400,000     Tullow Oil (United Kingdom)     50,049    
        Oil & Gas Producer        
  975,000     Ultra Petroleum (a)     48,614    
        Oil & Gas Producer        
  2,700,000     Denbury Resources (a)     39,960    
        Oil Producer Using Co2 Injection        
  994,900     Carrizo Oil & Gas (a)     26,355    
        Oil & Gas Producer        
  4,000,000     Gran Tierra Energy (Canada) (a)     22,948    
        Oil Exploration & Production in Colombia,
Peru & Argentina		        
  24,000,000     Cap-Link Ventures (a)(d)     10,097    
  24,000,000     Cap-Link Ventures-Warrants (a)(d)     6,425    
        Oil & Gas Exploration & Production in
Colombia, Peru & Paraguay		        
  250,000     Cabot Oil & Gas     10,898    
        Large Natural Gas Producer in Appalachia &
Gulf Coast		        
  347,600     Baytex (Canada)     9,871    
        Oil & Gas Producer in Canada        
  1,198,100     Pan Orient (Canada) (a)     8,706    
        Growth Oriented & Return Focused
Asian Explorer		        
  1,200,000     Houston American Energy     7,392    
        Oil & Gas Exploration/Production in Colombia        
  1,500,000     Vaalco Energy     6,825    
        Oil & Gas Producer        
  8,435,000     Alange Energy (Colombia) (a)     5,081    
        Oil & Gas Exploration/Production in Colombia        
  264,000     Petrolifera Petroleum (a)     245    
        Oil & Gas Exploration & Production in
South America		        
      535,083    
    > Mining 1.1%  
  2,520,000     Silver Wheaton (Canada) (a)     37,850    
        Silver Mining Royalty Company        
  290,000     Core Laboratories (Netherlands)     34,255    
        Oil & Gas Reservoir Consulting        
  500,000     Royal Gold     23,550    
        Precious Metals Mining Royalty Company        

 

Number of Shares     Value (000)  
  7,725,000     Uranium One (South Africa) (a)   $ 22,307    
        Uranium Mines in Kazakhstan, the
U.S. & Australia		        
  1,000,000     Ivanhoe Mines (Canada) (a)     14,830    
        Copper Mine Project in Mongolia        
  6,333,700     Zhaojin Mining Industry (China)     12,493    
        Gold Mining & Refining in China        
  10,000,000     Orko Silver (Canada) (a)(b)     11,474    
        Silver Exploration & Development        
  1,500,000     PolyMet Mining (a)(c)     4,590    
        Copper & Nickel Miner        
      161,349    
    > Independent Power 0.1%  
  340,000     Wisconsin Energy     16,942    
        Wisconsin Utility        
      16,942    
    > Oil Refining, Marketing &
Distribution 0.1%		  
  175,000     Vopak (Netherlands)     13,826    
        World's Largest Operator of Petroleum &
Chemical Storage Terminals		        
      13,826    
    > Alternative Energy 0.1%  
  400,000     STR Holdings (a)     6,284    
        Makes Encapsulant for Solar Power
Modules/Provides Quality Assurance		        
  1,800,000     Synthesis Energy Systems (China) (a)     1,670    
        Owner/Operator of Gasification Plants        
      7,954    
Energy & Minerals: Total     1,368,239    
Other Industries 4.4%      
    > Real Estate 2.6%  
  675,000     Federal Realty Investment Trust     45,711    
        Shopping Centers        
  850,000     Digital Realty Trust     42,738    
        Technology-focused Office Buildings        
  2,260,902     BioMed Realty Trust     35,677    
        Life Science-focused Office Buildings        
  22,000,000     Ascendas REIT (Singapore)     34,453    
        Singapore Industrial Property Landlord        
  900,000     Corporate Office Properties     32,967    
        Office Buildings        
  880,376     Macerich (c)     31,649    
        Regional Shopping Malls        
  900,000     American Campus Communities     25,290    
        Student Housing        
  40,000,000     Mapletree Logistics Trust (Singapore)     22,290    
        Asian Logistics Landlord        
  440,000     SL Green Realty     22,106    
        Manhattan Office Buildings        
  700,000     Washington REIT     19,285    
        Washington D.C. Diversified Properties        
  3,750,000     DCT Industrial Trust     18,825    
        Industrial Properties        
  1,400,000     Extra Space Storage     16,170    
        Self Storage Facilities        

 

See accompanying notes to financial statements.


29


Columbia Acorn Fund

Statement of Investments, continued

Number of Shares     Value (000)  
    > Real Estate—continued  
  2,800     Orix JREIT (Japan)   $ 13,916    
        Diversified REIT        
  1,105,289     Forest City Enterprises, Class B (a)     13,131    
        Commercial & Residential
Property Developer		        
  2,300,000     Kite Realty Group     9,361    
        Community Shopping Centers        
  37,407     Security Capital European Realty
(Luxembourg) (a)(d)(e)		     —    
        Self Storage Properties        
      383,569    
    > Transportation 1.1%  
  2,110,000     JB Hunt Transport Services     68,090    
        Truck & Intermodal Carrier        
  2,480,000     Heartland Express     37,869    
        Regional Trucker        
  2,500,000     Rush Enterprises, Class A (a)(b)     29,725    
  500,000     Rush Enterprises, Class B (a)(b)     5,250    
        Truck Sales & Services        
  500,000     World Fuel Services     13,395    
        Global Fuel Broker        
  602,000     American Commercial Lines (a)     11,035    
        Operator of Inland Barges/Builder of
Barges & Vessels		        
  150,000     Old Dominion Freight Lines (a)     4,605    
        LTL Trucker        
      169,969    
    > Regulated Utilities 0.7%  
  2,200,000     Northeast Utilities     56,738    
        Regulated Electric Utility        
  500,000     Red Electrica de Espana (Spain)     27,711    
        Spanish Power Transmission        
  3,500,000     Terna (Italy)     15,060    
        Italian Power Transmission        
      99,509    
Other Industries: Total     653,047    
Total Equities: 97.2%
(Cost: $10,369,467)		     14,315,156    
Securities Lending Collateral: 1.3%      
  183,433,582     Dreyfus Government Cash
Management Fund (f)
(7 day yield of 0.000%)		     183,434    
Total Securities Lending Collateral:
(Cost: $183,434)		     183,434    

 

Principal Amount (000)     Value (000)  
Short-Term Obligations: 3.1%  
    > Repurchase Agreement 2.8%  
$ 413,094     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by
U.S. Government Agency
obligations with various
maturities to 9/17/10,
market value $421,361
(repurchase proceeds $413,094)		   $ 413,094    
      413,094    
    > Commercial Paper 0.3%  
  50,000     Toyota Motor Credit
0.16% due 1/04/10		     49,999    
      49,999    
Total Short-Term Obligations:
(Amortized Cost: $463,093)		     463,093    
Total Investments: 101.6%
(Cost: $11,015,994)(g)(h)		     14,961,683    
Obligation to Return Collateral for
Securities Loaned: (1.3)%		     (183,434 )  
Cash and Other Assets Less Liabilities: (0.3)%     (51,098 )  
Total Net Assets: 100.0%   $ 14,727,151    

 

ADR = American Depositary Receipts

See accompanying notes to financial statements.


30


> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
Abercrombie & Fitch     1,925,000       2,695,000       120,000       4,500,000     $ 156,825     $ 2,124    
Actuate     1,683,760       2,016,240       -       3,700,000       15,836       -    
Administaff     2,025,000       -       596,776       1,428,224       33,692       1,014    
AFC Enterprises     1,800,000       200,000       -       2,000,000       16,320       -    
AmeriCredit     7,235,000       -       -       7,235,000       137,754       -    
AnnTaylor Stores     -       3,500,000       -       3,500,000       47,740       -    
Array Biopharma*     2,910,000       -       2,910,000       -       -       -    
Avis Budget Group*     -       6,000,000       1,300,000       4,700,000       61,664       -    
Bally Technologies     3,750,000       275,000       -       4,025,000       166,192       -    
CAI International     1,500,000       150,000       -       1,650,000       14,900       -    
Carrizo Oil & Gas*     2,525,000       200,000       1,730,100       994,900       26,355       -    
Cepheid*     3,100,000       900,000       1,500,000       2,500,000       31,200       -    
Champion Enterprises*     4,500,000       -       4,500,000       -       -       -    
Charlotte Russe*     -       1,900,000       1,900,000       -       -       -    
Charming Shoppes     -       7,500,000       -       7,500,000       48,525       -    
Chattem     1,010,000       -       -       1,010,000       94,233       -    
Clarcor     3,000,000       -       372,500       2,627,500       85,236       1,103    
Cogent Communications     4,300,000       -       100,000       4,200,000       41,412       -    
Conseco*     9,420,000       -       -       9,420,000       47,100       -    
Donaldson     4,200,000       -       -       4,200,000       178,668       1,932    
Drew Industries     1,324,000       276,000       -       1,600,000       33,040       -    
Entravision Communications*     2,500,000       -       -       2,500,000       8,500       -    
eResearch Technology     3,935,901       314,099       -       4,250,000       25,543       -    
ESCO Technologies     2,200,000       -       -       2,200,000       78,870       -    
FARO Technologies*     1,275,000       -       1,275,000       -       -       -    
Forest City Enterprises, Class B*     1,158,000       -       52,711       1,105,289       13,131       -    
Forward Air*     1,900,000       -       600,000       1,300,000       32,565       413    
Gaiam     1,200,000       171,366       -       1,371,366       10,546       -    
Gaylord Entertainment     3,300,000       400,000       -       3,700,000       73,075       -    
H&E Equipment Services     3,300,000       -       -       3,300,000       34,617       -    
Hackett Group     4,600,000       -       100,000       4,500,000       12,510       -    
HEICO     850,000       375,000       -       1,225,000       44,051       125    
Helen of Troy     1,900,000       -       200,000       1,700,000       41,582       -    
Herman Miller     3,000,000       500,000       700,000       2,800,000       44,744       682    
Hot Topic*     -       3,791,890       3,791,890       -       -       -    
ICU Medical     1,250,000       -       400,000       850,000       30,974       -    
iGate     5,000,000       -       -       5,000,000       50,000       550    
II-VI     2,400,000       -       -       2,400,000       76,320       -    
Informatica     5,500,000       1,500,000       -       7,000,000       181,020       -    
Interline Brands     2,000,000       600,000       -       2,600,000       44,902       -    
IPG Photonics     2,750,000       -       -       2,750,000       46,035       -    
ITT Educational Services*     2,150,000       -       800,000       1,350,000       129,546       -    
IXYS     2,035,000       400,000       535,000       1,900,000       14,098       -    
Kenexa     2,425,000       -       -       2,425,000       31,646       -    
Kite Realty Group*     1,900,000       400,000       -       2,300,000       9,361       1,016    
Knoll     3,300,000       700,000       -       4,000,000       41,320       636    
Lifetime Fitness     1,900,000       250,000       -       2,150,000       53,599       -    
lululemon athletica     -       4,200,000       -       4,200,000       126,420       -    
Luminex*     1,110,000       1,343,000       2,453,000       -       -       -    
Marlin Business Services     1,091,000       -       -       1,091,000       8,652       -    
MB Financial*     2,020,000       285,600       -       2,305,600       45,467       306    
McGrath Rentcorp     1,890,000       460,000       -       2,350,000       52,546       1,872    
Mediacom Communications     4,000,000       344,085       344,085       4,000,000       17,880       -    
Mine Safety Appliances     1,975,000       -       -       1,975,000       52,396       1,896    
Mobile Mini*     1,750,000       -       -       1,750,000       24,658       -    
Navigant Consulting     2,500,000       -       -       2,500,000       37,150       -    
Nektar Therapeutics*     5,325,000       -       2,273,000       3,052,000       28,445       -    
NPS Pharmaceuticals     -       2,700,000       -       2,700,000       9,180       -    

 

See accompanying notes to financial statements.


31


Columbia Acorn Fund

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
Orko Silver     -       10,000,000       -       10,000,000     $ 11,474     $ -    
Orthofix International     600,000       400,000       -       1,000,000       30,970       -    
PAETEC Holding     8,000,000       1,600,000       -       9,600,000       39,840       -    
Pericom Semiconductor     915,000       850,000       -       1,765,000       20,350       -    
Pinnacle Entertainment     4,050,000       -       -       4,050,000       36,369       -    
Pool*     2,600,000       -       500,000       2,100,000       40,068       1,287    
Princeton Review     2,550,000       450,000       -       3,000,000       12,180       -    
Quality Systems*     1,850,000       -       1,050,000       800,000       50,232       1,665    
Radiant Systems*     3,050,000       -       2,050,000       1,000,000       10,400       -    
Rush Enterprises     2,750,000       250,000       -       3,000,000       34,975       -    
Salem Communications     1,541,000       -       -       1,541,000       9,230       -    
Savient Pharmaceuticals*     1,416,941       1,583,059       3,000,000       -       -       -    
SeaBright Insurance Holdings*     1,200,000       -       1,200,000       -       -       -    
Seattle Genetics*     4,400,000       867,700       1,150,000       4,117,700       41,836       -    
SkillSoft - ADR     9,500,000       -       -       9,500,000       99,560       -    
Smart Balance*     5,000,000       500,000       2,500,000       3,000,000       18,000       -    
Spanish Broadcasting System     2,400,000       -       -       2,400,000       1,872       -    
Stewart Information Services*     909,420       -       909,420       -       -       -    
Stratasys*     1,180,000       -       375,000       805,000       13,911       -    
Supertex     1,035,000       -       -       1,035,000       30,843       -    
Switch & Data Facilities     2,500,000       -       -       2,500,000       50,525       -    
Talbots     4,250,000       -       -       4,250,000       37,867       -    
TriCo Bancshares     1,200,000       -       -       1,200,000       19,980       624    
True Religion Apparel     1,150,000       633,000       283,000       1,500,000       27,735       -    
tw telecom     9,500,000       -       -       9,500,000       162,830       -    
Universal Technical Institute     1,500,000       250,301       -       1,750,301       35,356       -    
Vail Resorts     2,390,000       -       440,000       1,950,000       73,710       -    
Viad*     1,032,075       -       1,032,075       -       -       73    
Virtusa     1,000,000       800,000       -       1,800,000       16,308       -    
Voyager Learning*     2,000,000       -       2,000,000       -       -       -    
West Coast Bancorp*     837,000       163,000       508,212       491,788       1,033       28    
World Acceptance     1,545,000       -       -       1,545,000       55,357       -    
Total of Affiliated Transactions     225,449,097       62,694,340       45,551,769       242,591,668     $ 3,750,852     $ 17,346    

 

*  At December 31, 2009, the Fund owned less than five percent of the company's outstanding voting shares.

  The aggregate cost and value of these companies at December 31, 2009, were $3,167,879 and $3,750,852, respectively. Investments in affiliated companies represented 25.5% of the Fund's total net assets at December 31, 2009.

(c)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $175,896.

(d)  Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. These securities are valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. At December 31, 2009, the market value of these securities amounted to $17,034, which represented 0.12% of total net assets.

  Additional information on these securities is as follows:

Security   Acquisition
Dates		   Shares   Cost   Value  
Cap-Link Ventures   11/20/09     24,000,000     $ 4,898     $ 10,097    
Cap-Link Ventures-Warrants   11/20/09     24,000,000       3,117       6,425    
Voyager Learning, Contingent Value Rights   12/24/09     2,000,000       -       336    
MicroDose Technologies   11/24/00     359,944       2,005       162    
Locus Pharmaceuticals, Series A-1, Pfd.   9/05/01     187,500       7,500       9    
Locus Pharmaceuticals, Series B-1, Pfd.   2/08/07     96,644       280       5    
Security Capital European Realty   8/20/98-7/20/99     37,407       205       -    
                $ 18,005     $ 17,034    

 

(e)  Security has no value.

(f)  Investment made with cash collateral received from securities lending activity.

(g)  At December 31, 2009, for federal income tax purposes, the cost of investments was $11,076,313 and net unrealized appreciation was $3,885,370, consisting of gross unrealized appreciation of $5,220,362 and gross unrealized depreciation of $1,334,992.

See accompanying notes to financial statements.


32


> Notes to Statement of Investments (dollar values in thousands)

(h)  On December 31, 2009, the market value of foreign securities represented 11.08% of total net assets. The Fund's foreign portfolio was diversified as follows:

    Value   Percentage
of Net Assets		  
Netherlands   $ 317,597       2.16    
Canada     263,483       1.79    
Singapore     181,238       1.23    
Japan     124,764       0.85    
China     85,232       0.58    
Sweden     76,386       0.52    
United Kingdom     75,554       0.51    
Chile     75,140       0.51    
France     73,192       0.5    
Hong Kong     58,190       0.39    
India     55,809       0.38    
    Value   Percentage
of Net Assets		  
South Korea   $ 53,351       0.36    
Denmark     37,639       0.26    
Ireland     29,423       0.20    
Spain     27,711       0.19    
Israel     24,832       0.17    
Switzerland     23,335       0.16    
Germany     21,237       0.14    
Italy     15,060       0.1    
Poland     7,501       0.05    
Colombia     5,081       0.03    
Luxembourg     -       -    
Total Foreign Portfolio   $ 1,631,755       11.08    

 

The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Information   $ 3,515,526     $ 289,008     $ -     $ 3,804,534    
Consumer Goods & Services     2,626,252       50,075       336       2,676,663    
Industrial Goods & Services     2,326,738       333,262       -       2,660,000    
Finance     1,708,109       25,935       -       1,734,044    
Health Care     1,410,978       7,475       176       1,418,629    
Energy & Minerals     1,114,903       253,336       -       1,368,239    
Other Industries     539,617       113,430       -       653,047    
Total Equities     13,242,123       1,072,521       512       14,315,156    
Total Securities Lending Collateral     183,434       -       -       183,434    
Total Short-Term Obligations     -       463,093       -       463,093    
Total Investments   $ 13,425,557     $ 1,535,614     $ 512     $ 14,961,683    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Consumer Goods & Services   $ -     $ -     $ -     $ -     $ -     $ 336     $ 336    
Health Care     426       -       (4,500 )     4,250       -       -       176    
    $ 426     $ -     $ (4,500 )   $ 4,250     $ -     $ 336     $ 512    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 inputs during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $4,250. This amount is included in net change in unrealized appreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


33


Columbia Acorn International

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Asia  
> Japan  
Icom     213,700       312,000    
Makita     430,000       590,000    
Torishima Pump Manufacturing     339,100       633,800    
> China  
China Communication Services     0       24,952,000    
Shandong Weigao     5,018,500       6,000,000    
Sino Ocean Land     0       15,782,000    
Zhaojin Mining Industry     0       11,764,400    
> India  
Jain Irrigation Systems     1,868,376       2,000,000    
Patel Engineering     878,824       1,271,000    
> Taiwan  
Everlight Electronics     8,704,793       9,297,575    
Simplo Technology     4,020,500       5,693,500    
Yuanta Financial Holdings     45,000,000       55,734,000    
Europe  
> United Kingdom  
Chemring     400,000       580,000    
Cobham     4,950,000       6,800,000    
N Brown Group     3,150,000       3,465,000    
Schroders     1,350,000       1,466,000    
Serco     6,100,000       6,500,000    
Spice Group     0       4,722,884    
> Netherlands  
Smit Internationale     244,969       339,146    
Vopak     474,600       520,100    
> France  
Eutelsat     437,000       583,000    
Hi-Media     730,000       966,229    
Saft     469,574       506,362    
Zodiac Aerospace     411,000       541,000    
> Germany  
Elringklinger     696,311       750,000    
Tognum     790,000       960,000    
Vossloh     200,000       245,000    
Wirecard     0       1,180,000    
> Switzerland  
Bank Sarasin & Cie     126,406       349,882    
> Sweden  
East Capital Explorer     750,000       982,742    
Sweco     3,235,000       3,887,000    
> Italy  
Ansaldo STS     0       1,029,000    
CIR     9,610,356       11,180,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Credito Emiliano     2,639,000       3,069,000    
Terna     0       5,246,000    
> Ireland  
Paddy Power     300,300       448,000    
> Spain  
Red Electrica de Espana     532,000       573,000    
> Greece  
Intralot     3,427,000       3,725,000    
> Portugal  
Redes Energéticas Nacionais     0       3,909,580    
> Iceland  
Marel     22,568,604       29,868,604    
Other Countries  
> Canada  
Baytex     0       432,900    
Pan Orient     517,100       1,480,610    
> United States  
Bristow     300,000       391,000    
> Australia  
Australian Stock Exchange     550,000       700,000    
SAI Global     0       460,092    
Seek     0       731,000    
United Group     965,000       2,068,000    

 

See accompanying notes to financial statements.


34


    Number of Shares  
    09/30/09   12/31/09  
Sales  
Asia  
> Japan  
Aeon Mall     1,146,300       955,500    
Asics     2,143,500       1,905,500    
Benesse     398,900       306,900    
Point     519,570       478,570    
Unicharm PetCare     390,300       336,300    
> China  
China Shipping Development     7,891,000       0    
RexLot Holdings     250,000,000       240,000,000    
> Singapore  
Mapletree Logistics Trust     77,000,000       70,000,000    
> Taiwan  
President Chain Store     11,353,184       0    
> Hong Kong  
Hong Kong Exchanges
and Clearing		     2,700,000       2,500,000    
NagaCorp     73,217,756       29,595,256    
Europe  
> United Kingdom  
Intermediate Capital     864,000       0    
Randgold Resources - ADR     212,000       0    
> Netherlands  
Aalberts Industries     2,005,935       1,750,935    
> France  
Iliad     246,000       0    
SES     944,000       759,000    
> Germany  
Wincor Nixdorf     524,000       335,000    
> Sweden  
Hexagon     3,944,000       3,756,000    
Nobia     4,572,226       3,362,226    
> Ireland  
Aryzta     600,000       330,000    
Other Countries  
> United States  
Illumina     300,000       0    
Latin America  
> Mexico  
Urbi Desarrollos Urbanos     18,000,000       15,000,000    

 

See accompanying notes to financial statements.


35


Columbia Acorn International

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 95.6%    
Asia 38.7%      
    > Japan 15.3%  
  6,550,000     Kansai Paint   $ 54,386    
        Paint Producer in Japan, India, China &
Southeast Asia 		       
  31,500     Jupiter Telecommunications     31,208    
        Largest Cable Service Provider in Japan        
  12,500     Nippon Residential Investment (a)     30,372    
        Residential REIT        
  478,570     Point     26,719    
        Apparel Specialty Retailer        
  4,800     Orix JREIT     23,856    
        Diversified REIT        
  3,283,000     Kamigumi     23,855    
        Port Cargo Handling & Logistics        
  2,027,000     Rohto Pharmaceutical     23,331    
        Health & Beauty Products        
  640,000     Ibiden     22,793    
        Electronic Parts & Ceramics        
  1,016,000     Glory     22,468    
        Currency Handling Systems &
Related Equipment		        
  1,544,000     Aeon Delight     21,854    
        Facility Maintenance & Management        
  11,000     Seven Bank     21,847    
        ATM Processing Services        
  4,300     Osaka Securities Exchange     20,389    
        Osaka Securities Exchange        
  3,860     Nippon Accommodations Fund     20,121    
        Residential REIT        
  590,000     Makita     20,075    
        Power Tools        
  737,000     Kintetsu World Express     19,112    
        Airfreight Logistics        
  955,500     Aeon Mall     18,490    
        Suburban Shopping Mall Developer,
Owner & Operator		        
  1,905,500     Asics     17,060    
        Footwear & Apparel        
  7,500     Wacom     16,235    
        Computer Graphic Illustration Devices        
  3,050     Fukuoka     15,912    
        Diversified REIT in Fukuoka        
  787,200     Daiseki     15,850    
        Waste Disposal & Recycling        
  950,000     Ushio     15,815    
        Industrial Light Sources        
  643,000     Ain Pharmaciez     15,427    
        Dispensing Pharmacy/Drugstore Operator        
  480,000     Olympus     15,423    
        Medical Equipment (Endoscopes) & Cameras        
  193,000     Nakanishi     15,336    
        Dental Tools & Machinery        
  1,750,000     Suruga Bank     15,180    
        Regional Bank        
  587,800     Miura     14,838    
        Industrial Boiler        

 

Number of Shares     Value (000)  
  580,000     Hamamatsu Photonics   $ 14,008    
        Optical Sensors for Medical &
Industrial Applications		        
  633,800     Torishima Pump Manufacturing     13,701    
        Industrial Pump for Power Generation &
Water Supply Systems		        
  306,900     Benesse     12,834    
        Education Service Provider        
  345,000     Tsumura     11,112    
        Traditional Chinese/Japanese Herbal Rx
Drugs (Kampo)		        
  3,100,000     Chuo Mitsui Trust Holdings     10,346    
        Trust Bank        
  336,300     Unicharm PetCare     10,285    
        Pet Food & Pet Toiletries        
  2,470     Kakaku.com     9,590    
        Online Price Comparison Services for Consumers        
  822,000     Zenrin     9,478    
        Map Content Publisher        
  785,000     Tamron     7,928    
        Camera Lens Maker        
  312,000     Icom     6,690    
        Two Way Radio Communication Equipment        
  116,300     Toyo Tanso     5,604    
        Carbon & Graphite Products for Industrial Use        
  2,349     Start Today     4,278    
        Online Apparel Mall        
  208,900     As One     3,642    
        Scientific Supplies Distributor        
      677,448    
    > China 5.8%  
  10,107,000     China Yurun Food     29,827    
        Meat Processor in China        
  382,000     New Oriental Education &
Technology - ADR (b)(c)		     28,883    
        China's Largest Private Education
Service Provider		        
  31,987,000     Jiangsu Expressway     28,457    
        Chinese Toll Road Operator        
  29,166,400     China Green     27,607    
        Chinese Fruit & Vegetable Grower & Processor        
  240,000,000     RexLot Holdings     26,792    
        Lottery Equipment Supplier in China        
  703,800     Mindray - ADR (c)     23,873    
        Medical Device Manufacturer        
  11,764,400     Zhaojin Mining Industry     23,204    
        Gold Mining & Refining in China        
  6,000,000     Shandong Weigao     19,927    
        Vertically Integrated Hospital
Consumable Manufacturer		        
  15,782,000     Sino Ocean Land     14,455    
        Property Developer in China        
  12,316,000     Wasion Group     12,744    
        Electronic Power Meter Total Solution Provider        
  24,952,000     China Communication Services     12,203    
        China's Telecom Infrastructure Service Provider        
  1,000,000     VisionChina Media - ADR (b)     10,920    
        Advertising on Digital Screens in China's
Mass Transit System		        

 

See accompanying notes to financial statements.


