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SECOND QUARTER 2021 INVESTMENT COMMENTARY

Share Class A Advisor C Institutional Institutional 2 Institutional 3 R Symbol SLMCX SCIOX SCICX CCIZX SCMIX CCOYX SCIRX

Overall Morningstar RatingTM Columbia Seligman Technology and

Class A Institutional Class Information Fund

The Morningstar Rating is for the indicated Effective June 9, 2021, Columbia Seligman Communications and Information Fund was renamed the share classes only as of 06/30/21; other classes Columbia Seligman Technology and Information Fund to better represent the universe in which the fund may have different performance characteristics. The Morningstar ratings for the overall, invests. three-, five- and 10-year periods for Class A shares are 4 stars, 5 stars, 4 stars and 3 Fund performance stars and for Institutional Class shares are 4 ▪ Institutional Class shares of Columbia Seligman Technology and Information Fund stars, 5 stars, 4 stars and 4 stars among 215, 215, 182 and 157 Technology funds returned 9.62% for the second quarter. respectively, and are based on a Morningstar Risk-Adjusted Return measure. ▪ The fund’s benchmark, the S&P North American Technology Sector , returned 12.29% for the quarter. With a return to work focus ▪ For monthly performance, please visit columbiathreadneedle.com. prompting increases in office IT spending, we think our Market overview companies are well The U.S. stock market gained 8.54% in the second quarter, as gauged by the , bringing its year-to-date return to 14.95%. This marked the fifth consecutive positioned for the coming calendar quarter of positive returns for the index, underscoring the strength in market earnings deluge. performance since the coronavirus-induced lows of March 2020. Stocks were well supported by the combination of strong economic growth, the gradual rollback of the coronavirus lockdowns and robust corporate earnings. Although concerns about rising inflation led to a brief stretch of volatility mid-way through the quarter, the U.S. Federal Reserve reassured the markets that monetary policy would remain accommodative for an Fund strategy extended period. As a result, most major indices finished June at or near their all-time highs. ▪ Conviction-weighted portfolio of companies with business operations In a reversal of a trend that was in place from late 2020 through the first three months of in technology or technology-related this year, the growth style outperformed value. The Russell 1000 Growth Index rose industries 11.93% in the quarter, soundly outpacing the 5.21% return for the Russell 1000 Value Index. As optimism about the second-half growth outlook became more subdued, ▪ Experienced team dedicated to technology industry investing Average annual total returns (%) for period ending June 30, 2021 ▪ Investment selection driven by Columbia Seligman Technology and rigorous bottom-up fundamental and 3-mon. 1-year 3-year 5-year 10-year Information Fund valuation analysis Institutional Class1 9.62 68.10 33.75 31.79 20.93

Class A without sales charge 9.55 67.68 33.42 31.46 20.62

Class A with 5.75% maximum sales charge 3.24 58.03 30.81 29.91 19.91 S&P North AmericanTechnology 12.29 46.07 29.11 31.03 22.02 Sector Index Expense ratio2 Performance data shown represents past performance and is not a guarantee of future results. The No waiver With waiver investment return and principal value of an investment will fluctuate so that shares, when redeemed, Share class (gross) (net) 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 Institutional 0.98% 0.98% the most recent month end. Institutional Class shares are sold at net asset value and have limited A 1.23% 1.23% eligibility. Columbia Management Investment Distributors, Inc. offers multiple share classes, not all necessarily available through all firms, and the share class ratings may vary. Contact us for details.

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3539083 (07/21)

SECOND QUARTER 2021 INVESTMENT COMMENTARY

Columbia Seligman investors rotated away from economically sensitive companies toward those seen as Technology and Information Fund being the most reliable growers. This trend strongly benefited the information technology (IT) sector, which outpaced the broader market by a wide margin. In another shift from Top holdings (% of net assets) previous months, the small-cap — while posting a healthy gain of as of June 30, 2021 4.29% — failed to keep pace with returns for larger companies, as measured by the 7.56 Russell 1000 Index, which returned 8.54% in the second quarter.

Apple 4.88 In the technology industry, a global shortage of semiconductors that has disrupted vehicle production spread to other industries. Electronics said output of smartphones, 4.53 televisions and appliances was affected, and consumer-electronics manufacturer Sony warned that the shortage may last for another year. Meanwhile, Jaguar Land Rover 3.89 announced temporary plant closures, and Ford said its production this year will fall by 1.1 Synaptics 3.84 million vehicles, worse than a prior forecast. Still, the latest round of quarterly results showed that the mega-cap technology firms continue to power ahead. and Apple Broadcom 3.79 beat expectations, Alphabet posted record earnings and announced a $50 billion share buyback program, and ’s sales exceeded $100 billion for a second straight Microsoft 3.47 quarter. Alphabet-Cl A 3.41 Within the benchmark S&P North American Technology Sector Index, several sub industries posted solid absolute gains, led by interactive media and services, and 3.23 . Lagging industries included communication equipment, IT services, internet and Alphabet-Cl C 3.08 direct media, semiconductors and media.

