N-CSR 1 d356105dncsr.htm COLUMBIA ACORN TRUST COLUMBIA ACORN TRUST
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01829

 

 

Columbia Acorn Trust

(Exact name of registrant as specified in charter)

 

 

227 W. Monroe Street

Suite 3000

Chicago, IL 60606

(Address of principal executive offices) (Zip code)

 

 

Mary C. Moynihan

Perkins Coie LLP

700 13th Street, NW

Suite 600

Washington, DC 20005

Paul B. Goucher, Esq.

Columbia Management Investment Advisers, LLC

100 Park Avenue

New York, New York 10017

P. Zachary Egan

Columbia Acorn Trust

227 West Monroe Street, Suite 3000

Chicago, Illinois 60606

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (312) 634-9200

Date of fiscal year end: December 31

Date of reporting period: December 31, 2016

 

 

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

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

 

 

 


Table of Contents

Item 1. Reports to Stockholders.


Table of Contents
Annual Report
December 31, 2016
Columbia Acorn® Fund
Columbia Acorn International®
Columbia Acorn USA®
Columbia Acorn International SelectSM
Columbia Acorn SelectSM
Columbia Thermostat FundSM
Columbia Acorn Emerging Markets FundSM
Columbia Acorn European FundSM
Not FDIC Insured • No bank guarantee • May lose value


Table of Contents
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Columbia Acorn Family of Funds   |  Annual Report 2016


Table of Contents
Fund at a glance
Columbia Acorn® Fund
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
P. Zachary Egan
Co-Portfolio Manager
Fritz Kaegi
Co-Portfolio Manager
Matthew A. Litfin
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years 10 Years Life
Class A Excluding sales charges 10/16/00 10.06 10.76 6.20 13.76
  Including sales charges   3.70 9.46 5.57 13.61
Class C Excluding sales charges 10/16/00 9.29 9.98 5.40 12.89
  Including sales charges   8.66 9.98 5.40 12.89
Class I 09/27/10 10.44 11.15 6.55 14.13
Class R4 11/08/12 10.32 11.01 6.48 14.12
Class R5 11/08/12 10.43 11.11 6.52 14.13
Class Y 11/08/12 10.50 11.16 6.55 14.13
Class Z 06/10/70 10.39 11.08 6.51 14.12
Russell 2500 Index   17.59 14.54 7.69 N/A
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 0.82% for Class Z shares and 1.07% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The 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.
Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.
4 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Fund at a glance  (continued)
Columbia Acorn® Fund
The Growth of a $10,000 Investment in Columbia Acorn® Fund Class Z Shares
June 10, 1970 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period. 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.
Top ten holdings (%) (at December 31, 2016)  
Align Technology, Inc.
Invisalign System to Correct Malocclusion (Crooked Teeth)
2.4
Education Realty Trust, Inc.
Student Housing
1.7
Wageworks, Inc.
Healthcare Consumer Directed Benefits & Commuter Account Management
1.7
Lazard Ltd., Class A
Corporate Advisory & Asset Management
1.6
Raymond James Financial, Inc.
Full Service Wealth Management
1.6
HealthSouth Corp.
Inpatient Rehabilitation Facilities & Home Health Care
1.6
Toro Co. (The)
Turf Maintenance Equipment
1.5
Vantiv, Inc., Class A
Credit Card Processor
1.4
Pra Health Sciences, Inc.
Contract Research Organization
1.3
MB Financial, Inc.
Chicago Bank
1.3
Percentages indicated are based upon total investments (excluding Money Market Funds and Securities Lending Collateral).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Portfolio breakdown (%) (at December 31, 2016)
Common Stocks 97.5
Money Market Funds 0.4
Securities Lending Collateral 2.1
Total 100.0
Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 14.6
Consumer Staples 2.0
Energy 3.7
Financials 17.1
Health Care 20.0
Industrials 19.5
Information Technology 15.0
Materials 1.8
Real Estate 4.7
Telecommunication Services 1.6
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
Columbia Acorn Family of Funds  | Annual Report 2016
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Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn® Fund
P. Zachary Egan
Co-Portfolio Manager
Fritz Kaegi
Co-Portfolio Manager
Matthew A. Litfin
Lead Portfolio Manager
Columbia Acorn Fund Class Z shares gained 10.39% in 2016. While it had a strong absolute return, the Fund fell short of its primary benchmark, the Russell 2500 Index, which gained 17.59%. The benchmark’s more core orientation benefited from strength in value stocks throughout the year. In comparison to the Fund’s more growth-oriented Morningstar Mid-Cap Growth peer group, Columbia Acorn Fund beat the category average return of 6.03% by 436 basis points (a basis point is 1/100th of a percent). We feel 2016 was a positive year for the Fund’s small/mid-cap growth strategy and are pleased with its solid absolute return in a market that largely favored value strategies. Fund relative performance benefited from good stock selection in the consumer discretionary sector, but was dragged down by investments in the financial and information technology sectors.
The health care sector is inherently risky and often complicated by political volatility and regulatory hurdles, so it was not surprising that the sector came under pressure following the U.S. presidential election on concerns about changes proposed by the new administration. The Fund saw a significant impact from health care holdings both at the top and the bottom end of the performance scale. On the downside in the sector, Celldex Therapeutics, a biotech developing cancer drugs, fell following a failed drug trial early in the year and a lack of news flow kept the stock depressed, resulting in a 78% decline for the year. Down 37% in the Fund, orphan drug developer Ultragenyx Pharmaceutical also declined with the sector and on concerns about drug prices.
There is still a great deal of strategic interest from acquirers within the health care sector, as evidenced by Medivation, a developer and marketer of cancer drugs. Its stock rose 173% for the year, gaining on news that French drug company Sanofi wanted to acquire the company at a significant premium. Sanofi lost out to Pfizer, however, which acquired the company at a price well above Sanofi’s initial offer. Up 46%, Align Technology, the maker of the Invisalign system used to straighten teeth, gained as the company continued to take business away from traditional braces with its clear
plastic retainers.
In the real estate sector, Jones Lang LaSalle, a provider of real estate services, fell 37% in 2016. The company struggled early in the year on concerns of a decline in commercial real estate transaction and leasing volumes in China, concerns that broadened to include the United Kingdom and Europe following the Brexit vote.
Industrials benefited from the “Trump bump” following the election, particularly companies with larger U.S. tax exposure. Up 55%, Toro, a well-known name in lawn care equipment, reported strong quarterly earnings and positive initial 2017 guidance driven primarily by excellent operational execution. New to the Fund this year, WageWorks, a provider of health care consumer-directed benefits and commuter account management, falls within the industrial sector and gained 41% on news of its acquisition of ADP’s customer-directed benefits business. This acquisition is expected to have significant upside, and the company also benefited from positive 2017 enrollment trends.
Through enhancements to our long-standing, research-driven process, the number of new stock ideas added to Columbia Acorn Fund increased in 2016. The 58 new ideas that were added—which compares to 25 new ideas added in 2015—represented 38% of the Fund’s market value at year end. Looking at Fund and benchmark comparative data for earnings-per-share growth, long-term debt to capitalization and return on invested capital, the portfolio now holds higher quality and faster growing names. We believe we are offering Fund shareholders a portfolio of the best U.S. small- to mid-caps available. We do not anticipate the same level of turnover will continue in 2017, but we will continue to look for opportunities to add what we believe to be superior smaller growth names to the portfolio.
While we do not generally make large shifts in the Fund based on macroeconomic events, we did consider Fund positioning and the anticipated impact of a Trump presidency. We took advantage of the downturn in health care to increase the Fund’s overweight in the sector. We believe that there are many compelling investment areas in health care that will not be impacted significantly by the changes proposed by the new administration. While still an underweight position versus the benchmark, we did
 