36


Number of Shares     Value (000)  
    > China—continued  
  15,300,000     Fu Ji Food & Catering Services (b)(d)   $ 158    
        Food Catering Service Provider in China        
      259,050    
    > Singapore 4.9%  
  35,000,000     Olam International     65,547    
        Agriculture Supply Chain Manager        
  7,000,000     Singapore Exchange     41,263    
        Singapore Equity & Derivatives
Market Operator		        
  70,000,000     Mapletree Logistics Trust     39,008    
        Asian Logistics Landlord        
  30,000,000     CDL Hospitality Trust     36,903    
        Hotel Owner/Operator        
  21,000,000     Ascendas REIT     32,887    
        Singapore Industrial Property Landlord        
      215,608    
    > India 3.8%  
  1,008,727     Asian Paints     38,681    
        India's Largest Paint Company        
  2,000,000     Jain Irrigation Systems     37,580    
        Agricultural Micro-irrigation Systems &
Food Processing		        
  450,000     Housing Development Finance     25,935    
        Indian Mortgage Lender        
  2,135,000     Shriram Transport Finance     22,132    
        Truck Financing in India        
  1,570,000     Mundra Port & Special Economic Zone     18,568    
        Indian West Coast Shipping Port        
  900,000     Educomp Solutions     13,690    
        Multimedia Educational Content        
  1,271,000     Patel Engineering     12,207    
        Civil Engineering & Construction        
      168,793    
    > South Korea 3.3%  
  245,000     NHN (b)     40,456    
        South Korea's Largest Online Search Engine        
  182,000     MegaStudy     37,291    
        Online Education Service Provider        
  909,000     Woongjin Coway     29,970    
        South Korean Household Appliance Rental
Service Provider		        
  376,000     Mirae Asset Securities     20,891    
        South Korean Largest Diversified
Financial Company		        
  298,000     Taewoong     19,069    
        Niche Custom Forging        
      147,677    
    > Taiwan 2.9%  
  55,734,000     Yuanta Financial Holdings     40,621    
        Financial Holding Company in Taiwan        
  9,297,575     Everlight Electronics     34,672    
        LED Packager        
  5,693,500     Simplo Technology     33,564    
        World's Largest Notebook Battery Pack Supplier        
  1,454,200     Formosa International Hotels     18,636    
        Hotel, Food & Beverage Operation &
Hospitality Management Services		        
      127,493    

 

Number of Shares     Value (000)  
    > Hong Kong 2.0%  
  2,500,000     Hong Kong Exchanges and Clearing   $ 44,506    
        Hong Kong Equity & Derivatives
Market Operator		        
  22,154,200     Lifestyle International     41,092    
        Mid to High-end Department Store
Operator in Hong Kong & China		        
  29,595,256     NagaCorp     3,269    
        Casino/Entertainment Complex in Cambodia        
      88,867    
    > Indonesia 0.7%  
  75,000,000     Perusahaan Gas Negara     30,975    
        Gas Distributor & Pipeline Operator        
      30,975    
Asia: Total     1,715,911    
Europe 36.9%      
    > United Kingdom 6.9%  
  6,500,000     Serco     55,261    
        Facilities Management        
  3,300,000     Capita Group     39,804    
        White Collar, Back Office Outsourcing        
  1,890,000     Intertek Group     38,055    
        Testing, Inspection & Certification Services        
  1,466,000     Schroders     31,293    
        United Kingdom Top Tier Asset Manager        
  6,800,000     Cobham     27,410    
        Aerospace Components        
  580,000     Chemring     27,293    
        Defense Manufacturer of
Countermeasures & Energetics		        
  4,600,000     RPS Group     15,996    
        Environmental Consulting & Planning        
  690,000     Tullow Oil     14,389    
        Oil & Gas Producer        
  3,465,000     N Brown Group     13,770    
        Home Shopping Women's Clothes Retailer        
  682,000     Rotork     13,053    
        Valve Actuators for Oil & Water Pipelines        
  1,250,000     Smith & Nephew     12,835    
        Medical Equipment & Supplies        
  1,110,000     Keller Group     11,477    
        Ground Engineering        
  4,722,884     Spice Group     4,611    
        United Kingdom Utility Outsourcing        
      305,247    
    > Netherlands 6.8%  
  1,871,250     Imtech     50,216    
        Electromechanical & ICT
Installation & Maintenance		        
  735,945     Fugro     42,028    
        Sub-sea Oilfield Services        
  520,100     Vopak     41,091    
        World's Largest Operator of Petroleum &
Chemical Storage Terminals		        
  1,372,989     Koninklijke TenCate (a)     36,081    
        Advanced Textiles & Industrial Fabrics        

 

See accompanying notes to financial statements.


37


Columbia Acorn International

Statement of Investments, continued

Number of Shares     Value (000)  
    > Netherlands—continued  
  1,385,000     Unit 4 Agresso (a)(b)   $ 32,644    
        Business Software Development        
  339,146     Smit Internationale     29,195    
        Harbor & Offshore Towage & Marine Services        
  1,750,935     Aalberts Industries     25,015    
        Flow Control & Heat Treatment        
  1,088,187     Arcadis     24,480    
        Engineering Consultants        
  650,000     QIAGEN (b)     14,520    
        Life Science Tools & Molecular Diagnostics        
  62,000     Core Laboratories     7,323    
        Oil & Gas Reservoir Consulting        
      302,593    
    > France 4.4%  
  328,000     Neopost     27,100    
        Postage Meter Machines        
  506,362     Saft     24,392    
        Niche Battery Manufacturer        
  541,000     Zodiac Aerospace     22,577    
        Leading Supplier to the Aerospace Industry        
  271,000     Pierre & Vacances     20,888    
        Vacation Apartment Lets        
  531,176     Carbone Lorraine     19,149    
        Advanced Industrial Materials        
  583,000     Eutelsat     18,705    
        Fixed Satellite Services        
  759,000     SES     17,019    
        Fixed Satellite Services        
  170,000     Rubis     14,911    
        Tank Storage & Liquefied Petroleum
Gas Distribution		        
  259,664     Eurofins Scientific     14,126    
        Food, Pharmaceuticals & Materials
Screening & Testing		        
  160,701     Norbert Dentressangle     8,780    
        Leading European Logistics & Transport Group        
  966,229     Hi-Media (b)     6,768    
        Online Advertiser in Europe        
      194,415    
    > Germany 4.3%  
  700,000     CTS Eventim     34,175    
        Event Ticket Sales        
  245,000     Vossloh     24,408    
        Rail Infrastructure & Diesel Locomotives        
  335,000     Wincor Nixdorf     22,851    
        Retail POS Systems & ATM Machines        
  127,000     Rational     21,514    
        Commercial Oven Manufacturer        
  850,000     Rhoen-Klinikum     20,790    
        Health Care Services        
  750,000     Elringklinger     17,515    
        Automobile Components        
  1,180,000     Wirecard     16,223    
        Online Payment Processing & Risk Management        
  960,000     Tognum     15,927    
        Diesel Engines for Drive & Power
Generation Systems		        

 

Number of Shares     Value (000)  
  354,500     Deutsche Beteiligungs   $ 8,686    
        Private Equity Investment Management        
  700,000     Takkt     7,181    
        Mail Order Retailer of Office &
Warehouse Durables		        
      189,270    
    > Switzerland 2.7%  
  185,000     Geberit     32,770    
        Plumbing Supplies        
  20,500     Sika     31,891    
        Chemicals for Construction &
Industrial Applications		        
  275,000     Kuehne & Nagel     26,602    
        Freight Forwarding/Logistics        
  85,000     Burckhardt Compression     15,212    
        Manufactures & Services Compressors        
  349,882     Bank Sarasin & Cie (b)     13,223    
        Private Banking        
      119,698    
    > Sweden 2.6%  
  3,756,000     Hexagon     55,174    
        Measurement Equipment        
  3,887,000     Sweco     29,084    
        Engineering Consultants        
  3,362,226     Nobia (b)     19,704    
        Kitchen Cabinet Manufacturing & Sales        
  982,742     East Capital Explorer (b)     9,180    
        Sweden-based RUS/CEE Investment Fund        
      113,142    
    > Italy 2.1%  
  11,180,000     CIR (b)     28,868    
        Italian Holding Company        
  3,069,000     Credito Emiliano (b)     23,556    
        Italian Regional Bank        
  5,246,000     Terna     22,572    
        Italian Power Transmission        
  1,029,000     Ansaldo STS     19,525    
        Leading Systems Integrator for the
Railway Industry		        
      94,521    
    > Finland 2.0%  
  1,382,777     Stockmann     37,680    
        Department Store & Fashion Retailer in
Scandinavia & Russia		        
  1,756,000     Poyry     28,127    
        Engineering Consultants        
  2,170,000     Ramirent (b)     21,155    
        Largest Equipment Rental Company in
Scandinavia & Central Eastern Europe		        
      86,962    
    > Ireland 1.2%  
  8,100,000     United Drug     24,715    
        Irish Pharmaceutical Wholesaler & Outsourcer        
  448,000     Paddy Power     15,877    
        Irish Betting Services        
  330,000     Aryzta     12,091    
        Baked Goods        
      52,683    

 

See accompanying notes to financial statements.


38


Number of Shares     Value (000)  
    > Spain 0.9%  
  573,000     Red Electrica de Espana   $ 31,757    
        Spanish Power Transmission        
  1,546,000     ENCE (b)     5,968    
        Europe's Leading Eucalyptus Pulp Maker        
      37,725    
    > Denmark 0.7%  
  306,000     Novozymes     31,729    
        Industrial Enzymes        
      31,729    
    > Poland 0.6%  
  975,900     Central European Distribution (b)     27,725    
        Vodka Production & Spirits Distribution        
      27,725    
    > Czech Republic 0.5%  
  114,000     Komercni Banka     24,302    
        Leading Czech Universal Bank        
      24,302    
    > Greece 0.5%  
  3,725,000     Intralot     21,654    
        Lottery & Gaming Systems & Services        
      21,654    
    > Portugal 0.4%  
  3,909,580     Redes Energéticas Nacionais     16,794    
        Portuguese Power Transmission &
Gas Transportation		        
      16,794    
    > Iceland 0.3%  
  29,868,604     Marel (b)     14,881    
        Largest Manufacturer of Poultry &
Fish Processing Equipment		        
      14,881    
Europe: Total     1,633,341    
Other Countries 14.4%      
    > Canada 4.2%  
  3,927,000     Eldorado Gold (b)     56,022    
        Gold Miner in Turkey, Greece,
China & Brazil		        
  1,710,000     ShawCor     47,988    
        Oil & Gas Pipeline Products        
  1,117,000     CCL Industries     30,172    
        Leading Global Label Manufacturer        
  850,000     Ivanhoe Mines (b)     12,606    
  744,000     Ivanhoe Mines (b)(e)     10,870    
        Copper Mine Project in Mongolia        
  432,900     Baytex     12,293    
        Oil & Gas Producer in Canada        
  1,480,610     Pan Orient (b)     10,759    
        Growth Oriented & Return Focused
Asian Explorer		        
  2,262,100     Horizon North Logistics (b)     3,569    
        Provides Diversified Oil Service Offering in
Northern Canada		        
      184,279    

 

Number of Shares     Value (000)  
    > United States 3.9%  
  1,340,000     Atwood Oceanics (b)   $ 48,039    
        Offshore Drilling Contractor        
  625,000     Alexion Pharmaceuticals (b)     30,513    
        Biotech Focused on Orphan Diseases        
  346,000     Oceaneering International (b)     20,248    
        Provider of Sub-sea Services &
Manufactured Products		        
  660,000     World Fuel Services     17,681    
        Global Fuel Broker        
  391,000     Bristow (b)     15,034    
        Largest Provider of Helicopter Services to
Offshore Oil & Gas Producers		        
  251,000     FMC Technologies (b)     14,518    
        Oil & Gas Wellhead Manufacturer        
  725,000     BioMarin (b)     13,637    
        Biotech Focused on Orphan Diseases        
  430,000     Ritchie Brothers Auctioneers (c)     9,645    
        Heavy Equipment Auctioneer        
  324,000     Tesco (b)     4,183    
        Developing New Well Drilling Technologies        
      173,498    
    > Australia 2.6%  
  2,068,000     United Group     26,333    
        Engineering & Facilities Management        
  700,000     Perpetual Trustees     23,103    
        Mutual Fund Management        
  700,000     Australian Stock Exchange     21,801    
        Australian Equity & Derivatives
Market Operator		        
  2,000,000     Billabong International     19,444    
        Action Sports Apparel Brand Manager        
  262,000     Cochlear     16,178    
        Cochlear Implants for Hearing        
  731,000     Seek     4,492    
        Online Job Listing & Education        
  460,092     SAI Global     1,655    
        Publishing, Certification & Compliance Services        
  555,740     Hastie Group     938    
        Mechanical, Electrical & Hydraulic
(MEH) Engineering		        
      113,944    
    > South Africa 2.5%  
  1,973,000     Naspers     80,067    
        Media in Africa & Other Emerging Markets        
  4,600,000     Mr. Price     21,734    
        South African Retailer of Apparel,
Household & Sporting Goods		        
  3,049,000     Uranium One (b)     8,804    
        Uranium Mines in Kazakhstan, the
U.S. & Australia		        
      110,605    
    > Israel 0.8%  
  2,890,000     Israel Chemicals     37,734    
        Producer of Potash, Phosphates, Bromine &
Specialty Chemicals		        
      37,734    

 

See accompanying notes to financial statements.


39


Columbia Acorn International

Statement of Investments, continued

Number of Shares
or Principal Amount (000)		     Value (000)  
    > Kazakhstan 0.4%  
  1,770,000     Halyk Savings Bank of
Kazakhstan - GDR (b)		   $ 16,798    
        Largest Retail Bank & Insurer
in Kazakhstan		        
      16,798    
Other Countries: Total     636,858    
Latin America 5.6%      
    > Brazil 3.3%  
  5,000,000     Localiza Rent A Car     55,184    
        Car Rental        
  4,300,000     Suzano     50,075    
        Brazilian Pulp & Paper Producer        
  2,000,000     Natura     41,679    
        Direct Retailer of Cosmetics        
      146,938    
    > Mexico 1.6%  
  700,000     Grupo Aeroportuario del
Sureste - ADR		     36,267    
        Mexican Airport Operator        
  15,000,000     Urbi Desarrollos Urbanos (b)     33,825    
        Affordable Housing Builder        
      70,092    
    > Chile 0.7%  
  862,000     Sociedad Quimica y Minera de
Chile - ADR		     32,385    
        Producer of Specialty Fertilizers,
Lithium & Iodine		        
      32,385    
Latin America: Total     249,415    
Total Equities: 95.6%
(Cost: $3,179,286)		     4,235,525    
Securities Lending Collateral: 0.6%      
  26,644,150     Dreyfus Government Cash
Management Fund
(7 day yield of 0.000%) (f)		     26,644    
Total Securities Lending Collateral:
(Cost: $26,644)		     26,644    
Short-Term Obligations: 3.5%      
    > Repurchase Agreement 3.0%  
$ 131,378     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by
a U.S. Treasury obligation,
maturing 3/18/10,
market value $134,007
(repurchase proceeds $131,378)		     131,378    
      131,378    

 

Principal Amount (000)     Value (000)  
    > Commercial Paper 0.5%  
$ 21,900     Toyota Motor Credit
0.16% due 1/04/10		   $ 21,900    
      21,900    
Total Short-Term Obligations:
(Amortized Cost: $153,278)		     153,278    
Total Investments: 99.7%
(Cost: $3,359,208)(g)(h)		     4,415,447    
Obligation to Return Collateral for
Securities Loaned: (0.6)%		     (26,644 )  
Cash and Other Assets Less Liabilities: 0.9%     41,935    
Total Net Assets: 100.0%   $ 4,430,738    

 

ADR = American Depositary Receipts.

GDR = Global Depositary Receipts.

See accompanying notes to financial statements.


40


> Notes to Statements of Investments (dollar values in thousands)

(a)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
Ain Pharmaciez*     643,000       -       -       643,000     $ 15,427     $ 185    
Koninklijke TenCate     1,556,239       78,456 **     261,706       1,372,989       36,081       725    
Nippon Residential Investment     5,200       7,300       -       12,500       30,372       2,090    
Unit 4 Aggresso     1,385,000       -       -       1,385,000       32,644       -    
Total of Affiliated Transactions     3,589,439       85,756       261,706       3,413,489     $ 114,524     $ 3,000    

 

*  At December 31, 2009, the Fund owned less than five percent of the company's outstanding voting shares.

**  Includes the effect of a 2:1 stock split.

  The aggregate cost and value of these companies at December 31, 2009, were $77,410 and $114,524, respectively. Investments in affiliated companies represented 2.6% of total net assets at December 31, 2009.

(b)  Non-income producing security.

(c)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $25,743.

(d)  Illiquid security.

(e)  Security is traded on a U.S. exchange.

(f)  Investment made with cash collateral received from securities lending activity.

(g)  At December 31, 2009, for federal income tax purposes, the cost of investments was $3,397,978 and net unrealized apppreciation was $1,017,469, consisting of gross unrealized appreciation of $1,265,386 and gross unrealized depreciation of $247,917.

(h)  On December 31, 2009, the Fund's total investments were denominated in currencies as follows:

Currency   Value   Percentage
of Net Assets		  
Euro   $ 989,294       22.3    
Japanese Yen     677,448       15.3    
U.S. Dollar     548,464       12.4    
British Pound     305,247       6.9    
Hong Kong Dollar     284,241       6.4    
Other currencies less
than 5% of total net assets		     1,610,753       36.4    
    $ 4,415,447       99.7    

 

See accompanying notes to financial statements.


41


Columbia Acorn International

Statement of Investments, continued

> Notes to Statements of Investments (dollar values in thousands)

  At December 31, 2009, the Fund had entered into the following forward foreign currency exchange contracts:

Forward Foreign Currency
Exchange Contracts to Sell		   Forward Foreign Currency
Exchange Contracts to Buy		   Principal Amount in
Foreign Currency		   Principal
Amount in U.S. Dollar		   Settlement Date   Unrealized
Appreciation		  
USD   CAD       26,337     $ 25,000     2/12/10   $ 183    
USD   CAD     26,474       25,000     3/15/10     313    
EUR   USD     43,638       65,000     1/15/10     2,443    
EUR   USD     43,678       65,000     2/12/10     2,389    
EUR   USD     44,397       65,000     3/15/10     1,361    
            $ 245,000         $ 6,689    
Forward Foreign Currency
Exchange Contracts to Buy		   Forward Foreign Currency
Exchange Contracts to Sell		   Principal Amount in
Foreign Currency		   Principal
Amount in U.S. Dollar		   Settlement Date   Unrealized
(Depreciation)		  
AUD   USD       16,544     $ 15,000     1/15/10   $ (155 )  
AUD   USD     16,324       15,000     2/12/10     (393 )  
AUD   USD     16,531       15,000     3/15/10     (256 )  
CAD   USD     25,674       25,000     1/15/10     (452 )  
JPY   USD     2,234,275       25,000     1/15/10     (1,009 )  
JPY   USD     2,259,250       25,000     2/12/10     (737 )  
JPY   USD     2,215,575       25,000     3/15/10     (1,203 )  
            $ 145,000         $ (4,205 )  

 

The counterparty for all forward foreign currency exchange contracts is State Street Bank and Trust Company.

AUD = Australian Dollar

CAD = Canadian Dollar

EUR = Euro

JPY = Japanese Yen

USD = United States Dollar

The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Asia   $ 63,676     $ 1,652,077     $ 158     $ 1,715,911    
Europe     35,048       1,598,293       -       1,633,341    
Other Countries     366,581       270,277       -       636,858    
Latin America     102,477       146,938       -       249,415    
Total Equities     567,782       3,667,585       158       4,235,525    
Total Securities Lending Collateral     26,644       -       -       26,644    
Total Short-Term Obligations     -       153,278       -       153,278    
Total Investments   $ 594,426     $ 3,820,863     $ 158     $ 4,415,447    
Net Unrealized Appreciation on Forward Foreign
Currency Exchange Contracts		     -       6,689       -       6,689    
Net Unrealized Depreciation on Forward Foreign
Currency Exchange Contracts		     -       (4,205 )     -       (4,205 )  
Total   $ 594,426     $ 3,823,347     $ 158     $ 4,417,931    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

See accompanying notes to financial statements.


42


> Notes to Statements of Investments (dollar values in thousands)

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Asia   $ 312     $ -     $ -     $ (13,049 )   $ -     $ 12,895     $ 158    
    $ 312     $ -     $ -     $ (13,049 )   $ -     $ 12,895     $ 158    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 inputs during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(13,049). This amount is included in net change in unrealized appreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


43


Columbia Acorn International

Portfolio Diversification

At December 31, 2009, the Fund's portfolio investments as a percent of net assets were diversified as follows:

    Value (000)   Percentage
of Net Assets		  
> Industrial Goods & Services  
Other Industrial Services   $ 378,257       8.5    
Industrial Materials &
Specialty Chemicals		     306,733       6.9    
Machinery     272,568       6.2    
Outsourcing Services     165,223       3.7    
Electrical Components     100,514       2.3    
Conglomerates     76,676       1.7    
Construction     66,099       1.5    
Industrial Distribution     3,642       0.1    
      1,369,712       30.9    
> Consumer Goods & Services  
Nondurables     105,466       2.4    
Retail     100,417       2.3    
Educational Services     79,008       1.8    
Travel     76,072       1.7    
Apparel     74,184       1.7    
Other Consumer Services     71,062       1.6    
Food & Beverage     69,684       1.6    
Casinos & Gaming     67,592       1.5    
Other Entertainment     52,811       1.2    
Consumer Goods Distribution     27,725       0.6    
Furniture & Textiles     19,704       0.4    
Consumer Electronics     7,928       0.2    
      751,653       17.0    
> Information  
Financial Processors     101,992       2.3    
TV Broadcasting     80,067       1.8    
Computer Hardware &
Related Equipment		     72,650       1.6    
Instrumentation     69,182       1.6    
Internet Related     54,538       1.2    
Satellite Broadcasting & Services     35,724       0.8    
Semiconductors &
Related Equipment		     34,672       0.8    
Business Software     32,644       0.7    
CATV     31,208       0.7    
Publishing     23,168       0.5    
Advertising     17,688       0.4    
Business Information &
Marketing Services		     15,996       0.4    
Telecommunications Equipment     12,203       0.3    
Mobile Communications     6,690       0.2    
      588,422       13.3    
> Energy & Minerals  
Oil Services     195,606       4.4    
Mining     118,830       2.7    
Oil Refining, Marketing &
Distribution		     86,977       2.0    

 

    Value (000)   Percentage
of Net Assets		  
Agricultural Commodities   $ 50,075       1.1    
Oil & Gas Producers     37,442       0.9    
Other Resources     5,968       0.1    
      494,898       11.2    
> Other Industries  
Real Estate     247,339       5.6    
Transportation     144,236       3.2    
Regulated Utilities     71,123       1.6    
      462,698       10.4    
> Finance  
Brokerage & Money Management     168,798       3.8    
Banks     112,029       2.5    
Finance Companies     42,521       1.0    
Savings & Loans     25,935       0.6    
      349,283       7.9    
> Health Care  
Medical Equipment & Devices     134,085       3.0    
Pharmaceuticals     35,827       0.8    
Health Care Services     20,790       0.5    
Medical Supplies     14,520       0.3    
Biotechnology & Drug Delivery     13,637       0.3    
      218,859       4.9    
Total Equities:     4,235,525       95.6    
Securities Lending
Collateral:		     26,644       0.6    
Short-Term Obligations:     153,278       3.5    
Total Investments:     4,415,447       99.7    
Obligation to Return
Collateral for
Securities Loaned:		     (26,644 )     (0.6 )  
Cash and Other Assets
Less Liabilities:		     41,935       0.9    
Net Assets:   $ 4,430,738       100.0    

 

See accompanying notes to financial statements.


44



Columbia Acorn USA

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Information  
AboveNet     0       45,000    
Blue Coat Systems     210,100       389,100    
ExlService Holdings     0       248,698    
Monolithic Power Systems     340,000       500,000    
PAETEC Holding     1,591,800       2,250,000    
Plexus     115,000       165,000    
Supertex     189,296       287,000    
Consumer Goods & Services  
Abercrombie & Fitch     281,000       431,000    
Diamond Foods     0       97,814    
Lifetime Fitness     110,000       182,000    
Vail Resorts     150,000       220,000    
Industrial Goods & Services  
GrafTech International     200,000       540,000    
Pentair     500,000       585,000    
Energy & Minerals  
Atwood Oceanics     720,000       755,000    
Bristow     0       105,000    
Health Care  
Acorda Therapeutics     0       199,000    
Allos Therapeutics     341,000       565,000    
Gen-Probe     0       46,500    
Mednax     0       45,000    
Nanosphere     0       199,720    

 

    Number of Shares  
    09/30/09   12/31/09  
Sales  
Information  
Amphenol     295,600       285,600    
Cogent Communications     840,000       444,800    
Concur Technologies     223,000       158,000    
Micros Systems     695,100       620,000    
Polycom     525,000       480,000    
Switch & Data Facilities     947,000       510,000    
Consumer Goods & Services  
Hot Topic     497,714       0    
Jarden     298,000       154,000    
Industrial Goods & Services  
Greif     50,000       0    
Mine Safety Appliances     155,000       77,000    
Quanta Services     350,000       110,000    
Energy & Minerals  
FMC Technologies     598,400       500,000    
Oceaneering International     130,111       95,000    
Health Care  
Cephalon     125,000       56,000    
Charles River Laboratories     67,000       0    
Emdeon     148,000       0    
Human Genome Sciences     335,000       298,000    
InterMune     187,000       127,800    
Luminex     205,000       0    
Myriad Genetics     153,466       113,466    
Nektar Therapeutics     500,000       357,000    
Onyx Pharmaceuticals     75,000       0    
Poniard     290,184       0    
Psychiatric Solutions     287,000       170,000    
Other Industries  
Heartland Express     524,720       344,720    

 

See accompanying notes to financial statements.


