UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-5857
Columbia Funds Institutional Trust
(Exact name of registrant as specified in charter)
One Financial Center, Boston, Massachusetts					02111
(Address of principal executive offices)					(Zip code)
James R. Bordewick, Jr., Esq. Columbia Management Advisors, LLC One Financial Center Boston, MA 02111
(Name and address of agent for service)
Registrant’s telephone number, including area code:				1-617-426-3750
Date of fiscal year end:	July 31, 2008
Date of reporting period:		July 31, 2008

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

CMG CORE BOND FUND
CMG SHORT TERM BOND FUND
CMG ULTRA SHORT TERM BOND FUND
CMG HIGH YIELD FUND
PORTFOLIOS OF COLUMBIA FUNDS INSTITUTIONAL TRUST

Annual Report
July 31, 2008

NOT FDIC INSURED

May Lose Value

No Bank Guarantee

NOT BANK ISSUED

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. The funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Columbia Management Advisors, LLC ("CMA") is an SEC-registered investment advisor and an indirect, wholly owned subsidiary of Bank of America Corporation and is part of Columbia Management.

Table of Contents

Management Discussion of Fund Performance
CMG Core Bond Fund	1
CMG Short Term Bond Fund	5
CMG Ultra Short Term Bond Fund	9
CMG High Yield Fund	13
Financial Statements
Financial Highlights	17
Schedules of Investments	21
Statements of Assets and Liabilities	64
Statements of Operations	65
Statements of Changes in Net Assets	66
Notes to Financial Statements	68
Report of Independent Registered Public Accounting Firm	81
Fund Governance	82

The views expressed in this report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a CMG Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular CMG Fund. References to specific securities should not be construed as a recommendation or investment advice.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the twelve-month period that ended July 31, 2008, the CMG Core Bond Fund returned 3.84%. The fund's return was lower than the return of its benchmark, the Lehman Brothers U.S. Aggregate Bond Index,¹ which returned 6.15%. However, it was higher than the average return of its peer group, the Lipper Corporate Debt Funds A Rated Classification, which was 1.74% over the same period.² During the period, funds with lower risk profiles generally tended to be better performers relative to funds with higher risk profiles.

The past twelve months were challenging for the fixed-income markets. As the period began, delinquency rates had already begun to spike for certain classes of lower-quality mortgages. Then, as the economy grew weaker, investors began to question the creditworthiness of virtually all forms of asset-backed securities and structured investments. As investors recoiled from risk, they flocked to the Treasury markets, and, in turn, liquidity dried up throughout the structured investment arena, creating a day-to-day management challenge that persisted through June before moderating somewhat in the final month of the period. Against this risk-averse backdrop, Treasury securities were, by far, the best-performing asset class within the fixed-income markets.

Unfortunately, the fund entered the period with overweight positions in many of the market sectors that would be the hardest hit in the environment that followed, including mortgage-backed securities and long-term corporate bonds. In addition, the fund's holdings included a substantial commitment to homebuilders and financial companies, both of which underperformed the rest of the market. The fund's commercial mortgage-backed securities included holdings that were lower down in their issuers' capital structure. Although our ownership of these riskier assets had boosted portfolio performance in previous periods, the reverse was true during this reporting period. As a result, we devoted much of our attention to reducing the fund's risk exposure, first in corporate obligations and then in mortgage credit holdings, to fit the changed environment, an especially difficult undertaking in an illiquid market.

However, it is important to note that these challenges were faced by most of the fund's peer group. Yet, the fund outperformed its peer group average largely because of two specific decisions made during the period: 1) to keep the average maturity of the fund longer than the

¹ The Lehman Brothers U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment-grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

1

index, a strategy that was a good fit for a weakening economy and paid off throughout the first half of 2008; and 2) to position the bonds in the portfolio to achieve our desired positioning across the yield curve versus the benchmark and the peer group, thereby benefiting performance each time the Federal Reserve Board ("the Fed") lowered short-term interest rates, which it did on seven occasions during the period.

Looking forward, we believe the Fed will continue to walk a fine line on interest rate policy as it seeks to combat inflation without triggering an outright recession. While we believe that economic concerns should keep a lid on rates in the near term, the current structure of the portfolio does not reflect any meaningful bet on the direction of interest rates or the economy. What the portfolio does reflect is a year-long effort to restructure holdings into those subsectors of the traditional fixed-income asset classes in which we have the greatest confidence.

We appreciate your continued confidence in the CMG Core Bond Fund.

Portfolio Management

Alexander D. Powers has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since 1996.

Jonathan P. Carlson has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since June 2007.

Michael Zazzarino has co-managed the fund since December 2007 and has been with the advisor or its predecessors or affiliate organizations since March 2005.

Carl W. Pappo has co-managed the fund since March 2008 and has been with the advisor or its predecessors or affiliate organizations since January 1993.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Federal National Mortgage Association, 5.500% 07/01/2038*		9.9
Federal National Mortgage Association, 6.000% 05/01/2038*		5.3
Federal National Mortgage Association, 5.000% 06/01/2038*		5.3
U.S Treasury Notes, 3.875% 05/15/2018		4.1
Federal National Mortgage Association, 6.500% 01/01/2038*		3.7
U.S Treasury Notes, 3.375% 06/30/2013		3.7
Federal National Mortgage Association, 5.000% 04/01/2038*		3.0
U.S Treasury Bonds, 5.000% 05/15/2037		2.3
Federal National Mortgage Association, 5.500% 09/01/2037*		1.8
Chase Mortgage Finance Corp., 6.000% 03/25/2037		1.5
* Mortgage-backed securities

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yield and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices generally drop, and vice versa.

2

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		Life
CMG Core Bond Fund		09/01/00		3.84		3.99		5.25
Lehman Brothers U.S. Aggregate Bond Index				6.15		4.55		5.89

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		Life
CMG Core Bond Fund		09/01/00		4.99		3.45		5.39
Lehman Brothers U.S. Aggregate Bond Index				7.12		3.86		5.97

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.38%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.

Growth of a $3,000,000 investment, September 1, 2000 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Lehman Brothers U.S. Aggregate Bond Index is a market value-weighted index that tracks the daily price, coupon, pay-downs, and total return performance of fixed-rate, publicly placed, dollar-denominated, and non-convertible investment-grade debt issues with at least $250 million par amount outstanding and with at least one year to final maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

Index performance is from September 1, 2000.

3

UNDERSTANDING YOUR EXPENSES – CMG Core Bond Fund

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

983.89

1,023.62

1.23

1.26

0.25

Expenses paid during the period are equal to the annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

4

Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the twelve-month period that ended July 31, 2008, CMG Short Term Bond Fund returned 4.60%. The fund underperformed its benchmark, the Merrill Lynch 1-3 Year U.S. Treasury Index,¹ which returned 6.76% during the period. The fund's benchmark is composed of Treasury securities and does not have exposure to many of the other bond sectors included in the fund. These other sectors underperformed Treasuries due to a "flight to quality." Investors bid up the price of Treasury securities while ignoring higher yielding investment grade bonds. By contrast, the fund outperformed the average return of its peer group, the Lipper Short Investment Grade Debt Funds Classification, which was only 0.26%.²

The period was characterized by severe investor reaction to a series of well-publicized difficulties in the mortgage and housing markets. Extensive writedowns by brokerages and other financial companies created a market environment in which trading slowed to a standstill for anything but government bonds. Corporate bonds, asset-backed securities and mortgage-backed securities were left behind in this flight to quality and underperformed comparable Treasury securities by several percentage points.

During the reporting period, the Federal Reserve Board ("the Fed") acted on seven different occasions to help stimulate the sagging economy by lowering the federal funds rate, a closely watched overnight lending rate to banks. Altogether the fed funds rate was pushed 3.25 percentage points lower, finishing the period at just 2.00%. The portfolio was well-positioned to benefit from the trend to lower rates, as it maintained a longer-than-average maturity profile for most of the period. In particular, we maintained a bulleted portfolio structure that emphasized securities with maturities of two years. This strategy paid off as yields on two-year Treasury securities declined by over two percentage points, well above the 1.33 percentage point decline in the five-year area. Yields and bond prices move in opposite directions.

The Fed has signaled that it may not lower short-term rates further as inflation risks have risen. However, the risks of higher rates to a struggling economy are well understood, and there are more than enough worrisome economic headlines to lead us to believe that the Fed is not likely to raise short-term interest rates during the next few months. Overall, we have

¹ The Merrill Lynch 1-3 Year U.S. Treasury Index tracks the performance of sovereign debt publicly issued in the US domestic market with maturities of 1-3 years and a minimum amount outstanding of $1 billion. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

5

maintained a maturity profile that is neutral to the fund's benchmark, meaning that we have not made any significant bet on the future direction of interest rates.

While corporate bonds as a group underperformed the Treasury market, the fund was aided by its emphasis on sectors such as energy, utilities, capital goods and consumer non-cyclicals, all of which outperformed the broader corporate market. In particular, the fund was aided relative to its peer group by maintaining a high-quality orientation and by avoiding many of the specific problem areas that plagued the bond market during the period.

Although the past twelve months were a difficult period throughout the fixed-income markets, we remain committed to our strategy of emphasizing non-Treasury markets, a strategy that has proved itself over several market cycles. Today, yields on corporate bonds and securitized investments are at historically high levels versus Treasury securities of comparable maturities. When markets stabilize and relative yields return to more normal levels, we believe that the fund's strategy has the potential to provide excess returns relative to its benchmark and peer group.

We appreciate your continued confidence in CMG Short Term Bond Fund.

Portfolio Management

Leonard A. Aplet has co-managed the fund since February 1998 and has been with the advisor or its predecessors or affiliate organizations since 1987.

Ronald Stahl has co-managed the fund since November 2006 and has been with the advisor or its predecessors or affiliate organizations since 1998.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Federal Home Loan Mortgage Corp, 5.500% 11/15/2028		2.8
AmeriCredit Automobile Receivables Trust, 5.420% 05/07/2012		1.9
USAA Auto Owner Trust, 4.890% 8/15/2012		1.8
Federal Home Loan Bank, 5.250% 06/11/2010		1.7
Bear Stearns Commercial Mortgage Securities, Inc., 3.869% 02/11/2041		1.7
Nissan Auto Receivables Owner Trust, 5.220% 11/15/2011		1.6
Federal Home Loan Mortgage Corp., 5.500% 08/01/2023		1.6
Federal Home Loan Mortgage Corp, 5.500% 5/15/2034		1.6
Capital One Auto Finance Trust, 5.030% 4/15/2012		1.4
U.S. Treasury Notes, 3.875% 10/31/2012		1.4

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yield and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa.

6

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		10-year
CMG Short Term Bond Fund		02/02/98		4.60		3.63		4.78
Merrill Lynch 1-3 Year U.S. Treasury Index				6.76		3.48		4.65

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		10-year
CMG Short Term Bond Fund		02/02/98		5.15		3.36		4.82
Merrill Lynch 1-3 Year U.S. Treasury Index				7.30		3.29		4.66

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributionsand do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.32%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.

Growth of a $3,000,000 investment, August 1, 1998 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Merrill Lynch 1-3 Year U.S. Treasury Index tracks the performance of sovereign debt publicly issued in the U.S. domestic market with maturities of 1-3 years and a minimum amount outstanding of $1 billion. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

7

UNDERSTANDING YOUR EXPENSES – CMG Short Term Bond Fund

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

1,002.29

1,023.62

1.24

1.26

0.25

Expenses paid during the period are equal to the annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

8

Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the twelve-month period that ended July 31, 2008, CMG Ultra Short Term Bond Fund returned 1.42%. The fund underperformed its benchmark, the Citigroup One-Year U.S. Treasury Bill Index, which returned 5.24%.¹ The fund outperformed the negative 1.97% average return of its peer group, the Lipper Ultra-Short Obligations Funds Classification.² Because the fund holds positions in corporate bonds, as well as mortgage-backed and asset-backed securities, it could not compete effectively versus its all-Treasury one-year benchmark as Treasuries outperformed all other fixed-income sectors during the period. However, the fund's emphasis on securities backed by credit card debt and auto loans, and specifically its corresponding de-emphasis on mortgage-backed securities, enabled it to outperform its peer group.

The past twelve months were a challenging period for the fixed-income marketplace. Well-publicized difficulties in the mortgage and housing markets caused investors to become skeptical of virtually any security not backed by the U.S. government. As a result, all but the highest quality market sectors experienced an unprecedented loss of liquidity. The flight to quality caused Treasury yields to decline to unusually low levels—and prices to rise—relative to other short-term instruments.

The fixed income market experienced significant illiquidity during the past twelve months which in turn impacted the underlying market values of all securities except those which the market considers risk free: U.S. Treasuries. The fund tried to minimize some of the volatility and impact of price fluctuations by increasing exposure to the U.S. Government sector during the period, even though the yield level for those securities may not have been as high. Liquidity was in demand and, as a result, the percentage of the fund dedicated to these assets was not always attractive. The percentage of the fund dedicated to these ultra safe sectors of the market rose from 4.6% of net assets at the end of 2007 to 10% of net assets by the end of the period. We also sought to change the composition of the fund's corporate holdings, trading out of the financials sector whenever possible and into high-quality industrial companies with what we believe to be good business prospects.

Short-term yields declined throughout the period, the result of an extended effort by the Federal Reserve Board to aid the economy by lowering the overnight lending rate. And there

¹ The Citigroup One-Year U.S. Treasury Bill Index consists of a single 1-year U.S. Treasury Bill whose return is tracked until its maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with similar investment objectives as those of the fund. Lipper makes no adjustments for the effect of sales loads.

9

was little difference in yields between short- and longer-term securities (within the fund's short-term parameters), which means that investors, for most of the period, were not being compensated for taking on the additional risk of owning securities with longer maturities. Against this backdrop, we kept the fund's maturity profile relatively short. However, in the first quarter of 2008, we began to purchase selected longer maturities when a slight rise in relative yields made it more attractive to own six-month securities rather than one-month securities.

We plan to continue to extend the fund's exposure to longer-term maturities within the short-term range and to improve the fund's credit quality in the year ahead. However, market conditions remain difficult, and the experiences of the past twelve months suggest that maintaining liquidity will continue to be one of the fund's primary objectives.

We appreciate your continued confidence in the CMG Ultra Short Term Bond Fund.

Portfolio Management

Guy C. Holbrook has managed the fund since March 2004 and has been with the advisor or its predecessors or affiliate organizations since 1998.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Federal National Mortgage Association, 4.250% 05/15/2009		3.1
Bank One Issuance Trust, 3.940% 04/16/2012		2.1
E.I. Du Pont de Nemours & Co., 6.875% 10/15/2009		1.6
Federal Home Loan Mortgage Corp., 5.000% 06/11/2009		1.6
AmeriCredit Automobile Receivables Trust, 5.420% 08/08/2011		1.6
Citibank Credit Card Issuance Trust, 4.400% 09/15/2010		1.6
Berkshire Hathaway Finance Corp., 3.092% 01/11/2011		1.6
AmeriCredit Automobile Receivables Trust, 5.190% 11/06/2011		1.5
Leek Finance PLC, 2.911% 12/21/2038		1.4
Chase Issuance Trust, 4.520% 12/15/2010		1.3

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yield and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices typically drop, and vice versa.

10

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		Life
CMG Ultra Short Term Bond Fund		03/08/04		1.42		2.63
Citigroup One-Year U.S. Treasury Bill Index				5.24		3.42

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		Life
CMG Ultra Short Term Bond Fund		03/08/04		1.33		2.71
Citigroup One-Year U.S. Treasury Bill Index				5.43		3.41

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.31%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.

Growth of a $3,000,000 investment, March 8, 2004 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Citigroup One-Year U.S. Treasury Bill Index consists of a single 1-year U.S. Treasury Bill whose return is tracked until its maturity. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

Index performance is from March 8, 2004.

11

UNDERSTANDING YOUR EXPENSES – CMG Ultra Short Term Bond Fund

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

1,004.62

1,023.62

1.25

1.26

0.25

Expenses paid during the period are equal to the annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

12

Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the twelve-month period that ended July 31, 2008, the CMG High Yield Fund returned 2.81%. It underperformed its benchmark, the JPMorgan Developed BB High Yield Index,¹ which returned 3.79%. It outperformed the average return of its peer group, the Lipper High Current Yield Funds Classification, which was negative 1.37% for the period.² The performance differential was the result of the fund's positioning relative to risk: we believe it was more conservatively positioned than its peer group but less conservatively positioned than its benchmark during a period when market sentiment was highly risk-averse.

The fund has historically concentrated on the higher quality segments of the high-yield market, and this positioning was helpful in the twelve months gone by. Turmoil in the mortgage markets created an environment in which fixed-income investors made near-term safety a much greater priority than long-term potential. As a result, Treasury securities were the single best-performing asset class within the fixed-income markets, and, more generally, lower credit-quality translated into weaker near-term performance. The high-yield market was rendered especially vulnerable as the economy slowed and corporate earnings came under pressure.

The fund's underweight position in riskier CCC bonds was a good match for this risk-averse environment. Specific holdings that benefited the fund were Teekay Shipping; power generating companies, such as Intergen and Mirant; and forest-products company Domtar and packaging/containers companies Owens-Illinois and Crown Holdings. The fund's holdings in hospital company HCA and mining company Freeport-McMoran were also helpful to overall performance, because the industries they represent were somewhat insulated from the fortunes of the national economy.³

Holdings that detracted from performance included a range of more economically sensitive companies, notably printer Quebecor and telephone directory companies R.H. Donnelley and Idearc. A position in Sprint was hurt by poor operating performance and, ultimately, a ratings downgrade, while GMAC (General Motors Acceptance Corporation) came under pressure as

The credit quality ratings represent those of Moody's Investors Service, Inc. ("Moody's") or Standard & Poor's Corporation ("S&P") credit ratings. The ratings represent their opinions as to the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality. The security's credit quality does not eliminate risk.

¹ The JPMorgan Developed BB High Yield Index is designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

³ Holdings are disclosed as a percentage of net assets on July 31, 2008, and are subject to change: Teekay Shipping (0.7%), Intergen (1.2%), Mirant (1.1%), Owens-Illinois (1.0%), Domtar (0.6%), Crown Holdings (0.8%), HCA (3.0%), Freeport-McMoRan (1.7%), Quebecor (0.8%), R.H. Donnelley (0.4%), Idearc (0.2%), GMAC (0.6%).

13

mortgage and auto financing became more difficult. We sold Sprint before the end of the period. More generally, the fund was underweighted in BB-rated bonds relative to its benchmark. This hurt relative performance because BB bonds represent the best credit quality available in the high-yield markets.

We believe that the financial markets will continue to be volatile in the year ahead. As the economy struggles, we would not be surprised to see an increase in the corporate default rate, representing a significant challenge for the high-yield marketplace. We intend to maintain the fund's focus on conservative, higher quality issues, a stance that we believe should continue to benefit our shareholders. We will continue to seek out what we believe are companies with strong underlying assets that generate solid free cash flow. We believe such companies are well-positioned to survive near-term economic weakness and offer upside potential when market conditions improve.

We appreciate your continued confidence in the CMG High Yield Fund.

Portfolio Management

Kevin L. Cronk has co-managed the fund since September 2005. He has been with the advisor or its predecessors or affiliate organizations since August 1999.

Thomas A. LaPointe has co-managed the fund since September 2005. He has been with the advisor or its predecessors or affiliate organizations since February 1999.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
HCA, Inc., 9.625% 11/15/2016		2.3
Edison Mission Energy, 7.000% 05/15/2017		1.9
Freeport-McMoRan Copper & Gold, Inc., 8.375% 04/01/2017		1.7
EchoStar DBS Corp., 6.625% 10/01/2014		1.5
TXU Energy Co. LLC, 6.234% 10/10/2014		1.5
DirecTV Holdings LLC, 6.375% 06/15/2015		1.5
Chesapeake Energy Corp., 6.375% 06/15/2015		1.4
Allied Waste North America, Inc., 7.125% 05/15/2016		1.2
Intergen NV, 9.000% 06/30/2017		1.2
Qwest Corp., 7.500% 10/01/2014		1.2

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments, yields and share price fluctuations due to changes in interest rates. When interest rates go up, bond prices generally drop, and vice versa.

Investments in high yield or "junk" bonds offer the potential for higher income than investments in investment-grade bonds, but they also have a higher degree of risk. Changes in economic conditions or other circumstances may adversely affect a high-yield bond issuer's ability to make timely principal and interest payments.

14

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		10-year
CMG High Yield Fund		07/06/94		2.81		5.09		5.10
JPMorgan Developed BB High Yield Index				3.79		6.36		6.67

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		10-year
CMG High Yield Fund		07/06/94		0.48		4.79		5.26
JPMorgan Developed BB High Yield Index				1.70		6.05		6.77

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributionsand do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.40% and 0.49%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/2009.

Growth of a $3,000,000 investment, August 1, 1998 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The JPMorgan Developed BB High Yield Index is designed to mirror the investable universe of the U.S. dollar developed, BB-rated, high yield corporate debt market. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

15

UNDERSTANDING YOUR EXPENSES – CMG High Yield Fund

As a fund shareholder, you incur two types of costs. There are transaction costs and also ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the reporting period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the reporting period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this reporting period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount under "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

1,002.39

1,022.87

1.99

2.01

0.40

Expenses paid during the period are equal to the annualized expense ratio of 0.40%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

16

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	10.03		$	10.05		$	10.42		$	10.36		$	10.38
Income from investment operations:
Net investment income (a)		0.51			0.52			0.48			0.42			0.37
Net realized and unrealized gain (loss) on investments and futures contracts		(0.12	)		(0.02	)		(0.33	)		0.09			0.11
Total from investment operations		0.39			0.50			0.15			0.51			0.48
Less distributions to shareholders:
From net investment income		(0.54	)		(0.52	)		(0.51	)		(0.45	)		(0.41	)
From net realized gains		-			-			(0.01	)		-			(0.09	)
Total distributions		(0.54	)		(0.52	)		(0.52	)		(0.45	)		(0.50	)
Net asset value, end of period	$	9.88		$	10.03		$	10.05		$	10.42		$	10.36
Total return (b)(c)		3.84	%		5.06	%		1.46	%		4.98	%		4.67	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense		0.25	%		0.25	%		0.25	%(d)		0.25	%(d)		0.35	%(d)
Interest expense		-	%(e)		-			-			-			-
Net expenses		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Waiver/Reimbursement		0.08	%		0.13	%		0.10	%		0.06	%		0.25	%
Net investment income		5.07	%		5.07	%		4.65	%(d)		4.01	%(d)		3.54	%(d)
Portfolio turnover rate		272	%		95	%		109	%		130	%		231	%
Net assets, end of period (000's)	$	88,124		$	67,673		$	56,181		$	79,102		$	32,810

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
17

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	11.58		$	11.59		$	11.79		$	11.95		$	12.01
Income from investment operations:
Net investment income (a)		0.57			0.57			0.50			0.40			0.35
Net realized and unrealized gain (loss) on investments, foreign currency  and futures contracts		(0.05	)		0.03			(0.14	)		(0.11	)		(0.03	)
Total from investment operations		0.52			0.60			0.36			0.29			0.32
Less distributions to shareholders:
From net investment income		(0.60	)		(0.61	)		(0.56	)		(0.45	)		(0.38	)
Net asset value, end of period	$	11.50		$	11.58		$	11.59		$	11.79		$	11.95
Total return (b)(c)		4.60	%		5.25	%		3.15	%		2.47	%		2.72	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses		0.25	%		0.25	%		0.25	%(d)		0.25	%(d)		0.25	%(d)
Waiver/Reimbursement		0.05	%		0.07	%		0.08	%		0.04	%		0.10	%
Net investment income		4.87	%		4.87	%		4.31	%(d)		3.38	%(d)		2.91	%(d)
Portfolio turnover rate		46	%		67	%		128	%		51	%		79	%
Net assets, end of period (000's)	$	205,543		$	138,432		$	83,984		$	95,842		$	119,125

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

See Accompanying Notes to Financial Statements.
18

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,												Period Ended July 31,
	2008			2007			2006			2005			2004 (a)
Net asset value, beginning of period	$	9.59		$	9.62		$	9.67		$	9.88		$	10.00
Income from investment operations:
Net investment income (b)		0.43			0.47			0.38			0.24			0.07
Net realized and unrealized loss on investments		(0.30	)		(0.03	)		(0.02	)		(0.06	)		(0.08	)
Total from investment operations		0.13			0.44			0.36			0.18			(0.01	)
Less distributions to shareholders:
From net investment income		(0.43	)		(0.47	)		(0.41	)		(0.36	)		(0.11	)
Return of capital		-			-			-	(c)		(0.03	)		-
Total distributions to shareholders		(0.43	)		(0.47	)		(0.41	)		(0.39	)		(0.11	)
Net asset value, end of period	$	9.29		$	9.59		$	9.62		$	9.67		$	9.88
Total return (d)(e)		1.42	%		4.62	%(f)		3.84	%		1.83	%		(0.08	)%(g)
Ratios to Average Net Assets/Supplemental Data:
Net expenses		0.25	%		0.25	%		0.25	%(h)		0.25	%(h)		0.25	%(h)(i)
Waiver/Reimbursement		0.07	%		0.06	%		0.07	%		0.05	%		0.22	%(i)
Net investment income		4.58	%		4.88	%		3.93	%(h)		2.44	%(h)		1.69	%(h)(i)
Portfolio turnover rate		69	%		108	%		48	%		75	%		12	%(g)
Net assets, end of period (000's)	$	96,595		$	152,793		$	89,863		$	81,575		$	67,235

(a)  The Fund commenced investment operations on March 8, 2004. Per share data, total return and portfolio turnover reflect activity from that date.

(b)  Per share data was calculated using the average shares outstanding during the period.

(c)  Rounds to less than $0.01 per share.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the invesment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.

(g)  Not annualized.

(h)  The benefits derived from custody credits had an impact of less than 0.01%.

(i)  Annualized.

See Accompanying Notes to Financial Statements.
19

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	7.48		$	7.66		$	8.08		$	8.00		$	7.90
Income from investment operations:
Net investment income (a)		0.52			0.53			0.50			0.51			0.53
Net realized and unrealized gain (loss) on investments and foreign currency		(0.31	)		(0.16	)		(0.38	)		0.11			0.14
Total from investment operations		0.21			0.37			0.12			0.62			0.67
Less distributions to shareholders:
From net investment income		(0.53	)		(0.55	)		(0.54	)		(0.54	)		(0.57	)
Net asset value, end of period	$	7.16		$	7.48		$	7.66		$	8.08		$	8.00
Total return (b)(c)		2.81	%		4.76	%		1.47	%		7.98	%		8.60	%
Ratios to Average Net Assets/Supplemental Data:
Net expenses before interest expense		0.40	%		0.40	%		0.40	%(d)		0.40	%(d)		0.40	%(d)
Interest expense		-	%(e)		-			-			-			-
Net expenses		0.40	%		0.40	%		0.40	%(d)		0.40	%(d)		0.40	%(d)
Waiver/Reimbursement		0.14	%		0.09	%		0.04	%		0.02	%		0.02	%
Net investment income		7.01	%		6.70	%		6.38	%(d)		6.26	%(d)		6.64	%(d)
Portfolio turnover rate		37	%		57	%		30	%		39	%		47	%
Net assets, end of period (000's)	$	45,697		$	62,173		$	96,120		$	269,243		$	382,157

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(d)  The benefits derived from custody credits had an impact of less than 0.01%.

(e)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
20

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Par		Value
Mortgage-Backed Securities (39.0%)
Federal Home Loan Mortgage Corp.
4.000% 11/01/20	$	207,407	$	193,431
4.913% 04/01/38 (a)		843,397		830,944
5.000% 11/01/21		1,343		1,325
5.000% 12/01/36		1,204,661		1,145,947
Federal National Mortgage Association
4.856% 04/01/38 (a)		574,672		565,880
4.899% 04/01/38 (a)		569,407		560,981
4.924% 04/01/38 (a)		661,254		661,233
5.000% 05/01/37		1,106,480		1,051,624
5.000% 03/01/38 (b)		1,354,868		1,287,562
5.000% 04/01/38		2,809,997		2,670,685
5.000% 06/01/38		4,919,616		4,675,224
5.500% 04/01/36		142,127		139,350
5.500% 09/01/37		1,663,326		1,629,428
5.500% 06/01/38		1,187,383		1,163,066
5.500% 07/01/38		8,892,645		8,710,532
6.000% 05/01/38		4,650,615		4,676,629
6.000% 06/01/38		1,043,990		1,049,830
6.500% 01/01/38		3,207,916		3,297,791
7.000% 07/01/32		10,895		11,485
Government National Mortgage Association
7.000% 01/15/32		5,992		6,392
7.000% 03/15/32		16,267		17,353
7.000% 06/15/32		3,405		3,632
Total Mortgage-Backed Securities (Cost of $34,635,652)				34,350,324
Corporate Fixed-Income Bonds & Notes (21.8%)
Basic Materials (0.7%)
Chemicals (0.4%)
Dow Chemical Co.
5.700% 05/15/18		375,000		354,006
Iron/Steel (0.3%)
Nucor Corp.
5.000% 06/01/13		195,000		196,065
5.850% 06/01/18 (c)		105,000		105,301
				301,366
				655,372
Communications (3.1%)
Media (1.6%)
Comcast Corp.
5.700% 05/15/18		40,000		37,953
7.050% 03/15/33		350,000		347,699
News America, Inc.
6.550% 03/15/33		275,000		260,853

See Accompanying Notes to Financial Statements.
21

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Media (continued)
Time Warner Cable, Inc.
6.200% 07/01/13	$	500,000	$	510,685
Time Warner, Inc.
6.875% 05/01/12		165,000		168,518
Viacom, Inc.
6.125% 10/05/17		100,000		94,264
				1,419,972
Telecommunication Services (1.5%)
AT&T, Inc.
5.100% 09/15/14		325,000		318,623
British Telecommunications PLC
5.150% 01/15/13		280,000		273,879
Deutsche Telekom International Finance BV
8.500% 06/15/10		205,000		216,449
New Cingular Wireless Services, Inc.
8.750% 03/01/31		250,000		291,149
Telefonica Emisones SAU
5.984% 06/20/11		225,000		227,706
				1,327,806
				2,747,778
Consumer Cyclical (1.2%)
Retail (1.2%)
Best Buy Co., Inc.
6.750% 07/15/13 (d)		240,000		243,796
CVS Caremark Corp.
5.750% 06/01/17		250,000		244,406
Wal-Mart Stores, Inc.
4.125% 07/01/10		525,000		532,438
				1,020,640
Consumer Non-Cyclical (1.5%)
Beverages (0.1%)
Anheuser-Busch Companies, Inc.
5.950% 01/15/33		12,000		10,372
Coca-Cola Co.
5.750% 03/15/11		4,000		4,196
Diageo Capital PLC
4.375% 05/03/10		75,000		75,120
				89,688
Food (0.9%)
ConAgra Foods, Inc.
6.750% 09/15/11		150,000		155,188
7.875% 09/15/10		185,000		195,507
Kraft Foods, Inc.
6.500% 08/11/17		240,000		241,132
Kroger Co.
6.200% 06/15/12		185,000		190,539
				782,366

See Accompanying Notes to Financial Statements.
22

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Healthcare Products (0.0%)
Johnson & Johnson
6.625% 09/01/09	$	7,000	$	7,218
Household Products/Wares (0.2%)
Fortune Brands, Inc.
5.375% 01/15/16		225,000		207,558
Kimberly-Clark Corp.
5.625% 02/15/12		7,000		7,299
				214,857
Pharmaceuticals (0.3%)
Wyeth
5.500% 02/01/14		250,000		252,941
				1,347,070
Energy (1.8%)
Oil & Gas (0.8%)
Nexen, Inc.
5.875% 03/10/35		250,000		219,065
Talisman Energy, Inc.
6.250% 02/01/38		290,000		255,974
Valero Energy Corp.
6.875% 04/15/12		200,000		206,450
				681,489
Oil & Gas Services (0.4%)
Weatherford International Ltd.
5.150% 03/15/13		295,000		292,365
7.000% 03/15/38		65,000		65,156
				357,521
Pipelines (0.6%)
Energy Transfer Partners LP
6.000% 07/01/13		215,000		217,073
6.625% 10/15/36 (c)		200,000		184,151
TransCanada Pipelines Ltd.
6.350% 05/15/67 (a)		190,000		160,560
				561,784
				1,600,794
Financials (9.3%)
Banks (2.6%)
ANZ National International Ltd.
6.200% 07/19/13 (d)		150,000		150,039
Bank One Corp.
6.000% 08/01/08		27,000		27,000
Barclays Bank PLC
7.400% 12/15/09		3,000		3,099
Citigroup, Inc.
5.000% 09/15/14		460,000		417,222

See Accompanying Notes to Financial Statements.
23

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Banks (continued)
Credit Suisse/NY
6.000% 02/15/18	$	155,000	$	148,410
Deutsche Bank AG
4.875% 05/20/13		520,000		510,365
JPMorgan Chase & Co.
6.000% 01/15/18		280,000		271,666
National City Bank
4.625% 05/01/13 (c)		18,000		12,686
SunTrust Banks, Inc.
6.375% 04/01/11		3,000		3,007
SunTrust Preferred Capital I
5.853% 12/15/11 (a)		240,000		160,200
USB Capital IX
6.189% 04/15/49 (a)		375,000		262,500
Wachovia Capital Trust III
5.800% 03/15/42 (a)		440,000		248,600
Wachovia Corp.
5.500% 05/01/13		120,000		110,795
				2,325,589
Diversified Financial Services (4.5%)
AGFC Capital Trust I
6.000% 01/15/67 (a)(d)		185,000		145,401
American Express Centurion Bank
5.200% 11/26/10 (c)		250,000		249,627
American Express Credit Corp.
5.875% 05/02/13		125,000		122,732
Associates Corp. of North America
6.950% 11/01/18		11,000		11,097
Capital One Financial Corp.
5.500% 06/01/15		400,000		349,707
Citigroup, Inc.
6.125% 05/15/18		150,000		143,567
Credit Suisse First Boston USA, Inc.
4.875% 08/15/10		500,000		503,119
Goldman Sachs Group, Inc.
6.150% 04/01/18		75,000		72,248
6.250% 09/01/17		540,000		527,296
HSBC Finance Corp.
5.000% 06/30/15		475,000		450,839
Lehman Brothers Holdings, Inc.
5.625% 01/24/13 (f)		150,000		140,231
5.750% 07/18/11 (c)(f)		325,000		311,609
6.875% 05/02/18 (c)(f)		30,000		28,164
Merrill Lynch & Co., Inc.
6.050% 08/15/12		475,000		452,656
7.750% 05/14/38		170,000		154,234

See Accompanying Notes to Financial Statements.
24

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Diversified Financial Services (continued)
Morgan Stanley
5.750% 10/18/16	$	350,000	$	313,975
				3,976,502
Insurance (1.2%)
John Hancock Financial Services, Inc.
5.625% 12/01/08		15,000		15,107
Metlife, Inc.
5.375% 12/15/12 (c)		20,000		19,726
Metropolitan Life Global Funding I
5.125% 04/10/13 (d)		360,000		354,970
New York Life Global Funding
4.650% 05/09/13 (d)		345,000		341,937
Principal Life Income Funding Trusts
5.300% 04/24/13		80,000		79,869
UnitedHealth Group, Inc.
5.250% 03/15/11		250,000		247,433
				1,059,042
Real Estate Investment Trusts (REITs) (0.6%)
Health Care Property Investors, Inc.
6.450% 06/25/12 (c)		150,000		142,625
Simon Property Group LP
5.750% 12/01/15		400,000		389,860
				532,485
Savings & Loans (0.4%)
Washington Mutual, Inc.
4.200% 01/15/10		400,000		308,000
				8,201,618
Industrials (1.3%)
Aerospace & Defense (0.0%)
Boeing Co.
5.125% 02/15/13		1,000		1,014
Machinery (0.7%)
Caterpillar Financial Services Corp.
4.300% 06/01/10		400,000		403,278
5.450% 04/15/18		200,000		196,882
				600,160
Transportation (0.6%)
Burlington Northern Santa Fe Corp.
6.200% 08/15/36		200,000		185,526
Union Pacific Corp.
3.875% 02/15/09		310,000		309,594
				495,120
				1,096,294

See Accompanying Notes to Financial Statements.
25

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Technology (0.5%)
Software (0.5%)
Oracle Corp.
4.950% 04/15/13	$	460,000	$	464,566
Utilities (2.4%)
Electric (1.9%)
Commonwealth Edison Co.
5.950% 08/15/16		200,000		198,350
6.150% 09/15/17		360,000		359,202
Indiana Michigan Power Co.
5.650% 12/01/15		205,000		196,899
Pacific Gas & Electric Co.
5.800% 03/01/37		340,000		309,416
Progress Energy, Inc.
7.750% 03/01/31		200,000		221,601
Public Service Electric & Gas Co.
4.000% 11/01/08		5,000		5,001
Southern California Edison Co.
5.000% 01/15/14		350,000		347,999
				1,638,468
Gas (0.5%)
Atmos Energy Corp.
6.350% 06/15/17		175,000		171,726
Sempra Energy
4.750% 05/15/09		300,000		301,140
				472,866
				2,111,334
Total Corporate Fixed-Income Bonds & Notes (Cost of $19,980,230)				19,245,466
Government & Agency Obligations (13.9%)
Foreign Government Obligations (1.5%)
European Investment Bank
4.250% 07/15/13		180,000		182,457
5.125% 05/30/17		295,000		307,604
Kreditanstalt fuer Wiederaufbau
4.500% 07/16/18		425,000		421,929
Province of Quebec
4.625% 05/14/18 (c)		435,000		426,726
				1,338,716
U.S. Government Agency (1.1%)
Federal Home Loan Mortgage Corp.
4.500% 06/12/13		965,000		970,399

See Accompanying Notes to Financial Statements.
26

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Government & Agency Obligations (continued)
U.S. Government Obligations (11.3%)
U.S. Treasury Bonds
5.000% 05/15/37 (c)	$	1,905,000	$	2,023,914
U.S. Treasury Inflation Indexed Notes
3.000% 07/15/12 (c)		174,657		188,493
U.S. Treasury Notes
2.750% 07/31/10		325,000		326,447
3.375% 06/30/13 (c)		3,215,000		3,230,573
3.875% 05/15/18 (c)		3,645,000		3,613,675
4.375% 12/15/10 (c)		505,000		525,161
				9,908,263
Total Government & Agency Obligations (Cost of $12,165,613)				12,217,378
Commercial Mortgage-Backed Securities (9.3%)
Bear Stearns Commercial Mortgage Securities
4.680% 08/13/39 (a)		30,000		28,467
4.740% 03/13/40		445,000		429,297
4.933% 02/13/42 (a)		335,000		312,632
Citigroup/Deutsche Bank Commercial Mortgage Trust
5.322% 12/11/49		750,000		678,259
Commercial Mortgage Pass Through Certificates
5.306% 12/10/46		460,000		423,932
Credit Suisse Mortgage Capital Certificates
5.827% 06/15/38 (a)		560,000		539,233
CW Capital Cobalt Ltd.
5.820% 05/15/46 (a)		460,000		429,728
JPMorgan Chase Commercial Mortgage Securities Corp.
5.440% 06/12/47		495,000		450,274
5.447% 06/12/47		539,000		491,640
5.814% 06/12/43 (a)		560,000		536,374
5.819% 06/15/49 (a)		450,000		420,631
LB-UBS Commercial Mortgage Trust
4.853% 09/15/31		450,000		435,054
5.103% 11/15/30		600,000		597,657
6.462% 03/15/31		405,000		416,995
Morgan Stanley Capital I
5.208% 11/14/42 (a)		205,000		196,648
5.283% 11/12/41		460,000		453,432
5.328% 11/12/41		350,000		323,872
Morgan Stanley Dean Witter Capital I
4.920% 03/12/35		390,000		376,408
Wachovia Bank Commercial Mortgage Trust
5.678% 05/15/46		705,000		649,158
Total Commercial Mortgage-Backed Securities (Cost of $8,426,797)				8,189,691
Asset-Backed Securities (8.7%)
ABFS Mortgage Loan Trust
4.428% 12/15/33		13,654		13,061

See Accompanying Notes to Financial Statements.
27

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Asset-Backed Securities (continued)
AmeriCredit Automobile Receivables Trust
4.870% 12/06/10	$	69,151	$	68,570
Capital One Multi-Asset Execution Trust
4.050% 03/15/13		250,000		250,049
4.850% 02/18/14		525,000		519,889
Capital One Prime Auto Receivables Trust
4.890% 01/17/12		350,000		353,560
Carmax Auto Owner Trust
5.270% 11/15/12		500,000		506,383
Chase Issuance Trust
4.260% 05/15/13		640,000		634,845
4.650% 12/17/12		465,000		468,021
Citibank Credit Card Issuance Trust
5.350% 02/07/20		450,000		429,570
5.500% 06/22/12		455,000		465,363
Discover Card Master Trust
5.100% 10/15/13		595,000		592,366
Ford Credit Auto Owner Trust
4.950% 03/15/13		495,000		489,559
5.160% 04/15/13		560,000		564,366
Franklin Auto Trust
5.360% 05/20/16		300,000		298,826
GE Capital Credit Card Master Note Trust
4.130% 06/15/13		450,000		444,997
Honda Auto Receivables Owner Trust
4.470% 01/18/12		410,000		411,649
IMC Home Equity Loan Trust
7.520% 08/20/28		32,767		32,703
USAA Auto Owner Trust
4.280% 10/15/12		670,000		665,967
4.900% 02/15/12		470,000		476,957
Wilshire Mortgage Loan Trust
7.255% 05/25/28 (a)		5,893		5,782
Total Asset-Backed Securities (Cost of $7,736,007)				7,692,483
Collateralized Mortgage Obligations (6.0%)
Agency (2.5%)
Federal Home Loan Mortgage Corp.
3.750% 12/15/11		50,686		50,543
4.000% 09/15/15		510,000		510,552
4.500% 10/15/18		216,371		217,410
6.500% 10/15/23		91,318		95,108
Government National Mortgage Association
4.430% 04/16/34		90,000		88,388
4.500% 04/16/28		1,000,000		1,004,696
4.807% 08/16/32		90,000		88,855
4.954% 05/16/31		100,000		95,538
				2,151,090

See Accompanying Notes to Financial Statements.
28

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Collateralized Mortgage Obligations (continued)
Non-Agency (3.5%)
Chase Mortgage Finance Corp.
6.000% 03/25/37 (a)	$	1,330,054	$	1,302,891
Countrywide Home Loan Mortgage Pass Through Trust
4.594% 12/19/33 (a)		204,114		192,516
Structured Asset Securities Corp.
5.500% 07/25/33		761,795		753,733
Washington Mutual Alternative Mortgage Pass-Through Certificates
5.500% 10/25/35		894,466		868,941
				3,118,081
Total Collateralized Mortgage Obligations (Cost of $5,368,182)				5,269,171
	Shares
Securities Lending Collateral (12.5%)
State Street Navigator Securities Lending Prime Portfolio (e) (7 day yield of 2.654%)		11,032,313		11,032,313
Total Securities Lending Collateral (Cost of $11,032,313)				11,032,313
	Par
Short-Term Obligation (0.3%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due on 08/01/08, at 2.070%, collateralized by a U.S. Government Agency Obligation maturing 07/20/09, market value of $320,925 (repurchase proceeds $311,018)	$	311,000		311,000
Total Short-Term Obligation (Cost of $311,000)				311,000
Total Investments (111.5%) (Cost of $99,655,794) (g)				98,307,826
Obligation to Return Collateral for Securities Loaned (-12.5%)				(11,032,313	)
Other Assets & Liabilities, Net (1.0%)				848,773
Net Assets (100.0%)			$	88,124,286

See Accompanying Notes to Financial Statements.
29

CMG CORE BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

Notes to Schedule of Investments:

(a)  The interest rate shown on floating rate or variable rate securities reflects the rate at July 31, 2008.

(b)  Security purchased on a delayed delivery basis.

(c)  All or a portion of this security was on loan at July 31, 2008. The total market value of securities on loan at July 31, 2008 is $10,809,928.

(d)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2008, these securities, which are not illiquid, amounted to $1,236,143, which represents 1.4% of net assets.

(e)  Investment made with cash collateral received from securities lending activity.

(f)  The issuer filed for bankruptcy protection under Chapter 11 on September 15, 2008. As a result of this bankruptcy filing, income is no longer being accrued on this security.

(g)  Cost for federal income tax purposes is $99,796,287.

