497 1 multi.txt TRUST 11 TRUSTEES COLUMBIA FUNDS TRUST I Columbia High Yield Opportunity Fund Columbia Strategic Income Fund Columbia Tax-Managed Growth Fund Columbia Tax-Managed Growth Fund II* Columbia Tax-Managed Value Fund Columbia Tax-Managed Aggressive Growth Fund COLUMBIA FUNDS TRUST II Columbia Newport Greater China Fund* Columbia Money Market Fund* COLUMBIA FUNDS TRUST III Columbia Mid Cap Value Fund Columbia Liberty Fund* Columbia Global Equity Fund Columbia Contrarian Income Fund* Columbia Intermediate Government Income Fund* Columbia Quality Plus Bond Fund* Columbia Corporate Bond Fund* Columbia Federal Securities Fund COLUMBIA FUNDS TRUST IV Columbia Tax-Exempt Fund Columbia Tax-Exempt Insured Fund Columbia Utilities Fund Columbia Municipal Money Market Fund* COLUMBIA FUNDS TRUST V Columbia California Tax-Exempt Fund* Columbia Connecticut Tax-Exempt Fund* Columbia Massachusetts Tax-Exempt Fund* Columbia New York Tax-Exempt Fund Columbia Large Company Index Fund* Columbia U.S. Treasury Index Fund* Columbia Small Company Index Fund* Columbia Intermediate Tax-Exempt Bond Fund* Columbia Massachusetts Intermediate Municipal Bond Fund* Columbia Connecticut Intermediate Municipal Bond Fund* Columbia New Jersey Intermediate Municipal Bond Fund* Columbia New York Intermediate Municipal Bond Fund* Columbia Rhode Island Intermediate Municipal Bond Fund* Columbia Florida Intermediate Municipal Bond Fund* Columbia Pennsylvania Intermediate Municipal Bond Fund* COLUMBIA FUNDS TRUST VI Columbia Growth & Income Fund Columbia Small Cap Value Fund Columbia Newport Asia Pacific Fund COLUMBIA FUNDS TRUST VII Columbia Newport Tiger Fund Columbia Europe Fund* COLUMBIA FUNDS TRUST VIII Columbia Income Fund* Columbia Intermediate Bond Fund* COLUMBIA FUNDS TRUST IX Columbia High Yield Municipal Fund* Columbia Managed Municipals Fund* COLUMBIA FUNDS TRUST XI Columbia Young Investor Fund Columbia Growth Stock Fund Columbia Global Thematic Equity Fund* Columbia European Thematic Equity Fund* Columbia Asset Allocation Fund* Columbia Dividend Income Fund* Columbia Large Cap Core Fund* Columbia International Equity Fund* Columbia Large Cap Growth Fund* Columbia Disciplined Value Fund* Columbia Small Cap Fund* Columbia Small Company Equity Fund* COLUMBIA FLOATING RATE FUND COLUMBIA INSTITUTIONAL FLOATING RATE INCOME FUND COLUMBIA FLOATING RATE ADVANTAGE FUND The Funds listed above are referred to collectively as the "Funds" and the Trusts listed above are referred to collectively as "Trusts." SUPPLEMENT TO THE STATEMENTS OF ADDITIONAL INFORMATION (Replacing Supplements dated November 3, 2003 and March 15, 2004) Each Fund's Statement of Additional Information is amended as follows: 1. Effective March 1, 2004, PricewaterhouseCoopers LLP, located at 125 High Street, Boston, Massachusetts 02110-1707, replaced Ernst & Young LLP as independent accountants for all of the Funds. PricewaterhouseCoopers LLP provides audit and tax return review services, and assistance and consultation in connection with the review of various Securities and Exchange Commission filings. (Relevant to funds with asterisk.) 2. Effective June 18, 2003, Salvatore Macera retired as a Trustee from the Board of Trustees/Managers. 3. At the June, 2003 Board of Trustees meeting the Trustees approved the following changes to the compensation for the Trustees: The Trustees serve as trustees of all open-end funds managed by Columbia Management Advisors, Inc. for which each Trustee will receive an annual retainer of $45,000 and attendance fees of $9,500 for each regular and special joint board meeting and $1,000 for each special telephonic joint board meeting. The Chairman of the Board receives an annual retainer of $40,000. All committee chairs, except the Audit Committee chair, receive an annual retainer of $5,000 and Committee chairs receive $1,500 for each special committee meeting attended on a day other than a regular joint board meeting day. The Audit Committee chair receives an annual retainer of $10,000 and receives $2,000 for each Audit Committee meeting. Committee members receive $1,500 for each special committee meeting attended on a day other than a regular joint board meeting day. Two-thirds of the Trustee fees are allocated among the Funds based on each Fund's relative net assets and one-third of the fees is divided equally among the Funds. 