 
6 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance  (continued)
Columbia Acorn® Fund
increase exposure to financials in the quarter, specifically to banks that are likely to benefit from higher interest rates. With the potential for interest rates to rise, we maintained the Fund’s large underweights in utilities and real estate, areas that are generally negatively impacted by higher rates and that also lack the growth potential that we look for in Fund holdings.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than investments in larger, more established companies. Foreign investments subject the Fund to political, economic, market, social and other risks within a particular country, as well as to potential currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. Risks are enhanced for emerging market issuers. The Fund may invest significantly in issuers within a particular sector, which may be negatively affected by market, economic or other conditions, making the Fund more vulnerable to unfavorable developments in the sector.
Columbia Acorn Family of Funds  | Annual Report 2016
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Table of Contents
Fund at a glance
Columbia Acorn International®
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
P. Zachary Egan
Co-Portfolio Manager
Louis J. Mendes
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years 10 Years Life
Class A Excluding sales charges 10/16/00 -2.51 6.24 2.99 9.37
  Including sales charges   -8.10 5.00 2.39 9.10
Class B Excluding sales charges 10/16/00 -3.11 5.44 2.28 8.65
  Including sales charges   -7.93 5.11 2.28 8.65
Class C Excluding sales charges 10/16/00 -3.26 5.45 2.21 8.56
  Including sales charges   -4.22 5.45 2.21 8.56
Class I 09/27/10 -2.18 6.64 3.38 9.80
Class R 08/02/11 -2.82 5.86 2.67 9.08
Class R4 11/08/12 -2.32 6.48 3.30 9.76
Class R5 08/02/11 -2.23 6.58 3.34 9.77
Class Y 11/08/12 -2.19 6.62 3.36 9.79
Class Z 09/23/92 -2.28 6.54 3.33 9.77
MSCI ACWI ex USA SMID Cap Index (Net)   3.57 6.99 2.18 N/A
S&P Global ex-U.S. Between $500M and $5B Index   6.73 7.89 3.57 7.90
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class B shares are shown with and without the applicable contingent deferred sales charge (CDSC) of 5.00% in the first year, declining to 1.00% in the sixth year and eliminated thereafter. Returns for Class C shares are shown with and without the maximum CDSC of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 0.99% for Class Z shares and 1.24% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The MSCI ACWI ex USA SMID Cap Index (Net) captures a mid- and small-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 23 emerging market countries. The index covers approximately 28% of the free float-adjusted market capitalization in each country.
The S&P Global ex-U.S. Between $500M and $5B® Index is a subset of the broad market selected by the index sponsor that represents 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.
8 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Fund at a glance  (continued)
Columbia Acorn International®
The Growth of a $10,000 Investment in Columbia Acorn International® Class Z Shares
September 23, 1992 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period. A $10,000 investment in Columbia Acorn International at inception appreciated to $15,870 on May 31, 1994, the inception date of the MSCI ACWI ex USA SMID Cap Index (Net). For comparison with the MSCI ACWI ex USA SMID Cap Index (Net), we assigned the index the same value as the Fund at index inception.
Top ten holdings (%) (at December 31, 2016)  
CCL Industries, Inc. (Canada)
Global Label Converter
2.4
Hexagon AB, Class B (Sweden)
Design, Measurement & Visualization Software & Equipment
2.1
Partners Group Holding AG (Switzerland)
Private Markets Asset Management
2.0
Wirecard AG (Germany)
Online Payment Processing & Risk Management
1.8
Rightmove PLC (United Kingdom)
Internet Real Estate Listings
1.8
Domino’s Pizza Enterprises Ltd. (Australia)
Domino’s Pizza Operator in Australia & New Zealand
1.6
Kindred Group PLC (Malta)
European Online Gaming Operator
1.5
Zee Entertainment Enterprises Ltd. (India)
Indian Programmer of Pay Television Content
1.5
Aalberts Industries NV (Netherlands)
Flow Control & Heat Treatment
1.5
MTU Aero Engines AG (Germany)
Airplane Engine Components & Services
1.4
Percentages indicated are based upon total investments (excluding Money Market Funds and Securities Lending Collateral).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 22.5
Consumer Staples 3.2
Energy 2.7
Financials 9.0
Health Care 9.6
Industrials 23.4
Information Technology 16.4
Materials 8.1
Real Estate 3.8
Telecommunication Services 1.3
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
Columbia Acorn Family of Funds  | Annual Report 2016
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn International®
Country breakdown (%) (at December 31, 2016)
Australia 2.3
Cambodia 0.2
Canada 7.5
China 1.7
Denmark 3.1
Finland 0.6
France 2.8
Germany 6.1
Hong Kong 1.4
India 2.2
Indonesia 0.7
Italy 1.3
Japan 22.5
Malta 1.4
Mexico 1.1
Netherlands 2.2
New Zealand 0.6
Philippines 0.5
Singapore 1.3
South Africa 1.2
South Korea 2.6
Spain 3.0
Sweden 4.2
Switzerland 4.5
Taiwan 3.3
Thailand 1.1
United Kingdom 15.2
United States(a) 5.4
Total 100.0
    
(a) Includes investments in Money Market Funds.
Country Breakdown is based primarily on issuer’s place of organization/incorporation. Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
10 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn International®
P. Zachary Egan
Co-Portfolio Manager
Louis J. Mendes
Co-Portfolio Manager
Columbia Acorn International Class Z shares ended the year down 2.28%, underperforming the 3.57% gain of the Fund’s primary benchmark, the MSCI ACWI ex USA SMID Cap Index (Net). The relative lag was largely due to the Fund’s emphasis on secular growth businesses in a year that favored deep value cyclicals. This effect of the Fund’s investment strategy is apparent when looking at its more growth-oriented Morningstar Foreign Small/Mid Growth peer group, which had an average decline of 2.98% for the year. Materials and information technology were the most significant sectoral detractors from relative performance for the year. Regionally, the majority of the Fund’s underperformance was concentrated in Europe and the United Kingdom, and in Asia ex-Japan.
On the downside, IHI, a Japanese industrial conglomerate, was the Fund’s biggest detractor for the year. Down 49%, we sold the stock in the first quarter as word reached the market that several of its projects in shipbuilding and overseas plant construction were exceeding budget estimates, negatively impacting the company’s profitability. Based in Sweden, Kindred Group (formerly known as Unibet), a European online gaming operator, ended the year down 24%. Kindred gave back much of its 2015 gains as overall sentiment on the sector weakened and on concerns that growth would not be fast enough in newly regulated markets to offset higher taxes. We view the re-regulation of online gaming as a long-term positive development, reducing regulatory risk, raising barriers to entry and favoring highly ethical, well-invested Nordic operators like Kindred.
CCL Industries, a Canadian global label converter, ended the year up 23% and was the Fund’s top contributing stock. CCL acquired U.S.-based Checkpoint Solutions, a maker of anti-theft label systems, in 2016, raising expectations of significant cost and revenue synergies from the move. Actelion, a Swiss-based biopharmaceutical company focused on the discovery, development and commercialization of drugs for orphan diseases, was added to the Fund this year and was a top contributor to gains, increasing 53% in the Fund. A key player in the $5 billion-plus pulmonary hypertension market, Actelion is the subject of a complicated takeover bid by Johnson & Johnson, which may not ultimately result in a deal, but has put a valuation premium on its shares. Also impacted by acquisition news, U.S.-listed Cepheid, a global leader in the burgeoning molecular diagnostics space, gained 83% following the announcement that it was to be acquired by Danaher. We sold the stock on the news.
Thoughtful market commentators will pause before opining on market prospects for 2017, given the series of consequential political surprises in 2016. Western Europe, including the United Kingdom, was home to over 40% of the Fund’s capital at year end. Here we face not only uncertainties related to how the United Kingdom will extricate itself from the European Union, but also important national elections in both France and Germany, which could have implications for the future of the European integration project. On the other hand, many European corporates, with the notable exception of financials, are beneficiaries of continuing low interest rates and any potential fiscal boost. In addition, we feel many corporate valuations appear reasonable at this time.
Japan, the third largest economy in the world, contains few pockets of growth owing to adverse demographics and little immigration. However, many Japanese companies are now earnestly adopting initiatives aimed at improving returns on capital, which we believe could prove a catalyst for further stock price appreciation. The yen remains a wildcard, as earnings in Japanese exporters can be highly sensitive to foreign exchange effects. The Fund had roughly 20% of its capital deployed in Japan at
year end.
Asia ex-Japan, not a homogenous region, constituted roughly 15% of Fund assets at year end. Here we remain excited by attractive demographics, and rising productivity and prospects for the consumer and financial sectors, which flow from these. As long as regional corporates fund themselves in unhedged U.S. dollars, however, dollar strength introduces balance sheet hazards, which we will be watching closely. To the extent that companies anywhere on the globe supply the U.S. market, they could be adversely impacted by protectionist measures seemingly entailed by President Trump’s “America First!” rhetoric. The contours of any policy in this regard, however, remain highly uncertain at this time, and
 