45


Columbia Acorn USA

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 99.7%    
Information 35.4%      
    > Business Software 7.7%  
  1,155,000     Informatica (a)   $ 29,868    
        Enterprise Data Integration Software        
  620,000     Micros Systems (a)     19,239    
        Information Systems for Restaurants & Hotels        
  375,000     ANSYS (a)     16,297    
        Simulation Software for Engineers & Designers        
  525,000     Blackbaud     12,406    
        Software & Services for Non-profits        
  2,100,000     Novell (a)     8,715    
        Directory, Operating System & Identity
Management Software		        
  158,000     Concur Technologies (a)     6,755    
        Web Enabled Cost & Expense
Management Software		        
  240,000     NetSuite (a)(b)     3,835    
        End to End IT Systems Solutions Delivered
Over the Web		        
  57,000     Quality Systems     3,578    
        IT Systems for Medical Groups &
Ambulatory Care Centers		        
  108,213     Tyler Technologies (a)     2,155    
        Financial, Tax, Court & Document
Management Systems for Government		        
  307,352     Art Technology Group (a)     1,386    
        Software & Tools to Optimize Websites
for E-commerce		        
  100,000     Avid Technology (a)     1,276    
        Digital Nonlinear Editing Software & Systems        
  230,000     Actuate (a)     984    
        Information Delivery Software & Solutions        
  10,800     Blackboard (a)     490    
        Education Software        
      106,984    
    > Semiconductors &
Related Equipment 4.4%		  
  760,000     Microsemi (a)     13,490    
        Analog/Mixed-signal Semiconductors        
  500,000     Monolithic Power Systems (a)     11,985    
        High Performance Analog & Mixed-signal
Integrated Circuits (ICs)		        
  1,179,750     ON Semiconductor (a)     10,394    
        Mixed-signal & Power Management
Semiconductors		        
  287,000     Supertex (a)     8,553    
        Analog/Mixed-signal Semiconductors        
  1,168,000     Integrated Device Technology (a)     7,557    
        Communications Semiconductors        
  480,000     Pericom Semiconductor (a)     5,534    
        Interface Integrated Circuits (ICs) &
Frequency Control Products		        
  750,000     Entegris (a)     3,960    
        Semiconductor Materials Management Products        
      61,473    
    > Mobile Communications 3.8%  
  1,250,000     Crown Castle International (a)     48,800    
        Communications Towers        

 

Number of Shares     Value (000)  
  130,000     SBA Communications (a)   $ 4,441    
        Communications Towers        
  88,000     Globalstar (a)(b)     76    
        Satellite Mobile Voice & Data Carrier        
      53,317    
    > Telephone and Data Services 3.8%  
  2,061,000     tw telecom (a)     35,326    
        Fiber Optic Telephone/Data Services        
  2,250,000     PAETEC Holding (a)     9,337    
        Telephone/Data Services for Business        
  444,800     Cogent Communications (a)     4,386    
        Internet Data Pipelines        
  45,000     AboveNet (a)     2,927    
        Metropolitan Fiber Communications Services        
      51,976    
    > Instrumentation 3.4%  
  180,000     Mettler Toledo (a)     18,898    
        Laboratory Equipment        
  775,000     IPG Photonics (a)     12,973    
        Fiber Lasers        
  350,000     FLIR Systems (a)     11,452    
        Infrared Cameras        
  168,000     Trimble Navigation (a)     4,234    
        GPS-based Instruments        
      47,557    
    > Computer Hardware & Related
Equipment 3.3%		  
  505,000     II-VI (a)     16,059    
        Laser Optics & Specialty Materials        
  285,600     Amphenol     13,189    
        Electronic Connectors        
  280,000     Nice Systems - ADR (Israel) (a)     8,691    
        Audio & Video Recording Solutions        
  184,000     Zebra Technologies (a)     5,219    
        Bar Code Printers        
  135,000     Netgear (a)     2,928    
        Networking Products for Small Business & Home        
      46,086    
    > Telecommunications Equipment 2.3%  
  480,000     Polycom (a)     11,986    
        Video Conferencing Equipment        
  389,100     Blue Coat Systems (a)     11,105    
        WAN Acceleration & Network Security        
  335,000     CommScope (a)     8,887    
        Wireless Infrastructure Equipment & Telecom Cable        
      31,978    
    > Financial Processors 1.8%  
  463,000     Global Payments     24,937    
        Credit Card Processor        
      24,937    
    > Gaming Equipment & Services 1.7%  
  570,000     Bally Technologies (a)     23,535    
        Slot Machines & Software        
      23,535    

 

See accompanying notes to financial statements.


46


Number of Shares     Value (000)  
    > Computer Services 1.4%  
  395,000     SRA International (a)   $ 7,545    
        Government IT Services        
  248,698     ExlService Holdings (a)     4,516    
        Business Process Outsourcing        
  1,005,500     Hackett Group (a)     2,795    
        IT Integration & Best Practice Research        
  235,000     iGate     2,350    
        IT & Business Process Outsourcing Services        
  786,000     RCM Technologies (a)(c)     1,949    
        Technology & Engineering Services        
      19,155    
    > Internet Related 0.8%  
  510,000     Switch & Data Facilities (a)     10,307    
        Network Neutral Data Centers        
  381,740     TheStreet.com     916    
        Financial Information Websites        
      11,223    
    > Contract Manufacturing 0.3%  
  165,000     Plexus (a)     4,703    
        Electronic Manufacturing Services        
      4,703    
    > Radio 0.3%  
  511,100     Salem Communications (a)     3,062    
        Radio Stations for Religious Programming        
  705,500     Spanish Broadcasting System (a)     550    
        Spanish Language Radio Stations        
  18,750     Saga Communications (a)     235    
        Radio Stations in Small & Mid-sized Cities        
      3,847    
    > TV Broadcasting 0.3%  
  975,000     Entravision Communications (a)     3,315    
        Spanish Language TV & Radio Stations        
      3,315    
    > CATV 0.1%  
  335,000     Mediacom Communications (a)     1,498    
        Cable Television Franchises        
      1,498    
Information: Total     491,584    
Consumer Goods & Services 16.6%      
    > Retail 6.1%  
  431,000     Abercrombie & Fitch     15,021    
        Teen Apparel Retailer        
  402,000     Urban Outfitters (a)     14,066    
        Apparel & Home Specialty Retailer        
  281,000     J Crew Group (a)     12,572    
        Multi-channel Branded Retailer        
  390,000     lululemon athletica (a)     11,739    
        Premium Active Apparel Retailer        
  824,000     Chico's FAS (a)     11,577    
        Women's Specialty Retailer        
  875,000     Saks (a)     5,740    
        Luxury Department Store Retailer        
  480,000     Talbots (a)(b)     4,277    
        Women's Specialty Retailer        

 

Number of Shares     Value (000)  
  658,000     Charming Shoppes (a)   $ 4,257    
        Women's Specialty Plus Size Apparel Retailer        
  55,000     Gymboree (a)     2,392    
        Children's Apparel Specialty Retailer        
  165,000     AnnTaylor Stores (a)     2,251    
        Women's Apparel Retailer        
  17,100     Rue21 (a)     480    
        Fashion Value Apparel Retailer        
      84,372    
    > Travel 3.1%  
  750,000     Gaylord Entertainment (a)     14,813    
        Convention Hotels        
  797,750     Avis Budget Group (a)     10,466    
        Second Largest Car Rental Company        
  750,000     Hertz (a)     8,940    
        Largest U.S. Rental Car Operator        
  220,000     Vail Resorts (a)     8,316    
        Ski Resort Operator & Developer        
      42,535    
    > Educational Services 1.6%  
  192,000     ITT Educational Services (a)     18,424    
        Post-secondary Degree Services        
  165,000     Universal Technical Institute (a)     3,333    
        Vocational Training        
      21,757    
    > Furniture & Textiles 1.4%  
  980,000     Knoll     10,124    
        Office Furniture        
  285,000     Herman Miller     4,554    
        Office Furniture        
  540,000     Interface     4,487    
        Modular & Broadloom Carpet        
      19,165    
    > Apparel 1.0%  
  222,200     Coach     8,117    
        Designer & Retailer of Branded
Leather Accessories		        
  284,313     True Religion Apparel (a)     5,257    
        Premium Denim        
      13,374    
    > Other Durable Goods 0.8%  
  327,900     Cavco Industries (a)(c)     11,778    
        Manufactured Homes        
      11,778    
    > Consumer Goods Distribution 0.7%  
  523,500     Pool     9,988    
        Distributor of Swimming Pool
Supplies & Equipment		        
      9,988    
    > Food & Beverage 0.5%  
  97,814     Diamond Foods     3,476    
        Culinary Ingredients & Snack Foods        
  90,000     Hansen Natural (a)     3,456    
        Alternative Beverages        
      6,932    

 

See accompanying notes to financial statements.


47


Columbia Acorn USA

Statement of Investments, continued

Number of Shares     Value (000)  
    > Leisure Products 0.4%  
  180,000     Thor Industries   $ 5,652    
        RV & Bus Manufacturer        
      5,652    
    > Nondurables 0.3%  
  154,000     Jarden     4,760    
        Branded Household Products        
      4,760    
    > Other Consumer Services 0.3%  
  182,000     Lifetime Fitness (a)(b)     4,537    
        Sport & Fitness Club Operator        
      4,537    
    > Casinos & Gaming 0.3%  
  455,000     Pinnacle Entertainment (a)     4,086    
        Regional Casino Operator        
      4,086    
    > Restaurants 0.1%  
  40,000     P.F. Chang's China Bistro (a)(b)     1,517    
        Mandarin Style Restaurants        
      1,517    
Consumer Goods & Services: Total     230,453    
Industrial Goods & Services 13.3%      
    > Machinery 9.4%  
  627,500     Ametek     23,996    
        Aerospace/Industrial Instruments        
  373,600     Nordson     22,857    
        Dispensing Systems for Adhesives & Coatings        
  587,000     ESCO Technologies     21,044    
        Automatic Electric Meter Readers        
  445,000     Donaldson     18,930    
        Industrial Air Filtration        
  585,000     Pentair     18,895    
        Pumps & Water Treatment        
  235,000     Oshkosh     8,702    
        Specialty Truck Manufacturer        
  195,000     MOOG (a)     5,700    
        Motion Control Products for Aerospace,
Defense & Industrial Markets		        
  100,000     HEICO     3,596    
        FAA Approved Aircraft Replacement Parts        
  71,800     Toro     3,002    
        Turf Maintenance Equipment        
  77,000     Mine Safety Appliances     2,043    
        Safety Equipment        
  50,000     Kaydon     1,788    
        Specialized Friction & Motion Control Products        
      130,553    
    > Industrial Materials & Specialty
Chemicals 0.9%		  
  255,000     Drew Industries (a)     5,266    
        RV & Manufactured Home Components        
  150,000     Albany International     3,369    
        Paper Machine Clothing & Advanced Textiles        
  60,000     Albemarle     2,182    
        Refinery Catalysts & Other Specialty Chemicals        

 

Number of Shares     Value (000)  
  65,000     Koppers Holdings   $ 1,979    
        Integrated Provider of Carbon Compounds        
      12,796    
    > Steel 0.6%  
  540,000     GrafTech International (a)     8,397    
        Industrial Graphite Materials Producer        
      8,397    
    > Other Industrial Services 0.5%  
  265,000     TrueBlue (a)     3,925    
        Temporary Manual Labor        
  396,000     American Reprographics (a)     2,776    
        Document Management & Logistics        
      6,701    
    > Industrial Distribution 0.4%  
  350,000     Interline Brands (a)     6,044    
        Industrial Distribution        
      6,044    
    > Electrical Components 0.4%  
  145,000     Acuity Brands     5,168    
        Commercial Lighting Fixtures        
      5,168    
    > Construction 0.4%  
  240,000     M/I Homes (a)     2,494    
        Columbus-based Home Builder        
  110,000     Ritchie Brothers Auctioneers (b)     2,467    
        Heavy Equipment Auctioneer        
      4,961    
    > Waste Management 0.3%  
  130,000     Waste Connections (a)     4,334    
        Solid Waste Management        
      4,334    
    > Water 0.2%  
  550,000     Mueller Water Products     2,860    
        Fire Hydrants, Valves & Ductile Iron Pipes        
      2,860    
    > Outsourcing Services 0.2%  
  110,000     Quanta Services (a)     2,292    
        Electrical & Telecom Construction Services        
      2,292    
Industrial Goods & Services: Total     184,106    
Finance 12.5%      
    > Finance Companies 5.1%  
  1,136,500     AmeriCredit (a)     21,639    
        Auto Lending        
  407,900     World Acceptance (a)     14,615    
        Personal Loans        
  365,000     GATX     10,494    
        Rail Car Lessor        
  345,000     McGrath Rentcorp     7,714    
        Temporary Space & IT Rentals        
  275,000     Aaron's (b)     7,626    
        Rent to Own        
  625,000     H&E Equipment Services (a)     6,556    
        Heavy Equipment Leasing        

 

See accompanying notes to financial statements.


48


Number of Shares     Value (000)  
    > Finance Companies—continued  
  230,000     CAI International (a)   $ 2,077    
        International Container Leasing        
  99,200     Marlin Business Services (a)     786    
        Small Equipment Leasing        
      71,507    
    > Banks 4.4%  
  935,182     Valley National Bancorp (b)     13,214    
        New Jersey/New York Bank        
  492,125     MB Financial     9,705    
        Chicago Bank        
  659,800     TCF Financial     8,986    
        Great Lakes Bank        
  403,788     Lakeland Financial     6,965    
        Indiana Bank        
  508,000     Pacific Continental     5,811    
        Pacific N.W. Bank        
  127,200     SVB Financial Group (a)     5,303    
        Bank to Venture Capitalists        
  213,600     Associated Banc-Corp     2,352    
        Midwest Bank        
  215,000     Eagle Bancorp (a)     2,251    
        Metro D.C. Bank        
  500,000     First Busey     1,945    
        Illinois Bank        
  140,000     Wilmington Trust     1,728    
        Delaware Trust Bank        
  90,000     TriCo Bancshares     1,498    
        California Central Valley Bank        
  851,247     Guaranty Bancorp (a)     1,124    
        Colorado Bank        
  247,203     Green Bankshares (b)     878    
        Tennessee Bank        
      61,760    
    > Brokerage & Money Management 1.4%  
  280,000     Eaton Vance     8,515    
        Specialty Mutual Funds        
  750,000     MF Global (a)     5,212    
        Futures Broker        
  155,000     Investment Technology Group (a)     3,054    
        Electronic Trading        
  150,000     SEI Investments     2,628    
        Mutual Fund Administration &
Investment Management		        
      19,409    
    > Savings & Loans 1.0%  
  600,000     ViewPoint Financial     8,646    
        Texas Thrift        
  238,090     Berkshire Hills Bancorp     4,924    
        Northeast Thrift        
  42,231     K-Fed Bancorp (b)     371    
        Los Angeles Savings & Loan        
      13,941    
    > Insurance 0.6%  
  120,000     Tower Group     2,809    
        Commercial & Personal Lines Insurance        

 

Number of Shares     Value (000)  
  110,000     Delphi Financial Group   $ 2,461    
        Workers Compensation & Group Employee
Benefit Products & Services		        
  7,000     Markel (a)     2,380    
        Specialty Insurance        
      7,650    
Finance: Total     174,267    
Energy & Minerals 8.9%      
    > Oil Services 5.0%  
  500,000     FMC Technologies (a)     28,920    
        Oil & Gas Wellhead Manufacturer        
  755,000     Atwood Oceanics (a)     27,067    
        Offshore Drilling Contractor        
  95,000     Oceaneering International (a)     5,559    
        Provider of Sub-sea Services &
Manufactured Products		        
  105,000     Bristow (a)     4,037    
        Largest Provider of Helicopter Services to
Offshore Oil & Gas Producers		        
  115,375     Exterran Holdings (a)     2,475    
        Natural Gas Compressor Rental & Fabrication        
  106,000     Tesco (a)     1,369    
        Developing New Well Drilling Technologies        
      69,427    
    > Oil & Gas Producers 3.0%  
  925,000     Quicksilver Resources (a)     13,884    
        Natural Gas & Coal Steam Gas Producer        
  485,000     Carrizo Oil & Gas (a)     12,848    
        Oil & Gas Producer        
  218,800     Southwestern Energy (a)     10,546    
        Oil & Gas Producer        
  111,200     Equitable Resources     4,884    
        Natural Gas Producer & Utility        
      42,162    
    > Mining 0.5%  
  50,000     Core Laboratories (Netherlands)     5,906    
        Oil & Gas Reservoir Consulting        
  143,247     PolyMet Mining (a)     438    
        Copper & Nickel Miner        
      6,344    
    > Other Resources 0.4%  
  218,000     Layne Christensen (a)     6,259    
        Oil & Gas Production/Engineering &
Construction/Contract Drilling		        
      6,259    
Energy & Minerals: Total     124,192    
Health Care 8.4%      
    > Biotechnology & Drug Delivery 3.6%  
  298,000     Human Genome Sciences (a)     9,119    
        Biotech Focused on HCV,
Inflammation & Cancer		        
  199,000     Acorda Therapeutics (a)     5,019    
        Biopharma Company Focused on
Nervous Disorder Drugs		        
  266,000     BioMarin (a)     5,003    
        Biotech Focused on Orphan Diseases        

 

See accompanying notes to financial statements.


49


Columbia Acorn USA

Statement of Investments, continued

Number of Shares     Value (000)  
    > Biotechnology & Drug
Delivery—continued		  
  488,784     Seattle Genetics (a)   $ 4,966    
        Antibody-based Therapies for Cancer        
  157,000     Auxilium Pharmaceuticals (a)     4,707    
        Biotech Focused on Niche Disease Areas        
  565,000     Allos Therapeutics (a)     3,712    
        Cancer Drug Development        
  65,000     United Therapeutics (a)     3,422    
        Biotech Focused on Rare Diseases        
  357,000     Nektar Therapeutics (a)     3,327    
        Drug Delivery Technologies        
  85,000     AMAG Pharmaceuticals (a)     3,233    
        Biotech Focused on Niche Diseases        
  113,466     Myriad Genetics (a)     2,961    
        Genetic Diagnostics        
  500,000     NPS Pharmaceuticals (a)     1,700    
        Orphan Drugs & Healthy Royalties        
  127,800     InterMune (a)     1,667    
        Drugs for Pulmonary Fibrosis & Hepatitis C        
  225,000     Micromet (a)(b)     1,499    
        Next-generation Antibody Technology        
  18,181     Metabolex, Series A-1 (a)(d)     22    
        Diabetes Drug Development        
  738,060     Medicure - Warrants (a)(d)     7    
        Cardiovascular Biotech Company        
  100,000     IsoRay - Warrants (a)(d)     2    
        Radiology Cancer Company        
  37,500     Locus Pharmaceuticals,
Series A-1, Pfd. (a)(d)		     2    
  19,329     Locus Pharmaceuticals,
Series B-1, Pfd. (a)(d)		     1    
        High Throughput Rational Drug Design        
      50,369    
    > Medical Equipment & Devices 2.0%  
  235,000     Alexion Pharmaceuticals (a)     11,473    
        Biotech Focused on Orphan Diseases        
  134,000     Illumina (a)     4,107    
        Leading Tools & Service Provider for
Genetic Analysis		        
  85,000     Orthofix International (a)     2,632    
        Bone Fixation & Stimulation Devices        
  80,000     Sirona Dental Systems (a)     2,539    
        Manufacturer of Dental Equipment        
  46,500     Gen-Probe (a)     1,995    
        Molecular In-vitro Diagnostics        
  100,000     American Medical Systems (a)     1,929    
        Medical Devices to Treat Urological Conditions        
  40,000     Kinetic Concepts (a)     1,506    
        Wound Healing & Tissue Repair Products        
  199,720     Nanosphere (a)     1,286    
        Molecular Diagnostics Company with
Best of Breed Platform		        
      27,467    
    > Health Care Services 1.6%  
  606,300     PSS World Medical (a)     13,684    
        Distributor of Medical Supplies        
  170,000     Psychiatric Solutions (a)     3,594    
        Behavioral Health Services        

 

Number of Shares     Value (000)  
  45,000     Mednax (a)   $ 2,705    
        Physician Management for Pediatric &
Anesthesia Practices		        
  283,000     eResearch Technology (a)     1,701    
        Clinical Research Services        
      21,684    
    > Medical Supplies 1.0%  
  318,000     Cepheid (a)     3,969    
        Molecular Diagnostics        
  180,000     Immucor (a)     3,643    
        Automated Blood Typing Reagents        
  43,000     Techne     2,948    
        Cytokines, Antibodies & Other Reagents
for Life Science		        
  53,000     Idexx Laboratories (a)(b)     2,832    
        Diagnostic Equipment & Services
for Veterinarians		        
      13,392    
    > Pharmaceuticals 0.2%  
  56,000     Cephalon (a)     3,495    
        Specialty Pharmaceuticals for Pain,
Central Nervous System & Oncology		        
      3,495    
Health Care: Total     116,407    
Other Industries 4.6%      
    > Real Estate 4.1%  
  405,000     SL Green Realty     20,347    
        Manhattan Office Buildings        
  276,796     Macerich (b)     9,951    
        Regional Shopping Malls        
  170,000     Corporate Office Properties     6,227    
        Office Buildings        
  1,450,000     Kite Realty Group     5,902    
        Community Shopping Centers        
  100,000     Digital Realty Trust     5,028    
        Technology-focused Office Buildings        
  90,000     American Campus Communities     2,529    
        Student Housing        
  470,000     DCT Industrial Trust     2,359    
        Industrial Properties        
  196,000     Extra Space Storage     2,264    
        Self Storage Facilities        
  120,000     BioMed Realty Trust     1,894    
        Life Science-focused Office Buildings        
      56,501    
    > Transportation 0.5%  
  344,720     Heartland Express     5,264    
        Regional Trucker        
  180,000     Rush Enterprises, Class A (a)     2,140    
        Truck Sales & Services        
      7,404    
Other Industries: Total     63,905    
Total Equities: 99.7%
(Cost: $1,099,805)		     1,384,914    

 

See accompanying notes to financial statements.


50


Number of Shares
or Principal Amount (000)		     Value (000)  
Securities Lending Collateral: 1.2%  
  16,749,043     Dreyfus Government Cash
Management Fund (e)
(7 day yield of 0.000%)		   $ 16,749    
Total Securities Lending Collateral:
(Cost: $16,749)		     16,749    
Short-Term Obligation: 0.8%  
    > Repurchase Agreement 0.8%  
$ 11,015     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Treasury obligation,
maturing 3/18/10,
market value $11,239
(repurchase proceeds $11,015)		     11,015    
Total Short-Term Obligation:
(Cost: $11,015)		     11,015    
Total Investments: 101.7%
(Cost: $1,127,569)(f)		     1,412,678    
Obligation to Return Collateral for
Securities Loaned: (1.2)%		     (16,749 )  
Cash and Other Assets Less Liabilities: (0.5)%     (6,320 )  
Total Net Assets: 100.0%   $ 1,389,609    

 

ADR = American Depositary Receipts

See accompanying notes to financial statements.


51


Columbia Acorn USA

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $16,200.

(c)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliate   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
RCM Technologies     786,000       -       -       786,000     $ 1,949     $ -    
Cavco Industries     287,900       50,000       10,000       327,900       11,778       -    
Total of Affiliated Transactions     1,073,900       50,000       10,000       1,113,900     $ 13,727     $ -    

 

  The aggregate cost and value of these companies at December 31, 2009, were $16,520 and $13,727, respectively. Investments in the affiliated companies represented 1.0% of total net assets at December 31, 2009.

(d)  Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. These securities are valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. At December 31, 2009, the market value of these securities amounted to $34 which represented less than 0.01% of total net assets.

  Additional information on these securities is as follows:

Security   Acquisition
Dates		   Shares   Cost   Value  
Metabolex, Series A   2/11/00     18,181     $ 2,000     $ 22    
Medicure - Warrants   12/22/06     738,060       -       7    
IsoRay - Warrants   3/21/07     100,000       -       2    
Locus Pharmaceuticals, Series A-1, Pfd.   9/05/01     37,500       1,500       2    
Locus Pharmaceuticals, Series B-1, Pfd.   2/08/07     19,329       56       1    
                $ 3,556     $ 34    

 

(e)  Investment made with cash collateral received from securities lending activity.

(f)  At December 31, 2009, for federal income tax purposes, the cost of investments was $1,127,912 and net unrealized appreciation was $284,766, consisting of gross unrealized appreciation of $457,844 and gross unrealized depreciation of $173,078.

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Information   $ 491,584     $ -     $ -     $ 491,584    
Consumer Goods & Services     230,453       -       -       230,453    
Industrial Goods & Services     184,106       -       -       184,106    
Finance     174,267       -       -       174,267    
Energy & Minerals     124,192       -       -       124,192    
Health Care     116,373       9       25       116,407    
Other Industries     63,905       -       -       63,905    
Total Equities     1,384,880       9       25       1,384,914    
Total Securities Lending Collateral     16,749       -       -       16,749    
Short-Term Obligation     -       11,015       -       11,015    
Total Investments   $ 1,401,629     $ 11,024     $ 25     $ 1,412,678    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

See accompanying notes to financial statements.


52


> Notes to Statement of Investments (dollar values in thousands)

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Health Care   $ 41     $ -     $ -     $ (16 )   $ -     $ -     $ 25    
    $ 41     $ -     $ -     $ (16 )   $ -     $ -     $ 25    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(16). This amount is included in net change in unrealized depreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


53


Columbia Acorn International Select

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Europe  
> United Kingdom  
Cobham     2,115,000       2,650,000    
Schroders     270,000       310,000    
Spice Group     0       1,502,200    
> Netherlands  
Smit Internationale     0       38,285    
> France  
Eutelsat (France)     138,000       188,000    
> Germany  
Wirecard     0       635,000    
> Spain  
Red Electrica de Espana (Spain)     175,000       195,000    
> Switzerland  
Bank Sarasin & Cie     24,800       90,000    
Asia  
> Japan  
Ain Pharmaciez     95,300       160,000    
Nomura Holdings     0       560,000    
> Singapore  
Olam International (Singapore)     5,500,000       6,100,000    
> China  
Zhaojin Mining Industry (China)     0       3,711,000    
Other Countries  
> Australia  
United Group     0       487,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Sales  
Europe  
> United Kingdom  
RPS Group     1,200,000       0    
> France  
SES     210,000       0    
> Germany  
Wincor Nixdorf     110,000       0    
Asia  
> Japan  
Aeon Mall     296,000       0    
> Hong Kong  
NagaCorp (Hong Kong)     9,918,766       3,867,066    
Other Countries  
> Canada  
Potash Corp. of Saskatchewan     117,400       80,000    
> United States  
Alexion Pharmaceuticals     220,000       90,000    
Cephalon     85,000       0    
> Israel  
Israel Chemicals     1,203,000       310,000    

 

See accompanying notes to financial statements.


