SECOND QUARTER 2021 INVESTMENT COMMENTARY

Columbia Ultra Short Term Fund TM ColOverall Morningstar Rating Fund performance

▪ For the quarter ending June 30, 2021, Columbia Ultra Short Term Bond Fund Class A Institutional Class Institutional Class shares returned 0.15%. The Morningstar Rating is for the The fund outperformed its benchmark, the Bloomberg Barclays U.S. Short Term indicatedFund strategy share classes only as of ▪ 06/30/21; other classes may have Government/Corporate Index, which returned 0.03% for the same period. different▪ > performanceInvests in good characteristics.-quality The second quarter of 2021 saw a continuation of spread-tightening, as accommodative The Morningstarsmall- and mid ratings-cap stocksfor the that ▪ overall, three-, five- and ten-year policy, vaccinations and the accompanying economic recovery benefited spread appear undervalued relative to their periods for Class A shares are 3 products. Short investment-grade corporate and securitized bonds outperformed stars,growth 3 stars, potential 3 stars and 2 stars and for Institutional Class shares are Treasuries during the quarter. ▪ > Adheres to a time-tested 3 stars, 3 stars, 3 stars and 3 stars ▪ Every subsector within the short corporate universe outperformed similar duration amonginvestment 204, 204, process, 162 and 80which relies Ultrashort Bond funds, respectively, Treasuries, led by finance and electric utilities. (Duration is a measure of a bond’s price on extensive research to uncover and are based on a Morningstar Risk- sensitivity to changes in interest rates.) Short asset-backed securities (ABS) and Adjustedopportunities Return measure. commercial mortgage-backed securities (CMBS) also had positive excess returns. ▪ Run by an experienced ▪ For monthly performance information, please check online at management team, supported by a large analytical staff columbiathreadneedle.com. Fund strategy ▪ ▪ Strives to provide daily NAV stability Market overview ▪ and minimal total return volatility, After a challenging first three months of the year, the stabilized during the especially in volatile or rising rate second quarter. Economic data suggested that growth, while remaining healthy, may ease environments, by diversifying sectors in the latter half of 2021 and remove some of the upward pressure on inflation and interest and avoiding exposure to higher risk rates. In addition, investors appeared to become more comfortable with the view that the investments while maintaining an recent acceleration in inflation has largely been driven by short-term supply-chain average duration of 0.40 to 0.80 bottlenecks and is likely to be transitory. The Federal Reserve helpfully continued to affirm years its intention to keep short-term interest rates near zero for several quarters to come, while ▪ Strategically manages sector signaling that it could begin to taper its bond purchases by year end. Against this exposure and positioning backdrop, the yield on the ten-year U.S. Treasury note, which is closely watched as a by investing in a diversified portfolio barometer of growth and inflation expectations, fell from 1.74% to 1.47% over the quarter. of high-quality bonds, which typically results in a low correlation to the fund’s Morningstar category Average annual total returns (%) for period ending June 30, 2021 ▪ Aims to generate competitive income and total return to help preserve Columbia Ultra Short Term Bond Fund 3-mon. 1-year 3-year 5-year 10-year capital and meet cash flow needs Institutional Class1 0.15 1.01 1.98 1.64 1.08

Institutional 3 Class 0.16 0.93 2.04 1.72 1.18

Expense ratio2 Class A1 0.12 0.75 1.79 1.47 0.92

Share class Bloomberg Barclays U.S. Short-Term No 2waiver With waiver 0.03 0.25 1.75 1.47 0.90 ▪ Expense ratio Government/Corporate Index (gross) (net) ▪Share ▪Without waiver ▪With waiver Inst 0.35% 0.35% Performance data shown represents past performance and is not a guarantee of future results. The class (gross) (net) investment return and principal value of an investment will fluctuate so that shares, when redeemed, ▪Inst A 3 ▪ 1.08%0.25% ▪0.25% — may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown. Please visit columbiathreadneedle.com for performance data current to ▪ ZA ▪ 0.79%0.50% ▪0.50% — the most recent month end. © 2021 Columbia Management Investment Advisers, LLC. All rights reserved. columbiathreadneedle.com 800.426.3750

3665694 (07/21)