At July 31, 2008, the asset allocation of the Fund was as follows:

Asset Allocation (Unaudited)	% of Net Assets
Mortgage-Backed Securities		39.0
Corporate Fixed-Income Bonds & Notes		21.8
Government & Agency Obligations		13.9
Commercial Mortgage-Backed Securities		9.3
Asset-Backed Securities		8.7
Collateralized Mortgage Obligations		6.0
		98.7
Securities Lending Collateral		12.5
Short-Term Obligation		0.3
Obligation to Return Collateral for Securities Loaned		(12.5	)
Other Assets & Liabilities, Net		1.0
		100.0

See Accompanying Notes to Financial Statements.
30

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Par		Value
Corporate Fixed-Income Bonds & Notes (30.4%)
Basic Materials (0.5%)
Chemicals (0.2%)
EI Du Pont de Nemours & Co.
5.000% 07/15/13	$	355,000	$	355,465
Iron/Steel (0.3%)
Nucor Corp.
5.000% 06/01/13		700,000		703,823
				1,059,288
Communications (3.5%)
Media (0.7%)
Comcast Corp.
5.500% 03/15/11		200,000		200,069
5.850% 01/15/10		600,000		608,671
Time Warner Cable, Inc.
6.200% 07/01/13		650,000		663,890
				1,472,630
Telecommunication Services (2.8%)
AT&T, Inc.
6.250% 03/15/11		1,500,000		1,551,833
British Telecommunications PLC
5.150% 01/15/13		700,000		684,697
Deutsche Telekom International Finance BV
8.500% 06/15/10		800,000		844,678
Telefonica Emisones SAU
5.984% 06/20/11		750,000		759,019
Verizon Global Funding Corp.
7.250% 12/01/10		900,000		951,068
Vodafone Group PLC
7.750% 02/15/10		800,000		836,272
				5,627,567
				7,100,197
Consumer Cyclical (1.5%)
Retail (1.5%)
CVS Caremark Corp.
5.750% 08/15/11		677,000		694,276
Target Corp.
6.350% 01/15/11		1,000,000		1,043,456
Wal-Mart Stores, Inc.
6.875% 08/10/09		1,350,000		1,403,476
				3,141,208
Consumer Non-Cyclical (2.9%)
Beverages (0.8%)
Coca-Cola Enterprises, Inc.
5.750% 11/01/08		725,000		728,888

See Accompanying Notes to Financial Statements.

31

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Beverages (continued)
Diageo Capital PLC
4.375% 05/03/10	$	950,000	$	951,518
				1,680,406
Food (0.7%)
ConAgra Foods, Inc.
7.875% 09/15/10		700,000		739,757
Kraft Foods, Inc.
5.625% 08/11/10		625,000		639,795
				1,379,552
Healthcare Services (0.4%)
UnitedHealth Group, Inc.
4.125% 08/15/09		800,000		792,073
Pharmaceuticals (1.0%)
Abbott Laboratories
5.600% 05/15/11		1,100,000		1,149,411
Wyeth
6.950% 03/15/11		940,000		993,089
				2,142,500
				5,994,531
Energy (1.6%)
Oil & Gas (1.1%)
Canadian Natural Resources Ltd.
5.450% 10/01/12		600,000		601,433
Conoco Funding Co.
6.350% 10/15/11		1,000,000		1,058,969
Valero Energy Corp.
6.875% 04/15/12		575,000		593,543
				2,253,945
Oil & Gas Services (0.3%)
Weatherford International Ltd.
5.150% 03/15/13		650,000		644,194
Pipelines (0.2%)
TransCanada Pipelines Ltd.
6.125% 02/19/10		350,000		359,458
				3,257,597
Financials (15.1%)
Banks (4.4%)
Barclays Bank PLC
7.400% 12/15/09		1,300,000		1,342,982
Deutsche Bank AG London
4.875% 05/20/13		1,000,000		981,471
Fifth Third Bank
4.200% 02/23/10		1,000,000		955,279

See Accompanying Notes to Financial Statements.

32

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Banks (continued)
Mellon Funding Corp.
3.250% 04/01/09	$	1,175,000	$	1,168,184
PNC Funding Corp.
4.500% 03/10/10		800,000		795,678
SunTrust Banks, Inc.
4.250% 10/15/09		925,000		914,994
U.S. Bank National Association
6.375% 08/01/11		1,500,000		1,566,307
Wells Fargo & Co.
3.120% 08/15/08		810,000		809,729
4.000% 08/15/08		600,000		600,232
				9,134,856
Diversified Financial Services (7.8%)
American Express Credit Corp.
5.875% 05/02/13		1,600,000		1,570,963
Capital One Bank
5.750% 09/15/10 (a)		925,000		912,204
Citigroup, Inc.
4.250% 07/29/09		825,000		825,242
Countrywide Home Loans, Inc.
4.125% 09/15/09 (b)		600,000		583,174
Credit Suisse First Boston USA, Inc.
4.875% 08/15/10		1,500,000		1,509,357
General Electric Capital Corp.
4.875% 10/21/10		1,800,000		1,839,114
Goldman Sachs Group, Inc.
4.500% 06/15/10		1,400,000		1,402,682
HSBC Finance Corp.
7.000% 05/15/12		1,500,000		1,557,648
JPMorgan Chase & Co.
3.800% 10/02/09		1,500,000		1,493,826
Lehman Brothers Holdings, Inc.
3.950% 11/10/09 (g)		1,100,000		1,060,035
Merrill Lynch & Co., Inc.
4.125% 01/15/09		1,000,000		989,755
Morgan Stanley
3.875% 01/15/09		1,200,000		1,195,630
National Rural Utilities Cooperative Finance Corp.
5.750% 08/28/09 (a)		1,000,000		1,017,164
				15,956,794
Insurance (1.9%)
Allstate Corp.
7.200% 12/01/09		1,250,000		1,296,186
American International Group, Inc.
5.375% 10/18/11		850,000		828,045
Berkshire Hathaway Finance Corp.
5.000% 08/15/13 (c)		500,000		501,063

See Accompanying Notes to Financial Statements.

33

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Insurance (continued)
Genworth Financial, Inc.
4.750% 06/15/09	$	600,000	$	596,254
Principal Life Income Funding Trusts
5.300% 04/24/13		700,000		698,851
				3,920,399
Real Estate Investment Trusts (REITs) (0.3%)
Simon Property Group LP
4.875% 03/18/10		600,000		596,110
Savings & Loans (0.7%)
Western Financial Bank
9.625% 05/15/12		1,325,000		1,368,181
				30,976,340
Industrials (1.9%)
Aerospace & Defense (0.5%)
United Technologies Corp.
6.500% 06/01/09		970,000		998,194
Machinery (0.8%)
Caterpillar Financial Services Corp.
4.300% 06/01/10		825,000		831,762
John Deere Capital Corp.
4.500% 04/03/13		800,000		789,693
				1,621,455
Miscellaneous Manufacturing (0.1%)
3M Co.
5.125% 11/06/09		225,000		230,914
Transportation (0.5%)
Burlington Northern Santa Fe Corp.
6.750% 07/15/11		700,000		733,397
Union Pacific Corp.
3.875% 02/15/09		415,000		414,457
				1,147,854
				3,998,417
Technology (1.2%)
Computers (0.4%)
International Business Machines Corp.
4.950% 03/22/11 (a)		800,000		823,359
Networking & Telecom Equipment (0.5%)
Cisco Systems, Inc.
5.250% 02/22/11		1,000,000		1,029,354

See Accompanying Notes to Financial Statements.

34

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Software (0.3%)
Oracle Corp.
5.000% 01/15/11	$	700,000	$	715,107
				2,567,820
Utilities (2.2%)
Electric (1.9%)
American Electric Power Co., Inc.
5.375% 03/15/10		800,000		808,365
Consolidated Edison Co. of New York
4.700% 06/15/09		1,000,000		1,010,136
Dominion Resources, Inc.
5.125% 12/15/09		450,000		455,487
Exelon Generation Co. LLC
6.950% 06/15/11		800,000		827,409
Pacific Gas & Electric Co.
4.200% 03/01/11		850,000		843,786
				3,945,183
Gas (0.3%)
Sempra Energy
4.750% 05/15/09		484,000		485,839
				4,431,022
Total Corporate Fixed-Income Bonds & Notes (Cost of $62,610,705)				62,526,420
Asset-Backed Securities (20.1%)
AmeriCredit Automobile Receivables Trust
4.870% 12/06/10		497,884		493,707
5.190% 11/06/11		1,600,000		1,588,856
5.210% 10/06/11		555,435		546,545
5.290% 11/06/10		10,648		10,645
5.420% 08/08/11		799,271		780,147
5.420% 05/07/12		4,000,000		3,867,831
Americredit Prime Automobile Receivable
5.270% 11/08/11		1,000,000		1,006,961
Capital One Auto Finance Trust
5.030% 04/15/12		3,000,000		2,910,751
Cityscape Home Equity Loan Trust
7.380% 07/25/28		429,406		428,354
7.410% 05/25/28		42,522		42,074
CPS Auto Trust
5.040% 09/15/11 (c)		400,000		381,527
Daimler Chrysler Auto Trust
4.980% 02/08/11		1,107,861		1,118,445
Fifth Third Auto Trust
4.070% 01/17/12		1,400,000		1,400,690
Ford Credit Auto Owner Trust
5.050% 03/15/10		871,098		875,838

See Accompanying Notes to Financial Statements.

35

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Asset-Backed Securities (continued)
Franklin Auto Trust
5.040% 01/20/11	$	596,102	$	600,539
GE Equipment Midticket LLC
4.530% 06/14/11		2,000,000		2,018,983
GS Auto Loan Trust
5.480% 12/15/14		2,000,000		2,019,894
Hyundai Auto Receivables Trust
5.110% 04/15/11		677,106		685,186
IMC Home Equity Loan Trust
7.500% 04/25/26		152,127		151,496
7.520% 08/20/28		443,621		442,752
Nissan Auto Lease Trust
5.200% 05/17/10		1,000,000		1,012,255
Nissan Auto Receivables Owner Trust
5.220% 11/15/11		3,150,000		3,213,306
Pinnacle Capital Asset Trust
5.770% 05/25/10 (c)		870,000		867,597
Santander Drive Auto Receivables Trust
5.050% 09/15/11		500,000		492,031
SLM Student Loan Trust
2.836% 03/15/17 (e)		799,252		787,598
2.856% 12/15/20 (e)		1,532,000		1,444,258
Triad Auto Receivables Owner Trust
4.220% 06/12/12		2,057,491		1,967,520
UCFC Home Equity Loan
6.315% 04/15/30		294,833		294,444
UPFC Auto Receivables Trust
5.010% 08/15/12		1,211,879		1,172,553
USAA Auto Owner Trust
4.130% 11/15/11		1,803,248		1,809,781
4.170% 02/15/11		1,430,000		1,436,991
4.890% 08/15/12		3,655,000		3,700,088
5.070% 06/15/13		750,000		758,422
Wachovia Auto Loan Owner Trust
5.080% 04/20/12 (c)		1,000,000		1,006,503
Total Asset-Backed Securities (Cost of $41,228,796)				41,334,568
Collateralized Mortgage Obligations (19.1%)
Agency (10.5%)
Federal Home Loan Mortgage Corp.
4.000% 09/15/15		357,578		357,535
4.500% 02/15/15		635,465		640,019
5.000% 09/15/24		592,925		596,989
5.000% 03/15/26		1,163,906		1,177,748
5.000% 05/15/26		133,883		135,074
5.500% 02/15/25		1,485,968		1,512,044
5.500% 12/15/26		551,596		560,812
5.500% 06/15/28		1,700,000		1,738,661
5.500% 11/15/28		5,594,873		5,711,067

See Accompanying Notes to Financial Statements.

36

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Collateralized Mortgage Obligations (continued)
Agency (continued)
5.500% 10/15/29	$	579,880	$	592,641
5.500% 05/15/34		3,144,689		3,194,887
6.000% 06/15/25		913,007		933,410
6.000% 05/15/27		1,046,511		1,071,566
Federal National Mortgage Association
4.500% 01/25/29		911,647		913,332
5.500% 07/25/25		1,263,646		1,283,006
6.000% 06/25/27		1,035,433		1,058,188
				21,476,979
Non-Agency (8.6%)
Chase Mortgage Finance Corp.
5.935% 03/25/37 (e)		863,323		827,211
Countrywide Alternative Loan Trust
5.250% 08/25/35		1,123,177		1,047,153
5.500% 02/25/36		1,912,448		1,757,513
Countrywide Home Loan Mortgage Pass Through Trust
5.485% 01/25/36 (e)		1,031,886		988,173
6.000% 12/25/36		452,745		453,456
JPMorgan Mortgage Trust
5.755% 04/25/36 (e)		1,309,239		1,204,800
6.041% 10/25/36 (e)		2,627,339		2,495,804
MASTR Asset Securitization Trust
5.750% 05/25/36		1,188,645		1,187,236
PNC Mortgage Securities Corp.
0.110% 04/28/27 (e)		4,759		4,741
Residential Accredit Loans, Inc.
5.750% 01/25/36		226,202		219,925
SACO I, Inc.
7.000% 08/25/36 (c)		71,824		71,465
Structured Adjustable Rate Mortgage Loan Trust
5.796% 07/25/36 (e)		2,069,203		1,582,156
Structured Asset Securities Corp.
5.750% 04/25/33		542,741		505,464
Washington Mutual Mortgage Pass-Through Certificates
5.645% 11/25/36 (e)		1,846,248		1,747,388
5.877% 07/25/37 (e)		2,453,404		1,939,183
Wells Fargo Mortgage Backed Securities Trust
5.240% 04/25/36 (e)		472,957		456,295
6.000% 07/25/37		1,276,939		1,248,840
				17,736,803
Total Collateralized Mortgage Obligations (Cost of $40,675,700)				39,213,782
Mortgage-Backed Securities (11.5%)
Federal Home Loan Mortgage Corp.
4.000% 05/01/11		1,132,393		1,124,240
4.500% 03/01/21		1,425,939		1,371,732

See Accompanying Notes to Financial Statements.

37

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Mortgage-Backed Securities (continued)
5.000% 06/01/22	$	880,666	$	864,499
5.500% 01/01/21		318,228		320,012
5.500% 07/01/21		86,564		86,860
5.500% 08/01/21		967,044		970,349
5.500% 09/01/21		721,237		723,702
5.500% 01/01/22		701,031		703,059
5.500% 03/01/22		743,609		745,760
5.500% 06/01/23		1,733,914		1,738,757
5.500% 08/01/23		3,200,000		3,208,937
6.000% 11/01/14		3,868		3,949
6.000% 08/01/21		424,012		432,951
6.000% 02/01/22		364,872		372,491
6.000% 06/01/22		928,709		948,102
6.000% 08/01/22		488,335		498,532
6.000% 10/01/22		787,481		803,925
6.000% 11/01/22		2,000,000		2,042,163
TBA,
6.000% 08/01/23 (d)		1,600,000		1,631,000
Federal National Mortgage Association
5.000% 06/01/20		1,024,837		1,012,327
5.000% 05/01/23		1,735,409		1,706,090
5.500% 11/01/21		309,868		311,412
5.500% 08/01/22		1,632,660		1,639,934
6.000% 03/01/09		11,563		11,809
6.000% 05/01/09		125,131		127,794
Small Business Administration
2.625% 03/25/22 (e)		70,353		70,672
2.625% 06/25/22 (e)		161,102		161,842
Total Mortgage-Backed Securities (Cost of $23,639,393)				23,632,900
Commercial Mortgage-Backed Securities (8.3%)
Bear Stearns Commercial Mortgage Securities, Inc.
3.869% 02/11/41		3,425,000		3,410,476
Capco America Securitization Corp.
6.260% 10/15/30		251,615		251,824
CS First Boston Mortgage Securities Corp.
4.512% 07/15/37		800,000		791,850
5.017% 08/15/38		350,000		348,651
First Union National Bank Commercial Mortgage
7.841% 05/17/32		1,943,078		2,014,767
JPMorgan Chase Commercial Mortgage Securities Corp.
4.914% 07/12/37		1,415,441		1,412,184
5.538% 02/12/49		1,696,215		1,687,052
JPMorgan Commercial Mortgage Finance Corp.
6.812% 01/15/30		700,000		718,339
LB-UBS Commercial Mortgage Trust
4.243% 10/15/29		1,000,000		976,654
5.642% 12/15/25		361,030		364,317

See Accompanying Notes to Financial Statements.

38

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Commercial Mortgage-Backed Securities (continued)
Merrill Lynch Mortgage Trust
4.446% 09/12/42	$	734,511	$	732,979
Merrill Lynch/Countrywide Commercial Mortgage Trust
5.549% 06/12/50		1,727,083		1,715,880
Morgan Stanley Capital I
7.020% 03/15/32 (e)		689,066		693,862
Prudential Securities Secured Financing Corp.
6.480% 11/01/31		217,208		217,097
7.511% 06/16/31 (e)		1,700,000		1,737,606
Total Commercial Mortgage-Backed Securities (Cost of $17,017,854)				17,073,538
Government & Agency Obligations (6.0%)
Foreign Government Obligations (0.7%)
Morocco Government AID Bond
3.125% 05/01/23 (e)		300,000		287,478
Province of Quebec
5.000% 07/17/09 (a)		875,000		890,018
United Mexican States
4.625% 10/08/08		325,000		325,000
				1,502,496
U.S. Government Agencies (3.3%)
Federal Home Loan Bank
5.250% 06/11/10 (a)		3,400,000		3,527,306
Federal National Mortgage Association
4.625% 06/01/10		1,700,000		1,742,316
5.000% 04/20/09		1,400,000		1,421,469
5.375% 08/15/09		100,000		102,652
				6,793,743
U.S. Government Obligations (2.0%)
U.S. Treasury Inflation Indexed Bond
3.500% 01/15/11 (a)		1,219,463		1,305,302
U.S. Treasury Notes
3.875% 10/31/12 (a)		2,700,000		2,781,843
				4,087,145
Total Government & Agency Obligations (Cost of $12,383,078)				12,383,384
	Shares
Securities Lending Collateral (3.1%)
State Street Navigator Securities Lending Prime Portfolio (f) (7 day yield of 2.654%)		6,312,979		6,312,979
Total Securities Lending Collateral (Cost of $6,312,979)				6,312,979

See Accompanying Notes to Financial Statements.

39

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Short-Term Obligation (6.1%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 2.070%, collateralized by U.S. Government Agency Obligation maturing 05/28/09, market value $12,725,000 (repurchase proceeds $12,473,717)	$	12,473,000	$	12,473,000
Total Short-Term Obligation (Cost of $12,473,000)				12,473,000
Total Investments (104.6%) (Cost of $216,341,505) (h)				214,950,571
Obligation to Return Collateral for Securities Loaned (-3.1%)				(6,312,979	)
Other Assets & Liabilities, Net (-1.5%)				(3,094,137	)
Net Assets (100.0%)			$	205,543,455

Notes to Schedule of Investments:

(a)  All or a portion of this security was on loan at July 31, 2008. The total market value of securities on loan at July 31, 2008 is $6,214,200.

(b)  Investments in affiliates during the year ended July 31, 2008:
Security name:  Countrywide Home Loans, Inc., 4.125% 09/15/09

Par as of 07/31/07:	$	600,000
Par purchased:	$	-
Par sold:	$	-
Par as of 07/31/08:	$	600,000
Net realized gain:	$	-
Interest income earned:	$	24,750
Value at end of period:	$	583,174
Countrywide became an affiliate on July 1, 2008.

(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2008, these securities, which are not illiquid, amounted to $2,828,155, which represents 1.4% of net assets.

(d)  Security purchased on a delayed delivery basis.

(e)  The interest rate shown on floating rate or variable rate securities reflects the rate at July 31, 2008.

(f)  Investment made with cash collateral received from securities lending activity.

(g)  The issuer filed for bankruptcy protection under Chapter 11 on September 15, 2008. As a result of this bankruptcy filing, income is no longer being accrued on this security.

(h)  Cost for federal income tax purposes is $216,760,565.

See Accompanying Notes to Financial Statements.

40

CMG SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

At July 31, 2008, the asset allocation of the Fund is as follows:

Asset Allocation (Unaudited)	% of Net Assets
Corporate Fixed-Income Bonds & Notes		30.4
Asset-Backed Securities		20.1
Collateralized Mortgage Obligations		19.1
Mortgage-Backed Securities		11.5
Commercial Mortgage-Backed Securities		8.3
Government & Agency Obligations		6.0
		95.4
Securities Lending Collateral		3.1
Short-Term Obligation		6.1
Obligation to Return Collateral for Securities Loaned		(3.1	)
Other Assets & Liabilities, Net		(1.5	)
		100.0

Acronym	Name
TBA	To Be Announced

See Accompanying Notes to Financial Statements.

41

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Par		Value
Corporate Fixed-Income Bonds & Notes (31.0%)
Basic Materials (1.6%)
Chemicals (1.6%)
E.I. Du Pont de Nemours & Co.
6.875% 10/15/09	$	1,500,000	$	1,554,530
Communications (3.2%)
Media (2.7%)
Comcast MO of Delaware LLC
9.000% 09/01/08		1,000,000		1,001,999
Time Warner Entertainment Co. LP
7.250% 09/01/08 (a)		1,000,000		1,002,467
Walt Disney Co.
2.796% 09/10/09 (b)		580,000		579,988
				2,584,454
Telecommunications (0.5%)
Cisco Systems, Inc.
2.738% 02/20/09 (b)		500,000		500,255
				3,084,709
Consumer Cyclical (0.5%)
Retail (0.5%)
Wal-Mart Stores, Inc.
6.875% 08/10/09		500,000		519,806
Consumer Non-Cyclical (3.4%)
Beverages (1.1%)
Diageo Finance BV
2.921% 03/30/09 (b)		1,000,000		998,821
Cosmetics/Personal Care (0.1%)
Procter & Gamble Co.
3.500% 12/15/08		100,000		100,197
Food (1.2%)
Pepsi Bottling Holdings, Inc.
5.625% 02/17/09 (c)		1,150,000		1,160,788
Healthcare Services (1.0%)
UnitedHealth Group Inc.
2.762% 03/02/09 (b)		1,000,000		989,077
				3,248,883
Energy (0.4%)
Oil & Gas (0.4%)
Conoco Funding Co.
6.350% 10/15/11		400,000		423,588

See Accompanying Notes to Financial Statements.

42

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Financials (16.7%)
Banks (3.0%)
American Express Centurion Bank
5.200% 11/26/10 (a)	$	750,000	$	748,882
Comerica Bank
2.788% 08/24/11 (b)		1,000,000		907,794
Deutsche Bank AG
4.875% 05/20/13		625,000		613,419
National Westminster Bank PLC
7.375% 10/01/09		641,000		656,806
				2,926,901
Diversified Financial Services (10.2%)
Bear Stearns Companies, Inc.
3.096% 01/30/09 (b)		1,000,000		997,307
Capital One Bank USA
5.000% 06/15/09		800,000		798,522
Citigroup, Inc.
4.125% 02/22/10		850,000		839,157
Credit Suisse USA, Inc.
6.125% 11/15/11		785,000		805,664
General Electric Capital Corp.
2.845% 01/26/11 (a)(b)		1,000,000		988,153
Goldman Sachs Group, Inc.
2.964% 02/06/12 (b)		1,000,000		950,995
6.650% 05/15/09		500,000		511,351
HSBC Finance Corp.
2.944% 08/09/11 (b)		850,000		803,435
JPMorgan Chase & Co.
4.600% 01/17/11		750,000		745,760
Lehman Brothers Holdings, Inc.
2.871% 03/23/09 (b)(j)		750,000		722,879
Merrill Lynch & Co., Inc.
4.250% 02/08/10		800,000		782,197
Morgan Stanley
3.035% 01/18/11 (b)		1,000,000		941,022
				9,886,442
Insurance (1.6%)
Berkshire Hathaway Finance Corp.
3.092% 01/11/11 (b)		1,500,000		1,498,207
Savings & Loans (1.9%)
Wachovia Mortgage FSB
2.807% 03/02/09 (b)		1,000,000		999,593
Washington Mutual Bank
2.874% 11/06/09 (b)		1,000,000		820,209
				1,819,802
				16,131,352

See Accompanying Notes to Financial Statements.

43

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Corporate Fixed-Income Bonds & Notes (continued)
Industrials (1.0%)
Transportation (1.0%)
Union Pacific Corp.
3.875% 02/15/09	$	1,000,000	$	998,692
Information Technology (1.6%)
Computers (1.6%)
Hewlett-Packard Co.
2.786% 06/15/09 (b)		1,000,000		999,967
International Business Machines Corp.
4.375% 06/01/09		500,000		505,726
				1,505,693
Utilities (2.6%)
Electric (1.6%)
Consolidated Edison Co. of New York, Inc.
4.700% 06/15/09		500,000		505,068
Duke Energy Carolinas LLC
4.500% 04/01/10		1,000,000		1,011,240
				1,516,308
Gas (1.0%)
Sempra Energy
4.750% 05/15/09		1,000,000		1,003,800
				2,520,108
Total Corporate Fixed-Income Bonds & Notes (Cost of $30,449,026)				29,987,361
Asset-Backed Securities (30.4%)
Advanta Business Card Master Trust
5.300% 05/21/12		1,000,000		1,000,354
AmeriCredit Automobile Receivables Trust
3.930% 10/06/11		357,249		345,939
5.190% 11/06/11		1,500,000		1,489,552
5.210% 10/06/11		669,199		658,488
5.420% 08/08/11		1,554,137		1,516,952
Bank One Issuance Trust
3.940% 04/16/12		2,000,000		2,013,054
Bay View Auto Trust
4.550% 02/25/14		943,520		949,964
5.010% 06/25/14		300,000		302,592
Capital One Multi-Asset Execution Trust
4.400% 08/15/11		1,000,000		1,002,994
Capital One Prime Auto Receivables Trust
4.990% 09/15/10		256,101		257,855
Carmax Auto Owner Trust
5.150% 02/15/11		1,226,157		1,239,044

See Accompanying Notes to Financial Statements.

44

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Asset-Backed Securities (continued)
Centex Home Equity
6.540% 01/25/32 (b)	$	189,463	$	129,293
Chase Issuance Trust
4.520% 12/15/10		1,300,000		1,302,571
CIT Equipment Collateral
5.070% 02/20/10		806,657		811,161
5.160% 02/20/13		600,000		603,867
Citibank Credit Card Issuance Trust
4.400% 09/15/10		1,500,000		1,501,986
5.300% 05/20/11		1,000,000		1,015,257
CNH Equipment Trust
5.200% 06/15/10		453,336		456,278
5.200% 08/16/10		606,935		609,925
Drive Auto Receivables Trust
5.300% 07/15/11 (c)		648,642		645,947
5.490% 05/15/11 (c)		319,134		319,254
Ford Credit Floorplan Master Owner Trust
2.638% 06/15/11 (b)		700,000		685,483
Franklin Auto Trust
4.910% 04/20/10		4,833		4,838
GE Equipment Small Ticket LLC
4.880% 10/22/09 (c)		195,930		196,205
GMAC Mortgage Corp. Loan Trust
6.310% 05/25/36		246,010		224,661
GS Auto Loan Trust
4.450% 05/17/10		150,517		151,067
Harley-Davidson Motorcycle Trust
5.360% 10/15/10		8,747		8,756
Household Automotive Trust
5.280% 09/17/11		1,095,646		1,104,598
5.300% 11/17/11		1,000,000		999,828
5.430% 06/17/11		560,688		561,365
Long Beach Auto Receivables Trust
4.080% 06/15/10		26,338		26,336
4.972% 10/15/11		750,000		741,300
5.170% 08/15/11		1,139,006		1,128,506
Nomura Asset Acceptance Corp.
2.601% 01/25/36 (b)(c)		89,037		83,608
Onyx Acceptance Grantor Trust
4.180% 03/15/10		63,222		62,870
Ownit Mortgage Loan Asset-Backed Certificates
5.424% 12/25/36		102,899		102,684
Residential Funding Mortgage Securities II, Inc.
2.581% 09/25/35 (b)		77,118		75,034
Santander Drive Auto Receivables Trust
5.050% 09/15/11		1,000,000		984,062

See Accompanying Notes to Financial Statements.

45

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Asset-Backed Securities (continued)
Triad Auto Receivables Owner Trust
4.220% 06/12/12	$	670,921	$	641,583
4.280% 06/14/10		138,247		137,885
4.770% 01/12/11		352,931		349,316
5.260% 11/14/11		1,204,748		1,184,836
5.410% 08/12/11		834,254		827,125
Wachovia Auto Owner Trust
4.790% 04/20/10		13,989		14,004
World Omni Auto Receivables Trust
4.130% 03/15/11		925,000		924,908
Total Asset-Backed Securities (Cost of $29,449,764)				29,393,185
Government & Agency Obligations (9.7%)
Foreign Government Obligations (0.5%)
Svensk Exportkredit AB
4.000% 06/15/10		500,000		506,342
U.S. Government Agencies (9.2%)
Federal Home Loan Bank
3.500% 07/16/10 (a)		1,000,000		1,005,740
4.375% 10/22/10 (a)		1,000,000		1,022,926
5.800% 09/02/08		200,000		200,525
Federal Home Loan Mortgage Corp.
4.250% 07/15/09 (a)		1,000,000		1,012,394
5.000% 06/11/09 (a)		1,500,000		1,526,751
Federal National Mortgage Association
4.250% 05/15/09 (a)		3,000,000		3,032,805
4.750% 12/15/10		1,000,000		1,032,049
				8,833,190
Total Government & Agency Obligations (Cost of $9,353,920)				9,339,532
Collateralized Mortgage Obligations (7.5%)
Agency (2.8%)
Federal Home Loan Mortgage Corp.
4.000% 05/15/14		37,473		37,497
4.000% 07/15/24		141,780		141,822
4.500% 11/15/16		213,528		214,803
5.000% 07/15/14		167,453		167,723
5.000% 11/15/15		119,967		121,087
5.000% 02/15/16		412,170		416,271
5.000% 05/15/26		217,656		219,592
5.500% 02/15/24		194,685		196,629

See Accompanying Notes to Financial Statements.

46

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Collateralized Mortgage Obligations (continued)
Agency (continued)
Federal National Mortgage Association
4.500% 03/25/13	$	197,847	$	197,942
5.000% 01/25/23		46,629		46,566
5.500% 11/25/26		797,883		810,346
6.000% 01/25/31		129,076		129,274
				2,699,552
Non-Agency (4.7%)
Axon Financial Funding Ltd.
3.391% 04/04/17 (b)(c)(d)(e)(f)		1,750,000		17,500
Bear Stearns Alt-A Trust
2.681% 12/25/46 (b)		786,107		239,969
Granite Master Issuer PLC
2.949% 12/17/54 (b)(d)		750,000		635,625
Indymac Index Mortgage Loan Trust
2.701% 04/25/37 (b)		294,306		78,996
JPMorgan Mortgage Trust
5.500% 04/25/36		296,320		293,422
Kildare Securities Ltd.
2.756% 12/10/43 (b)(c)		949,336		923,223
Leek Finance PLC
2.911% 12/21/38 (b)(c)		1,500,000		1,320,753
Opteum Mortgage Acceptance Corp.
5.470% 12/25/35 (b)		98,151		98,140
Residential Mortgage Securities PLC
2.748% 11/14/31 (b)(c)		204,650		203,915
Washington Mutual, Inc.
4.833% 10/25/35 (b)		550,714		530,700
6.250% 07/25/36		190,980		189,869
				4,532,112
Total Collateralized Mortgage Obligations (Cost of $9,883,401)				7,231,664
Mortgage-Backed Securities (2.7%)
Federal Home Loan Mortgage Corp.
3.500% 09/01/08		717,064		716,410
5.060% 02/01/36 (b)		1,027,677		1,032,535
Federal National Mortgage Association
4.247% 03/01/34 (b)		811,155		810,707
Total Mortgage-Backed Securities (Cost of $2,534,014)				2,559,652

See Accompanying Notes to Financial Statements.

47

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Securities Lending Collateral (10.6%)
State Street Navigator Securities Lending Prime Portfolio (g) (7 day yield of 2.654%)		10,256,013	$	10,256,013
Total Securities Lending Collateral (Cost of $10,256,013)				10,256,013
	Par
Short-Term Obligations (18.4%)
Commercial Paper (16.8%)
Amstel Funding Corp.
2.750% 08/07/08	$	1,800,000		1,799,175
Barclays Bank PLC
3.080% 04/21/09 (h)		1,000,000		997,500
CAFCO LLC
2.750% 10/16/08		850,000		844,724
2.690% 09/09/08		500,000		498,543
Cancara Asset Securitisation LLC
2.900% 10/16/08		1,000,000		993,793
Charta Corp.
2.690% 09/10/08		500,000		498,506
Ciesco LLC
2.690% 09/09/08		500,000		498,543
Clipper Receivables Co. LLC
2.750% 08/11/08		700,000		699,465
Eureka Securitization, Inc.
2.570% 08/11/08		1,800,000		1,798,715
Gotham Funding Corp.
2.770% 10/17/08		1,000,000		993,639
Natixis NY
3.050% 10/27/08		750,000		750,305
Royal Bank of Scotland PLC NY
2.650% 08/27/08		500,000		500,000
2.870% 10/21/08		1,000,000		993,668
Scaldis Capital LLC
2.900% 10/16/08		750,000		745,329
Solitaire Funding LLC
2.900% 09/17/08		250,000		249,054
Thames Asset Global Securitization, Inc.
2.640% 08/28/08		500,000		499,010
2.900% 09/15/08		250,000		249,094
Unicredito Italiano Bank Ireland
2.950% 10/07/08		600,000		596,894
Variable Funding Capital Corp.
2.570% 08/18/08		500,000		499,393
Viacom, Inc.
2.850% 08/04/08		1,500,000		1,499,644
				16,204,994

See Accompanying Notes to Financial Statements.

48

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
U.S. Government Agencies (1.0%)
Federal National Mortgage Association
2.146% 08/20/08 (a)(i)	$	1,000,000	$	998,878
U.S. Government Obligations (0.6%)
U.S. Treasury Bill
2.061% 12/04/08 (i)		600,000		595,746
Total Short-Term Obligations (Cost of $17,802,440)				17,799,618
Total Investments (110.3%) (Cost of $109,728,578) (k)				106,567,025
Obligation to Return Collateral for Securities Loaned (-10.6%)				(10,256,013	)
Other Assets & Liabilities, Net (0.3%)				284,006
Net Assets (100.0%)			$	96,595,018

Notes to Schedule of Investments:

(a)  All or a portion of this security was on loan at July 31, 2008. The total market value of securities on loan at July 31, 2008 is $10,068,552.

(b)  The interest rate shown on floating rate or variable rate securities reflects the rate at July 31, 2008.

(c)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2008, these securities, which are not illiquid except for those in the following table, amounted to $4,871,193, which represents 5.0% of net assets.

Security	Acquisition Date		Par		Cost		Value
Axon Financial Funding Ltd., 3.391% 04/04/17		04/04/07	$	1,750,000	$	1,750,000	$	17,500

(d)  Represents fair value as determined in good faith under procedures approved by the Board of Trustees. The value of these securities amounted to $653,125, which represents 0.7% of net assets.

(e)  Security issued by a structured investment vehicle.

(f)  The issuer is in default of certain debt covenants. Income is not being accrued. At July 31, 2008, the value of these securities amounted to $17,500, which represents less than 0.1% of net assets.

(g)  Investment made with cash collateral received from securities lending activity.

(h)  The rate shown represents the discount rate at the date of purchase.

(i)  The rate shown represents the annualized yield at the date of purchase.

(j)  The issuer filed for bankruptcy protection under Chapter 11 on September 15, 2008. As a result of this bankruptcy filing, income is no longer being accrued on this security.

(k)  Cost for federal income tax purposes is $109,870,887.

See Accompanying Notes to Financial Statements.

49

CMG ULTRA SHORT TERM BOND FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

At July 31, 2008, the asset allocation of the Fund is as follows:

Asset Allocation (Unaudited)	% of Net Assets
Corporate Fixed-Income Bonds & Notes		31.0
Asset-Backed Securities		30.4
Government & Agency Obligations		9.7
Collateralized Mortgage Obligations		7.5
Mortgage-Backed Securities		2.7
		81.3
Securities Lending Collateral		10.6
Obligation to Return Collateral for Securities Loaned		(10.6	)
Short-Term Obligations		18.4
Other Assets & Liabilities, Net		0.3
		100.0

See Accompanying Notes to Financial Statements.

50

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (90.3%)
Basic Materials (9.6%)
Chemicals (3.3%)
Agricultural Chemicals (1.0%)
Mosaic Co.
7.625% 12/01/16 (b)	$	315,000	$	330,750
Terra Capital, Inc.
7.000% 02/01/17		135,000		133,312
				464,062
Chemicals-Diversified (1.6%)
Huntsman International LLC
6.875% 11/15/13 (b)	EUR	165,000		223,917
7.875% 11/15/14		290,000		271,875
NOVA Chemicals Corp.
6.500% 01/15/12		275,000		250,250
				746,042
Chemicals-Specialty (0.7%)
Chemtura Corp.
6.875% 06/01/16		345,000		291,525
				1,501,629
Forest Products & Paper (1.8%)
Paper & Related Products (1.8%)
Cascades, Inc.
7.250% 02/15/13		250,000		212,500
Domtar Corp.
7.125% 08/15/15		305,000		286,700
Georgia-Pacific Corp.
8.000% 01/15/24		300,000		276,000
NewPage Corp.
10.000% 05/01/12		70,000		67,025
				842,225
Iron/Steel (1.9%)
Steel-Producers (1.9%)
Russel Metals, Inc.
6.375% 03/01/14		470,000		440,625
Steel Dynamics, Inc.
7.750% 04/15/16 (b)		455,000		448,175
				888,800
Metals & Mining (2.6%)
Diversified Minerals (0.9%)
FMG Finance Ltd.
10.625% 09/01/16 (b)		345,000		400,200
Metal-Diversified (1.7%)
Freeport-McMoRan Copper & Gold, Inc.
8.375% 04/01/17		730,000		764,675
				1,164,875
				4,397,529

See Accompanying Notes to Financial Statements.

51

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Communications (13.2%)
Media (7.3%)
Broadcast Services/Programs (0.8%)
Liberty Media LLC
8.250% 02/01/30	$	425,000	$	376,470
Cable TV (4.0%)
Charter Communications Holdings II LLC/ Charter Communications Holdings II/Capital Corp.
10.250% 09/15/10		170,000		161,925
CSC Holdings, Inc.
7.625% 04/01/11		300,000		296,625
DirecTV Holdings LLC
6.375% 06/15/15		710,000		669,175
EchoStar DBS Corp.
6.625% 10/01/14		770,000		706,475
				1,834,200
Multimedia (1.8%)
Lamar Media Corp.
7.250% 01/01/13		465,000		444,075
Quebecor Media, Inc.
7.750% 03/15/16		385,000		355,162
				799,237
Publishing-Periodicals (0.7%)
Idearc, Inc.
8.000% 11/15/16		245,000		111,475
RH Donnelley Corp.
8.875% 10/15/17		390,000		187,200
				298,675
				3,308,582
Telecommunication Services (5.9%)
Satellite Telecommunications (0.5%)
Intelsat Corp.
9.250% 06/15/16 (b)		225,000		221,063
Telecommunication Equipment (0.8%)
Lucent Technologies, Inc.
6.450% 03/15/29		515,000		363,075
Telecommunication Services (0.5%)
Time Warner Telecom Holdings, Inc.
9.250% 02/15/14		220,000		223,300
Telephone-Integrated (4.1%)
Citizens Communications Co.
7.875% 01/15/27		490,000		431,200

See Accompanying Notes to Financial Statements.

52

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Telephone-Integrated (continued)
Qwest Communications International, Inc.
7.500% 02/15/14	$	200,000	$	184,500
Qwest Corp.
7.500% 10/01/14		580,000		532,150
7.500% 06/15/23		100,000		82,000
Windstream Corp.
7.000% 03/15/19		250,000		228,750
8.625% 08/01/16		440,000		445,500
				1,904,100
				2,711,538
				6,020,120
Consumer Cyclical (8.8%)
Apparel (0.5%)
Apparel Manufacturers (0.5%)
Levi Strauss & Co.
9.750% 01/15/15		245,000		230,913
Auto Parts & Equipment (1.6%)
Auto/Truck Parts & Equipment-Original (0.8%)
ArvinMeritor, Inc.
8.125% 09/15/15		125,000		102,031
TRW Automotive, Inc.
7.000% 03/15/14 (b)		305,000		269,163
				371,194
Auto/Truck Parts & Equipment-Replacement (0.2%)
Commercial Vehicle Group, Inc.
8.000% 07/01/13		100,000		85,000
Rubber-Tires (0.6%)
Goodyear Tire & Rubber Co.
8.625% 12/01/11		81,000		82,013
9.000% 07/01/15		175,000		176,312
				258,325
				714,519
Entertainment (0.9%)
Music (0.7%)
Steinway Musical Instruments, Inc.
7.000% 03/01/14 (b)		195,000		174,525
WMG Acquisition Corp.
7.375% 04/15/14		210,000		165,900
				340,425
Racetracks (0.2%)
Speedway Motorsports, Inc.
6.750% 06/01/13		72,000		68,940
				409,365

See Accompanying Notes to Financial Statements.

53

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Home Builders (0.6%)
Building-Residential/Commercial (0.6%)
KB Home
5.875% 01/15/15	$	365,000	$	299,300
Leisure Time (0.6%)
Cruise Lines (0.6%)
Royal Caribbean Cruises Ltd.
6.875% 12/01/13		215,000		188,125
7.000% 06/15/13		95,000		84,312
				272,437
Lodging (2.3%)
Casino Hotels (1.1%)
MGM Mirage
7.500% 06/01/16		490,000		390,775
Pinnacle Entertainment, Inc.
7.500% 06/15/15		155,000		115,475
				506,250
Gambling (Non-Hotel) (1.2%)
Mashantucket Western Pequot Tribe
8.500% 11/15/15 (b)		370,000		284,900
Seminole Indian Tribe of Florida
7.804% 10/01/20 (b)		260,000		251,332
				536,232
				1,042,482
Retail (1.7%)
Retail-Apparel/Shoe (0.4%)
Phillips-Van Heusen Corp.
7.250% 02/15/11		195,000		195,000
Retail-Automobiles (0.5%)
AutoNation, Inc.
7.000% 04/15/14		235,000		202,394
Retail-Propane Distributors (0.8%)
AmeriGas Partners LP
7.125% 05/20/16		305,000		276,787
7.250% 05/20/15		90,000		83,250
				360,037
				757,431
Textiles (0.6%)
Textile-Products (0.6%)
INVISTA
9.250% 05/01/12 (b)		295,000		297,950
				4,024,397

See Accompanying Notes to Financial Statements.

54

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Consumer Non-Cyclical (10.4%)
Agriculture (0.7%)
Tobacco (0.7%)
Reynolds American, Inc.
7.625% 06/01/16	$	305,000	$	315,186
Beverages (0.9%)
Beverages-Wine/Spirits (0.9%)
Constellation Brands, Inc.
8.125% 01/15/12		400,000		401,000
Biotechnology (0.6%)
Medical-Biomedical/Gene (0.6%)
Bio-Rad Laboratories, Inc.
7.500% 08/15/13		295,000		294,262
Commercial Services (2.0%)
Commercial Services (0.5%)
Iron Mountain, Inc
8.000% 06/15/20		215,000		209,088
Funeral Services & Related Items (0.6%)
Service Corp. International
6.750% 04/01/16		100,000		92,000
7.375% 10/01/14		215,000		208,012
				300,012
Private Corrections (0.9%)
Corrections Corp. of America
6.250% 03/15/13		415,000		405,662
				914,762
Food (1.0%)
Food-Dairy Products (0.2%)
Dean Foods Co.
7.000% 06/01/16		110,000		99,550
Food-Meat Products (0.4%)
Smithfield Foods, Inc.
7.750% 07/01/17		205,000		175,275
Food-Miscellaneous/Diversified (0.4%)
Del Monte Corp.
6.750% 02/15/15		200,000		187,000
				461,825

See Accompanying Notes to Financial Statements.

55

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Healthcare Products (0.6%)
Medical Products (0.6%)
Biomet, Inc.
PIK,
10.375% 10/15/17	$	255,000	$	268,388
Healthcare Services (2.9%)
Medical-Hospitals (2.9%)
HCA, Inc.
9.250% 11/15/16		270,000		278,100
PIK,
9.625% 11/15/16		1,015,000		1,045,450
				1,323,550
Household Products/Wares (0.4%)
Consumer Products-Miscellaneous (0.4%)
American Greetings Corp.
7.375% 06/01/16		190,000		181,450
Pharmaceuticals (1.3%)
Medical-Drugs (0.5%)
Elan Finance PLC
8.875% 12/01/13		225,000		219,375
Pharmacy Services (0.8%)
Omnicare, Inc.
6.750% 12/15/13		410,000		381,300
				600,675
				4,761,098
Energy (14.9%)
Coal (2.5%)
Coal (2.5%)
Arch Western Finance LLC
6.750% 07/01/13		475,000		473,812
Massey Energy Co.
6.875% 12/15/13		200,000		195,750
Peabody Energy Corp.
6.875% 03/15/13		455,000		459,550
				1,129,112
Oil & Gas (8.6%)
Oil & Gas Drilling (0.7%)
Pride International, Inc.
7.375% 07/15/14		335,000		337,513
Oil Companies-Exploration & Production (7.3%)
Chesapeake Energy Corp.
6.375% 06/15/15		700,000		661,500

See Accompanying Notes to Financial Statements.