 
Columbia Acorn Family of Funds  | Annual Report 2016
11


Table of Contents
Manager Discussion of Fund Performance  (continued)
Columbia Acorn International®
policymakers may reconsider as they become sensitized to the ultimate implications of this approach for U.S. consumers and U.S. exporters. As always, we will rely heavily on indicators of business quality to sort through the opportunities.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different, potentially less stringent, financial and accounting standards than those generally applicable to U.S. issuers. Risks are enhanced for emerging market issuers. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than investments in larger, more established companies.
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Table of Contents
Fund at a glance
Columbia Acorn USA®
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
Matthew A. Litfin
Lead Portfolio Manager
William J. Doyle
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years 10 Years Life
Class A Excluding sales charges 10/16/00 12.70 12.48 6.34 9.92
  Including sales charges   6.19 11.15 5.71 9.60
Class C Excluding sales charges 10/16/00 11.92 11.71 5.56 9.13
  Including sales charges   11.29 11.71 5.56 9.13
Class I 09/27/10 13.16 12.94 6.71 10.33
Class R4 11/08/12 12.93 12.76 6.62 10.29
Class R5 11/08/12 13.09 12.85 6.66 10.31
Class Y 11/08/12 13.18 12.90 6.69 10.32
Class Z 09/04/96 13.00 12.77 6.62 10.29
Russell 2000 Index   21.31 14.46 7.07 8.59
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 1.18% for Class Z shares and 1.43% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index.
Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.
Columbia Acorn Family of Funds  | Annual Report 2016
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn USA®
The Growth of a $10,000 Investment in Columbia Acorn USA® Class Z Shares
September 4, 1996 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period.
Top ten holdings (%) (at December 31, 2016)  
Toro Co. (The)
Turf Maintenance Equipment
2.2
LCI Industries
RV & Manufactured Home Components
2.1
Camping World Holdings, Inc., Class A
RV-centric Retail Stores & Services
2.1
LegacyTexas Financial Group, Inc.
Texas Thrift
2.0
Dorman Products, Inc.
Aftermarket Auto Parts Distributor
1.9
j2 Global, Inc.
Communication Technology & Digital Media
1.9
Papa John’s International, Inc.
Franchisor of Pizza Restaurants
1.8
Lakeland Financial Corp.
Indiana Bank
1.8
AMN Healthcare Services, Inc.
Temporary Healthcare Staffing
1.8
ANSYS, Inc.
Simulation Software for Engineers & Designers
1.7
Percentages indicated are based upon total investments (excluding Money Market Funds and Securities Lending Collateral).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Portfolio breakdown (%) (at December 31, 2016)
Common Stocks 95.7
Money Market Funds 2.0
Securities Lending Collateral 2.3
Total 100.0
Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 19.5
Consumer Staples 1.4
Energy 2.5
Financials 15.3
Health Care 25.1
Industrials 16.0
Information Technology 17.9
Real Estate 2.3
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
14 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn USA®
Matthew A. Litfin
Lead Portfolio Manager
William J. Doyle
Co-Portfolio Manager
Columbia Acorn USA Class Z shares gained 13.00% in 2016, a strong absolute return but short of the 21.31% gain of the Fund’s primary benchmark, the Russell 2000 Index. The difference was largely due to the benchmark’s exposure to value stocks, which led market performance for much of the year but aren’t a focus of the Fund’s small-cap growth strategy. Comparing to the Fund’s growth-oriented Morningstar Small Growth peer group, Columbia Acorn USA surpassed the category average return of 11.20% by 180 basis points (a basis point is 1/100th of a percent).
Health care names were prominent among the Fund’s detractors for the year. Celldex Therapeutics, a biotech developing cancer drugs, was sold in the first quarter but ranked as the Fund’s worst detractor for the annual period, falling 78% in the Fund. The company’s brain cancer drug failed a Phase III trial early in the year and the stock declined on the news. Orphan drug developer Ultragenyx Pharmaceutical and Akorn, a developer, manufacturer and distributor of specialty generic drugs, ended the year down 38% and 42%, respectively. Political uncertainty following the election brought down the sector, as did increased concerns regarding drug pricing pressures.
The top-contributing sector to Fund performance for the year was consumer discretionary. The Fund’s overweight position in the sector gained 24%, nearly doubling the benchmark’s 13% return. LCI Industries (formerly Drew Industries), a provider of recreational vehicles (RVs) and manufactured home components, was the top contributor in the Fund, gaining 78% in 2016, as the company continued to benefit from market-share gains amid robust RV end-market demand, combined with its efficient manufacturing processes. Within the same industry, we participated in the October initial public offering of Camping World, a chain of RV-centric retail stores and related services provider. The stock got off to a strong start, ending the year up 42%. The RV market is one of the bright spots in the consumer discretionary space, and we believe Camping World has solid prospects for sales growth and margin expansion. Papa John’s International, a franchisor of pizza restaurants, was also a leader for the year in the sector, gaining 56% as the company took share in the pizza industry with its effective digital platform and marketing strategy, which drove strong earnings.
Over the past year, we made significant changes to Columbia Acorn USA. We added 63 new ideas to the Fund, focusing on companies that have high and steady returns on invested capital. We also reduced the weighted average market cap of the Fund by focusing our additions to the portfolio on small-cap growth names. Overall, the Fund increased its exposure to the health care and consumer discretionary sectors in 2016 and reduced its exposure to industrials, as we gravitated to companies that we believe are less cyclical, have sustainable growth outlooks and have the ability to control their own destinies. While health care struggled late in the year, we are finding compelling valuations and investment opportunities in the sector in areas that we believe are unlikely to be greatly impacted by changes proposed by the new administration.
Going into 2017, it appears that there is significant economic momentum. U.S. gross domestic product growth looks encouraging, though it was down somewhat in the fourth quarter of 2016. Consumer spending has been strong, and the market is beginning to price in apparent optimism around potential regulatory changes. In our opinion, a more business-friendly environment should be beneficial to the high-quality, small-cap growth companies held in Columbia Acorn USA, as should a transition in equity markets from being interest-rate driven to being earnings driven.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than investments in larger, more established companies. The Fund may invest significantly in issuers within a particular sector, which may be negatively affected by market, economic or other conditions, making the Fund more vulnerable to unfavorable developments in the sector.
 
 
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Table of Contents
Fund at a glance
Columbia Acorn International SelectSM
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
Stephen Kusmierczak
Co-Portfolio Manager
Andreas Waldburg-Wolfegg
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years 10 Years Life
Class A Excluding sales charges 10/16/00 0.90 5.27 2.63 7.45
  Including sales charges   -4.89 4.03 2.02 7.10
Class C Excluding sales charges 10/16/00 0.15 4.45 1.82 6.63
  Including sales charges   -0.85 4.45 1.82 6.63
Class I 09/27/10 1.34 5.65 3.01 7.82
Class R4 11/08/12 1.15 5.55 2.95 7.79
Class R5 11/08/12 1.25 5.61 2.98 7.80
Class Y 11/08/12 1.29 5.65 3.00 7.82
Class Z 11/23/98 1.18 5.57 2.96 7.79
MSCI ACWI ex USA Net (USD)   4.50 5.00 0.96 N/A
S&P Developed Ex-U.S. Between $2B and $10B Index   4.32 8.58 2.60 7.05
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 1.15% for Class Z shares and 1.40% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The MSCI ACWI ex USA Index (Net) captures a large- and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 23 emerging market countries. The index covers approximately 85% of the global equity opportunity set outside the United States.
The S&P Developed Ex-U.S. Between $2B and $10B® Index is a subset of the broad market selected by the index sponsor that represents the mid-cap developed market, 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.
16 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Fund at a glance  (continued)
Columbia Acorn International SelectSM
The Growth of a $10,000 Investment in Columbia Acorn International SelectSM Class Z Shares
November 23, 1998 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period. A $10,000 investment in Columbia Acorn International Select at inception appreciated to $17,309 on December 31, 2000, the month-end of the inception date of the MSCI ACWI ex USA Index (Net). For comparison with the MSCI ACWI ex USA Index (Net), we assigned the index the same value as the Fund at month-end of the index inception date.
Top ten holdings (%) (at December 31, 2016)  
CCL Industries, Inc. (Canada)
Global Label Converter
6.0
Recruit Holdings Co., Ltd. (Japan)
Recruitment & Media Services
4.9
Hexagon AB, Class B (Sweden)
Design, Measurement & Visualization Software & Equipment
4.7
Partners Group Holding AG (Switzerland)
Private Markets Asset Management
4.6
Aeon Mall Co., Ltd. (Japan)
Suburban Shopping Mall Developer, Owner & Operator
4.1
Wirecard AG (Germany)
Online Payment Processing & Risk Management
4.0
MTU Aero Engines AG (Germany)
Airplane Engine Components & Services
4.0
Naspers Ltd., Class N (South Africa)
Media in Africa, China, Russia & Other Emerging Markets
3.6
Hoya Corp. (Japan)
Opto-electrical Components & Eyeglass Lenses
3.6
Geberit AG (Switzerland)
Plumbing Systems
3.5
Percentages indicated are based upon total investments (excluding Money Market Funds and Securities Lending Collateral).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 17.7
Consumer Staples 4.5
Energy 4.4
Financials 7.6
Health Care 8.4
Industrials 20.1
Information Technology 19.8
Materials 11.4
Real Estate 4.1
Telecommunication Services 2.0
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn International SelectSM
Country breakdown (%) (at December 31, 2016)
Australia 2.0
Canada 7.5
China 3.0
Denmark 3.0
France 4.8
Germany 7.4
India 2.9
Ireland 2.3
Japan 20.5
South Africa 3.3
Spain 2.0
Sweden 4.3
Switzerland 7.5
Taiwan 2.7
Thailand 2.4
United Kingdom 14.5
United States(a) 9.9
Total 100.0
    