SECOND QUARTER 2021 INVESTMENT COMMENTARY

Credit Quality (%) As gauged by the Bloomberg Barclays U.S. Aggregate Bond Index, the broad U.S. as of June 30, 2021 investment-grade taxable bond market returned 1.83% for the quarter. Returns for longer maturity Treasuries were notably positive, as yields drifted lower over the period. Columbia Ultra Short Term Bond Fund Corporate bonds led performance within the investment-grade benchmark with a return of 3.55% as measured by the Bloomberg Barclays U.S Index, Treasury 1.6 supported by declining Treasury yields and continued firm credit sentiment given strong Agency 2.0 company earnings. Returns for securitized assets were marginally positive for the AAA 19.5 quarter, with CMBS outperforming residential mortgage-backed securities and ABS. AA 18.6 Performance for high-yield corporate bonds, which is primarily driven by credit sentiment, was strong as reflected in the 2.74% return for the Bloomberg Barclays U.S. A 26.9 Corporate High Yield Index. Similarly, credit-sensitive floating rate bank loans also BBB 25.8 posted positive returns. The tax-free bond market returned 1.42% for the quarter, as Cash and Equivalents 2.0 gauged by the Bloomberg Barclays Index. Non-rated 3.7 Contributors and detractors ▪ Corporate bond spreads were tighter during the quarter, outperforming similar- duration Treasuries. Within the short corporate market, exposures to the finance and electric utility subsectors were most additive to performance, as they significantly outperformed similar-duration Treasuries. While all corporate subsectors had positive excess returns vs. Treasuries, issuers within the consumer non-cyclical sector lagged the others. Concerning credit quality, the fund was overweight BBB rated corporate bonds, which outperformed AA and A rated quality bonds on an excess return basis.

Top ten sector weights (%): fund vs. benchmark as of June 30, 2021

ABS 32.4

Industrial 25.0

Financial 21.1

MBS 8.5

Utilities 5.2

Cash and Equivalents 2.8

Agency 2.0

Treasury 1.6

Non-Corp 1.1 Series1

CMBS 0.4

0.0 10.0 20.0 30.0 40.0

Source: BlackRock

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SECOND QUARTER 2021 INVESTMENT COMMENTARY

▪ The fund’s exposure to securitized products was a positive contributor during the quarter. While most of our ABS exposures are in short, high-quality auto-backed paper, we also continue to hold non-agency collateralized mortgage obligations (CMOs) and short, high-quality CMBS. We continue to look for opportunities within each of these securitized sectors, as we consider them to be particularly attractive given their yield advantage over government securities and similarly rated corporate issues. ABS represents most of the high-quality collateralized securities that we invested in, as they offer more stable and predictable cash flows. ABS and CMBS both outperformed Treasuries during the quarter. The Bloomberg Barclays ABS Aaa-Only Index outperformed Treasuries by 0.23%, while the Bloomberg Barclays 1–3.5 Year AAA CMBS Index outperformed Treasuries by 0.34%. ▪ We maintained the fund’s duration slightly long relative to the benchmark’s duration. The fund’s exposure to longer dated securities marginally detracted from performance. Two-year rates rose nine basis point to 0.25%.

Outlook We are targeting a duration that is slightly long relative to that of the benchmark. We expect short-term rates (0 to 1-year maturities) to remain near current levels, as the Fed keeps their overnight lending rates unchanged in the near term. We continue to monitor COVID-19 cases and vaccinations, potential Biden administration policies and unemployment claims. We are watching for signs of whether recent inflation will be transitory and forecasts of the Fed’s balance sheet. Policymakers around the world have put a lot of monetary and fiscal stimulus into place. Some of these policies may not be extended so we will need to monitor that impact on growth. Looking ahead, the fund remains underweight U.S. government securities relative to the benchmark. We continue to expect spread volatility but consider current risk premiums to be attractive in most sectors. We remain constructive on non-agency CMOs, ABS and CMBS, as they offer particularly attractive spreads. Demand for corporate bonds is strong, however, valuations are more fair value now, and we see better opportunities in structured securities. We remain overweight the banking, communications and electric utilities sectors. We are underweighting the consumer cyclical and REIT sectors.