Top holdings exclude short-term holdings Quarterly portfolio recap and cash, if applicable. Fund holdings are as of the date given, are subject to The Columbia Seligman Technology and Information Fund underperformed the change at any time, and are not benchmark S&P North American Technology Sector Index in the second quarter. Leading recommendations to buy or sell any contributors to relative performance included stock selection and an underweight position security. in the internet and direct marketing industry, an underweight to the IT services industry and stock selection in the software industry. Detracting from relative returns was security selection and overweight positions in the semiconductor, communications equipment and hardware industries. Contributors and detractors follow. ▪ attacks were prominent in technology-related headlines during the month. One such incursion interrupted the supply of gasoline to the eastern U.S. by forcing Colonial Pipeline to halt operations temporarily. Ireland’s national health service and the Asian unit of insurer AXA were hit by separate attacks. The portfolio’s holdings in security software stocks , NortonLifelock and McAfee all outperformed the benchmark and contributed to returns for the quarter. NortonLifelock gained over the quarter, lifted by the announcement of record quarterly revenue and earnings per share, along with a $1.5 billion share repurchase program. In addition, guidance for the current quarter implied healthy year-on-year growth in sales and profit. Solid results also helped Dropbox to outperform, notably a fourfold jump in free cashflow (FCF) from a year earlier. An increase in the company’s projected ranges for annual revenue and FCF was a further tailwind. ▪ Marvell contributed to returns after reporting strong results as well as the completion of their acquisition of Inphi. Marvell continues to see strong demand across its networking business, particularly its 5G product suite for large customers Samsung and Nokia. Automotive ethernet solutions are being deployed in a number of 2021 models. The company is also experiencing high levels of demand in their storage division from cloud and data centers for the company’s SSD and HDD controllers. While the supply

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environment remains tight, management expressed confidence in having secured Columbia Seligman enough supply to drive future growth. Technology and Information Fund ▪ A relative underweight in semiconductor bellwether contributed to relative returns. Top five contributors - Effect on Intel reported a solid quarter that beat estimates. However, forward guidance was less return (%) as of June 30, 2021 than expected and concerns about capital expenditure commitments pressuring margins in an increasingly competitive environment caused the stock to underperform. While Lam Research 0.79 new management has prioritized improved execution, investors saw the turnaround as taking longer than originally expected. Similarly, the portfolio’s relative underweight to Alphabet-Cl A 0.61 Amazon, which underperformed and comprises an 8% weighting in the benchmark Alphabet-Cl C 0.59 index, contributed to relative returns. ▪ A relative underweight to the interactive media and services, and the electronic Apple 0.55 equipment instruments and components industries detracted modestly from relative Marvell Technology 0.55 returns during the quarter. No exposure to graphics chip company nor detracted from relative returns, as both stocks outperformed the market. Top five detractors - Effect on NVIDIA outperformed after reporting earnings and forward guidance that significantly return (%) as of June 30, 2021 beat expectations driven by strength across gaming, data center and cryptocurrency mining. Facebook also delivered solid results driven by strength in advertising and e- F5 Netw orks -0.13 commerce. Investors were enthused about plans to build out new creative and monetization tools to support user-generated content as well as an increase in the rate Lumentum Holdings -0.13 of their share repurchase program during the quarter.

Fiserv -0.11 ▪ A holding in F5 Networks, whose network infrastructure products ensure that data center services are highly available, secure and fast, detracted from performance during -0.10 the quarter after reporting earnings. While the company’s results were solid overall, with broad-based strength across F5’s systems portfolio driven by orders to address data Intel -0.10 center capacity needs and rising security demands, the highly touted software portfolio grew at an underwhelming rate. Management attributed this slower-than-expected growth to difficult comparisons when software grew at close to a 100% rate. ▪ A holding in memory company Micron detracted from relative returns for the quarter despite seeing shortages across all end markets, with demand continuing to outpace supply. Attractive margins are being delivered given the favorable pricing environment and are expected to continue to improve, as NAND pricing stabilizes and dynamic random-access memory (DRAM) pricing is revised up in certain markets. The stock has come down on investor concerns that demand is peaking, while pricing could weaken. At present, there is no indication that price is weakening, as overall demand is still greater than what the company can supply in the near term.