(a) Includes investments in Money Market Funds.
Country Breakdown is based primarily on issuer’s place of organization/incorporation. Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
18 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn International SelectSM
Stephen Kusmierczak
Co-Portfolio Manager
Andreas Waldburg-Wolfegg
Co-Portfolio Manager
Columbia Acorn International Select Class Z shares ended the year up 1.18%, underperforming the 4.50% gain of the Fund’s primary benchmark, the MSCI ACWI ex USA Index (Net). The relative lag was largely due to the Fund’s emphasis on growth in a year that favored deep value cyclicals. Comparing to the Fund’s more growth-oriented Morningstar Foreign Large Growth peer group, which had an average decline of 2.14% for the year, the Fund outperformed by 332 basis points (a basis point is 1/100th of a percent). Regionally, Fund underperformance was concentrated in the United Kingdom and Europe. On a sector basis, Fund performance lagged in the consumer discretionary and materials sectors.
On the downside, Novozymes, a Danish manufacturer of industrial enzymes, fell 27% on lowered guidance in the second half of the year, reversing reports made earlier in the year that the company would likely reach the higher end of its guidance range. Novozymes has been negatively impacted by weak agriculture income and low oil prices, which have depressed bioenergy. Down 38% for the year, Eutelsat, a French provider of fixed satellite services, was sold in the third quarter on concerns about future growth prospects for the company. Down 15%, Distribuidora Internacional de Alimentación, a discount retailer in Spain and Latin America, declined as quarterly earnings fell short of expectations and remained flat year-over-year. Pricing pressure in Spain and Portugal have hurt the company. Next, a UK clothes and home retailer, ended the year down 40%, also suffering from poor earnings results for the year.
The leading contributor to Fund performance in 2016 was Largan Precision, a Taiwanese maker of mobile device camera lenses and modules. Largan dominates the high-end miniature lens business and has been expanding its operating margins. Its stock gained 73% during the year. Also a leader in the year, Partners Group, a Swiss investment manager focused on private equity, infrastructure and real estate, gained 33%. The company benefited from the uptick in European financials and from fundraising from new and existing clients that exceeded expectations. Canadian global label converter CCL Industries, the Fund’s largest position at year end, was also a top contributor, gaining 22%. CCL acquired U.S.-based Checkpoint Solutions, a maker of anti-theft label systems, in 2016, raising expectations of significant cost and revenue synergies from the move.
As we move into 2017, worldwide political uncertainty is at an all-time high. President Trump’s pledge to put America first could have negative implications for international companies that draw their business from the United States. A lack of clarity around Brexit negotiations continues to worry investors, and upcoming elections in France and Germany could determine the future of the European Union. On the other hand, despite initial concerns, the resignation of Italian Prime Minister Renzi following the defeat of a controversial reform referendum had little impact on European markets late in the year. In addition, Italy began to take measures to safeguard its banking sector, a move viewed very favorably by the markets.
At the end of the year, we saw interest rates increase in the United States and we expect other countries to follow. Japanese stocks rallied at year end on positive economic data suggesting
improved growth prospects and on reduced expectations of further stimulus efforts coming from the Bank of Japan. The European Central Bank announced stimulus measures but then hinted at a
possible reversal.
Through diligent research, we will continue to focus on finding opportunities to take advantage of market conditions. Our emphasis remains on building exposure to names that have solid earnings growth and the ability to succeed long term.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Foreign investments subject the Fund to political, economic, market, social and other risks within a particular country, as well as to potential currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. Risks are enhanced for emerging market issuers. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater
 
 
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Table of Contents
Manager Discussion of Fund Performance  (continued)
Columbia Acorn International SelectSM
than investments in larger, more established companies. The Fund may invest significantly in issuers within a particular sector, which may be negatively affected by market, economic or other conditions, making the Fund more vulnerable to unfavorable developments in the sector.
20 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Fund at a glance
Columbia Acorn SelectSM
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
David L. Frank
Co-Portfolio Manager
Matthew S. Szafranski
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years 10 Years Life
Class A Excluding sales charges 10/16/00 11.54 12.08 5.14 9.40
  Including sales charges   5.13 10.76 4.52 9.05
Class C Excluding sales charges 10/16/00 10.67 11.25 4.34 8.58
  Including sales charges   9.80 11.25 4.34 8.58
Class I 09/27/10 11.99 12.49 5.51 9.79
Class R4 11/08/12 11.86 12.35 5.43 9.74
Class R5 11/08/12 11.96 12.43 5.47 9.76
Class Y 11/08/12 12.02 12.47 5.49 9.77
Class Z 11/23/98 11.88 12.40 5.45 9.75
S&P MidCap 400 Index   20.74 15.33 9.16 10.40
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 0.88% for Class Z shares and 1.13% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The S&P MidCap 400® Index is a market value-weighted index that tracks the performance of 400 mid-cap U.S. companies.
Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.
Columbia Acorn Family of Funds  | Annual Report 2016
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn SelectSM
The Growth of a $10,000 Investment in Columbia Acorn SelectSM Class Z Shares
November 23, 1998 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period.
Top ten holdings (%) (at December 31, 2016)  
HealthSouth Corp.
Inpatient Rehabilitation Facilities & Home Health Care
4.8
Liberty Global PLC, Class A
Cable TV Franchises Outside of the United States
4.7
JB Hunt Transport Services, Inc.
Truck & Intermodal Carrier
4.6
Middleby Corp. (The)
Manufacturer of Cooking Equipment
4.5
LKQ Corp.
Alternative Auto Parts Distribution
4.4
Vail Resorts, Inc.
Ski Resort Operator & Developer
4.2
AMERCO
North American Moving & Storage
3.9
Education Realty Trust, Inc.
Student Housing
3.8
Robert Half International, Inc.
Temporary & Permanent Staffing in Finance, Accounting & Other Professions
3.7
Jones Lang LaSalle, Inc.
Real Estate Services
3.7
Percentages indicated are based upon total investments (excluding Money Market Funds).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Portfolio breakdown (%) (at December 31, 2016)
Common Stocks 98.5
Money Market Funds 1.5
Total 100.0
Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 20.3
Financials 9.0
Health Care 16.6
Industrials 29.6
Information Technology 11.6
Materials 3.5
Real Estate 9.4
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
22 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn SelectSM
David L. Frank
Co-Portfolio Manager
Matthew S. Szafranski
Co-Portfolio Manager
Columbia Acorn Select Class Z shares gained 11.88% in 2016, a strong absolute return but short of the Fund’s primary benchmark, the S&P MidCap 400 Index, which gained 20.74%. Throughout most of the year, strong performance among value stocks helped the benchmark’s more core orientation, but worked against the Fund’s mid-cap growth strategy. Compared to its peers, Columbia Acorn Select topped its Morningstar Mid-Cap Growth category average annual return of 6.03%.
The Fund underperformed relative to its benchmark in the information technology sector, due largely to the underperformance of two names sold in the first quarter of the year. Bankrate, a provider of Internet advertising for insurance, credit card and banking markets, left the Fund with a 33% loss for the year after declining on increased pressure from competitor Google. Blackhawk Network, a third-party distributor of prepaid content such as gift cards, declined 26% in the Fund on changes at the retail level that negatively impacted its business in the first quarter.
Within the real estate sector, Jones Lang LaSalle, a provider of commercial real estate services worldwide, struggled early in the year on concerns of a decline in commercial real estate transaction and leasing volumes in China. Following the Brexit vote, these concerns expanded to include the United Kingdom and Europe. While its stock recovered some ground in the third quarter, a downward reversal in the fourth quarter left Jones Lang LaSalle with a 16% loss for the year.
As we ended the year, the surprising outcome of the U.S. election sparked a sudden and significant change in market expectations and touched off a flood of cash into equity sectors expected to benefit from Republican policy initiatives including financials, industrials, materials and energy. Against this backdrop, Columbia Acorn Select benefited from its overweight position in the industrials sector. Nordson, a manufacturer of dispensing systems for adhesives and coatings, was mentioned at the half year as being a beneficiary of new technology that utilizes the company’s dispensing and testing technologies. This development, combined with the sector rally late in the year, led the stock to a 75% gain in the Fund.
Financials surged following the election on expectations of less onerous federal regulations for brokers, as well as benefits from higher interest rates. This rally contributed to the 74% annual gain for SVB Financial, a bank for venture capitalists that was added to the Fund this year. Among its mid-cap banking peers, we expect SVB Financial to find a higher rate environment very advantageous.
Political uncertainty following the election weighed on the health care sector in the final months of 2016, but the Fund outperformed its benchmark in the sector thanks to strong stock selection, gaining 12% versus a benchmark gain of 9%. Align Technology, the manufacturer of the Invisalign system used to straighten teeth, gained 45%, as the company has been able to take business away from traditional braces with its clear plastic retainers. The launch of a new digital scanner this year helped drive an acceleration of case volumes and, moreover, its acquisition of a minority stake in Smile Direct Club, a do-it-yourself aligner treatment for basic cases, looks promising.
We further concentrated the Fund in 2016, ending the year with 32 names. We have worked to create a portfolio of our analyst team’s top ideas, focusing on high-quality names that we believe have strong growth potential and that are available at compelling valuations. We like companies that we see as having the ability to control their own destinies and not being heavily tied to macroeconomic drivers. On a sector basis, the Fund’s largest average overweights relative to the benchmark at year end were in the industrial and consumer discretionary sectors. The adjustments that we made to the Fund were largely completed at mid-year, and we were pleased to see Columbia Acorn Select ahead of the benchmark with the Fund up 13.26% and the benchmark up 11.87% for the six months ended December 31, 2016. Going forward, we expect less turnover in the Fund, as we seek to profit from multi-year trends in our heavily researched, concentrated Fund.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than investments in larger, more established companies. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks, within a
 