56

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Oil Companies-Exploration & Production (continued)
Cimarex Energy Co.
7.125% 05/01/17	$	210,000	$	206,850
Compton Petroleum Corp.
7.625% 12/01/13		320,000		312,000
KCS Energy, Inc.
7.125% 04/01/12		225,000		216,000
Newfield Exploration Co.
6.625% 09/01/14		345,000		326,025
6.625% 04/15/16		95,000		88,588
OPTI Canada, Inc.
8.250% 12/15/14		440,000		443,300
PetroHawk Energy Corp.
7.875% 06/01/15 (b)		115,000		111,262
Pioneer Natural Resources Co.
5.875% 07/15/16		225,000		201,771
Quicksilver Resources, Inc.
7.125% 04/01/16		350,000		301,875
Range Resources Corp.
7.500% 05/15/16		155,000		151,512
Southwestern Energy Co.
7.500% 02/01/18 (b)		295,000		302,375
				3,323,058
Oil Refining & Marketing (0.6%)
Tesoro Corp.
6.625% 11/01/15		295,000		259,600
				3,920,171
Pipelines (3.8%)
Pipelines (3.8%)
Atlas Pipeline Partners LP
8.125% 12/15/15		255,000		249,263
Colorado Interstate Gas Co.
6.800% 11/15/15		116,000		118,442
El Paso Corp.
6.875% 06/15/14		430,000		428,969
7.250% 06/01/18		175,000		173,250
El Paso Performance-Linked Trust
7.750% 07/15/11 (b)		110,000		111,312
Kinder Morgan Finance Co. ULC
5.700% 01/05/16		325,000		299,406
MarkWest Energy Partners LP
6.875% 11/01/14		415,000		386,987
				1,767,629
				6,816,912

See Accompanying Notes to Financial Statements.

57

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Financials (5.1%)
Capital Markets (2.0%)
Investment Management/Advisor Service (2.0%)
Nuveen Investments Bank Debt Term Loan
5.460% 11/13/14 (c)(d)	$	453,564	$	418,413
5.483% 11/13/14 (c)(d)		518,359		478,186
Nuveen Investments Bank Debt Term Loan II
5.463% 11/13/14 (c)(d)		25,578		23,595
				920,194
Diversified Financial Services (1.5%)
Finance-Auto Loans (0.6%)
GMAC LLC
8.000% 11/01/31		515,000		288,576
Finance-Investment Banker/Broker (0.5%)
E*Trade Financial Corp.
7.375% 09/15/13		245,000		207,025
Special Purpose Entity (0.4%)
Goldman Sachs Capital II
5.793% 12/29/49 (c)		300,000		198,554
				694,155
Insurance (0.6%)
Property/Casualty Insurance (0.6%)
Crum & Forster Holdings Corp.
7.750% 05/01/17		290,000		267,887
Real Estate Investment Trusts (REITs) (1.0%)
REITS-Hotels (1.0%)
Host Marriott LP
6.375% 03/15/15		530,000		461,100
				2,343,336
Industrials (15.6%)
Aerospace & Defense (2.3%)
Aerospace/Defense-Equipment (0.9%)
BE Aerospace, Inc.
8.500% 07/01/18		130,000		134,225
DRS Technologies, Inc.
6.625% 02/01/16		290,000		292,900
				427,125
Electronics-Military (1.4%)
L-3 Communications Corp.
5.875% 01/15/15		200,000		185,500
6.375% 10/15/15		465,000		437,100
				622,600
				1,049,725

See Accompanying Notes to Financial Statements.

58

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Electrical Components & Equipment (1.1%)
Wire & Cable Products (1.1%)
Belden, Inc.
7.000% 03/15/17	$	265,000	$	251,088
General Cable Corp.
5.166% 04/01/15 (c)		145,000		127,600
7.125% 04/01/17		145,000		137,025
				515,713
Electronics (0.6%)
Electronic Components-Miscellaneous (0.6%)
Flextronics International Ltd.
6.250% 11/15/14		300,000		277,500
Environmental Control (1.2%)
Non-Hazardous Waste Disposal (1.2%)
Allied Waste North America, Inc.
7.125% 05/15/16		580,000		562,600
Machinery-Construction & Mining (0.9%)
Machinery-Construction & Mining (0.9%)
Terex Corp.
8.000% 11/15/17		430,000		420,325
Machinery-Diversified (1.1%)
Machinery-General Industry (1.1%)
Manitowoc Co., Inc.
7.125% 11/01/13		240,000		225,000
Westinghouse Air Brake Technologies Corp.
6.875% 07/31/13		250,000		248,125
				473,125
Miscellaneous Manufacturing (2.2%)
Diversified Manufacturing Operators (1.6%)
Bombardier, Inc.
6.300% 05/01/14 (b)		465,000		441,750
Koppers Holdings, Inc.
(e) 11/15/14 (9.875% 11/15/09)		75,000		67,500
Trinity Industries, Inc.
6.500% 03/15/14		255,000		244,162
				753,412
Miscellaneous Manufacturing (0.6%)
American Railcar Industries, Inc.
7.500% 03/01/14		275,000		254,375
				1,007,787

See Accompanying Notes to Financial Statements.

59

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Packaging & Containers (2.7%)
Containers-Metal/Glass (2.7%)
Crown Americas LLC & Crown Americas Capital Corp.
7.750% 11/15/15	$	370,000	$	382,025
Owens-Illinois, Inc.
7.500% 05/15/10		420,000		427,350
Silgan Holdings, Inc.
6.750% 11/15/13		460,000		436,425
				1,245,800
Transportation (3.5%)
Transportation-Marine (2.1%)
Navios Maritime Holdings, Inc.
9.500% 12/15/14		200,000		195,500
Stena AB
7.500% 11/01/13		460,000		450,800
Teekay Corp.
8.875% 07/15/11		310,000		325,500
				971,800
Transportation-Railroad (0.5%)
Kansas City Southern de Mexico SA de CV
7.375% 06/01/14		220,000		211,750
Transportation-Services (0.9%)
Bristow Group, Inc.
7.500% 09/15/17		400,000		394,000
				1,577,550
				7,130,125
Technology (1.0%)
Semiconductors (1.0%)
Electronic Components-Miscellaneous (0.4%)
NXP BV/NXP Funding LLC
7.875% 10/15/14		185,000		154,012
Electronic Components-Semiconductors (0.6%)
Freescale Semiconductor, Inc.
PIK,
9.125% 12/15/14		355,000		287,550
				441,562
Utilities (11.7%)
Electric (11.7%)
Electric-Generation (4.6%)
AES Corp.
7.750% 03/01/14		405,000		401,963
8.000% 10/15/17		265,000		261,025
Edison Mission Energy
7.000% 05/15/17		935,000		883,575

See Accompanying Notes to Financial Statements.

60

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Corporate Fixed-Income Bonds & Notes (continued)
Electric-Generation (continued)
Intergen NV
9.000% 06/30/17 (b)	$	525,000	$	535,500
				2,082,063
Electric-Integrated (3.0%)
CMS Energy Corp.
6.875% 12/15/15		185,000		183,341
Ipalco Enterprises, Inc.
7.250% 04/01/16 (b)		240,000		240,600
TXU Energy Co. LLC
5.961% 10/10/14 (c)(d)		120,714		113,428
6.234% 10/10/14 (c)(d)		731,429		687,282
6.478% 10/10/14 (c)(d)		140,357		131,886
				1,356,537
Independent Power Producer (4.1%)
Dynegy Holdings, Inc.
7.125% 05/15/18		330,000		289,575
7.750% 06/01/19		135,000		124,200
Mirant North America LLC
7.375% 12/31/13		490,000		490,000
NRG Energy, Inc.
7.250% 02/01/14		85,000		82,875
7.375% 02/01/16		380,000		368,600
7.375% 01/15/17		45,000		43,425
NSG Holdings LLC/NSG Holdings, Inc.
7.750% 12/15/25 (b)		415,000		406,770
Reliant Energy, Inc.
7.875% 06/15/17		85,000		82,025
				1,887,400
				5,326,000
Total Corporate Fixed-Income Bonds & Notes (Cost of $44,227,308)				41,261,079
Municipal Bond (0.5%)
Virginia (0.5%)
Tobacco (0.5%)
VA Tobacco Settlement Financing Corp.
Series 2007 A1,
6.706% 06/01/46		275,000		221,622
Total Municipal Bond (Cost of $274,973)				221,622

See Accompanying Notes to Financial Statements.

61

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par (a)		Value
Short-Term Obligation (7.9%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 2.070%, collateralized by a U.S. Government Agency Obligation maturing 05/06/10, market value $3,717,540 (repurchase proceeds $3,640,209)	$	3,640,000	$	3,640,000
Total Short-Term Obligation (Cost of $3,640,000)				3,640,000
Total Investments (98.7%) (Cost of $48,142,281) (f)				45,122,701
Other Assets & Liabilities, Net (1.3%)				574,615
Net Assets (100.0%)			$	45,697,316

Notes to Schedule of Investments:

(a)  Principal amount is stated in U.S. dollars unless otherwise noted.

(b)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2008, these securities, which are not illiquid, except for those in the following table, amounted to $5,051,544, which represents 11.1% of net assets.

Security	Acquisition Date		Par		Cost		Value
Seminole Indian Tribe of Florida 7.804% 10/01/20		09/26/07	$	260,000	$	263,643	$	251,332

(c)  The interest rate shown on floating rate or variable rate securities reflects the rate at July 31, 2008.

(d)  Loan participation agreement.

(e)  Step bond. This security is currently not paying coupon. Shown parenthetically is the next coupon rate to be paid and the date the security will begin accruing at this rate.

(f)  Cost for federal income tax purposes is $48,332,319.

At July 31, 2008, the asset allocation of the Fund was as follows:

Asset Allocation (Unaudited)	% of Net Assets
Industrials		15.6
Energy		14.9
Communications		13.2
Utilities		11.7
Consumer Non-Cyclical		10.4
Basic Materials		9.6
Consumer Cyclical		8.8
Financials		5.1
Technology		1.0
Municipal Bond		0.5
		90.8
Short-Term Obligation		7.9
Other Assets & Liabilities, Net		1.3
		100.0

See Accompanying Notes to Financial Statements.

62

CMG HIGH YIELD FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

Forward foreign currency exchange contract outstanding on July 31, 2008 is:

Foreign Currency Contract to Sell	Value		Aggregate Face Value		Settlement Date		Unrealized Appreciation
EUR	$	219,618	$	220,390		08/28/08	$	772

Acronym	Name
EUR	Euro
PIK	Payment-In-Kind

See Accompanying Notes to Financial Statements.

63

STATEMENTS OF ASSETS AND LIABILITIES

July 31, 2008

	CMG Core Bond Fund			CMG Short Term Bond Fund			CMG Ultra Short Term Bond Fund			CMG High Yield Fund
ASSETS:
Unaffiliated investments, at identified cost (including repurchase agreements)	$	99,655,794		$	215,751,946		$	109,728,578		$	48,142,281
Affiliated investment, at identified cost		-			589,559			-			-
Total investments, at identified cost		99,655,794			216,341,505			109,728,578			48,142,281
Unaffiliated investments, at value (including securities on loan of   $10,809,928, $6,214,200,   $10,068,552 and $-, respectively)	$	98,307,826		$	214,367,397		$	106,567,025		$	45,122,701
Affiliated investment, at value		-			583,174			-			-
Total investments, at value		98,307,826			214,950,571			106,567,025			45,122,701
Cash		326			1,042			-			2,776
Unrealized appreciation on foreign forward currency contracts		-			-			-			772
Receivable for:
Investments sold		478,381			-			1,099,093			203,427
Investments sold on a delayed delivery basis		1,732,981			-			-			-
Capital stock sold		-			844,029			-			-
Interest		643,047			1,464,249			552,482			778,069
Securities lending		5,695			3,273			4,201			-
Foreign tax reclaim		-			2,032			945			-
Expense reimbursement due from investment advisor		7,956			9,799			11,828			7,347
Trustees' deferred compensation plan		11,195			13,579			11,320			17,158
Total Assets		101,187,407			217,288,574			108,246,894			46,132,250
LIABILITIES:
Collateral on securities loaned		11,032,313			6,312,979			10,256,013			-
Payable to custodian bank		-			-			1,019,261			-
Payable for:
Investments purchased		415,937			2,433,428			-			221,252
Investments purchased on a delayed delivery basis		1,288,959			2,122,553			-			-
Capital stock redeemed		-			10,000			-			-
Distributions		250,034			763,400			299,113			134,258
Investment advisory fee		19,913			44,039			19,498			15,403
Trustees' fees		1,651			1,925			2,314			2,954
Audit fee		38,161			37,084			36,362			41,610
Interest expense		219			-			-			-
Trustees' deferred compensation plan		11,195			13,579			11,320			17,158
Other liabilities		4,739			6,132			7,995			2,299
Total liabilities		13,063,121			11,745,119			11,651,876			434,934
NET ASSETS	$	88,124,286		$	205,543,455		$	96,595,018		$	45,697,316
NET ASSETS CONSIST OF:
Paid-in capital	$	92,718,407		$	212,283,114		$	103,478,844		$	65,463,300
Overdistributed net investment income		(15,938	)		(277,393	)		(70,674	)		(138,303	)
Accumulated net realized loss		(3,230,215	)		(5,071,332	)		(3,651,599	)		(16,608,858	)
Net unrealized appreciation (depreciation) on:
Investments		(1,347,968	)		(1,390,934	)		(3,161,553	)		(3,019,580	)
Foreign currency translations		-			-			-			757
NET ASSETS	$	88,124,286		$	205,543,455		$	96,595,018		$	45,697,316
Shares of capital stock outstanding		8,922,994			17,880,575			10,395,762			6,382,053
Net asset value, offering and redemption price per share	$	9.88		$	11.50		$	9.29		$	7.16

See Accompanying Notes to Financial Statements.
64

STATEMENTS OF OPERATIONS

For the Year Ended July 31, 2008

	CMG Core Bond Fund			CMG Short Term Bond Fund			CMG Ultra Short Term Bond Fund			CMG High Yield Fund
NET INVESTMENT INCOME:
Investment income:
Interest	$	4,580,636		$	8,513,358		$	5,828,462		$	3,951,910
Interest from affiliate		-			24,750			-			-
Securities lending		110,577			58,228			57,368			-
Foreign withholding tax		-			-			(2,539	)		-
Total investment income		4,691,213			8,596,336			5,883,291			3,951,910
Expenses:
Investment advisory fee		220,112			419,068			304,921			213,146
Trustees' fees		14,884			16,998			17,066			17,218
Audit fee		46,231			46,316			51,470			47,500
Other expenses		13,303			19,160			20,036			9,931
Expenses before interest expense		294,530			501,542			393,493			287,795
Interest expense		764			-			-			1,125
Total expenses		295,294			501,542			393,493			288,920
Fees and expenses waived or reimbursed by investment  advisor		(74,418	)		(82,474	)		(88,572	)		(74,649	)
Net expenses		220,876			419,068			304,921			214,271
Net investment income		4,470,337			8,177,268			5,578,370			3,737,639
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY AND FUTURES CONTRACTS:
Net realized gain (loss) on:
Investments		(998,360	)		(138,271	)		(1,876,094	)		(2,383,454	)
Foreign currency transactions		-			-			-			(27,127	)
Futures contracts		-			176,662			-			-
Net realized gain (loss)		(998,360	)		38,391			(1,876,094	)		(2,410,581	)
Net change in unrealized appreciation (depreciation) on:
Investments		(458,717	)		(1,041,658	)		(2,191,777	)		264,596
Foreign currency translations		-			-			-			(1,069	)
Futures contracts		-			11,254			-			-
Net change in unrealized appreciation (depreciation)		(458,717	)		(1,030,404	)		(2,191,777	)		263,527
Net loss		(1,457,077	)		(992,013	)		(4,067,871	)		(2,147,054	)
NET INCREASE RESULTING FROM OPERATIONS	$	3,013,260		$	7,185,255		$	1,510,499		$	1,590,585

See Accompanying Notes to Financial Statements.
65

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Core Bond Fund						CMG Short Term Bond Fund
	Year Ended July 31,						Year Ended July 31,
	2008			2007			2008			2007
Operations:
Net investment income	$	4,470,337		$	2,834,176		$	8,177,268		$	4,821,539
Net realized gain (loss) on investments and futures   contracts		(998,360	)		(370,838	)		38,391			(190,355	)
Net change in unrealized appreciation (depreciation) on   investments and futures  contracts		(458,717	)		199,022			(1,030,404	)		414,582
Net increase resulting from operations		3,013,260			2,662,360			7,185,255			5,045,766
Distributions to shareholders:
From net investment income		(4,651,794	)		(2,884,251	)		(8,705,705	)		(5,163,909	)
Share transactions:
Subscriptions		40,729,229			22,467,688			127,068,209			84,402,331
Distributions reinvested		1,588,459			1,175,961			1,341,771			2,006,462
Redemptions		(20,228,185	)		(11,929,545	)		(59,777,866	)		(31,843,019	)
Net increase from share transactions		22,089,503			11,714,104			68,632,114			54,565,774
Total increase in net assets		20,450,969			11,492,213			67,111,664			54,447,631
NET ASSETS:
Beginning of period		67,673,317			56,181,104			138,431,791			83,984,160
End of period	$	88,124,286		$	67,673,317		$	205,543,455		$	138,431,791
Undistributed (overdistributed) net investment income, at  end of period	$	(15,938	)	$	19,688		$	(277,393	)	$	(65,836	)
Changes in shares:
Subscriptions		4,024,573			2,216,484			10,954,738			7,273,049
Issued for distributions reinvested		156,722			115,624			115,417			172,759
Redemptions		(2,008,322	)		(1,172,762	)		(5,139,763	)		(2,741,444	)
Net increase		2,172,973			1,159,346			5,930,392			4,704,364

See Accompanying Notes to Financial Statements.
66

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Ultra Short Term Bond Fund						CMG High Yield Fund
	Year Ended July 31,						Year Ended July 31,
	2008			2007			2008			2007
Operations:
Net investment income	$	5,578,370		$	5,601,789		$	3,737,639		$	5,624,962
Net realized loss on investments and foreign currency   transactions		(1,876,094	)		(105,723	)		(2,410,581	)		(699,567	)
Net change in unrealized appreciation (depreciation) on   investments and foreign   currency translations		(2,191,777	)		(495,504	)		263,527			427,881
Net increase resulting from operations		1,510,499			5,000,562			1,590,585			5,353,276
Distributions to shareholders:
From net investment income		(5,705,300	)		(5,585,102	)		(3,778,512	)		(5,912,719	)
Share transactions:
Subscriptions		40,228,402			83,925,690			12,887,905			25,687,068
Distributions reinvested		835,828			1,714,428			1,950,122			3,327,328
Redemptions		(93,067,069	)		(22,126,272	)		(29,125,959	)		(62,401,951	)
Net increase (decrease) from share transactions		(52,002,839	)		63,513,846			(14,287,932	)		(33,387,555	)
Total increase (decrease) in net assets		(56,197,640	)		62,929,306			(16,475,859	)		(33,946,998	)
NET ASSETS:
Beginning of period		152,792,658			89,863,352			62,173,175			96,120,173
End of period	$	96,595,018		$	152,792,658		$	45,697,316		$	62,173,175
Overdistributed net investment income, at end of period	$	(70,674	)	$	(102,958	)	$	(138,303	)	$	(334,330	)
Changes in shares:
Subscriptions		4,274,964			8,701,439			1,692,130			3,272,380
Distributions reinvested		88,630			177,745			261,129			425,081
Redemptions		(9,893,831	)		(2,294,253	)		(3,886,936	)		(7,930,977	)
Net increase (decrease)		(5,530,237	)		6,584,931			(1,933,677	)		(4,233,516	)

See Accompanying Notes to Financial Statements.
67

NOTES TO FINANCIAL STATEMENTS

July 31, 2008

Note 1.  Organization

Columbia Funds Institutional Trust (the "Trust") is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Information presented in these financial statements pertains only to the following diversified funds (individually referred to as a "Fund", collectively referred to as the "Funds"):

  CMG Core Bond Fund
  CMG Short Term Bond Fund
  CMG Ultra Short Term Bond Fund
  CMG High Yield Fund

Shares in the Funds are available for purchase by institutional investors investing directly in the Funds, by institutional investors investing in the Funds as an advisory client of Columbia Management Advisors, LLC ("Columbia"), the Funds' investment advisor, and by institutional investors investing in the Funds as an advisory client of U.S. Trust, Bank of America Private Wealth Management. Please see the Funds' prospectuses for further details including applicable investment minimums.

Investment objectives. CMG Core Bond Fund seeks to provide investors a high level of current income consistent with capital preservation. CMG Short Term Bond Fund seeks to provide investors a high level of current income consistent with a high degree of stability of principal. CMG Ultra Short Term Bond Fund seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital. CMG High Yield Fund seeks a high level of current income. Capital appreciation is a secondary objective when consistent with a high level of current income.

Fund shares. The Trust may issue an unlimited number of shares of beneficial interest which are offered continuously at net asset value.

Note 2.  Significant accounting policies

The preparation of financial statements in accordance with accounting principles generally accepted in the UnitedStates of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.

Security valuation. Debt securities generally are valued by pricing services approved by the Trust's Board of Trustees, based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available are valued at an over-the-counter or exchange bid quotation. Certain debt securities, which tend to be more thinly traded and of lesser quality, are priced based on fundamental analysis of the financial condition of the issuer and the estimated value of any collateral. Valuations developed through pricing techniques may vary from the actual amounts realized upon sale of the securities, and the potential variation may be greater for those securities valued using fundamental analysis.

68

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Forward foreign currency exchange contracts are valued at the prevailing forward exchange rate of the underlying currencies.

Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the NewYork Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Funds' shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Occasionally, events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees.

Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at fair value, such value is likely to be different from the last quoted market price for the security.

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued. SFAS 157 is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is evaluating the impact the application of SFAS 157 will have on each Fund's financial statement disclosures.

Security transactions. Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities–an amendment of FASB Statement No. 133 ("SFAS 161"), was issued. SFAS 161 is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires additional discussion about the reporting entity's derivative instruments and hedging activities, by providing for qualitative disclosures about the objectives and strategies for using derivatives, quantitative data about the fair value of and gains and losses on derivative contracts, and details of credit-risk-related contingent features in their hedged positions. Management is evaluating the impact the application of SFAS 161 will have on the Funds' financial statement disclosures.

Futures contracts. The Funds may invest in futures contracts for both hedging and non-hedging purposes, including, for example, to seek to enhance returns or as a substitute for a position in an underlying asset.

The use of futures contracts involves certain risks, which include: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading

69

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

hours, or the temporary absence of a liquid market, for either the instruments or the underlying securities, or (3) an inaccurate prediction by Columbia of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in the Funds' Statements of Assets and Liabilities at any given time.

Upon entering into a futures contract, a Fund pledges cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by a Fund equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. A Fund recognizes a realized gain or loss when the contract is closed or expires.

Forward foreign currency exchange contracts. Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contract. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds may also enter into these contracts to hedge certain other foreign currency denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are generally used to hedge the Funds' investments against currency fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become realized at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Funds' portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Funds could also be exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.

Repurchase agreements. Each Fund may engage in repurchase agreement transactions with institutions that Columbia has determined are creditworthy. Each Fund, through its custodian, receives delivery of the underlying securities collateralizing a repurchase agreement. Columbia is responsible for determining that the collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights.

Loan participations and commitments. CMG High Yield Fund may invest in loan participations. When the CMGHigh Yield Fund purchases a loan participation, the CMG High Yield Fund typically enters into a contractual relationship with the lender or third party selling such participation ("Selling Participant"), but not the borrower. However, the CMG High Yield Fund assumes the credit risk of the borrower, Selling Participant and any other persons interpositioned between the CMG High Yield Fund and the borrower. The CMG High Yield Fund may not directly benefit from the collateral supporting the senior loan which it has purchased from the Selling Participant.

Mortgage dollar roll transactions. The Funds may enter into mortgage "dollar rolls" in which the Funds sell securities for delivery in the current month and simultaneously contract with the same counterparty to repurchase similar (same type, coupon and maturity) but not identical securities on a specified future date not exceeding 120 days. During the roll period, the Funds lose the right to receive principal and interest paid on the securities sold. However, the Funds would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase (often referred to as the "drop") or fee income plus the interest earned on the cash proceeds of the securities sold until the settlement date of the forward purchase. Unless such benefits exceed the

70

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

income, capital appreciation and gain or loss due to mortgage prepayments that would have been realized on the securities sold as part of the mortgage dollar roll, the use of this technique will diminish the investment performance of the Funds compared with what such performance would have been without the use of mortgage dollar rolls. All cash proceeds will be invested in instruments that are permissible investments for the Funds. The Funds will hold and maintain in a segregated account until the settlement date, cash or liquid securities in an amount equal to the forward purchase price.

The Funds' policy is to record the components of mortgage dollar rolls using "to be announced" mortgage-backed securities. For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions, one involving the purchase of a security and a separate transaction involving a sale. The Funds do not currently enter into mortgage dollar rolls that are accounted for as financing transactions.

Mortgage dollar rolls involve certain risks. If the broker-dealer to whom the Funds sell the securities becomes insolvent, the Funds' right to purchase or repurchase the mortgage-related securities may be restricted and the instruments which the Funds are required to repurchase may be worth less than the instruments which the Funds originally held. Successful use of mortgage dollar rolls may depend upon the investment advisor's ability to predict correctly interest rates and mortgage prepayments. For these reasons, there is no assurance that mortgage dollar rolls can be successfully employed.

Delayed delivery securities. Each Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes the Funds to subsequently invest at less advantageous prices. Each Fund holds until the settlement date, in a segregated account, cash or liquid securities in an amount equal to the delayed delivery commitment.

Treasury inflation protected securities. The Funds may invest in treasury inflation protected securities ("TIPS"). The principal amount of TIPS is adjusted periodically for inflation based on a monthly published index. Interest payments are based on the inflation-adjusted principal at the time the interest is paid. These adjustments are recorded as interest income on the Statements of Operations.

Stripped securities. Stripped mortgage-backed securities are derivative multi-class mortgage securities structured so that one class receives most, if not all, of the principal from the underlying mortgage assets, while the other class receives most, if not all, of the interest and the remainder of the principal. If the underlying mortgage assets experiencegreater than anticipated prepayments of principal, a Fund may fail to fully recoup its initial investment in an interest-only security. The market value of these securities can be extremely volatile in response to changes in interest rates. Credit risk reflects the risk that a Fund may not receive all or part of its principal because the issuer or credit enhancer has defaulted on its obligation.

Income recognition. Interest income is recorded on an accrual basis and includes accretion of discounts, amortization of premiums and paydown gains and losses, net of any non-reclaimable tax withholding on foreign securities. Fee income attributable to mortgage dollar roll transactions is recorded on the accrual basis over the term of the transaction. The value of additional securities received as an income payment is recorded as income and as the cost basis of such securities. Corporate actions and dividend income are recorded on the ex-date except for certain foreign securities which are recorded as soon after the ex-date as the Funds become aware of such, net of any non-reclaimable tax withholdings.

71

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Foreign currency transactions. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.

For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments on the Statements of Operations.

Expenses. General expenses of the Trust are allocated to the Funds and the other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund are charged to such Fund.

Federal income tax status. Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Distributions to shareholders. Dividends from net investment income are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which may differ from GAAP.

Indemnification. In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund's maximum exposure under these arrangements is unknown because this would involve future claims against a Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these representations, warranties and indemnities to be minimal.

Note 3.  Federal tax information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds' capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

72

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

For the year ended July 31, 2008, permanent book and tax basis differences resulting primarily from differing treatments for distribution reclassifications, expired capital loss carryforwards, foreign currency transactions, amortization/accretion adjustments and paydown gain/loss reclassifications were identified and reclassified among the components of the Funds' net assets asfollows:

	Overdistributed Net Investment Income		Accumulated Net Realized Loss			Paid-In Capital
CMG Core Bond Fund	$	145,831	$	(145,830	)	$	(1	)
CMG Short Term Bond Fund		316,880		220,667			(537,547	)
CMG Ultra Short Term Bond Fund		159,214		(159,213	)		(1	)
CMG High Yield Fund		236,900		(236,900	)		-

Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the years ended July 31, 2008 and July 31, 2007 was as follows:

	July 31, 2008
	Ordinary Income*		Long-term Capital Gains
CMG Core Bond Fund	$	4,651,794	$	-
CMG Short Term Bond Fund		8,705,705		-
CMG Ultra Short Term Bond Fund		5,705,300		-
CMG High Yield Fund		3,778,512		-
	July 31, 2007
	Ordinary Income*		Long-term Capital Gains
CMG Core Bond Fund	$	2,884,251	$	-
CMG Short Term Bond Fund		5,163,909		-
CMG Ultra Short Term Bond Fund		5,585,102		-
CMG High Yield Fund		5,912,719		-

*For tax purposes short-term capital gains distributions, if any, are considered ordinary income distributions.

73

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

As of July 31, 2008, the components of distributable earnings on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-term Capital Gains		Net Unrealized Depreciation*
CMG Core Bond Fund	$	281,927	$	-	$	(1,488,461	)
CMG Short Term Bond Fund		855,352		-		(1,809,994	)
CMG Ultra Short Term Bond Fund		438,845		-		(3,303,862	)
CMG High Yield Fund		198,530		-		(3,209,618	)

*The differences between book-basis and tax-basis net unrealized depreciation are primarily due to deferral of losses from wash sales and amortization/accretion adjustments.

Unrealized appreciation and depreciation at July 31, 2008, based on cost of investments for federal income tax purposes, were:

	Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
CMG Core Bond Fund	$	174,711	$	(1,663,172	)	$	(1,488,461	)
CMG Short Term Bond Fund		1,015,093		(2,825,087	)		(1,809,994	)
CMG Ultra Short Term Bond Fund		313,711		(3,617,573	)		(3,303,862	)
CMG High Yield Fund		177,808		(3,387,426	)		(3,209,618	)

The following capital loss carryforwards, determined as of July 31, 2008, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

	Year of Expiration
	2009		2010		2012		2013		2014		2015		2016		Total
CMG Core Bond Fund	$	-	$	-	$	-	$	-	$	304,526	$	1,461,747	$	399,785	$	2,166,058
CMG Short Term Bond Fund		-		2,365,257		19,156		25,391		989,127		899,128		650,370		4,948,429
CMG Ultra Short Term Bond Fund		-		-		29,640		47,961		627,248		685,751		213,699		1,604,299
CMG High Yield Fund		6,776,032		2,987,019		-		-		-		3,691,106		835,787		14,289,944

Utilization of the capital loss carryforwards in the above table could be subject to limitations imposed by the Internal Revenue Code.

Capital loss carryforwards of $537,548 for CMG Short Term Bond Fund expired during the year ended July 31, 2008. Expired capital loss carryforwards are recorded as a reduction of paid-in capital.

74

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Under current tax rules, certain capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of July 31, 2008, post-October capital losses attributed to security transactions were deferred to August 1, 2008, as follows:

	Capital Losses
CMG Core Bond Fund	$	958,625
CMG Short Term Bond Fund		57,876
CMG Ultra Short Term Bond Fund		2,047,300
CMG High Yield Fund		2,310,873

The Funds adopted Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 ("FIN 48") effective January 31, 2008. FIN 48 requires management to determine whether a tax position of the Funds is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 was applied to all existing tax positions upon initial adoption. Management has evaluated the known implications of FIN 48 on its computation of net assets for each Fund. As a result of this evaluation, management has concluded that FIN 48 did not have any effect on the Funds' financial statements and no cumulative effect adjustments were recorded. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Note 4.  Fees and compensation paid to affiliates

Investment advisory fee. Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory, administrative and other services to the Funds. In rendering investment advisory services to the Funds, Columbia may use the portfolio management and research resources of Columbia Management Pte. Ltd., an affiliate of Columbia. Each Fund's investment advisory fee is a unified fee. Columbia, out of the unified fee it receives from the Funds, pays accounting fees, legal fees, transfer agent fees, custody fees, expenses of the Chief Compliance Officer, the commitment fee for the line of credit (see Note 6) and miscellaneous expenses of the Funds. The unified fee does not include brokerage fees, taxes, fees and expenses of the independent Trustees (including legal counsel fees), audit fees, interest expense associated with any borrowings by the Funds or extraordinary expenses, if any. The unified fees are paid monthly to Columbia based on each Fund's average daily net assets at the following annual rates:

CMG Core Bond Fund	0.25	%
CMG Short Term Bond Fund	0.25	%
CMG Ultra Short Term Bond Fund	0.25	%
CMG High Yield Fund	0.40	%

Pricing and bookkeeping fees. The Funds have entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank & Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Funds. The Funds have also entered into an Accounting

75

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Funds.

The Funds have entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street. The pricing and bookkeeping fees for each Fund are payable by Columbia.

Transfer agent fee. Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. The transfer agent fees for the Funds are payable by Columbia. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Funds or Columbia.

The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds.

Fee waivers and expense reimbursements. Columbia has contractually agreed to waive its management fee and to the extent necessary bear other expenses of each Fund through March 1, 2009, so that the expenses incurred by the Funds will not exceed the following annual rates (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts, if any), after giving effect to any balance credits from the Funds' custodian, based on each Fund's average daily net assets:

CMG Core Bond Fund	0.25	%
CMG Short Term Bond Fund	0.25	%
CMG Ultra Short Term Bond Fund	0.25	%
CMG High Yield Fund	0.40	%

There is no guarantee that these arrangements will continue after March 1, 2009.

Fees paid to officers and trustees. All officers of the Funds are employees of Columbia or its affiliates and, with the exception of the Funds' Chief Compliance Officer, receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The Funds, along with other affiliated funds, are charged their pro-rata share of the expenses associated with the Chief Compliance Officer. The expenses of the Chief Compliance Officer charged to each Fund are payable by Columbia.

The Trust's eligible Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets.

76

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Note 5.  Portfolio information

For the year ended July 31, 2008, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were as follows:

	U.S. Government Securities				Other Investment Securities
	Purchases		Sales		Purchases		Sales
CMG Core Bond Fund	$	217,322,469	$	199,836,259	$	36,517,676	$	30,422,910
CMG Short Term Bond Fund		60,662,677		38,126,807		100,486,659		37,850,525
CMG Ultra Short Term Bond Fund		14,201,456		24,014,484		56,465,641		49,532,292
CMG High Yield Fund		-		-		18,446,381		31,867,740

Note 6.  Line of credit

The Funds and other affiliated funds participate in a $350,000,000 committed, unsecured revolving line of credit and a$150,000,000 uncommitted, unsecured line of credit, both provided by State Street. Borrowings are available for short-term liquidity or temporary or emergency purposes.

Interest on the committed line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is accrued and apportioned among the participating funds pro rata based on their relative net assets. Effective September 17, 2007, interest on the uncommitted line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.375%. Prior to September 17, 2007, interest on the uncommitted line of credit was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. State Street charges an annual operations agency fee of $40,000 for the committed line of credit and may charge an annual administration fee of $15,000 for the uncommitted line of credit. The commitment fee, the operations agency fee and the administration fee are accrued and apportioned among the participating funds pro rata based on their relative net assets. The commitment fee, the operations agency fee and the administration fee are included in the unified fee for the Funds.

For the year ended July 31, 2008, the average daily loan balance outstanding on days where borrowing existed, and the weighted average interest rate of each Fund that borrowed under these arrangements were as follows:

	Average Borrowings		Weighted Average Interest Rates
CMG Core Bond Fund	$	2,200,000		2.488	%
CMG High Yield Bond		1,000,000		4.234

Note 7.  Securities lending

Each Fund may lend their securities to certain approved brokers, dealers and other financial institutions. Each loan is collateralized by cash, in an amount at least equal to the market value of the securities loaned plus accrued income from the investment of collateral. The market value of the loaned securities is determined at the close of business of

77

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

the Funds and any additional required collateral is delivered to the Funds on the next business day. The collateral received is invested and the income generated by the investment of the collateral, net of any fees remitted to State Street as the lending agent and borrower rebates, is paid to the Funds. Generally, in the event of borrower default, the Funds have the right to use the collateral to offset any losses incurred. In the event the Funds are delayed or prevented from exercising their right to dispose of the collateral, there may be a potential loss to the Funds. The Funds bear the risk of loss with respect to the investment of collateral.

Note 8.  Shares of beneficial interest

As of July 31, 2008, shares of the Funds were beneficially owned by participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion. The number of accounts and the percentages of shares of beneficial interest outstanding held therein were as follows:

	Number of Shareholders		% of Shares Outstanding Held
CMG Core Bond Fund		1		90.0
CMG Short Term Bond Fund		1		95.0
CMG Ultra Short Term Bond Fund		1		100.0
CMG High Yield Fund		1		81.7

As of July 31, 2008, two of the Funds had shareholders that held greater than 5% of the shares outstanding of a Fund, over which BOA and/or any of its affiliates did not have investment discretion. The number of accounts and the percentages of shares of beneficial interest outstanding held therein were as follows:

	Number of Shareholders		% of Shares Outstanding Held
CMG Core Bond Fund		1		10.0
CMG High Yield Fund		1		8.5

Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds.

Note 9.  Significant risks and contingencies

Foreign securities risk. There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.

Investments in emerging market countries are subject to additional risk. The risk of foreign investments is typically increased in less developed countries. These countries are also more likely to experience high levels of inflation, deflation or currency devaluation which could hurt their economies and securities markets.

Asset-backed securities risk. The value of asset-backed securities may be affected by changes in interest rates, the quality of underlying assets or the market's assessment thereof, the creditworthiness of the servicer for the underlying

78

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

assets, information concerning the originator of the underlying assets, or the creditworthiness or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments, or other credit enhancement.

Mortgage-backed securities risk. The value of the mortgage-backed securities may be affected by, changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgages, the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements or the quality of underlying assets or the market's assessment thereof. Mortgage-backed securities are subject to prepayment risk, which is the possibility that the underlying mortgage may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Funds to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of mortgage-backed securities may be difficult to predict and may result in greater volatility.

High-yield securities risk. Investing in high-yield securities may involve greater credit risk and considerations not typically associated with investing in U.S. Government bonds and other higher quality fixed income securities. These securities are non-investment grade securities, often referred to as "junk" bonds. Economic downturns may disrupt the high yield market and impair the ability of issuers to repay principal and interest. Also, an increase in interest rates would likely have an adverse impact on the value of such obligations. Moreover, high-yield securities may be less liquid to the extent that there is no established secondary market.

Sector focus risk. Certain Funds may focus their investments in certain sectors, subjecting them to greater risk than a fund that is less focused.

Legal proceedings. The Funds are not named as parties to any regulatory proceedings or litigation.

On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading.

Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions.

Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above is being distributed in accordance with a distribution plan that was developed by an independent distribution consultant and approved by the SEC on April 6, 2007. Distributions under the distribution plan began in late June 2007.

A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005.

79

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

In connection with the events described above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities.

On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law.

On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the United States District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of the class action claims pending against the Columbia Funds Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of 1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA were not dismissed.

On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that certain conduct, including market timing, entitled Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit was removed to federal court in Massachusetts and transferred to the MDL.

On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL described above, including the CDSC Lawsuit. The settlement is subject to court approval.

In 2004, the Columbia Funds' adviser and distributor and certain affiliated entities and individuals were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. Certain Columbia Funds were named as nominal defendants. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purposes. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and entered final judgment in favor of the defendants. The plaintiffs appealed to the United States Court of Appeals for the First Circuit on December 30, 2005. A stipulation and settlement agreement dated January 19, 2007 was filed in the First Circuit on February 14, 2007, with a joint stipulation of dismissal and motion for remand to obtain district court approval of the settlement. That joint motion was granted and the appeal was dismissed. On March 6, 2007, the case was remanded to the District Court. The settlement, approved by the District Court on September 18, 2007, became effective October 19, 2007. Pursuant to the settlement, the funds' adviser and/or its affiliates made certain payments, including plaintiffs' attorneys' fees and costs of notice to class members.

80

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Institutional Trust and the Shareholders of CMG Core Bond Fund, CMG Short Term Bond Fund, CMG Ultra Short Term Bond Fund and CMG High Yield Fund

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of CMG Core Bond Fund, CMG Short Term Bond Fund, CMG Ultra Short Term Bond Fund and CMG High Yield Fund (the "Funds") (each a series of Columbia Funds Institutional Trust) at July 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended, and their financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
September 19, 2008

81

Fund Governance

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in Columbia Funds Institutional Trust, 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. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years, Number of Portfolios in Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Independent Trustees
John D. Collins (Born 1938) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Retired. Consultant, KPMG, LLP (accounting and tax firm) from July 1999 to June 2000; Partner, KPMG, LLP from March 1962 to June 1999. Oversees 77, Mrs. Fields Famous Brands LLC (consumer products); Suburban Propane Partners, L.P.; and Montpelier Re (underwriting firm)
Rodman L. Drake (Born 1943) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Co-Founder of Baringo Capital LLC (private equity) since 2002; President, Continuation Investments Group, Inc. from 1997 to 2001. Oversees 77, Jackson Hewitt Tax Service Inc. (tax preparation services); Crystal Capital River Inc. (real estate investment trust); Student Loan Corporation (student loan provider); Celgene Corporation (global biotechnology company); Apex Silver Mines Ltd. (mining); and Hyperion Brookfield Total Return Fund, Inc. and Hyperion Brookfield Strategic Mortgage Income Fund, Inc. (exchange-traded funds)
Douglas A. Hacker (Born 1955) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1996)	Independent business executive since May 2006; Executive Vice President—Strategy of United Airlines (airline) from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 77, Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing)
Janet Langford Kelly (Born 1957) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1996)	Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel—Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University, from September 2004 to June 2006; Director, UAL Corporation (airline) from February 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer 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. Oversees 77, None
Charles R. Nelson (Born 1942) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1981)	Professor of Economics, University of Washington, since January 1976; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington, since September 1993; Director, Institute for Economic Research, University of Washington from September 2001 to June 2003; 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. Oversees 77, None

82

Fund Governance (continued)

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years, Number of Portfolios in Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Independent Trustees (continued)
John J. Neuhauser (Born 1943) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1985)	President, Saint Michael's College, since August 2007; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October 2005. Oversees 77, Liberty All-Star Equity Fund and Liberty All-Star Growth Fund, Inc. (closed-end funds)
Jonathan Piel (Born 1938) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Cable television producer and website designer; The Editor, Scientific American from 1984 to 1994; Vice President, Scientific American, Inc. from 1984 to 1994; Member, Advisory Board, Stone Age Institute, Bloomington, Indiana (research institute that explores the effect of technology on human evolution); Member, Board of Directors of the National Institute of Social Sciences, New York City; and Member, Board of Trustees of the William Alanson White Institute, New York City (institution for training psychoanalysts). Oversees 77, None
Patrick J. Simpson (Born 1944) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2000)	Partner, Perkins Coie LLP (law firm). Oversees 77, None
Thomas C. Theobald (Born 1937) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee and Chairman of the Board (since 1996)	Partner and Senior Advisor, Chicago Growth Partners (private equity investing) since September 2004; Managing Director, William Blair Capital Partners (private equity investing) from September 1994 to September 2004. Oversees 77, Anixter International (network support equipment distributor); Ventas, Inc. (real estate investment trust); Jones Lang LaSalle (real estate management services); Ambac Financial Group (financial guaranty insurance)
Anne-Lee Verville (Born 1945) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1998)	Retired since 1997 (formerly General Manager—Global Education Industry (from 1994 to 1997), President—Application Systems Division (from 1991 to 1994), Chief Financial Officer—US Marketing & Services (from 1988 to 1991), and Chief Information Officer (from 1987 to 1988), IBM Corporation (computer and technology)). Oversees 77, None
Interested Trustee
William E. Mayer (Born 1940) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee2 (since 1994)	Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business, University of Maryland from 1992 to 1997. Oversees 77, Lee Enterprises (print media), WR Hambrecht + Co. (financial service provider); BlackRock Kelso Capital Corporation (investment company)

  ¹  Messrs. Drake, Piel and Collins have served as directors/trustees of the Excelsior Funds since 1996, 1996 and 2005, respectively. The Excelsior Funds consisted of 27 portfolios managed by affiliates of Columbia Management Advisors, LLC. Effective December 12, 2007, the Board elected Messrs. Drake, Piel and Collins as Trustees of the Trust.

  ²  Mr. Mayer is an "interested person" (as defined in the Investment Company Act of 1940) by reason of his affiliation with WR Hambrecht + Co., a registered broker/dealer that may execute portfolio transactions for or engage in principal transactions with the Funds or other funds or accounts advised/managed by the Advisor or other Bank of America affiliates.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 1-800-426-3750.

83

Fund Governance (continued)

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years
Christopher L. Wilson (Born 1957) One Financial Center Boston, MA 02111 President (since 2004)	President—Columbia Funds, since October 2004; Managing Director—Columbia Management Advisors, LLC, since September 2005; Senior Vice President—Columbia Management Distributors, Inc., since January 2005; Director—Columbia Management Services, Inc., since January 2005; Director—Bank of America Global Liquidity Funds, plc and Banc of America Capital Management (Ireland), Limited, since May 2005; Director—FIM Funding, Inc., since January 2005; President and Chief Executive Officer—CDC IXIS AM Services, Inc. (investment management), from September 1998 through August 2004; and a senior officer or director of various other Bank of America affiliated entities, including other registered and unregistered funds.
James R. Bordewick, Jr. (Born 1959) One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)	Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.
J. Kevin Connaughton (Born 1964) One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since2000)	Managing Director of Columbia Management Advisors, LLC since December 2004; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004—Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds.
Linda J. Wondrack (Born 1964) One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since2007)	Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.
Michael G. Clarke (Born 1969) One Financial Center Boston, MA 02111 Treasurer (since 2008)	Director of Fund Administration of the Advisor since January 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.
Jeffrey R. Coleman (Born 1969) One Financial Center Boston, MA 02111 Deputy Treasurer (since 2006)	Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.

84

Fund Governance (continued)

Officers (continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years
Joseph F. DiMaria (Born 1968) One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)	Director of Fund Administration of the Advisor since January 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October 2004.
Julian Quero (Born 1967) One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)	Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.
Barry S. Vallan (Born 1969) One Financial Center Boston, MA 02111 Controller (since 2006)	Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April 2002 to October 2004.

