497 1 c60463ce497.htm 497 e497
 
Supplement dated Sept. 27, 2010 to each prospectus listed below, each as supplemented
 
                           
Legacy RiverSource Fund:     Formerly known as:     Prospectus(es) Dated  
Columbia 120/20 Contrarian Equity Fund
    RiverSource 120/20 Contrarian Equity Fund       June 29, 2010         Sept. 27, 2010  
                           
Columbia Asia Pacific ex-Japan Fund
    Threadneedle Asia Pacific Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Diversified Bond Fund
    RiverSource Diversified Bond Fund       Oct. 30, 2009         Sept. 27, 2010  
                           
Columbia Diversified Equity Income Fund
    RiverSource Diversified Equity Income Fund       Nov. 27, 2009         Sept. 27, 2010  
                           
Columbia Dividend Opportunity Fund
    RiverSource Dividend Opportunity Fund       Aug. 27, 2010         Sept. 27, 2010  
                           
Columbia Emerging Markets Bond Fund
    RiverSource Emerging Markets Bond Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Emerging Markets Opportunity Fund
    Threadneedle Emerging Markets Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Equity Value Fund
    RiverSource Equity Value Fund       May 28, 2010         Sept. 27, 2010  
                           
Columbia European Equity Fund
    Threadneedle European Equity Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Floating Rate Fund
    RiverSource Floating Rate Fund       Sept. 27, 2010            
                           
Columbia Frontier Fund, Inc. 
    Seligman Frontier Fund, Inc.       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Global Bond Fund
    RiverSource Global Bond Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Global Equity Fund
    Threadneedle Global Equity Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Global Extended Alpha Fund
    Threadneedle Global Extended Alpha Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia High Yield Bond Fund
    RiverSource High Yield Bond Fund       July 30, 2010         Sept. 27, 2010  
                           
Columbia Income Opportunities Fund
    RiverSource Income Opportunities Fund       Sept. 27, 2010            
                           
Columbia Large Core Quantitative Fund
    RiverSource Disciplined Equity Fund       Sept. 27, 2010            
                           
Columbia Large Growth Quantitative Fund
    RiverSource Disciplined Large Cap Growth Fund       Nov. 27, 2009         Sept. 27, 2010  
                           
Columbia Large Value Quantitative Fund
    RiverSource Disciplined Large Cap Value Fund       Nov. 27, 2009         Sept. 27, 2010  
                           
Columbia Limited Duration Credit Fund
    RiverSource Limited Duration Bond Fund       Sept. 27, 2010            
                           
Columbia Mid Cap Growth Opportunity Fund
    RiverSource Mid Cap Growth Fund       Jan. 22, 2010         Sept. 27, 2010  
                           
Columbia Mid Cap Value Opportunity Fund
    RiverSource Mid Cap Value Fund       Nov. 27, 2009         Sept. 27, 2010  
                           
Columbia Minnesota Tax-Exempt Fund
    RiverSource Minnesota Tax-Exempt Fund       Oct. 30, 2009         Sept. 27, 2010  
                           
Columbia Multi-Advisor International Value Fund
    RiverSource Partners International Select Value Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Multi-Advisor Small Cap Value Fund
    RiverSource Partners Small Cap Value Fund       July 30, 2010         Sept. 27, 2010  
                           
Columbia Recovery and Infrastructure Fund
    RiverSource Recovery and Infrastructure Fund       June 29, 2010         Sept. 27, 2010  
                           
Columbia Select Large-Cap Value Fund
    Seligman Large-Cap Value Fund       March 1, 2010         Sept. 27, 2010  
                           
Columbia Select Smaller-Cap Value Fund
    Seligman Smaller-Cap Value Fund       March 1, 2010         Sept. 27, 2010  
                           
Columbia Seligman Communications and Information Fund, Inc.      Seligman Communications and Information Fund, Inc.       March 1, 2010         Sept. 27, 2010  
                           
Columbia Seligman Global Technology Fund
    Seligman Global Technology Fund       Dec. 30, 2009         Sept. 27, 2010  
                           
Columbia Strategic Allocation Fund
    RiverSource Strategic Allocation Fund       Nov. 27, 2009         Sept. 27, 2010  
                           
Columbia U.S. Government Mortgage Fund
    RiverSource U.S. Government Mortgage Fund       July 30, 2010         Sept. 27, 2010  
                           
 
The legacy Columbia Funds and legacy RiverSource Funds (each a Fund), for which Columbia Management Investment Advisers, LLC (CMIA) serves as investment manager and sponsor, include various legacy groups of Funds organized at different times by different organizations. As a result, various features of the Funds, including their fees and expenses do not currently reflect a common overall design.
 