54


Columbia Acorn International Select

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 93.3%    
Europe 36.9%      
    > United Kingdom 15.2%  
  2,350,000     Serco   $ 19,979    
        Facilities Management        
  1,100,000     Capita Group     13,268    
        White Collar, Back Office Outsourcing        
  2,650,000     Cobham     10,682    
        Aerospace Components        
  525,000     Intertek Group     10,571    
        Testing, Inspection & Certification Services        
  310,000     Schroders     6,617    
        United Kingdom Top Tier Asset Manager        
  1,502,200     Spice Group     1,466    
        United Kingdom Utility Outsourcing        
      62,583    
    > Netherlands 6.0%  
  169,162     Fugro     9,660    
        Sub-sea Oilfield Services        
  252,000     Imtech     6,763    
        Electromechanical & ICT
Installation & Maintenance		        
  41,000     Core Laboratories     4,843    
        Oil & Gas Reservoir Consulting        
  38,285     Smit Internationale     3,296    
        Harbor & Offshore Towage & Marine Services        
      24,562    
    > France 4.3%  
  89,500     Neopost     7,394    
        Postage Meter Machines        
  188,000     Eutelsat     6,032    
        Fixed Satellite Services        
  102,000     Zodiac Aerospace     4,257    
        Leading Supplier to the Aerospace Industry        
      17,683    
    > Germany 3.2%  
  635,000     Wirecard     8,730    
        Online Payment Processing & Risk Management        
  174,000     Rhoen-Klinikum     4,256    
        Health Care Services        
      12,986    
    > Spain 2.6%  
  195,000     Red Electrica de Espana     10,807    
        Spanish Power Transmission        
      10,807    
    > Sweden 2.4%  
  669,000     Hexagon     9,827    
        Measurement Equipment        
      9,827    
    > Switzerland 1.7%  
  35,700     Kuehne & Nagel     3,454    
        Freight Forwarding/Logistics        
  90,000     Bank Sarasin & Cie (a)     3,401    
        Private Banking        
      6,855    

 

Number of Shares     Value (000)  
    > Ireland 0.8%  
  1,130,000     United Drug   $ 3,448    
        Irish Pharmaceutical Wholesaler & Outsourcer        
      3,448    
    > Denmark 0.7%  
  29,000     Novozymes     3,007    
        Industrial Enzymes        
      3,007    
Europe: Total     151,758    
Asia 35.1%      
    > Japan 14.6%  
  1,277,000     Kansai Paint     10,603    
        Paint Producer in Japan, India, China &
Southeast Asia		        
  9,000     Jupiter Telecommunications     8,916    
        Largest Cable Service Provider in Japan        
  189,300     Benesse     7,916    
        Education Service Provider        
  634,300     Rohto Pharmaceutical     7,301    
        Health & Beauty Products        
  3,540     Seven Bank     7,031    
        ATM Processing Services        
  900     Orix JREIT     4,473    
        Diversified REIT        
  560,000     Nomura Holdings     4,127    
        Brokerage, Dealing, Underwriting &
Asset Management		        
  160,000     Ain Pharmaciez     3,839    
        Dispensing Pharmacy/Drugstore Operator        
  435,000     Kamigumi     3,161    
        Port Cargo Handling & Logistics        
  307,000     Suruga Bank     2,663    
        Regional Bank        
      60,030    
    > Singapore 6.6%  
  7,500,000     Ascendas REIT     11,745    
        Singapore Industrial Property Landlord        
  6,100,000     Olam International     11,424    
        Agriculture Supply Chain Manager        
  702,000     Singapore Exchange     4,138    
        Singapore Equity & Derivatives Market Operator        
      27,307    
    > South Korea 6.6%  
  73,100     NHN (a)     12,071    
        South Korea's Largest Online Search Engine        
  49,204     MegaStudy     10,082    
        Online Education Service Provider        
  151,000     Woongjin Coway     4,978    
        South Korean Household Appliance Rental
Service Provider		        
      27,131    
    > China 4.7%  
  3,711,000     Zhaojin Mining Industry     7,320    
        Gold Mining & Refining in China        
  6,731,000     Jiangsu Expressway     5,988    
        Chinese Toll Road Operator        

 

See accompanying notes to financial statements.


55


Columbia Acorn International Select

Statement of Investments, continued

Number of Shares     Value (000)  
    > China—continued  
  1,752,700     Shandong Weigao   $ 5,821    
        Vertically Integrated Hospital
Consumable Manufacturer		        
      19,129    
    > Hong Kong 2.6%  
  434,700     Hong Kong Exchanges and Clearing     7,739    
        Hong Kong Equity & Derivatives
Market Operator		        
  1,259,800     Lifestyle International     2,337    
        Mid to High-end Department Store Operator in
Hong Kong & China		        
  3,867,066     NagaCorp     427    
        Casino/Entertainment Complex in Cambodia        
      10,503    
Asia: Total     144,100    
Other Countries 21.3%      
    > Canada 7.9%  
  701,250     Eldorado Gold (a)     10,004    
        Gold Miner in Turkey, Greece, China & Brazil        
  615,000     Pacific Rubiales Energy (a)     9,085    
        Oil Production & Exploration in Colombia        
  80,000     Potash Corp. of Saskatchewan     8,680    
        World's Largest Producer of Potash        
  172,000     CCL Industries     4,646    
        Leading Global Label Manufacturer        
      32,415    
    > South Africa 6.2%  
  630,000     Naspers     25,566    
        Media in Africa & Other Emerging Markets        
      25,566    
    > United States 4.7%  
  61,000     Diamond Offshore     6,004    
        Offshore Drilling Contractor        
  80,000     Oceaneering International (a)     4,681    
        Provider of Sub-sea Services &
Manufactured Products		        
  90,000     Alexion Pharmaceuticals (a)     4,394    
        Biotech Focused on Orphan Diseases        
  115,000     Atwood Oceanics (a)     4,123    
        Offshore Drilling Contractor        
      19,202    
    > Australia 1.5%  
  487,000     United Group     6,201    
        Engineering & Facilities Management        
      6,201    
    > Israel 1.0%  
  310,000     Israel Chemicals     4,048    
        Producer of Potash, Phosphates, Bromine &
Specialty Chemicals		        
      4,048    
Other Countries: Total     87,432    
Total Equities: 93.3%
(Cost: $302,588)		     383,290    

 

Number of Shares
or Principal Amount (000)		     Value (000)  
Exchange Traded Fund: 1.0%      
  325,000     iShares MSCI Taiwan Index Fund   $ 4,215    
        Taiwan Exchange Traded Fund        
Total Exchange Traded Fund:
(Cost: $3,231)		     4,215    
Short-Term Obligations: 5.9%      
    > Repurchase Agreement 5.4%  
$ 21,979     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Treasury obligation,
maturing 3/18/10,
market value $22,423
(repurchase proceeds $21,979)		     21,979    
      21,979    
    > Commercial Paper 0.5%  
  2,000     Toyota Motor Credit
0.16% due 1/04/10		     2,000    
      2,000    
Total Short-Term Obligations:
(Amortized Cost: $23,979)		     23,979    
Total Investments: 100.2%
(Cost: $329,798)(b)(c)		     411,484    
Cash and Other Assets Less Liabilities: (0.2)%     (809 )  
Total Net Assets: 100.0%   $ 410,675    

 

See accompanying notes to financial statements.


56


> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  At December 31, 2009, for federal income tax purposes, the cost of investments was $333,882 and net unrealized appreciation was $77,602, consisting of gross unrealized appreciation of $87,792 and gross unrealized depreciation of $10,190.

(c)  On December 31, 2009, the Fund's total investments were denominated in currencies as follows:

Currency   Value   Percentage
of Net Assets		  
Euro   $ 64,643       15.8    
British Pound     62,583       15.2    
U.S. Dollar     60,919       14.8    
Japanese Yen     60,030       14.6    
Hong Kong Dollar     29,632       7.2    
Singapore Dollar     27,307       6.7    
South Korean Won     27,131       6.6    
South African Rand     25,566       6.2    
Canadian Dollar     23,735       5.8    
Other currencies less
than 5% of total net assets		     29,938       7.3    
    $ 411,484       100.2    

 

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Europe   $ 4,843     $ 146,915     $ -     $ 151,758    
Asia     -       144,100       -       144,100    
Other Countries     51,617       35,815       -       87,432    
Total Equities     56,460       326,830       -       383,290    
Total Exchange Traded Fund     4,215       -       -       4,215    
Total Short-Term Obligations     -       23,979       -       23,979    
Total Investments   $ 60,675     $ 350,809     $ -     $ 411,484    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

  For more information on valuation inputs, and their aggregation into the levels used in the table above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


57


Columbia Acorn International Select

Portfolio Diversification

At December 31, 2009, the Fund's portfolio investments as a percent of net assets were diversified as follows:

    Value (000)   Percentage
of Net Assets		  
> Industrial Goods & Services  
Outsourcing Services   $ 46,137       11.2    
Other Industrial Services     31,246       7.6    
Industrial Materials &
Specialty Chemicals		     17,658       4.3    
Electrical Components     10,682       2.6    
Machinery     7,394       1.8    
      113,117       27.5    
> Information  
TV Broadcasting     25,566       6.2    
Financial Processors     20,607       5.0    
Internet Related     12,071       3.0    
Instrumentation     9,827       2.4    
CATV     8,916       2.2    
Satellite Broadcasting & Services     6,032       1.5    
      83,019       20.3    
> Energy & Minerals  
Mining     30,847       7.5    
Oil Services     24,468       6.0    
Oil & Gas Producers     9,085       2.2    
      64,400       15.7    
> Consumer Goods & Services  
Other Consumer Services     25,313       6.2    
Nondurables     11,947       2.9    
Retail     3,839       0.9    
Casinos & Gaming     427       0.1    
      41,526       10.1    
> Other Industries  
Real Estate     16,218       4.0    
Transportation     12,445       3.0    
Regulated Utilities     10,807       2.6    
      39,470       9.6    
> Finance  
Brokerage & Money Management     14,145       3.4    
Banks     9,694       2.4    
      23,839       5.8    

 

    Value (000)   Percentage
of Net Assets		  
> Health Care  
Medical Equipment & Devices   $ 10,215       2.5    
Health Care Services     4,256       1.0    
Pharmaceuticals     3,448       0.8    
      17,919       4.3    
Total Equities:     383,290       93.3    
Exchange Traded Fund:     4,215       1.0    
Short-Term Obligations:     23,979       5.9    
Total Investments:     411,484       100.2    
Cash and Other Assets
Less Liabilities:		     (809 )     (0.2 )  
Net Assets:   $ 410,675       100.0    

 

See accompanying notes to financial statements.


58


Columbia Acorn Select

Major Portfolio Changes in the Fourth Quarter (Unaudited)

    Number of Shares  
    09/30/09   12/31/09  
Purchases  
Consumer Goods & Services  
Abercrombie & Fitch     750,000       1,650,000    
GLG Life Tech (Canada)     0       108,000    
ITT Educational Services     825,000       1,000,000    
Safeway     3,500,000       3,600,000    
Steelcase     2,612,994       3,000,000    
Information  
Globalstar     11,800,000       13,400,800    
VisionChina Media - ADR (China)     4,121,817       4,250,000    
WNS - ADR (India)     3,900,000       3,913,900    
Energy & Minerals  
Alange Energy (Colombia)     156,600       8,400,000    
Houston American Energy     0       1,050,000    
Cap-Link Ventures     0       17,144,000    
Cap-Link Ventures-Warrants     0       17,144,000    
Finance  
Discover Financial Services     1,350,000       2,050,000    
Industrial Goods & Services  
Ametek     675,000       750,000    

 

    Number of Shares  
    09/30/09   12/31/09  
Sales  
Consumer Goods & Services  
Career Education     1,300,000       977,000    
Gap     575,000       0    
Hertz     7,750,000       7,500,000    
NagaCorp (Hong Kong)     76,000,000       29,633,051    
SkillSoft - ADR     9,200,000       9,000,000    
Information  
American Tower     950,000       900,000    
CardTronics     3,430,343       2,620,000    
China Mass Media - ADR (China)     2,017,600       1,662,685    
Discovery Communications,
Series C		     1,125,000       400,000    
Hackett Group     1,334,442       1,000,000    
Novell     8,100,000       7,000,000    
Energy & Minerals  
FMC Technologies     600,000       0    
Synthesis Energy Systems
(China)		     2,500,000       2,200,000    
Tetra Technologies     6,400,000       5,000,000    
Uranium One (South Africa)     9,150,000       8,500,000    
Finance  
Conseco     14,900,000       13,500,000    
MF Global     5,800,000       5,500,000    
SEI Investments     1,250,000       1,100,000    
Industrial Goods & Services  
Donaldson     250,000       0    
Expeditors International
of Washington		     850,000       600,000    
Mobile Mini     750,000       117,328    
Quanta Services     2,300,000       1,950,000    

 

See accompanying notes to financial statements.


59


Columbia Acorn Select

Statement of Investments, December 31, 2009

Number of Shares     Value (000)  
              Equities: 92.2%    
Consumer Goods & Services 31.8%      
    > Educational Services 11.2%  
  1,000,000     ITT Educational Services (a)   $ 95,960    
        Post-secondary Degree Services        
  9,000,000     SkillSoft - ADR (a)(b)     94,320    
        Web-based Learning Solutions (E-Learning)        
  977,000     Career Education (a)     22,774    
        Post-secondary Education        
  950,000     Princeton Review (a)     3,857    
        College Preparation Courses        
      216,911    
    > Travel 8.0%  
  7,500,000     Hertz (a)     89,400    
        Largest U.S. Rental Car Operator        
  2,600,000     Expedia (a)     66,846    
        Online Travel Services Company        
      156,246    
    > Retail 6.9%  
  3,600,000     Safeway     76,644    
        Supermarkets        
  1,650,000     Abercrombie & Fitch     57,502    
        Teen Apparel Retailer        
      134,146    
    > Apparel 2.6%  
  1,400,000     Coach     51,142    
        Designer & Retailer of Branded
Leather Accessories		        
      51,142    
    > Casinos & Gaming 2.0%  
  325,000,000     RexLot Holdings (China)     36,280    
        Lottery Equipment Supplier in China        
  29,633,051     NagaCorp (Hong Kong)     3,274    
        Casino/Entertainment Complex in Cambodia        
      39,554    
    > Furniture & Textiles 1.0%  
  3,000,000     Steelcase     19,080    
        Office Furniture        
      19,080    
    > Food & Beverage 0.1%  
  108,000     GLG Life Tech (Canada) (a)     826    
        Produce an All-natural Sweetener Extracted
from the Stevia Plant		        
  17,500,000     Fu Ji Food & Catering Services
(China) (a)(c)		     181    
        Food Catering Service Provider in China        
      1,007    
Consumer Goods & Services: Total     618,086    
Information 22.4%      
    > Mobile Communications 6.6%  
  1,550,000     Crown Castle International (a)     60,512    
        Communications Towers        
  900,000     American Tower (a)     38,889    
        Communications Towers in USA &
Latin America		        

 

Number of Shares     Value (000)  
  505,000     SBA Communications (a)   $ 17,251    
        Communications Towers        
  13,400,800     Globalstar (a)(b)(d)     11,659    
        Satellite Mobile Voice & Data Carrier        
      128,311    
    > Contract Manufacturing 4.7%  
  8,200,000     Sanmina-SCI (a)(b)     90,446    
        Electronic Manufacturing Services        
      90,446    
    > Computer Services 3.2%  
  3,913,900     WNS - ADR (India) (a)(b)(d)     58,904    
        Offshore BPO (Business Process
Outsourcing) Services		        
  1,000,000     Hackett Group (a)     2,780    
        IT Integration & Best Practice Research        
      61,684    
    > Advertising 2.6%  
  4,250,000     VisionChina Media - ADR
(China) (a)(b)(d)		     46,410    
        Advertising on Digital Screens in China's
Mass Transit System		        
  1,662,685     China Mass Media - ADR
(China) (a)(b)(d)		     4,290    
        Media Planning Agency in China        
      50,700    
    > Computer Hardware & Related
Equipment 1.8%		  
  750,000     Amphenol     34,635    
        Electronic Connectors        
      34,635    
    > Business Software 1.5%  
  7,000,000     Novell (a)     29,050    
        Directory, Operating System & Identity
Management Software		        
      29,050    
    > Financial Processors 1.5%  
  2,620,000     CardTronics (a)(b)     29,003    
        Operates the World's Largest Network
of ATMs		        
      29,003    
    > CATV 0.5%  
  400,000     Discovery Communications,
Series C (a)		     10,608    
        CATV Programming        
      10,608    
Information: Total     434,437    
Energy & Minerals 15.7%      
    > Oil & Gas Producers 8.5%  
  4,966,666     Pacific Rubiales Energy
(Canada) (a)(e)		     73,004    
  1,483,334     Pacific Rubiales Energy
(Canada) (a)		     21,913    
        Oil Production & Exploration in Colombia        
  32,240,000     Canacol Energy (Canada) (a)(b)(e)     18,835    
        Oil Producer in South America        

 

See accompanying notes to financial statements.


60


Number of Shares     Value (000)  
    > Oil & Gas Producers—continued  
  2,500,000     Gran Tierra Energy (Canada) (a)   $ 14,342    
        Oil Exploration & Production in Colombia,
Peru & Argentina		        
  17,144,000     Cap-Link Ventures (a)(e)     7,213    
  17,144,000     Cap-Link Ventures-Warrants (a)(e)     4,590    
        Oil & Gas Exploration & Production in
Colombia, Peru & Paraguay		        
  25,883,000     ShaMaran Petroleum
(Canada) (a)(b)(e)		     10,691    
  5,117,000     ShaMaran Petroleum
(Canada) (a)(b)		     2,202    
        Oil Exploration in Kurdistan        
  1,050,000     Houston American Energy     6,468    
        Oil & Gas Exploration/Production in Colombia        
  8,400,000     Alange Energy (Colombia) (a)     5,060    
        Oil & Gas Exploration/Production
in Colombia		        
      164,318    
    > Alternative Energy 3.1%  
  1,900,000     Canadian Solar (China) (a)(d)     54,758    
        Solar Cell & Module Manufacturer        
  1,400,000     Real Goods Solar (a)(b)     4,410    
        Residential Solar Energy Installer        
  2,200,000     Synthesis Energy Systems
(China) (a)		     2,041    
        Owner/Operator of Gasification Plants        
      61,209    
    > Oil Services 2.8%  
  5,000,000     Tetra Technologies (a)(b)     55,400    
        U.S.-based Services Company with Life of
Field Approach		        
      55,400    
    > Mining 1.3%  
  8,500,000     Uranium One (South Africa) (a)     24,545    
        Uranium Mines in Kazakhstan, the
U.S. & Australia		        
      24,545    
Energy & Minerals: Total     305,472    
Finance 10.0%      
    > Brokerage & Money Management 5.0%  
  1,300,000     Eaton Vance     39,533    
        Specialty Mutual Funds        
  5,500,000     MF Global (a)     38,225    
        Futures Broker        
  1,100,000     SEI Investments     19,272    
        Mutual Fund Administration &
Investment Management		        
      97,030    
    > Insurance 3.5%  
  13,500,000     Conseco (a)(b)     67,500    
        Life, Long-term Care & Medical
Supplement Insurance		        
      67,500    

 

Number of Shares     Value (000)  
    > Credit Cards 1.5%  
  2,050,000     Discover Financial Services   $ 30,156    
        Credit Card Company        
      30,156    
Finance: Total     194,686    
Industrial Goods & Services 9.1%      
    > Waste Management 2.6%  
  1,500,000     Waste Management     50,715    
        U.S. Garbage Collection & Disposal        
      50,715    
    > Outsourcing Services 2.1%  
  1,950,000     Quanta Services (a)     40,638    
        Electrical & Telecom Construction Services        
      40,638    
    > Machinery 1.5%  
  750,000     Ametek     28,680    
        Aerospace/Industrial Instruments        
      28,680    
    > Industrial Materials & Specialty
Chemicals 1.3%		  
  1,000,000     Nalco Holding Company     25,510    
        Provider of Water Treatment & Process
Chemicals & Services		        
  18,263     ChemSpec International - ADR
(China) (a)		     120    
        Specialty Chemicals with Focus on
Fluorinated Chemical Manufacturing		        
      25,630    
    > Other Industrial Services 1.2%  
  600,000     Expeditors International
of Washington		     20,838    
        International Freight Forwarder        
  117,328     Mobile Mini (a)     1,653    
        Portable Storage Units Leasing        
      22,491    
    > Industrial Distribution 0.4%  
  90,000     WW Grainger     8,715    
        Industrial Distribution        
      8,715    
Industrial Goods & Services: Total     176,869    
Other Industries 3.2%      
    > Transportation 3.2%  
  1,300,000     JB Hunt Transport Services     41,951    
        Truck & Intermodal Carrier        
  1,125,000     American Commercial Lines (a)(b)     20,621    
        Operator of Inland Barges/Builder of
Barges & Vessels		        
      62,572    
Other Industries: Total     62,572    

 

See accompanying notes to financial statements.


61


Columbia Acorn Select

Statement of Investments, continued

Number of Shares
or Principal Amount (000)		     Value (000)  
Health Care —%      
    > Health Care Services —%  
  27,500     Emdeon (a)   $ 419    
        Revenue & Payment Cycle Management        
      419    
Health Care: Total     419    
Total Equities: 92.2%
(Cost: $1,551,056)		     1,792,541    
Securities Lending Collateral: 0.2%      
  3,884,667     Dreyfus Government Cash
Management Fund
(7 day yield of 0.000%) (f)		     3,885    
Total Securities Lending Collateral:
(Cost: $3,885)		     3,885    
Short-Term Obligations: 8.0%      
    > Repurchase Agreement 7.5%  
$ 146,852     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Treasury obligation,
maturing 4/01/10,
market value $149,790
(repurchase proceeds $146,852)		     146,852    
      146,852    
    > Commercial Paper 0.5%  
  9,300     Toyota Motor Credit
0.16% due 1/04/10		     9,300    
      9,300    
Total Short-Term Obligations:
(Amortized Cost: $156,152)		     156,152    
Total Investments: 100.4%
(Cost: $1,711,093)(g)		     1,952,578    
Obligation to Return Collateral for
Securities Loaned: (0.2)%		     (3,885 )  
Cash and Other Assets Less Liabilities: (0.2)%     (3,848 )  
Total Net Assets: 100.0%   $ 1,944,845    

 

ADR = American Depositary Receipts.

See accompanying notes to financial statements.


62


> Notes to Statement of Investments (dollar values in thousands)

(a)  Non-income producing security.

(b)  An affiliated person of the Fund may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in affiliated companies during the twelve months ended December 31, 2009, are as follows:

Affiliates   Balance of
Shares Held
12/31/08		   Purchases/
Additions		   Sales/
Reductions		   Balance of
Shares Held
12/31/09		   Value   Dividend  
American Commercial Lines     3,803,849       696,151       3,375,000 **     1,125,000     $ 20,621     $ -    
Canacol Energy     -       32,240,000       -       32,240,000       18,835            
Canadian Solar*     1,825,000       400,000       325,000       1,900,000       54,758       -    
CardTronics     3,560,000       140,000       1,080,000       2,620,000       29,003       -    
China Mass Media - ADR     2,350,000       -       687,315       1,662,685       4,290       -    
Conseco     14,950,000       -       1,450,000       13,500,000       67,500       -    
Globalstar     10,000,000       4,600,800       1,200,000       13,400,800       11,659       -    
Real Goods Solar     1,500,000       -       100,000       1,400,000       4,410       -    
Sanmina-SCI     50,200,000       -       42,000,000 ***     8,200,000       90,446       -    
ShaMaran Petroleum     -       31,000,000       -       31,000,000       12,893            
SkillSoft - ADR     9,500,000       -       500,000       9,000,000       94,320       -    
Synthesis Energy Systems*     2,800,000       -       600,000       2,200,000       2,041       -    
Tetra Technologies     6,150,000       1,050,000       2,200,000       5,000,000       55,400       -    
VisionChina Media - ADR     3,118,900       1,131,100       -       4,250,000       46,410            
WNS - ADR     3,100,000       859,975       46,075       3,913,900       58,904       -    
Total of Affiliated Transactions     112,857,749       72,118,026       53,563,390       131,412,385     $ 571,490     $ -    

 

*  At December 31, 2009, the Fund owned less than five percent of the company's outstanding voting shares.

**  Includes the effect of a 1:4 reverse stock split.

***  Includes the effect of a 1:6 reverse stock split.

  The aggregate cost and value of these companies at December 31, 2009, were $705,100 and $571,490, respectively. Investments in affiliated companies represented 29.4% of total net assets at December 31, 2009.

(c)  Illiquid security.

(d)  All or a portion of this security was on loan at December 31, 2009. The total market value of Fund securities on loan at December 31, 2009 was $3,749.

(e)  Denotes a restricted security, which is subject to restrictions on resale under federal securities laws. These securities are valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. At December 31, 2009, the market value of these securities amounted to $114,333, which represented 5.88% of total net assets.

  Additional information on these securities is as follows:

Security   Acquisition
Dates		   Shares   Cost   Value  
Canacol Energy   9/23/09     32,240,000     $ 8,397     $ 18,835    
Pacific Rubiales Energy   7/12/07     4,966,666       19,942       73,004    
Cap-Link Ventures   11/20/09     17,144,000       3,499       7,213    
Cap-Link Ventures-Warrants   11/20/09     17,144,000       2,226       4,590    
ShaMaran Petroleum   9/15/09     25,883,000       18,117       10,691    
                $ 52,181     $ 114,333    

 

(f)  Investment made with cash collateral received from securities lending activity.

(g)  At December 31, 2009, for federal income tax purposes, the cost of investments was $1,729,836 and net unrealized appreciation was $222,742, consisting of gross unrealized appreciation of $585,007 and gross unrealized depreciation of $362,265.

See accompanying notes to financial statements.


63


Columbia Acorn Select

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Equities  
Consumer Goods & Services   $ 578,351     $ 39,554     $ 181     $ 618,086    
Information     434,437       -       -       434,437    
Energy & Minerals     191,139       114,333       -       305,472    
Finance     194,686       -       -       194,686    
Industrial Goods & Services     176,869       -       -       176,869    
Other Industries     62,572       -       -       62,572    
Health Care     419       -       -       419    
Total Equities     1,638,473       153,887       181       1,792,541    
Total Securities Lending Collateral     3,885       -       -       3,885    
Total Short-Term Obligations     -       156,152       -       156,152    
Total Investments   $ 1,642,358     $ 310,039     $ 181     $ 1,952,578    

 

  The Fund's assets assigned to the Level 2 input category include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.

  The following table reconciles asset balances for the twelve-month period ending December 31, 2009, in which significant unobservable inputs (Level 3) were used in determining value:

Investments
in Securities		   Balance
as of
December 31,
2008		   Accrued
Discounts/
Premiums		   Realized
Gain/(Loss)		   Change in
Unrealized
Appreciation
(Depreciation)		   Net
Purchases
(Sales)		   Net
Transfers
into
(out of)
Level 3		   Balance
as of
December 31,
2009		  
Equities  
Consumer Goods & Services   $ -     $ -     $ -     $ (14,925 )   $ -     $ 15,106     $ 181    
    $ -     $ -     $ -     $ (14,925 )   $ -     $ 15,106     $ 181    

 

  The information in the above reconciliation table represents fiscal year to date activity for any securities identified as using Level 3 inputs during the current fiscal period.

  The change in unrealized appreciation (depreciation) attributed to securities owned at December 31, 2009, which were valued using significant unobservable inputs (Level 3) amounted to $(14,925). This amount is included in net change in unrealized depreciation on the Statements of Changes in Net Assets.