85

COLUMBIA FUNDS INSTITUTIONAL TRUST

ONE FINANCIAL CENTER, BOSTON, MASSACHUSETTS, 02111-2621

- INVESTMENT ADVISOR -

COLUMBIA MANAGEMENT ADVISORS, LLC
100 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110-2624

- LEGAL COUNSEL -

ROPES & GRAY LLP
ONE INTERNATIONAL PLACE
BOSTON, MASSACHUSETTS 02110-2624

- TRANSFER AGENT -

COLUMBIA MANAGEMENT SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081

SHC-42/154962-0708 (09/08) 08/56960

A description of the policies and procedures that each fund uses to determine how to vote proxies and a copy of each fund's voting records are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how each fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how each fund voted proxies relating to portfolio securities is also available from the funds' website, www.columbiamanagement.com.

Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the fund, contact your Columbia Management representative or go to www.columbiamanagement.com.

©2008 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621

CMG ENHANCED S&P 500^® INDEX FUND
CMG LARGE CAP GROWTH FUND
CMG LARGE CAP VALUE FUND
CMG MID CAP GROWTH FUND
CMG MID CAP VALUE FUND
CMG SMALL CAP GROWTH FUND
CMG SMALL CAP VALUE FUND
CMG SMALL/MID CAP FUND
CMG INTERNATIONAL STOCK FUND
PORTFOLIOS OF COLUMBIA FUNDS INSTITUTIONAL TRUST

Annual Report
July 31, 2008

NOT FDIC INSURED

May Lose Value

NOT BANK ISSUED

No Bank Guarantee

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. CMG Funds are distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Columbia Management Advisors, LLC ("CMA") is an SEC-registered investment advisor and an indirect, wholly-owned subsidiary of Bank of America Corporation and is part of Columbia Management.

Table of Contents

Management Discussion of Fund Performance
CMG Enhanced S&P 500® Index Fund	1
CMG Large Cap Growth Fund	5
CMG Large Cap Value Fund	9
CMG Mid Cap Growth Fund	13
CMG Mid Cap Value Fund	17
CMG Small Cap Growth Fund	21
CMG Small Cap Value Fund	25
CMG Small/Mid Cap Fund	29
CMG International Stock Fund	33
Financial Statements
Financial Highlights	37
Schedules of Investments	46
Statements of Assets and Liabilities	114
Statements of Operations	116
Statements of Changes in Net Assets	118
Notes to Financial Statements	123
Report of Independent Registered Public Accounting Firm	136
Federal Income Tax Information	137
Fund Governance	139

The views expressed in this report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a CMG Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular CMG Fund. References to specific securities should not be construed as a recommendation or investment advice.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

CMG Enhanced S&P 500^® Index Fund returned negative 12.20% for the 12-month period ended July 31, 2008. The fund's return was lower than the return of its benchmark, the S&P 500 Index,¹ which was negative 11.09% for the same period. The fund underperformed the negative 10.75% average return for its peer group, the Lipper Large Cap Core Funds Classification.² Consumer discretionary, financials, health care, technology and utilities had a positive impact on performance relative to the index. However, energy, materials, industrials, consumer staples and telecommunication services detracted from relative return.

In the energy sector, stock selection was a source of negative performance. The fund had more exposure than the index to Sunoco and Valero Energy (0.5% and 0.8% of net assets, respectively), which lost ground as rising commodity prices hurt refining margins. An underweight relative to the index in Hess (0.8% of net assets), an energy distributor, also hampered performance as the stock rose 38% for the period. The fund also had more exposure than the index to the exploration and production activities of EOG Resources (0.3% of net assets), which dropped 19% for the period. Within the materials sector, an overweight in Monsanto (0.7% of net assets) detracted from performance as the company's shares soared on investor enthusiasm for its biotech products in light of strong corn prices.

A combination of stock selection and sector weights aided returns in the consumer discretionary, financials, health care, technology and utilities sectors. In the consumer discretionary sector, a decision to own more McDonald's (0.8% of net assets) than the index was rewarded as strong global sales drove its share price 30% higher. An above-index weight in DIRECTV (0.8% of net assets) also produced positive results for the fund. In the financials sector, the fund had less exposure than the index to Fannie Mae and Wachovia (0.1% of net assets) and it is not permitted to own shares of Columbia's parent company Bank of America, which aided performance as all three were hit hard by weakness in the housing industry, deterioration of consumer spending and credit quality questions.³ We sold Fannie Mae before the end of the period. In the health care sector, a positive return from Amgen (1.3% of net

¹ The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

"Standard & Poor's" and "S&P" are trademarks of the McGraw-Hill Companies, Inc., and have been licensed for use by the Advisor. The Fund is not sponsored, endorsed, sold or promoted by Standard and Poor's and Standard and Poor's makes no representation regarding the advisability of investing in the Fund.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

³ The fund is not permitted to own Bank of America stock. As of July 31, 2008, Bank of America represented 1.36% of the S&P 500 Index; for the 12-month period ending July 31, 2008, BAC decreased 26.07%.

1

assets) aided performance. The company's drug for the treatment of osteoporosis and cancer-related bone loss was well received by investors. Stock selection in technology and utilities also aided performance. In the utilities sector, a decision to overweight FirstEnergy (0.7% of net assets) was beneficial as investors gravitated to the company as a relatively safe haven after the tumultuous market conditions of the past year.

Although we expect market volatility to continue over the next year, we are encouraged by the economy's resilience in 2008, despite the powerful negatives of rising energy prices, a weak housing market and continued problems in the credit markets. If there is some relief in any or all of these areas of the economy, we believe that growth could pick up in 2009. In this environment, we believe investors are well served by having broad diversification within their portfolios. Diversification does not ensure a profit or prevent a loss but it can help modulate the ups and downs in any particular sector in any market environment.

We appreciate your continued confidence in CMG Enhanced S&P 500^® Index Fund.

Portfolio Management

Vikram Kuriyan has managed the fund since August 2004 and has been with the advisor or its predecessors or affiliate organizations since 2000.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Exxon Mobil		4.1
Microsoft		2.8
Chevron		2.0
Johnson & Johnson		2.0
Procter & Gamble		1.9
Pfizer		1.8
International Business Machines		1.8
AT&T		1.6
Altria Group		1.6
General Electric		1.6

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investing in the fund also includes market risk and tracking error risk. Unlike the S&P 500 Index, the fund incurs administrative expenses and transaction costs in trading stocks. The composition of the S&P 500 Index and the stocks held by the fund will diverge.

2

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		Life
CMG Enhanced S&P 500® Index Fund		05/05/03		-12.20		7.18		8.29
S&P 500 Index				-11.09		7.03		8.15

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		Life
CMG Enhanced S&P 500® Index Fund		05/05/03		-14.86		7.76		8.62
S&P 500 Index				-13.12		7.58		8.47

Index performance is from May 5, 2003.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.25% and 0.30%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, May 5, 2003 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Standard & Poor's (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

3

UNDERSTANDING YOUR EXPENSES – CMG Enhanced S&P 500^® Index Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

918.60

1,023.62

1.19

1.26

0.25

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.25%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

4

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Large Cap Growth Fund returned negative 3.57%. Although the fund's return was negative, the fund held up better than its benchmark and peer group in a difficult environment for stocks overall. The fund's benchmark, the Russell 1000 Growth Index¹ returned negative 6.29% and the average return for the fund's peer group, the Lipper Large-Cap Growth Funds Classification, was negative 5.72%.² Stock selection helped performance, as we remained focused on companies with strong competitive positions, good balance sheets, attractive stock valuations and above-average earnings growth prospects.

Stock selection worked especially well in the energy sector, where soaring oil and natural gas prices fueled sharp gains in exploration and production (E&P) stocks with strong production growth. Standouts included E&P companies Southwestern Energy, which we sold, and Hess (0.8% of net assets). As E&P companies boosted production to take advantage of high energy prices, Halliburton, an oilfield service company, and Nabors Industries, a land driller, (1.2% and 1.0% of net assets, respectively) also posted sharp gains.

In the materials sector, agricultural stocks were winners, as the growing demand for ethanol drove corn prices higher, and increased global food consumption, particularly in the emerging markets of China and India, pressured farmers to increase crop yields. In this environment, Potash Corp. of Saskatchewan, which supplies potash for fertilizer, and Monsanto Co. (1.0% of net assets), which sells genetically-enhanced seeds, enjoyed strong demand, leading to strong returns for the year. We sold Potash before period end, as it reached our price objective.

In industrials, alternative energy stocks did well as interest in alternative power increased globally and solar companies reduced costs to become more competitive. First Solar (0.5% of net assets), a U.S. solar company with a presence in Germany, was a top performer. Health care investments further aided returns, led by gains from biotechnology giant Amgen and from BioMarin Pharmaceuticals (1.5% and 0.4% of net assets, respectively). Amgen's stock spiked following the release of positive data on a new osteoporosis drug, while BioMarin's climbed after receiving regulatory approval for a new drug to treat a rare neural disorder.

Technology stocks, which were about 30% of assets, declined as investors became concerned that a slowing economy would curb corporate spending. Detractors included Akamai Technologies, which makes products that help corporate websites run more efficiently, and EMC (0.9% of net assets), a storage company. We sold Akamai before the end of the period. In the consumer sector, the fund's positioning was defensive, as rising energy costs presented

¹ The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

5

consumers with a spending headwind. Strong performance from holdings such as Urban Outfitters (0.8% of net assets) was offset by Nordstrom and OfficeMax, which failed to meet expectations. Elsewhere, Coventry Health Care, a managed health care company, fell sharply, as pricing failed to keep pace with rising health care costs. We sold Nordstrom, OfficeMax and Coventry Health Care.

Going forward, we believe market volatility will continue as long as the economic outlook remains uncertain. However, we remain optimistic about the long-term prospects for large-cap growth stocks. We believe that they stand to benefit as investors seek out companies with the potential to sustain their earnings growth rates in the face of decelerating earnings across the market. In addition, we believe the diverse nature of large-cap businesses tends to make them less susceptible to economic swings. We plan to focus on companies that are in a position to pass on rising input costs as well as companies that can help other businesses run more efficiently and productively.

Thank you for investing in CMG Large Cap Growth Fund.

Portfolio Management

John T. Wilson, lead manager for CMG Large Cap Growth Fund, has managed or co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2005.

Roger R. Sullivan has co-managed the fund since June 2005 and has been with the advisor or its predecessors or affiliate organizations since 2005.

Paul J. Berlinguet has co-managed the fund since October 2003 and has been with the advisor or its predecessors or affiliate organizations since 2003.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
QUALCOMM		3.2
International Business Machines		2.6
Google		2.3
Apple		2.2
Wal-Mart Stores		2.2
Microsoft		2.2
Oracle		2.0
Schlumberger		1.9
Cisco Systems		1.9
Johnson & Johnson		1.8

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.

6

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		Life
CMG Large Cap Growth Fund		09/10/03		-3.57		6.79
Russell 1000 Growth Index				-6.29		5.85

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		Life
CMG Large Cap Growth Fund		09/10/03		-3.02		7.45
Russell 1000 Growth Index				-5.96		6.38

Index performance is from September 10, 2003.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.50% and 0.66%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, September 10, 2003 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell 1000 Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

7

UNDERSTANDING YOUR EXPENSES – CMG Large Cap Growth Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

981.50

1,022.38

2.46

2.51

0.50

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.50%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

8

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Large Cap Value Fund returned negative 14.50%. Considering the current state of the domestic economic environment and the global economic pressures that provided a challenging environment for equity investors, the fund held up better than its benchmark, the Russell 1000 Value Index, which returned negative 15.15%¹, and the average return of its peer group, the Lipper Multi-Cap Value Funds Classification, which returned negative 15.71%.² In a weak economic environment marked by continued credit and liquidity woes, poor results from the financials and consumer discretionary sectors generally accounted for the fund's negative overall return. While exposure to the poor-performing financials sector hurt the fund during the period, its light exposure to the sector compared to the index helped the fund outperform its benchmark. Positive stock selection within the financials sector and significant exposure to the strong-performing energy sector also aided relative returns.

Within financials, the fund benefited from positive performance among its commercial bank holdings. Standout performers for the fund included PNC Financial Services Group and U.S.Bancorp (1.5% and 2.7% of net assets, respectively). Similarly, the fund's research process led to the selection of capital markets companies that proved capable of weathering the credit and liquidity storms. State Street and Goldman Sachs Group (1.3% and 1.2% of net assets, respectively) were among holdings in this area that saw positive results. The fund has selectively and steadily increased its overall exposure to financial stocks, ending the period with an overweight in the sector. The emphasis has been on identifying companies that we believe are capable of being better positioned to take advantage of the stability and the upturn that we believe the economy will eventually witness.

Stock selection was also central to a strong showing from the fund's energy holdings. The fund was underweight in energy relative to the index, which hurt relative results. However, a decision to emphasize energy equipment and service names, such as Halliburton and Weatherford International (0.9% and 0.6% of net assets, respectively), proved beneficial to performance. While rising oil prices provided a boost to energy returns, these companies were also the beneficiaries of new drilling opportunities, strong backlogs of work and rising demand for services. The fund also reaped continued positive results from integrated oil companies Occidental Petroleum and Hess (1.0% and 1.1% of net assets, respectively). Stock selection in health care, including Amgen Inc. (2.2% of net assets), a leading biotechnology company, and in telecommunications was also beneficial to the fund's relative performance.

During the period, detractors from performance included an underexposure to chemical companies in the materials group, which had a boost from rising demand for fertilizers, and an underweight to the utilities group. Among the largest detractors were commodity-linked names in the consumer staples sector. Food packager ConAgra Foods (1.4% of net assets) underperformed due to concerns over weak results in the firm's consumer goods division. The

¹ 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. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

9

stock has since recovered marginally and we continue to hold it given the improved performance of its core brands. An underweight in the household products area, including limited exposure to strong performer Proctor & Gamble (1.5% of net assets), also hurt the fund's returns. We have since added to the fund's position in this group, marginally boosting its position in household product companies that are successfully passing along rising costs to the consumer through price increases.

We are encouraged by the resilience of the U.S. economy, particularly in light of significant headwinds faced over the past 12 months, including rising commodity prices, falling housing prices, reduced availability of credit and increased consumer uncertainty. We believe that recent market volatility has created buying opportunities for managers who focus, as we do, on individual stock selection. We seek to invest in companies whose shares are not only undervalued, but whose operating margins have been compressed and whose future performance has the potential to expand those margins.

Thank you for investing in CMG Large Cap Value Fund.

Portfolio Management

Lori J. Ensinger is the lead manager for CMG Large Cap Value Fund and has managed the fund since August 2005. She has been with the advisor or its predecessors or affiliate organizations since 2001.

Diane L. Sobin has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001.

David I. Hoffman has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2001.

Noah J. Petrucci has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2002.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Exxon Mobil		4.8
JPMorgan Chase		4.2
AT&T		3.3
Wells Fargo		3.1
Johnson & Johnson		2.8
U.S. Bancorp		2.7
General Electric		2.4
ConocoPhillips		2.3
Amgen		2.2
ACE Ltd.		2.1

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the advisor's opinion, undervalued. The price of the company's stock may not approach the value the advisor has placed on it.

10

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		Life
CMG Large Cap Value Fund		09/10/03		-14.50		6.64
Russell 1000 Value Index				-15.15		8.39

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		Life
CMG Large Cap Value Fund		09/10/03		-17.18		6.97
Russell 1000 Value Index				-18.78		8.63

Index performance is from September 10, 2003.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.50% and 0.68%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, September 10, 2003 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

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. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

11

UNDERSTANDING YOUR EXPENSES – CMG Large Cap Value Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

902.59

1,022.38

2.37

2.51

0.50

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.50%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

12

Performance data quoted represents past performance, and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Mid Cap Growth Fund returned negative 0.67%. The fund's benchmark, the Russell Midcap Growth Index, returned negative 7.92%¹ and the average return of its peer group, the Lipper Mid-Cap Growth Funds Classification, was negative 7.48%². Positive stock selection helped the fund, with the biggest gains coming from materials and energy. Sector weights, despite being relatively close to those in the index, modestly hindered relative performance.

The fund's energy stocks climbed significantly for the year, benefiting as rising global demand and constrained supply drove oil prices up in the first seven months of 2008. Natural gas prices also rose sharply. Among the winners were domestic exploration and production companies Continental Resources, Denbury Resources and Concho Resources (1.1%, 1.4% and 0.5% of net assets, respectively). All three stocks posted outsized gains, driven by positive pricing as well as strong production growth.

In the materials sector, where the fund's investments experienced strong returns, agricultural stocks benefited as rising demand for ethanol and growing global food consumption, especially in emerging markets, drove commodity prices higher. Companies that could help farmers increase their crop yields did especially well. Among the winners were Potash Corp. of Saskatchewan (1.9%of net assets), which produces potash for fertilizer; Agrium (0.6% of net assets), another fertilizer company; and Monsanto (0.9% of net assets), which sells genetically-enhanced seeds. Some mining stocks also rallied nicely, including Cleveland-Cliffs (1.1% of net assets), an iron ore company that gained from positive pricing in the wake of growing global demand. Bucyrus International (0.6% of net assets), a mining equipment company, also rose sharply, as mining companies stepped up production to take advantage of higher commodity prices.

A modest overweight in and below-average performance from the fund's telecommunications services stocks hampered returns relative to the index. Disappointments included NII Holdings (0.6% of net assets), a leading Latin American wireless provider whose stock price declined as increased competition pressured subscriber growth rates. In technology, Equinix (0.6% of net assets), an operator of large offsite data centers, retreated amid concerns that corporate technology spending would slow.

Other detractors were spread across sectors. In the consumer discretionary sector, CROCS, a footwear manufacturer, and Scientific Games, which makes gaming systems, both fell sharply. CROCS suffered from decelerating sales, excess inventory and disappointing earnings. Scientific Games was hurt by the loss of a key contract and the weak economy. We sold both stocks. In

¹ The Russell Midcap Growth Index measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

13

health care, Hologic (0.7% of net assets), which specializes in digital mammography, declined amid worries that the stock's price had surpassed expectations.

Although we expect the market to remain volatile in the near term, we are confident that we can find ample opportunities to invest in mid-cap stocks that fit our investment criteria. We plan to focus on companies that can pass on rising input costs, as well as companies that can help other businesses be more efficient.

We appreciate your continued confidence in the CMG Mid Cap Growth Fund.

Portfolio Management

Wayne M. Collette has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2001.

George J. Myers has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.

Lawrence W. Lin has co-managed the fund since October 2007 and has been with the advisor since 2006.

Brian D. Neigut has co-managed the fund since October 2007 and has been with the advisor since 2007.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Potash Corp. of Saskatchewan		1.9
Denbury Resources		1.4
McDermott International		1.3
Cummins		1.2
American Tower		1.2
Diamond Offshore Drilling		1.2
Continental Resources		1.1
Cleveland Cliffs		1.1
Waddell & Reed Financial		1.1
Precision Castparts		1.0

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.

Investing in mid-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

14

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		Life
CMG Mid Cap Growth Fund		05/05/03		-0.67		11.47		12.82
Russell Midcap Growth Index				-7.92		10.67		12.60

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		Life
CMG Mid Cap Growth Fund		05/05/03		3.93		13.15		14.28
Russell Midcap Growth Index				-6.42		12.32		13.67

Index performance is from May 5, 2003.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.70% and 0.95%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, May 5, 2003 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell Midcap Growth Index measures the performance of those Russell Midcap Index companies with higher price-to-book ratios and higher forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

15

UNDERSTANDING YOUR EXPENSES – CMG Mid Cap Growth Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

1,018.30

1,021.38

3.51

3.52

0.70

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.70%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

16

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Mid Cap Value Fund returned negative 13.36%. The fund's return was slightly lower than the negative 13.20% return of its benchmark, the Russell Midcap Value Index,¹ and also lower than the negative 8.92% average return of its peer group, the Lipper Mid-Cap Core Funds Classification.² A weak U.S. economic environment and growing concerns that the global economy may also be slowing pushed stocks well into negative territory. This environment, combined with exposure to weakness in the financials, consumer discretionary and industrials sectors, contributed to the fund's negative results. Technology stocks helped buoy the fund's relative return.

Despite an underweight in the financials sector, poor performance from several holdings in the thrifts and mortgage area, including Freddie Mac and PMI Group, hurt the fund's return. We subsequently sold both stocks since we believe business prospects for the companies had not improved. While selected commercial bank and capital markets holdings did better on a relative basis, the absolute returns of these stocks were still negative. In recent months, we have selectively increased the fund's exposure to the financials sector, moving incrementally to a neutral weight relative to the index, as the frequency and magnitude of negative trends appears to have diminished. This positioning is balanced with our view that the financials sector has the potential to continue to experience volatility going forward and valuation opportunities abound.

Performance from the fund's holdings in the materials sector was similarly mixed. Among positive contributors were Crown Holdings and Packaging Corp. of America (0.8% and 1.0% of net assets, respectively), which manufactures basic packaging for consumer and industrial goods. The global businesses of these firms were boosted by strength in demand due to a rising level of global wealth. Detractors in the sector included steel manufacturer Allegheny Technologies (0.5% of net assets), which underperformed due to weak demand for flat-rolled steel. Nonetheless, the company saw strong demand from aerospace companies and we continued to hold the stock.

Holdings in the energy sector contributed positive returns, with integrated oil company Hess and coal company Peabody Energy (both 0.6% of net assets) providing the biggest boost. We lightened the fund's exposure to the sector, taking profits during the period, and retained a neutral weight relative to the index. We also took profits from holdings in the industrials and utilities sectors. While we continue to view the industrials sector positively in the long-term and maintain an overweight position in the sector relative to the benchmark, we adjusted the fund's exposure downwards to minimize potential risk from this sector in the event of a global economic slowdown.

Technology provided a boost for the fund, with strong performance from software holdings, including Activision Blizzard (0.6% of net assets), which saw continued positive results from its online and console games. NCR (1.4% of net assets) was another key contributor, buoyed by

¹ The Russell Midcap Value Index measures the performance of those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

17

continued growth of its ATM sales business and successful cost-cutting initiatives employed by management. The fund's relative performance also benefited from positive stock selection in the consumer discretionary sector, particularly the successful avoidance of broad weakness among newspaper companies.

We are encouraged by the resilience of the U.S. economy, particularly in light of the significant headwinds faced over the past 12 months, including rising commodity prices, falling housing prices, reduced availability of credit and increased consumer uncertainty. As a result, we remain optimistic about the longer-term prospects for mid-cap value stocks, particularly companies with management teams that are able to expand their businesses by capturing growing demand and increased pricing power. The market's recent volatility has depressed valuations across the sector, providing an opportunity to buy stocks that fit our investment criteria at a significant discount to historical levels.

We appreciate your continued confidence in CMG Mid Cap Value Fund.

Portfolio Management

Diane L. Sobin, lead manager, has co-managed the CMG Mid Cap Value Fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2001.

David I. Hoffman has co-managed the fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2001.

Lori J. Ensinger has co-managed the fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2001.

Noah J. Petrucci has co-managed the fund since September 2004 and has been with the advisor or its predecessors or affiliate organizations since 2002.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Plum Creek Timber		1.9
Marsh & McLennan		1.8
Weyerhaeuser		1.7
Ameriprise Financial		1.6
ACE Ltd.		1.6
Rayonier		1.5
Equity Residential		1.5
Marshall & IIsley		1.5
Alexandria Real Estate Equities		1.5
Sempra Energy		1.4

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investing in mid-cap stocks may present special risks, including possible illiquidity and greater price volatility than stocks of larger, more established companies.

Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the advisor's opinion, undervalued. The price of the company's stock may not approach the value the advisor has placed on it.

18

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		Life
CMG Mid Cap Value Fund		05/05/03		-13.36		10.26		11.18
Russell Midcap Value Index				-13.20		12.05		13.78

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		Life
CMG Mid Cap Value Fund		05/05/03		-15.62		11.44		11.86
Russell Midcap Value Index				-17.09		13.00		14.27

Index performance is from May 5, 2003.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.70% and 1.06%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, May 5, 2003 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell Midcap Value Index measures the performance of those Russell Midcap Index companies with lower price-to-book ratios and lower forecasted growth values. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

19

UNDERSTANDING YOUR EXPENSES – CMG Mid Cap Value Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

933.22

1,021.38

3.36

3.52

0.70

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.70%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

20

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Small Cap Growth Fund returned 1.49%. For the same period, the fund's benchmarks, the Russell 2000 Growth Index and the Russell 2000 Index, returned negative 3.76% and negative 6.71%, respectively.¹ The average return of the fund's peer group, the Lipper Small-Cap Growth Funds Classification², was negative 10.66%. Stock selection, with a focus on companies that have high or improving returns on invested capital, high or improving profit margins and strong management teams, accounted for the fund's strong relative performance. Sector weights remained close to those in the Russell 2000 Growth Index.

Health care stocks, which accounted for approximately 22% of assets, delivered outsized gains. Standouts included ICON (3.0% of net assets), an Irish contract research organization, and NuVasive (1.4% of net assets), a medical device company. ICON benefited as more companies outsourced their clinical drug trials. Nuvasive rose in anticipation of more orthopedic surgeons using its innovative, minimally invasive approach to spine surgery. Illumina (1.5% of net assets), a medical device company, also rallied nicely, buoyed by expectations for its human genome analyzer, a unique tool to help uncover genetic markers for disease.

The fund's materials and energy stocks, which together accounted for another 20% of assets, each had strong returns for the year. In the materials sector, agricultural stocks gained nicely as growing worldwide food consumption drove commodity prices higher. Fertilizer companies, including CF Industries Holdings (1.1% of net assets), did especially well, as farmers sought to increase crop yields. Metals stocks — led by Cleveland-Cliffs (1.2% of net assets), an iron ore producer — also rallied nicely, buoyed by rising demand and improved pricing.

Energy stocks benefited as growing global demand and constrained supply drove oil and natural gas prices to new highs. Standouts included exploration and production companies Concho Resources and PetroHawk Energy (0.9% and 0.7% of net assets, respectively). Other top contributors came from a variety of sectors. Bucyrus International (1.5% of net assets), a mining equipment company, rallied as higher commodity prices led to increased demand for its services. Vocus (1.1% of net assets), which provides online public relations software, climbed as companies looked for ways to cut costs and improve efficiency.

Financial stocks declined, pressured by continued woes in the subprime mortgage sector and tight credit. Detractors included First Cash Financial Services, a pawn shop that suffered as the economy weakened and loan defaults increased. Elsewhere, disappointments included consumer discretionary holdings CROCS and J Crew (0.7% of net assets). CROCS, a footwear maker,

¹ The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

21

sank as sales slowed and inventory grew. J Crew, a clothing retailer, was hurt by the slowdown in consumer spending. In health care, Hologic (1.2% of net assets), which specializes in digital mammography, pulled back after a 2007 acquisition drove the stock price ahead of expectations. We sold First Cash Financial Services and CROCS before period end.

We believe that small-cap stocks, which led the downturn, will be among the first to rebound once the economy improves. In the meantime, investors appear to be willing to pay a premium for companies that can still sustain or grow their earnings. Our focus will remain on small-cap growth companies that can pass on rising input costs through improved pricing, as well as companies that can help other businesses run more efficiently. We plan to remain diversified across sectors, while looking for opportunities in companies with good earnings growth prospects and attractive valuations.

We appreciate your continued confidence in CMG Small Cap Growth Fund.

Portfolio Management

Wayne M. Collette has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2001.

George J. Myers has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.

Lawrence W. Lin has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2006.

Brian D. Neigut has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2007.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	%
ICON		3.0
Illumina		1.5
Alexion Pharmaceuticals		1.5
Atwood Oceanics		1.5
Waddell & Reed Financial		1.5
Bucyrus International		1.5
NuVasive		1.4
Intrepid Potash		1.5
Terra Industries		1.3
OSI Pharmaceuticals		1.3

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.

Investments in small-cap stocks may be subject to greater volatility and price fluctuations because they may be thinly traded and less liquid than investments in larger companies.

22

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception	1-year		5-year		10-year
CMG Small Cap Growth Fund	08/30/89		1.49		14.36		9.80
Russell 2000 Growth Index			-3.76		9.27		3.94
Russell 2000 Index			-6.71		9.75		6.81

Average annual total return as of June 30, 2008 (%)

	Inception	1-year		5-year		10-year
CMG Small Cap Growth Fund	08/30/89		-0.39		15.44		9.45
Russell 2000 Growth Index			-10.83		10.37		2.80
Russell 2000 Index			-16.19		10.29		5.53

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.80% and 1.07%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 11/30/09.

Growth of a $3,000,000 investment, August 1, 1998 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell 2000 Growth Index measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

23

UNDERSTANDING YOUR EXPENSES — CMG Small Cap Growth Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

1,024.12

1,020.89

4.03

4.02

0.80

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.80%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

24

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Small Cap Value Fund returned negative 7.73%. The fund's benchmarks, the Russell 2000 Value Index and the Russell 2000 Index, returned negative 9.95% and negative 6.71%, respectively.¹ The fund's return was higher than the average return of its peer group, the Lipper Small-Cap Value Funds Classification, which was negative 11.72% over the same period.² Although most sectors across the market and across the fund were down for the period, the fund gained some downside protection from stock selection, as well as positive sector weights, particularly in consumer discretionary, health care and financials.

In selecting stocks for the fund, we remained focused on companies with strong balance sheets, positive earnings growth and attractive stock valuations. This strategy worked particularly well during the past year as economic uncertainty triggered concerns about earnings and capital, which pushed investors toward companies with demonstrated financial strength. The fund further benefited from overweights in less economically-sensitive sectors, such as health care, which held up relatively well in the downturn, and underweights in the weakest sectors, including consumer discretionary and financials.

Stock selection was strongest in some of the sectors that declined the most. In consumer discretionary, the fund avoided media stocks and greatly underweighted autos and auto parts —among the sector's worst performing industries. In addition, specialty retail holdings posted strong gains, led by America's Car-Mart (0.6% of net assets), which sells used vehicles in small markets to customers who need financing help. The company benefited from strong execution on its strategy. In financials, the fund successfully avoided some of the biggest blow-ups, while generating returns — particularly from real estate investment trusts and from thrifts and mortgage finance companies — that were down much less than those in the fund's primary benchmark, the Russell 2000 Value Index. An overweight in insurance further aided returns, as did investments in selected commercial banks, such as UMB Financial, a top holding that climbed sharply after reporting record first quarter profits. The stock was sold in the last month of the period.

The fund's health care investments made a positive contribution to return, despite the sector's overall weakness in the index. Stock and industry selection made the difference, particularly among health care providers and services, where we found some higher quality and less expensive stocks. Among the winners were Owens & Minor (0.7% of net assets), a medical and surgical supply distributor, and Amedisys (0.5% of net assets), a home health and hospice provider, both of which generated solid double-digit gains for the year. In addition, life sciences tools and services investments posted strong gains, led by PAREXEL International (0.5% of net

¹ The Russell 2000 Value Index measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

25

assets), a contract researcher that saw increased demand from drug companies doing more outsourcing. Other positive contributions versus the Russell 2000 Value Index came from consumer staples, where stock selection was especially helpful in food retailing and food-related companies. Investments in energy, an overweight, did not help relative returns, but were only slightly behind the return posted by the sector in the Russell 2000 Value Index.

Materials stock selection detracted from returns versus the Russell 2000 Value Index. The fund did not own some of the Russell 2000 Value Index's best performers in the metals and mining and agricultural chemicals industries, largely because the stocks had expensive stock valuations and heavy debt loads. Some of these stocks were heavily weighted in the Russell 2000 Value Index and generated triple digit returns as growing global demand pushed commodity prices higher.

The fund remains defensively positioned, both in terms of its focus on higher quality stocks and its sector weights. We are cautiously optimistic about the fund's prospects, largely because of the financial strength and attractive valuations of its holdings. In addition, small-cap stocks have often led the market into a downturn, as they did in this recent cycle, and have the potential to be among the first to recover once investor confidence is restored.

Thank you for investing in CMG Small Cap Value Fund.

Portfolio Management

Stephen Barbaro has managed or co-managed the fund since May 2003 and has been with the advisor or its predecessors or affiliate organizations since 1976.

Jeremy Javidi has co-managed the fund since August 2005 and has been with the advisor or its predecessors or affiliate organizations since 2000.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Cash America International		1.0
CH Energy Group		1.0
STERIS		1.0
Werner Enterprises		1.0
Gentiva Health Services		0.8
H.B. Fuller		0.8
Potlatch		0.8
United America Indemnity		0.8
Anixter International		0.8
MPS Group		0.8

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investments in small-cap stocks may be subject to greater volatility and price fluctuations because they may be thinly traded and less liquid than investments in larger companies.

Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the advisors opinion, undervalued. The price of the company's stock may not approach the value the advisor has placed on it.

26

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception	1-year		5-year		Life
CMG Small Cap Value Fund	05/05/03		-7.73		11.79		13.83
Russell 2000 Value Index			-9.95		10.05		12.52
Russell 2000 Index			-6.71		9.75		12.53

Average annual total return as of June 30, 2008 (%)

	Inception	1-year		5-year		Life
CMG Small Cap Value Fund	05/05/03		-16.51		12.08		13.22
Russell 2000 Value Index			-21.63		10.02		11.65
Russell 2000 Index			-16.19		10.29		11.96

Index performance is from May 5, 2003.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.80% and 1.02%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, May 5, 2003 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell 2000 Value Index measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index measures the performance of the 2,000 smallest of 3,000 largest U.S. companies based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

27

UNDERSTANDING YOUR EXPENSES — CMG Small Cap Value Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

983.99

1,020.89

3.95

4.02

0.80

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.80%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

28

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG Small/Mid Cap Fund returned 2.12%. This return was higher than the returns of the fund's benchmarks, the Russell 2500 Growth Index and the Russell 2500 Index, which returned negative 5.56% and negative 8.42%, respectively.¹ The fund also outpaced the negative 7.48% average return of its peer group, the Lipper Mid-Cap Growth Funds Classification,² for the same period. Stock selection was the key to the fund's strong relative performance. We focused on companies with high or improving returns on invested capital, high or improving profit margins and strong management teams, and our strategy was rewarded by positive performance in a negative environment for stocks overall. Sector weights remained close to those in the Russell 2500 Growth Index, the fund's primary benchmark.

Energy stocks gave the biggest boost to returns, surging as growing global demand, constrained supply and investor interest pushed oil and natural gas prices to new highs. Continental Resources and PetroHawk Energy (1.1% and 1.0% of net assets, respectively), exploration and production companies with strong production growth, each delivered huge returns. Alpha Natural Resources (1.3% of net assets), a coal producer, also was up sharply, buoyed by demand from emerging markets, which helped push coal prices higher.

Materials stocks rallied nicely, led by gains from agricultural stocks. Growing demand for corn, which is used in ethanol, and rising food consumption worldwide pushed commodity prices sharply higher. As farmers looked for ways to boost their crop yields, fertilizer companies, including Potash Corp. of Saskatchewan (1.9% of net assets), profited. Mining stocks, such as Cleveland-Cliffs (1.4% of net assets), an iron ore company, also did well as increased global demand pushed up pricing.

The fund's technology stocks were down much less than those in the Russell 2500 Growth Index, despite concerns that a weak economy would lead corporations to reduce technology spending. We focused on companies with products and services that help businesses reduce expenses and become more efficient. One standout was Vocus (1.1% of net assets), a company that offers online software to improve public relations functions.

Health care stocks, 21.3% of net assets, also helped performance. The fund owned a broad mix of names, from pharmaceuticals to medical devices and health services. ICON (1.4% of net assets), an Irish contract research organization, was a top performer. It rose sharply as more companies outsourced their clinical drug trials. Gains like these more than offset detractors, such as Hologic (1.0% of net assets), which specializes in digital mammography and fell amid worries the stock had gotten ahead of itself.

¹ The Russell 2500 Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Index measures the performance of the 2,500 smallest companies of the Russell 3000 Index. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

29

Consumer discretionary stocks were down sharply, as the housing downturn and weak economy pressured consumer spending. Detractors included CROCS, a footwear company hit by excess inventory and decelerating sales, and Noah Education, a Chinese-based company that had labeling problems with some of its digital learning devices. Elsewhere, Nii Holdings, a leading Latin American wireless company, declined as competition increased and subscriber growth rates slowed. We sold all three holdings.

Going forward, we plan to focus on companies that are able to pass along higher input costs, companies with good brands and pricing power, even in the face of a weak economy, and companies that can help other businesses save costs by improving their productivity. We plan to maintain a sector-neutral and diversified approach to the small/mid cap market.

We appreciate your continued confidence in the CMG Small/Mid Cap Fund.

Portfolio Management

Wayne M. Collette has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2001.

George J. Myers has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.

Lawrence W. Lin has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2006.

Brian D. Neigut has co-managed the fund since October 2007 and has been with the advisor or its predecessors or affiliate organizations since 2007.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Potash Corp. of Saskatchewan		1.9
Waddell and Reed Financial		1.5
Denbury Resources		1.4
Cleveland-Cliffs		1.4
ICON		1.4
Alpha Natural Resources		1.3
Continental Resources		1.1
CF Industries		1.1
Vocus		1.1
Covance		1.1

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

Investing in growth stocks incurs the possibility of losses because their prices are sensitive to changes in current or expected earnings.

Investments in small- and mid-cap stocks may present special risks. They tend to be more volatile and may be less liquid than the stocks of larger companies. Small-cap stocks often have narrower markets, limited financial resources and tend to be more thinly traded than stocks of larger companies.

30

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception	1-year		5-year		Life
CMG Small/Mid Cap Fund	12/01/00		2.12		13.43		5.96
Russell 2500 Growth Index			-5.56		10.11		4.26
Russell 2500 Index			-8.42		10.48		8.22

Average annual total return as of June 30, 2008 (%)

	Inception	1-year		5-year		Life
CMG Small/Mid Cap Fund	12/01/00		1.78		14.66		6.37
Russell 2500 Growth Index			-9.20		11.61		4.36
Russell 2500 Index			-14.28		11.49		8.22

Index performance is from December 1, 2000.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.75% and 1.32%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, December 1, 2000 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell 2500 Growth Index measures the performance of those Russell 2500 Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell 2500 Index measures the performance of the 2,500 smallest companies of the Russell 3000 Index. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

31

UNDERSTANDING YOUR EXPENSES — CMG Small/Mid Cap Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

1,063.80

1,021.13

3.85

3.77

0.75

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.75%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

32

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

For the 12-month period that ended July 31, 2008, CMG International Stock Fund returned negative 13.82%. The fund's return was lower than the return of its benchmarks, the MSCI EAFE Index and the MSCI All Country World ex U.S. Index, which returned negative 12.19% and negative 9.30%, respectively.¹ The fund underperformed the average return of its peer group, the Lipper International Multi-Cap Core Classification, which was negative 11.39%.² Stock selection drove the underperformance relative to the benchmarks. As economic growth slowed, investors were willing to pay a premium for more defensive stocks, such as consumer staples, utilities and health care. Because the fund employs a value strategy, we did not participate in the run-up of these stocks, which we felt were overvalued relative to their earnings prospects. Underweights in Australia and the UK, markets that declined less than other overseas markets, also held back returns.

Individual stocks that underperformed included: MTU Aero Engines Holdings (0.5% of net assets), which suffered from general problems in the airline industry; Societe Generale, a French bank with large U.S. holdings, which was at the center of the credit crisis; and Biovail (0.6% of net assets), a Canadian pharmaceutical company, which declined because one of its blockbuster drugs faced generic competition. Societe Generale was sold, but the others remain in the portfolio.

Utility companies contributed to performance, with the biggest boost coming from British Energy, which owns licenses for some of the available sites for building nuclear power plants. Its share price rose significantly on speculation that it might be a takeover target, and we sold the stock. In Japan, Toyo Suisan Kaisha (0.7% of net assets), a maker of processed foods, surpassed market expectations. In Ireland, Paddy Power (0.7% of net assets), a gaming company, proved to be resilient despite weakness in consumer spending.

We maintained an overweight in China, even though the market declined when the government took measures to slow the economy to reduce inflation. We believe China's rate of economic growth will stabilize at around 10%. In light of this expectation, we have taken advantage of companies with valuations that are on par with competitors in markets that are growing far less than this anticipated growth rate. We added to the position in Brazil, a country rich in fresh water, arable land and other natural resources.

We raised the fund's position in banks from an underweight to a neutral weight relative to its benchmarks, because we believe these stocks have dropped to levels that reflect the worst of the news in the financials sector. We also added commodity stocks after they sold off sharply. Because coal is in short supply, we favored Centennial Coal and PT Bumi Resources and maintained a position in Yanzhou Coal Mining (0.6%, 0.4% and 0.8% of net assets, respectively.)

¹ The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI All Country (AC) World ex U.S. Index is an index of global stock market performance that includes developed and emerging markets but excludes the U.S. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

33

Infrastructure development has been a portfolio theme for a long time, and our relatively large position in ABB in Switzerland (1.0% of net assets), a global engineering company, reflects our belief that trillions of dollars could be spent on infrastructure expansion. Alternative energy is also a focus, with Vestas Wind Systems being an example (1.0% of net assets). While these stocks underperformed during this reporting period, we believe they are multi-year investments that offer exceptional value.

Looking ahead, we anticipate market volatility to continue as weak economic news persists. However, we believe that the market has the potential to rally before news gets better and have positioned the portfolio to take advantage of that outlook.

We appreciate your continued confidence in the CMG International Stock Fund.

Portfolio Management

Fred Copper has managed or co-managed the fund since October 2005 and has been with the advisor or its predecessors or affiliate organization since 2005.

Jasmine (Weili) Huang has co-managed the fund since May 2006 and has been with the advisor or its predecessors or affiliate organization since 2003.

Timothy R. Anderson has co-managed the fund since May 2006 and has been with the advisor or predecessors or affiliate organizations since 2006.

Paul J. DiGiacomo has co-managed the fund since May 2006 and has been with the advisor or predecessors or affiliate organizations since 2006.

Daisuke Nomoto has co-managed the fund since May 2006 and has been with the advisor or its predecessors or affiliate organization since 2005.

The fund's top ten holdings and countries (as a percentage of net assets) as of July 31, 2008 were:

Holdings	(%)		Countries	(%)
E.ON AG		2.2	Japan		18.8
Novartis AG, Registered Shares		2.1	United Kingdom		16.3
Banco Santander SA		2.1	Switzerland		9.3
Roche Holdings AG, Genusschein Shares		2.0	Germany		7.8
Total SA		1.7	France		5.9
Nokia Oyj		1.7	United States		5.3
BHP Biliton PLC		1.6	Spain		5.0
AstraZeneca PLC		1.5	Singapore		3.1
iShares MSCI EAFE Index Fund		1.5	Sweden		2.8
Vivendi		1.5	China		2.6

Holdings and country breakdowns are disclosed as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings and country breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

International investing may involve certain risks, including foreign taxation, currency fluctuation, risks associated with possible differences in financial standards and other monetary and political risks.

A concentration of investments in a specific sector, such as the financials sector, may cause the fund to experience increased volatility.

34

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception	1-year		5-year		10-year
CMG International Stock Fund	02/01/94		-13.82		12.98		5.39
MSCI EAFE Index			-12.19		15.36		5.38
MSCI All Country World ex U.S. Index			-9.30		17.93		7.24

Average annual total return as of June 30, 2008 (%)

	Inception	1-year		5-year		10-year
CMG International Stock Fund	02/01/94		-12.35		14.36		5.77
MSCI EAFE Index			-10.61		16.67		5.83
MSCI All Country World ex U.S. Index			-6.20		19.42		7.73

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.75% and 0.82%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 03/01/09.

Growth of a $3,000,000 investment, August 1, 1998 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $3,000,000 investment in the fund compared to the indices during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI All Country (AC) World ex U.S. Index is an index of global stock market performance that includes developed and emerging markets but excludes the U.S. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

35

UNDERSTANDING YOUR EXPENSES — CMG International Stock Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 – July 31, 2008

Account value at the beginning of the period ($)

Account value at the end of the period ($)

Expenses paid during the period ($)

Fund's annualized expense ratio (%)

Actual

Hypothetical

Actual

Hypothetical

Actual

Hypothetical

Actual

1,000.00

1,000.00

967.28

1,021.13

3.67

3.77

0.75

Expenses paid during the period are equal to the fund's annualized expense ratio of 0.75%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at the end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

36

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	14.53		$	13.52		$	13.49		$	11.97		$	10.73
Income from investment operations:
Net investment income (a)		0.25			0.25			0.23			0.24	(b)		0.17
Net realized and unrealized gain (loss) on investments and futures contracts		(1.94	)		1.88			0.76			1.58			1.13
Total from investment operations		(1.69	)		2.13			0.99			1.82			1.30
Less distributions to shareholders:
From net investment income		(0.22	)		(0.22	)		(0.25	)		(0.20	)		(0.05	)
From net realized gains		(0.43	)		(0.90	)		(0.71	)		(0.10	)		(0.01	)
Total distributions to shareholders		(0.65	)		(1.12	)		(0.96	)		(0.30	)		(0.06	)
Net asset value, end of period	$	12.19		$	14.53		$	13.52		$	13.49		$	11.97
Total return (c)(d)		(12.20	)%		15.87	%		7.56	%		15.32	%		12.08	%
Ratios to average net assets/Supplemental data:
Net expenses before interest expense		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Interest expense		-	%(e)		-	%(e)		-	%(e)		-			-
Net expenses		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Waiver/Reimbursement		0.05	%		0.05	%		0.06	%		0.04	%		0.05	%
Net investment income		1.81	%		1.73	%		1.70	%		1.91	%		1.43	%
Portfolio turnover rate		49	%		45	%		66	%		49	%		60	%
Net assets, end of period (000's)	$	165,206		$	222,698		$	100,973		$	91,633		$	98,247

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.04 per share.