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SECOND QUARTER 2021 INVESTMENT COMMENTARY

Investors should consider the investment objectives, risks, charges and expenses of a carefully before investing. For a free prospectus or a summary prospectus, which contains this and other important information about the funds, visit columbiathreadneedleus.com/investor/. Read the prospectus carefully before investing. Columbia funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA and managed by Columbia Management Investment Advisers, LLC. Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. The views expressed are as of the date given, may change as market or other conditions change and may differ from views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, may not necessarily reflect the views expressed. This information is not intended to provide investment advice and does not take into consideration individual investor circumstances. Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance. Asset classes described may not be appropriate for all investors. Past performance does not guarantee future results, and no forecast should be considered a guarantee either. Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that any forecasts are accurate. Investment Risks Additional performance information: All results shown assume reinvestment of distributions and do not reflect the Market risk may affect a single deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. issuer, sector of the economy, ©2021 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, industry or the market as a whole. complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from Mortgage- and asset-backed any use of this information. securities are affected by interest For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM used to rank the rates, financial health of issuers/ fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return originators, creditworthiness of measure that accounts for variation in a fund's monthly excess performance, without any adjustments for loads entities providing credit (front-end, deferred, or redemption fees), placing more emphasis on downward variations and rewarding enhancements and the value of consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for underlying assets. Fixed-income comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next securities present issuer default 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star (Each share class is counted as a risk. A rise in interest rates may fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages). The Overall Morningstar RatingTM for a fund is derived from a weighted average of the performance result in a price decline of fixed- figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. income instruments held by the Current and future fund holdings are subject to risk. Credit ratings are subjective opinions of the credit rating agency and fund, negatively impacting its not statements of fact and may become stale or subject to change. performance and NAV. Falling rates 1The returns shown for periods prior to the share class inception date (including returns since inception, which are since may result in the fund investing in fund inception) include the returns of the fund’s oldest share class. These returns are adjusted to reflect any higher class- lower yielding debt instruments, related operating expenses of the newer share classes, as applicable. For more information please lowering the fund’s income and visit:www.columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance. yield. These risks may be 2The fund’s expense ratio is from the most recent prospectus. heightened for longer maturity and Shares of the Columbia Ultra Short Term Bond Fund are sold only at NAV. Only eligible investors may purchase shares duration securities. Prepayment of the fund. See the prospectus for eligibility requirements and other important information and extension risk exists because The Bloomberg Barclays U.S. Short-term Government/Corporate Index represents securities that have fallen out of the timing of payments on a loan, the U.S. Government/Corporate Index because of the standard minimum one year to maturity constraint. bond or other investment may The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment accelerate when interest rates fall or grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate decelerate when interest rates rise securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS. which may reduce investment The Bloomberg Barclays U.S. Corporate Bond Index consists of publicly issued, fixed rate, non-convertible, opportunities and potential returns. investment grade debt securities. Investing in derivatives is a The Bloomberg Barclays U.S. Corporate High Yield Index measures the market of USD-denominated, non-investment specialized activity involves special grade, fixed-rate, taxable corporate bonds. risks, which may result in significant The Bloomberg Barclays Municipal Bond Index is an unmanaged index considered representative of the broad market losses. Market or other (e.g., for investment-grade municipal bonds. Bonds in the index have remaining maturities of at least one year. interest rate) environments may The Bloomberg Barclays ABS Aaa Only Index is the Aaa Only component of the Bloomberg Barclays Asset-Backed adversely affect the liquidity of fund Securities (ABS) Index, which is part of the Bloomberg Barclays U.S. Aggregate Index. The Asset-Backed Securities investments, negatively impacting (ABS) Index includes ABS with the following collateral types: credit cards, autos, and utility. The index includes their price. Generally, the less liquid passthrough, bullet and controlled amortization structures. The ABS Index includes only the senior class of each ABS the market at the time the fund sells issue and the ERISA-eligible B and C tranche. a holding, the greater the risk of loss The Bloomberg Barclays 1-3.5 Year AAA CMBS Index is an unmanaged market value weighted performance or decline of value to the fund. benchmark for Aaa rated commercial mortgage-backed securities with an average life between 1-3.5 years in the Bloomberg Barclays CMBS Index. Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg's licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. Indices shown are unmanaged and do not reflect the impact of fees. It is not possible to invest directly in an index.

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