4. Each of the committees listed under the section Trustees and Trustees' Fees have had a change in the committee members. The following changes were effective October 8, 2003: Audit Committee Ms. Verville and Messrs. Hacker, Stitzel and Woolworth are members of the Audit Committee of the Board of Trustees of the Funds. Prior to October 8, 2003, Ms. Verville and Messrs. Hacker, Nelson and Neuhauser were members of the Audit Committee of the Board of Trustees of the Funds. Governance Committee Messrs. Lowry, Mayer, Simpson and Theobald are members of the Governance Committee of the Board of Trustees of the Funds. Prior to October 8, 2003, Ms. Verville and Messrs. Hacker, Lowry, Mayer and Theobald were members of the Governance Committee of the Board of Trustees of the Funds. Advisory Fees & Expenses Committee Ms. Kelly and Messrs. Mayer, Nelson and Neuhauser are members of the Advisory Fees and Expenses Committee of the Board of Trustees of the Funds. Prior to October 8, 2003, Ms. Kelly and Messrs. Mayer, Neuhauser, Stitzel and Theobald were members of the Advisory Fees and Expenses Committee of the Board of Trustees of the Funds. The paragraph Trading Oversight Committee under the section Trustees and Trustees' Fees is replaced with the following: Investment Oversight Committees Beginning in 2004, each Trustee of the Funds also began serving on an Investment Oversight Committee ("IOC"). Each IOC is responsible for monitoring, on an ongoing basis, a select group of funds in the Fund Complex and gives particular consideration to such matters as the Funds' adherence to their investment mandates, historical performance, changes in investment processes and personnel, and proposed changes to investment objectives. Investment personnel who manage the Funds attend IOC meetings from time to time to assist each IOC in its review of the Funds. Each IOC meets four times a year. The following are members of the respective IOCs and the general categories of funds in the Fund Complex which they review: IOC #1: Messrs. Lowry, Mayer and Neuhauser are responsible for reviewing funds in the following asset categories: Large Growth Diversified, Large Growth Concentrated, Small Growth, Outside Managed (i.e., sub-advised), Municipal and Bank Loan. IOC #2: Mr. Hacker and Ms. Verville are responsible for reviewing funds in the following asset categories: Large Blend, Small Blend, Foreign Stock, Fixed Income - Multi Sector, Fixed Income - Core and Young Investor. IOC#3: Messrs. Theobald and Stitzel and Ms. Kelly are responsible for reviewing funds in the following asset categories: Large Value, Mid Cap Value, Small Value, Asset Allocation, High Yield and Money Market. IOC#4: Messrs. Nelson, Simpson and Woolworth are responsible for reviewing funds in the following asset categories: Large/Multi-Cap Blend, Mid Cap Growth, Small Growth, Asset Allocation, Specialty Equity and Taxable Fixed Income. 6. On October 7, 2003 the Board of Trustees/Managers of the Trusts elected Patrick J. Simpson and Richard L. Woolworth as new trustees of the Trusts. 7. The following table sets forth the compensation paid to Messrs. Simpson and Woolworth in their capacities as Trustees of the Columbia Board:
Total Compensation from the Columbia Funds Complex Paid to the Trustee Trustees for the Calendar Year Ended December 31, 2003 ------- ------------------------------------------------------ Patrick J. Simpson $64,234 Richard L. Woolworth 64,234
8. As of December 31, 2003, Messrs. Simpson and Woolworth did not own any shares of the Funds. Under the heading Share Ownership under the section Trustees and Trustees' Fees the column "Aggregate Dollar Range of Equity Securities Owned in All Funds Overseen by Trustee in Columbia Funds Complex" is revised as follows: The following table shows the dollar range of equity securities beneficially owned by each Trustee as of December 31, 2003 (i) in each Fund and (ii) in the funds in the Fund Complex:
Aggregate Dollar Range of Equity Securities Owned in All Funds Overseen by Trustee in Name of Trustee Fund Complex Disinterested Trustees Patrick J. Simpson $50,001-$100,000 Richard L. Woolworth Over $100,000
6. 9. The section describing the Trustees and Officers under the section Trustees and Officers is revised in its entirety as follows: Trustees and Officers The Trustees and officers serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in the Fund Complex, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of portfolios overseen by each Trustee and other directorships they hold are shown below.