(c)  Total return at net asset value assuming all distributions reinvested.

(d)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(e)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
37

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,												Period Ended July 31,
	2008			2007			2006			2005			2004 (a)
Net asset value, beginning of period	$	12.51		$	11.12		$	11.65		$	10.25		$	10.00
Income from investment operations:
Net investment income (b)		0.07			0.08			0.07			0.12	(c)		0.03
Net realized and unrealized gain (loss) on investments		(0.42	)		2.08			0.14			1.37			0.23
Total from investment operations		(0.35	)		2.16			0.21			1.49			0.26
Less distributions to shareholders:
From net investment income		(0.07	)		(0.08	)		(0.08	)		(0.09	)		(0.01	)
From net realized gains		(0.93	)		(0.69	)		(0.66	)		-			-
Total distributions to shareholders		(1.00	)		(0.77	)		(0.74	)		(0.09	)		(0.01	)
Net asset value, end of period	$	11.16		$	12.51		$	11.12		$	11.65		$	10.25
Total return (d)(e)		(3.57	)%		19.77	%		1.63	%		14.55	%		2.57	%(f)
Ratios to average net assets/Supplemental data:
Net expenses before interest expense		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%(g)
Interest expense		-	%(h)		-			-	%(h)		-			-
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%(g)
Waiver/Reimbursement		0.15	%		0.16	%		0.13	%		0.07	%		0.14	%(g)
Net investment income		0.62	%		0.63	%		0.62	%		1.07	%		0.31	%(g)
Portfolio turnover rate		161	%		179	%		180	%		120	%		114	%(f)
Net assets, end of period (000's)	$	51,230		$	58,978		$	35,765		$	40,312		$	40,684

(a)  The Fund commenced investment operations on September 10, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.

(b)  Per share data was calculated using the average shares outstanding during the period.

(c)  Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.05 per share.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(f)  Not annualized.

(g)  Annualized.

(h)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
38

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,												Period Ended July 31,
	2008			2007			2006			2005			2004 (a)
Net asset value, beginning of period	$	12.30		$	11.89		$	12.54		$	11.09		$	10.00
Income from investment operations:
Net investment income (b)		0.23			0.22			0.22			0.24			0.18
Net realized and unrealized gain (loss) on investments and written options		(1.83	)		1.38			0.92			1.46			0.93
Total from investment operations		(1.60	)		1.60			1.14			1.70			1.11
Less distributions to shareholders:
From net investment income		(0.22	)		(0.22	)		(0.28	)		(0.22	)		(0.02	)
From net realized gains		(1.12	)		(0.97	)		(1.51	)		(0.03	)		-
Total distributions to shareholders		(1.34	)		(1.19	)		(1.79	)		(0.25	)		(0.02	)
Net asset value, end of period	$	9.36		$	12.30		$	11.89		$	12.54		$	11.09
Total return (c)(d)		(14.50	)%		13.69	%		9.85	%(e)		15.41	%(f)		11.15	%(g)
Ratios to average net assets/Supplemental data:
Net expenses		0.50	%		0.50	%		0.50	%		0.50	%		0.50	%(h)
Waiver/Reimbursement		0.20	%		0.18	%		0.13	%		0.07	%		0.14	%(h)
Net investment income		2.09	%		1.78	%		1.78	%		1.99	%		1.86	%(h)
Portfolio turnover rate		57	%		92	%		97	%		45	%		46	%(g)
Net assets, end of period (000's)	$	37,741		$	44,830		$	37,280		$	38,731		$	47,855

(a)  The Fund commenced investment operations on September 10, 2003. Per share data, total return and portfolio turnover rate reflect activity from that date.

(b)  Per share data was calculated using the average shares outstanding during the period.

(c)  Total return at net asset value assuming all distributions reinvested.

(d)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(e)  Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.

(f)  Total return includes a reimbursement of loss experienced by the Fund due to a compliance violation. The reimbursement had an impact of less than 0.01% on the Fund's total return.

(g)  Not annualized.

(h)  Annualized.

See Accompanying Notes to Financial Statements.
39

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Instituional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	16.48		$	14.98		$	14.15		$	11.04		$	10.93
Income from investment operations:
Net investment income (loss) (a)		(0.01	)		0.09			0.01			(0.03	)		(0.05	)
Net realized and unrealized gain on investments, written options and foreign currency		0.06			3.21			1.20			3.14			0.17
Total from investment operations		0.05			3.30			1.21			3.11			0.12
Less distributions to shareholders:
From net investment income		(0.06	)		(0.05	)		-			-			-
From net realized gains		(2.59	)		(1.75	)		(0.38	)		-			(0.01	)
Total distributions to shareholders		(2.65	)		(1.80	)		(0.38	)		-			(0.01	)
Net asset value, end of period	$	13.88		$	16.48		$	14.98		$	14.15		$	11.04
Total return (b)(c)		(0.67	)%		23.22	%		8.56	%		28.17	%		1.06	%
Ratios to average net assets/Supplemental data:
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Waiver/Reimbursement		0.30	%		0.25	%		0.20	%		0.21	%		0.22	%
Net investment income (loss)		(0.08	)%		0.54	%		0.08	%		(0.21	)%		(0.38	)%
Portfolio turnover rate		168	%		152	%		65	%		141	%		169	%
Net assets, end of period (000's)	$	25,012		$	28,674		$	23,636		$	24,881		$	19,284

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

See Accompanying Notes to Financial Statements.
40

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	14.09		$	14.02		$	15.17		$	12.58		$	10.69
Income from investment operations:
Net investment income (a)		0.11			0.22			0.15			0.11			0.07
Net realized and unrealized gain (loss) on investments, written options and foreign currency		(1.80	)		2.34			1.14			2.66			1.84
Total from investment operations		(1.69	)		2.56			1.29			2.77			1.91
Less distributions to shareholders:
From net investment income		(0.22	)		(0.18	)		(0.16	)		(0.09	)		(0.02	)
From net realized gains		(1.28	)		(2.31	)		(2.28	)		(0.09	)		-	(b)
Total distributions to shareholders		(1.50	)		(2.49	)		(2.44	)		(0.18	)		(0.02	)
Net asset value, end of period	$	10.90		$	14.09		$	14.02		$	15.17		$	12.58
Total return (c)(d)		(13.36	)%		19.50	%		9.30	%		22.14	%		17.91	%
Ratios to average net assets/Supplemental data:
Net expenses		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Waiver/Reimbursement		0.44	%		0.36	%		0.25	%		0.19	%		0.20	%
Net investment income		0.85	%		1.49	%		1.02	%		0.78	%		0.54	%
Portfolio turnover rate		51	%		63	%		59	%		59	%		9	%
Net assets, end of period (000's)	$	17,079		$	19,296		$	17,762		$	21,277		$	21,994

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Total return at net asset value assuming all distributions reinvested.

(d)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

See Accompanying Notes to Financial Statements.
41

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	1.95		$	2.03		$	6.57		$	5.07		$	4.62
Income from investment operations:
Net investment loss (a)		-	(b)		(0.01	)		(0.02	)		(0.03	)		(0.03	)
Net realized and unrealized gain on investments, written options and foreign currency		0.05			0.42			0.53	(c)		1.53			0.48
Total from investment operations		0.05			0.41			0.51			1.50			0.45
Less distributions to shareholders:
From net realized gains		(0.28	)		(0.49	)		(5.05	)(d)		-			-
From return of capital		(0.01	)		-			-			-			-
Total distributions to shareholders		(0.29	)		(0.49	)		(5.05	)		-			-
Net asset value, end of period	$	1.71		$	1.95		$	2.03		$	6.57		$	5.07
Total return (e)		1.49	%(f)		22.69	%(f)		10.46	%(f)		29.59	%		9.74	%
Ratios to average net assets/Supplemental data:
Net expenses before interest expense (g)		0.80	%		0.80	%		1.09	%		0.85	%		0.79	%
Interest expense		-	%(h)		-	%(h)		-			-			-
Net expenses (g)		0.80	%		0.80	%		1.09	%		0.85	%		0.79	%
Waiver/Reimbursement		0.26	%		0.27	%		0.21	%		-			-
Net investment loss (g)		(0.21	)%		(0.25	)%		(0.88	)%		(0.61	)%		(0.62	)%
Portfolio turnover rate		191	%		158	%		112	%		119	%		123	%
Net assets, end of period (000's)	$	40,818		$	39,899		$	40,183		$	30,317		$	292,028

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  The amount shown for a share outstanding does not correspond with the aggregate gain (loss) on investments for the period due to timing of sales and repurchases of Fund shares in relation to fluctuating market values of the investments of the Fund.

(d)  Capital gain distributions were declared after significant shareholder redemptions reduced the size of the Fund.

(e)  Total return at net asset value assuming all distributions reinvested.

(f)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(g)  The benefits derived from custody credits had an impact of less than 0.01%.

(h)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
42

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	13.94		$	15.31		$	16.06		$	13.91		$	11.29
Income from investment operations:
Net investment income (a)		0.08			0.11			0.09			0.11			0.11
Net realized and unrealized gain (loss) on investments		(1.08	)		1.82			1.06			3.11			2.79
Total from investment operations		(1.00	)		1.93			1.15			3.22			2.90
Less distributions to shareholders:
From net investment income		(0.13	)		(0.12	)		(0.13	)		(0.10	)		(0.06	)
From net realized gains		(1.75	)		(3.18	)		(1.77	)		(0.97	)		(0.22	)
Total distributions to shareholders		(1.88	)		(3.30	)		(1.90	)		(1.07	)		(0.28	)
Net asset value, end of period	$	11.06		$	13.94		$	15.31		$	16.06		$	13.91
Total return (b)(c)		(7.73	)%		12.82	%		7.90	%(d)		23.57	%		25.79	%
Ratios to average net assets/Supplemental data:
Net expenses before interest expense		0.80	%		0.80	%		0.80	%		0.80	%		0.80	%
Interest expense		0.01	%		0.01	%		-	%(e)		-			-
Net expenses		0.81	%		0.81	%		0.80	%		0.80	%		0.80	%
Waiver/Reimbursement		0.29	%		0.22	%		0.14	%		0.12	%		0.09	%
Net investment income		0.67	%		0.75	%		0.60	%		0.77	%		0.82	%
Portfolio turnover rate		49	%		50	%		37	%		41	%		53	%
Net assets, end of period (000's)	$	26,748		$	31,952		$	33,439		$	36,989		$	40,356

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Total return at net asset value assuming all distributions reinvested.

(c)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(d)  Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.

(e)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
43

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	4.56		$	11.24		$	11.49		$	8.77		$	8.30
Income from investment operations:
Net investment loss (a)		(0.01	)		-	(b)		(0.05	)		(0.04	)		(0.05	)
Net realized and unrealized gain (loss) on investments, written options and   foreign currency		0.14			1.01			1.07			2.76			0.52
Total from investment operations		0.13			1.01			1.02			2.72			0.47
Less distributions to shareholders:
From net realized gains		(0.66	)		(7.69	)(c)		(1.27	)		-			-
Return of capital		(0.03	)		-			-			-			-
Total distributions to shareholders		(0.69	)		(7.69	)		(1.27	)		-			-
Net asset value, end of period	$	4.00		$	4.56		$	11.24		$	11.49		$	8.77
Total return (d)(e)		2.12	%		21.66	%		9.17	%(f)		31.01	%		5.66	%
Ratios to average net assets/Supplemental data:
Net expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Waiver/Reimbursement		0.52	%		0.57	%		0.23	%		0.09	%		0.06	%
Net investment loss		(0.22	)%		(0.01	)%		(0.45	)%		(0.37	)%		(0.49	)%
Portfolio turnover rate		179	%		158	%		109	%		170	%		91	%
Net assets, end of period (000's)	$	11,474		$	12,516		$	8,773		$	38,755		$	50,662

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Rounds to less than $0.01 per share.

(c)  Capital gain distributions were declared in the current year after significant shareholder redemptions reduced the size of the Fund in the prior year.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(f)  Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.

See Accompanying Notes to Financial Statements.
44

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	14.60		$	14.63		$	13.76		$	12.17		$	10.33
Income from investment operations:
Net investment income (a)		0.31	(b)		0.27			0.26			0.19			0.14
Net realized and unrealized gain (loss) on investments, written options, foreign currency and foreign capital gains tax		(2.14	)		2.98			2.85			1.79			1.76
Total from investment operations		(1.83	)		3.25			3.11			1.98			1.90
Less distributions to shareholders:
From net investment income		(0.47	)		(0.36	)		(0.27	)		(0.10	)		(0.06	)
From net realized gains		(1.65	)		(2.92	)		(1.97	)		(0.29	)		-
Total distributions to shareholders		(2.12	)		(3.28	)		(2.24	)		(0.39	)		(0.06	)
Net asset value, end of period	$	10.65		$	14.60		$	14.63		$	13.76		$	12.17
Total return (c)(d) .		(13.82	)%(e)		24.77	%(e)		24.31	%		16.31	%		18.40	%
Ratios to average net assets/Supplemental data:
Net expenses before interest expense		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Interest expense		-	%(f)		0.01	%		0.01	%		-			-
Net expenses		0.75	%		0.76	%		0.76	%		0.75	%		0.75	%
Waiver/Reimbursement		0.08	%		0.07	%		0.06	%		0.03	%		0.05	%
Net investment income		2.51	%		1.87	%		1.84	%		1.47	%		1.16	%
Portfolio turnover rate		62	%		80	%		86	%		68	%		91	%
Net assets, end of period (000's)	$	91,740		$	120,314		$	105,738		$	136,144		$	152,251

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.03 per share.

(c)  Total return at net asset value assuming all distributions reinvested.

(d)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(e)  Total return includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement had an impact of less than 0.01% on the Fund's total return.

(f)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.
45

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (97.9%)
Consumer Discretionary (8.1%)
Diversified Consumer Services (0.9%)
Apollo Group, Inc., Class A (a)		16,200	$	1,009,098
H&R Block, Inc.		19,700		479,301
				1,488,399
Hotels, Restaurants & Leisure (1.5%)
Darden Restaurants, Inc.		5,300		172,621
McDonald's Corp.		21,800		1,303,422
Wyndham Worldwide Corp.		37,000		663,780
Yum! Brands, Inc.		10,900		390,438
				2,530,261
Internet & Catalog Retail (0.2%)
Expedia, Inc. (a)		10,700		209,399
IAC/InterActiveCorp (a)		1,500		26,190
				235,589
Media (2.9%)
CBS Corp., Class B		31,000		507,160
DIRECTV Group, Inc. (a)(b)		48,200		1,302,364
Gannett Co., Inc.		17,400		315,288
McGraw-Hill Companies, Inc. (b)		6,300		256,221
New York Times Co., Class A (b)		2,200		27,698
Omnicom Group, Inc.		4,400		187,836
Time Warner, Inc.		56,700		811,944
Viacom, Inc., Class B (a)		25,600		715,008
Walt Disney Co.		21,200		643,420
				4,766,939
Specialty Retail (2.2%)
Abercrombie & Fitch Co., Class A (b)		1,900		104,918
Autozone, Inc. (a)		3,100		403,899
Best Buy Co., Inc. (b)		25,000		993,000
GameStop Corp., Class A (a)		7,500		303,825
Gap, Inc.		50,400		812,448
Home Depot, Inc.		24,800		590,984
Lowe's Companies, Inc.		100		2,032
RadioShack Corp.		24,300		405,324
Sherwin-Williams Co. (b)		200		10,650
TJX Companies, Inc.		2,100		70,791
				3,697,871
Textiles, Apparel & Luxury Goods (0.4%)
Coach, Inc. (a)		28,000		714,280
				13,433,339
Consumer Staples (11.0%)
Beverages (2.1%)
Brown-Forman Corp., Class B		200		14,392
Coca-Cola Co.		31,700		1,632,550
PepsiCo, Inc.		28,000		1,863,680
				3,510,622

See Accompanying Notes to Financial Statements.
46

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Food & Staples Retailing (2.0%)
CVS Caremark Corp.		22,100	$	806,650
Kroger Co.		14,400		407,232
SUPERVALU, Inc.		31,000		794,220
Sysco Corp. (b)		5,600		158,816
Wal-Mart Stores, Inc.		20,500		1,201,710
				3,368,628
Food Products (0.6%)
General Mills, Inc.		4,000		257,560
Kellogg Co.		6,400		339,584
Kraft Foods, Inc., Class A		9,900		315,018
Sara Lee Corp.		2,700		36,882
				949,044
Household Products (2.8%)
Clorox Co.		4,500		245,250
Colgate-Palmolive Co.		5,100		378,777
Kimberly-Clark Corp.		14,700		850,101
Procter & Gamble Co.		47,200		3,090,656
				4,564,784
Personal Products (0.1%)
Avon Products, Inc.		3,200		135,680
Estee Lauder Companies, Inc., Class A (b)		1,300		57,330
				193,010
Tobacco (3.4%)
Altria Group, Inc.		131,900		2,684,165
Philip Morris International, Inc.		38,000		1,962,700
Reynolds American, Inc. (b)		17,500		977,025
				5,623,890
				18,209,978
Energy (14.1%)
Energy Equipment & Services (1.5%)
BJ Services Co.		3,000		88,200
ENSCO International, Inc.		9,300		643,002
Halliburton Co.		12,500		560,250
National-Oilwell Varco, Inc. (a)		800		62,904
Schlumberger Ltd.		11,100		1,127,760
				2,482,116
Oil, Gas & Consumable Fuels (12.6%)
Anadarko Petroleum Corp.		11,200		648,592
Apache Corp.		7,300		818,841
Chevron Corp.		39,800		3,365,488
ConocoPhillips		30,000		2,448,600
EOG Resources, Inc.		5,600		562,968
Exxon Mobil Corp.		83,600		6,723,948
Hess Corp.		12,300		1,247,220
Marathon Oil Corp.		20,000		989,400
Noble Energy, Inc.		2,000		147,740

See Accompanying Notes to Financial Statements.
47

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Oil, Gas & Consumable Fuels (continued)
Occidental Petroleum Corp.		19,100	$	1,505,653
Sunoco, Inc. (b)		21,800		885,298
Tesoro Corp. (b)		7,500		115,800
Valero Energy Corp.		38,400		1,282,944
				20,742,492
				23,224,608
Financials (14.5%)
Capital Markets (3.3%)
Bank of New York Mellon Corp.		7,100		252,050
Charles Schwab Corp.		35,600		814,884
Federated Investors, Inc., Class B		1,500		49,290
Franklin Resources, Inc.		3,700		372,257
Goldman Sachs Group, Inc.		9,700		1,785,188
Janus Capital Group, Inc.		12,500		379,250
Lehman Brothers Holdings, Inc. (b)(e)		9,300		161,262
Merrill Lynch & Co., Inc. (b)		4,300		114,595
Morgan Stanley		27,200		1,073,856
Northern Trust Corp.		4,600		359,582
State Street Corp.		1,300		93,132
				5,455,346
Commercial Banks (1.3%)
BB&T Corp. (b)		1,700		47,634
Regions Financial Corp. (b)		2,500		23,700
U.S. Bancorp		24,400		746,884
Wachovia Corp. (b)		5,200		89,804
Wells Fargo & Co. (b)		39,100		1,183,557
				2,091,579
Consumer Finance (0.4%)
American Express Co.		14,600		541,952
Capital One Financial Corp. (b)		1,400		58,604
				600,556
Diversified Financial Services (1.5%)
Citigroup, Inc.		15,600		291,564
JPMorgan Chase & Co.		52,300		2,124,949
Moody's Corp. (b)		100		3,481
				2,419,994
Insurance (5.4%)
ACE Ltd.		7,000		354,900
AFLAC, Inc.		8,000		444,880
Allstate Corp.		12,600		582,372
American International Group, Inc.		52,800		1,375,440
Assurant, Inc.		4,900		294,588
Chubb Corp.		14,600		701,384
Genworth Financial, Inc., Class A		1,300		20,761
Hartford Financial Services Group, Inc.		10,300		652,917
Lincoln National Corp.		2,800		133,560
Loews Corp. (b)		15,400		686,224

See Accompanying Notes to Financial Statements.
48

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Insurance (continued)
MetLife, Inc.		22,700	$	1,152,479
Principal Financial Group, Inc.		2,500		106,275
Prudential Financial, Inc.		17,000		1,172,490
Travelers Companies, Inc.		25,900		1,142,708
XL Capital Ltd., Class A (b)		9,600		171,744
				8,992,722
Real Estate Investment Trusts (REITs) (2.4%)
Developers Diversified Realty Corp. (b)		7,800		249,288
Equity Residential Property Trust		23,000		992,910
General Growth Properties, Inc. (b)		1,700		46,597
Host Hotels & Resorts, Inc. (b)		66,900		877,059
ProLogis (b)		16,400		801,632
Public Storage		8,900		728,821
Simon Property Group, Inc.		2,900		268,627
				3,964,934
Thrifts & Mortgage Finance (0.2%)
Hudson City Bancorp, Inc.		23,800		434,588
				23,959,719
Health Care (12.7%)
Biotechnology (2.8%)
Amgen, Inc. (a)		34,400		2,154,472
Biogen Idec, Inc. (a)		15,000		1,046,400
Genzyme Corp. (a)		400		30,660
Gilead Sciences, Inc. (a)		25,500		1,376,490
				4,608,022
Health Care Equipment & Supplies (2.0%)
Baxter International, Inc.		11,400		782,154
Boston Scientific Corp. (a)		11,500		136,735
Covidien Ltd.		6,600		324,984
Medtronic, Inc.		37,100		1,959,993
St. Jude Medical, Inc. (a)		800		37,264
Zimmer Holdings, Inc. (a)		500		34,455
				3,275,585
Health Care Providers & Services (1.8%)
Aetna, Inc.		8,400		344,484
AmerisourceBergen Corp.		10,000		418,700
Cardinal Health, Inc.		5,900		317,007
Express Scripts, Inc. (a)		2,200		155,188
UnitedHealth Group, Inc.		19,400		544,752
WellPoint, Inc. (a)		24,400		1,279,780
				3,059,911
Life Sciences Tools & Services (0.6%)
Applied Biosystems, Inc.		9,600		354,528
PerkinElmer, Inc.		3,500		101,850
Thermo Fisher Scientific, Inc. (a)		9,900		599,148
				1,055,526

See Accompanying Notes to Financial Statements.
49

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Pharmaceuticals (5.5%)
Abbott Laboratories		13,600	$	766,224
Bristol-Myers Squibb Co.		9,200		194,304
Eli Lilly & Co.		5,800		273,238
Forest Laboratories, Inc. (a)		22,900		813,179
Johnson & Johnson		48,600		3,327,642
King Pharmaceuticals, Inc. (a)		15,000		172,650
Merck & Co., Inc.		17,600		579,040
Pfizer, Inc.		156,400		2,919,988
				9,046,265
				21,045,309
Industrials (11.0%)
Aerospace & Defense (3.7%)
Boeing Co.		29,000		1,772,190
Honeywell International, Inc.		10,200		518,568
L-3 Communications Holdings, Inc.		4,800		473,712
Lockheed Martin Corp.		5,900		615,547
Northrop Grumman Corp.		20,300		1,368,017
Raytheon Co.		10,100		574,993
United Technologies Corp.		12,600		806,148
				6,129,175
Air Freight & Logistics (1.0%)
C.H. Robinson Worldwide, Inc.		100		4,820
FedEx Corp.		3,900		307,476
United Parcel Service, Inc., Class B		20,600		1,299,448
				1,611,744
Commercial Services & Supplies (0.0%)
Robert Half International, Inc.		700		17,703
Construction & Engineering (0.7%)
Fluor Corp. (b)		4,400		357,940
Jacobs Engineering Group, Inc. (a)(b)		10,200		788,868
				1,146,808
Electrical Equipment (0.7%)
Emerson Electric Co.		9,100		443,170
Rockwell Automation, Inc.		17,900		796,729
				1,239,899
Industrial Conglomerates (3.0%)
3M Co.		11,900		837,641
General Electric Co.		90,900		2,571,561
Tyco International Ltd.		33,100		1,474,936
				4,884,138
Machinery (1.3%)
Caterpillar, Inc. (b)		11,000		764,720
Ingersoll-Rand Co., Ltd., Class A		24,400		878,400
ITT Corp.		400		26,784

See Accompanying Notes to Financial Statements.
50

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Machinery (continued)
Paccar, Inc.		100	$	4,206
Parker Hannifin Corp.		2,500		154,200
Terex Corp. (a)		7,400		350,242
				2,178,552
Road & Rail (0.5%)
Norfolk Southern Corp.		5,100		366,792
Ryder System, Inc.		7,300		481,508
				848,300
Trading Companies & Distributors (0.1%)
W.W. Grainger, Inc. (b)		1,200		107,412
				18,163,731
Information Technology (15.9%)
Communications Equipment (1.9%)
Cisco Systems, Inc. (a)		94,500		2,078,055
Juniper Networks, Inc. (a)		9,500		247,285
QUALCOMM, Inc.		15,800		874,372
				3,199,712
Computers & Peripherals (4.5%)
Apple, Inc. (a)		7,300		1,160,335
Dell, Inc. (a)		30,500		749,385
Hewlett-Packard Co.		45,400		2,033,920
International Business Machines Corp.		22,800		2,917,944
Lexmark International, Inc., Class A (a)(b)		11,000		385,880
Sun Microsystems, Inc. (a)(b)		22,400		238,112
				7,485,576
Internet Software & Services (1.4%)
eBay, Inc. (a)		69,500		1,749,315
Google, Inc., Class A (a)		900		426,375
Yahoo!, Inc. (a)		5,200		103,428
				2,279,118
IT Services (0.3%)
Western Union Co.		16,000		442,240
Semiconductors & Semiconductor Equipment (3.2%)
Applied Materials, Inc.		45,600		789,792
Intel Corp.		66,400		1,473,416
Linear Technology Corp. (b)		6,900		214,245
MEMC Electronic Materials, Inc. (a)		22,100		1,021,241
National Semiconductor Corp.		800		16,760
NVIDIA Corp. (a)		17,100		195,624
Texas Instruments, Inc.		63,000		1,535,940
				5,247,018
Software (4.6%)
Autodesk, Inc. (a)		21,200		676,068
Compuware Corp. (a)		16,700		183,700
Microsoft Corp. (c)		181,800		4,675,896

See Accompanying Notes to Financial Statements.
51

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Software (continued)
Oracle Corp. (a)		73,600	$	1,584,608
Symantec Corp. (a)		21,700		457,219
				7,577,491
				26,231,155
Materials (3.8%)
Chemicals (1.9%)
Dow Chemical Co.		25,000		832,750
E.I. Du Pont de Nemours & Co. (b)		9,800		429,338
Monsanto Co.		9,900		1,179,189
PPG Industries, Inc. (b)		1,200		72,768
Rohm and Haas Co.		7,900		592,500
				3,106,545
Metals & Mining (1.6%)
AK Steel Holding Corp.		2,100		133,350
Alcoa, Inc.		6,300		212,625
Allegheny Technologies, Inc. (b)		6,700		316,843
Freeport-McMoRan Copper & Gold, Inc.		11,300		1,093,275
Nucor Corp.		12,800		732,416
United States Steel Corp.		700		112,252
				2,600,761
Paper & Forest Products (0.3%)
International Paper Co.		22,300		618,156
				6,325,462
Telecommunication Services (3.1%)
Diversified Telecommunication Services (2.9%)
AT&T, Inc.		88,300		2,720,523
CenturyTel, Inc.		300		11,157
Embarq Corp.		4,500		205,965
Qwest Communications International, Inc. (b)		66,700		255,461
Verizon Communications, Inc.		48,100		1,637,324
				4,830,430
Wireless Telecommunication Services (0.2%)
American Tower Corp., Class A (a)		400		16,760
Sprint Nextel Corp.		33,600		273,504
				290,264
				5,120,694
Utilities (3.7%)
Electric Utilities (2.3%)
American Electric Power Co., Inc.		1,800		71,100
Duke Energy Corp.		4,900		86,142
Edison International		21,000		1,015,140
Exelon Corp.		3,200		251,584
FirstEnergy Corp.		16,400		1,206,220
FPL Group, Inc.		4,800		309,744

See Accompanying Notes to Financial Statements.
52

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Electric Utilities (continued)
Pepco Holdings, Inc.		28,300	$	705,802
Pinnacle West Capital Corp.		2,000		67,140
Progress Energy, Inc.		200		8,462
				3,721,334
Gas Utilities (0.0%)
Questar Corp.		400		21,152
Independent Power Producers & Energy Traders (0.7%)
Constellation Energy Group, Inc.		13,300		1,106,028
Multi-Utilities (0.7%)
CenterPoint Energy, Inc.		14,000		220,780
Integrys Energy Group, Inc. (b)		6,400		326,784
NiSource, Inc. (b)		100		1,708
PG&E Corp.		1,200		46,236
Public Service Enterprise Group, Inc.		14,000		585,200
				1,180,708
				6,029,222
Total Common Stocks (Cost of $166,202,308)				161,743,217
Securities Lending Collateral (7.9%)
State Street Navigator Securities Lending Prime Portfolio (d) (7 day yield of 2.654%)		13,161,109		13,161,109
Total Securities Lending Collateral (Cost of $13,161,109)				13,161,109
	Par
Short-Term Obligation (1.8%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08, at 2.070%, collateralized by a U.S. Government Agency Obligation maturing 05/06/10, market value $2,979,825 (repurchase proceeds $2,920,168)	$	2,920,000		2,920,000
Total Short-Term Obligation (Cost of $2,920,000)				2,920,000
Total Investments (107.6%) (Cost of $182,283,417) (f)				177,824,326
Obligation to Return Collateral for Securities Loaned (-7.9%)				(13,161,109	)
Other Assets & Liabilities, Net (0.3%)				543,156
Net Assets (100.0%)			$	165,206,373

See Accompanying Notes to Financial Statements.
53

CMG ENHANCED S&P 500^® INDEX FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  All or a portion of this security was on loan at July 31, 2008. The total market value of securities on loan at July 31, 2008 is $12,577,303.

(c)  The security or a portion of the security is pledged as collateral for open futures contracts. At July 31, 2008, the total market value of securities pledged amounted to $1,131,680.

(d)  Investment made with cash collateral received from securities lending activity.

(e)  The issuer filed for bankruptcy protection under Chapter 11 on September 15, 2008.

(f)  Cost for federal income tax purposes is $182,499,201.

At July 31, 2008, the Fund held the following open long futures contract:

Type	Number of Contracts		Value		Aggregate Face Value		Expiration Date	Unrealized Appreciation
S&P 500 Index		11	$	3,484,525	$	3,476,205	Sep-08	$	8,320

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Information Technology		15.9
Financials		14.5
Energy		14.1
Health Care		12.7
Consumer Staples		11.0
Industrials		11.0
Consumer Discretionary		8.1
Materials		3.8
Utilities		3.7
Telecommunication Services		3.1
		97.9
Securities Lending Collateral		7.9
Short-Term Obligation		1.8
Obligation to Return Collateral for Securities Loaned		(7.9	)
Other Assets & Liabilities, Net		0.3
		100.0

See Accompanying Notes to Financial Statements.
54

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (98.1%)
Consumer Discretionary (8.4%)
Hotels, Restaurants & Leisure (1.6%)
Burger King Holdings, Inc. (a)		15,780	$	423,377
McDonald's Corp.		6,250		373,688
				797,065
Media (2.7%)
Comcast Corp., Class A		13,890		286,412
DIRECTV Group, Inc. (a)(b)		28,880		780,337
McGraw-Hill Companies, Inc.		7,610		309,499
				1,376,248
Multiline Retail (0.5%)
Kohl's Corp. (a)(b)		6,560		274,929
Specialty Retail (2.6%)
Best Buy Co., Inc. (a)		5,940		235,937
Dick's Sporting Goods, Inc. (a)(b)		9,480		166,374
Staples, Inc. (a)		22,520		506,700
Urban Outfitters, Inc. (a)(b)		12,930		426,819
				1,335,830
Textiles, Apparel & Luxury Goods (1.0%)
Hanesbrands, Inc. (a)(b)		3,690		79,114
NIKE, Inc., Class B		7,290		427,777
				506,891
				4,290,963
Consumer Staples (11.2%)
Beverages (2.1%)
Molson Coors Brewing Co., Class B (a)		9,560		515,953
PepsiCo, Inc.		8,850		589,056
				1,105,009
Food & Staples Retailing (4.4%)
BJ's Wholesale Club, Inc. (a)(b)		11,520		432,345
CVS Caremark Corp.		9,930		362,445
Kroger Co.		11,970		338,512
Wal-Mart Stores, Inc.		19,160		1,123,159
				2,256,461
Food Products (2.2%)
Cadbury PLC, ADR (a)		4,049		191,801
General Mills, Inc. (a)		6,150		395,999
H.J. Heinz Co.		11,030		555,691
				1,143,491
Household Products (0.8%)
Procter & Gamble Co.		6,020		394,190
Tobacco (1.7%)
Philip Morris International, Inc.		16,730		864,105
				5,763,256

See Accompanying Notes to Financial Statements.
55

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Energy (10.6%)
Energy Equipment & Services (6.4%)
Halliburton Co. (a)		14,200	$	636,444
Nabors Industries Ltd. (a)(b)		14,500		528,670
Schlumberger Ltd.		9,760		991,616
Transocean, Inc. (b)		4,935		671,308
Weatherford International Ltd. (b)		12,570		474,266
				3,302,304
Oil, Gas & Consumable Fuels (4.2%)
CONSOL Energy, Inc. (a)		4,700		349,633
Devon Energy Corp.		2,590		245,765
El Paso Corp. (a)		25,380		455,064
Hess Corp.		3,950		400,530
Occidental Petroleum Corp.		4,270		336,604
Petroleo Brasileiro SA, ADR		6,590		368,447
				2,156,043
				5,458,347
Financials (4.3%)
Capital Markets (4.3%)
Goldman Sachs Group, Inc.		3,390		623,896
Janus Capital Group, Inc. (a)		13,520		410,197
State Street Corp.		5,250		376,110
TD Ameritrade Holding Corp. (b)		20,250		403,177
Waddell & Reed Financial, Inc., Class A		11,210		374,414
				2,187,794
Health Care (13.7%)
Biotechnology (5.1%)
Amgen, Inc. (b)		12,350		773,480
BioMarin Pharmaceuticals, Inc. (a)(b)		6,180		201,159
Celgene Corp. (b)		8,900		671,861
Genentech, Inc. (b)		7,260		691,515
Gilead Sciences, Inc. (b)		4,920		265,582
				2,603,597
Health Care Equipment & Supplies (2.0%)
Baxter International, Inc.		8,390		575,638
Covidien Ltd. (a)		7,330		360,929
Edwards Lifesciences Corp. (a)(b)		1,310		82,111
				1,018,678
Health Care Providers & Services (1.0%)
Express Scripts, Inc. (b)		7,440		524,818
Life Sciences Tools & Services (1.8%)
Covance, Inc. (a)(b)		4,780		438,804
Thermo Fisher Scientific, Inc. (b)		7,631		461,828
				900,632

See Accompanying Notes to Financial Statements.
56

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Pharmaceuticals (3.8%)
Johnson & Johnson (a)		13,470	$	922,291
Schering-Plough Corp. (a)		11,220		236,517
Teva Pharmaceutical Industries Ltd., ADR		7,200		322,848
Wyeth		12,090		489,887
				1,971,543
				7,019,268
Industrials (13.1%)
Aerospace & Defense (3.1%)
Goodrich Corp.		8,160		400,982
Honeywell International, Inc.		12,950		658,378
Raytheon Co. (a)		9,280		528,311
				1,587,671
Commercial Services & Supplies (1.1%)
Dun & Bradstreet Corp. (a)		5,780		558,579
Construction & Engineering (0.9%)
Quanta Services, Inc. (a)(b)		14,800		457,024
Electrical Equipment (0.5%)
First Solar, Inc. (b)		800		228,088
Industrial Conglomerates (0.7%)
General Electric Co.		12,310		348,250
Machinery (5.5%)
Caterpillar, Inc. (a)		4,990		346,905
Cummins, Inc.		5,210		345,631
Eaton Corp. (a)		3,110		220,934
Harsco Corp.		5,320		287,812
Illinois Tool Works, Inc. (a)		8,230		385,576
Joy Global, Inc.		6,800		491,096
SPX Corp. (a)		5,960		755,609
				2,833,563
Road & Rail (1.3%)
Union Pacific Corp.		8,330		686,725
				6,699,900
Information Technology (29.7%)
Communications Equipment (5.9%)
Cisco Systems, Inc. (b)		43,890		965,141
Corning, Inc.		21,850		437,219
QUALCOMM, Inc.		29,400		1,626,996
				3,029,356

See Accompanying Notes to Financial Statements.
57

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Computers & Peripherals (8.1%)
Apple, Inc. (b)		7,230	$	1,149,208
Dell, Inc. (b)		13,870		340,786
EMC Corp. (a)(b)		31,250		469,063
Hewlett-Packard Co.		19,670		881,216
International Business Machines Corp. (a)		10,290		1,316,914
				4,157,187
Electronic Equipment & Instruments (0.9%)
Dolby Laboratories, Inc., Class A (b)		4,740		192,871
FLIR Systems, Inc. (a)(b)		6,740		274,587
				467,458
Internet Software & Services (3.2%)
Equinix, Inc. (a)(b)		3,960		322,185
Google, Inc., Class A (b)		2,528		1,197,640
VeriSign, Inc. (a)(b)		3,420		111,287
				1,631,112
IT Services (1.5%)
Accenture Ltd., Class A		10,860		453,514
MasterCard, Inc., Class A (a)		1,290		314,953
				768,467
Semiconductors & Semiconductor Equipment (3.6%)
Applied Materials, Inc. (a)		19,290		334,103
Broadcom Corp., Class A (b)		13,560		329,373
Intel Corp.		30,390		674,354
Intersil Corp., Class A (a)		10,280		248,056
Microchip Technology, Inc. (a)		8,360		266,935
				1,852,821
Software (6.5%)
Activision Blizzard, Inc. (b)		16,740		602,305
BMC Software, Inc. (a)(b)		10,270		337,780
Microsoft Corp.		43,450		1,117,534
Oracle Corp. (b)		46,520		1,001,576
Salesforce.com, Inc. (a)(b)		4,040		257,712
				3,316,907
				15,223,308
Materials (3.7%)
Chemicals (1.5%)
Monsanto Co.		4,228		503,597
Praxair, Inc. (a)		2,940		275,566
				779,163
Metals & Mining (2.2%)
Freeport-McMoRan Copper & Gold, Inc.		4,880		472,140
Goldcorp, Inc.		6,470		241,655
United States Steel Corp.		2,390		383,260
				1,097,055
				1,876,218

See Accompanying Notes to Financial Statements.
58

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Telecommunication Services (2.3%)
Wireless Telecommunication Services (2.3%)
American Tower Corp., Class A (b)		14,400	$	603,360
NII Holdings, Inc. (a)(b)		10,370		566,824
				1,170,184
Utilities (1.1%)
Electric Utilities (1.1%)
Entergy Corp.		5,540		592,337
Total Common Stocks (Cost of $46,749,328)				50,281,575
Securities Lending Collateral (23.2%)
State Street Navigator Securities Lending Prime Portfolio (c) (7 day yield of 2.654%)		11,888,773		11,888,773
Total Securities Lending Collateral (Cost of $11,888,773)				11,888,773
	Par
Short-Term Obligation (2.1%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 05/15/13, market value $1,091,400 (repurchase proceeds $1,070,059)	$	1,070,000		1,070,000
Total Short-Term Obligation (Cost of $1,070,000)				1,070,000
Total Investments (123.4%) (Cost of $59,708,101) (d)				63,240,348
Obligation to Return Collateral for Securities Loaned (-23.2%)				(11,888,773	)
Other Assets & Liabilities, Net (-0.2%)				(121,102	)
Net Assets (100.0%)			$	51,230,473

Notes to Schedule of Investments:

(a)  All or a portion of this security was on loan at July 31, 2008. The total market value of securities on loan at July 31, 2008 is $11,131,590.

(b)  Non-income producing security.

(c)  Investment made with cash collateral received from securities lending activity.

(d)  Cost for federal income tax purposes is $59,913,870.

See Accompanying Notes to Financial Statements.
59

CMG LARGE CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Information Technology		29.7
Health Care		13.7
Industrials		13.1
Consumer Staples		11.2
Energy		10.6
Consumer Discretionary		8.4
Financials		4.3
Materials		3.7
Telecommunication Services		2.3
Utilities		1.1
		98.1
Securities Lending Collateral		23.2
Short-Term Obligation		2.1
Obligation to Return Collateral for Securities Loaned		(23.2	)
Other Assets & Liabilities, Net		(0.2	)
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.
60

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (96.3%)
Consumer Discretionary (7.0%)
Hotels, Restaurants & Leisure (2.1%)
Carnival Corp. (a)		10,800	$	398,952
McDonald's Corp.		6,666		398,560
				797,512
Multiline Retail (2.2%)
Kohl's Corp. (a)(b)		10,800		452,628
Macy's, Inc. (a)		19,900		374,319
				826,947
Specialty Retail (1.3%)
Lowe's Companies, Inc. (a)		24,100		489,712
Textiles, Apparel & Luxury Goods (1.4%)
V.F. Corp. (a)		7,300		522,534
				2,636,705
Consumer Staples (12.0%)
Beverages (1.6%)
Anheuser-Busch Companies, Inc. (a)		3,000		203,280
Diageo PLC, ADR		5,399		379,982
				583,262
Food & Staples Retailing (1.6%)
Sysco Corp. (a)		11,600		328,976
Wal-Mart Stores, Inc.		4,900		287,238
				616,214
Food Products (2.6%)
ConAgra Foods, Inc.		24,200		524,656
Smithfield Foods, Inc. (a)(b)		12,500		268,500
Tyson Foods, Inc., Class A		11,800		175,820
				968,976
Household Products (1.5%)
Procter & Gamble Co.		8,700		569,676
Personal Products (1.7%)
Avon Products, Inc.		15,365		651,476
Tobacco (3.0%)
Lorillard, Inc. (a)(b)		10,500		704,655
Philip Morris International, Inc.		8,329		430,193
				1,134,848
				4,524,452
Energy (14.4%)
Energy Equipment & Services (2.0%)
Halliburton Co.		7,954		356,499
Smith International, Inc. (a)		2,300		171,074
Weatherford International Ltd. (b)		6,200		233,926
				761,499

See Accompanying Notes to Financial Statements.
61

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Oil, Gas & Consumable Fuels (12.4%)
Chevron Corp.		6,700	$	566,552
ConocoPhillips (a)		10,507		857,581
El Paso Corp. (a)		14,500		259,985
Exxon Mobil Corp.		22,535		1,812,490
Hess Corp.		4,200		425,880
Newfield Exploration Co. (b)		3,700		181,226
Occidental Petroleum Corp.		4,900		386,267
Valero Energy Corp. (a)		5,875		196,284
				4,686,265
				5,447,764
Financials (27.9%)
Capital Markets (3.9%)
Goldman Sachs Group, Inc.		2,400		441,696
Merrill Lynch & Co., Inc. (a)		8,700		231,855
Morgan Stanley (a)		7,000		276,360
State Street Corp.		7,100		508,644
				1,458,555
Commercial Banks (8.9%)
PNC Financial Services Group, Inc. (a)		7,700		548,933
SunTrust Banks, Inc. (a)		9,100		373,646
U.S. Bancorp (a)		33,446		1,023,782
Wachovia Corp. (a)		14,122		243,887
Wells Fargo & Co. (a)		38,956		1,179,198
				3,369,446
Diversified Financial Services (5.9%)
Citigroup, Inc. (a)		32,685		610,883
JPMorgan Chase & Co. (a)		39,400		1,600,822
				2,211,705
Insurance (6.4%)
ACE Ltd.		16,000		811,200
Hartford Financial Services Group, Inc. (a)		5,655		358,470
Loews Corp. (a)		11,400		507,984
Marsh & McLennan Companies, Inc. (a)		12,800		361,600
Prudential Financial, Inc. (a)		5,400		372,438
				2,411,692
Real Estate Investment Trusts (REITs) (2.8%)
General Growth Properties, Inc. (a)		8,600		235,726
Plum Creek Timber Co., Inc. (a)		8,900		433,608
Rayonier, Inc. (a)		8,400		392,448
				1,061,782
				10,513,180
Health Care (8.9%)
Biotechnology (2.2%)
Amgen, Inc. (b)		13,200		826,716

See Accompanying Notes to Financial Statements.
62

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Health Care Providers & Services (1.9%)
CIGNA Corp.		7,631	$	282,500
Medco Health Solutions, Inc. (b)		8,400		416,472
				698,972
Life Sciences Tools & Services (1.3%)
Thermo Fisher Scientific, Inc. (b)		8,000		484,160
Pharmaceuticals (3.5%)
Johnson & Johnson (a)		15,500		1,061,285
Merck & Co., Inc.		8,300		273,070
				1,334,355
				3,344,203
Industrials (7.8%)
Aerospace & Defense (3.7%)
Goodrich Corp.		5,100		250,614
L-3 Communications Holdings, Inc. (a)		4,850		478,646
United Technologies Corp.		10,696		684,330
				1,413,590
Construction & Engineering (0.4%)
KBR, Inc.		5,500		156,750
Industrial Conglomerates (2.8%)
General Electric Co.		31,392		888,080
McDermott International, Inc. (b)		3,170		151,114
				1,039,194
Machinery (0.9%)
Eaton Corp.		4,600		326,784
				2,936,318
Information Technology (5.4%)
Computers & Peripherals (3.2%)
EMC Corp. (b)		28,000		420,280
Hewlett-Packard Co.		17,600		788,480
				1,208,760
IT Services (0.3%)
Visa, Inc., Class A (a)(b)		1,804		131,800
Semiconductors & Semiconductor Equipment (1.4%)
Intel Corp. (a)		13,600		301,784
Intersil Corp., Class A (a)		9,700		234,061
				535,845
Software (0.5%)
BMC Software, Inc. (a)(b)		5,300		174,317
				2,050,722

See Accompanying Notes to Financial Statements.
63

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Materials (3.2%)
Chemicals (0.9%)
E.I. Du Pont de Nemours & Co. (a)		7,700	$	337,337
Metals & Mining (1.8%)
Alcoa, Inc.		9,500		320,625
Allegheny Technologies, Inc. (a)		1,300		61,477
Freeport-McMoRan Copper & Gold, Inc.		1,300		125,775
Nucor Corp. (a)		3,200		183,104
				690,981
Paper & Forest Products (0.5%)
Weyerhaeuser Co. (a)		3,700		197,802
				1,226,120
Telecommunication Services (4.4%)
Diversified Telecommunication Services (4.4%)
AT&T, Inc.		39,857		1,227,994
Verizon Communications, Inc. (a)		12,370		421,075
				1,649,069
Utilities (5.3%)
Electric Utilities (3.5%)
Exelon Corp.		5,600		440,272
FPL Group, Inc. (a)		8,300		535,599
PPL Corp.		7,400		347,504
				1,323,375
Multi-Utilities (1.8%)
PG&E Corp. (a)		7,033		270,981
Public Service Enterprise Group, Inc.		10,086		421,595
				692,576
				2,015,951
Total Common Stocks (Cost of $36,492,057)				36,344,484
Convertible Preferred Stocks (0.4%)
Health Care (0.4%)
Pharmaceuticals (0.4%)
Schering-Plough Corp., 6.000%		800		156,920
Total Convertible Preferred Stocks (Cost of $212,152)				156,920
Securities Lending Collateral (27.8%)
State Street Navigator Securities Lending Prime Portfolio (c) (7 day yield of 2.654%)		10,510,738		10,510,738
Total Securities Lending Collateral (Cost of $10,510,738)				10,510,738

See Accompanying Notes to Financial Statements.
64

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Short-Term Obligation (2.7%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 02/12/15, market value $1,039,775 (repurchase proceeds $1,015,056)	$	1,015,000	$	1,015,000
Total Short-Term Obligation (Cost of $1,015,000)				1,015,000
Total Investments (127.2%) (Cost of $48,229,947) (d)				48,027,142
Obligation to Return Collateral for Securities Loaned (-27.8%)				(10,510,738	)
Other Assets & Liabilities, Net (0.6%)				224,224
Net Assets (100.0%)			$	37,740,628

Notes to Schedule of Investments:

(a)  All or a portion of this security was on loan at July 31, 2008. The total market value of securities on loan at July 31, 2008 is $10,183,653.