  For more information on valuation inputs, and their aggregation into the levels used in the tables above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


64


Columbia Thermostat Fund

Statement of Investments, December 31, 2009

Number of Shares
or Principal Amount (000)		     Value (000)  
    > Stock Funds: 85.0%  
  2,728,249     Columbia Large Cap Enhanced
Core Fund, Class Z		   $ 29,383    
  1,982,660     Columbia Dividend Income Fund,
Class Z		     23,495    
  720,997     Columbia Acorn Fund, Class Z     17,794    
  1,018,204     Columbia Marsico Growth
Fund, Class Z		     17,605    
  513,283     Columbia Acorn International,
Class Z		     17,585    
  510,373     Columbia Acorn Select, Class Z     11,932    
Total Stock Funds (Cost: $119,130)     117,794    
    > Bond Funds: 14.5%  
  1,148,436     Columbia Intermediate Bond Fund,
Class Z		     10,095    
  535,341     Columbia U.S. Treasury Index
Fund, Class Z		     5,932    
  551,500     Columbia Conservative High Yield
Fund, Class Z		     4,125    
Total Bond Funds (Cost: $19,764)     20,152    
Short-Term Obligation: 0.6%      
    > Repurchase Agreement: 0.6%  
$ 787     Repurchase Agreement with
Fixed Income Clearing Corp.,
dated 12/31/09, due 1/04/10
at 0.00%, collateralized by a
U.S. Government Agency
obligation, maturing 9/17/10,
market value $806
(repurchase proceeds $787)		     787    
Total Short-Term Obligation
(Cost: $787)		     787    
Total Investments: 100.1%
(Cost: $139,681)(a)		     138,733    
Cash and Other Assets Less Liabilities: (0.1)%     (144 )  
Total Net Assets: 100.0%   $ 138,589    

 

See accompanying notes to financial statements.


65


Columbia Thermostat Fund

Statement of Investments, continued

> Notes to Statement of Investments (dollar values in thousands)

(a)  At December 31, 2009, for federal income tax purposes, the cost of investments was $140,157 and net unrealized depreciation was $1,424, consisting of gross unrealized appreciation of $8,876 and gross unrealized depreciation of $10,300.

  The following table summarizes the inputs used, as of December 31, 2009, in valuing the Fund's assets:

Investment Type   Quoted Prices
(Level 1)		   Other
Significant
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Total  
Total Stock Funds   $ 117,794     $ -     $ -     $ 117,794    
Total Bond Funds     20,152       -       -       20,152    
Total Short-Term Obligation     -       787       -       787    
Total Investments   $ 137,946     $ 787     $ -     $ 138,733    

 

  For more information on valuation inputs, and their aggregation into the levels used in the table above, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

See accompanying notes to financial statements.


66



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67


Columbia Acorn Family of Funds

Statements of Assets and Liabilities

December 31, 2009   Columbia
Acorn
Fund		   Columbia
Acorn
International		   Columbia
Acorn
USA		   Columbia
Acorn
International
Select		   Columbia
Acorn
Select		   Columbia
Thermostat
Fund		  
(in thousands)  
Assets:  
Unaffiliated investments, at cost   $ 7,848,115     $ 3,281,798     $ 1,111,049     $ 329,798     $ 1,005,993     $ 787    
Affiliated investments, at cost
(See Note 4)		     3,167,879       77,410       16,520       —       705,100       138,894    
Unaffiliated investments, at value (including
securities on loan: Columbia Acorn Fund
$175,896; Columbia Acorn International
$25,743; Columbia Acorn USA $16,200;
Columbia Acorn International Select $–;
Columbia Acorn Select $3,749; Columbia
Thermostat Fund $–)		   $ 11,210,831     $ 4,300,923     $ 1,398,951     $ 411,484     $ 1,381,088     $ 787    
Affiliated investments, at value
(See Note 4)		     3,750,852       114,524       13,727       —       571,490       137,946    
Cash     34       —       — *     —       —       1    
Foreign currency (cost: Columbia
Acorn Fund $3,308;
Columbia Acorn International $29,329;
Columbia Acorn International
Select $25; Columbia Acorn Select $113)		     3,453       29,594       —       25       113       —    
Net unrealized appreciation on forward
foreign currency exchange contracts		     —       6,689       —       —       —       —    
Receivable for:  
Investments sold     19,206       8,744       6,072       5       178       273    
Fund shares sold     14,294       8,161       604       769       2,479       93    
Dividends and interest     7,667       4,939       649       368       892       —    
Securities lending income     89       27       10       —       4       —    
Foreign tax reclaims     166       1,030       —       16       —       —    
Trustees' Deferred Compensation Investments     3,145       876       244       —       288       —    
Other assets     92       25       8       3       11       1    
Total Assets     15,009,829       4,475,532       1,420,265       412,670       1,956,543       139,101    
Liabilities:  
Payable to custodian bank     —       9       —       — *     4       —    
Collateral on securities loaned     183,434       26,644       16,749       —       3,885       —    
Expense reimbursement due to Advisor     —       —       —       — *     —       6    
Net unrealized depreciation on forward
foreign currency exchange contracts		     —       4,205       —       —       —       —    
Payable for:  
Investments purchased     44,749       4,766       1,144       189       48       —    
Fund shares redeemed     37,841       2,725       11,007       1,259       5,221       327    
Management fee     7,895       2,855       999       327       1,321       12    
Administration fee     502       152       47       14       66       5    
12b-1 Service & Distribution fees     1,567       217       78       25       242       48    
Reports to shareholders     785       327       108       46       191       41    
Deferred Trustees' fees     3,145       876       244       44       288       28    
Transfer agent fees     2,095       405       230       37       329       30    
Trustees' fees     — *     — *     2       — *     — *     — *  
Custody fees     181       289       5       22       50       —    
Chief compliance officer expenses     27       8       2       1       4       — *  
Foreign capital gains tax     200       1,217       —       —       —       —    
Other liabilities     257       99       41       31       49       15    
Total Liabilities     282,678       44,794       30,656       1,995       11,698       512    
Net Assets   $ 14,727,151     $ 4,430,738     $ 1,389,609     $ 410,675     $ 1,944,845     $ 138,589    
Composition of Net Assets:  
Paid in capital   $ 11,247,302     $ 3,962,215     $ 1,228,860     $ 405,974     $ 1,850,202     $ 166,320    
Undistributed/(overdistributed)
net investment income
(Accumulated net investment loss)		     (20,794 )     39,113       (275 )     1,978       (8,359 )     1,247    
Accumulated net realized gain/(loss)     (444,982 )     (628,257 )     (124,085 )     (78,954 )     (138,483 )     (28,030 )  
Net unrealized appreciation/(depreciation) on:  
Investments     3,945,689       1,056,239       285,109       81,686       241,485       (948 )  
Foreign capital gains tax     (200 )     (1,217 )     —       —       —       —    
Foreign currency translations     136       2,645       —       (9 )     — *     —    
Net Assets   $ 14,727,151     $ 4,430,738     $ 1,389,609     $ 410,675     $ 1,944,845     $ 138,589    
Net asset value per
share – Class A (a)		   $ 23.98     $ 34.13     $ 22.43     $ 23.39     $ 22.81     $ 10.90    
(Net assets/shares)     ($2,937,761/122,497)       ($578,599/16,955)       ($178,605/7,962)       ($64,664/2,764)       ($522,443/22,908)       ($42,976/3,943)    
Maximum offering price per
share – Class A (b)		   $ 25.44     $ 36.21     $ 23.80     $ 24.82     $ 24.20     $ 11.56    
(Net asset value per share/front-
end sales charge)		     ($23.98/0.9425)       ($34.13/0.9425)       ($22.43/0.9425)       ($23.39/0.9425)       ($22.81/0.9425)       ($10.90/0.9425)    
Net asset value and offering price
per share – Class B (a)		   $ 22.43     $ 33.22     $ 20.99     $ 22.34     $ 21.41     $ 10.93    
(Net assets/shares)     ($525,072/23,411)       ($38,835/1,169)       ($20,903/996)       ($3,887/174)       ($88,004/4,111)       ($32,758/2,997)    
Net asset value and offering price
per share – Class C (a)		   $ 22.23     $ 33.08     $ 20.84     $ 22.21     $ 21.25     $ 10.91    
(Net assets/shares)     ($736,818/33,142)       ($85,625/2,588)       ($32,508/1,560)       ($11,096/500)       ($93,121/4,382)       ($21,090/1,933)    
Net asset value and offering price
per share – Class Z (c)		   $ 24.68     $ 34.26     $ 23.19     $ 23.64     $ 23.38     $ 10.80    
(Net assets/shares)     ($10,527,500/426,515)       ($3,727,679/108,818)       ($1,157,593/49,909)       ($331,028/14,003)       ($1,241,277/53,093)       ($41,765/3,866)    

 

(a)  Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge and redemption fee.

(b)  On sales of $50,000 or more the offering price is reduced.

(c)  Redemption price per share is equal to net asset value less any applicable redemption fee.

*  Rounds to less than $500.

See accompanying notes to financial statements.


68


Columbia Acorn Family of Funds

Statements of Operations
For the Year Ended December 31, 2009

(in thousands)   Columbia
Acorn
Fund		   Columbia
Acorn
International		   Columbia
Acorn
USA		   Columbia
Acorn
International
Select		   Columbia
Acorn
Select		   Columbia
Thermostat
Fund		  
Investment Income:  
Dividend income   $ 97,974     $ 78,907     $ 7,290     $ 7,141     $ 7,661     $ —    
Dividend income from affiliates
(See Note 4)		     17,346       3,000       —       —       —       —    
Dividends from affiliated investment
company shares (See Note 4)		     —       —       —       —       —       2,149    
Interest income     459       149       23       16       68       — *  
Securitites lending income     957       174       139       1       282       —    
      116,736       82,230       7,452       7,158       8,011       2,149    
Foreign taxes withheld     (1,865 )     (6,487 )     (5 )     (521 )     —       —    
Total Investment Income     114,871       75,743       7,447       6,637       8,011       2,149    
Expenses:  
Management fee     77,909       26,444       9,677       3,039       12,761       128    
Administration fee     5,179       1,459       477       138       666       55    
12b-1 Service and Distribution fees:  
Class A     6,042       1,076       372       137       1,086       99    
Class B     3,969       279       162       29       581       245    
Class C     6,373       676       269       98       769       204    
Transfer agent fees:  
Class A     1,927       681       135       81       434       77    
Class B     1,309       122       62       15       241       77    
Class C     950       149       39       25       147       44    
Class Z     2,857       1,241       446       87       446       17    
Custody fees     921       2,572       51       213       297       —    
Trustees' fees     922       260       85       34       119       17    
Reports to shareholders     2,065       909       328       167       478       121    
Chief compliance officer expenses
(See Note 4)		     525       142       48       13       66       5    
Other expenses     1,431       504       223       168       292       106    
Total expenses     112,379       36,514       12,374       4,244       18,383       1,195    
Less custody fees paid indirectly     — *     — *     — *     — *     — *     — *  
Less reimbursement of expenses by
Investment Advisor		     —       —       —       (5 )     —       (327 )  
Net Expenses     112,379       36,514       12,374       4,239       18,383       868    
Net Investment Income/(Loss)     2,492       39,229       (4,927 )     2,398       (10,372 )     1,281    
Net Realized and Unrealized Gain (Loss)
on Portfolio Positions:		  
Net realized gain/(loss) on:  
Unaffiliated investments     (227,130 )     (248,697 )     (20,041 )     (31,361 )     31,100       —    
Affiliated investments (See Note 4)     (100,539 )     (3,829 )     (110 )     —       (71,935 )     (18,232 )  
Foreign currency transactions and
forward foreign currency  
exchange contracts		     (229 )     4,140       —       (46 )     589       —    
Foreign capital gains tax     —       (1,789 )     —       —       —       —    
Distributions from affiliated investment
company shares		     —       —       —       —       —       1    
Net realized loss     (327,898 )     (250,175 )     (20,151 )     (31,407 )     (40,246 )     (18,231 )  
Net change in net unrealized
appreciation/(depreciation) on:		  
Unaffiliated investments     3,343,556       1,554,069       437,114       127,658       521,773       —    
Affiliated investments (See Note 4)     1,143,521       49,345       1,994       —       316,510       51,494    
Foreign currency translations and
forward foreign currency  
exchange contracts		     134       6,043       —       (25 )     (3 )     —    
Foreign capital gains tax     (200 )     (1,217 )     —       —       —       —    
Net change in unrealized appreciation/
(depreciation)		     4,487,011       1,608,240       439,108       127,633       838,280       51,494    
Net realized and unrealized gain     4,159,113       1,358,065       418,957       96,226       798,034       33,263    
Net Increase in Net Assets resulting
from Operations		   $ 4,161,605     $ 1,397,294     $ 414,030     $ 98,624     $ 787,662     $ 34,544    

 

*  Rounds to less than $500.

See accompanying notes to financial statements.


69


Columbia Acorn Family of Funds

Statements of Changes in Net Assets

    Columbia
Acorn Fund		   Columbia Acorn
International		   Columbia
Acorn USA		  
Increase (Decrease) in Net Assets   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008 (a)   2009   2008 (a)   2009   2008 (a)  
Operations:  
Net investment income/(loss)   $ 2,492     $ 12,367     $ 39,229     $ 76,400     $ (4,927 )   $ (5,465 )  
Net realized gain/(loss) on investments, foreign currency
transactions, forward foreign currency exchange contracts and
foreign capital gains tax		     (227,359 )     234,120       (246,346 )     (283,342 )     (20,041 )     (102,173 )  
Net realized gain/(loss) on affiliated investments and distributions
from affiliated investment companies and affiliated investment
company shares		     (100,539 )     (245,832 )     (3,829 )     (95,523 )     (110 )     —    
Net change in net unrealized appreciation/(depreciation) on
investments, foreign currency translations, forward foreign
currency exchange contracts and foreign capital gains tax		     3,343,490       (5,424,645 )     1,558,895       (2,403,427 )     437,114       (492,195 )  
Net change in net unrealized appreciation/(depreciation)
on affiliated investment companies and affiliated investment
company shares		     1,143,521       (1,918,721 )     49,345       337       1,994       (3,773 )  
Net Increase/(Decrease) from Operations     4,161,605       (7,342,711 )     1,397,294       (2,705,555 )     414,030       (603,606 )  
Distributions to Shareholders From:  
Net investment income – Class A     —       —       (6,102 )     (1,020 )     —       —    
Net realized gain – Class A     —       (91,100 )     —       (9,807 )     —       (8,248 )  
Net investment income – Class B     —       —       (290 )     — *     —       —    
Net realized gain – Class B     —       (26,893 )     —       (1,332 )     —       (1,748 )  
Net investment income – Class C     —       —       (348 )     — *     —       —    
Net realized gain – Class C     —       (28,315 )     —       (2,146 )     —       (1,740 )  
Net investment income – Class Z     (20,981 )     (6,088 )     (53,467 )     (23,593 )     —       —    
Net realized gain – Class Z     —       (284,695 )     —       (68,973 )     —       (41,787 )  
Total Distributions to Shareholders     (20,981 )     (437,091 )     (60,207 )     (106,871 )     —       (53,523 )  
Share Transactions:  
Subscriptions – Class A     639,685       612,669       181,444       277,346       54,531       53,928    
Distributions reinvested – Class A     —       83,711       5,737       9,979       —       7,538    
Redemptions – Class A     (744,769 )     (1,151,023 )     (140,626 )     (207,715 )     (66,724 )     (69,749 )  
Net Increase/(Decrease) – Class A     (105,084 )     (454,643 )     46,555       79,610       (12,193 )     (8,283 )  
Subscriptions – Class B     100       1,991       14       1,704       5       71    
Distributions reinvested – Class B     —       24,675       264       1,209       —       1,615    
Redemptions – Class B     (224,032 )     (255,304 )     (14,833 )     (23,974 )     (9,892 )     (11,765 )  
Net Decrease – Class B     (223,932 )     (228,638 )     (14,555 )     (21,061 )     (9,887 )     (10,079 )  
Subscriptions – Class C     58,069       62,517       14,494       20,234       2,513       3,931    
Distributions reinvested – Class C     —       22,379       265       1,596       —       1,523    
Redemptions – Class C     (151,419 )     (287,537 )     (18,021 )     (43,103 )     (5,210 )     (10,090 )  
Net Increase/(Decrease) – Class C     (93,350 )     (202,641 )     (3,262 )     (21,273 )     (2,697 )     (4,636 )  
Subscriptions – Class Z     1,484,719       1,526,416       671,256       664,727       246,578       213,395    
Distributions reinvested – Class Z     17,690       251,789       38,426       64,910       —       37,687    
Redemptions – Class Z     (1,364,770 )     (2,162,613 )     (486,805 )     (912,602 )     (190,623 )     (190,501 )  
Net Increase/(Decrease) – Class Z     137,639       (384,408 )     222,877       (182,965 )     55,955       60,581    
Net Increase/(Decrease) from Share Transactions     (284,727 )     (1,270,330 )     251,615       (145,689 )     31,178       37,583    
Redemption Fees     —       —       259       354       —       —    
Increase from regulatory settlements (See Note 9)     40       —       1,210       —       5       —    
Total Increase/(Decrease) in Net Assets     3,855,937       (9,050,132 )     1,590,171       (2,957,761 )     445,213       (619,546 )  
Net Assets:  
Beginning of period     10,871,214       19,921,346       2,840,567       5,798,328       944,396       1,563,942    
End of period   $ 14,727,151     $ 10,871,214     $ 4,430,738     $ 2,840,567     $ 1,389,609     $ 944,396    
Undistributed/(Overdistributed) Net Investment Income or
(Accumulated Net Investment Loss)		   $ (20,794 )   $ (2,116 )   $ 39,113     $ 57,491     $ (275 )   $ (157 )  

 

(a)  Certain items in the prior year financial statements were reclassified to conform to the current year's presentation. Such reclassifications had no effect on net income or net assets.

*  Rounds to less than $500.

See accompanying notes to financial statements.


70


    Columbia Acorn
International Select		   Columbia
Acorn Select		   Columbia
Thermostat Fund		  
Increase (Decrease) in Net Assets   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008   2009   2008 (a)   2009   2008  
Operations:  
Net investment income/(loss)   $ 2,398     $ 2,451     $ (10,372 )   $ (17,307 )   $ 1,281     $ 3,146    
Net realized gain/(loss) on investments, foreign currency
transactions, forward foreign currency exchange contracts and
foreign capital gains tax		     (31,407 )     (46,780 )     31,689       (71,830 )     —       —    
Net realized gain/(loss) on affiliated investments and distributions
from affiliated investment companies and affiliated investment
company shares		     —       —       (71,935 )     (15,794 )     (18,231 )     (9,015 )  
Net change in net unrealized appreciation/(depreciation) on
investments, foreign currency translations, forward foreign
currency exchange contracts and foreign capital gains tax		     127,633       (101,043 )     521,770       (965,213 )     —       —    
Net change in net unrealized appreciation/(depreciation)
on affiliated investment companies and affiliated investment
company shares		     —       —       316,510       (365,076 )     51,494       (58,979 )  
Net Increase/(Decrease) from Operations     98,624       (145,372 )     787,662       (1,435,220 )     34,544       (64,848 )  
Distributions to Shareholders From:  
Net investment income – Class A     (456 )     —       —       —       (7 )     (1,051 )  
Net realized gain – Class A     —       (984 )     —       (25,410 )     —       (337 )  
Net investment income – Class B     —       —       —       —       —       (657 )  
Net realized gain – Class B     —       (189 )     —       (4,641 )     —       (371 )  
Net investment income – Class C     —       —       —       —       —       (361 )  
Net realized gain – Class C     —       (288 )     —       (4,551 )     —       (201 )  
Net investment income – Class Z     (3,077 )     (280 )     —       —       (115 )     (1,140 )  
Net realized gain – Class Z     —       (3,600 )     —       (39,523 )     —       (301 )  
Total Distributions to Shareholders     (3,533 )     (5,341 )     —       (74,125 )     (122 )     (4,419 )  
Share Transactions:  
Subscriptions – Class A     30,670       47,637       98,691       131,376       5,619       21,460    
Distributions reinvested – Class A     439       901       —       23,381       6       1,269    
Redemptions – Class A     (28,558 )     (21,936 )     (190,444 )     (377,780 )     (14,381 )     (14,939 )  
Net Increase/(Decrease) – Class A     2,551       26,602       (91,753 )     (223,023 )     (8,756 )     7,790    
Subscriptions – Class B     —       271       39       388       —       2,089    
Distributions reinvested – Class B     —       170       —       4,147       —       943    
Redemptions – Class B     (1,493 )     (3,345 )     (23,638 )     (41,288 )     (12,541 )     (14,056 )  
Net Decrease – Class B     (1,493 )     (2,904 )     (23,599 )     (36,753 )     (12,541 )     (11,024 )  
Subscriptions – Class C     1,872       7,847       6,147       8,177       1,960       17,881    
Distributions reinvested – Class C     —       248       —       3,639       —       510    
Redemptions – Class C     (3,109 )     (4,044 )     (21,888 )     (51,407 )     (10,176 )     (8,717 )  
Net Increase/(Decrease) – Class C     (1,237 )     4,051       (15,741 )     (39,591 )     (8,216 )     9,674    
Subscriptions – Class Z     127,520       175,091       278,829       387,091       2,684       23,041    
Distributions reinvested – Class Z     833       1,768       —       29,748       106       1,339    
Redemptions – Class Z     (59,794 )     (84,177 )     (310,353 )     (373,486 )     (6,183 )     (8,008 )  
Net Increase/(Decrease) – Class Z     68,559       92,682       (31,524 )     43,353       (3,393 )     16,372    
Net Increase/(Decrease) from Share Transactions     68,380       120,431       (162,617 )     (256,014 )     (32,906 )     22,812    
Redemption Fees     33       171       —       —       —       —    
Increase from regulatory settlements (See Note 9)     265       —       —       —       —       —    
Total Increase/(Decrease) in Net Assets     163,769       (30,111 )     625,045       (1,765,359 )     1,516       (46,455 )  
Net Assets:  
Beginning of period     246,906       277,017       1,319,800       3,085,159       137,073       183,528    
End of period   $ 410,675     $ 246,906     $ 1,944,845     $ 1,319,800     $ 138,589     $ 137,073    
Undistributed/(Overdistributed) Net Investment Income or
(Accumulated Net Investment Loss)		   $ 1,978     $ 2,875     $ (8,359 )   $ (180 )   $ 1,247     $ 88    

 

See accompanying notes to financial statements.


71


Columbia Acorn Family of Funds

Statements of Changes in Net Assets, continued

    Columbia
Acorn Fund		   Columbia Acorn
International		   Columbia
Acorn USA		  
Changes in Shares of Beneficial Interest:   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008   2009   2008   2009   2008  
Subscriptions – Class A     33,142       26,521       6,366       8,030       3,208       2,597    
Shares issued in reinvestment and capital gains – Class A     —       3,428       208       248       —       302    
Less shares redeemed – Class A     (39,655 )     (49,918 )     (5,549 )     (6,693 )     (3,839 )     (3,306 )  
Net Increase/(Decrease) – Class A     (6,513 )     (19,969 )     1,025       1,585       (631 )     (407 )  
Subscriptions – Class B     5       80       — *     44       — *     3    
Shares issued in reinvestment and capital gains – Class B     —       1,065       10       30       —       68    
Less shares redeemed – Class B     (12,472 )     (11,645 )     (588 )     (768 )     (582 )     (573 )  
Net Decrease – Class B     (12,467 )     (10,500 )     (578 )     (694 )     (582 )     (502 )  
Subscriptions – Class C     3,215       3,082       497       569       148       219    
Shares issued in reinvestment and capital gains – Class C     —       975       10       41       —       65    
Less shares redeemed – Class C     (8,764 )     (13,528 )     (740 )     (1,414 )     (327 )     (514 )  
Net Increase/(Decrease) – Class C     (5,549 )     (9,471 )     (233 )     (804 )     (179 )     (230 )  
Subscriptions – Class Z     75,517       63,561       23,146       19,040       14,152       9,874    
Shares issued in reinvestment and capital gains – Class Z     750       10,170       1,391       1,609       —       1,466    
Less shares redeemed – Class Z     (70,272 )     (93,561 )     (18,261 )     (30,912 )     (10,509 )     (8,493 )  
Net Increase/(Decrease) – Class Z     5,995       (19,830 )     6,276       (10,263 )     3,643       2,847    
Net Increase/(Decrease) in Shares of Beneficial Interest     (18,534 )     (59,770 )     6,490       (10,176 )     2,251       1,708    

 

*  Rounds to less than 500.

See accompanying notes to financial statements.


72


    Columbia Acorn
International Select		   Columbia
Acorn Select		   Columbia
Thermostat Fund		  
Changes in Shares of Beneficial Interest:   Year ended December 31,   Year ended December 31,   Year ended December 31,  
(in thousands)   2009   2008   2009   2008   2009   2008  
Subscriptions – Class A     1,653       1,986       5,917       6,192       646       1,952    
Shares issued in reinvestment and capital gains – Class A     22       30       —       901       1       147    
Less shares redeemed – Class A     (1,497 )     (959 )     (11,758 )     (18,425 )     (1,674 )     (1,454 )  
Net Increase/(Decrease) – Class A     178       1,057       (5,841 )     (11,332 )     (1,027 )     645    
Subscriptions – Class B     —       10       2       16       —       176    
Shares issued in reinvestment and capital gains – Class B     —       6       —       168       —       104    
Less shares redeemed – Class B     (85 )     (149 )     (1,512 )     (2,059 )     (1,410 )     (1,344 )  
Net Decrease – Class B     (85 )     (133 )     (1,510 )     (1,875 )     (1,410 )     (1,064 )  
Subscriptions – Class C     103       317       371       469       212       1,558    
Shares issued in reinvestment and capital gains – Class C     —       9       —       148       —       56    
Less shares redeemed – Class C     (174 )     (183 )     (1,474 )     (2,581 )     (1,207 )     (861 )  
Net Increase/(Decrease) – Class C     (71 )     143       (1,103 )     (1,964 )     (995 )     753    
Subscriptions – Class Z     6,808       7,667       15,845       17,670       307       1,994    
Shares issued in reinvestment and capital gains – Class Z     42       58       —       1,123       12       153    
Less shares redeemed – Class Z     (3,083 )     (3,845 )     (18,178 )     (18,669 )     (727 )     (783 )  
Net Increase/(Decrease) – Class Z     3,767       3,880       (2,333 )     124       (408 )     1,364    
Net Increase/(Decrease) in Shares of Beneficial Interest     3,789       4,947       (10,787 )     (15,047 )     (3,840 )     1,698    

 

See accompanying notes to financial statements.