Outlook As we go to print in mid-July, the broad U.S. equity indices have gradually risen to new all- time highs. However, the breadth of the market has diminished significantly. Within the S&P 500 Index, fewer than 60% of stocks are trading above their 50-day moving average, a bearish sign. Within the , only 2% of stocks have been hitting new highs, compared with 16% in January. The largest mega caps leading the charge have been Amazon, Apple, Alphabet and Microsoft. At the same time, as market breadth has narrowed, share issuance in the past month has set records, as a surge of biotech and technology companies have gone public or sold shares in secondary offerings. We are skeptical about inflation being a flash in the pan, especially in light of large price increases in oil, natural gas, food, metals, the CPI and electronics prices. (It’s hard to

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remember a time when there was inflation in semiconductors, except for memory.) We expect inflation to push interest rates higher, which, in turn, should have a negative impact on highly valued, long-duration equity prices — the types of companies that the portfolio avoids. We haven’t made a significant number of changes to the portfolio’s holdings. Our top holdings continue to include leading semiconductor equipment companies (Lam Research, Applied Materials, Teradyne, Advanced Energy Industries), semiconductor device, software and intellectual property companies (Broadcom, , Marvell Technology, Synaptics, Rambus, Snyopsys, Xperi, Micron Technology and NXP Semiconductor), mega-cap tech leaders (Apple, Alphabet, Microsoft), well-run system companies (, F-5 Networks, Smart Global Holdings, NetApp, Hewlett Packard, Poly, Dell and ), undervalued media properties (Fox and Discovery), and highly profitable software companies (Dropbox, Fortinet, , Lifelock, Cerence and Oracle). With the June and July quarterly earnings season around the corner, we are optimistic about the outlook for our key holdings. The global economy continues its rapid growth, and demand for electronics remains elevated with seemingly intractable shortages of electronic components. As a result, channel inventory of semiconductor components is at historically low levels, and chip companies have unusually good visibility. For example, Analog Devices typically maintains eight weeks of inventory with its distributors, but current levels are at only four weeks. Broadcom has a year’s worth of visibility and has stuck to its policy of “take or pay” for cancellations. With shortages of components spanning CPUs, display drivers, analog parts and memory, the global electronics industry is spending aggressively on new plant and equipment to solve the supply situation. Demand for electronics appears strong across the board, including consumer electronics like game consoles, cryptocurrency mining systems, servers for cloud data centers, PCs, 5-G wireless infrastructure gear, high-speed networking gear for campuses and data centers, and electric vehicles. As a result, we expect upside to quarterly earnings for a broad swath of our holdings. In the past few weeks, Micron Technology and Smart Global Holdings both reported significantly better-than-expected results and guidance. With a return to work focus prompting increases in office IT spending, we think our companies are well positioned for the coming earnings deluge. Effective June 9, 2021, Columbia Seligman Communications and Information Fund was renamed the Columbia Seligman Technology and Information Fund to better represent the universe in which the fund invests. There is no change to the portfolio management team, investment process, investment philosophy or .

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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, Commentaries now visit columbiathreadneedle.com. Read the prospectus carefully before investing. available via email Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Stay informed about your Threadneedle group of companies. investments by subscribing to Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC. receive commentaries and other The views expressed are as of the date given, may change as market or other conditions change, and may differ from fund updates by email. Simply views expressed by other Columbia Management Investment Advisers, LLC (CMIA) associates or affiliates. Actual register with our subscription investments or investment decisions made by CMIA and its affiliates, whether for its own account or on behalf of clients, center and choose the publications 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 you’d like to receive. We’ll take investor's specific financial needs, objectives, goals, time horizon, and risk tolerance. Asset classes described may not be care of the rest. appropriate for all investors. . Past performance does not guarantee future results and no forecast should be considered a guarantee either. Subscribe Since economic and market conditions change frequently, there can be no assurance that the trends described here will continue or that the forecasts are accurate. Additional performance information: All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 1The returns shown for periods prior to the share class inception date (including returns since inception, 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 columbiathreadneedleus.com/ investor/investment-products/mutual-funds/appended-performance for more information. Investment Risks © 2021 Morningstar, Inc. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content Market risk may affect a single issuer, providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither sector of the economy, industry or the Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. market as a whole. The products of For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM used to rank the technology companies may be subject fund against other funds in the same category. It is calculated based on a Morningstar Risk-Adjusted Return to severe competition and rapid measure that accounts for variation in a fund's monthly excess performance, without any adjustments for loads obsolescence, and technology (front-end, deferred, or redemption fees), placing more emphasis on downward variations and rewarding stocks may be subject to greater consistent performance. Exchange-traded funds and open-ended mutual funds are considered a single population for price fluctuations. Foreign comparative purposes. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next investments subject the fund to risks, 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 including political, economic, market, fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution social and others within a particular percentages). The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures country, as well as to currency associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. instabilities and less stringent financial 2The fund’s expense ratio is from the most recent prospectus. and accounting standards generally applicable to U.S. issuers. As a non- The Standard and Poor’s (S&P) North American Technology Sector Index is a modified-capitalization-weighted index diversified fund, fewer investments of technology-related stocks. could have a greater effect on The Russell 1000 Index tracks the performance of 1,000 of the largest U.S. companies, based on market capitalization. performance. The Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to- book ratios and lower forecasted growth values. The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index is a small-cap of the smallest 2,000 stocks in the 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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