(b)  Non-income producing security.

(c)  Investment made with cash collateral received from securities lending activity.

(d)  Cost for federal income tax purposes is $48,243,024.

For the year ended July 31, 2008, transactions in written option contracts were as follows:

	Number of contracts			Premium received
Options outstanding at July 31, 2007		-		$	-
Options written		161			39,995
Options exercised		(52	)		(9,931	)
Options expired		(86	)		(24,905	)
Options bought back		(23	)		(5,159	)
Options outstanding at July 31, 2008		-		$	-

See Accompanying Notes to Financial Statements.
65

CMG LARGE CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Financials		27.9
Energy		14.4
Consumer Staples		12.0
Health Care		9.3
Industrials		7.8
Consumer Discretionary		7.0
Information Technology		5.4
Utilities		5.3
Telecommunication Services		4.4
Materials		3.2
		96.7
Securities Lending Collateral		27.8
Short-Term Obligation		2.7
Obligation to Return Collateral for Securities Loaned		(27.8	)
Other Assets & Liabilities, Net		0.6
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.
66

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (97.9%)
Consumer Discretionary (15.3%)
Auto Components (0.3%)
WABCO Holdings, Inc.		1,807	$	81,604
Diversified Consumer Services (2.2%)
Apollo Group, Inc., Class A (a)		2,560		159,462
DeVry, Inc.		1,940		110,211
ITT Educational Services, Inc. (a)		1,920		170,074
New Oriental Education & Technology Group, ADR (a)		1,710		119,700
				559,447
Hotels, Restaurants & Leisure (3.7%)
Ctrip.com International Ltd., ADR		2,452		110,561
Darden Restaurants, Inc.		5,040		164,153
International Game Technology, Inc.		4,350		94,438
Starbucks Corp. (a)		10,770		158,211
Starwood Hotels & Resorts Worldwide, Inc.		2,700		92,583
WMS Industries, Inc. (a)		3,270		92,149
Yum! Brands, Inc.		6,240		223,517
				935,612
Internet & Catalog Retail (0.7%)
Priceline.com, Inc. (a)		1,500		172,425
Media (2.6%)
Central European Media Enterprises Ltd., Class A (a)		1,390		115,718
Discovery Holding Co., Class A (a)		6,680		132,798
Liberty Media Corp., Class A (a)		10,310		253,832
McGraw-Hill Companies, Inc.		3,290		133,804
				636,152
Multiline Retail (0.5%)
Kohl's Corp. (a)		2,880		120,701
Specialty Retail (4.0%)
GameStop Corp., Class A (a)		3,380		136,924
Guess ?, Inc.		3,040		96,277
J Crew Group, Inc. (a)		3,560		102,386
Ross Stores, Inc.		4,010		152,219
Tiffany & Co.		2,900		109,591
TJX Companies, Inc.		5,240		176,640
Urban Outfitters, Inc. (a)		6,690		220,837
				994,874
Textiles, Apparel & Luxury Goods (1.3%)
Deckers Outdoor Corp. (a)		1,550		175,166
Phillips-Van Heusen Corp.		4,350		153,990
				329,156
				3,829,971

See Accompanying Notes to Financial Statements.
67

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Consumer Staples (3.6%)
Food & Staples Retailing (0.7%)
Kroger Co.		6,110	$	172,791
Food Products (1.1%)
H.J. Heinz Co.		2,370		119,401
Wm. Wrigley Jr. Co.		1,910		150,813
				270,214
Household Products (0.4%)
Clorox Co.		1,840		100,280
Personal Products (0.8%)
Avon Products, Inc.		5,090		215,816
Tobacco (0.6%)
Lorillard, Inc. (a)		2,160		144,958
				904,059
Energy (12.7%)
Energy Equipment & Services (5.0%)
Cameron International Corp. (a)		4,140		197,727
Core Laboratories N.V.		1,010		130,906
Diamond Offshore Drilling, Inc.		2,460		293,478
FMC Technologies, Inc. (a)		1,950		120,471
IHS, Inc., Class A (a)		1,914		119,108
National-Oilwell Varco, Inc. (a)		2,300		180,849
Noble Corp.		3,960		205,405
				1,247,944
Oil, Gas & Consumable Fuels (7.7%)
Concho Resources, Inc. (a)		4,178		136,830
CONSOL Energy, Inc.		3,250		241,767
Continental Resources, Inc. (a)		5,019		286,685
Denbury Resources, Inc. (a)		12,470		350,906
Frontier Oil Corp.		5,500		100,375
Peabody Energy Corp.		2,600		175,890
PetroHawk Energy Corp. (a)		5,090		169,599
Range Resources Corp.		2,200		106,832
Southwestern Energy Co. (a)		6,688		242,841
Ultra Petroleum Corp. (a)		1,510		107,784
				1,919,509
				3,167,453
Financials (6.0%)
Capital Markets (3.7%)
Invesco Ltd.		7,000		163,030
Janus Capital Group, Inc.		4,320		131,069
Northern Trust Corp.		1,900		148,523

See Accompanying Notes to Financial Statements.
68

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Capital Markets (continued)
T. Rowe Price Group, Inc.		3,640	$	217,854
Waddell & Reed Financial, Inc., Class A		8,060		269,204
				929,680
Diversified Financial Services (1.1%)
CME Group, Inc.		430		154,856
IntercontinentalExchange, Inc. (a)		1,140		113,772
				268,628
Real Estate Investment Trusts (REITs) (1.2%)
Macerich Co.		1,650		91,294
Plum Creek Timber Co., Inc.		2,260		110,107
ProLogis		2,000		97,760
				299,161
				1,497,469
Health Care (14.3%)
Biotechnology (3.3%)
Alexion Pharmaceuticals, Inc. (a)		1,620		151,875
Amylin Pharmaceuticals, Inc. (a)		4,640		146,392
Celgene Corp. (a)		2,730		206,088
ImClone Systems, Inc. (a)		2,200		140,646
Onyx Pharmaceuticals, Inc. (a)		4,350		176,175
				821,176
Health Care Equipment & Supplies (2.2%)
Hologic, Inc. (a)		9,128		168,594
Intuitive Surgical, Inc. (a)		637		198,292
Varian Medical Systems, Inc. (a)		3,070		184,200
				551,086
Health Care Providers & Services (3.4%)
Express Scripts, Inc. (a)		3,520		248,301
Laboratory Corp. of America Holdings (a)		3,620		244,640
McKesson Corp.		2,490		139,415
Medco Health Solutions, Inc. (a)		2,630		130,395
Pediatrix Medical Group, Inc. (a)		1,650		80,272
				843,023
Life Sciences Tools & Services (4.3%)
Charles River Laboratories International, Inc. (a)		3,610		239,920
Covance, Inc. (a)		2,720		249,696
Illumina, Inc. (a)		1,203		112,168
Pharmaceutical Product Development, Inc.		4,890		186,505
Thermo Fisher Scientific, Inc. (a)		2,350		142,222
Waters Corp. (a)		2,220		150,827
				1,081,338
Pharmaceuticals (1.1%)
Allergan, Inc.		3,270		169,811
Perrigo Co.		3,150		110,974
				280,785
				3,577,408

See Accompanying Notes to Financial Statements.
69

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Industrials (15.8%)
Aerospace & Defense (1.8%)
Goodrich Corp.		3,910	$	192,138
Precision Castparts Corp.		2,800		261,604
				453,742
Air Freight & Logistics (0.5%)
C.H. Robinson Worldwide, Inc.		2,610		125,802
Commercial Services & Supplies (2.6%)
Dun & Bradstreet Corp.		1,110		107,270
FTI Consulting, Inc. (a)		1,580		112,433
Manpower, Inc.		2,180		104,640
Robert Half International, Inc.		3,820		96,608
Stericycle, Inc. (a)		3,880		231,830
				652,781
Construction & Engineering (1.0%)
Foster Wheeler Ltd. (a)		4,410		250,356
Electrical Equipment (3.4%)
AMETEK, Inc.		3,230		154,588
First Solar, Inc. (a)		470		134,002
General Cable Corp. (a)		4,530		261,064
Roper Industries, Inc.		2,830		173,139
SunPower Corp., Class A (a)		1,650		129,970
				852,763
Industrial Conglomerates (2.1%)
McDermott International, Inc. (a)		7,000		333,690
Textron, Inc.		4,060		176,488
				510,178
Machinery (3.7%)
Bucyrus International, Inc.		2,160		151,221
Cummins, Inc.		4,520		299,857
Flowserve Corp.		1,200		160,008
Joy Global, Inc.		3,155		227,854
Manitowoc Co., Inc.		3,480		91,733
				930,673
Road & Rail (0.7%)
Landstar System, Inc.		3,590		181,582
				3,957,877
Information Technology (16.7%)
Communications Equipment (2.1%)
CommScope, Inc. (a)		2,220		98,990
Harris Corp.		4,540		218,601
Juniper Networks, Inc. (a)		3,790		98,654
Research In Motion Ltd. (a)		820		100,712
				516,957

See Accompanying Notes to Financial Statements.
70

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Computers & Peripherals (0.6%)
Seagate Technology		10,120	$	151,496
Electronic Equipment & Instruments (1.3%)
Amphenol Corp., Class A		2,670		127,279
Avnet, Inc. (a)		3,900		106,314
Tyco Electronics Ltd.		2,640		87,490
				321,083
Internet Software & Services (1.1%)
Equinix, Inc. (a)		1,730		140,753
VeriSign, Inc. (a)		4,530		147,406
				288,159
IT Services (4.0%)
Alliance Data Systems Corp. (a)		3,410		218,751
Cognizant Technology Solutions Corp., Class A (a)		6,680		187,508
Fiserv, Inc. (a)		2,680		128,158
Global Payments, Inc.		2,450		108,511
Mastercard, Inc., Class A		560		136,724
Paychex, Inc.		3,460		113,903
Total System Services, Inc.		4,880		95,550
				989,105
Semiconductors & Semiconductor Equipment (3.4%)
ASML Holding N.V., N.Y. Registered Shares		6,710		152,921
Broadcom Corp., Class A (a)		8,790		213,509
Lam Research Corp. (a)		3,400		111,826
Linear Technology Corp.		3,250		100,912
Marvell Technology Group Ltd. (a)		9,940		147,013
Microchip Technology, Inc.		3,970		126,762
				852,943
Software (4.2%)
Activision Blizzard, Inc. (a)		3,480		125,210
Autodesk, Inc. (a)		2,807		89,515
Citrix Systems, Inc. (a)		2,978		79,334
FactSet Research Systems, Inc.		2,250		129,758
Intuit, Inc. (a)		5,610		153,321
McAfee, Inc. (a)		5,070		166,043
Salesforce.com, Inc. (a)		2,270		144,803
UBISOFT Entertainment (a)		1,640		162,096
				1,050,080
				4,169,823
Materials (7.8%)
Chemicals (4.9%)
Agrium, Inc.		1,760		154,880
Intrepid Potash, Inc. (a)		2,175		120,277
Monsanto Co.		1,940		231,073

See Accompanying Notes to Financial Statements.
71

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Chemicals (continued)
Potash Corp. of Saskatchewan, Inc.		2,270	$	463,693
Syngenta AG, ADR		2,420		140,578
Wacker Chemie AG		560		115,904
				1,226,405
Metals & Mining (2.9%)
Agnico-Eagle Mines Ltd.		2,170		118,590
AK Steel Holding Corp.		1,740		110,490
Cleveland-Cliffs, Inc.		2,560		277,530
Freeport-McMoRan Copper & Gold, Inc.		1,367		132,257
Nucor Corp.		1,440		82,397
				721,264
				1,947,669
Telecommunication Services (2.8%)
Wireless Telecommunication Services (2.8%)
American Tower Corp., Class A (a)		7,086		296,904
Crown Castle International Corp. (a)		4,810		183,742
Leap Wireless International, Inc. (a)		1,900		81,947
NII Holdings, Inc. (a)		2,720		148,675
				711,268
Utilities (2.9%)
Electric Utilities (1.4%)
ITC Holdings Corp.		2,319		120,866
PPL Corp.		4,800		225,408
				346,274
Gas Utilities (0.6%)
Questar Corp.		2,910		153,881
Independent Power Producers & Energy Traders (0.9%)
Constellation Energy Group, Inc.		1,200		99,792
NRG Energy, Inc. (a)		3,330		120,846
				220,638
				720,793
Total Common Stocks (Cost of $21,051,464)				24,483,790

See Accompanying Notes to Financial Statements.
72

CMG MID CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Short-Term Obligation (5.1%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 1.990%, collateralized by U.S. Treasury Obligations maturing 02/12/15, market value $1,306,250 (repurchase proceeds $1,280,071)	$	1,280,000	$	1,280,000
Total Short-Term Obligation (Cost of $1,280,000)				1,280,000
Total Investments (103.0%) (Cost of $22,331,464) (b)				25,763,790
Other Assets & Liabilities, Net (-3.0%)				(752,180	)
Net Assets (100.0%)			$	25,011,610

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  Cost for federal income tax purposes is $22,513,674.

For the year ended July 31, 2008, transactions in written option contracts were as follows:

	Number of contracts			Premium received
Options outstanding at July 31, 2007		-		$	-
Options written		71			24,827
Options terminated in closing purchase transactions		(71	)		(24,827	)
Options exercised		-			-
Options expired		-			-
Options outstanding at July 31, 2008		-		$	-

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Information Technology		16.7
Industrials		15.8
Consumer Discretionary		15.3
Health Care		14.3
Energy		12.7
Materials		7.8
Financials		6.0
Consumer Staples		3.6
Utilities		2.9
Telecommunication Services		2.8
		97.9
Short-Term Obligation		5.1
Other Assets & Liabilities, Net		(3.0	)
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.
73

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (95.3%)
Consumer Discretionary (9.7%)
Auto Components (2.9%)
BorgWarner, Inc.		5,000	$	201,600
Gentex Corp.		5,600		86,576
Johnson Controls, Inc.		6,850		206,596
				494,772
Automobiles (0.4%)
Ford Motor Co. (a)		15,222		73,066
Hotels, Restaurants & Leisure (2.1%)
Royal Caribbean Cruises Ltd.		7,900		201,292
Starwood Hotels & Resorts Worldwide, Inc.		4,425		151,733
				353,025
Leisure Equipment & Products (1.0%)
Hasbro, Inc.		4,400		170,368
Multiline Retail (2.4%)
Macy's, Inc.		11,416		214,735
Saks, Inc. (a)		19,000		193,610
				408,345
Textiles, Apparel & Luxury Goods (0.9%)
Polo Ralph Lauren Corp.		2,600		153,842
				1,653,418
Consumer Staples (8.9%)
Beverages (1.5%)
Fomento Economico Mexicano SAB de CV, ADR		2,975		136,434
Pepsi Bottling Group, Inc.		4,600		128,110
				264,544
Food & Staples Retailing (1.5%)
BJ's Wholesale Club, Inc. (a)		3,500		131,355
Kroger Co.		4,650		131,502
				262,857
Food Products (3.7%)
ConAgra Foods, Inc.		8,000		173,440
Dean Foods Co. (a)		8,900		189,570
Hershey Co.		2,400		88,248
Smithfield Foods, Inc. (a)		3,000		64,440
Tyson Foods, Inc., Class A		7,800		116,220
				631,918
Household Products (0.5%)
Clorox Co.		1,550		84,475

See Accompanying Notes to Financial Statements.
74

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Personal Products (1.7%)
Avon Products, Inc.		4,600	$	195,040
Estee Lauder Companies, Inc., Class A		1,975		87,097
				282,137
				1,525,931
Energy (7.1%)
Energy Equipment & Services (2.3%)
Complete Production Services, Inc. (a)		3,700		117,808
National-Oilwell Varco, Inc. (a)		1,150		90,425
Rowan Companies, Inc.		2,125		84,575
Tidewater, Inc.		1,700		101,898
				394,706
Oil, Gas & Consumable Fuels (4.8%)
El Paso Corp.		12,100		216,953
Forest Oil Corp. (a)		2,300		131,169
Hess Corp.		1,075		109,005
Newfield Exploration Co. (a)		2,500		122,450
Peabody Energy Corp.		1,400		94,710
Williams Companies, Inc.		4,600		147,430
				821,717
				1,216,423
Financials (30.0%)
Capital Markets (3.0%)
Ameriprise Financial, Inc.		6,500		276,250
Lazard Ltd., Class A		5,600		228,536
				504,786
Commercial Banks (9.6%)
Bank of Hawaii Corp.		4,600		231,794
City National Corp.		3,500		171,955
Comerica, Inc.		6,875		197,450
Cullen/Frost Bankers, Inc.		4,225		222,826
KeyCorp		7,300		77,015
Marshall & Ilsley Corp.		16,325		248,140
SVB Financial Group (a)		3,150		181,409
TCF Financial Corp.		14,500		184,875
Zions Bancorporation		4,375		128,056
				1,643,520
Insurance (7.5%)
ACE Ltd.		5,300		268,710
Assurant, Inc.		3,000		180,360
Loews Corp.		4,075		181,582
Marsh & McLennan Companies, Inc.		10,800		305,100
Platinum Underwriters Holdings Ltd.		4,700		169,670
Reinsurance Group of America, Inc.		3,500		173,950
				1,279,372

See Accompanying Notes to Financial Statements.
75

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Real Estate Investment Trusts (REITs) (9.9%)
Alexandria Real Estate Equities, Inc.		2,400	$	247,824
Boston Properties, Inc.		2,150		206,808
Equity Residential Property Trust		5,900		254,703
General Growth Properties, Inc.		8,075		221,336
Plum Creek Timber Co., Inc.		6,500		316,680
ProLogis		4,000		195,520
Rayonier, Inc.		5,500		256,960
				1,699,831
				5,127,509
Health Care (4.8%)
Health Care Equipment & Supplies (1.9%)
Beckman Coulter, Inc.		1,900		137,446
Cooper Companies, Inc.		1,600		53,920
Hospira, Inc. (a)		3,675		140,238
				331,604
Health Care Providers & Services (2.2%)
CIGNA Corp.		3,450		127,719
Community Health Systems, Inc. (a)		4,175		137,692
Universal Health Services, Inc., Class B		1,700		103,054
				368,465
Life Sciences Tools & Services (0.7%)
Varian, Inc. (a)		2,300		113,620
				813,689
Industrials (10.2%)
Aerospace & Defense (2.1%)
AerCap Holdings NV (a)		6,500		99,190
L-3 Communications Holdings, Inc.		1,400		138,166
Spirit Aerosystems Holdings, Inc., Class A (a)		5,907		127,945
				365,301
Construction & Engineering (0.8%)
Jacobs Engineering Group, Inc. (a)		1,650		127,611
Electrical Equipment (0.7%)
Cooper Industries Ltd., Class A		2,900		122,293
Industrial Conglomerates (2.5%)
McDermott International, Inc. (a)		1,745		83,184
Teleflex, Inc.		2,400		147,168
Textron, Inc.		4,300		186,921
				417,273

See Accompanying Notes to Financial Statements.
76

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Machinery (2.6%)
Barnes Group, Inc.		3,988	$	90,089
Harsco Corp.		1,650		89,265
Kennametal, Inc.		3,850		114,576
Parker Hannifin Corp.		2,525		155,742
				449,672
Marine (0.8%)
Alexander & Baldwin, Inc.		3,125		135,594
Road & Rail (0.7%)
Canadian Pacific Railway Ltd.		2,000		125,620
				1,743,364
Information Technology (7.0%)
Computers & Peripherals (1.6%)
Diebold, Inc.		1,000		36,980
NCR Corp. (a)		8,600		230,996
				267,976
Electronic Equipment & Instruments (2.5%)
Agilent Technologies, Inc. (a)		1,500		54,090
Arrow Electronics, Inc. (a)		5,325		171,572
Avnet, Inc. (a)		3,762		102,552
Mettler-Toledo International, Inc. (a)		1,000		107,510
				435,724
Semiconductors & Semiconductor Equipment (1.1%)
Intersil Corp., Class A		3,000		72,390
KLA-Tencor Corp.		1,550		58,264
Spansion, Inc., Class A (a)		7,600		17,404
Verigy Ltd. (a)		1,583		35,190
				183,248
Software (1.8%)
Activision Blizzard, Inc. (a)		2,933		105,529
Citrix Systems, Inc. (a)		1,600		42,624
Electronic Arts, Inc. (a)		2,625		113,348
Synopsys, Inc. (a)		1,750		42,035
				303,536
				1,190,484
Materials (6.6%)
Chemicals (2.6%)
Air Products & Chemicals, Inc.		1,750		166,618
Albemarle Corp.		2,825		109,977
PPG Industries, Inc.		2,900		175,856
				452,451

See Accompanying Notes to Financial Statements.
77

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Containers & Packaging (1.8%)
Crown Holdings, Inc. (a)		4,700	$	131,741
Packaging Corp. of America		6,600		168,432
				300,173
Metals & Mining (0.5%)
Allegheny Technologies, Inc.		1,700		80,393
Paper & Forest Products (1.7%)
Weyerhaeuser Co.		5,500		294,030
				1,127,047
Utilities (11.0%)
Electric Utilities (5.0%)
American Electric Power Co., Inc.		5,800		229,100
Edison International		4,875		235,657
Entergy Corp.		1,200		128,304
FPL Group, Inc.		1,775		114,541
PPL Corp.		3,225		151,446
				859,048
Gas Utilities (0.9%)
AGL Resources, Inc.		4,475		154,656
Independent Power Producers & Energy Traders (0.5%)
Reliant Energy, Inc. (a)		5,000		90,550
Multi-Utilities (4.6%)
PG&E Corp.		5,825		224,437
Public Service Enterprise Group, Inc.		2,900		121,220
Sempra Energy		4,275		240,084
Wisconsin Energy Corp.		4,300		194,016
				779,757
				1,884,011
Total Common Stocks (Cost of $15,619,506)				16,281,876
	Par
Convertible Bond (0.2%)
Consumer Discretionary (0.2%)
Automobiles (0.2%)
Ford Motor Co.
4.250% 12/15/36	$	38,000		26,410
Total Convertible Bond (Cost of $39,960)				26,410

See Accompanying Notes to Financial Statements.
78

CMG MID CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Short-Term Obligation (4.3%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08 due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 02/28/11, market value $747,300 (repurchase proceeds $732,040)	$	732,000	$	732,000
Total Short-Term Obligation (Cost of $732,000)				732,000
Total Investments (99.8%) (Cost of $16,391,466) (b)				17,040,286
Other Assets & Liabilities, Net (0.2%)				39,128
Net Assets (100.0%)			$	17,079,414

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  Cost for federal income tax purposes is $16,438,302.

For the year ended July 31, 2008, transactions in written option contracts were as follows:

	Number of contracts			Premium received
Options outstanding at July 31, 2007		-		$	-
Options written		32			21,982
Options expired		(32	)		(21,982	)
Options outstanding at July 31, 2008		-		$	-

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Financials		30.0
Utilities		11.0
Industrials		10.2
Consumer Discretionary		9.9
Consumer Staples		8.9
Energy		7.1
Information Technology		7.0
Materials		6.6
Health Care		4.8
		95.5
Short-Term Obligation		4.3
Other Assets & Liabilities, Net		0.2
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.
79

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (99.0%)
Consumer Discretionary (12.4%)
Auto Components (0.3%)
WABCO Holdings, Inc.		2,948	$	133,132
Distributors (0.6%)
LKQ Corp. (a)		12,030		246,615
Diversified Consumer Services (2.4%)
Capella Education Co. (a)		6,068		316,750
Coinstar, Inc. (a)		8,540		294,545
DeVry, Inc.		3,040		172,702
New Oriental Education & Technology Group, ADR (a)		2,710		189,700
				973,697
Hotels, Restaurants & Leisure (1.9%)
Ctrip.com International Ltd., ADR		3,877		174,814
Panera Bread Co., Class A (a)		4,030		201,903
Vail Resorts, Inc. (a)		4,880		197,054
WMS Industries, Inc. (a)		7,310		205,996
				779,767
Household Durables (0.6%)
Tupperware Brands Corp.		5,840		227,760
Internet & Catalog Retail (1.0%)
Priceline.com, Inc. (a)		3,530		405,774
Leisure Equipment & Products (0.5%)
Polaris Industries, Inc.		4,220		180,616
Media (1.0%)
Central European Media Enterprises Ltd., Class A (a)		2,260		188,145
Morningstar, Inc. (a)		3,700		232,952
				421,097
Specialty Retail (2.1%)
Aeropostale, Inc. (a)		5,010		161,572
Children's Place Retail Stores, Inc. (a)		4,150		157,908
Gymboree Corp. (a)		6,410		239,734
J Crew Group, Inc. (a)		10,290		295,940
				855,154
Textiles, Apparel & Luxury Goods (2.0%)
Deckers Outdoor Corp. (a)		3,160		357,112
True Religion Apparel, Inc. (a)		10,260		265,118
Warnaco Group, Inc. (a)		4,890		205,135
				827,365
				5,050,977

See Accompanying Notes to Financial Statements.
80

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Consumer Staples (1.8%)
Beverages (1.0%)
Central European Distribution Corp. (a)		5,570	$	406,387
Food Products (0.4%)
Green Mountain Coffee Roasters, Inc. (a)		4,470		162,485
Personal Products (0.4%)
Chattem, Inc. (a)		2,390		154,083
				722,955
Energy (11.3%)
Energy Equipment & Services (3.6%)
Atwood Oceanics, Inc. (a)		13,030		598,207
Core Laboratories N.V.		2,810		364,204
IHS, Inc., Class A (a)		2,730		169,888
Tesco Corp. (a)		10,220		317,536
				1,449,835
Oil, Gas & Consumable Fuels (7.7%)
Arena Resources, Inc. (a)		10,799		441,787
Berry Petroleum Co., Class A		5,210		224,238
Carrizo Oil & Gas, Inc. (a)		6,600		332,244
Concho Resources, Inc. (a)		11,006		360,446
EXCO Resources, Inc. (a)		7,490		195,115
Foundation Coal Holdings, Inc.		4,190		248,886
Holly Corp.		4,780		136,612
Parallel Petroleum Corp. (a)		20,436		334,742
Penn Virginia Corp.		3,430		208,373
PetroHawk Energy Corp. (a)		7,990		266,227
Petroleum Development Corp. (a)		2,840		157,080
Ship Finance International Ltd.		8,380		249,221
				3,154,971
				4,604,806
Financials (3.7%)
Capital Markets (1.5%)
Waddell & Reed Financial, Inc., Class A		17,910		598,194
Consumer Finance (0.4%)
Cash America International, Inc.		4,330		182,553
Real Estate Investment Trusts (REITs) (1.8%)
Alexandria Real Estate Equities, Inc.		2,450		252,987
Home Properties, Inc.		4,950		272,349
Washington Real Estate Investment Trust		6,160		211,041
				736,377
				1,517,124

See Accompanying Notes to Financial Statements.
81

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Health Care (22.7%)
Biotechnology (7.6%)
Alexion Pharmaceuticals, Inc. (a)		6,400	$	600,000
BioMarin Pharmaceuticals, Inc. (a)		9,170		298,484
Celera Corp. (a)		11,860		161,889
Cepheid, Inc. (a)		6,340		108,541
Myriad Genetics, Inc. (a)		3,250		216,125
Onyx Pharmaceuticals, Inc. (a)		11,280		456,840
OSI Pharmaceuticals, Inc. (a)		9,900		521,037
Savient Pharmaceuticals, Inc. (a)		10,231		271,940
United Therapeutics Corp. (a)		4,160		471,702
				3,106,558
Health Care Equipment & Supplies (5.7%)
Haemonetics Corp. (a)		4,410		256,045
Hologic, Inc. (a)		27,286		503,972
Immucor, Inc. (a)		5,880		177,164
Insulet Corp. (a)		6,948		96,925
Masimo Corp. (a)		6,078		229,566
Natus Medical, Inc. (a)		10,778		250,157
NuVasive, Inc. (a)		10,510		590,347
Spectranetics Corp. (a)		26,230		234,759
				2,338,935
Health Care Providers & Services (3.2%)
CardioNet, Inc. (a)		4,592		126,556
Genoptix, Inc. (a)		5,050		147,207
HealthExtras, Inc. (a)		10,465		314,055
IPC The Hospitalist Co., Inc. (a)		7,943		171,172
Pediatrix Medical Group, Inc. (a)		1,840		89,516
Psychiatric Solutions, Inc. (a)		13,477		471,964
				1,320,470
Health Care Technology (0.5%)
Phase Forward, Inc. (a)		11,208		206,227
Life Sciences Tools & Services (4.5%)
ICON PLC, ADR (a)		15,150		1,217,151
Illumina, Inc. (a)(b)		6,500		606,060
				1,823,211
Pharmaceuticals (1.2%)
Cypress Bioscience, Inc. (a)		14,180		123,366
Perrigo Co.		10,620		374,142
				497,508
				9,292,909
Industrials (16.9%)
Aerospace & Defense (0.8%)
Hexcel Corp. (a)		16,390		311,082

See Accompanying Notes to Financial Statements.
82

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Air Freight & Logistics (0.5%)
HUB Group, Inc., Class A (a)		5,245	$	203,821
Commercial Services & Supplies (5.3%)
Advisory Board Co. (a)		3,930		150,715
CoStar Group, Inc. (a)		4,270		213,030
EnergySolutions, Inc.		7,158		146,811
FTI Consulting, Inc. (a)		4,182		297,591
Geo Group, Inc. (a)		9,400		225,976
Huron Consulting Group, Inc. (a)		6,670		347,907
Ritchie Bros Auctioneers, Inc.		13,060		340,997
Waste Connections, Inc. (a)		12,430		452,328
				2,175,355
Construction & Engineering (0.5%)
EMCOR Group, Inc. (a)		7,480		225,298
Electrical Equipment (3.9%)
Acuity Brands, Inc.		7,320		299,095
Energy Conversion Devices, Inc. (a)		3,500		244,755
General Cable Corp. (a)		7,430		428,191
GrafTech International Ltd. (a)		18,200		426,790
SunPower Corp., Class A (a)		2,210		174,082
				1,572,913
Machinery (4.2%)
Actuant Corp., Class A		6,400		194,944
Barnes Group, Inc.		10,360		234,032
Bucyrus International, Inc., Class A		8,470		592,985
Kaydon Corp.		3,340		158,383
Key Technology, Inc. (a)		6,842		219,286
RBC Bearings, Inc. (a)		8,931		297,134
				1,696,764
Road & Rail (1.2%)
Genesee & Wyoming, Inc., Class A (a)		7,420		300,288
Landstar System, Inc.		3,980		201,308
				501,596
Transportation Infrastructure (0.5%)
Aegean Marine Petroleum Network, Inc.		5,670		205,254
				6,892,083
Information Technology (21.1%)
Communications Equipment (0.6%)
Neutral Tandem, Inc. (a)		12,900		222,912
Electronic Equipment & Instruments (1.4%)
DTS, Inc. (a)		11,879		339,621
Itron, Inc. (a)		2,450		226,208
				565,829

See Accompanying Notes to Financial Statements.
83

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Internet Software & Services (3.3%)
Bankrate, Inc. (a)		7,294	$	229,396
Equinix, Inc. (a)		2,993		243,511
Omniture, Inc. (a)		14,995		260,163
VistaPrint Ltd. (a)		6,690		172,401
Vocus, Inc. (a)		12,306		437,971
				1,343,442
IT Services (1.5%)
Cybersource Corp. (a)		12,520		222,230
Gartner, Inc. (a)		7,900		192,444
Wright Express Corp. (a)		7,650		203,108
				617,782
Semiconductors & Semiconductor Equipment (5.3%)
Atheros Communications, Inc. (a)		12,073		374,263
Entegris, Inc. (a)		28,110		177,936
FEI Co. (a)		4,560		115,140
Hittite Microwave Corp. (a)		7,310		233,335
Microsemi Corp. (a)		6,750		175,230
Monolithic Power Systems, Inc. (a)		9,250		201,188
Netlogic Microsystems, Inc. (a)		8,540		273,366
Power Integrations, Inc. (a)		11,200		305,984
Trina Solar Ltd., ADR (a)		5,770		158,790
Verigy Ltd. (a)		7,110		158,055
				2,173,287
Software (9.0%)
Advent Software, Inc. (a)		6,900		300,426
Blackboard, Inc. (a)		8,250		329,670
Concur Technologies, Inc. (a)		8,771		361,541
FactSet Research Systems, Inc.		3,100		178,777
Informatica Corp. (a)		10,920		176,795
Jack Henry & Associates, Inc.		6,260		135,153
Magma Design Automation, Inc. (a)		24,150		153,111
Micros Systems, Inc. (a)		10,190		322,819
Net 1 UEPS Technologies, Inc. (a)		11,280		265,982
Netscout Systems, Inc. (a)		17,290		235,490
Nuance Communications, Inc. (a)		15,910		246,923
Solera Holdings, Inc. (a)		11,670		338,313
SPSS, Inc. (a)		5,880		194,334
Taleo Corp., Class A (a)		15,160		284,099
Ultimate Software Group, Inc. (a)		6,340		166,298
				3,689,731
				8,612,983
Materials (7.3%)
Chemicals (3.9%)
CF Industries Holdings, Inc.		2,820		460,957
Intrepid Potash, Inc. (a)		10,660		589,498
Terra Industries, Inc.		9,880		533,520
				1,583,975

See Accompanying Notes to Financial Statements.
84

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Containers & Packaging (0.7%)
Silgan Holdings, Inc.		5,700	$	301,074
Metals & Mining (2.7%)
Cleveland-Cliffs, Inc.		4,450		482,424
PAN American Silver Corp. (a)		9,790		303,001
Steel Dynamics, Inc.		10,370		328,522
				1,113,947
				2,998,996
Telecommunication Services (1.3%)
Wireless Telecommunication Services (1.3%)
SBA Communications Corp., Class A (a)		13,680		518,335
Utilities (0.5%)
Electric Utilities (0.5%)
ITC Holdings Corp.		3,750		195,450
Total Common Stocks (Cost of $34,006,514)				40,406,618
	Par
Short-Term Obligation (3.4%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 05/15/13, market value $1,438,200 (repurchase proceeds $1,407,078)	$	1,407,000		1,407,000
Total Short-Term Obligation (Cost of $1,407,000)				1,407,000
Total Investments (102.4%) (Cost of $35,413,514) (c)				41,813,618
Other Assets & Liabilities, Net (-2.4%)				(995,365	)
Net Assets (100.0%)			$	40,818,253

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  All or a portion of this security is pledged as collateral for open written options contracts.

(c)  Cost for federal income tax purposes is $35,824,905.

See Accompanying Notes to Financial Statements.
85

CMG SMALL CAP GROWTH FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

At July 31, 2008 the Fund held the following written call option contracts:

Name of Issuer	Strike Price		Number of Contracts		Expiration Date		Premium		Value
Illumina, Inc	$	100		65		08/16/08	$	8,362	$	3,250
Total written call options (proceeds $8,362)

For the year ended July 31, 2008, transactions in written option contracts were as follows:

	Number of contracts			Premium received
Options outstanding at July 31, 2007		-		$	-
Options written		189			54,846
Options bought back		(94	)		(37,905	)
Options exercised		-			-
Options expired		(30	)		(8,579	)
Options outstanding at July 31, 2008		65		$	8,362

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Health Care		22.7
Information Technology		21.1
Industrials		16.9
Consumer Discretionary		12.4
Energy		11.3
Materials		7.3
Financials		3.7
Consumer Staples		1.8
Telecommunication Services		1.3
Utilities		0.5
		99.0
Short-Term Obligation		3.4
Other Assets & Liabilities, Net		(2.4	)
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.
86

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (100.0%)
Consumer Discretionary (8.3%)
Auto Components (0.8%)
American Axle & Manufacturing Holdings, Inc.		2,340	$	13,759
BorgWarner, Inc.		3,480		140,314
Modine Manufacturing Co.		3,700		64,528
				218,601
Diversified Consumer Services (0.1%)
Regis Corp.		1,360		38,066
Hotels, Restaurants & Leisure (1.7%)
Benihana, Inc., Class A (a)		6,950		46,357
Bob Evans Farms, Inc.		3,800		108,832
CEC Entertainment, Inc. (a)		3,100		108,066
Landry's Restaurants, Inc.		5,070		73,870
O'Charleys, Inc.		5,120		57,600
Red Robin Gourmet Burgers, Inc. (a)		1,910		47,425
				442,150
Household Durables (1.8%)
American Greetings Corp., Class A		9,720		144,051
Cavco Industries, Inc. (a)		1,386		46,708
CSS Industries, Inc.		2,820		79,750
Ethan Allen Interiors, Inc.		2,050		51,455
Furniture Brands International, Inc.		5,020		59,587
Skyline Corp.		938		24,454
Universal Electronics, Inc. (a)		3,370		76,566
				482,571
Internet & Catalog Retail (0.2%)
NutriSystem, Inc.		3,060		52,662
Leisure Equipment & Products (0.3%)
Brunswick Corp.		5,670		73,143
Specialty Retail (2.5%)
America's Car-Mart, Inc. (a)		7,915		157,667
Foot Locker, Inc.		4,986		75,089
MarineMax, Inc. (a)		4,530		29,807
Monro Muffler Brake, Inc.		7,200		131,112
Rent-A-Center, Inc. (a)		8,209		174,031
Zale Corp. (a)		3,880		85,826
				653,532
Textiles, Apparel & Luxury Goods (0.9%)
Hampshire Group Ltd. (a)		5,286		31,716
Movado Group, Inc.		4,580		98,470
Wolverine World Wide, Inc.		4,340		116,008
				246,194
				2,206,919

See Accompanying Notes to Financial Statements.
87

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Consumer Staples (4.6%)
Beverages (0.2%)
MGP Ingredients, Inc.		9,377	$	51,573
Food & Staples Retailing (2.0%)
BJ's Wholesale Club, Inc. (a)		3,160		118,595
Longs Drug Stores Corp.		2,682		125,384
Ruddick Corp.		2,600		80,496
Weis Markets, Inc.		5,550		210,844
				535,319
Food Products (1.8%)
Flowers Foods, Inc.		2,828		85,038
Fresh Del Monte Produce, Inc. (a)		2,310		48,695
J & J Snack Foods Corp.		2,190		69,357
Lancaster Colony Corp.		3,370		109,559
Lance, Inc.		4,600		84,640
Ralcorp Holdings, Inc. (a)		1,520		82,019
				479,308
Personal Products (0.6%)
Bare Escentuals, Inc. (a)		3,930		45,352
NBTY, Inc. (a)		3,510		121,060
				166,412
				1,232,612
Energy (5.8%)
Energy Equipment & Services (2.8%)
Complete Production Services, Inc. (a)		4,253		135,416
Key Energy Services, Inc. (a)		6,120		98,287
Lufkin Industries, Inc.		1,107		98,744
Oil States International, Inc. (a)		1,590		87,259
Patterson-UTI Energy, Inc.		2,520		71,618
TGC Industries, Inc. (a)		7,649		61,728
Tidewater, Inc.		1,970		118,082
TriCo Marine Services, Inc. (a)		3,683		93,990
				765,124
Oil, Gas & Consumable Fuels (3.0%)
Bois d'Arc Energy, Inc. (a)		4,178		91,498
Comstock Resources, Inc. (a)		2,440		148,864
Frontier Oil Corp.		4,080		74,460
Harvest Natural Resources, Inc. (a)		11,780		116,033
Holly Corp.		2,620		74,880
Nordic American Tanker Shipping		2,123		84,750
Stone Energy Corp. (a)		2,430		123,979
Swift Energy Co. (a)		1,610		81,820
				796,284
				1,561,408

See Accompanying Notes to Financial Statements.
88

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Financials (30.5%)
Capital Markets (0.4%)
Piper Jaffray Companies, Inc. (a)		3,300	$	117,150
Commercial Banks (8.1%)
BancFirst Corp.		2,700		127,575
BancTrust Financial Group, Inc.		8,802		66,015
Bank of Granite Corp.		9,727		80,150
Bryn Mawr Bank Corp.		5,296		127,422
Capital Corp. of the West		7,652		36,424
Capitol Bancorp Ltd.		6,526		86,731
Chemical Financial Corp.		7,265		193,031
Columbia Banking System, Inc.		4,830		72,981
Community Trust Bancorp, Inc.		3,410		105,096
First Citizens BancShares, Inc., Class A		1,204		170,366
First Financial Corp.		4,800		179,328
First Horizon National Corp.		12,650		118,910
First National Bank of Alaska (b)		43		79,550
Mass Financial Corp., Class A (a)		13,010		58,545
Merchants Bancshares, Inc.		5,108		105,991
Northfield Bancorp, Inc. (a)		6,129		70,913
Northrim BanCorp, Inc.		5,714		90,967
Sterling Bancorp NY		7,950		111,618
Taylor Capital Group, Inc.		6,000		41,460
West Coast Bancorp		7,140		78,611
Whitney Holding Corp.		8,650		177,844
				2,179,528
Consumer Finance (1.3%)
Advance America Cash Advance Centers, Inc.		14,130		77,291
Cash America International, Inc.		6,240		263,078
				340,369
Diversified Financial Services (0.5%)
Medallion Financial Corp.		12,653		125,012
Insurance (9.0%)
Baldwin & Lyons, Inc., Class B		4,781		101,596
CNA Surety Corp. (a)		8,130		105,609
EMC Insurance Group, Inc.		5,310		129,989
FBL Financial Group, Inc.		3,042		63,426
Harleysville Group, Inc.		3,515		125,239
Horace Mann Educators Corp.		9,560		132,502
IPC Holdings Ltd.		4,550		146,055
Max Capital Group Ltd.		5,770		135,422
Mercury General Corp.		1,900		95,969
National Western Life Insurance Co., Class A		554		131,215
Navigators Group, Inc. (a)		3,084		146,675
Phoenix Companies, Inc.		18,781		182,739
ProCentury Corp.		10,081		165,833