 
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23


Table of Contents
Manager Discussion of Fund Performance  (continued)
Columbia Acorn SelectSM
particular country, as well as to potential currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. Risks are enhanced for emerging market issuers. The Fund may invest significantly in issuers within a particular sector, which may be negatively affected by market, economic or other conditions, making the Fund more vulnerable to unfavorable developments in the sector.
24 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Fund at a glance
Columbia Thermostat FundSM
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
David L. Frank
Portfolio Manager
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years 10 Years Life
Class A Excluding sales charges 03/03/03 4.47 6.36 5.15 6.93
  Including sales charges   -1.52 5.11 4.53 6.49
Class C Excluding sales charges 03/03/03 3.69 5.56 4.37 6.14
  Including sales charges   2.69 5.56 4.37 6.14
Class R4 11/08/12 4.69 6.62 5.41 7.20
Class R5 11/08/12 4.77 6.65 5.43 7.21
Class Y 11/08/12 4.76 6.68 5.44 7.22
Class Z 09/25/02 4.72 6.63 5.41 7.20
S&P 500 Index   11.96 14.66 6.95 9.52
Bloomberg Barclays U.S. Aggregate Bond Index   2.65 2.23 4.34 4.24
Blended Benchmark   7.38 8.44 5.96 7.13
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 0.77% for Class Z shares and 1.02% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The Standard & Poor’s (S&P) 500® Index tracks the performance of 500 widely held, large-capitalization U.S. stocks.
The Bloomberg Barclays 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.
The 50/50 Blended Benchmark, established by the Fund’s investment manager, is an equally weighted custom composite of Columbia Thermostat Fund’s primary equity and primary debt benchmarks, the S&P 500® Index and the Bloomberg Barclays 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.
Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.
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Table of Contents
Fund at a glance  (continued)
Columbia Thermostat FundSM
The Growth of a $10,000 Investment in Columbia Thermostat FundSM Class Z Shares
September 25, 2002 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period.
Portfolio breakdown (%) (at December 31, 2016)
Equity Funds 9.9
Fixed-Income Funds 89.8
Money Market Funds 0.3
Total 100.0
Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
26 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance
Columbia Thermostat FundSM
David L. Frank
Portfolio Manager*
Columbia Thermostat Fund Class Z shares gained 4.72% in 2016, compared to an 11.96% gain of the Fund’s primary equity benchmark, the S&P 500 Index. Fund gains topped its primary debt benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which ended the year up 2.65%, while the Fund’s custom 50/50 Blended Benchmark gained 7.38% for the year.
The Fund’s equity portfolio had a weighted average gain of 6.41% for the year. Columbia Dividend Income Fund led the equity portion, gaining 13.65% in 2016. Columbia Select Large Cap Growth Fund had the largest decline, falling 8.36%.
Columbia Thermostat Fund’s bond portfolio ended the year with a weighted average gain of 3.62%. Columbia Income Opportunities Fund was a standout for the year, gaining 10.66%. Columbia U.S. Treasury Index Fund had the smallest gain, increasing 0.88% for the annual period.
The Fund hit five reallocation triggers in the second half of the year and three in the fourth quarter. The Fund increased equity exposure in November and decreased exposure twice in December to end the year with a 10% weighting in stocks and a 90% weighting in bonds.
We were pleased to see the Fund perform as designed in 2016, offering shareholders a return that fell between the equity and bond markets. The Fund ended the year with its minimum exposure to stocks of 10%, as we sold equities on market strength late in the year to capture gains. This was the first time in 2016 that the S&P 500 topped the 2,250 threshold, which triggered the Fund’s move to 10% stocks. We look forward to taking advantage of future market reversals.
*Christopher Olson, former co-portfolio manager of Columbia Thermostat Fund, retired from Columbia Wanger Asset Management on December 31, 2016. David Frank will continue as the sole portfolio manager of Columbia Thermostat Fund.
Results of the Funds Owned in Columbia Thermostat Fund as of December 31, 2016
Equity Funds Weightings
in category
4th quarter
performance
1 year
performance
Columbia Acorn International, Class I Shares 20% -8.52% -2.18%
Columbia Contrarian Core Fund, Class I Shares 20% 1.94% 8.82%
Columbia Dividend Income Fund, Class I Shares 20% 4.76% 13.65%
Columbia Acorn Fund, Class I Shares 10% 3.56% 10.44%
Columbia Acorn Select, Class I Shares 10% 4.41% 11.99%
Columbia Large Cap Enhanced Core Fund, Class I Shares 10% 3.84% 9.99%
Columbia Select Large Cap Growth Fund, Class I Shares 10% -8.55% -8.36%
Weighted Average Equity Gain/Loss 100% -0.11% 6.41%
    
Fixed-Income Funds Weightings
in category
4th quarter
performance
1 year
performance
Columbia Short Term Bond Fund, Class I Shares 40% -0.19% 1.97%
Columbia Total Return Bond Fund, Class I Shares 20% -2.22% 5.01%
Columbia U.S. Government Mortgage Fund, Class I Shares 20% -1.48% 2.40%
Columbia Income Opportunities Fund, Class I Shares 10% 0.57% 10.66%
Columbia U.S. Treasury Index Fund, Class I Shares 10% -3.82% 0.88%
Weighted Average Income Gain/Loss 100% -1.14% 3.62%
Columbia Thermostat Fund Rebalancing in the Fourth Quarter
November 3, 2016: 25% Equity, 75% Fixed-Income
December 5, 2016: 15% Equity, 85% Fixed-Income
December 12, 2016: 10% Equity, 90% Fixed-Income
 
 
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Table of Contents
Manager Discussion of Fund Performance  (continued)
Columbia Thermostat FundSM
A "fund of fund" 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.
The Fund’s investments in the underlying funds may present certain risks, including the following. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund’s investment in other funds subjects it to the investment performance (positive or negative), risks and expenses of these underlying funds. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than in investments in larger, more established companies. There are risks associated with fixed-income investments, including credit risk, market risk, interest rate risk and prepayment and extension risk. In general, bond prices fall when interest rates rise and vice versa. This effect is more pronounced for longer term securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Foreign investments subject the Fund to political, economic, market, social and other risks within a particular country, as well as to potential currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. Risks are enhanced for emerging market issuers. 
The value of an investment in the Fund is based primarily on the performance of the underlying funds in which it invests. The Fund is subject to the risk that the investment manager’s decisions regarding asset classes and underlying funds will not anticipate market trends successfully, resulting in a failure to reserve capital or lower total return. The Investment Manager may prefer an underlying fund in the Columbia Acorn Family of Funds over alternative investments. There can be no assurance that the Columbia Acorn Funds will outperform similar funds managed by the Investment Manager’s affiliates. This is not an offer of the shares of any other mutual fund mentioned herein.
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Table of Contents
Fund at a glance
Columbia Acorn Emerging Markets FundSM
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
Fritz Kaegi
Co-Portfolio Manager
Stephen Kusmierczak
Co-Portfolio Manager
Louis J. Mendes
Co-Portfolio Manager
Satoshi Matsunaga
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years Life
Class A Excluding sales charges 08/19/11 -3.20 2.06 0.47
  Including sales charges   -8.73 0.87 -0.63
Class C Excluding sales charges 08/19/11 -3.92 1.32 -0.25
  Including sales charges   -4.88 1.32 -0.25
Class I 08/19/11 -2.81 2.42 0.86
Class R4 11/08/12 -2.91 2.37 0.80
Class R5 11/08/12 -2.90 2.40 0.82
Class Y 06/13/13 -2.92 2.42 0.84
Class Z 08/19/11 -3.04 2.31 0.74
MSCI Emerging Markets SMID Cap Index (Net)   3.51 2.10 -1.17
S&P Emerging Markets Between $500M and $5B Index   10.58 4.37 1.30
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 1.55% for Class Z shares and 1.80% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The MSCI Emerging Markets SMID Cap Index (Net) captures a mid- and small-cap representation across 23 emerging market countries. The index covers approximately 29% of the free float-adjusted market capitalization in each country.
The S&P Emerging Markets Between $500M and $5B® Index represents the institutionally investable capital of 22 emerging market countries, as determined by S&P, with market caps ranging between $500 million to $5 billion. The index currently consists of the following emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn Emerging Markets FundSM
The Growth of a $10,000 Investment in Columbia Acorn Emerging Markets FundSM Class Z Shares
August 19, 2011 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period.
Top ten holdings (%) (at December 31, 2016)  
Zee Entertainment Enterprises Ltd. (India)
Indian Programmer of Pay Television Content
5.5
Vitasoy International Holdings Ltd. (Hong Kong)
Hong Kong Soy Food Brand
4.2
Modetour Network, Inc. (South Korea)
Travel Services
3.4
Credit Analysis & Research Ltd. (India)
Credit Rating Agency in India
3.3
PT Link Net Tbk (Indonesia)
Fixed Broadband & CATV Service Provider
3.3
Koh Young Technology, Inc. (South Korea)
Inspection Systems for Printed Circuit Boards
3.3
Samui Airport Property Fund Leasehold (Thailand)
Thai Airport Operator
3.1
Amara Raja Batteries Ltd. (India)
Indian Maker of Auto & Industrial Batteries, Mostly for the Replacement Market
3.0
Silergy Corp. (Taiwan)
Chinese Provider of Analog & Mixed Digital Integrated Circuits
2.9
PT Media Nusantara Citra Tbk (Indonesia)
Media Company in Indonesia
2.9
Percentages indicated are based upon total investments (excluding Money Market Funds and Securities Lending Collateral).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 25.9
Consumer Staples 11.0
Financials 18.6
Health Care 3.9
Industrials 9.9
Information Technology 19.2
Materials 1.4
Real Estate 3.1
Telecommunication Services 7.0
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn Emerging Markets FundSM
Country breakdown (%) (at December 31, 2016)
Cambodia 2.2
Cayman Islands 1.0
China 4.7
Finland 1.3
Hong Kong 5.0
India 16.7
Indonesia 9.3
Japan 0.7
Mexico 6.9
Panama 2.5
Philippines 3.7
Poland 2.2
South Africa 5.8
South Korea 12.5
Spain 1.2
Sweden 1.5
Taiwan 9.6
Thailand 3.9
Turkey 2.5
United States(a) 6.8
Total 100.0
    