73



Columbia Acorn Family of Funds

Financial Highlights

Columbia Acorn Fund

Class A Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 17.22     $ 28.87     $ 29.02     $ 27.57     $ 25.93    
Income from Investment Operations  
Net investment income/(loss) (a)     (0.02 )     (0.01 )     0.05 (b)     0.05       0.07    
Net realized and unrealized gain/(loss)     6.78       (10.98 )     2.13       3.82       3.20    
Total from Investment Operations     6.76       (10.99 )     2.18       3.87       3.27    
Less Distributions to Shareholders  
From net investment income     —       —       (0.03 )     (0.04 )     (0.07 )  
From net realized gains     —       (0.66 )     (2.30 )     (2.38 )     (1.56 )  
Total Distributions to Shareholders     —       (0.66 )     (2.33 )     (2.42 )     (1.63 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 23.98     $ 17.22     $ 28.87     $ 29.02     $ 27.57    
Total Return (d)     39.26 %     (38.72 )%     7.39 %(e)(f)     14.13 %(e)     12.76 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     1.07 %     1.05 %     1.02 %     1.02 %     1.03 %  
Net investment income/(loss) (g)     (0.12 )%     (0.04 )%     0.17 %     0.17 %     0.28 %  
Waiver/Reimbursement     —       —       0.01 %     0.02 %     0.02 %  
Portfolio turnover rate     27 %     21 %     20 %     22 %     16 %  
Net assets at end of period (000s)   $ 2,937,761     $ 2,221,100     $ 4,300,920     $ 4,067,868     $ 3,349,461    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.03 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class B Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 16.21     $ 27.39     $ 27.78     $ 26.61     $ 25.19    
Income from Investment Operations  
Net investment loss (a)     (0.14 )     (0.15 )     (0.11 )(b)     (0.13 )     (0.11 )  
Net realized and unrealized gain/(loss)     6.36       (10.37 )     2.02       3.68       3.09    
Total from Investment Operations     6.22       (10.52 )     1.91       3.55       2.98    
Less Distributions to Shareholders  
From net realized gains     —       (0.66 )     (2.30 )     (2.38 )     (1.56 )  
Total Distributions to Shareholders     —       (0.66 )     (2.30 )     (2.38 )     (1.56 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 22.43     $ 16.21     $ 27.39     $ 27.78     $ 26.61    
Total Return (d)     38.37 %     (39.11 )%     6.76 %(e)(f)     13.43 %(e)     11.98 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     1.74 %     1.65 %     1.59 %     1.66 %     1.72 %  
Net investment loss (g)     (0.77 )%     (0.64 )%     (0.39 )%     (0.48 )%     (0.42 )%  
Waiver/Reimbursement     —       —       0.01 %     0.02 %     0.02 %  
Portfolio turnover rate     27 %     21 %     20 %     22 %     16 %  
Net assets at end of period (000s)   $ 525,072     $ 581,587     $ 1,270,292     $ 1,404,165     $ 1,422,580    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.03 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class C Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 16.09     $ 27.25     $ 27.70     $ 26.58     $ 25.18    
Income from Investment Operations  
Net investment loss (a)     (0.17 )     (0.19 )     (0.18 )(b)     (0.17 )     (0.13 )  
Net realized and unrealized gain/(loss)     6.31       (10.31 )     2.03       3.67       3.09    
Total from Investment Operations     6.14       (10.50 )     1.85       3.50       2.96    
Less Distributions to Shareholders  
From net realized gains     —       (0.66 )     (2.30 )     (2.38 )     (1.56 )  
Total Distributions to Shareholders     —       (0.66 )     (2.30 )     (2.38 )     (1.56 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 22.23     $ 16.09     $ 27.25     $ 27.70     $ 26.58    
Total Return (d)     38.16 %     (39.23 )%     6.56 %(e)(f)     13.25 %(e)     11.90 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     1.89 %     1.83 %     1.79 %     1.80 %     1.82 %  
Net investment loss (g)     (0.93 )%     (0.82 )%     (0.60 )%     (0.61 )%     (0.51 )%  
Waiver/Reimbursement     —       —       0.00 %(h)     0.02 %     0.02 %  
Portfolio turnover rate     27 %     21 %     20 %     22 %     16 %  
Net assets at end of period (000s)   $ 736,818     $ 622,665     $ 1,312,243     $ 1,345,520     $ 1,220,339    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.03 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(h)  Rounds to less than 0.01%.

See accompanying notes to financial statements.


74


Columbia Acorn International

Class A Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 23.03     $ 43.42     $ 40.07     $ 33.20     $ 28.75    
Income from Investment Operations  
Net investment income (a)     0.23       0.47       0.27       0.23       0.22    
Net realized and unrealized gain/(loss)     11.27       (20.20 )     6.52       10.87       5.84    
Total from Investment Operations     11.50       (19.73 )     6.79       11.10       6.06    
Less Distributions to Shareholders  
From net investment income     (0.41 )     (0.06 )     (0.08 )     (0.32 )     (0.53 )  
From net realized gains     —       (0.60 )     (3.36 )     (3.91 )     (1.08 )  
Total Distributions to Shareholders     (0.41 )     (0.66 )     (3.44 )     (4.23 )     (1.61 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(b)     0.00       0.00       0.00       0.00       0.00    
Increase from regulatory settlements     0.01       —       —       —       —    
Net Asset Value, End of Period   $ 34.13     $ 23.03     $ 43.42     $ 40.07     $ 33.20    
Total Return (c)     50.40 %     (46.09 )%     16.90 %(d)     34.16 %(d)     21.42 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     1.36 %     1.31 %     1.23 %     1.24 %     1.30 %  
Net investment income (e)     0.85 %     1.36 %     0.60 %     0.61 %     0.72 %  
Waiver/Reimbursement     —       —       0.00 %(f)     0.01 %     0.02 %  
Portfolio turnover rate     31 %     38 %     28 %     31 %     27 %  
Net assets at end of period (000s)   $ 578,599     $ 366,820     $ 622,901     $ 313,401     $ 142,204    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(f)  Rounds to less than 0.01%.

Class B Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 22.41     $ 42.46     $ 39.39     $ 32.71     $ 28.18    
Income from Investment Operations  
Net investment income/(loss) (a)     0.08       0.27       0.04       (0.00 )(b)     0.02    
Net realized and unrealized gain/(loss)     10.92       (19.72 )     6.39       10.66       5.73    
Total from Investment Operations     11.00       (19.45 )     6.43       10.66       5.75    
Less Distributions to Shareholders  
From net investment income     (0.20 )     —       (0.00 )(b)     (0.07 )     (0.14 )  
From net realized gains     —       (0.60 )     (3.36 )     (3.91 )     (1.08 )  
Total Distributions to Shareholders     (0.20 )     (0.60 )     (3.36 )     (3.98 )     (1.22 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(b)     0.00       0.00       0.00       0.00       0.00    
Increase from regulatory settlements     0.01       —       —       —       —    
Net Asset Value, End of Period   $ 33.22     $ 22.41     $ 42.46     $ 39.39     $ 32.71    
Total Return (c)     49.36 %     (46.41 )%     16.25 %(d)     33.26 %(d)     20.57 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     2.03 %     1.90 %     1.81 %     1.89 %     2.01 %  
Net investment income/(loss) (e)     0.29 %     0.77 %     0.08 %     (0.01 )%     0.08 %  
Waiver/Reimbursement     —       —       0.01 %     0.02 %     0.02 %  
Portfolio turnover rate     31 %     38 %     28 %     31 %     27 %  
Net assets at end of period (000s)   $ 38,835     $ 39,153     $ 103,631     $ 94,165     $ 73,572    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class C Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 22.30     $ 42.32     $ 39.35     $ 32.68     $ 28.19    
Income from Investment Operations  
Net investment income/(loss) (a)     0.02       0.21       (0.06 )     (0.05 )     (0.00 )(b)  
Net realized and unrealized gain/(loss)     10.89       (19.63 )     6.39       10.66       5.71    
Total from Investment Operations     10.91       (19.42 )     6.33       10.61       5.71    
Less Distributions to Shareholders  
From net investment income     (0.14 )     —       (0.00 )(b)     (0.03 )     (0.14 )  
From net realized gains     —       (0.60 )     (3.36 )     (3.91 )     (1.08 )  
Total Distributions to Shareholders     (0.14 )     (0.60 )     (3.36 )     (3.94 )     (1.22 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(b)     0.00       0.00       0.00       0.00       0.00    
Increase from regulatory settlements     0.01       —       —       —       —    
Net Asset Value, End of Period   $ 33.08     $ 22.30     $ 42.32     $ 39.35     $ 32.68    
Total Return (c)     49.12 %     (46.50 )%     16.01 %(d)     33.14 %(d)     20.45 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     2.17 %     2.08 %     1.99 %     2.01 %     2.09 %  
Net investment income/(loss) (e)     0.07 %     0.60 %     (0.14 )%     (0.14 )%     (0.01 )%  
Waiver/Reimbursement     —       —       0.00 %(f)     0.01 %     0.02 %  
Portfolio turnover rate     31 %     38 %     28 %     31 %     27 %  
Net assets at end of period (000s)   $ 85,625     $ 62,906     $ 153,416     $ 99,425     $ 47,325    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(f)  Rounds to less than 0.01%.

See accompanying notes to financial statements.


75


Columbia Acorn Family of Funds

Financial Highlights, continued

Columbia Acorn USA

Class A Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 15.90     $ 27.23     $ 28.02     $ 26.52     $ 24.77    
Income from Investment Operations  
Net investment loss (a)     (0.11 )     (0.14 )     (0.09 )(b)     (0.10 )     (0.01 )  
Net realized and unrealized gain/(loss)     6.64       (10.23 )     1.01       2.21       3.13    
Total from Investment Operations     6.53       (10.37 )     0.92       2.11       3.12    
Less Distributions to Shareholders  
From net realized gains     —       (0.96 )     (1.71 )     (0.61 )     (1.37 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 22.43     $ 15.90     $ 27.23     $ 28.02     $ 26.52    
Total Return (d)     41.07 %     (39.38 )%     3.18 %(e)(f)     7.95 %(e)     12.68 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     1.32 %     1.29 %     1.25 %     1.26 %     1.31 %  
Net investment loss (g)     (0.64 )%     (0.60 )%     (0.29 )%     (0.35 )%     (0.02 )%  
Waiver/Reimbursement     —       —       0.00 %(h)     0.01 %     0.01 %  
Portfolio turnover rate     28 %     23 %     21 %     13 %     13 %  
Net assets at end of period (000s)   $ 178,605     $ 136,597     $ 245,085     $ 245,552     $ 168,922    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.09 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(h)  Rounds to less than 0.01%.

Class B Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 14.98     $ 25.87     $ 26.87     $ 25.61     $ 24.14    
Income from Investment Operations  
Net investment loss (a)     (0.22 )     (0.27 )     (0.25 )(b)     (0.27 )     (0.18 )  
Net realized and unrealized gain/(loss)     6.23       (9.66 )     0.96       2.14       3.02    
Total from Investment Operations     6.01       (9.93 )     0.71       1.87       2.84    
Less Distributions to Shareholders  
From net realized gains     —       (0.96 )     (1.71 )     (0.61 )     (1.37 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 20.99     $ 14.98     $ 25.87     $ 26.87     $ 25.61    
Total Return (d)     40.12 %     (39.75 )%     2.53 %(e)(f)     7.29 %(e)     11.84 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     2.02 %     1.92 %     1.85 %     1.93 %     2.00 %  
Net investment loss (g)     (1.33 )%     (1.24 )%     (0.87 )%     (1.01 )%     (0.72 )%  
Waiver/Reimbursement     —       —       0.01 %     0.02 %     0.01 %  
Portfolio turnover rate     28 %     23 %     21 %     13 %     13 %  
Net assets at end of period (000s)   $ 20,903     $ 23,633     $ 53,820     $ 65,040     $ 73,168    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.09 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class C Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 14.89     $ 25.77     $ 26.81     $ 25.59     $ 24.14    
Income from Investment Operations  
Net investment loss (a)     (0.24 )     (0.30 )     (0.30 )(b)     (0.30 )     (0.20 )  
Net realized and unrealized gain/(loss)     6.19       (9.62 )     0.97       2.13       3.02    
Total from Investment Operations     5.95       (9.92 )     0.67       1.83       2.82    
Less Distributions to Shareholders  
From net realized gains     —       (0.96 )     (1.71 )     (0.61 )     (1.37 )  
Increase from regulatory settlements     — (c)     —       —       —       —    
Net Asset Value, End of Period   $ 20.84     $ 14.89     $ 25.77     $ 26.81     $ 25.59    
Total Return (d)     39.96 %     (39.87 )%     2.39 %(e)(f)     7.14 %(e)     11.76 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (g)     2.13 %     2.08 %     2.03 %     2.05 %     2.10 %  
Net investment loss (g)     (1.45 )%     (1.39 )%     (1.07 )%     (1.14 )%     (0.81 )%  
Waiver/Reimbursement     —       —       0.00 %(h)     0.01 %     0.01 %  
Portfolio turnover rate     28 %     23 %     21 %     13 %     13 %  
Net assets at end of period (000s)   $ 32,508     $ 25,899     $ 50,743     $ 55,306     $ 42,844    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.09 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(g)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(h)  Rounds to less than 0.01%.

See accompanying notes to financial statements.


76


Columbia Acorn International Select

Class A Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 17.99     $ 31.74     $ 27.68     $ 20.36     $ 17.85    
Income from Investment Operations  
Net investment income (a)     0.10       0.20       0.04 (b)     0.03       0.06    
Net realized and unrealized gain/(loss)     5.43       (13.41 )     5.91       7.29       2.69    
Total from Investment Operations     5.53       (13.21 )     5.95       7.32       2.75    
Less Distributions to Shareholders  
From net investment income     (0.15 )     —       (0.12 )     —       (0.24 )  
From net realized gains     —       (0.54 )     (1.77 )     —       —    
Total Distributions to Shareholders     (0.15 )     (0.54 )     (1.89 )     —       (0.24 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(c)     0.00       0.00       0.00       0.00       0.00    
Increase from regulatory settlements     0.02       —       —       —       —    
Net Asset Value, End of Period   $ 23.39     $ 17.99     $ 31.74     $ 27.68     $ 20.36    
Total Return (d)     31.01 %     (42.30 )%     21.50 %(e)     35.97 %(e)     15.60 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (f)     1.56 %     1.54 %     1.49 %     1.58 %     1.70 %  
Net investment income (f)     0.53 %     0.78 %     0.11 %     0.11 %     0.34 %  
Waiver/Reimbursement     —       —       0.00 %(g)     0.02 %     0.10 %  
Portfolio turnover rate     56 %     68 %     57 %     47 %     39 %  
Net assets at end of period (000s)   $ 64,664     $ 46,522     $ 48,538     $ 22,599     $ 10,219    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.07 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(g)  Rounds to less than 0.01%.

Class B Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 17.16     $ 30.50     $ 26.73     $ 19.80     $ 17.36    
Income from Investment Operations  
Net investment income/(loss) (a)     (0.01 )     0.04       (0.13 )(b)     (0.12 )     (0.03 )  
Net realized and unrealized gain/(loss)     5.17       (12.84 )     5.67       7.05       2.61    
Total from Investment Operations     5.16       (12.80 )     5.54       6.93       2.58    
Less Distributions to Shareholders  
From net investment income     —       —       —       —       (0.14 )  
From net realized gains     —       (0.54 )     (1.77 )     —       —    
Total Distributions to Shareholders     —       (0.54 )     (1.77 )     —       (0.14 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(c)     0.00       0.00       0.00       0.00       0.00    
Increase from regulatory settlements     0.02       —       —       —       —    
Net Asset Value, End of Period   $ 22.34     $ 17.16     $ 30.50     $ 26.73     $ 19.80    
Total Return (d)     30.19 %(e)     (42.68 )%     20.69 %(e)     35.00 %(e)     14.97 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (f)     2.20 %     2.17 %     2.10 %     2.25 %     2.30 %  
Net investment income/(loss) (f)     (0.05 )%     0.16 %     (0.45 )%     (0.53 )%     (0.16 )%  
Waiver/Reimbursement     0.12 %     —       0.01 %     0.04 %     0.28 %  
Portfolio turnover rate     56 %     68 %     57 %     47 %     39 %  
Net assets at end of period (000s)   $ 3,887     $ 4,444     $ 11,941     $ 9,787     $ 6,594    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.07 per share.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class C Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 17.08     $ 30.42     $ 26.70     $ 19.80     $ 17.38    
Income from Investment Operations  
Net investment income/(loss) (a)     (0.06 )     0.00 (b)     (0.20 )(c)     (0.15 )     (0.05 )  
Net realized and unrealized gain/(loss)     5.17       (12.80 )     5.69       7.05       2.60    
Total from Investment Operations     5.11       (12.80 )     5.49       6.90       2.55    
Less Distributions to Shareholders  
From net investment income     —       —       —       —       (0.13 )  
From net realized gains     —       (0.54 )     (1.77 )     —       —    
Total Distributions to Shareholders     —       (0.54 )     (1.77 )     —       (0.13 )  
Redemption Fees  
Redemption fees added to paid in capital (a)(b)     0.00       0.00       0.00       0.00       0.00    
Increase from regulatory settlements     0.02       —       —       —       —    
Net Asset Value, End of Period   $ 22.21     $ 17.08     $ 30.42     $ 26.70     $ 19.80    
Total Return (d)     30.04 %     (42.79 )%     20.53 %(e)     34.85 %(e)     14.77 %(e)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (f)     2.42 %     2.34 %     2.29 %     2.38 %     2.45 %  
Net investment income/(loss) (f)     (0.30 )%     0.01 %     (0.68 )%     (0.67 )%     (0.30 )%  
Waiver/Reimbursement     —       —       0.01 %     0.02 %     0.17 %  
Portfolio turnover rate     56 %     68 %     57 %     47 %     39 %  
Net assets at end of period (000s)   $ 11,096     $ 9,747     $ 13,023     $ 7,060     $ 4,083    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Net investment income per share includes special dividends. The effect of these dividends amounted to $0.07 per share.

(d)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(e)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(f)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

See accompanying notes to financial statements.


77


Columbia Acorn Family of Funds

Financial Highlights, continued

Columbia Acorn Select

Class A Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 13.77     $ 27.89     $ 26.18     $ 22.47     $ 20.83    
Income from Investment Operations  
Net investment loss (a)     (0.14 )     (0.18 )     (0.15 )     (0.13 )     (0.09 )  
Net realized and unrealized gain/(loss)     9.18       (13.25 )     2.50       4.45       2.32    
Total from Investment Operations     9.04       (13.43 )     2.35       4.32       2.23    
Less Distributions to Shareholders  
From net investment income     —       —       —       (0.02 )     —    
From net realized gains     —       (0.69 )     (0.64 )     (0.59 )     (0.59 )  
Total Distributions to Shareholders     —       (0.69 )     (0.64 )     (0.61 )     (0.59 )  
Net Asset Value, End of Period   $ 22.81     $ 13.77     $ 27.89     $ 26.18     $ 22.47    
Total Return (b)     65.65 %     (49.31 )%(c)     8.92 %(d)     19.32 %(d)     10.78 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     1.30 %     1.24 %     1.19 %     1.24 %     1.26 %  
Net investment loss (e)     (0.78 )%     (0.80 )%     (0.52 )%     (0.54 )%     (0.42 )%  
Waiver/Reimbursement     —       —       0.00 %(f)     0.03 %     0.03 %  
Portfolio turnover rate     19 %     28 %     14 %     21 %     19 %  
Net assets at end of period (000s)   $ 522,443     $ 395,794     $ 1,117,941     $ 940,857     $ 744,178    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(c)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by 0.101% and $0.01, respectively.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(f)  Rounds to less than 0.01%.

Class B Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 13.02     $ 26.57     $ 25.13     $ 21.71     $ 20.23    
Income from Investment Operations  
Net investment loss (a)     (0.24 )     (0.31 )     (0.31 )     (0.28 )     (0.23 )  
Net realized and unrealized gain/(loss)     8.63       (12.55 )     2.39       4.29       2.24    
Total from Investment Operations     8.39       (12.86 )     2.08       4.01       2.01    
Less Distributions to Shareholders  
From net realized gains     —       (0.69 )     (0.64 )     (0.59 )     (0.53 )  
Net Asset Value, End of Period   $ 21.41     $ 13.02     $ 26.57     $ 25.13     $ 21.71    
Total Return (b)     64.44 %     (49.62 )%(c)     8.22 %(d)     18.54 %(d)     10.01 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     2.01 %     1.87 %     1.79 %     1.91 %     1.99 %  
Net investment loss (e)     (1.49 )%     (1.43 )%     (1.12 )%     (1.21 )%     (1.15 )%  
Waiver/Reimbursement     —       —       0.01 %     0.03 %     0.03 %  
Portfolio turnover rate     19 %     28 %     14 %     21 %     19 %  
Net assets at end of period (000s)   $ 88,004     $ 73,152     $ 199,182     $ 214,260     $ 206,441    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(c)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by 0.101% and $0.01, respectively.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class C Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 12.94     $ 26.46     $ 25.07     $ 21.69     $ 20.23    
Income from Investment Operations  
Net investment loss (a)     (0.26 )     (0.34 )     (0.36 )     (0.31 )     (0.25 )  
Net realized and unrealized gain/(loss)     8.57       (12.49 )     2.39       4.28       2.24    
Total from Investment Operations     8.31       (12.83 )     2.03       3.97       1.99    
Less Distributions to Shareholders  
From net realized gains     —       (0.69 )     (0.64 )     (0.59 )     (0.53 )  
Net Asset Value, End of Period   $ 21.25     $ 12.94     $ 26.46     $ 25.07     $ 21.69    
Total Return (b)     64.22 %     (49.71 )%(c)     8.04 %(d)     18.37 %(d)     9.91 %(d)  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)     2.14 %     2.04 %     1.98 %     2.04 %     2.08 %  
Net investment loss (e)     (1.62 )%     (1.60 )%     (1.31 )%     (1.34 )%     (1.24 )%  
Waiver/Reimbursement     —       —       0.00 %(f)     0.03 %     0.03 %  
Portfolio turnover rate     19 %     28 %     14 %     21 %     19 %  
Net assets at end of period (000s)   $ 93,121     $ 70,962     $ 197,100     $ 173,152     $ 149,160    

 

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(c)  Total return includes a voluntary reimbursement by the Advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by 0.101% and $0.01, respectively.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

(f)  Rounds to less than 0.01%.

See accompanying notes to financial statements.


78


Columbia Thermostat Fund

Class A Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 8.26     $ 12.31     $ 12.59     $ 12.49     $ 13.11    
Income from Investment Operations  
Net investment income (a)     0.11       0.22       0.49       0.45       0.39    
Net realized and unrealized gain/(loss)     2.53       (3.98 )     0.53       0.84       0.29    
Total from Investment Operations     2.64       (3.76 )     1.02       1.29       0.68    
Less Distributions to Shareholders  
From net investment income     (0.00 )(b)     (0.22 )     (0.51 )     (0.47 )     (0.39 )  
From net realized gains     —       (0.07 )     (0.79 )     (0.72 )     (0.91 )  
Total Distributions to Shareholders     (0.00 )(b)     (0.29 )     (1.30 )     (1.19 )     (1.30 )  
Net Asset Value, End of Period   $ 10.90     $ 8.26     $ 12.31     $ 12.59     $ 12.49    
Total Return (c)(d)     31.98 %     (30.67 )%     8.19 %     10.56 %     5.25 %  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (e)(f)     0.50 %     0.50 %     0.50 %     0.50 %     0.50 %  
Net investment income (f)     1.17 %     1.99 %     3.75 %     3.53 %     2.97 %  
Waiver/Reimbursement     0.28 %     0.18 %     0.18 %     0.20 %     0.15 %  
Portfolio turnover rate     17 %     130 %     128 %     66 %     96 %  
Net assets at end of period (000s)   $ 42,976     $ 41,032     $ 53,246     $ 58,013     $ 71,034    

 

(a)  Per share data was calculated using the average shares outstanding during the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(b)  Round to less than $(0.01) per share.

(c)  Total return at net asset value assuming all distributions reinvested and no initial sales charge or contingent deferred sales charge.

(d)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(e)  Does not include expenses of the investment companies in which the Fund invests.

(f)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class B Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 8.32     $ 12.38     $ 12.62     $ 12.51     $ 13.14    
Income from Investment Operations  
Net investment income (a)     0.06       0.16       0.42       0.38       0.31    
Net realized and unrealized gain/(loss)     2.55       (4.00 )     0.54       0.84       0.28    
Total from Investment Operations     2.61       (3.84 )     0.96       1.22       0.59    
Less Distributions to Shareholders  
From net investment income     —       (0.15 )     (0.41 )     (0.39 )     (0.31 )  
From net realized gains     —       (0.07 )     (0.79 )     (0.72 )     (0.91 )  
Total Distributions to Shareholders     —       (0.22 )     (1.20 )     (1.11 )     (1.22 )  
Net Asset Value, End of Period   $ 10.93     $ 8.32     $ 12.38     $ 12.62     $ 12.51    
Total Return (b)(c)     31.37 %     (31.10 )%     7.71 %     9.91 %     4.56 %  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (d)(e)     1.00 %     1.00 %     1.00 %     1.06 %     1.10 %  
Net investment income (e)     0.64 %     1.45 %     3.25 %     2.99 %     2.39 %  
Waiver/Reimbursement     0.32 %     0.20 %     0.19 %     0.23 %     0.19 %  
Portfolio turnover rate     17 %     130 %     128 %     66 %     96 %  
Net assets at end of period (000s)   $ 32,758     $ 36,673     $ 67,709     $ 72,367     $ 78,444    

 

(a)  Per share data was calculated using the average shares outstanding during the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(b)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(c)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(d)  Does not include expenses of the investment companies in which the Fund invests.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

Class C Shares   Year Ended December 31,  
Selected data for a share outstanding throughout each period    2009   2008   2007   2006   2005  
Net Asset Value, Beginning of Period   $ 8.33     $ 12.37     $ 12.62     $ 12.51     $ 13.13    
Income from Investment Operations  
Net investment income (a)     0.03       0.13       0.39       0.36       0.29    
Net realized and unrealized gain/(loss)     2.55       (3.97 )     0.53       0.84       0.29    
Total from Investment Operations     2.58       (3.84 )     0.92       1.20       0.58    
Less Distributions to Shareholders  
From net investment income     —       (0.13 )     (0.38 )     (0.37 )     (0.29 )  
From net realized gains     —       (0.07 )     (0.79 )     (0.72 )     (0.91 )  
Total Distributions to Shareholders     —       (0.20 )     (1.17 )     (1.09 )     (1.20 )  
Net Asset Value, End of Period   $ 10.91     $ 8.33     $ 12.37     $ 12.62     $ 12.51    
Total Return (b)(c)     30.97 %     (31.20 )%     7.36 %     9.72 %     4.49 %  
Ratios to Average Net Assets/Supplemental Data  
Net expenses (d)(e)     1.25 %     1.25 %     1.25 %     1.25 %     1.25 %  
Net investment income (e)     0.39 %     1.23 %     3.02 %     2.81 %     2.21 %  
Waiver/Reimbursement     0.30 %     0.20 %     0.19 %     0.23 %     0.19 %  
Portfolio turnover rate     17 %     130 %     128 %     66 %     96 %  
Net assets at end of period (000s)   $ 21,090     $ 24,383     $ 26,908     $ 27,375     $ 28,316    

 

(a)  Per share data was calculated using the average shares outstanding during the period. Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.