See Accompanying Notes to Financial Statements.
89

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Insurance (continued)
RAM Holdings Ltd. (a)		23,008	$	38,193
RLI Corp.		2,762		150,860
Safety Insurance Group, Inc.		3,400		144,398
Selective Insurance Group, Inc.		5,305		114,588
Stewart Information Services Corp.		4,110		71,761
United America Indemnity Ltd., Class A (a)		16,377		213,392
				2,395,461
Real Estate Investment Trusts (REITs) (5.4%)
DiamondRock Hospitality Co.		12,200		112,484
DuPont Fabros Technology, Inc.		5,936		97,054
Franklin Street Properties Corp.		10,986		134,798
Getty Realty Corp.		4,420		82,698
LaSalle Hotel Properties		5,780		131,264
National Health Investors, Inc.		3,712		114,664
Potlatch Corp.		4,770		222,139
Realty Income Corp.		5,690		143,331
Sun Communities, Inc.		7,430		126,161
Universal Health Realty Income Trust		3,920		137,082
Urstadt Biddle Properties, Inc., Class A		8,280		137,034
				1,438,709
Real Estate Management & Development (0.4%)
Maui Land & Pineapple Co., Inc. (a)		3,601		102,628
Thrifts & Mortgage Finance (5.4%)
Bank Mutual Corp.		14,430		168,831
BankFinancial Corp.		8,760		126,757
Beneficial Mutual Bancorp, Inc. (a)		10,882		130,366
Brookline Bancorp, Inc.		16,800		163,800
Clifton Savings Bancorp, Inc.		8,830		95,011
Corus Bankshares, Inc.		16,332		63,858
ESSA Bancorp, Inc.		5,867		78,031
Flagstar BanCorp, Inc.		18,930		84,049
Home Federal Bancorp, Inc.		11,240		115,772
TrustCo Bank Corp. NY		10,340		90,268
United Financial Bancorp, Inc.		7,243		86,844
Washington Federal, Inc.		6,240		116,064
Westfield Financial, Inc.		13,004		128,090
				1,447,741
				8,146,598
Health Care (10.5%)
Health Care Equipment & Supplies (2.4%)
Analogic Corp.		1,980		144,896
Haemonetics Corp. (a)		2,940		170,697
Hill-Rom Holdings, Inc.		2,520		70,787
STERIS Corp.		7,540		257,642
				644,022

See Accompanying Notes to Financial Statements.
90

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Health Care Providers & Services (5.9%)
Amedisys, Inc. (a)		2,060	$	132,087
AmSurg Corp. (a)		3,920		105,056
Cross Country Healthcare, Inc. (a)		8,360		133,342
Gentiva Health Services, Inc. (a)		8,750		223,475
Healthspring, Inc. (a)		2,734		53,176
Kindred Healthcare, Inc. (a)		6,800		183,396
Magellan Health Services, Inc. (a)		1,630		68,052
NovaMed, Inc. (a)		16,134		63,568
Owens & Minor, Inc.		3,941		180,971
Pediatrix Medical Group, Inc. (a)		2,600		126,490
RehabCare Group, Inc. (a)		5,176		85,715
Res-Care, Inc. (a)		7,630		140,087
U.S. Physical Therapy, Inc. (a)		4,400		71,852
				1,567,267
Life Sciences Tools & Services (1.5%)
Bio-Rad Laboratories, Inc., Class A (a)		1,940		172,854
PAREXEL International Corp. (a)		4,970		145,273
Varian, Inc. (a)		1,740		85,956
				404,083
Pharmaceuticals (0.7%)
Alpharma, Inc., Class A (a)		5,270		119,682
Sciele Pharma, Inc.		3,670		68,445
				188,127
				2,803,499
Industrials (14.8%)
Aerospace & Defense (0.9%)
AAR Corp. (a)		3,738		64,256
Esterline Technologies Corp. (a)		1,560		76,097
Moog, Inc., Class A (a)		2,400		106,680
				247,033
Airlines (0.6%)
AirTran Holdings, Inc. (a)		7,870		22,980
JetBlue Airways Corp. (a)		10,525		55,467
Skywest, Inc.		5,810		88,428
				166,875
Building Products (1.7%)
Builders FirstSource, Inc. (a)		7,483		32,701
Lennox International, Inc.		3,350		119,595
NCI Building Systems, Inc. (a)		4,440		166,322
Trex Co., Inc. (a)		5,039		84,857
Universal Forest Products, Inc.		2,180		58,860
				462,335
Commercial Services & Supplies (3.9%)
ABM Industries, Inc.		3,850		92,131
Casella Waste Systems, Inc., Class A (a)		7,460		96,383
CBIZ, Inc. (a)		10,032		82,162

See Accompanying Notes to Financial Statements.
91

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Commercial Services & Supplies (continued)
CDI Corp.		2,902	$	59,723
Consolidated Graphics, Inc. (a)		3,750		125,625
Healthcare Services Group, Inc.		6,163		102,367
Kimball International, Inc., Class B		6,280		67,259
Korn/Ferry International (a)		6,000		105,000
MPS Group, Inc. (a)		18,460		212,659
United Stationers, Inc. (a)		2,420		92,759
				1,036,068
Construction & Engineering (1.7%)
Dycom Industries, Inc. (a)		6,880		109,186
EMCOR Group, Inc. (a)		6,680		201,201
KHD Humboldt Wedag International Ltd. (a)		5,662		150,100
				460,487
Electrical Equipment (0.8%)
Belden CDT, Inc.		3,240		119,621
Woodward Governor Co.		2,450		110,250
				229,871
Machinery (1.4%)
EnPro Industries, Inc. (a)		5,200		187,252
Harsco Corp.		2,360		127,676
Kadant, Inc. (a)		2,373		50,759
				365,687
Road & Rail (2.6%)
Amerco, Inc. (a)		1,650		75,999
Genesee & Wyoming, Inc., Class A (a)		3,020		122,219
Heartland Express, Inc.		5,800		98,832
Knight Transportation, Inc.		3,490		66,031
Ryder System, Inc.		1,080		71,237
Werner Enterprises, Inc.		10,640		253,338
				687,656
Trading Companies & Distributors (1.2%)
Kaman Corp.		4,436		111,255
Watsco, Inc.		4,020		200,477
				311,732
				3,967,744
Information Technology (12.7%)
Communications Equipment (2.0%)
Anaren, Inc. (a)		8,133		77,345
Bel Fuse, Inc., Class B		1,970		55,869
Black Box Corp.		3,031		90,021
Brocade Communications Systems, Inc. (a)		10,130		68,378
Comtech Telecommunications Corp. (a)		1,750		85,977
Emulex Corp. (a)		5,840		65,817
Polycom, Inc. (a)		3,270		77,172
Tollgrade Communications, Inc. (a)		5,280		27,456
				548,035

See Accompanying Notes to Financial Statements.
92

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Computers & Peripherals (0.7%)
Electronics for Imaging, Inc. (a)		6,080	$	85,181
QLogic Corp. (a)		5,340		100,605
				185,786
Electronic Equipment & Instruments (3.7%)
Anixter International, Inc. (a)		3,130		212,934
Benchmark Electronics, Inc. (a)		6,350		92,964
Brightpoint, Inc. (a)		11,356		78,243
CPI International, Inc. (a)		6,270		90,601
GSI Group Inc. (a)		8,510		44,252
MTS Systems Corp.		3,230		135,305
NAM TAI Electronics, Inc.		12,930		149,083
Plexus Corp. (a)		2,900		82,650
Vishay Intertechnology, Inc. (a)		11,320		101,540
				987,572
IT Services (1.1%)
CACI International, Inc., Class A (a)		2,410		108,354
CSG Systems International, Inc. (a)		2,858		50,701
MAXIMUS, Inc.		2,250		83,497
TeleTech Holdings, Inc. (a)		2,960		40,256
				282,808
Semiconductors & Semiconductor Equipment (2.4%)
Actel Corp. (a)		7,078		97,322
Advanced Energy Industries, Inc. (a)		3,850		53,207
ATMI, Inc. (a)		1,680		37,850
Cabot Microelectronics Corp. (a)		1,560		60,902
Exar Corp. (a)		6,410		49,357
Fairchild Semiconductor International, Inc. (a)		4,990		60,629
Kulicke & Soffa Industries, Inc. (a)		3,325		21,147
Mattson Technology, Inc. (a)		13,690		61,742
MKS Instruments, Inc. (a)		3,871		79,743
RF Micro Devices, Inc. (a)		12,550		41,039
Ultra Clean Holdings (a)		6,140		40,217
Varian Semiconductor Equipment Associates, Inc. (a)		1,455		42,515
				645,670
Software (2.8%)
ACI Worldwide, Inc. (a)		4,410		86,259
Captaris, Inc. (a)		12,880		43,277
Lawson Software, Inc. (a)		5,340		43,307
Mentor Graphics Corp. (a)		7,161		99,395
MSC.Software Corp. (a)		10,220		128,772
Progress Software Corp. (a)		3,100		91,233
SPSS, Inc. (a)		2,100		69,405
Sybase, Inc. (a)		5,370		180,486
				742,134
				3,392,005

See Accompanying Notes to Financial Statements.
93

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Materials (5.3%)
Chemicals (1.8%)
H.B. Fuller Co.		8,890	$	222,250
Minerals Technologies, Inc.		1,270		81,928
Sensient Technologies Corp.		5,690		177,073
				481,251
Construction Materials (0.4%)
Eagle Materials, Inc.		4,220		104,698
Containers & Packaging (1.8%)
AptarGroup, Inc.		1,780		68,886
Greif, Inc., Class A		2,198		133,726
Greif, Inc., Class B		3,683		198,882
Packaging Corp. of America		3,344		85,339
				486,833
Metals & Mining (1.0%)
Carpenter Technology Corp.		1,700		65,790
Haynes International, Inc. (a)		1,756		83,304
Worthington Industries, Inc.		7,520		133,405
				282,499
Paper & Forest Products (0.3%)
Mercer International, Inc. (a)		11,380		70,784
				1,426,065
Telecommunication Services (0.6%)
Diversified Telecommunication Services (0.2%)
Warwick Valley Telephone Co.		5,850		62,712
Wireless Telecommunication Services (0.4%)
Syniverse Holdings, Inc. (a)		6,848		110,938
				173,650
Utilities (6.9%)
Electric Utilities (3.7%)
ALLETE, Inc.		3,810		162,154
El Paso Electric Co. (a)		8,600		177,676
Hawaiian Electric Industries, Inc.		5,210		128,895
Maine & Maritimes Corp. (a)		1,215		53,666
MGE Energy, Inc.		4,130		145,004
Portland General Electric Co.		6,957		163,420
UIL Holdings Corp.		4,670		146,078
				976,893
Gas Utilities (0.5%)
WGL Holdings, Inc.		3,550		122,582
Independent Power Producers & Energy Traders (0.6%)
Black Hills Corp.		5,260		169,740

See Accompanying Notes to Financial Statements.
94

CMG SMALL CAP VALUE FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Multi-Utilities (2.1%)
Avista Corp.		8,060	$	182,317
CH Energy Group, Inc.		7,150		259,188
NorthWestern Corp.		5,410		134,006
				575,511
				1,844,726
Total Common Stocks (Cost of $24,183,006)				26,755,226
Total Investments (100.0%) (Cost of $24,183,006) (c)				26,755,226
Other Assets & Liabilities, Net (0.0%)				(7,213	)
Net Assets (100.0%)			$	26,748,013

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  Represents fair value as determined in good faith under procedures approved by the Board of Trustees.

(c)  Cost for federal income tax purposes is $24,400,751.

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Financials		30.5
Industrials		14.8
Information Technology		12.7
Health Care		10.5
Consumer Discretionary		8.3
Utilities		6.9
Energy		5.8
Materials		5.3
Consumer Staples		4.6
Telecommunication Services		0.6
		100.0
Other Assets & Liabilities, Net		0.0	*
* Rounds to less than 0.01%.		100.0

See Accompanying Notes to Financial Statements.
95

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (99.1%)
Consumer Discretionary (14.2%)
Auto Components (0.3%)
WABCO Holdings, Inc.		814	$	36,760
Distributors (0.5%)
LKQ Corp. (a)		3,040		62,320
Diversified Consumer Services (2.3%)
Capella Education Co. (a)		784		40,925
Coinstar, Inc. (a)		2,410		83,121
ITT Educational Services, Inc. (a)		1,010		89,466
New Oriental Education & Technology Group, ADR (a)		770		53,900
				267,412
Hotels, Restaurants & Leisure (1.9%)
Ctrip.com International Ltd., ADR		1,071		48,291
Panera Bread Co., Class A (a)		1,130		56,613
Vail Resorts, Inc. (a)		1,320		53,302
WMS Industries, Inc. (a)		2,200		61,996
				220,202
Household Durables (0.6%)
Tupperware Brands Corp.		1,640		63,960
Internet & Catalog Retail (1.0%)
Priceline.com, Inc. (a)		1,020		117,249
Leisure Equipment & Products (0.4%)
Polaris Industries, Inc.		1,150		49,220
Media (1.7%)
Central European Media Enterprises Ltd., Class A (a)		900		74,925
Discovery Holding Co., Class A (a)		2,880		57,254
Morningstar, Inc. (a)		1,000		62,960
				195,139
Specialty Retail (3.6%)
GameStop Corp., Class A (a)		1,900		76,969
Guess ?, Inc.		1,380		43,705
J Crew Group, Inc. (a)		2,810		80,816
Ross Stores, Inc.		1,430		54,283
Tiffany & Co.		1,380		52,150
Urban Outfitters, Inc. (a)		3,020		99,690
				407,613
Textiles, Apparel & Luxury Goods (1.9%)
Deckers Outdoor Corp. (a)		770		87,018
True Religion Apparel, Inc. (a)		2,780		71,835
Warnaco Group, Inc. (a)		1,350		56,632
				215,485
				1,635,360

See Accompanying Notes to Financial Statements.
96

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Consumer Staples (1.6%)
Beverages (0.8%)
Central European Distribution Corp. (a)		1,220	$	89,011
Food Products (0.4%)
Green Mountain Coffee Roasters, Inc. (a)		1,260		45,801
Personal Products (0.4%)
Chattem, Inc. (a)		710		45,774
				180,586
Energy (10.3%)
Energy Equipment & Services (2.7%)
Atwood Oceanics, Inc. (a)		2,320		106,511
Cameron International Corp. (a)		1,400		66,864
Core Laboratories N.V.		630		81,654
FMC Technologies, Inc. (a)		910		56,220
				311,249
Oil, Gas & Consumable Fuels (7.6%)
Alpha Natural Resources, Inc. (a)		1,500		148,425
Concho Resources, Inc. (a)		2,135		69,921
Continental Resources, Inc. (a)		2,250		128,520
Denbury Resources, Inc. (a)		5,720		160,961
Foundation Coal Holdings, Inc.		700		41,580
Frontier Oil Corp.		1,720		31,390
Parallel Petroleum Corp. (a)		4,000		65,520
PetroHawk Energy Corp. (a)		3,450		114,954
Southwestern Energy Co. (a)		2,960		107,478
				868,749
				1,179,998
Financials (4.3%)
Capital Markets (2.2%)
Janus Capital Group, Inc.		2,870		87,076
Waddell & Reed Financial, Inc., Class A		5,050		168,670
				255,746
Real Estate Investment Trusts (REITs) (2.1%)
Alexandria Real Estate Equities, Inc.		540		55,760
Nationwide Health Properties, Inc.		1,720		63,829
Plum Creek Timber Co., Inc.		1,350		65,772
Washington Real Estate Investment Trust		1,690		57,900
				243,261
				499,007

See Accompanying Notes to Financial Statements.
97

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Health Care (21.3%)
Biotechnology (6.7%)
Alexion Pharmaceuticals, Inc. (a)		1,070	$	100,313
Amylin Pharmaceuticals, Inc. (a)		2,760		87,078
BioMarin Pharmaceuticals, Inc. (a)		2,000		65,100
Cepheid, Inc. (a)		1,740		29,789
ImClone Systems, Inc. (a)		1,200		76,716
Myriad Genetics, Inc. (a)		610		40,565
Onyx Pharmaceuticals, Inc. (a)		2,580		104,490
OSI Pharmaceuticals, Inc. (a)		2,240		117,891
Savient Pharmaceuticals, Inc. (a)		2,021		53,718
United Therapeutics Corp. (a)		780		88,444
				764,104
Health Care Equipment & Supplies (4.2%)
Hologic, Inc. (a)		6,090		112,482
Intuitive Surgical, Inc. (a)		234		72,842
Masimo Corp. (a)		1,708		64,511
Natus Medical, Inc. (a)		2,384		55,332
NuVasive, Inc. (a)		1,881		105,656
Varian Medical Systems, Inc. (a)		1,120		67,200
				478,023
Health Care Providers & Services (3.2%)
CardioNet, Inc. (a)		1,296		35,718
Genoptix, Inc. (a)		1,380		40,227
HealthExtras, Inc. (a)		2,145		64,371
IPC The Hospitalist Co., Inc. (a)		2,266		48,832
Laboratory Corp. of America Holdings (a)		970		65,553
Psychiatric Solutions, Inc. (a)		3,150		110,313
				365,014
Health Care Technology (0.5%)
Phase Forward, Inc. (a)		3,267		60,113
Life Sciences Tools & Services (6.1%)
Charles River Laboratories International, Inc. (a)		1,590		105,671
Covance, Inc. (a)		1,320		121,176
ICON PLC, ADR (a)		1,976		158,752
Illumina, Inc. (a)		820		76,457
Pharmaceutical Product Development, Inc.		2,490		94,969
Thermo Fisher Scientific, Inc. (a)		1,040		62,941
Waters Corp. (a)		1,260		85,604
				705,570
Pharmaceuticals (0.6%)
Perrigo Co.		1,870		65,880
				2,438,704

See Accompanying Notes to Financial Statements.
98

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Industrials (18.2%)
Aerospace & Defense (1.4%)
Goodrich Corp.		860	$	42,260
Hexcel Corp. (a)		3,030		57,510
Precision Castparts Corp.		600		56,058
				155,828
Air Freight & Logistics (0.6%)
HUB Group, Inc., Class A (a)		1,826		70,958
Commercial Services & Supplies (4.8%)
Advisory Board Co. (a)		980		37,583
CoStar Group, Inc. (a)		1,160		57,872
Dun & Bradstreet Corp.		550		53,152
FTI Consulting, Inc. (a)		1,090		77,564
Geo Group, Inc. (a)		2,390		57,456
Huron Consulting Group, Inc. (a)		1,524		79,492
Ritchie Bros Auctioneers, Inc.		3,650		95,302
Stericycle, Inc. (a)		1,520		90,820
				549,241
Construction & Engineering (0.9%)
Foster Wheeler Ltd. (a)		1,890		107,295
Electrical Equipment (4.5%)
AMETEK, Inc.		1,370		65,568
Energy Conversion Devices, Inc. (a)		960		67,133
First Solar, Inc. (a)		210		59,873
General Cable Corp. (a)		2,030		116,989
GrafTech International Ltd. (a)		3,300		77,385
Roper Industries, Inc.		1,200		73,416
SunPower Corp., Class A (a)		780		61,441
				521,805
Industrial Conglomerates (0.8%)
McDermott International, Inc. (a)		1,830		87,236
Machinery (3.8%)
Actuant Corp., Class A		1,400		42,644
Barnes Group, Inc.		2,660		60,089
Bucyrus International, Inc., Class A		1,350		94,514
Flowserve Corp.		610		81,337
Kaydon Corp.		1,140		54,059
Manitowoc Co., Inc.		1,350		35,586
RBC Bearings, Inc. (a)		1,970		65,542
				433,771

See Accompanying Notes to Financial Statements.
99

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Road & Rail (1.4%)
Genesee & Wyoming, Inc., Class A (a)		2,050	$	82,963
Landstar System, Inc.		1,620		81,940
				164,903
				2,091,037
Information Technology (18.6%)
Communications Equipment (0.6%)
Harris Corp.		1,550		74,633
Electronic Equipment & Instruments (1.3%)
DTS, Inc. (a)		3,084		88,172
Mettler-Toledo International, Inc. (a)		550		59,130
				147,302
Internet Software & Services (2.8%)
Bankrate, Inc. (a)		2,362		74,285
Equinix, Inc. (a)		650		52,884
Omniture, Inc. (a)		4,105		71,222
Vocus, Inc. (a)		3,525		125,454
				323,845
IT Services (3.2%)
Alliance Data Systems Corp. (a)		1,450		93,018
Cognizant Technology Solutions Corp., Class A (a)		2,240		62,877
Cybersource Corp. (a)		2,810		49,878
Gartner, Inc. (a)		2,290		55,784
Global Payments, Inc.		1,360		60,234
Total System Services, Inc.		2,130		41,705
				363,496
Semiconductors & Semiconductor Equipment (2.9%)
Atheros Communications, Inc. (a)		2,495		77,345
ATMI, Inc. (a)		1,820		41,005
Entegris, Inc. (a)		7,460		47,222
Hittite Microwave Corp. (a)		2,010		64,159
Microsemi Corp. (a)		1,800		46,728
Monolithic Power Systems, Inc. (a)		2,550		55,462
				331,921
Software (7.8%)
Activision Blizzard, Inc. (a)		2,170		78,077
Advent Software, Inc. (a)		1,910		83,161
Blackboard, Inc. (a)		2,220		88,711
Concur Technologies, Inc. (a)		2,020		83,264
FactSet Research Systems, Inc.		830		47,866
McAfee, Inc. (a)		2,070		67,793
Micros Systems, Inc. (a)		1,910		60,509
Net 1 UEPS Technologies, Inc. (a)		2,610		61,544
Solera Holdings, Inc. (a)		2,750		79,722
SPSS, Inc. (a)		1,550		51,228
Taleo Corp., Class A (a)		4,120		77,209

See Accompanying Notes to Financial Statements.
100

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Software (continued)
UBISOFT Entertainment (a)		680	$	67,210
Ultimate Software Group, Inc. (a)		1,750		45,903
				892,197
				2,133,394
Materials (8.2%)
Chemicals (4.4%)
Agrium, Inc.		1,220		107,360
CF Industries Holdings, Inc.		770		125,864
Intrepid Potash, Inc. (a)		942		52,093
Potash Corp. of Saskatchewan, Inc.		1,065		217,547
				502,864
Containers & Packaging (0.5%)
Silgan Holdings, Inc.		1,070		56,517
Metals & Mining (3.3%)
Cleveland-Cliffs, Inc.		1,470		159,363
Freeport-McMoRan Copper & Gold, Inc.		607		58,727
PAN American Silver Corp. (a)		2,700		83,565
Steel Dynamics, Inc.		2,520		79,834
				381,489
				940,870
Telecommunication Services (1.9%)
Wireless Telecommunication Services (1.9%)
American Tower Corp., Class A (a)		1,949		81,663
Crown Castle International Corp. (a)		1,380		52,716
SBA Communications Corp., Class A (a)		2,300		87,147
				221,526
Utilities (0.5%)
Electric Utilities (0.5%)
ITC Holdings Corp.		1,021		53,215
Total Common Stocks (Cost of $9,595,428)				11,373,697

See Accompanying Notes to Financial Statements.
101

CMG SMALL/MID CAP FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Short-Term Obligation (2.2%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 02/28/11, market value $259,700 (repurchase proceeds $253,014)	$	253,000	$	253,000
Total Short-Term Obligation (Cost of $253,000)				253,000
Total Investments (101.3%) (Cost of $9,848,428) (b)				11,626,697
Other Assets & Liabilities, Net (-1.3%)				(152,485	)
Net Assets (100.0%)			$	11,474,212

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  Cost for federal income tax purposes is $9,906,429.

For the year ended July 31, 2008, transactions in written options contracts were as follows:

	Number of contracts			Premium received
Options outstanding at July 31, 2007		-		$	-
Options written		23			7,028
Options bought back		(23	)		(7,028	)
Options outstanding at July 31, 2008		-		$	-

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Health Care		21.3
Information Technology		18.6
Industrials		18.2
Consumer Discretionary		14.2
Energy		10.3
Materials		8.2
Financials		4.3
Telecommunication Services		1.9
Consumer Staples		1.6
Utilities		0.5
		99.1
Short-Term Obligation		2.2
Other Assets & Liabilities, Net		(1.3	)
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.
102

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (96.5%)
Consumer Discretionary (7.6%)
Auto Components (0.3%)
Toyota Boshoku Corp.		12,900	$	284,830
Automobiles (1.3%)
Dongfeng Motor Group Co., Ltd., Class H		1,212,000		522,492
Honda Motor Co., Ltd.		10,900		348,496
Toyota Motor Corp.		7,900		339,460
				1,210,448
Distributors (0.3%)
Inchcape PLC		60,440		298,750
Hotels, Restaurants & Leisure (1.2%)
Kangwon Land, Inc.		20,070		475,940
Paddy Power PLC		24,088		668,420
				1,144,360
Household Durables (2.0%)
JM AB		37,400		439,640
Matsushita Electric Industrial Co., Ltd.		53,000		1,122,801
Sony Corp.		7,800		293,775
				1,856,216
Leisure Equipment & Products (0.4%)
Nikon Corp.		11,000		321,942
Media (1.5%)
Vivendi		32,690		1,366,355
Specialty Retail (0.6%)
Esprit Holdings Ltd.		48,900		522,654
				7,005,555
Consumer Staples (8.1%)
Beverages (1.3%)
Fomento Economico Mexicano SAB de CV, ADR (a)		15,182		696,247
Heineken NV		10,017		465,905
				1,162,152
Food & Staples Retailing (1.1%)
Seven & I Holdings Co., Ltd.		34,600		1,057,581
Food Products (2.8%)
China Milk Products Group Ltd.		771,000		384,245
Nestle SA, Registered Shares		20,950		918,147
Toyo Suisan Kaisha Ltd.		25,000		628,642
Unilever PLC		24,775		678,496
				2,609,530

See Accompanying Notes to Financial Statements.
103

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Household Products (0.5%)
Unicharm Corp.		6,100	$	430,472
Personal Products (0.6%)
Shiseido Co., Ltd.		23,000		510,689
Tobacco (1.8%)
British American Tobacco PLC		15,843		571,555
Imperial Tobacco Group PLC		18,865		705,093
Japan Tobacco, Inc.		79		369,669
				1,646,317
				7,416,741
Energy (9.5%)
Energy Equipment & Services (1.8%)
Noble Corp.		7,332		380,311
Technip SA		9,437		799,028
Wellstream Holdings PLC (b)		21,003		494,075
				1,673,414
Oil, Gas & Consumable Fuels (7.7%)
BP PLC, ADR		22,208		1,364,460
Centennial Coal Co., Ltd.		108,215		525,446
PetroChina Co., Ltd., Class H		608,000		811,794
PT Bumi Resources Tbk		515,500		380,839
Royal Dutch Shell PLC, Class B		23,052		812,012
StatoilHydro ASA		28,000		909,698
Total SA		20,215		1,549,871
Yanzhou Coal Mining Co., Ltd., Class H		384,000		691,201
				7,045,321
				8,718,735
Financials (23.6%)
Capital Markets (2.6%)
Credit Suisse Group AG, Registered Shares		11,583		581,488
Deutsche Bank AG, Registered Shares		11,572		1,074,827
Goldman Sachs Group, Inc. (a)		1,184		217,903
State Street Corp.		7,011		502,268
				2,376,486
Commercial Banks (13.2%)
Australia & New Zealand Banking Group Ltd.		25,032		375,970
Banco Bilbao Vizcaya Argentaria SA		73,224		1,339,537
Banco Santander SA		98,007		1,891,183
Barclays PLC		110,200		740,064
BNP Paribas		8,494		843,389
DBS Group Holdings Ltd.		49,000		684,377
HBOS PLC		94,474		542,244
HSBC Holdings PLC		68,614		1,135,230
Industrial & Commercial Bank of China, Class H		491,000		369,397

See Accompanying Notes to Financial Statements.
104

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Commercial Banks (continued)
Lloyds TSB Group PLC		68,402	$	399,317
Mizuho Financial Group, Inc.		177		847,586
Swedbank AB, Class A		31,400		656,337
Uniao de Bancos Brasileiros SA, GDR		3,039		400,024
United Overseas Bank Ltd.		54,000		766,725
Westpac Banking Corp.		43,720		871,713
Yamaguchi Financial Group, Inc.		21,000		280,254
				12,143,347
Consumer Finance (0.5%)
ORIX Corp.		2,920		441,954
Diversified Financial Services (0.9%)
Fortis		22,819		322,444
ING Groep NV		15,330		501,140
				823,584
Insurance (4.1%)
Aviva PLC		50,393		500,006
Axis Capital Holdings Ltd.		22,908		725,726
Baloise Holding AG, Registered Shares		10,250		959,651
Brit Insurance Holdings PLC		183,088		553,314
Swiss Reinsurance, Registered Shares		15,743		977,680
				3,716,377
Real Estate Management & Development (2.3%)
Emaar Properties PJSC		214,999		614,592
Hongkong Land Holdings Ltd.		195,000		802,617
Swire Pacific Ltd., Class A		63,500		675,818
				2,093,027
				21,594,775
Health Care (8.1%)
Pharmaceuticals (8.1%)
AstraZeneca PLC		28,893		1,400,474
Biovail Corp.		55,442		562,736
Daiichi Sankyo Co., Ltd.		19,200		572,279
Novartis AG, Registered Shares		32,410		1,921,106
Novo-Nordisk A/S, Class B		7,775		494,632
Roche Holding AG, Genusschein Shares		9,802		1,810,120
Takeda Pharmaceutical Co., Ltd.		12,500		663,999
				7,425,346
Industrials (12.6%)
Aerospace & Defense (0.5%)
MTU Aero Engines Holding AG		14,611		453,547
Commercial Services & Supplies (0.6%)
Randstad Holding NV		18,397		518,998

See Accompanying Notes to Financial Statements.
105

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Construction & Engineering (0.8%)
Outotec Oyj		14,927	$	764,892
Electrical Equipment (3.3%)
ABB Ltd., Registered Shares		36,098		951,215
Gamesa Corp. Tecnologica SA		11,978		570,228
Mitsubishi Electric Corp.		67,000		649,893
Vestas Wind Systems A/S (b)		6,793		893,047
				3,064,383
Industrial Conglomerates (1.0%)
Keppel Corp. Ltd.		121,000		930,799
Machinery (4.2%)
Georg Fischer AG, Registered Shares (b)		1,154		416,149
Gildemeister AG		12,290		353,602
Glory Ltd.		33,900		737,737
Hino Motors Ltd.		90,000		470,584
Komatsu Ltd.		32,400		798,664
SKF AB, Class B		30,000		508,536
Volvo AB, Class B		44,600		537,593
				3,822,865
Marine (0.5%)
U-Ming Marine Transport Corp.		152,000		406,099
Road & Rail (0.7%)
Central Japan Railway Co.		62		629,947
Trading Companies & Distributors (1.0%)
ITOCHU Corp.		52,000		510,034
Mitsubishi Corp.		14,700		426,270
				936,304
				11,527,834
Information Technology (6.0%)
Communications Equipment (1.6%)
Nokia Oyj		55,556		1,518,547
Electronic Equipment & Instruments (0.7%)
FUJIFILM Holdings Corp.		22,100		692,437
IT Services (0.6%)
Computershare Ltd.		65,949		538,386
Office Electronics (1.3%)
Canon, Inc.		25,700		1,174,389

See Accompanying Notes to Financial Statements.
106

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Semiconductors & Semiconductor Equipment (0.5%)
Verigy Ltd. (b)		18,894	$	420,014
Software (1.3%)
Nintendo Co., Ltd.		2,400		1,157,328
				5,501,101
Materials (10.8%)
Chemicals (3.2%)
BASF SE		21,538		1,365,666
Linde AG		7,889		1,089,387
Potash Corp. of Saskatchewan (a)		2,500		513,624
				2,968,677
Construction Materials (0.9%)
Ciments Francais SA		5,843		809,859
Metals & Mining (6.7%)
Anglo American PLC		11,960		685,650
BHP Biliton PLC		44,156		1,473,549
Freeport-McMoRan Copper & Gold, Inc.		2,437		235,780
Norsk Hydro ASA		43,400		545,945
Rio Tinto PLC		6,695		702,110
Salzgitter AG		5,143		842,790
SSAB Svenskt Stal AB, Series A		15,100		415,437
Xstrata PLC		4,924		352,985
Yamato Kogyo Co., Ltd.		20,300		908,801
				6,163,047
				9,941,583
Telecommunication Services (6.0%)
Diversified Telecommunication Services (4.2%)
Bezeq Israeli Telecommunication Corp., Ltd.		478,208		865,673
Chunghwa Telecom Co., Ltd., ADR		15,426		388,581
Nippon Telegraph & Telephone Corp.		122		618,441
Telefonica O2 Czech Republic AS		30,969		1,038,764
Telekomunikacja Polska SA		83,811		927,517
				3,838,976
Wireless Telecommunication Services (1.8%)
China Mobile Ltd.		55,500		742,381
Mobile TeleSystems OJSC, ADR		7,289		520,435
Vodafone Group PLC		162,692		436,825
				1,699,641
				5,538,617

See Accompanying Notes to Financial Statements.
107

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Utilities (4.2%)
Electric Utilities (3.0%)
E.ON AG		10,366	$	1,977,937
Iberdrola SA		56,273		764,129
				2,742,066
Water Utilities (1.2%)
United Utilities Group PLC		61,788		849,008
United Utilities Group PLC, Class B (c)		79,962		269,444
				1,118,452
				3,860,518
Total Common Stocks (Cost of $83,828,776)				88,530,805
Investment Companies (1.9%)
iShares MSCI Brazil Index Fund		4,211		342,102
iShares MSCI EAFE Index Fund		20,998		1,394,057
Total Investment Companies (Cost of $1,860,148)				1,736,159
Preferred Stocks (0.6%)
Consumer Staples (0.3%)
Food Products (0.3%)
Sadia SA		40,700		297,526
Utilities (0.3%)
Electric Utilities (0.3%)
Cia Energetica de Minas Gerais		12,800		303,594
Total Preferred Stocks (Cost of $613,564)				601,120
	Par
Short-Term Obligation (0.7%)
Repurchase agreement with Fixed Income Clearing Corp., dated 07/31/08, due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 02/28/11, market value $657,200 (repurchase proceeds $642,035)	$	642,000		642,000
Total Short-Term Obligation (Cost of $642,000)				642,000
Total Investments (99.7%) (Cost of $86,944,488) (d)				91,510,084
Other Assets & Liabilities, Net (0.3%)				230,371
Net Assets (100.0%)			$	91,740,455

See Accompanying Notes to Financial Statements.
108

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

Notes to Schedule of Investments:

(a)  All or a portion of these securities are pledged as collateral for open written options contracts.

(b)  Non-income producing security.

(c)  Represents fair value as determined in good faith under procedures approved by the Board of Trustees.

(d)  Cost for federal income tax purposes is $87,532,839.

At July 31, 2008, the Fund held the following written call option contracts:

Name of Issuer	Strike Price		Number of Contracts		Expiration Date	Premium		Value
Goldman Sachs Group, Inc.	$	200		11	08/16/08	$	1,308	$	770
Fomento Economico Mexicano SAB de CV, ADR		50		50	08/16/08		2,307		1,250
Potash Corp. of Saskatchewan		240		9	08/16/08		963		810
Total written call options (proceeds $4,578)								$	2,830

For the year ended July 31, 2008, transactions in written option contracts were as follows:

	Number of contracts			Premium received
Options outstanding at July 31, 2007		112		$	5,297
Options written		495			45,426
Options terminated in closing purchase transactions		(25	)		(2,458	)
Options exercised		(6	)		(1,992	)
Options expired		(506	)		(41,695	)
Options outstanding at July 31, 2008		70		$	4,578

Forward foreign currency exchange contracts outstanding on July 31, 2008 are:

Forward Currency Contracts to Buy	Value		Aggregate Face Value		Settlement Date	Unrealized Appreciation (Depreciation)
AUD	$	4,236,145	$	4,182,853	09/17/08	$	53,292
AUD		163,720		166,943	09/17/08		(3,223	)
CAD		178,611		178,786	09/17/08		(175	)
CHF		308,506		313,653	09/17/08		(5,147	)
CHF		157,596		159,078	09/17/08		(1,482	)
EUR		9,462,580		9,336,934	09/17/08		125,646
EUR		283,162		284,313	09/17/08		(1,151	)
JPY		1,304,786		1,306,160	09/17/08		(1,374	)
JPY		61,199		61,309	09/17/08		(110	)
NOK		549,974		555,752	09/17/08		(5,778	)
NOK		163,768		162,356	09/17/08		1,412
NOK		179,504		178,585	09/17/08		919
GBP		4,007,153		3,918,932	09/17/08		88,221
GBP		173,795		173,870	09/17/08		(75	)
SGD		89,442		89,990	09/17/08		(548	)
						$	250,427

See Accompanying Notes to Financial Statements.
109

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

Forward Currency Contracts to Sell	Value		Aggregate Face Value		Settlement Date	Unrealized Appreciation (Depreciation)
AUD	$	754,049	$	767,731	09/17/08	$	13,682
CAD		1,030,671		1,028,538	09/17/08		(2,133	)
CAD		48,801		49,495	09/17/08		694
CHF		2,972,356		2,977,421	09/17/08		5,065
CZK		1,155,008		1,127,631	09/17/08		(27,377	)
CZK		54,164		55,224	09/17/08		1,060
DKK		473,059		466,623	09/17/08		(6,436	)
DKK		22,100		22,185	09/17/08		85
EUR		15,558		15,617	09/17/08		59
GBP		284,391		282,629	09/17/08		(1,762	)
IDR		293,384		281,806	09/17/08		(11,578	)
IDR		13,762		13,721	09/17/08		(41	)
ILS		1,364,183		1,399,095	09/17/08		34,912
ILS		64,026		64,127	09/17/08		101
NOK		1,139,578		1,115,103	09/17/08		(24,475	)
KRW		479,453		468,624	09/17/08		(10,829	)
KRW		22,490		22,587	09/17/08		97
PLN		498,618		466,838	09/17/08		(31,780	)
PLN		284,511		277,125	09/17/08		(7,386	)
PLN		36,649		36,733	09/17/08		84
SEK		188,268		186,920	09/17/08		(1,348	)
SEK		8,895		8,915	09/17/08		20
SEK		357,430		356,662	09/17/08		(768	)
SGD		1,415,679		1,403,649	09/17/08		(12,030	)
SGD		62,316		62,546	09/17/08		230
TWD		835,971		843,454	09/17/08		7,483
TWD		39,197		39,507	09/17/08		310
						$	(74,061	)

See Accompanying Notes to Financial Statements.
110

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

At July 31, 2008, the Fund is invested in the following countries:

Country (Unaudited)	Value		% of Total Investments
Japan	$	17,288,954		18.9
United Kingdom		14,964,661		16.4
Switzerland		8,535,556		9.3
Germany		7,157,756		7.8
France		5,368,502		5.9
United States*		4,862,453		5.3
Spain		4,565,077		5.0
Singapore		2,801,915		3.1
Sweden		2,557,543		2.8
China		2,394,884		2.6
Australia		2,311,515		2.5
Finland		2,283,439		2.5
Hong Kong		1,940,853		2.1
Netherlands		1,486,043		1.6
Norway		1,455,643		1.6
Denmark		1,387,679		1.5
Canada		1,076,360		1.2
Czech Republic		1,038,764		1.1
Brazil		1,001,144		1.1
Poland		927,517		1.0
Israel		865,673		0.9
Taiwan		794,680		0.9
Cayman Islands		764,556		0.8
Mexico		696,247		0.8
Ireland		668,420		0.7
United Arab Emirates		614,592		0.7
Russia		520,435		0.6
Korea		475,940		0.5
Indonesia		380,839		0.4
Belgium		322,444		0.4
	$	91,510,084		100.0

*Includes short-term obligation and investment companies.

Certain securities are listed by country of underlying exposure but may trade predominantly on other exchanges.

Acronym	Name
ADR	American Depositary Receipt
AUD	Australian Dollar
CAD	Canadian Dollar
CHF	Swiss Franc
CZK	Czech Koruna
DKK	Danish Krone
EUR	Euro
GBP	Pound Sterling

See Accompanying Notes to Financial Statements.
111

CMG INTERNATIONAL STOCK FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

Acronym	Name
GDR	Global Depositary Receipt
IDR	Indonesian Rupiah
ILS	Israeli Shekel
JPY	Japanese Yen
KRW	South Korean Won
NOK	Norwegian Krone
PLN	Polish Zloty
SEK	Swedish Krona
SGD	Singapore Dollar
TWD	Taiwan Dollar

See Accompanying Notes to Financial Statements.
112

This page is intentionally left blank.