(a) Includes investments in Money Market Funds.
Country Breakdown is based primarily on issuer’s place of organization/incorporation. Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
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Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn Emerging Markets FundSM
Fritz Kaegi
Co-Portfolio Manager
Stephen Kusmierczak
Co-Portfolio Manager
Louis J. Mendes
Co-Portfolio Manager
Satoshi Matsunaga
Co-Portfolio Manager
Columbia Acorn Emerging Markets Fund Class Z shares ended 2016 down 3.04%, underperforming the 3.51% gain of the Fund’s primary benchmark, the MSCI Emerging Markets SMID Cap Index (Net). 2016 was the Fund’s toughest year in terms of underperformance versus its primary benchmark since its launch in 2011. The Fund’s primary detractor was poor stock selection in China (including Hong Kong- and Singapore-listed stocks), which represented about two-thirds of the underperformance relative to the benchmark, with one stock—Sihuan Pharmaceutical—representing about a third of the Fund’s
total underperformance.
In an effort to improve performance, we’ve made changes to our analyst coverage in China, and we’re upgrading the quality of Fund holdings in that market. Our analyst has a strong record investing in Asian technology and select China-related stocks, and we feel he can further his stock-picking success with his coverage of the full region. We have been hurt by “value traps”—stocks that look very cheap but that have unexceptional corporate governance, business models and economic drivers—and relatively illiquid ones at that. In the meantime, because we believe high-quality ideas in Chinese small caps are scarce, we have reduced our overall exposure to China.
The second-largest negative Fund performance factor was not being present in Brazil for the full year, which accounts for about one-third of the Fund’s underperformance versus the benchmark in 2016. Entering 2016, we had some limited exposure to the market, but we saw little to be excited about in terms of Brazilian company fundamentals; further, Brazil had a 10-year bond rate of about 16%, rendering equity investments relatively unattractive because a company’s future cash flows would be heavily discounted by comparison with less-risky local bank deposits or bonds. Against this backdrop, we opted to exit the market. By the end of 2016, local bond rates fell to nearly 11%, making stocks look more attractive. At the same time, the Fund missed out on the 24% appreciation of the Brazilian Real against the U.S. dollar. We generally do not try to make bets on interest rate changes or foreign currency moves because these tend to be speculative.
In 2016, the Fund also performed poorly in some of the markets where it was overweight, most notably India and Mexico. In India, government moves hurt: in October it announced media regulations that could affect ad revenues at Zee Entertainment, an Indian programmer of pay television content and the Fund’s largest holding. Though we think the effect will be muted on Zee Entertainment’s business and that there are positive aspects of the change that could increase subscription revenues, the news hurt the stock late in the period, leaving it with a 0.98% return for the year. In November, the government caused a negative monetary shock by cancelling large-denomination cash bills. This "demonetization" caused disruption in many industries and hurt Indian stocks, as investors sought liquidity and priced in the shock’s effects. As a result, during the fourth quarter India underperformed other countries in the Fund. Nonetheless, we believe that we have a group of high quality, resilient Indian businesses that will hold up well through the “demonetization” disruption.
In Mexico, the MSCI Mexico Investable Market Index sank 8% and the peso depreciated 6% in the wake of the U.S. elections on concerns the new presidential administration will enact policies that could worsen Mexican business conditions. Airport operator Grupo Aeroportuario Centro Norte was among the Fund’s biggest detractors for the year, falling 27% on fears of lower traffic. We have followed Mexican airport operators for years and held on to the position based on our belief that we own an asset with attractive long-term growth and price dynamics, listed at a very attractive price.
On the positive side, the Fund saw strong performance from holdings in Taiwan and the Philippines during the year, and also benefited from its overweight allocation to Southeast Asia. Largan Precision (+72% for the year), Silergy (+37% for the year), and Vanguard International (+36% for the year)—all tech hardware companies—strongly outperformed Taiwan and the tech sector as a whole versus the benchmark, driven by diverse trends within their various industries. Melco Crown (Philippines) Resorts grew 57% during the year and was the leading contributor to performance, benefiting as gaming conditions improved and costs got under control, finally swinging the company to profitability after a tough opening in 2015.
 
 
32 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance  (continued)
Columbia Acorn Emerging Markets FundSM
Emerging markets face diverse economic and political challenges in 2017, arising not only from conditions internal to them but also from policy and macroeconomic volatility in the developed world. International political tension has also ratcheted higher. As we navigate these conditions—and strive to improve on our 2016 performance—remember that each of your portfolio managers are sizable investors in this Fund. Having each lived and worked in emerging markets ourselves, we know that these countries have their ups and downs, but also are at the leading edge of many global economic and demographic trends.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different, potentially less stringent, financial and accounting standards than those generally applicable to U.S. issuers. Risks are enhanced for emerging and frontier market issuers. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than investments in larger, more established companies.
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Table of Contents
Fund at a glance
Columbia Acorn European FundSM
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
Andreas Waldburg-Wolfegg
Co-Portfolio Manager
Stephen Kusmierczak
Co-Portfolio Manager
Morningstar Style BoxTM
The Morningstar Style Box™ is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2017 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Average annual total returns (%) (for the period ended December 31, 2016)
    Inception 1 Year 5 Years Life
Class A Excluding sales charges 08/19/11 -3.47 9.23 7.54
  Including sales charges   -9.02 7.93 6.36
Class C Excluding sales charges 08/19/11 -4.21 8.40 6.75
  Including sales charges   -5.16 8.40 6.75
Class I 08/19/11 -3.21 9.54 7.86
Class R4 06/25/14 -3.27 9.50 7.83
Class R5 11/08/12 -3.23 9.49 7.82
Class Z 08/19/11 -3.29 9.47 7.81
MSCI AC Europe Small Cap Index (Net)   -1.57 12.50 9.99
S&P Europe Between $500M and $5B Index   -0.31 12.77 10.30
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the maximum contingent deferred sales charge of 1.00% for the first year after purchase. The Fund’s other classes are not subject to sales charges, but may be subject to other fees and expenses, and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and certain fees and expenses associated with each class.
As stated in the May 1, 2016, prospectus, as supplemented June 27, 2016, the Fund’s annual operating expense ratio is 1.51% for Class Z shares and 1.76% for Class A shares.
All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results may reflect the effect of any fee waivers or reimbursements of Fund expenses by the investment manager and/or any of its affiliates. Absent these fee waivers and/or expense reimbursement arrangements, performance results may have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting investor.columbiathreadneedleus.com or calling 800.922.6769.
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/mutual-funds/appended-performance for more information.
The MSCI AC Europe Small Cap Index (Net) captures a small-cap representation across 21 markets in Europe. The index covers approximately 14% of the free float-adjusted market capitalization across each market country in Europe.
The S&P Europe Between $500M and $5B® Index represents the institutionally investable capital of 16 European countries, as determined by S&P, with market caps ranging between $500 million to $5 billion. The index consists of the following European countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
Unlike mutual funds, indexes are not managed and do not incur fees or expenses. It is not possible to invest directly in an index.
34 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Fund at a glance  (continued)
Columbia Acorn European FundSM
The Growth of a $10,000 Investment in Columbia Acorn European FundSM Class Z Shares
August 19, 2011 (Fund inception) through December 31, 2016
This chart shows the change in value of a hypothetical $10,000 investment in Class Z shares of the Fund during the stated time period.
Top ten holdings (%) (at December 31, 2016)  
Kindred Group PLC (Malta)
European Online Gaming Operator
3.9
Wirecard AG (Germany)
Online Payment Processing & Risk Management
3.6
Partners Group Holding AG (Switzerland)
Private Markets Asset Management
3.2
SimCorp AS (Denmark)
Software for Investment Managers
3.2
Halma PLC (United Kingdom)
Health & Safety Sensor Technology
3.1
Akka Technologies (France)
Engineering Consultancy
3.0
Rightmove PLC (United Kingdom)
Internet Real Estate Listings
2.8
Sweco AB, Class B (Sweden)
Engineering Consultants
2.6
AURELIUS Equity Opportunities SE & Co. KGaA (Germany)
European Turnaround Investor
2.6
Tikkurila OYJ (Finland)
Decorative & Industrial Paint in Scandinavia, Central & Eastern Europe
2.5
Percentages indicated are based upon total investments (excluding Money Market Funds and Securities Lending Collateral).
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Equity sector breakdown (%) (at December 31, 2016)
Consumer Discretionary 17.2
Consumer Staples 4.1
Financials 9.7
Health Care 9.4
Industrials 24.0
Information Technology 20.4
Materials 9.5
Real Estate 5.7
Total 100.0
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
 
 
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Table of Contents
Fund at a glance  (continued)
Columbia Acorn European FundSM
Country breakdown (%) (at December 31, 2016)
Belgium 1.3
Denmark 4.8
Finland 7.5
France 6.1
Germany 13.4
Italy 3.3
Malta 3.6
Netherlands 3.6
Norway 2.2
Poland 1.6
Spain 5.1
Sweden 7.7
Switzerland 3.9
Turkey 1.1
United Kingdom 26.4
United States(a) 8.4
Total 100.0
    