(b)  Total return at net asset value assuming all distributions reinvested and no contingent deferred sales charge.

(c)  Had the Advisor and/or Transfer Agent not waived fees and/or reimbursed a portion of expenses, total return would have been reduced.

(d)  Does not include expenses of the investment companies in which the Fund invests.

(e)  The benefits derived from custody fees paid indirectly had an impact of less than 0.01%.

See accompanying notes to financial statements.


79



Columbia Acorn Family of Funds

Notes to Financial Statements

1.  Nature of Operations

Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA, Columbia Acorn International Select, Columbia Acorn Select and Columbia Thermostat Fund (the "Funds") are each a series of Columbia Acorn Trust (the "Trust"), an open-end management investment company organized as a Massachusetts business trust. The investment objective of each Fund is to seek long-term capital appreciation. Columbia Thermostat Fund pursues its investment objective by investing in shares of other mutual funds. As a "fund of funds," under normal circumstances the Fund allocates at least 95% of its net assets among a selected group of stock and bond mutual funds ("portfolio funds") according to the current level of the Standard & Poor's 500 Index in relation to predetermined ranges set by the Advisor. The Fund may invest up to 5% of its net assets plus any cash received that day in cash, repurchase agreements, high quality short-term paper and government securities.

Each Fund may issue an unlimited number of shares. Each Fund currently has four classes of shares: Class A, Class B, Class C and Class Z. Effective February 29, 2008, the Funds no longer offer Class B shares (other than through dividend reinvestment).

Class A shares are sold with a front-end sales charge. Class A shares bought without an initial sales charge in accounts aggregating $1 million up to $50 million at the time of purchase are subject to a 1.00% contingent deferred sales charge ("CDSC") if the shares are redeemed within 12 months of the date of purchase.

Class B shares are subject to a CDSC if redeemed within six years of purchase. Class B shares will convert to Class A shares automatically eight years after purchase.

Class C shares are offered at net asset value but are subject to a CDSC on redemptions made within one year after purchase.

Class Z shares are offered at net asset value. There are certain restrictions on who may purchase Class Z shares. Generally, Class Z shares of a Fund may be exchanged for shares of another fund distributed by Columbia Management Distributors, Inc. at no additional charge.

Columbia Acorn International and Columbia Acorn International Select impose a 2.00% redemption fee on shares that are redeemed within 60 days or less of purchase. See the discussion of Fund policies regarding redemption fees in the Funds' prospectuses for more information.

The financial highlights for the Fund's Class Z shares are presented in a separate annual report.

Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated pro rata on the basis of the relative net assets of all classes, except that each class bears certain expenses specific to that class such as distribution services, transfer agency, and certain other class specific expenses. Differences in class expenses may result in payment of different dividend distributions for each class. All of the Funds' share classes have equal rights with respect to voting, subject to Fund or class specific matters.

On September 29, 2009, Bank of America Corporation, the indirect parent company of Columbia Wanger Asset Management, L.P. ("CWAM") entered into an agreement to sell a portion of the asset management business of Columbia Management Group, LLC ("Columbia Management") to Ameriprise Financial, Inc. The transaction ("Transaction") includes a sale of CWAM. The Transaction is subject to certain approvals and other conditions to closing, and is currently expected to close in the spring of 2010.

2.  Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Management has evaluated the events and transactions that have occurred through February 18, 2010, the date the financial statements were issued, and noted no items requiring adjustment of the financial statements or additional disclosures. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.

>Security valuation

Securities of the Funds are valued at market value or, if a market quotation for a security is not readily available or is deemed not to be reliable because of events or circumstances that have occurred between the market quotation and the time as of which the security is to be valued, the security is valued at a fair value determined in good faith under consistently applied procedures established by the Board of Trustees. With respect to Columbia Thermostat Fund, investments in portfolio funds are valued at their net asset values as reported by the portfolio funds. A security traded on a securities exchange or in an over-the-counter market in which transaction prices are reported is valued at the last sales price at the time of valuation. A security traded principally on NASDAQ is valued at the


80


NASDAQ official closing price. Mutual Funds and Exchange Traded Funds are valued at their closing net asset value as reported to NASDAQ. A security for which there is no reported sale on the valuation date is valued at the latest bid quotation. Short-term investments maturing in 60 days or less are valued at amortized cost, which approximates market value. A security for which a market quotation is not readily available and any other assets are valued at its fair value determined in good faith under consistently applied procedures established by the Board of Trustees. The Funds have retained an independent statistical fair value pricing service that employs a systematic methodology to assist in the fair valuation process for securities principally traded in a foreign market in order to adjust for possible changes in value that may occur between the close of the foreign exchange and the time as of which the securities are to be valued. If a security is valued at fair value, that value may be different from the last quoted market price for the security.

Various inputs are used in determining the value of each Fund's investments. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical securities

• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

• Level 3 – significant unobservable inputs (including management's own assumptions in determining the value of investments)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities.

Examples of the types of securities in which the Funds would typically invest and how they are classified within this hierarchy are as follows. Typical Level 1 securities include exchange traded domestic equities, mutual funds whose NAVs are published each day and exchange traded foreign equities that are not statistically fair valued. Typical Level 2 securities include exchange traded foreign equities that are statistically fair valued, forward foreign currency exchange contracts and short-term investments valued at amortized cost. Additionally, securities fair valued by the Fund's Valuation Committee that rely on significant observable inputs are also included in level 2. Typical Level 3 securities include any security fair valued by the Funds' Valuation Committee that relies on significant unobservable inputs.

>Repurchase agreements

Each Fund may engage in repurchase agreement transactions. Each Fund, through its custodian, receives delivery of underlying securities collateralizing repurchase agreements. The counterparty is required to maintain collateral that is at all times at least equal to the repurchase price including interest. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.

>Foreign currency translations

Values of investments denominated in foreign currencies are converted into U.S. dollars using the New York spot market rate of exchange at the time of valuation. Purchases and sales of investments and dividend and interest income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gain or loss resulting from changes in foreign exchange rates is included with net realized and unrealized gain or loss from investments, as appropriate.

>Forward foreign currency exchange contracts

Columbia Acorn International may enter into forward foreign currency exchange contracts in order to seek to minimize the risk from adverse changes in the relationship between the U.S. dollar and foreign currencies. A forward foreign currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. Forward foreign currency exchange contracts are valued at the interpolated forward exchange rate of the underlying currencies and any market gain or loss, arising from the difference between the original value and the current value of such contract, is included as a component of unrealized gain/(loss) on the Statements of Operations. Open forward foreign currency exchange contracts, if any, are disclosed in the Notes to the Statement of Investments. As forward foreign currency exchange contracts are closed the resulting gain or loss, arising from the difference between the original value of the contract and the closing value of such contract, is included as a component of realized gain/(loss) on the Statements of Operations.

A forward foreign currency exchange contract would limit the risk of loss due to a decline in the value of a particular currency; however, it also would limit any potential gain that might result should the value of the currency increase instead of decrease. These contracts may involve market risk in excess of the unrealized gain or loss reflected on the Statements of Assets and Liabilities. In addition, a Fund could be exposed to counterparty risks if counterparties to the contracts are unable


81


Columbia Acorn Family of Funds

Notes to Financial Statements, continued

to meet the terms of their contracts. The counterparty risk exposure is, therefore, closely monitored and contracts are only executed with high credit quality financial institutions.

A Fund may use forward foreign currency exchange contracts to buy or sell a foreign currency when the Advisor believes it has exposure to a foreign currency which may suffer or enjoy a movement against another foreign currency to which the Fund has exposure. A Fund will not attempt to hedge all of its foreign portfolio positions.

For additional information on derivative instruments, please see Note 5.

>Securities lending

Each Fund may lend securities up to one-third of the value of its total assets to certain approved brokers, dealers and other financial institutions to earn additional income. In lending its securities, the Fund retains the benefits of owning the securities, including receipt of dividends or interest generated by the security. Each Fund also receives a fee for the loan. Each Fund has the ability to recall the loans at any time and could do so in order to vote proxies or to sell the loaned securities. Each loan is collateralized by cash that exceeds the value of the securities on loan. The market value of the loaned securities is determined daily at the close of business of each Fund and any additional required collateral is delivered to each Fund on the next business day. Each Fund has elected to invest the cash collateral in the Dreyfus Government Cash Management Fund, and the income earned is paid to each Fund, net of any fees remitted to Goldman Sachs Agency Lending as the lending agent and net of any borrower rebates. The Funds' advisor, CWAM, does not retain any fees earned by the lending program. Generally, in the event of borrower default, a Fund has the right to use the collateral to offset any losses incurred. In the event a Fund is delayed or prevented from exercising its right to dispose of the collateral, there may be a potential loss to a Fund. Some of these losses may be indemnified by the lending agent. Each Fund bears the risk of loss with respect to the investment of collateral.

The net lending income earned in 2009 by each Fund is included in the Statements of Operations.

>Security transactions and investment income

Security transactions, investment income and shareholder fund transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income and realized gain distributions from other funds are recorded on the ex-dividend date, except that certain dividends from foreign securities are recorded as soon as the information is available to the Funds. Interest income is recorded on the accrual basis and includes amortization of discounts on debt obligations when required for federal income tax purposes. Realized gains and losses from security transactions are recorded on an identified cost basis.

Awards, if any, from class action litigation related to securities owned may be recorded as a reduction of cost of those securities. If the applicable securities are no longer owned, the proceeds are recorded as realized gains.

The Funds estimate the tax character of distributions from real estate investment trusts ("REITs"). Distributions received in excess of income are recorded as a reduction of the cost of the related investments. If the applicable securities are no longer owned, any distributions received in excess of income are recorded as realized gains.

>Restricted securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale at the issuer's expense either upon demand by the Funds or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Trustees.

>Fund share valuation

Fund shares are sold and redeemed on a continuing basis at net asset value, subject to any applicable sales charge. Net asset value per share is determined daily as of the close of trading on the New York Stock Exchange ("NYSE") on each day the NYSE is open for trading. Generally, income, expenses and realized and unrealized gain/(losses) of a Fund are allocated to each class proportionately on a daily basis for purposes of determining the net asset value of each class. The Rule 12b-1 service and distribution fees and transfer agency fees are charged to each specific class as expenses are incurred. Redemption fees are accounted for as an addition to paid in capital for purposes of determining the net asset value of each class.

>Custody fees/credits

Custody fees are reduced based on each Fund's cash balances maintained with the custodian. The amount is disclosed as a reduction of total expenses on the Statements of Operations.


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>Federal income taxes

The Funds have complied with the provisions of the Internal Revenue Code available to regulated investment companies and, in the manner provided therein, distribute all their taxable income, as well as any net realized gain on sales of investments and foreign currency transactions reportable for federal income tax purposes. Columbia Thermostat Fund distributes all of its taxable income, as well as any net realized gain on sales of portfolio fund shares and any distributions of net realized gains received by the Fund from its portfolio funds, reportable for federal income tax purposes. Accordingly, the Funds paid no federal income taxes and no federal income tax provision was required.

>Foreign capital gains taxes

Realized gains in certain countries may be subject to foreign taxes at the fund level, at rates ranging from approximately 10% to 15%. The Funds accrue for such foreign taxes on net realized and unrealized gains at the appropriate rate for each jurisdiction.

>Distributions to Shareholders

Distributions to shareholders are recorded on the ex-dividend date.

>Indemnification

In the normal course of business, the Trust on behalf of the Funds enters into contracts that contain a variety of representations and warranties and that provide general indemnities. A Fund's maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund. Also, under the Trust's organizational documents, the trustees and officers of the Trust are indemnified against certain liabilities that may arise out of their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these warranties and indemnities to be minimal.

3.  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. Reclassifications are made to each Fund's capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended December 31, 2009, permanent book and tax basis differences resulting primarily from differing treatments for proceeds from litigation settlements, net operating losses, foreign currency transactions, passive foreign investment company ("PFIC") adjustments and foreign capital gains tax adjustments were identified and reclassified among the components of each Fund's net assets as follows:

    Undistributed/
(Overdistributed)
or (Accumulated)
Net Investment
Income (Loss)		   Accumulated
Net Realized
Gain/(Loss)		   Paid-in
Capital		  
(in thousands)  
Columbia Acorn Fund   $ (189 )   $ 229     $ (40 )  
Columbia Acorn International     2,600       (2,551 )     (49 )  
Columbia Acorn USA     4,809       —       (4,809 )  
Columbia Acorn International Select     238       28       (266 )  
Columbia Acorn Select     2,193       (589 )     (1,604 )  
Columbia Thermostat Fund     — *     — *     —    

 

*Represents less than $500.

Net investment income and net realized gains/(losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the years ended December 31, 2009 and December 31, 2008 was as follows:

December 31, 2009   Ordinary
Income*		   Long-Term
Capital Gains		  
(in thousands)  
Columbia Acorn Fund   $ 20,981     $ —    
Columbia Acorn International     60,207       —    
Columbia Acorn USA     —       —    
Columbia Acorn International Select     3,533       —    
Columbia Acorn Select     —       —    
Columbia Thermostat Fund     122       —    
December 31, 2008   Ordinary
Income*		   Long-Term
Capital Gains		  
(in thousands)  
Columbia Acorn Fund   $ 24,585     $ 412,506    
Columbia Acorn International     32,574       74,297    
Columbia Acorn USA     9       53,514    
Columbia Acorn International Select     601       4,740    
Columbia Acorn Select     —       74,125    
Columbia Thermostat Fund     3,595       824    

 

*For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of December 31, 2009, the components of distributable earnings on a tax basis were as follows:

    Undistributed
Ordinary
Income		   Undistributed
Long-Term
Capital Gains		   Net Unrealized
Appreciation
(Depreciation)*		  
(in thousands)  
Columbia Acorn Fund   $ 13,908     $ —     $ 3,885,370    
Columbia Acorn International     78,049       —       1,017,469    
Columbia Acorn USA     —       —       284,766    
Columbia Acorn International
Select		     6,032       —       77,602    
Columbia Acorn Select     —       —       222,742    
Columbia Thermostat Fund     1,276       —       (1,424 )  

 

*The differences between book-basis and tax-basis net unrealized appreciation/(depreciation) are primarily due to deferral of losses from wash sales and PFIC adjustments.


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Columbia Acorn Family of Funds

Notes to Financial Statements, continued

The following capital loss carryforwards, determined as of December 31, 2009, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

    Year of Expiration      
    2010   2011-
2015		   2016   2017   Total  
(in thousands)  
Columbia
Acorn Fund		   $ —     $ —     $ —     $ 409,911     $ 409,911    
Columbia Acorn
International		     —       —       135,487       489,443       624,930    
Columbia
Acorn USA		     1,518 *     —       76,008       36,216       113,742    
Columbia Acorn
International Select		     —       —       30,442       46,457       76,899    
Columbia
Acorn Select		     —       —       12,271       115,445       127,716    
Columbia
Thermostat Fund		     —       —       5,193       21,738       26,931    

 

*Remains from Columbia Acorn USA's merger with Stein Roe Small Company Growth Fund on 7/26/2002. Utilization of Stein Roe Small Company Growth Fund's losses could be subject to limitations imposed by the Internal Revenue Code.

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of December 31, 2009, post-October currency and capital losses attributed to security transactions were deferred to January 1, 2010 as follows:

    Currency   Capital  
(in thousands)  
Columbia Acorn Fund   $ —     $ 6,311    
Columbia Acorn International     —       —    
Columbia Acorn USA     —       10,041    
Columbia Acorn International Select     —       1,985    
Columbia Acorn Select     95       —    
Columbia Thermostat Fund     —       624    

 

Management is required to determine whether a tax position of the Funds is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized by the Funds is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. However, management's conclusions 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). The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

4.  Transactions with Affiliates

CWAM is a wholly owned subsidiary of Columbia Management, which in turn is an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"). CWAM furnishes continuing investment supervision to the Funds and is responsible for the overall management of the Funds' business affairs.

Under each Fund's investment advisory agreement, management fees were accrued daily based on each Fund's average daily net assets and paid monthly to CWAM at the annual rates shown in the table below for each Fund.

Columbia Acorn Fund

Average Daily Net Assets   Annual
Fee Rate		  
Up to $700 million     0.74 %  
$700 million to $2 billion     0.69 %  
$2 billion to $6 billion     0.64 %  
$6 billion and over     0.63 %  

 

Columbia Acorn International

Average Daily Net Assets   Annual
Fee Rate		  
Up to $100 million     1.19 %  
$100 million to $500 million     0.94 %  
$500 million and over     0.74 %  

 

Columbia Acorn USA

Average Daily Net Assets   Annual
Fee Rate		  
Up to $200 million     0.94 %  
$200 million to $500 million     0.89 %  
$500 million to $2 billion     0.84 %  
$2 billion to $3 billion     0.80 %  
$3 billion and over     0.70 %  

 

Columbia Acorn International Select

Average Daily Net Assets   Annual
Fee Rate		  
Up to $500 million     0.94 %  
$500 million and over     0.90 %  

 

Columbia Acorn Select

Average Daily Net Assets   Annual
Fee Rate		  
Up to $700 million     0.85 %  
$700 million to $2 billion     0.80 %  
$2 billion to $3 billion     0.75 %  
$3 billion and over     0.70 %  

 

Columbia Thermostat Fund

    Annual
Fee Rate		  
All Average Daily Net Assets     0.10 %  

 


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For the year ended December 31, 2009, the Funds' effective investment advisory fee rates were as follows:

Columbia Acorn Fund     0.65 %  
Columbia Acorn International     0.78 %  
Columbia Acorn USA     0.87 %  
Columbia Acorn International Select     0.94 %  
Columbia Acorn Select     0.82 %  
Columbia Thermostat Fund     0.10 %  

 

>Expense Limit

CWAM has voluntarily agreed to reimburse the ordinary operating expenses (exclusive of distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts, if any) after giving effect to any balance credits from the Funds' custodian, exceeding 1.45% annually of the average daily net assets for Columbia Acorn International Select and 1.35% annually of the average daily net assets for Columbia Acorn Select. This arrangement may be modified or terminated by either the Funds or CWAM on 30 days notice.

CWAM has contractually agreed to waive fees and/or reimburse expenses of Columbia Thermostat Fund so that the ordinary operating expenses (exclusive of distribution and service fees, interest and fees on borrowings, and expenses associated with the Fund's investment in other investment companies, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, will not exceed 0.25% annually of the Fund's average daily net assets through April 30, 2010. There is no guarantee that this arrangement will continue thereafter.

Expenses reimbursed by CWAM to Columbia Acorn International Select and Columbia Thermostat Fund for year ended December 31, 2009, were $4,729 and $326,907, respectively.

CWAM provides administrative services and receives an administration fee from the Funds at the following annual rates:

Columbia Acorn Trust

Aggregate Average Daily
Net Assets of the Trust:		   Annual
Fee Rate		  
Up to $8 billion     0.050 %  
$8 billion to $16 billion     0.040 %  
$16 billion to $35 billion     0.030 %  
$35 billion to $45 billion     0.025 %  
$45 billion and over     0.015 %  

 

For the year ended December 31, 2009, each Fund's effective administration fee rate was 0.04% of average daily net assets. CWAM has delegated to Columbia Management Advisors, LLC, an indirect, wholly owned subsidiary of BOA, responsibility to provide certain sub-administrative services to the Funds.

Columbia Management Distributors, Inc. ("CMDI"), a wholly owned subsidiary of BOA, is the Funds' principal underwriter.

For the year ended December 31, 2009, Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA, Columbia Acorn International Select, Columbia Acorn Select and Columbia Thermostat Fund have been advised that CMDI retained $315,299 in underwriting discounts in connection with redemptions of Class A shares and received CDSCs of $1,896, $536,401 and $45,651, in connection with Class A, Class B and Class C share redemptions, respectively.

Each Fund has adopted a Rule 12b-1 (distribution and service) plan which requires it to pay CMDI a monthly service fee equal to 0.25% annually of the average daily net assets attributable to Class A, Class B and Class C shares and a monthly distribution fee equal to 0.50% and 0.75%, annually, of the average daily net assets attributable to Class B and Class C shares, respectively. CMDI receives no compensation with respect to Class Z shares.

Columbia Management Services, Inc. (the "Transfer Agent"), an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds. For such services, each Fund pays the Transfer Agent a monthly fee at the annual rate of $17.00 per account. The Transfer Agent also receives reimbursement for certain out-of-pocket expenses and sub-transfer agency expenses.

Certain officers and trustees of the Trust are also officers of CWAM. The Trust makes no direct payments to its officers and trustees who are affiliated with CWAM.

The Board of Trustees appointed a Chief Compliance Officer to the Trust in accordance with federal securities regulations. The Funds, along with other affiliated funds, pay their pro-rata share of the expenses associated with the Office of the Chief Compliance Officer. Those expenses are disclosed separately as "Chief compliance officer expenses" in the Statements of Operations.

The Trust offers a deferred compensation plan for its independent trustees. Under that plan, a trustee may elect to defer all or a portion of his or her compensation. Amounts deferred are retained by the Trust and may represent an unfunded obligation of the Trust. The value of amounts deferred is determined by reference to the change in value of Class Z shares of one or more series of the Trust or a money market fund specified by the trustee. Benefits under the deferred compensation plan are payable when the trustee ceases to be a member of the Board of Trustees.


85


Columbia Acorn Family of Funds

Notes to Financial Statements, continued

An affiliated person of a Fund may include any company in which a Fund owns five percent or more of its outstanding voting shares. On December 31, 2009, Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA and Columbia Acorn Select each held five percent or more of the outstanding voting securities of one or more companies. Details of investments in those affiliated companies are presented on pages 31, 32, 41, 52 and 63, respectively.

During the year ended December 31, 2009, the Funds engaged in purchase and sale transactions with funds that have a common investment advisor (or affiliated investment advisors), common directors/trustees, and/or common officers. Those transactions complied with Rule 17a-7 under the Investment Company Act of 1940 and were as follows:

    Purchases   Sales  
(in thousands)  
Columbia Acorn International   $ 7,422     $ —    
Columbia Acorn Select     —       1,655    

 

5.  Objectives and Strategies for Investing in Derivative Instruments

Columbia Acorn International uses derivatives instruments including forward foreign currency exchange contracts in order to meet its investment objectives. The Fund employs strategies in differing combinations to permit it to increase, decrease or change the level of exposure to market risk factors. The achievement of any strategy involving derivatives depends on analysis of various risk factors, and if the strategies for the use of derivatives do not work as intended, the Fund may not achieve its investment objectives.

In pursuit of its investment objectives, the Fund is exposed to the following market risk:

Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The U.S. dollar value of a foreign-currency-denominated security will decrease as the dollar appreciates against the currency, while the U.S. dollar value will increase as the dollar depreciates against the currency.

The following notes provide more detailed information about the derivative type held by the Columbia Acorn International:

Forward Foreign Currency Exchange Contracts

• The Fund entered into forward foreign currency exchange contracts to shift its investment exposure from one currency to another.

• The Fund used forward foreign currency exchange contracts to shift its U.S. dollar exposure in order to achieve a representative weighted mix of major currencies relative to its benchmark and/or to recover an underweight country exposure in its portfolio relative to its benchmark.

Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between the trade and settlement dates of the contract. The Fund may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. The Fund may also enter into these contracts to reduce the exposure to adverse price movements in certain other foreign-currency-denominated assets. Contracts to buy are used to acquire exposure to foreign currencies, while contracts to sell are used to reduce the exposure to foreign exchange rate fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become realized at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Fund's portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Fund could also be exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.

During the year ended December 31, 2009, Columbia Acorn International entered into 122 forward foreign currency exchange contracts.

The following table is a summary of the value of the Columbia Acorn International's derivative instruments as of December 31, 2009.

  Fair Value of Derivative Instruments

    Asset  
    Statement of Assets
and Liabilities 		  Fair
Value		  
(in thousands)  
  Unrealized appreciation on
forward foreign currency
exchange contracts 		  $ 6,689    

 


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    Liability  
    Statement of Assets
and Liabilities 		  Fair
Value		  
(in thousands)  
  Unrealized depreciation on
forward foreign currency
exchange contracts 		  $ (4,205 )  

 

The effect of derivative instruments on the Columbia Acorn International's Statement of Operations for the year ended December 31, 2009 was as follows:

Amount of Realized Gain or (Loss) and Change in Unrealized Appreciation or (Depreciation)
on Derivatives Recognized in Income

    Risk
Exposure		   Realized
Gain/(Loss)		   Change
in
Unrealized
Appreciation/
(Depreciation)		  
(in thousands)  
Forward foreign
currency
exchange
contracts 		  Foreign Exchange
Rate Risk		   $ 4,507     $ 5,763    

 

6.  Borrowing Arrangements

The Trust participated in a $150 million credit facility, along with another Trust managed by CWAM, which was entered into to facilitate portfolio liquidity. Under the facility, interest is charged to each participating fund based on its borrowings at a rate per annum equal to the higher of Federal Funds Rate or Overnight LIBOR plus 0.75%. In addition, a commitment fee of 0.12% per annum of the unutilized line of credit was accrued and apportioned among the participating funds based on their relative net assets. The commitment fee is included in "Other expenses" in the Statements of Operations. No amounts were borrowed by any Fund under this facility for the year ended December 31, 2009. The Trust enters into this line of credit for one year durations. The Trust has secured the line of credit for the entire year of 2010.

7.  Investment Transactions

The aggregate cost of purchases and proceeds from sales, other than short-term obligations, for the year ended December 31, 2009, were:

Columbia Acorn Fund

(in thousands)  
Investment securities      
Purchases   $ 3,110,424    
Proceeds from sales     3,561,995    

 

Columbia Acorn International

(in thousands)  
Investment securities      
Purchases   $ 1,154,358    
Proceeds from sales     1,014,864    

 

Columbia Acorn USA

(in thousands)  
Investment securities  
Purchases   $ 355,188    
Proceeds from sales     305,733    

 

Columbia Acorn International Select

(in thousands)  
Investment securities  
Purchases   $ 233,777    
Proceeds from sales     170,251    

 

Columbia Acorn Select

(in thousands)  
Investment securities  
Purchases   $ 280,494    
Proceeds from sales     568,076    

 

Columbia Thermostat Fund

(in thousands)  
Investment securities  
Purchases   $ 22,134    
Proceeds from sales     56,558    

 

8.  Redemption Fees

For the year ended December 31, 2009, the redemption fees imposed by Columbia Acorn International and Columbia Acorn International Select amounted to approximately $259,441 and $33,449, respectively, and are accounted for as additions to paid in capital.

