Note 7. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission,
each Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating
Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other
Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program
are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to
repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional
lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Funds did not borrow or lend money under the Interfund Program during the six
months ended July 31, 2024.
Each Fund has access to a revolving credit facility with a syndicate of banks led
by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of
shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement,
the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million.
Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the
federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus,
in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The
Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15%
per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in
October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, each Fund had access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo
Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based
on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing
rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
No Fund had borrowings during the six months ended July 31, 2024.
Note 9. Significant risks
Columbia Capital Allocation Conservative Portfolio, Columbia Capital Allocation Moderate
Conservative Portfolio, Columbia Capital Allocation Moderate Portfolio, Columbia Capital Allocation Moderate Aggressive
Portfolio and Columbia Capital Allocation Aggressive Portfolio may be more susceptible to derivatives risk. Losses
involving derivative instruments may be substantial, because a relatively small movement in the underlying reference (which
is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency, index or
other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses,
the use of derivative instruments may lead to increased volatility within the Fund. Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation
risk, counterparty risk, hedging risk, leverage risk, liquidity risk and pricing risk.
The Funds may incur losses due to declines in the value of one or more securities
in which they invest. These declines may be due to factors affecting a particular issuer, or the result of, among other things,
political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition,
turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many
issuers, which could adversely affect the Funds’ ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are
increasingly interconnected, and