Number of Portfolios in Fund Name, Address Position Year First Complex and Age with Elected or Principal Occupation(s) During Overseen Other ------- ----- ------------------------------- ----- Funds Appointed Past Five Years by Trustee Directorships ----- --------------- ---------- ------------- to Office(1) Held -------- ---- Disinterested Trustees Douglas A. Hacker Trustee 1996 Executive Vice President - 119 Orbitz, Inc. (Age 48) Strategy of United Airlines (on-line travel P.O. Box 66100 (airline) since December, 2002 company) Chicago, IL 60666 (formerly President of UAL Loyalty Services (airline) from September, 2001 to December, 2002; Executive Vice President and Chief Financial Officer of United Airlines from March, 1993 to September, 2001). Janet Langford Kelly Trustee 1996 Private Investor since March 119 None (Age 45) 2004 (formerly Chief 9534 W. Gull Lake Administrative Officer and Drive Senior Vice President, Kmart Richland, MI Holding Corporation (consumer 49083-8530 goods) from September, 2003 to March, 2004; Executive Vice President-Corporate Development and Administration, General Counsel and Secretary, Kellogg Company (food manufacturer), from September, 1999 to August, 2003; Senior Vice President, Secretary and General Counsel, Sara Lee Corporation (branded, packaged, consumer-products manufacturer) from January, 1995 to September, 1999). Richard W. Lowry (Age Trustee 1995 Private Investor since August, 121(3) None 67) 1987 (formerly Chairman and 10701 Charleston Drive Chief Executive Officer, U.S. Vero Beach, FL 32963 Plywood Corporation (building products manufacturer)).
Number of Portfolios in Fund Name, Address Position Year First Complex and Age with Elected or Principal Occupation(s) During Overseen Other ------- ----- ------------------------------- ----- Funds Appointed Past Five Years by Trustee Directorships ----- --------------- ---------- ------------- to Office(1) Held -------- ---- Charles R. Nelson Trustee 1981 Professor of Economics, 119 None (Age 61) University of Washington, Department of since January, 1976; Ford and Economics Louisa Van Voorhis Professor University of of Political Economy, Washington University of Washington, Seattle, WA 98195 since September, 1993; Director, Institute for Economic Research, University of Washington, since September, 2001; Adjunct Professor of Statistics, University of Washington, since September, 1980; Associate Editor, Journal of Money Credit and Banking, since September, 1993; consultant on econometric and statistical matters. John J. Neuhauser Trustee 1985 Academic Vice President and 122(3,4) Saucony, Inc. (Age 60) Dean of Faculties since (athletic 84 College Road August, 1999, Boston College footwear); Chestnut Hill, MA (formerly Dean, Boston College SkillSoft Corp. 02467-3838 School of Management from (E-Learning) September, 1977 to September, 1999). Patrick J. Simpson Trustee 2000 Partner, Perkins Coie L.L.P. 119 None (Age 58) (law firm). 1211 S.W. 5th Avenue Suite 1500 Portland, OR 97204 Thomas E. Stitzel Trustee 1998 Business Consultant since 1999 119 None (Age 67) (formerly Professor of Finance 2208 Tawny Woods Place from 1975 to 1999, College of Boise, ID 83706 Business, Boise State University); Chartered Financial Analyst.