9.  Regulatory Settlements with Third Parties

During the year ended December 31, 2009, Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA and Columbia Acorn International Select received payments totaling $39,819, $1,210,287, $4,593 and $265,461, respectively, representing distributions from a fair fund established in connection with a regulatory settlement between the Securities and Exchange Commission and a third party broker dealer relating to alleged market timing and late trading in mutual funds, including the Funds. The payments have been included in "Increase from regulatory settlements" on the Statements of Changes in Net Assets.

10.  Legal Proceedings

The Trust, CWAM and the Trustees of the Trust (collectively, the "Columbia defendants") are named as defendants in class and derivative complaints that have been consolidated in a Multi-District Action (the "MDL Action") in the federal district court of Maryland. These lawsuits contend that defendants permitted certain investors to market time their trades in certain Columbia Acorn Funds. The MDL Action is ongoing.


87


Columbia Acorn Family of Funds

Notes to Financial Statement, continued

However, all claims against the Trust and the independent trustees of the Trust have been dismissed.

The Trust and CWAM are also defendants in a class action lawsuit that alleges, in summary, that the Trust and CWAM exposed shareholders of Columbia Acorn International Fund to trading by market timers by allegedly: (a) failing to properly evaluate daily whether a significant event affecting the value of the Fund's securities had occurred after foreign markets had closed but before the calculation of the Fund's net asset value ("NAV"); (b) failing to implement the Fund's portfolio valuation and share pricing policies and procedures; and (c) failing to know and implement applicable rules and regulations concerning the calculation of NAV (the "Fair Valuation Lawsuit"). The Seventh Circuit ruled that the plaintiffs' state law claims were preempted under federal law resulting in the dismissal of plaintiffs' complaint. Plaintiffs appealed the Seventh Circuit's ruling to the United States Supreme Court. The Supreme Court reversed the Seventh Circuit's ruling on jurisdictional grounds and the case was ultimately remanded to the state court.

On March 21, 2005, a class action complaint was filed against the Trust and CWAM seeking to rescind the CDSC assessed upon redemption of Class B shares of Columbia Acorn Funds due to the alleged market timing of the Columbia Acorn Funds (the "CDSC Lawsuit"). In addition to the rescission of sales charges, plaintiffs seek recovery of actual damages, attorneys' fees and costs. The case had been transferred to the MDL Action in the federal district court of Maryland.

On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL Action, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL Action described above, including the CDSC and Fair Valuation Lawsuits. The settlement is subject to court approval.

Columbia Acorn Trust and CWAM intend to defend these suits vigorously.

CWAM believes that the lawsuits are not likely to materially affect its ability to provide investment management services to the Funds.


88



Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of
Columbia Acorn Trust:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Acorn Fund, Columbia Acorn International, Columbia Acorn USA, Columbia Acorn International Select, Columbia Acorn Select and Columbia Thermostat Fund (each a series of the Columbia Acorn Trust, hereinafter referred to as the "Funds") at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Chicago, Illinois
February 18, 2010


89


Columbia Acorn Family of Funds

Federal Income Tax Information (in thousands) (unaudited) — Class A, B, C and Z shares

Columbia Acorn Fund

100.00% of the ordinary income distributed by the Fund, for the fiscal year ended December 31, 2009 qualified for the corporate dividends received deduction.

For non-corporate shareholders 100.00%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.

Columbia Acorn International

Foreign taxes paid during the fiscal year ended December 31, 2009, of $6,483 are being passed through to shareholders. This represents $0.05 per share. Eligible shareholders may claim this amount as a foreign tax credit.

Gross income derived from sources within foreign countries was $81,906 ($0.63 per share) for the fiscal year ended December 31, 2009.

For non-corporate shareholders 82.95%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.

Columbia Acorn International Select

Foreign taxes paid during the fiscal year ended December 31, 2009, of $521 are being passed through to shareholders. This represents $0.03 per share. Eligible shareholders may claim this amount as a foreign tax credit.

Gross income derived from sources within foreign countries was $6,377 ($0.37 per share) for the fiscal year ended December 31, 2009.

13.08% of the ordinary income distributed by the Fund, for the fiscal year ended December 31, 2009 qualified for the corporate dividends received deduction.

For non-corporate shareholders 100.00%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.

Columbia Thermostat Fund

100.00% of the ordinary income distributed by the Fund for the fiscal year ended December 31, 2009, qualifies for the corporate dividends received deduction.

For non-corporate shareholders, 100.00% or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of the ordinary income distributed by the Fund for the fiscal year ended December 31, 2009 may represent qualified dividend income.


90



Board of Trustees and Management of
Columbia Acorn Funds

Each trustee may serve a term of unlimited duration. The Trust's By-laws generally require that a trustee retire at the end of the calendar year in which the trustee attains the age of 75 years. The trustees appoint their own successors, provided that at least two-thirds of the trustees, after such appointment, have been elected by shareholders. Shareholders may remove a trustee, with or without cause, upon the vote of two-thirds of the Trust's outstanding shares at any meeting called for that purpose. A trustee may be removed, with or without cause, upon the vote of a majority of the trustees. The names of the trustees and officers of the Trust, the date each was first elected or appointed to office, their principal business occupations during at least the last five years, number of portfolios in the fund complex they oversee, and other directorships they hold, are shown below. Each trustee serves in such capacity for each of the six series of Columbia Acorn Trust and for each of the four series of Wanger Advisors Trust.

The address for the trustees and officers of the Trust is Columbia Wanger Asset Management, L.P., 227 West Monroe Street, Suite 3000, Chicago, Illinois 60606. The Funds' Statement of Additional Information includes additional information about the Funds' trustees and officers. You may obtain a free copy of the Statement of Additional Information by writing or calling toll-free:

Columbia Wanger Asset Management, L.P.
Shareholder Services Group
227 W. Monroe, Suite 3000
Chicago IL 60606
1-800-922-6769

Name, Position(s)
with Columbia Acorn
Trust and Age at
December 31, 2009		   Year First
Elected or
Appointed
to Office*		   Principal Occupation(s)
during
Past Five Years		   Number of
Portfolios in
Fund Complex
Overseen by
Trustee/Officer		   Other
Directorships
in addition to
Columbia Acorn Trust		  
Trustees who are not interested persons of Columbia Acorn Trust:      
Laura M. Born, 44,
Trustee		     2007     Adjunct Assistant Professor of Finance, University of Chicago Booth School of Business; formerly, Managing Director – Investment Banking, J.P. Morgan Chase & Co. (broker/dealer) 2002-2007.     10     Wanger Advisors Trust  
Michelle L. Collins, 49,
Trustee		     2008     President, Cambium LLC (financial advisory firm) since 2007; Advisory Board Member, Svoboda Capital Partners LLC (private equity firm) since 2007; Managing Director Svoboda Capital Partners LLC, 1998-2006.     10     Wanger Advisors Trust; Bucyrus International, Inc. (mining equipment manufacturer); Molex, Inc. (electronics components manufacturer).  
Maureen M. Culhane, 61,
Trustee		     2007     Retired. Formerly, Vice President, Goldman Sachs Asset Management, L.P. (investment advisor), 2005-2007, and Vice President (Consultant) – Strategic Relationship Management, Goldman Sachs AG, 1999-2005.     10     Wanger Advisors Trust  
Margaret M. Eisen, 56,
Trustee		     2002     Chief Investment Officer, EAM International LLC (corporate finance and asset management) since 2003; Managing Director, CFA Institute, 2005-2008.     10     Wanger Advisors Trust; Antigenics, Inc. (biotechnology and pharmaceuticals) (until June 2009).  
Jerome Kahn, Jr., 75,(1)
Trustee		     1987     Portfolio manager and stock analyst; formerly, President, William Harris Investors, Inc. (investment advisor).     10     Wanger Advisors Trust  
Steven N. Kaplan, 50,
Trustee and Vice Chairman of the Board		     1999     Neubauer Family Professor of Entrepreneurship and Finance, University of Chicago Booth School of Business.     10     Wanger Advisors Trust; Accretive Health, Inc. (healthcare management services provider); Morningstar, Inc. (provider of independent investment research).  
David C. Kleinman, 74,
Trustee		     1972     Adjunct Professor of Strategic Management, University of Chicago Booth School of Business; business consultant.     10     Wanger Advisors Trust; Sonic Foundry, Inc. (rich media systems and software).  
Allan B. Muchin, 73,
Trustee		     1998     Chairman Emeritus, Katten Muchin Rosenman LLP (law firm).     10     Wanger Advisors Trust  

 


91


Name, Position(s)
with Columbia Acorn
Trust and Age at
December 31, 2009		   Year First
Elected or
Appointed
to Office*		   Principal Occupation(s)
during
Past Five Years		   Number of
Portfolios in
Fund Complex
Overseen by
Trustee/Officer		   Other
Directorships
in addition to
Columbia Acorn Trust		  
Trustees who are not interested persons of Columbia Acorn Trust: (continued)      
James A. Star, 48,
Trustee and Chairman of the Board		     2006     President, Longview Asset Management LLC (investment advisor) since 2003; Director, Traush Industries (privately-owned manufacturer of refrigeration parts and products).     10     Wanger Advisors Trust  
John A. Wing, 74,
Trustee		     2002     Partner, Dancing Lion Partners (investment firm); prior thereto, Frank Wakely Gunsaulus Professor of Law and Finance and Chairman of the Center for the Study of Law and Financial Markets, Illinois Institute of Technology; formerly, Chairman of the Board and Chief Executive Officer, ABN-AMRO Inc. (formerly named The Chicago Corporation, a financial services firm) and Chief Executive Officer, Market Liquidity Network, LLC.     10     Wanger Advisors Trust; First Chicago Bank and Trust; First Chicago Bancorp.  
Trustees who are interested persons of Columbia Acorn Trust:      
Charles P. McQuaid, 56,
Trustee and President(2)		     1992     President and Chief Investment Officer, CWAM or its predecessors, since October 2003; associated with CWAM or its predecessors since 1978.     10     Wanger Advisors Trust  
Ralph Wanger, 75,
Trustee(3)		     1970     Founder, CWAM. Formerly, President, Chief Investment Officer and portfolio manager, CWAM or its predecessors, July 1992 – September 2003; Director, Wanger Investment Company PLC; Consultant, CWAM or its predecessors, September 2003 – September 2005.     10     Wanger Advisors Trust  
Officers of Columbia Acorn Trust:      
Ben Andrews, 43,
Vice President		     2004     Portfolio manager and analyst, CWAM or its predecessors, since 1998; Vice President, Columbia Acorn Trust and Wanger Advisors Trust since 2004.     10     None  
Michael G. Clarke, 40,
Assistant Treasurer		     2004     Senior Vice President and Chief Financial Officer of certain Columbia Funds since January 2009; Treasurer of certain Columbia Funds from June 2008 – January 2009; Deputy Treasurer of certain Columbia Funds since June 2008; Chief Accounting Officer and Assistant Treasurer, the Columbia Funds, October 2004 to May 2008; Director of Fund Administration, Columbia Management Advisors, LLC, since January 2006; Managing Director, Columbia Management Advisors, LLC, September 2004 – December 2005.     10     None  
Jeffrey Coleman, 40,
Assistant Treasurer		     2006     Treasurer of certain Columbia Funds since June 2008; Director of Fund Administration, CWAM, since January 2006; Fund Controller, CWAM or its predecessors, October 2004 – January 2006.     10     None  
P. Zachary Egan, 41,
Vice President		     2003     Director of International Research, CWAM or its predecessors, since December 2004; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2007; portfolio manager and analyst, CWAM or its predecessors, since 1999.     10     None  
Peter T. Fariel, 52,
Assistant Secretary		     2006     Associate General Counsel, Bank of America Corporation, since April 2005; prior thereto, Partner, Goodwin Procter LLP (law firm).     10     None  

 


92


Name, Position(s)
with Columbia Acorn
Trust and Age at
December 31, 2009		   Year First
Elected or
Appointed
to Office*		   Principal Occupation(s)
during
Past Five Years		   Number of
Portfolios in
Fund Complex
Overseen by
Trustee/Officer		   Other
Directorships
in addition to
Columbia Acorn Trust		  
Officers of Columbia Acorn Trust: (continued)      
John Kunka, 39,
Assistant Treasurer		     2006     Director of Accounting and Operations, CWAM or its predecessors, since May 2006; Manager of Mutual Fund Operations, Calamos Advisors, Inc. (investment advisor), September 2005 – May 2006; prior thereto, Manager of Mutual Fund Administration, Van Kampen Investments.     10     None  
Joseph C. LaPalm, 40,
Vice President		     2006     Chief Compliance Officer, CWAM since 2005; prior thereto, compliance officer, William Blair & Company (investment firm).     10     None  
Bruce H. Lauer, 52,
Vice President, Secretary and Treasurer		     1995     Chief Operating Officer, CWAM or its predecessors, since April 2000; Vice President, Secretary and Treasurer, Columbia Acorn Trust and Wanger Advisors Trust, since 1995; Director, Wanger Investment Company PLC; Director, Banc of America Capital Management (Ireland) Ltd.; Director, Bank of America Global Liquidity Funds, PLC.     10     None  
Louis J. Mendes III, 45,
Vice President		     2003     Portfolio manager and analyst, CWAM or its predecessors, since 2001; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2005.     10     None  
Robert A. Mohn, 48,
Vice President		     1997     Director of Domestic Research, CWAM or its predecessors, since March 2004; Vice President, Columbia Acorn Trust and Wanger Advisors Trust, since 1997; portfolio manager and analyst, CWAM or its predecessors, since August 1992.     10     None  
Christopher J. Olson, 45,
Vice President		     2001     Portfolio manager and analyst, CWAM or its predecessors, since January 2001; Vice President, Columbia Acorn Trust and Wanger Advisors Trust, since 2001.     10     None  
Robert P. Scales, 57,
Chief Compliance Officer, Chief Legal Officer, Senior Vice President and General Counsel		     2004     Chief Compliance Officer, Chief Legal Officer, Senior Vice President and General Counsel, Columbia Acorn Trust and Wanger Advisors Trust, since 2004.     10     None  
Linda Roth-Wiszowaty, 40,
Assistant Secretary		     2006     Business support analyst, CWAM, since April 2007; prior thereto executive administrator, CWAM or its predecessors, and executive assistant to the Chief Operating Officer of CWAM or its predecessors.     10     None  

 

*  Dates prior to April 1992 correspond to the date of first election or appointment as a trustee or officers of The Acorn Fund, Inc., the predecessor trust to Columbia Acorn Trust.

(1)  Mr. Kahn retired at the end of calendar year 2009.

(2)  Mr. McQuaid is an "interested person" of Columbia Acorn Trust and of CWAM, as defined in the Investment Company Act of 1940 because he is an officer of the Trust and of CWAM.

(3)  Mr. Wanger is an "interested person" of Columbia Acorn Trust and of CWAM, as defined in the Investment Company Act of 1940 because, as of December 31, 2009, he owned securities issued by a controlling person of CWAM and was a consultant to CWAM within the most recently completed five fiscal years.


93


Columbia Acorn Family of Funds

Fourth Quarter Class A, B and C Share Information

Minimum Initial Investment in
all Funds
 		  $2,500
 $1,000 for an IRA		  
Minimum Subsequent
Investment in all Funds		   $50  
Exchange Fee   None  

 

Columbia Acorn Fund   Class A   Class B*   Class C  
Management Fees     0.65 %     0.65 %     0.65 %  
Distribution and Service (12b-1) Fees     0.25 %     0.75 %     1.00 %  
Other Expenses     0.17 %     0.34 %     0.24 %  
Net Expense Ratio     1.07 %     1.74 %     1.89 %  
Columbia Acorn International   Class A   Class B*   Class C  
Management Fees     0.78 %     0.78 %     0.78 %  
Distribution and Service (12b-1) Fees     0.25 %     0.75 %     1.00 %  
Other Expenses     0.33 %     0.50 %     0.39 %  
Net Expense Ratio     1.36 %     2.03 %     2.17 %  
Columbia Acorn USA   Class A   Class B*   Class C  
Management Fees     0.87 %     0.87 %     0.87 %  
Distribution and Service (12b-1) Fees     0.25 %     0.75 %     1.00 %  
Other Expenses     0.20 %     0.40 %     0.26 %  
Net Expense Ratio     1.32 %     2.02 %     2.13 %  
Columbia Acorn International Select   Class A   Class B*   Class C  
Management Fees     0.94 %     0.94 %     0.94 %  
Distribution and Service (12b-1) Fees     0.25 %     0.75 %     1.00 %  
Other Expenses     0.38 %     0.51 %     0.48 %  
Net Expense Ratio     1.57 %     2.20 %     2.42 %  
Columbia Acorn Select   Class A   Class B*   Class C  
Management Fees     0.82 %     0.82 %     0.82 %  
Distribution and Service (12b-1) Fees     0.25 %     0.75 %     1.00 %  
Other Expenses     0.23 %     0.44 %     0.32 %  
Net Expense Ratio     1.30 %     2.01 %     2.14 %  
Columbia Thermostat Fund   Class A   Class B*   Class C  
Management Fees     0.10 %     0.10 %     0.10 %  
Distribution and Service (12b-1) Fees     0.25 %     0.75 %     1.00 %  
Other Expenses**     0.15 %     0.15 %     0.15 %  
Net Expense Ratio     0.50 %     1.00 %     1.25 %  

 

    Fees and expenses are for the twelve months ended December 31, 2009. Some share classes of Columbia Acorn Select and Columbia Acorn International Select Funds include the effect of CWAM's voluntary undertaking to waive fees and/or reimburse the Funds for any ordinary operating expenses (exclusive of distribution and service fees, brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Funds' custodian, in excess of the annual rate of 1.35% and 1.45%, respectively, of the average daily net assets. These arrangements may be modified or terminated by either the Funds or CWAM upon 30 days notice. Columbia Thermostat Fund's fees and expenses include the effect of CWAM's contractual undertaking to waive fees and/or reimburse the Fund for any ordinary operating expenses (exclusive of distribution and service fees, interest and fees on borrowings, and expenses associated with the Fund's investment in other investment companies, but including custodian charges relating to overdrafts, if any), after giving effect to any balance credits from the Fund's custodian, in excess of the annual rate of 0.25% of the average daily net assets. Columbia Thermostat Fund's reimbursement arrangement is contractual through April 30, 2010. There is no guarantee that this arrangement will continue thereafter.

  *  The Funds no longer offer Class B shares (other than through dividend reinvestment).

  **  Does not include estimated fees and expenses of 0.82% incurred by the Fund from the underlying portfolio funds in which it invests.


94



Columbia Acorn Family of Funds

Investment Advisor

Columbia Wanger Asset Management, L.P.
227 West Monroe Street, Suite 3000
Chicago, Illinois 60606

1-800-922-6769

Distributor

Columbia Management Distributors, Inc.
One Financial Center
Boston, Massachusetts 02111-2621

Transfer Agent, Dividend Disbursing Agent

Columbia Management Services, Inc.
P. O. Box 8081
Boston, Massachusetts 02266-8081

1-800-345-6611

Legal Counsel to the Funds

K&L Gates LLP
Washington, DC

Legal Counsel to the Independent Trustees

Drinker Biddle & Reath LLP
Philadelphia, Pennsylvania

Independent Registered Public Accounting Firm

PricewaterhouseCoopers LLP
Chicago, Illinois

This report, including the schedules of investments, is submitted for the general information of the shareholders of Columbia Acorn Trust.

A description of the policies and procedures that the Funds use to determine how to vote proxies and a copy of the Funds' voting record are available (i) without charge, upon request, by calling 800-922-6769 and (ii) on the Securities and Exchange Commission's website at www.sec.gov. Information regarding how the Funds voted proxies relating to portfolio securities during the 12-month period ended June 30, 2009, is available from the SEC's website. Information regarding how the Funds voted proxies relating to portfolio securities is also available at http://institutional.columbiamanagement.com.

The Funds file a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Funds' complete portfolio holdings are disclosed at www.columbiafunds.com, approximately 30 days after each month-end.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the Fund, contact your Columbia Management representative or financial advisor or go to www.columbiamanagement.com.

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Columbia Wanger Asset Management, L.P. ("CWAM") is a registered investment advisor and an indirect, wholly owned subsidiary of Bank of America Corporation. CWAM is part of Columbia Management.

Find out what's new – visit our web site at:

www.columbiafunds.com

Our e-mail address is:

ServiceInquiries@ColumbiaManagement.com

Shareholders should not include personal information such as account numbers, Social Security numbers or taxpayer identification numbers in e-mail. We are unable to accept account transactions sent via e-mail.



PRESORTED

FIRST-CLASS MAIL

U.S. POSTAGE PAID

HOLLISTON, MA

PERMIT NO. 20

Columbia Management®

Columbia Acorn Family of Funds

Class A, B and C Shares

Annual Report, December 31, 2009

For More Information

You'll find more information about the Columbia Acorn Family Funds in the documents described below. Contact Columbia Funds as follows to obtain these documents free of charge:

By Mail:  Columbia Funds
c/o Columbia Management Services, Inc.
P.O. Box 8081
Boston, MA 02266-8081

By Telephone: 800.345.6611

Online: www.columbiafunds.com

Shareholder Communications with the Board

The Funds' Board of Trustees has adopted procedures by which shareholders may communicate with the Board. Shareholders who wish to communicate with the Board should send their written communications to the Board by mail, c/o Columbia Wanger Asset Management, L.P., 227 West Monroe Street, Suite 3000, Chicago, Illinois 60606, Attention: Secretary. Shareholder communications must (i) be in writing, (ii) identify the Columbia Acorn Fund to which the communication relates and (iii) state the particular class of shares and number of shares held by the communicating shareholder.

Prospectuses and the Statement of Additional Information (SAI)

The prospectuses and the SAI provide more detailed information about the Funds and their policies. The SAI is legally part of each prospectus (it's incorporated by reference). A copy of each has been filed with the SEC.

Information Provided by the SEC

You can review and copy information about the Funds (including their prospectuses, the SAI and shareholder reports) at the SEC's Public Reference Room in Washington, DC. To find out more about the operation of the Public Reference Room, call the SEC at 202.551.8090. Reports and other information about the Fund are also available in the EDGAR Database on the SEC's website at http://www.sec.gov, or you can receive copies of this information, for a fee, by electronic request at the following e-mail address: publicinfo@sec.gov. You can also obtain copies of this information by writing the Public Reference Section, Securities and Exchange Commission, Washington, DC 20549-0102.

The investment company registration number of Columbia Acorn Trust, of which each of these Funds are a series, is 811-01829.

© 2010 Columbia Management Distributors, Inc.

One Financial Center, Boston, MA 02111-2621

800.345.6611 www.columbiamanagement.com

SHC-42/30133 1209 10/D6A5X0



 

Item 2. Code of Ethics.

 

(a)          The registrant has, as of the end of the period covered by this report, adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

 

(b)         During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above.

 

(c)          During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics described in 2(a) above that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

 

Item 3. Audit Committee Financial Expert.

 

The registrant’s Board of Trustees has determined that Laura M. Born, Michelle L. Collins and David C. Kleinman, each of whom are members of the registrant’s Board of Trustees and Audit Committee, each qualify as an audit committee financial expert.  Ms. Born, Ms. Collins and Mr. Kleinman are each independent trustees, as defined in paragraph (a)(2) of this item’s instructions.

 

Item 4. Principal Accountant Fees and Services.

 

(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended December 31, 2009 and December 31, 2008 are approximately as follows:

 

2009

 

2008

 

$

215,300

 

$

215,300

 

 

Audit Fees include amounts related to the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.

 


 

(b) Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended December 31, 2009 and December 31, 2008 are approximately as follows:

 

2009

 

2008

 

$

11,000

 

$

41,000

 

 

Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported in Audit Fees above.  In fiscal years 2009 and 2008, Audit-Related Fees consist of agreed-upon procedures performed for other audit-related additional testing.

 

During the fiscal years ended December 31, 2009 and December 31, 2008, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.

 

(c) Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended December 31, 2009 and December 31, 2008 are approximately as follows:

 

2009

 

2008

 

$

40,600

 

$

41,400

 

 

Tax Fees incurred in both fiscal years 2009 and 2008 relate to the review of annual tax returns, the review of required shareholder distribution calculations and include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.

 

During the fiscal years ended December 31, 2009 and December 31, 2008, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.

 

(d) All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended December 31, 2009 and December 31, 2008 are as follows:

 


 

2009

 

2008

 

$

0

 

$

0

 

 

All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.

 

Aggregate All Other Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended December 31, 2009 and December 31, 2008 are approximately as follows:

 

2009

 

2008

 

$

67,900

 

$

136,100

 

 

In both fiscal years 2009 and 2008, All Other Fees consist of professional services rendered for internal control reviews of the registrant’s transfer agent.

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures

 

The policy of the registrant’s Audit Committee is to specifically pre-approve (i) all audit and non-audit (including audit related, tax and all other) services provided by the registrant’s independent auditor to the registrant and individual funds (collectively “Fund Services”) and (ii) all non-audit services provided by the registrant’s independent auditor to the funds’ adviser or a control affiliate of the adviser, that relate directly to the funds’ operations and financial reporting (collectively “Fund-related Adviser Services”).  A “control affiliate” is an entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the funds, and the term “adviser” is deemed to exclude any unaffiliated sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser.

 

If such Fund Services or Fund-related Adviser Services are required during the period between the Audit Committee’s regularly scheduled meetings, the Chairman of the Audit Committee has the authority to pre-approve the service, with reporting to the full Audit Committee at the next regularly scheduled meeting.

 

The Audit Committee will waive pre-approval of Fund Services or Fund-related Adviser Services provided that the requirements under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are met.

 

(e)(2) The percentage of services described in paragraphs (b) through (d) of this Item approved pursuant to the “de minimis” exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during both fiscal years ended December 31, 2009 and December 31, 2008 was zero.

 


 

(f) Not applicable.

 

(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal years ended December 31, 2009 and December 31, 2008 are approximately as follows:

 

2009

 

2008

 

$

119,500

 

$

218,500

 

 

(h) The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6. Investments

 

(a)          The registrant’s “Schedule I — Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.

 

(b)         Not applicable

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 


 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

Not applicable.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, since those procedures were last disclosed in response to requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A) or this Item.

 

Item 11. Controls and Procedures.

 

(a)          The registrant’s principal executive officer and principal financial officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

(b)         There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.

 

(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

 

(a)(3) Not applicable.

 

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(registrant)

Columbia Acorn Trust

 

 

 

By (Signature and Title)

/s/ Charles P. McQuaid

 

 

Charles P. McQuaid, President

 

 

 

 

 

Date

February 19, 2010

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By (Signature and Title)

/s/ Charles P. McQuaid

 

 

Charles P. McQuaid, President

 

 

 

 

 

Date

February 19, 2010

 

 

 

By (Signature and Title)

/s/ Bruce H. Lauer

 

 

Bruce H. Lauer, Treasurer

 

 

 

 

 

Date

February 19, 2010