(a) Includes investments in Money Market Funds.
Country Breakdown is based primarily on issuer’s place of organization/incorporation. Percentages indicated are based upon total investments. The Fund’s portfolio composition is subject to change.
36 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Manager Discussion of Fund Performance
Columbia Acorn European FundSM
Andreas Waldburg-Wolfegg
Co-Portfolio Manager
Stephen Kusmierczak
Co-Portfolio Manager
Columbia Acorn European Fund Class Z shares ended the year down 3.29%, underperforming the 1.57% decline of the Fund’s primary benchmark, the MSCI AC Europe Small Cap Index (Net). The relative lag was largely due to the Fund’s emphasis on growth in a year that generally favored value. The impact of value strength on the Fund was felt strongest in the fourth quarter. Columbia Acorn European Fund’s performance was in line with its Morningstar Europe Stock peer group, which had an average decline of 1.66% in 2016. Regionally, relative underperformance was concentrated in Northern and Central Europe and in the United Kingdom. From a sector perspective, the Fund underperformed the benchmark within the consumer discretionary and information technology sectors.
Among the Fund’s detractors, Wirecard, a German online payment processing and risk management company, fell in the first quarter on questionable allegations against the company. This downturn was followed by a strong second and third quarter, but the company cooled in the fourth quarter leaving the stock with a 13% loss for the year. Ending the year down 37%, we sold the Fund’s position in Regus, a provider of rental office space in full service business centers. In light of the many newcomers in the space, we were no longer convinced that Regus could preserve its edge. Distribuidora Internacional de Alimentación, a discount retailer in Spain and Latin America, declined 16%, as earnings fell short of expectations. Pricing pressure in Spain and Portugal hurt the company.
Top contributors to Fund performance in the year included two Finnish stocks. Munksjo, a specialty paper manufacturer, gained 76% on strong results driven in part by improved market conditions that removed headwinds that were hampering stock performance. Konecranes, a manufacturer and service provider for industrial cranes and port handling equipment, rose 50% on news it would acquire U.S.-based Terex Corporation’s material handling and port solutions business. Listed in Spain, Prosegur, a provider of security guard services, ended the year up 40%, as the company showed strong organic growth and more technological innovation and service-level agreements.
As we move into 2017, Europe faces many challenges. A lack of clarity around Brexit negotiations continues to worry investors, and the upcoming elections in France and Germany could determine the future of the European Union. On the other hand, despite initial concerns, the resignation of Italian Prime Minister Renzi following the defeat of a controversial reform referendum had little impact on European markets late in the period. In addition, Italy began to take measures to safeguard its banking sector, a move viewed very favorably by the markets. During the fourth quarter, we saw interest rates increase in the United States, and we expect other countries to follow. The European Central Bank announced stimulus measures that bolstered the markets late in the year but then hinted at a
possible reversal. While we will continue to closely monitor the macroeconomic factors impacting Europe, our focus remains on owning stocks in companies with solid earnings growth and sound
long-term prospects.
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. International investing involves certain risks and volatility due to potential political, economic or currency instabilities and different, potentially less stringent, financial and accounting standards than those generally applicable to U.S. issuers. Investments in small- and mid-cap companies involve risks and volatility and possible illiquidity greater than investments in larger, more established companies.
 
 
Columbia Acorn Family of Funds  | Annual Report 2016
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Table of Contents
A “fund of fund” 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.


Table of Contents
2016 Year-End Distributions
The following table details the year-end distributions for the Columbia Acorn Funds. For all Funds except Columbia Thermostat Fund, the record date was December 6, 2016, and the ex-dividend and payable date was December 7, 2016. For Columbia Thermostat Fund, the record date was December 21, 2016, and the ex-dividend and payable date was December 22, 2016.
Fund Ordinary
income
Short-term
capital
gain
Long-term
capital
gain
Columbia Acorn® Fund      
Class A None None 3.92246
Class C None None 3.92246
Class I None None 3.92246
Class R4 None None 3.92246
Class R5 None None 3.92246
Class Y None None 3.92246
Class Z None None 3.92246
Columbia Acorn International®      
Class A 0.14692 None None
Class B None None None
Class C None None None
Class I 0.28346 None None
Class R 0.01428 None None
Class R4 0.22104 None None
Class R5 0.26396 None None
Class Y 0.28346 None None
Class Z 0.24445 None None
Columbia Acorn USA®      
Class A None None 4.95032
Class C None None 4.95032
Class I None None 4.95032
Class R4 None None 4.95032
Class R5 None None 4.95032
Class Y None None 4.95032
Class Z None None 4.95032
Columbia Acorn International SelectSM      
Class A 0.15970 None None
Class C None None None
Class I 0.25415 None None
Class R4 0.21551 None None
Class R5 0.22839 None None
Class Y 0.24556 None None
Class Z 0.22195 None None
Columbia Acorn SelectSM      
Class A None None 1.11394
Class C None None 1.11394
Class I None None 1.11394
Class R4 None None 1.11394
Class R5 None None 1.11394
Class Y None None 1.11394
Class Z None None 1.11394
38 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
2016 Year-End Distributions  (continued)
Fund Ordinary
income
Short-term
capital
gain
Long-term
capital
gain
Columbia Thermostat FundSM      
Class A 0.02607 None None
Class C None None None
Class R4 0.06235 None None
Class R5 0.06380 None None
Class Y 0.07106 None None
Class Z 0.06235 None None
Columbia Acorn Emerging Markets FundSM      
Class A 0.07330 None None
Class C None None None
Class I 0.11353 None None
Class R4 0.10115 None None
Class R5 0.11250 None None
Class Y 0.11353 None None
Class Z 0.10012 None None
Columbia Acorn European FundSM      
Class A 0.09256 None None
Class C None None None
Class I 0.14069 None None
Class R4 0.12902 None None
Class R5 0.13340 None None
Class Z 0.12902 None None
Columbia Acorn Family of Funds  | Annual Report 2016
39


Table of Contents
Understanding Your Fund’s Expenses
As a shareholder, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and service (Rule 12b-1) fees, and other Fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in Class A, B, C, I, R, R4, R5, Y and Z shares of the Funds during the period. The actual and hypothetical information in the tables is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Funds’ actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the Actual column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Funds’ actual return) and then applies the Funds’ actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare With Other Funds” below for details on how to use the hypothetical data.
In addition to the ongoing expenses which the Funds bear directly, Columbia Thermostat Fund’s shareholders indirectly bear the Fund’s allocable share of the costs and expenses of each underlying fund in which the Fund invests. You can also estimate the effective expenses paid during the period, which includes the indirect fees associated with investing in the underlying funds, by using the amounts listed in the effective expenses paid during the period column in the “Fund of Funds” table.
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 hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
July 1, 2016 — December 31, 2016
  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 1,104.70 1,019.65 5.63 5.40 1.07
Class C 1,000.00 1,000.00 1,101.10 1,015.90 9.56 9.17 1.82
Class I 1,000.00 1,000.00 1,106.50 1,021.20 4.00 3.84 0.76
Class R4 1,000.00 1,000.00 1,105.70 1,020.90 4.32 4.14 0.82
Class R5 1,000.00 1,000.00 1,106.30 1,020.95 4.27 4.09 0.81
Class Y 1,000.00 1,000.00 1,107.00 1,021.20 4.00 3.84 0.76
Class Z 1,000.00 1,000.00 1,105.80 1,020.90 4.32 4.14 0.82
40 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Understanding Your Fund’s Expenses  (continued)
July 1, 2016 — December 31, 2016
  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 International®
Class A 1,000.00 1,000.00 989.00 1,019.20 5.77 5.86 1.16
Class B 1,000.00 1,000.00 986.40 1,016.85 8.09 8.22 1.63
Class C 1,000.00 1,000.00 985.00 1,015.30 9.63 9.77 1.94
Class I 1,000.00 1,000.00 990.50 1,020.60 4.38 4.45 0.88
Class R 1,000.00 1,000.00 987.50 1,017.65 7.30 7.41 1.47
Class R4 1,000.00 1,000.00 990.00 1,020.10 4.88 4.95 0.98
Class R5 1,000.00 1,000.00 990.20 1,020.35 4.63 4.70 0.93
Class Y 1,000.00 1,000.00 990.30 1,020.60 4.38 4.45 0.88
Class Z 1,000.00 1,000.00 990.00 1,020.15 4.83 4.90 0.97
Columbia Acorn USA®
Class A 1,000.00 1,000.00 1,117.80 1,018.05 7.36 7.01 1.39
Class C 1,000.00 1,000.00 1,114.10 1,014.30 11.31 10.78 2.14
Class I 1,000.00 1,000.00 1,120.30 1,020.05 5.25 5.00 0.99
Class R4 1,000.00 1,000.00 1,119.30 1,019.30 6.04 5.76 1.14
Class R5 1,000.00 1,000.00 1,120.40 1,019.70 5.62 5.35 1.06
Class Y 1,000.00 1,000.00 1,120.30 1,020.00 5.30 5.05 1.00
Class Z 1,000.00 1,000.00 1,119.70 1,019.30 6.04 5.76 1.14
Columbia Acorn International SelectSM
Class A 1,000.00 1,000.00 1,028.30 1,018.05 7.05 7.01 1.39
Class C 1,000.00 1,000.00 1,024.60 1,014.30 10.83 10.78 2.14
Class I 1,000.00 1,000.00 1,030.10 1,019.90 5.18 5.15 1.02
Class R4 1,000.00 1,000.00 1,029.50 1,019.30 5.78 5.76 1.14
Class R5 1,000.00 1,000.00 1,030.10 1,019.65 5.43 5.40 1.07
Class Y 1,000.00 1,000.00 1,030.50 1,019.90 5.18 5.15 1.02
Class Z 1,000.00 1,000.00 1,029.50 1,019.30 5.78 5.76 1.14
Columbia Acorn SelectSM
Class A 1,000.00 1,000.00 1,130.40 1,019.25 6.12 5.81 1.15
Class C 1,000.00 1,000.00 1,126.70 1,015.50 10.10 9.57 1.90
Class I 1,000.00 1,000.00 1,132.80 1,021.05 4.21 3.99 0.79
Class R4 1,000.00 1,000.00 1,131.90 1,020.50 4.80 4.55 0.90
Class R5 1,000.00 1,000.00 1,132.80 1,020.80 4.48 4.24 0.84
Class Y 1,000.00 1,000.00 1,133.40 1,021.05 4.21 3.99 0.79
Class Z 1,000.00 1,000.00 1,132.60 1,020.50 4.80 4.55 0.90
Columbia Acorn Emerging Markets FundSM
Class A 1,000.00 1,000.00 956.80 1,015.80 9.00 9.27 1.84
Class C 1,000.00 1,000.00 953.30 1,012.05 12.65 13.03 2.59
Class I 1,000.00 1,000.00 957.90 1,017.75 7.10 7.31 1.45
Class R4 1,000.00 1,000.00 957.90 1,017.05 7.78 8.02 1.59
Class R5 1,000.00 1,000.00 958.00 1,017.45 7.39 7.62 1.51
Class Y 1,000.00 1,000.00 957.70 1,017.55 7.29 7.52 1.49
Class Z 1,000.00 1,000.00 957.50 1,017.05 7.78 8.02 1.59
Columbia Acorn Family of Funds  | Annual Report 2016
41


Table of Contents
Understanding Your Fund’s Expenses  (continued)
July 1, 2016 — December 31, 2016
  Account value at the
beginning of the
period ($)
Account value at the
end of the
period ($)
Expenses paid during
the period ($)
Fund’s annualized
expense ratio (%)
  Actual Hypothetical Actual Hypothetical Actual Hypothetical Actual
Columbia Acorn European FundSM
Class A 1,000.00 1,000.00 1,003.80 1,016.25 8.77 8.82 1.75
Class C 1,000.00 1,000.00 999.30 1,012.50 12.50 12.58 2.50
Class I 1,000.00 1,000.00 1,005.10 1,017.90 7.12 7.16 1.42
Class R4 1,000.00 1,000.00 1,005.00 1,017.50 7.52 7.57 1.50
Class R5 1,000.00 1,000.00 1,005.20 1,017.65 7.37 7.41 1.47
Class Z 1,000.00 1,000.00 1,004.30 1,017.50 7.52 7.57 1.50
Fund of Funds—Columbia Thermostat Fund
July 1, 2016 — December 31, 2016
  Account value at the
beginning of the
period ($)
Account value at the
end of the
period ($)
Expenses paid during
the period ($)
Fund’s annualized
expense ratio (%)
Effective expenses
paid during the
period ($)
Fund’s effective
annualized
expense ratio (%)
  Actual Hypothetical Actual Hypothetical Actual Hypothetical Actual Actual Hypothetical Actual
Columbia Thermostat FundSM                    
Class A 1,000.00 1,000.00 1,008.70 1,022.50 2.51 2.53 0.50 4.97 5.01 0.99
Class C 1,000.00 1,000.00 1,004.80 1,018.75 6.27 6.31 1.25 8.72 8.78 1.74
Class R4 1,000.00 1,000.00 1,009.90 1,023.75 1.26 1.26 0.25 3.72 3.74 0.74
Class R5 1,000.00 1,000.00 1,010.00 1,023.80 1.21 1.21 0.24 3.67 3.69 0.73
Class Y 1,000.00 1,000.00 1,009.80 1,024.05 0.95 0.96 0.19 3.42 3.44 0.68
Class Z 1,000.00 1,000.00 1,010.00 1,023.75 1.26 1.26 0.25 3.72 3.74 0.74
Expenses paid during the period are equal to the 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 366.
Except with respect to Columbia Thermostat Fund, expenses do not include any fees and expenses incurred indirectly by a Fund from the underlying funds in which the Fund may invest (also referred to as “acquired funds”), including affiliated and non-affiliated pooled investments vehicles (including mutual funds and exchange traded funds).
In the case of Columbia Thermostat Fund, effective expenses paid during the period and the Fund’s effective annualized expense ratio include expenses borne directly by the class plus the Fund’s pro rata portion of the ongoing expenses charged by the underlying funds in which it invests using the expense ratio of each class of each underlying fund as of the underlying fund’s most recent shareholder report.
Had the investment manager and/or certain of its affiliates not waived/reimbursed certain fees and expenses for Columbia Acorn International, Columbia Acorn International Select, Columbia Acorn Select, Columbia Thermostat Fund, Columbia Emerging Markets Fund and Columbia Acorn European Fund, account value at the end of the period would have been reduced.
42 Columbia Acorn Family of Funds  | Annual Report 2016


Table of Contents
Portfolio of Investments
Columbia Acorn® Fund, December 31, 2016
(Percentages represent value of investments compared to net assets)
Common Stocks 99.1%
Issuer Shares Value ($)
Consumer Discretionary 14.4%
Auto Components 3.3%
Cooper-Standard Holding, Inc.(a)
Auto Supplier: Sealing, Fuel/Brake Delivery, Fluid Transfer, Anti-Vibrate Systems
278,980 28,840,952
Gentex Corp.
Manufacturer of Auto Parts
2,034,222 40,053,831
LCI Industries
RV & Manufactured Home Components
356,099 38,369,667
Tenneco, Inc.(a)
Auto Parts for Emission Control, Suspension
840,533 52,508,097
Total   159,772,547
Distributors 0.8%
LKQ Corp.(a)
Alternative Auto Parts Distribution
1,317,619 40,385,022
Diversified Consumer Services 0.5%
Bright Horizons Family Solutions, Inc.(a)
Child Care/Preschool Services
360,017 25,208,390
Hotels, Restaurants & Leisure 4.0%
Domino’s Pizza, Inc.
Franchisor of Pizza Restaurants
158,399 25,223,457
Dunkin’ Brands Group, Inc.
Franchisor of Quick Service Restaurants
564,984 29,627,761
Papa John’s International, Inc.
Franchisor of Pizza Restaurants
440,272 37,678,478
Popeyes Louisiana Kitchen, Inc.(a)
Popeyes Restaurants
415,745 25,144,257
Texas Roadhouse, Inc.
Rural-focused Full Service Steakhouse
509,339 24,570,513
Vail Resorts, Inc.
Ski Resort Operator & Developer
304,645 49,142,285
Total   191,386,751
Household Durables 2.6%
Cavco Industries, Inc.(a)
Manufactured Homes
256,459 25,607,431
iRobot Corp.(a)
Home Robots (Vacuums, Pool Cleaners) & Battlefield Reconnaissance Robots
667,666 39,025,078
Leggett & Platt, Inc.
Designs & Produces Diverse Products for Homes, Offices & Vehicles
528,700 25,842,856
NVR, Inc.(a)
Homebuilder
20,200 33,713,800
Total   124,189,165
Common Stocks (continued)
Issuer Shares Value ($)
Internet & Catalog Retail 0.3%
Liberty TripAdvisor Holdings, Inc., Class A(a)
Holding Company for Trip Advisor
1,029,572 15,495,059
Leisure Products 0.5%
Polaris Industries, Inc.(b)
Leisure Vehicles & Related Products
304,121 25,056,529
Specialty Retail 1.9%
Five Below, Inc.(a)
Low-price Specialty Retailer Targeting Pre-Teens, Teens & Parents
910,489 36,383,141
Monro Muffler Brake, Inc.
Automotive Services
446,259 25,526,015
Ulta Salon Cosmetics & Fragrance, Inc.(a)
Specialty Beauty Product Retailer
110,376 28,139,257
Total   90,048,413
Textiles, Apparel & Luxury Goods 0.5%
Hanesbrands, Inc.
Apparel Wholesaler
1,189,520 25,657,947
Total Consumer Discretionary 697,199,823
Consumer Staples 1.9%
Food & Staples Retailing 0.5%
US Foods Holding Corp.(a)
U.S. Food Distributor
983,688 27,031,746
Household Products 1.4%
Spectrum Brands Holdings, Inc.
Household Product Brands
307,067 37,563,506
WD-40 Co.
Manufacturer of Industrial Lubrications
244,724 28,608,236
Total   66,171,742
Total Consumer Staples 93,203,488
Energy 3.7%
Energy Equipment & Services 1.7%
Oil States International, Inc.(a)
Oilfield Service Provider
589,504 22,990,656
RPC, Inc.(b)
North American Onshore Oil Service
1,884,243 37,326,854
ShawCor Ltd.
Oil & Gas Pipeline Products
755,788 20,174,611
Total   80,492,121
 
 
The accompanying Notes to Portfolio of Investments are an integral part of this statement.
Columbia Acorn Family of Funds  | Annual Report 2016
43


Table of Contents
Portfolio of Investments  (continued)
Columbia Acorn® Fund, December 31, 2016
Common Stocks (continued)
Issuer Shares Value ($)
Oil, Gas & Consumable Fuels 2.0%
Carrizo Oil & Gas, Inc.(a)
Oil & Gas Producer
621,033 23,195,583
Cimarex Energy Co.
Oil & Gas Producer in Texas, New Mexico & Oklahoma
217,317 29,533,380
Diamondback Energy, Inc.(a)
Oil & Gas Producer in Texas
427,434 43,196,480
Total   95,925,443
Total Energy 176,417,564
Financials 17.0%
Banks 5.2%
Associated Banc-Corp.
Midwest Bank
2,057,675 50,824,572
BOK Financial Corp.(b)
Tulsa-based Southwest Bank
561,417 46,620,068
First Republic Bank
San Francisco Bank to Affluent
477,662 44,011,777
MB Financial, Inc.
Chicago Bank
1,322,056