Number of Portfolios in Fund Name, Address Position Year First Complex and Age with Elected or Principal Occupation(s) During Overseen Other ------- ----- ------------------------------- ----- Funds Appointed Past Five Years by Trustee Directorships ----- --------------- ---------- ------------- to Office1 Held -------- ---- Thomas C. Theobald Trustee 1996 Managing Director, William 119 Anixter (Age 66) and Blair Capital Partners International 227 West Monroe Chairman (private equity investing) (network Street, of the since September, 1994. support Suite 3500 Board equipment Chicago, IL 60606 distributor), Jones Lang LaSalle (real estate management services) and MONY Group (life insurance) Anne-Lee Verville Trustee 1998 Author and speaker on 120(4) Chairman of the (Age 58) educational systems needs Board of 359 Stickney Hill Road (formerly General Manager, Directors, Hopkinton, NH 03229 Global Education Industry, IBM Enesco Group, Corporation (computer and Inc. (designer, technology) from 1994 to 1997). importer and distributor of giftware and collectibles) Richard L. Woolworth Trustee 1991 Retired since December 2003 119 NW Natural (Age 62) (formerly Chairman and Chief (natural gas 100 S.W. Market Executive Officer, The Regence service Street #1500 Group (regional health provider) Portland, OR 97207 insurer); Chairman and Chief Executive Officer, BlueCross BlueShield of Oregon; Certified Public Accountant, Arthur Young & Company) Interested Trustee William E. Mayer(2) Trustee 1994 Managing Partner, Park Avenue 121(3) Lee Enterprises (Age 63) Equity Partners (private (print media), 399 Park Avenue equity) since February, 1999 WR Hambrecht + Suite 3204 (formerly Founding Partner, Co. (financial New York, NY 10022 Development Capital LLC from service November 1996 to February, provider) and 1999). First Health (healthcare) (1) In October 2003, the trustees of the Liberty Funds and Stein Roe Funds (both as defined in Part 1 of this SAI) were elected to the boards of the Columbia Funds; simultaneous with that election, Patrick J. Simpson and Richard L. Woolworth, who had been directors/trustees of the Columbia Funds were appointed to serve as trustees of the Liberty Funds and Stein Roe Funds. The date shown is the earliest date on which a trustee/director was elected or appointed to the board of a Fund in the Fund Complex. (2) Mr. Mayer is an "interested person" (as defined in the Investment Company Act of 1940 ("1940 Act")) by reason of his affiliation with WR Hambrecht + Co. (3) Messrs. Lowry, Neuhauser and Mayer also serve as directors/trustees of the All-Star Funds (as defined in Part 1 of this SAI). (4) Mr. Neuhauser and Ms. Verville also serve as disinterested directors of Columbia Management Multi-Strategy Hedge Fund, LLC, which is advised by the Advisor.
Year First Name, Address Position Elected or and Age with Funds Appointed Principal Occupation(s) During Past Five Years ------- ---------- ---------------------------------------------- to Office ------ Officers J. Kevin Connaughton President 2000 President of the Columbia Funds, Liberty (age 39) and Funds and Stein Roe Funds since March, 2004; Chief Financial One Financial Center Treasurer Officer of the Columbia Funds since January, Boston, MA 02111 2003; Treasurer of the Columbia Funds since October, 2003 and of the Liberty Funds, Stein Roe Funds and All-Star Funds since December, 2000; Vice President of the Advisor since April, 2003 (formerly Controller of the Liberty Funds and All-Star Funds from February, 1998 to October, 2000); Treasurer of the Galaxy Funds since September, 2002; Treasurer, Columbia Management Multi-Strategy Hedge Fund, LLC since December, 2002 (formerly Vice President of Colonial from February, 1998 to October, 2000 and Senior Tax Manager, Coopers & Lybrand, LLP from April, 1996 to January, 1998). Vicki L. Benjamin (Age Chief 2001 Controller of the Columbia Funds since July, 2003 and of the 42) Accounting Liberty Funds, Stein Roe Funds and All-Star Funds since May, One Financial Center Officer 2002; Chief Accounting Officer of the Columbia Funds since Boston, MA 02111 and July, 2003 and Liberty Funds, Stein Roe Funds and All-Star Controller Funds since June, 2001; Controller and Chief Accounting Officer of the Galaxy Funds since September, 2002 (formerly Vice President, Corporate Audit, State Street Bank and Trust Company from May, 1998 to April, 2001; Audit Manager from July, 1994 to June, 1997; Senior Audit Manager from July, 1997 to May, 1998, Coopers & Lybrand, LLP). David A. Rozenson (Age Secretary 2003 Secretary of the Columbia Funds, Liberty Funds, Stein Roe Funds 49) and All-Star Funds since December, 2003; Senior Counsel, Fleet One Financial Center Boston Financial Corporation since January, 1996; Associate Boston, MA 02111 General Counsel, Columbia Management Group since November, 2002.
G-35/665R-0304 March 31, 2004