In September 2010, in connection with various initiatives to integrate the Funds into a single Fund family with greater uniformity, the Boards of Directors/Trustees (each a Board) of the Funds each approved amended investment management services agreements (IMSAs) and administrative services agreements with CMIA. These agreements reflect standardized fee schedules for similar Funds, based on a consistent pricing model. Additionally, as part of achieving a consistent, standardized fee schedule, CMIA proposed, and the Board approved, eliminating the performance incentive adjustments (PIA) contained in current IMSAs for certain legacy RiverSource Funds (which are not applicable to most funds in the combined fund family) that may increase or decrease the Fund’s fees payable
 
S-6400-14 A (9/10)

 

under its IMSA based upon the Fund’s performance measured against its reference performance index. The Boards also approved amended transfer agency agreements with a uniform fee schedule. In connection with the Boards’ approval of various proposals to achieve a consistent pricing model, the Boards and CMIA agreed to (and, in the case of RiverSource Funds, maintain) an annual process by which contractual expense limitations for Funds with annual operating expenses that exceed the median expense ratios of their respective peer groups (as determined annually by an independent third-party data provider) are set at or below such median expense ratio. These commitments may help mitigate the impact of any fee changes resulting from the adoption of standardized fee schedules. The estimated proposed expense caps shown in the following table reflect peer group median expense ratios as of early 2010, which are likely to change year over year.
 
While these changes are expected to reduce the overall fees and expenses of the Funds in the aggregate, certain individual Funds are expected to realize an increase in fees under their proposed IMSA and/or total annual operating expenses. Any proposed amended IMSA that would eliminate a PIA, or that could result in higher IMSA fees (each an IMSA Proposal), is subject to approval by Fund shareholders at a meeting expected to be held in the first half of 2011. More information about each IMSA Proposal will be included in proxy materials that are currently anticipated to be distributed to shareholders in early 2011.
 
If approved by Fund shareholders, the IMSA Proposals, as well as IMSAs not subject to Fund shareholder approval and new administrative services agreements, are expected to be effective in the second quarter of 2011. For Funds with a PIA that, as of September 2010, have performance measured against their reference performance index over their most recent applicable rolling performance fee calculation period that results in CMIA incurring negative PIA, CMIA has agreed to a transitional period of 6 months (18 months for Funds with a 36 month rolling performance fee calculation period), during which time these Funds will compensate CMIA at the lower of (i) the fee calculated under the proposed IMSA or (ii) the fee calculated under the current IMSA (including any applicable negative PIA), regardless of whether the IMSA Proposal (including the elimination of the PIA) is ultimately approved by Fund shareholders.
 
The information in the chart below shows the estimated impact of the changes discussed above on each Fund’s Class A shares based on the Fund’s net assets as of July 31, 2010, and, for legacy RiverSource Funds, does not include the impact of any applicable PIA. Expenses for other share classes will differ to the extent of differences in transfer agency and/or distribution and service fees, and actual fees and expenses will vary based upon the size of the Fund and other factors, and may be higher or lower than the estimates shown below.
 
                               
              Total Estimated Gross
 		      Total Estimated Net
 		 
              Operating Expenses
 		      Operating Expenses
 		 
      Management
 		      Before Giving Effect to
 		      After Giving Effect to
 		 
 Legacy RiverSource Fund     Fees(1)       Expense Caps(2)       Expense Caps(3)  
Columbia 120/20 Contrarian Equity Fund (formerly known as RiverSource 120/20 Contrarian Equity Fund) (4)
                             
                               
Current
      1.03 %       1.72 %       1.50 %
                               
Proposed
      1.03 %       1.72 %       1.50 %
                               
Columbia Asia Pacific ex-Japan Fund (formerly known as Threadneedle Asia Pacific Fund) (4)
                             
                               
Current
      0.87 %       1.66 %       1.15 %
                               
Proposed
      0.87 %       1.66 %       1.15 %
                               
Columbia Diversified Bond Fund (formerly known as RiverSource Diversified Bond Fund) (4)
                             
                               
Current
      0.49 %       0.92 %       0.85 %
                               
Proposed
      0.47 %       0.90 %       0.84 %
                               
Columbia Diversified Equity Income Fund (formerly known as RiverSource Diversified Equity Income Fund) (4)
                             