    
  STATEMENTS OF ASSETS AND LIABILITIES

July 31, 2008

	CMG Enhanced S&P 500® Index Fund			CMG Large Cap Growth Fund			CMG Large Cap Value Fund			CMG Mid Cap Growth Fund			CMG Mid Cap Value Fund
ASSETS:
Investments, at identified cost	$	182,283,417		$	59,708,101		$	48,229,947		$	22,331,464		$	16,391,466
Investments, at value (including securities on loan of $12,577,303, $11,131,590, $10,183,653, $- ,$- ,$- ,$- ,$- and $-, respectively)		$177,824,326			$63,240,348			$48,027,142			$25,763,790			$17,040,286
Cash		516			868			811			575			131
Foreign currency (cost of $-, $-, $-, $-, $-, $-, $-, $- and $27,311, respectively)		-			-			-			-			-
Unrealized appreciation on forward foreign currency exchange contracts		-			-			-			-			-
Receivable for:
Investments sold		-			944,855			880,335			681,855			92,657
Fund shares sold		494,000			-			-			40,000			-
Interest		168			59			56			71			247
Dividends		157,802			21,623			58,575			13,839			13,631
Securities lending		7,543			6,531			4,725			-			-
Foreign tax reclaims		-			-			-			158			-
Expense reimbursement due from investment advisor		5,311			5,439			5,469			5,523			5,567
Trustees' deferred compensation plan		13,365			10,372			10,352			10,837			9,541
Other assets		-			-			-			-			-
Total Assets		178,503,031			64,230,095			48,987,465			26,516,648			17,162,060
LIABILITIES:
Payable to custodian bank		-			-			-			-			-
Collateral on securities loaned		13,161,109			11,888,773			10,510,738			-			-
Unrealized depreciation on forward foreign currency exchange contracts		-			-			-			-			-
Written options at value (premium $-, $-, $-, $-, $-, $8,362, $-, $-, and $4,578, respectively)		-			-			-			-			-
Payable for:
Investments purchased		-			1,032,823			664,080			1,433,407			6,257
Fund shares repurchased		-			-			-			-			-
Futures variation margin		44,105			-			-			-			-
Investment advisory fee		35,711			21,661			15,785			15,040			10,142
Trustees' fees		100			50			50			50			50
Transfer agent fees		-			-			-			-			-
Custody fee		-			-			-			-			-
Audit fee		30,375			35,575			35,575			35,575			35,575
Reports to shareholders		-			-			-			-			-
Chief compliance officer expenses		-			-			-			-			-
Trustees' deferred compensation plan		13,365			10,372			10,352			10,837			9,541
Other liabilities		11,893			10,368			10,257			10,129			21,081
Total Liabilities		13,296,658			12,999,622			11,246,837			1,505,038			82,646
NET ASSETS	$	165,206,373		$	51,230,473		$	37,740,628		$	25,011,610		$	17,079,414
NET ASSETS CONSIST OF:
Paid-in capital	$	181,369,302		$	49,091,930		$	40,775,577		$	20,911,599		$	16,621,701
Undistributed (overdistributed) net investment income		2,022,617			174,486			453,010			(12,319	)		16,605
Accumulated net investment loss		-			-			-			-			-
Accumulated net realized gain (loss)		(13,734,775	)		(1,568,190	)		(3,285,154	)		680,002			(207,712	)
Net unrealized appreciation (depreciation) on:
Investments		(4,459,091	)		3,532,247			(202,805	)		3,432,326			648,820
Foreign currency translations		-			-			-			2			-
Futures contracts		8,320			-			-			-			-
Written options		-			-			-			-			-
NET ASSETS	$	165,206,373		$	51,230,473		$	37,740,628		$	25,011,610		$	17,079,414
Shares of capital stock outstanding		13,555,439			4,591,084			4,030,893			1,802,097			1,567,555
Net asset value, offering and redemption price per share	$	12.19		$	11.16		$	9.36		$	13.88		$	10.90

See Accompanying Notes to Financial Statements.
114

	CMG Small Cap Growth Fund			CMG Small Cap Value Fund		CMG Small/Mid Cap Fund			CMG International Stock Fund
ASSETS:
Investments, at identified cost	$	35,413,514		$	24,183,006	$	9,848,428		$	86,944,488
Investments, at value (including securities on loan of $12,577,303, $11,131,590, $10,183,653, $- ,$- ,$- ,$- ,$- and $-, respectively)		$41,813,618			$26,755,226		$11,626,697			$91,510,084
Cash		707			47,299		48			-
Foreign currency (cost of $-, $-, $-, $-, $-, $-, $-, $- and $27,311, respectively)		-			-		-			27,119
Unrealized appreciation on forward foreign currency exchange contracts		-			-		-			333,372
Receivable for:
Investments sold		1,216,006			18,881		516,951			963
Fund shares sold		-			-		-			-
Interest		78			-		14			36
Dividends		6,057			23,756		1,833			108,442
Securities lending		-			-		-			-
Foreign tax reclaims		-			-		-			103,993
Expense reimbursement due from investment advisor		7,690			5,553		6,511			14,094
Trustees' deferred compensation plan		18,553			11,745		9,954			14,353
Other assets		380			-		-			-
Total Assets		43,063,089			26,862,460		12,162,008			92,112,456
LIABILITIES:
Payable to custodian bank		-			-		-			320
Collateral on securities loaned		-			-		-			-
Unrealized depreciation on forward foreign currency exchange contracts		-			-		-			157,006
Written options at value (premium $-, $-, $-, $-, $-, $8,362, $-, $-, and $4,578, respectively)		3,250			-		-			2,830
Payable for:
Investments purchased		2,129,041			39,380		636,404			-
Fund shares repurchased		-			-		-			100,000
Futures variation margin		-			-		-			-
Investment advisory fee		25,694			17,561		7,155			57,881
Trustees' fees		60			50		774			1,278
Transfer agent fees		6			-		-			-
Custody fee		4,019			-		-			-
Audit fee		34,102			35,575		29,957			33,600
Reports to shareholders		17,979			-		-			-
Chief compliance officer expenses		59			-		-			-
Trustees' deferred compensation plan		18,553			11,745		9,954			14,353
Other liabilities		12,073			10,136		3,552			4,733
Total Liabilities		2,244,836			114,447		687,796			372,001
NET ASSETS	$	40,818,253		$	26,748,013	$	11,474,212		$	91,740,455
NET ASSETS CONSIST OF:
Paid-in capital	$	35,977,064		$	22,108,914	$	10,011,940		$	85,566,430
Undistributed (overdistributed) net investment income		-			51,209		-			271,721
Accumulated net investment loss		(22,337	)		-		(12,289	)		-
Accumulated net realized gain (loss)		(1,541,690	)		2,015,670		(303,708	)		1,152,855
Net unrealized appreciation (depreciation) on:
Investments		6,400,104			2,572,220		1,778,269			4,565,596
Foreign currency translations		-			-		-			182,105
Futures contracts		-			-		-			-
Written options		5,112			-		-			1,748
NET ASSETS	$	40,818,253		$	26,748,013	$	11,474,212		$	91,740,455
Shares of capital stock outstanding		23,936,194			2,419,198		2,866,553			8,618,029
Net asset value, offering and redemption price per share	$	1.71		$	11.06	$	4.00		$	10.65

See Accompanying Notes to Financial Statements.
115

    
  STATEMENTS OF OPERATIONS

For the Year Ended July 31, 2008

	CMG Enhanced S&P 500® Index Fund			CMG Large Cap Growth Fund			CMG Large Cap Value Fund			CMG Mid Cap Growth Fund			CMG Mid Cap Value Fund
INVESTMENT INCOME:
Income:
Dividends	$	4,242,975		$	516,553		$	1,012,842		$	145,734		$	267,393
Interest		138,270			52,445			36,158			26,820			16,839
Securities lending		84,808			59,786			41,611			-			-
Foreign withholding tax		-			(400	)		(992	)		(1,714	)		(352	)
Total investment income		4,466,053			628,384			1,089,619			170,840			283,880
Expenses:
Investment advisory fee		540,937			281,635			210,397			192,548			127,887
Transfer agent fee		-			-			-			-			-
Trustees' fees		21,929			15,071			14,565			13,997			13,595
Custody fee		-			-			-			-			-
Pricing and bookkeeping fees		-			-			-			-			-
Audit fee		38,122			43,319			43,320			43,320			43,321
Reports to shareholders		-			-			-			-			-
Chief compliance officer expenses		-			-			-			-			-
Other expenses		37,372			26,371			25,429			24,626			24,071
Expenses before interest expense		638,360			366,396			293,711			274,491			208,874
Interest expense		2,302			130			-			-			-
Total expenses		640,662			366,526			293,711			274,491			208,874
Fees and expenses waived or reimbursed by investment advisor		(97,423	)		(84,761	)		(83,314	)		(81,943	)		(80,987	)
Custody earnings credit		-			-			-			-			-
Net expenses		543,239			281,765			210,397			192,548			127,887
Net investment income (loss)		3,922,814			346,619			879,222			(21,708	)		155,993
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, WRITTEN OPTIONS, FOREIGN CURRENCY AND FUTURES CONTRACTS:
Net realized gain (loss) on:
Investments		(12,463,036	)		(1,282,517	)		(3,232,984	)		1,649,697			(63,643	)
Written options		-			-			(7,687	)		(39,012	)		21,982
Foreign currency transactions		-			-			-			(5,792	)		13
Futures contracts		(1,030,167	)		-			-			-			-
Realized loss due to a trading error		-			-			-			-			-
Reimbursement of a trading loss by investment advisor (See Note 9)		-			-			-			-			-
Net realized gain (loss)		(13,493,203	)		(1,282,517	)		(3,240,671	)		1,604,893			(41,648	)
Net change in unrealized appreciation (depreciation) on:
Investments		(17,503,515	)		(280,959	)		(3,947,592	)		(1,521,370	)		(2,548,016	)
Written options		-			-			-			-			-
Foreign currency translations		-			-			-			(1	)		-
Futures contracts		155,052			-			-			-			-
Net change in unrealized appreciation (depreciation)		(17,348,463	)		(280,959	)		(3,947,592	)		(1,521,371	)		(2,548,016	)
Net gain (loss)		(30,841,666	)		(1,563,476	)		(7,188,263	)		83,522			(2,589,664	)
NET INCREASE (DECREASE) RESULTING FROM OPERATIONS	$	(26,918,852	)	$	(1,216,857	)	$	(6,309,041	)	$	61,814		$	(2,433,671	)

See Accompanying Notes to Financial Statements.
116

	CMG Small Cap Growth Fund			CMG Small Cap Value Fund			CMG Small/Mid Cap Fund			CMG International Stock Fund
INVESTMENT INCOME:
Income:
Dividends	$	166,927		$	414,685		$	43,957		$	3,817,098
Interest		94,389			3,210			21,255			25,924
Securities lending		-			-			-			-
Foreign withholding tax		(582	)		-			(430	)		(300,684	)
Total investment income		260,734			417,895			64,782			3,542,338
Expenses:
Investment advisory fee		330,544			227,357			91,245			815,774
Transfer agent fee		31			-			-			-
Trustees' fees		12,152			14,110			14,656			15,960
Custody fee		21,804			-			-			-
Pricing and bookkeeping fees		1,147			-			-			-
Audit fee		43,160			43,321			38,534			54,858
Reports to shareholders		26,018			-			-			-
Chief compliance officer expenses		519			-			-			-
Other expenses		32,509			24,641			10,120			16,179
Expenses before interest expense		467,884			309,429			154,555			902,771
Interest expense		144			1,590			-			495
Total expenses		468,028			311,019			154,555			903,266
Fees and expenses waived or reimbursed by investment advisor		(114,563	)		(82,072	)		(63,310	)		(86,997	)
Custody earnings credit		(339	)		-			-			-
Net expenses		353,126			228,947			91,245			816,269
Net investment income (loss)		(92,392	)		188,948			(26,463	)		2,726,069
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, WRITTEN OPTIONS, FOREIGN CURRENCY AND FUTURES CONTRACTS:
Net realized gain (loss) on:
Investments		218,757			2,295,661			143,482			3,485,445
Written options		(70,266	)		-			(6,947	)		38,807
Foreign currency transactions		(2,040	)		-			(1,080	)		(561,365	)
Futures contracts		-			-			-			-
Realized loss due to a trading error		-			-			-			(371	)
Reimbursement of a trading loss by investment advisor (See Note 9)		-			-			-			371
Net realized gain (loss)		146,451			2,295,661			135,455			2,962,887
Net change in unrealized appreciation (depreciation) on:
Investments		319,370			(4,519,602	)		86,830			(21,368,414	)
Written options		5,112			-			-			(189	)
Foreign currency translations		-			-			-			23,530
Futures contracts		-			-			-			-
Net change in unrealized appreciation (depreciation)		324,482			(4,519,602	)		86,830			(21,345,073	)
Net gain (loss)		470,933			(2,223,941	)		222,285			(18,382,186	)
NET INCREASE (DECREASE) RESULTING FROM OPERATIONS	$	378,541		$	(2,034,993	)	$	195,822		$	(15,656,117	)

See Accompanying Notes to Financial Statements.
117

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Enhanced S&P 500® Index Fund
	Year Ended July 31,
	2008			2007
Operations:
Net investment income	$	3,922,814		$	2,521,206
Net realized gain (loss) on investments and futures contracts		(13,493,203	)		7,728,176
Net change in unrealized appreciation (depreciation) on investments and futures contracts		(17,348,463	)		3,819,643
Net increase (decrease) resulting from operations		(26,918,852	)		14,069,025
Distributions to shareholders:
From net investment income		(3,477,461	)		(1,720,935	)
From net realized gains		(7,014,878	)		(7,095,404	)
Total distributions to shareholders		(10,492,339	)		(8,816,339	)
Share transactions:
Subscriptions		33,444,264			124,166,877
Distributions reinvested		3,895,305			3,163,765
Redemptions		(57,420,084	)		(10,858,416	)
Net increase (decrease) in share transactions		(20,080,515	)		116,472,226
Net increase (decrease) in net assets		(57,491,706	)		121,724,912
NET ASSETS:
Beginning of period		222,698,079			100,973,167
End of period	$	165,206,373		$	222,698,079
Undistributed net investment income, at end of period	$	2,022,617		$	1,601,700
Change in shares:
Subscriptions		2,362,098			8,393,109
Distributions reinvested		280,036			221,397
Redemptions		(4,417,810	)		(749,508	)
Net increase (decrease)		(1,775,676	)		7,864,998

See Accompanying Notes to Financial Statements.
118

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Large Cap Growth Fund						CMG Large Cap Value Fund
	Year Ended July 31,						Year Ended July 31,
	2008			2007			2008			2007
Operations:
Net investment income	$	346,619		$	263,995		$	879,222		$	681,690
Net realized gain (loss) on investments and written options		(1,282,517	)		4,510,122			(3,240,671	)		4,545,392
Net change in unrealized appreciation (depreciation)   on investments		(280,959	)		1,786,112			(3,947,592	)		(715,525	)
Net increase (decrease) resulting from operations		(1,216,857	)		6,560,229			(6,309,041	)		4,511,557
Distributions to shareholders:
From net investment income		(307,640	)		(240,113	)		(813,201	)		(638,584	)
From net realized gains		(3,957,565	)		(2,140,830	)		(4,036,007	)		(2,775,916	)
Total distributions to shareholders		(4,265,205	)		(2,380,943	)		(4,849,208	)		(3,414,500	)
Share transactions:
Subscriptions		3,175,927			21,201,017			2,649,929			13,098,066
Distributions reinvested		2,330,690			1,159,364			2,336,648			1,648,088
Redemptions		(7,772,535	)		(3,326,396	)		(918,028	)		(8,293,069	)
Net increase (decrease) in share transactions		(2,265,918	)		19,033,985			4,068,549			6,453,085
Net increase (decrease) in net assets		(7,747,980	)		23,213,271			(7,089,700	)		7,550,142
NET ASSETS
Beginning of period		58,978,453			35,765,182			44,830,328			37,280,186
End of period	$	51,230,473		$	58,978,453		$	37,740,628		$	44,830,328
Undistributed net investment income, at end of period	$	174,486		$	152,738		$	453,010		$	389,628
Change in shares:
Subscriptions		262,993			1,682,234			245,081			1,042,361
Distributions reinvested		188,415			97,754			215,161			137,341
Redemptions		(574,762	)		(281,641	)		(73,903	)		(671,337	)
Net increase (decrease)		(123,354	)		1,498,347			386,339			508,365

See Accompanying Notes to Financial Statements.
119

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Mid Cap Growth Fund						CMG Mid Cap Value Fund
	Year Ended July 31,						Year Ended July 31,
	2008			2007			2008			2007
Operations:
Net investment income (loss)	$	(21,708	)	$	146,419		$	155,993		$	270,962
Net realized gain (loss) on investments, written options and   foreign currency transactions		1,604,893			4,221,220			(41,648	)		2,120,276
Net change in unrealized appreciation (depreciation)   on investments and foreign   currency translations		(1,521,371	)		1,281,485			(2,548,016	)		648,236
Net increase (decrease) resulting from operations		61,814			5,649,124			(2,433,671	)		3,039,474
Distributions to shareholders:
From net investment income		(89,956	)		(93,030	)		(287,840	)		(196,538	)
From net realized gains		(4,351,636	)		(2,823,900	)		(1,695,514	)		(2,606,305	)
Total distributions to shareholders		(4,441,592	)		(2,916,930	)		(1,983,354	)		(2,802,843	)
Share transactions:
Subscriptions		2,487,868			5,926,804			3,915,371			5,217,552
Distributions reinvested		2,336,715			1,214,957			980,570			1,292,451
Redemptions		(4,106,793	)		(4,836,047	)		(2,695,952	)		(5,211,798	)
Net increase in share transactions		717,790			2,305,714			2,199,989			1,298,205
Net increase (decrease) in net assets		(3,661,988	)		5,037,908			(2,217,036	)		1,534,836
NET ASSETS:
Beginning of period		28,673,598			23,635,690			19,296,450			17,761,614
End of period	$	25,011,610		$	28,673,598		$	17,079,414		$	19,296,450
Undistributed (overdistributed) net investment income,   at end of period	$	(12,319	)	$	66,919		$	16,605		$	155,300
Change in shares:
Subscriptions		171,048			389,503			325,999			365,557
Distributions reinvested		158,421			80,889			78,571			98,285
Redemptions		(267,602	)		(308,106	)		(206,528	)		(361,340	)
Net increase		61,867			162,286			198,042			102,502

See Accompanying Notes to Financial Statements.
120

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Small Cap Growth Fund						CMG Small Cap Value Fund
	Year Ended July 31,						Year Ended July 31,
	2008			2007			2008			2007
Operations:
Net investment income (loss)	$	(92,392	)	$	(101,978	)	$	188,948		$	240,354
Net realized gain on investments, written options and foreign   currency transactions		146,451			6,024,819			2,295,661			5,783,692
Net change in unrealized appreciation (depreciation)   on investments and   written options		324,482			2,429,355			(4,519,602	)		(2,143,372	)
Net increase (decrease) resulting from operations		378,541			8,352,196			(2,034,993	)		3,880,674
Distributions to shareholders:
From net investment income		-			-			(274,060	)		(208,296	)
From net realized gains		(6,279,372	)		(8,560,579	)		(3,718,779	)		(5,551,832	)
From return of capital		(159,987	)		-			-			-
Total distributions to shareholders		(6,439,359	)		(8,560,579	)		(3,992,839	)		(5,760,128	)
Share transactions:
Subscriptions		10,835,393			4,449,121			4,608,081			5,437,309
Distributions reinvested		5,412,921			6,665,647			3,292,542			4,751,572
Redemptions		(9,268,493	)		(11,190,327	)		(7,076,591	)		(9,796,788	)
Net increase (decrease) in share transactions		6,979,821			(75,559	)		824,032			392,093
Net increase (decrease) in net assets		919,003			(283,942	)		(5,203,800	)		(1,487,361	)
NET ASSETS
Beginning of period		39,899,250			40,183,192			31,951,813			33,439,174
End of period	$	40,818,253		$	39,899,250		$	26,748,013		$	31,951,813
Undistributed (overdistributed) net investment income,   at end of period	$	-		$	-		$	51,209		$	136,218
Accumulated net investment loss, at end of period	$	(22,337	)	$	(19,597	)	$	-		$	-
Change in shares:
Subscriptions		5,512,467			2,240,488			390,255			370,997
Distributions reinvested		2,957,880			3,765,902			284,822			344,567
Redemptions		(4,948,412	)		(5,394,303	)		(548,483	)		(607,276	)
Net increase		3,521,935			612,087			126,594			108,288

See Accompanying Notes to Financial Statements.
121

STATEMENTS OF CHANGES IN NET ASSETS

	CMG Small/Mid Cap Fund						CMG International Stock Fund
	Year Ended July 31,						Year Ended July 31,
	2008			2007			2008			2007
Operations:
Net investment income (loss)	$	(26,463	)	$	(1,211	)	$	2,726,069		$	2,129,982
Net realized gain on investments, written options and foreign   currency transactions		135,455			1,727,847			2,962,887			15,093,417
Net change in unrealized appreciation (depreciation)   on investments, written options,   and foreign currency translations		86,830			343,875			(21,345,073	)		8,013,343
Net increase (decrease) resulting from operations		195,822			2,070,511			(15,656,117	)		25,236,742
Distributions to shareholders:
From net investment income		-			-			(3,839,262	)		(2,513,869	)
From net realized gains		(1,812,017	)		(6,782,938	)		(13,751,675	)		(20,428,853	)
From return of capital		(71,809	)		-			-			-
Total distributions to shareholders		(1,883,826	)		(6,782,938	)		(17,590,937	)		(22,942,722	)
Share transactions:
Subscriptions		-			11,500,000			12,545,498			20,493,154
Distributions reinvested		1,646,043			6,782,938			11,751,665			14,502,772
Redemptions		(1,000,000	)		(9,827,294	)		(19,624,059	)		(22,713,180	)
Net increase in share transactions		646,043			8,455,644			4,673,104			12,282,746
Net increase (decrease) in net assets		(1,041,961	)		3,743,217			(28,573,950	)		14,576,766
NET ASSETS:
Beginning of period		12,516,173			8,772,956			120,314,405			105,737,639
End of period	$	11,474,212		$	12,516,173		$	91,740,455		$	120,314,405
Undistributed net investment income, at end of period	$	-		$	-		$	271,721		$	1,825,095
Accumulated net investment loss, at end of period	$	(12,289	)	$	(5,768	)	$	-		$	-
Change in shares:
Subscriptions		-			2,744,502			988,440			1,450,019
Distributions reinvested		393,790			1,559,556			1,007,862			1,105,394
Redemptions		(271,739	)		(2,339,832	)		(1,617,185	)		(1,545,947	)
Net increase		122,051			1,964,226			379,117			1,009,466

See Accompanying Notes to Financial Statements.
122

NOTES TO FINANCIAL STATEMENTS

July 31, 2008

Note 1.  Organization

Columbia Funds Institutional Trust (the "Trust") is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. Information presented in these financial statements pertains to the following diversified funds (individually referred to as a "Fund", collectively referred to as the "Funds"):

CMG Enhanced S&P 500^® Index Fund
CMG Large Cap Growth Fund
CMG Large Cap Value Fund
CMG Mid Cap Growth Fund
CMG Mid Cap Value Fund
CMG Small Cap Growth Fund
CMG Small Cap Value Fund
CMG Small/Mid Cap Fund
CMG International Stock Fund

Shares in the Funds are available for purchase by institutional investors investing directly in the Funds, by institutional investors investing in the Funds as an advisory client of Columbia Management Advisors, LLC ("Columbia"), the Funds' investment advisor, and by institutional investors investing in the Funds as an advisory client of U.S. Trust, Bank of America Private Wealth Management. Please see the Funds' prospectuses for further details, including applicable investment minimums.

Investment objectives. CMG Enhanced S&P 500^® Index Fund seeks to outperform the total return, over the long term, of the Standard & Poor's 500^® Composite Stock Price Index that measures the investment returns of stocks of large U.S. companies, while maintaining overall portfolio characteristics similar to those of the benchmark. CMG Large Cap Growth Fund and CMG Large Cap Value Fund seek long-term growth by investing primarily in large capitalization equities. CMG Mid Cap Growth Fund and CMG Mid Cap Value Fund seek long-term growth by investing in middle capitalization equities. CMG Small Cap Growth Fund seeks to provide investors with long-term capital appreciation. CMG Small Cap Value Fund seeks long-term growth by investing primarily in small capitalization equities. CMG Small/Mid Cap Fund seeks long-term capital appreciation by investing in small capitalization and middle capitalization equities. CMG International Stock Fund seeks long-term capital appreciation.

Fund shares. The Trust may issue an unlimited number of shares of beneficial interest which are offered continuously at net asset value.

Note 2.  Significant accounting policies

The preparation of financial statements in accordance with accounting principles generally accepted in the UnitedStates of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements.

Security valuation. Equity securities, exchange traded funds and securities of certain investment companies are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ,

123

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets.

Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value.

Investments in other open-end investment companies are valued at net asset value.

Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded.

Options are valued at the last reported sale price, or in the absence of a sale, the mean between the last quoted bid and ask price.

Forward foreign currency exchange contracts are valued at the prevailing forward exchange rate of the underlying currencies.

Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Funds' shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Occassionally, events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Funds' net asset value. If events materially affecting the values of such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees. CMG International Stock Fund may use a systematic fair valuation model provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation.

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued. SFAS 157 is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is evaluating the impact the application of SFAS 157 will have on each Fund's financial statement disclosures.

Security transactions. Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133 ("SFAS 161"), was issued. SFAS 161 is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires additional discussion about the reporting entity's derivative instruments and hedging activities, by providing for qualitative disclosures about the objectives and strategies for using derivatives, quantitative data about the fair value of and gains and losses on derivative contracts, and details of credit-risk-related contingent features in their hedged positions. Management is evaluating the impact the application of SFAS 161 will have on the Funds' financial statement disclosures.

Futures contracts. The Funds may invest in futures for both hedging and non-hedging purposes, including, for example, to seek to enhance returns or as a substitute for a position in an underlying asset.

124

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

The use of futures contracts involves certain risks, which include: (1) imperfect correlation between the price movement of the instruments and the underlying securities, (2) inability to close out positions due to differing trading hours, or the temporary absence of a liquid market, for either the instruments or the underlying securities, or (3) an inaccurate prediction by Columbia of the future direction of interest rates. Any of these risks may involve amounts exceeding the variation margin recorded in the Funds' Statements of Assets and Liabilities at any given time.

Upon entering into a futures contract, a Fund pledges cash or securities with the broker in an amount sufficient to meet the initial margin requirement. Subsequent payments are made or received by a Fund equal to the daily change in the contract value and are recorded as variation margin receivable or payable and offset in unrealized gains or losses. A Fund recognizes a realized gain or loss when the contract is closed or expires.

Options. Each Fund may write call and put options on securities it owns or in which it may invest. Writing put options tends to increase a Fund's exposure to the underlying instrument. Writing call options tends to decrease a Fund's exposure to the underlying instrument. When a Fund writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked-to-market to reflect the current value of the option written. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against the amounts paid on the underlying security transaction to determine the realized gain or loss. Each Fund, as a writer of an option, has no control over whether the underlying security may be sold (call) or purchased (put) and as a result bears the market risk of an unfavorable change in the price of the security underlying the written option. There is the risk that the Funds may not be able to enter into a closing transaction because of an illiquid market. The Funds' custodian will set aside cash or liquid portfolio securities equal to the amount of the written options contract commitment in a segregated account.

Each Fund may also purchase put and call options. Purchasing call options tends to increase a Fund's exposure to the underlying instrument. Purchasing put options tends to decrease a Fund's exposure to the underlying instrument. The Funds may pay a premium, which is included in the Funds' Statements of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised are added to the amounts paid (call) or offset against the proceeds (put) on the underlying security transaction to determine the realized gain or loss. If a Fund enters into a closing transaction, the Fund will realize a gain or loss, depending on whether the proceeds from the closing transaction are greater or less than the cost of the option.

Forward foreign currency exchange contracts. Forward foreign currency exchange contracts are agreements to exchange one currency for another at a future date at a specified price. These contracts are used to minimize the exposure to foreign exchange rate fluctuations during the period between trade and settlement date of the contract. Certain Funds may utilize forward foreign currency exchange contracts in connection with the settlement of purchases and sales of securities. Certain Funds may also enter into these contracts to hedge certain other foreign currency denominated assets. Contracts to buy generally are used to acquire exposure to foreign currencies, while contracts to sell are generally used to hedge the Funds' investments against currency fluctuations. Forward foreign currency exchange contracts are valued daily at the current exchange rate of the underlying currency, resulting in unrealized gains (losses) which become realized at the time the forward foreign currency exchange contracts are closed or mature. Realized and unrealized gains (losses) arising from such transactions are included in net realized and unrealized gains (losses) on foreign currency transactions. The use of forward foreign currency exchange contracts does not eliminate fluctuations in the prices of the Funds' portfolio securities. While the maximum potential loss from such contracts is the aggregate face value in U.S. dollars at the time the contract was opened, exposure is typically limited to the change in value of the contract (in U.S. dollars) over the period it remains open. The Funds could also be exposed to risk that counterparties of the contracts may be unable to fulfill the terms of the contracts.

125

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Repurchase agreements. Each Fund may engage in repurchase agreement transactions with institutions that Columbia has determined are creditworthy. Each Fund, through its custodian, receives delivery of the underlying securities collateralizing a repurchase agreement. Columbia is responsible for determining that the collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on each Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Funds seek to assert their rights.

Foreign currency transactions. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.

For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments on the Statements of Operations.

Income recognition. Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date except for certain foreign securities which are recorded as soon after the ex-date as the Funds become aware of such, net of any non-reclaimable tax withholdings. Distributions received from real estate investment trusts (REITs) in excess of their income are recorded as a reduction of the cost of the related investments. If the Funds no longer own the applicable securities, any distributions received in excess of income are recorded as realized gains.

Expenses. General expenses of the Trust are allocated to the Funds and the other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund are charged to such Fund.

Federal income tax status. Each Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that each Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Distributions to shareholders. Distributions to shareholders are recorded on the ex-date. Dividends from net investment income, if any, are declared and distributed annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which may differ from GAAP.

Indemnification. In the normal course of business, each Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. A Fund's maximum exposure under these arrangements is unknown because this would involve future claims against a Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Funds expect the risk of loss due to these representations, warranties and indemnities to be minimal.

126

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Note 3.  Federal tax information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds' capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended July 31, 2008, permanent book and tax basis differences resulting primarily from differing treatments for Section 988 foreign currency transactions, net operating losses, distribution reclassification and passive foreign investment companies (PFIC) adjustments were identified and reclassified among the components of the Funds' net assets as follows:

	Undistributed/ (Overdistributed) or (Accumulated) Net Investment Income (Loss)			Accumulated Net Gain/Loss			Paid-In Capital
CMG Enhanced S&P 500® Index Fund	$	(24,436	)	$	24,436		$	-
CMG Large Cap Growth Fund		(17,231	)		17,231			-
CMG Large Cap Value Fund		(2,639	)		2,639			-
CMG Mid Cap Growth Fund		32,426			(32,426	)		-
CMG Mid Cap Value Fund		(6,848	)		6,848			-
CMG Small Cap Growth Fund		89,652			(89,652	)		-
CMG Small Cap Value Fund		103			(104	)		1
CMG Small/Mid Cap Fund		19,942			(19,942	)		-
CMG International Stock Fund		(440,181	)		440,180			1

Net investment income and net realized gains (losses), as disclosed on the Statements of Operations, and net assets were not affected by these reclassifications.

The tax character of distributions paid during the years ended July 31, 2008 and July 31, 2007 was as follows:

	July 31, 2008
	Ordinary Income*		Long-Term Capital Gains		Return of Capital
CMG Enhanced S&P 500® Index Fund	$	6,368,282	$	4,124,057	$	-
CMG Large Cap Growth Fund		2,631,485		1,633,720		-
CMG Large Cap Value Fund		1,706,031		3,143,177		-
CMG Mid Cap Growth Fund		1,279,107		3,162,485		-
CMG Mid Cap Value Fund		553,426		1,429,928		-
CMG Small Cap Growth Fund		2,282,199		3,997,173		159,987
CMG Small Cap Value Fund		711,327		3,281,512		-
CMG Small/Mid Cap Fund		479,786		1,332,231		71,809
CMG International Stock Fund		8,374,380		9,216,557		-

127

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

	July 31, 2007
	Ordinary Income*		Long-Term Capital Gains
CMG Enhanced S&P 500® Index Fund	$	3,598,247	$	5,218,092
CMG Large Cap Growth Fund		625,288		1,755,655
CMG Large Cap Value Fund		1,060,188		2,354,312
CMG Mid Cap Growth Fund		759,124		2,157,806
CMG Mid Cap Value Fund		750,522		2,052,321
CMG Small Cap Growth Fund		4,265,461		4,295,118
CMG Small Cap Value Fund		722,222		5,037,906
CMG Small/Mid Cap Fund		2,808,947		3,973,991
CMG International Stock Fund		8,584,045		14,358,677

*  For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of July 31, 2008, the components of distributable earnings on a tax basis were as follows:

	Undistributed Ordinary Income		Undistributed Long-term Capital Gains		Net Unrealized Appreciation (Depreciation)*
CMG Enhanced S&P 500® Index Fund	$	2,036,753	$	-	$	(4,674,875	)
CMG Large Cap Growth Fund		186,106		-		3,326,478
CMG Large Cap Value Fund		464,791		-		(215,882	)
CMG Mid Cap Growth Fund		-		862,211		3,250,116
CMG Mid Cap Value Fund		27,469		22,555		601,984
CMG Small Cap Growth Fund		-		-		5,988,713
CMG Small Cap Value Fund		64,481		2,233,416		2,354,475
CMG Small/Mid Cap Fund		-		-		1,720,268
CMG International Stock Fund		727,682		1,501,521		3,977,245

*  The differences between book-basis and tax-basis net unrealized appreciation/depreciation are primarily due to deferral of losses from wash sales and mark to market of passive foreign investment companies.

Unrealized appreciation and depreciation at July 31, 2008, based on cost of investments for federal income tax purposes, excluding any unrealized appreciation and depreciation from changes in the value of other assets and liabilities resulting from changes in exchange rates, were:

	Unrealized Appreciation		Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
CMG Enhanced S&P 500® Index Fund	$	18,635,848	$	(23,310,723	)	$	(4,674,875	)
CMG Large Cap Growth Fund		5,096,299		(1,769,821	)		3,326,478
CMG Large Cap Value Fund		4,004,237		(4,220,119	)		(215,882	)
CMG Mid Cap Growth Fund		4,553,920		(1,303,804	)		3,250,116
CMG Mid Cap Value Fund		2,396,988		(1,795,004	)		601,984
CMG Small Cap Growth Fund		8,087,064		(2,098,351	)		5,988,713
CMG Small Cap Value Fund		5,335,424		(2,980,949	)		2,354,475
CMG Small/Mid Cap Fund		2,286,270		(566,002	)		1,720,268
CMG International Stock Fund		13,282,054		(9,304,809	)		3,977,245

128

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

The following capital loss carryforwards, determined as of July 31, 2008, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

	Year of Expiration
	2016		Total
CMG Large Cap Value Fund	$	284,104	$	284,104

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of July 31, 2008, post-October currency and capital losses attributed to security transactions were deferred to August 1, 2008, as follows:

	Capital Losses		Currency Losses
CMG Enhanced S&P 500® Index Fund	$	13,510,670	$	-
CMG Large Cap Growth Fund		1,362,421		-
CMG Large Cap Value Fund		2,987,972		-
CMG Mid Cap Value Fund		183,430		-
CMG Small Cap Growth Fund		1,130,296		1,397
CMG Small/Mid Cap Fund		245,709		892

The Funds adopted Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109 ("FIN48") effective January 31, 2008. FIN 48 requires management to determine whether a tax position of the Funds is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN48 was applied to all existing tax positions upon initial adoption. Management has evaluated the known implications of FIN 48 on its computation of net assets for the Funds. As a result of this evaluation, management has concluded that FIN 48 did not have any effect on the Funds' financial statements and no cumulative effect adjustments were recorded. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Note 4.  Fees and compensation paid to affiliates

Investment advisory fee. Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory, administrative and other services to the Funds. In rendering investment advisory services to the Funds, Columbia may use the portfolio management and research resources of Columbia Management Pte. Ltd., an affiliate of Columbia. With the exception of CMG Small Cap Growth Fund, each Fund's investment advisory fee is a unified fee. Columbia, out of the unified fee it receives from the Funds, pays accounting fees, legal fees, transfer agent fees, custody fees, expenses of the Chief Compliance Officer, the commitment fee for the line of credit (see Note 7) and miscellaneous expenses of the Funds. The unified fee does not include brokerage fees, taxes, fees and expenses of the independent Trustees (including legal counsel fees), audit fees, interest expense associated with any

129

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

borrowings by the Funds or extraordinary expenses, if any. The unified fees are paid monthly to Columbia based on each Fund's average daily net assets at the following annual rates:

CMG Enhanced S&P 500® Index Fund	0.25	%
CMG Large Cap Growth Fund	0.50	%
CMG Large Cap Value Fund	0.50	%
CMG Mid Cap Growth Fund	0.70	%
CMG Mid Cap Value Fund	0.70	%
CMG Small Cap Value Fund	0.80	%
CMG Small/Mid Cap Fund	0.75	%
CMG International Stock Fund	0.75	%

Columbia receives a monthly investment advisory fee from CMG Small Cap Growth Fund at the annual rate of 0.75% of the Fund's average daily net assets.

Pricing and bookkeeping fees. The Funds have entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank & Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Funds. The Funds have also entered into an Accounting Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Funds.

The Funds have entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street.

The pricing and bookkeeping fees for each Fund are payable by Columbia. Prior to January 1, 2008, CMG Small Cap Growth Fund reimbursed Columbia for services related to the requirements of the Sarbanes-Oxley Act of 2002.

Transfer agent fee. Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Funds and has contracted with BostonFinancial Data Services ("BFDS") to serve as sub-transfer agent. The transfer agent fees for each Fund, with the exception of CMG Small Cap Growth Fund, are payable by Columbia under the investment advisory contracts.

The Transfer Agent is entitled to receive a fee, paid monthly, at the annual rate of $17.34 per open account plus reimbursement of certain sub-transfer agent fees (exclusive of BFDS fees), calculated based on assets held in omnibus accounts subject to certain limitations and intended to recover the cost of payments to other parties (including affiliates of BOA) for services to those accounts. Prior to November 1, 2007, the annual rate was $17.00 per open account. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Funds or Columbia.

The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due the Transfer Agent from shareholders of the Funds and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Funds.

Fee waivers and expense reimbursements. Columbia has contractually agreed to waive its management fee and to the extent necessary bear other expenses of each Fund, with the exception of CMG Small Cap Growth Fund, through March 1, 2009, so that the expenses incurred by the Funds will not exceed the following annual rates (exclusive of

130

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts), after giving effect to any balance credits from the Funds' custodian, based on each Fund's average daily net assets:

CMG Enhanced S&P 500® Index Fund	0.25	%
CMG Large Cap Growth Fund	0.50	%
CMG Large Cap Value Fund	0.50	%
CMG Mid Cap Growth Fund	0.70	%
CMG Mid Cap Value Fund	0.70	%
CMG Small Cap Value Fund	0.80	%
CMG Small/Mid Cap Fund	0.75	%
CMG International Stock Fund	0.75	%

There is no guarantee that these arrangements will continue after March 1, 2009.

Columbia and its affiliates have contractually agreed to waive fees and/or reimburse expenses of the CMG Small Cap Growth Fund until November 30, 2009, so that expenses (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts), after giving effect to any balance credits from the Fund's custodian, will not exceed 0.80% annually of the Fund's average daily net assets. There is no guarantee that this arrangement will continue after November 30, 2009.

Fees paid to officers and trustees. All officers of the Funds are employees of Columbia or its affiliates and, with the exception of the Funds' Chief Compliance Officer, receive no compensation from the Funds. The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. The expenses of the Chief Compliance Officer for each Fund, with the exception of CMG Small Cap Growth Fund, are payable by Columbia. CMG Small Cap Growth Fund, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer.

The Trust's eligible Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Funds' assets.

Note 5.  Custody credits

With the exception of CMG Small Cap Growth Fund, any custody credits are applied to offset fund expenses prior to determining the expenses Columbia is required to bear. CMG Small Cap Growth Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statements of Operations. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement.

131

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Note 6.  Portfolio information

For the year ended July 31, 2008, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were as follows:

	Purchases		Sales
CMG Enhanced S&P 500® Index Fund	$	103,501,067	$	129,771,466
CMG Large Cap Growth Fund		88,992,450		93,980,872
CMG Large Cap Value Fund		23,513,329		23,904,942
CMG Mid Cap Growth Fund		45,147,504		48,277,833
CMG Mid Cap Value Fund		9,274,613		9,049,219
CMG Small Cap Growth Fund		84,259,770		81,963,257
CMG Small Cap Value Fund		13,945,893		16,770,683
CMG Small/Mid Cap Fund		21,554,983		22,570,121
CMG International Stock Fund		67,143,174		77,082,024

Note 7.  Line of credit

The Funds and other affiliated funds participate in a $350,000,000 committed, unsecured revolving line of credit and a $150,000,000 uncommitted, unsecured line of credit, both provided by State Street. Borrowings are available for short-term liquidity or temporary or emergency purposes.

Interest on the committed line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is accrued and apportioned among the participating funds pro rata based on their relative net assets. Effective September 17, 2007, interest on the uncommitted line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.375%. Prior to September 17, 2007, interest on the uncommitted line of credit was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. State Street charges an annual operations agency fee of $40,000 for the committed line of credit and may charge an annual administration fee of $15,000 for the uncommitted line of credit. The commitment fee, the operations agency fee and the administration fee are accrued and apportioned among the participating funds pro rata based on their relative net assets. The commitment fee, the operations agency fee and administration fee are included in the unified fee for the Funds.

For the year ended July 31, 2008, the average daily loan balance outstanding on days where borrowing existed, and the weighted average interest rate of each Fund that borrowed under these arrangements were as follows:

	Average Borrowings		Weighted Average Interest Rates
CMG Enhanced S&P 500® Index Fund	$	17,000,000		2.44	%
CMG Large Cap Growth Fund		1,000,000		4.69
CMG Small Cap Growth Fund		1,000,000		5.19
CMG Small Cap Value Fund		1,714,280		4.51
CMG International Stock Fund		1,250,000		3.77

132

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Note 8.  Securities lending

CMG Enhanced S&P 500^® Index Fund, CMG Large Cap Growth Fund, CMG Large Cap Value Fund and CMG Mid Cap Value Fund may lend their securities to certain approved brokers, dealers and other financial institutions. Each loan is collateralized by cash, in an amount at least equal to the market value of the securities loaned plus accrued income from the investment of collateral. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The collateral received is invested and the income generated by the investment of the collateral, net of any fees remitted to State Street as the lending agent and borrower rebates, is paid to the Funds. Generally, in the event of borrower default, the Funds have the right to use the collateral to offset any losses incurred. In the event the Funds are delayed or prevented from exercising their right to dispose of the collateral, there may be a potential loss to the Funds. The Funds bear the risk of loss with respect to the investment of collateral.

Note 9.  Other

During the year ended July 31, 2008, Columbia voluntarily reimbursed CMG International Stock Fund $371 for a realized investment loss due to a trading error.

Note 10.  Shares of beneficial interest

As of July 31, 2008, shares of the Funds were beneficially owned by participant accounts over which BOA and/or any of its affiliates had either sole or joint investment discretion. The percentages of shares of beneficial interest outstanding held therein are as follows:

	% of Shares Outstanding Held
CMG Enhanced S&P 500® Index Fund		99.7
CMG Large Cap Growth Fund		100.0
CMG Large Cap Value Fund		100.0
CMG Mid Cap Growth Fund		99.8
CMG Mid Cap Value Fund		100.0
CMG Small Cap Growth Fund		92.1
CMG Small Cap Value Fund		98.5
CMG Small/Mid Cap Fund		97.4
CMG International Stock Fund		100.0

In addition, as of July 31, 2008, CMG Small Cap Growth Fund had one shareholder over which BOA and/or any of its affiliates did not have investment discretion that held 7.9% of the shares outstanding.

Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds.

Note 11.  Significant risks and contingencies

Sector focus risk. Certain funds may focus their investments in certain sectors, subjecting them to greater risk than a fund that is less focused.

133

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

Foreign securities risk. There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.

Legal proceedings. The Funds are not named as parties to any regulatory proceedings or litigation.

On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading.

Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions.

Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above is being distributed in accordance with a distribution plan that was developed by an independent distribution consultant and approved by the SEC on April 6, 2007. Distributions under the distribution plan began in late June 2007.

A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005.

In connection with the events described above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities.

On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law.

On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the United States District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of the class action claims pending against the Columbia Funds Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of

134

NOTES TO FINANCIAL STATEMENTS (continued)

July 31, 2008

1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA were not dismissed.

On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that certain conduct, including market timing, entitled Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit was removed to federal court in Massachusetts and transferred to the MDL.

On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL described above, including the CDSC Lawsuit. The settlement is subject to court approval.

In 2004, the Columbia Funds' adviser and distributor and certain affiliated entities and individuals were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. Certain Columbia Funds were named as nominal defendants. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purposes. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and entered final judgment in favor of the defendants. The plaintiffs appealed to the United States Court of Appeals for the First Circuit on December 30, 2005. A stipulation and settlement agreement dated January 19, 2007 was filed in the First Circuit on February 14, 2007, with a joint stipulation of dismissal and motion for remand to obtain district court approval of the settlement. That joint motion was granted and the appeal was dismissed. On March 6, 2007, the case was remanded to the District Court. The settlement, approved by the District Court on September 18, 2007, became effective October 19, 2007. Pursuant to the settlement, the funds' adviser and/or its affiliates made certain payments, including plaintiffs' attorneys' fees and costs of notice to class members.

135

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Institutional Trust and Shareholders of CMG Enhanced S&P 500^® Index Fund, CMG Large Cap Growth Fund, CMG Large Cap Value Fund, CMG Mid Cap Growth Fund, CMG Mid Cap Value Fund, CMG Small Cap Growth Fund, CMG Small Cap Value Fund, CMG Small/Mid Cap Fund and CMG International Stock Fund

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of CMG Enhanced S&P 500^® Index Fund, CMG Large Cap Growth Fund, CMG Large Cap Value Fund, CMG Mid Cap Growth Fund, CMG Mid Cap Value Fund, CMG Small Cap Growth Fund, CMG Small Cap Value Fund, CMG Small/Mid Cap Fund and CMG International Stock Fund (the "Funds") (each a series of Columbia Funds Institutional Trust) at July 31, 2008, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
September 19, 2008

136

Federal Income Tax Information (Unaudited)

CMG Enhanced S&P 500^® Index Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $51,581.

60.05% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 60.01%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Large Cap Growth Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $126,263.

18.26% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 18.40%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Large Cap Value Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $8,400.

73.45% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 60.64%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Mid Cap Growth Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $1,734,094.

19.06% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 20.16%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Mid Cap Value Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $187,084.

67.97% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

137

Federal Income Tax Information (Unaudited) (continued)

For non-corporate shareholders 68.80%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Small Cap Growth Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $1,085,816.

3.82% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 3.90%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Small Cap Value Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $2,541,081.

66.16% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 65.93%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG Small/Mid Cap Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $295,567.

12.22% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 14.30%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

CMG International Stock Fund

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $2,772,723.

Foreign taxes paid during the fiscal year ended July 31, 2008, amounting to $300,684 ($0.03 per share) are expected to be passed through to shareholders as 100% allowable foreign tax credits on Form 1099-DIV for the year ending December 31, 2008.

Gross income derived from sources within foreign countries amounted to $3,364,718 ($0.39 per share) for the fiscal year ended July 31, 2008.

For non-corporate shareholders 84.47%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

138

Fund Governance

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in Columbia Funds Institutional Trust, 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. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years, Number of Portfolios in Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Independent Trustees
John D. Collins (Born 1938) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Retired. Consultant, KPMG, LLP (accounting and tax firm) from July 1999 to June 2000; Partner, KPMG, LLP from March 1962 to June 1999. Oversees 77, Mrs. Fields Famous Brands LLC (consumer products); Suburban Propane Partners, L.P.; and Montpelier Re (underwriting firm)
Rodman L. Drake (Born 1943) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Co-Founder of Baringo Capital LLC (private equity) since 2002; President, Continuation Investments Group, Inc. from 1997 to 2001. Oversees 77, Jackson Hewitt Tax Service Inc. (tax preparation services); Crystal Capital River Inc. (real estate investment trust); Student Loan Corporation (student loan provider); Celgene Corporation (global biotechnology company); Apex Silver Mines Ltd. (mining); and Hyperion Brookfield Total Return Fund, Inc. and Hyperion Brookfield Strategic Mortgage Income Fund, Inc. (exchange-traded funds)
Douglas A. Hacker (Born 1955) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1996)	Independent business executive since May 2006; Executive Vice President—Strategy of United Airlines (airline) from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 77, Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing)
Janet Langford Kelly (Born 1957) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1996)	Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel—Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University, from September 2004 to June 2006; Director, UAL Corporation (airline) from February 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer 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. Oversees 77, None
Charles R. Nelson (Born 1942) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1981)	Professor of Economics, University of Washington, since January 1976; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington, since September 1993; Director, Institute for Economic Research, University of Washington from September 2001 to June 2003; 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. Oversees 77, None
John J. Neuhauser (Born 1943) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1985)	President, Saint Michael's College, since August 2007; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October 2005. Oversees 77, Liberty All-Star Equity Fund and Liberty All-Star Growth Fund, Inc. (closed-end funds)

139

Fund Governance (continued)

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office1	Principal Occupation(s) During Past Five Years, Number of Portfolios in Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Independent Trustees (continued)
Jonathan Piel (Born 1938) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Cable television producer and website designer; The Editor, Scientific American from 1984 to 1994; Vice President, Scientific American, Inc. from 1984 to 1994; Member, Advisory Board, Stone Age Institute, Bloomington, Indiana (research institute that explores the effect of technology on human evolution); Member, Board of Directors of the National Institute of Social Sciences, New York City; and Member, Board of Trustees of the William Alanson White Institute, New York City (institution for training psychoanalysts). Oversees 77, None
Patrick J. Simpson (Born 1944) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2000)	Partner, Perkins Coie LLP (law firm). Oversees 77, None
Thomas C. Theobald (Born 1937) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee and Chairman of the Board (since 1996)	Partner and Senior Advisor, Chicago Growth Partners (private equity investing) since September 2004; Managing Director, William Blair Capital Partners (private equity investing) from September 1994 to September 2004. