497 1 cchyfprosupp.txt CCHYF SUPPS Columbia Conservative High Yield Fund (the "Fund") Supplement to the Fund's Prospectuses dated January 1, 2007 1. The first paragraph under "Principal Investment Strategies" is revised in its entirety as follows: Normally, the Fund will invest at least 80% of its assets (plus any borrowings for investment purposes) in bonds rated Ba or B by Moody's Investors Service, Inc. (Moody's) or BB or B by Standard & Poor's (S&P). No more than 10% of the Fund's assets will be invested in bonds rated Caa by Moody's or CCC by S&P, and no Fund assets will be invested in bonds rated, at the time of purchase, below these grades. By focusing on higher quality junk bonds, the Fund seeks access to higher yielding bonds without assuming all the risk associated with the broader junk bond market. The Fund may invest up to 20% of its assets in foreign fixed income securities. 2. The following risk disclosure is added under the heading "Principal Investment Risks": Foreign securities are subject to special risks. Foreign markets can be extremely volatile. Fluctuations in currency exchange rates may impact the value of foreign securities without a change in the intrinsic value of those securities denominated in foreign currencies and U.S. dollars. The liquidity of foreign securities may be more limited than that of domestic securities, which means that the Fund may, at times, be unable to sell foreign securities at desirable prices. Brokerage commissions, custodial fees and other fees are generally higher for foreign investments. The Fund may have limited legal recourse in the event of default with respect to certain debt securities issued by foreign governments. In addition, foreign governments may impose withholding taxes which would reduce the amount of income and capital gains available to distribute to shareholders. Other risks include: possible delays in the settlement of transactions or in the notification of income; less publicly available information about companies; the impact of political, social or diplomatic events; possible seizure, expropriation or nationalization of the company or its assets; and possible imposition of currency exchange controls. INT-47/127584-0207 February 28, 2007 COLUMBIA CONSERVATIVE HIGH YIELD FUND Series of Columbia Funds Series Trust I (the "Fund") SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED JANUARY 1, 2007 The chart under the section "INVESTMENTS HELD AND INVESTMENT PRACTICES USED BY THE FUNDS" has been revised in its entirety and replaced with the following: Chart of Securities and Investment Practices
CMCG CSCG CREF CTF CSIF Investment Grade Securities (Baa or higher * * * * * by Moody's, BBB or higher by S&P or believed by the Advisor to be equivalent), other than U.S. Government obligations and municipal securities Non-Investment Grade Securities NA NA NA NA NA Domestic Bank Obligations * * * * * U.S. Government Securities * * * * * Mortgage-Backed Securities NA NA NA NA NA CMOs NA NA NA NA NA Asset-Backed Securities NA NA NA NA NA Floating or Variable Rate NA NA NA NA NA Loan Transactions X O O O O Options & Financial Futures O O O O O Foreign Equities(1) Developed Markets 20%, O 20%, O 20%, O 33%, O 33%, + Emerging Markets(2) X X X X + ADRs, GDRs and NASDAQ-listed 20%, O 20%, O O 33%, O 33%, + foreign securities(1) Currency Contracts Hedging O O O O O Speculation X X X X X Spot Basis O O O O O Repurchase Agreements * * * * * Illiquid (exclude 144A securities from 15%, O 15%, O 15%, O 15%, O 15%, O definition of illiquid with board supervision) Convertible Securities/Warrants + + + + + Small Companies + + + + + Dollar Roll Transactions NA NA NA NA NA Swap Agreements NA NA NA NA NA When-Issued Securities O O O O O Foreign Fixed Income Securities NA NA NA NA NA (including Foreign Bank Obligations) Zero Coupon/Pay in Kind NA NA NA NA NA Real Estate (excluding REITs) X X X X X REITs + O + O + Borrowing 5%, * 5%, * 5%, * 33.3%,* 33.3%, *
+ Permitted - Part of principal investment strategy X Not permitted either as a non-fundamental or fundamental policy O Permitted - Not a principal investment strategy * Temporary Investment or cash management purposes % Percentage of net assets (unless "total assets" specified) that Fund may invest NA Not part of investment strategy (1)Any limitation on foreign investments includes investments in both foreign securities purchased in foreign markets and ADRs, GDRs and NASDAQ-listed foreign securities. (2)ADRs, GDRs and NASDAQ-listed securities are not subject to this limitation, even if the issuer is headquartered in, has its principal operations in, derives its revenues from, has its principal trading market located in or was legally organized in an emerging market country. CMBF CHYF CBF Investment Grade Securities (Baa or O O + higher by Moody's, BBB or higher by S&P or believed by the Advisor to be equivalent), other than U.S. Government obligations and municipal securities Non-Investment Grade Securities NA + 10%, O Domestic Bank Obligations * * * Commercial Paper * * * U.S. Government Securities * * + Mortgage-Backed Securities NA O + CMOs NA O + Asset-Backed Securities NA O + Floating or Variable Rate O O + Loan Transactions O O X Options & Financial Futures + O + Foreign Equities(1) Developed Markets NA NA 33.3%, O Emerging Markets(2) NA NA X ADRs, GDRs and NASDAQ-listed NA NA 33.3%, O foreign securities(1) Currency Contracts Hedging NA NA O Speculation NA NA X Spot Basis NA NA O Repurchase Agreements * * * Illiquid (excludes 144A securities from 15%, O 15%, O 15%, O definition of illiquid with board supervision) Convertible Securities/Warrants NA O O Small Companies NA + O Dollar Roll Transactions NA O + Swap Agreements O O O When-Issued Securities O O O Foreign Fixed Income Securities NA 20%, O 20%, O (including Foreign Bank Obligations) Zero Coupon/Pay in Kind + O O Real Estate (excluding REITs) X X X REITs NA O O Borrowing 33.3%,* 5%, * 5%, * Municipal Bonds + NA O + Permitted - Part of principal investment strategy X Not permitted either as a non-fundamental or fundamental policy O Permitted - Not a principal investment strategy * Temporary Investment or cash management purposes % Percentage of net assets (unless "total assets" specified) that Fund may invest NA Not part of investment strategy (1)Any limitation on foreign investments includes investments in both foreign securities purchased in the foreign markets, together with the purchase of ADRs, GDRs and NASDAQ-listed foreign securities. (2)ADRs, GDRs, and NASDAQ-listed foreign securities are not subject to this limitation, even if the issuer is headquartered in, has its principal operations in, derives its revenues from, has its principal trading market located in or was legally organized in an emerging market country. INT-50/127583-0207 February 23, 2007