                               
Current
      0.61 %       1.13 %       1.13 %
                               
Proposed
      0.60 %       1.12 %       1.12 %
                               
Columbia Dividend Opportunity Fund (formerly known as RiverSource Dividend Opportunity Fund) (4)
                             
                               
Current
      0.65 %       1.12 %       1.12 %
                               
Proposed
      0.69 %       1.16 %       1.14 %
                               
 

 

                               
              Total Estimated Gross
 		      Total Estimated Net
 		 
              Operating Expenses
 		      Operating Expenses
 		 
      Management
 		      Before Giving Effect to
 		      After Giving Effect to
 		 
 Legacy RiverSource Fund     Fees(1)       Expense Caps(2)       Expense Caps(3)  
Columbia Emerging Markets Bond Fund (formerly known as RiverSource Emerging Markets Bond Fund)
                             
                               
Current
      0.79 %       1.36 %       1.28 %
                               
Proposed
      0.60 %       1.17 %       1.17 %
                               
Columbia Emerging Markets Opportunity Fund (formerly known as Threadneedle Emerging Markets Fund) (4)
                             
                               
Current
      1.16 %       1.90 %       1.90 %
                               
Proposed
      1.16 %       1.90 %       1.85 %
                               
Columbia Equity Value Fund (formerly known as RiverSource Equity Value Fund) (4)
                             
                               
Current
      0.58 %       1.10 %       1.10 %
                               
Proposed
      0.71 %       1.23 %       1.11 %
                               
Columbia European Equity Fund (formerly known as Threadneedle European Equity Fund) (4)
                             
                               
Current
      0.88 %       1.77 %       1.43 %
                               
Proposed
      0.88 %       1.77 %       1.53 %
                               
Columbia Floating Rate Fund (formerly known as RiverSource Floating Rate Fund)
                             
                               
Current
      0.68 %       1.13 %       1.08 %
                               
Proposed
      0.66 %       1.11 %       1.08 %
                               
Columbia Frontier Fund, Inc. (formerly known as Seligman Frontier Fund, Inc.)
                             
                               
Current
      0.97 %       2.30 %       1.51 %
                               
Proposed
      0.87 %       2.30 %       1.47 %
                               
Columbia Global Bond Fund (formerly known as RiverSource Global Bond Fund)
                             
                               
Current
      0.79 %       1.36 %       1.21 %
                               
Proposed
      0.65 %       1.22 %       1.21 %
                               
Columbia Global Equity Fund (formerly known as Threadneedle Global Equity Fund) (4)
                             
                               
Current
      0.87 %       1.55 %       1.55 %
                               
Proposed
      0.87 %       1.55 %       1.36 %
                               
Columbia Global Extended Alpha Fund (formerly known as Threadneedle Global Extended Alpha Fund) (4)
                             
                               
Current
      1.13 %       3.78 %       1.55 %
                               
Proposed
      1.13 %       3.78 %       1.55 %
                               
Columbia High Yield Bond Fund (formerly known as RiverSource High Yield Bond Fund)
                             
                               
Current
      0.64 %       1.08 %       1.07 %
                               
Proposed
      0.63 %       1.07 %       1.07 %
                               
Columbia Income Opportunities Fund (formerly known as RiverSource Income Opportunities Fund)
                             
                               
Current
      0.68 %       1.19 %       1.14 %
                               
Proposed
      0.65 %       1.16 %       1.15 %
                               
Columbia Large Core Quantitative Fund (formerly known as RiverSource Disciplined Equity Fund) (4)
                             
                               
Current
      0.62 %       1.05 %       1.02 %
                               
Proposed
      0.64 %       1.07 %       1.07 %
                               
Columbia Large Growth Quantitative Fund (formerly known as RiverSource Disciplined Large Cap Growth Fund) (4)
                             
                               
Current
      0.66 %       1.22 %       1.20 %
                               
Proposed
      0.74 %       1.30 %       1.27 %
                               
 

 

                               
              Total Estimated Gross
 		      Total Estimated Net
 		 
              Operating Expenses
 		      Operating Expenses
 		 
      Management
 		      Before Giving Effect to
 		      After Giving Effect to
 		 
 Legacy RiverSource Fund     Fees(1)       Expense Caps(2)       Expense Caps(3)  
Columbia Large Value Quantitative Fund (formerly known as RiverSource Disciplined Large Cap Value Fund) (4)
                             
                               
Current
      0.66 %       1.37 %       1.28 %
                               
Proposed
      0.75 %       1.46 %       1.28 %
                               
Columbia Limited Duration Credit Fund (formerly known as RiverSource Limited Duration Bond Fund)
                             
                               
Current
      0.55 %       1.06 %       0.85 %
                               
Proposed
      0.43 %       0.94 %       0.86 %
                               
Columbia Mid Cap Growth Opportunity Fund (formerly known as RiverSource Mid Cap Growth Fund) (4)
                             
                               
Current
      0.76 %       1.32 %       1.28 %
                               
Proposed
      0.80 %       1.36 %       1.28 %
                               
Columbia Mid Cap Value Opportunity Fund (formerly known as RiverSource Mid Cap Value Fund) (4)
                             
                               
Current
      0.73 %       1.30 %       1.26 %
                               
Proposed
      0.73 %       1.30 %       1.26 %
                               
Columbia Minnesota Tax-Exempt Fund (formerly known as RiverSource Minnesota Tax Exempt Fund) (4)
                             
                               
Current
      0.47 %       0.87 %       0.79 %
                               
Proposed
      0.47 %       0.87 %       0.79 %
                               
Columbia Multi-Advisor International Value Fund (formerly known as RiverSource Partners International Select Value Fund) (4)
                             
                               
Current
      0.96 %       1.67 %       1.67 %
                               
Proposed
      0.96 %       1.67 %       1.65 %
                               
Columbia Multi-Advisor Small Cap Value Fund (formerly known as RiverSource Partners Small Cap Value Fund) (4)
                             
                               
Current
      1.04 %       1.70 %       1.50 %
                               
Proposed
      1.04 %       1.70 %       1.50 %
                               
Columbia Recovery and Infrastructure Fund (formerly known as RiverSource Recovery and Infrastructure Fund) (4)
                             
                               
Current
      0.71 %       1.17 %       1.17 %
                               
Proposed
      0.71 %       1.17 %       1.17 %
                               
Columbia Select Large-Cap Value Fund (formerly known as Seligman Large-Cap Value Fund)
                             
                               
Current
      0.82 %       1.40 %       1.40 %
                               
Proposed
      0.77 %       1.35 %       1.26 %
                               
Columbia Select Smaller-Cap Value Fund (formerly known as Seligman Smaller-Cap Value Fund)
                             
                               
Current
      1.02 %       1.83 %       1.33 %
                               
Proposed
      0.87 %       1.68 %       1.45 %
                               
Columbia Seligman Communications and Information Fund, Inc. (formerly known as Seligman Communication & Information Fund Inc.)
                             
                               
Current
      0.90 %       1.37 %       1.37 %
                               
Proposed
      0.90 %       1.37 %       1.37 %
                               
Columbia Seligman Global Technology Fund (formerly known as Seligman Global Technology Fund)
                             
                               
Current
      1.03 %       1.69 %       1.57 %
                               
Proposed
      0.92 %       1.69 %       1.69 %
                               
 

 

                               
              Total Estimated Gross
 		      Total Estimated Net
 		 
              Operating Expenses
 		      Operating Expenses
 		 
      Management
 		      Before Giving Effect to
 		      After Giving Effect to
 		 
 Legacy RiverSource Fund     Fees(1)       Expense Caps(2)       Expense Caps(3)  
Columbia Strategic Allocation Fund (formerly known as RiverSource Strategic Allocation Fund) (4)
                             
                               
Current
      0.65 %       1.15 %       1.15 %
                               
Proposed
      0.69 %       1.19 %       1.19 %
                               
Columbia U.S. Government Mortgage Fund (formerly known as RiverSource US Government Mortgage Fund) (4)
                             
                               
Current
      0.55 %       1.09 %       0.89 %
                               
Proposed
      0.50 %       1.04 %       0.89 %
                               
 
(1) Current management fees shown represent the aggregate fees payable under the current IMSA (without giving effect to any PIA) and administrative services agreement. Proposed management fees shown represent the aggregate fees payable under the proposed IMSA and administrative services agreement.
 
(2) Expenses shown reflect the gross fees payable under (i) the current IMSA (without giving effect to any PIA) and administrative services agreement, and (ii) the proposed IMSA and administrative services agreement, in each case based on assets as of July 31, 2010, plus other expenses for the Fund’s most recent fiscal year (restated, where applicable, to reflect any material contractual changes).
 
(3) Expenses shown reflect the fees payable net of any voluntary or contractual expense caps, as applicable.
 
(4) The proposed change to the management fee reflects an IMSA Proposal.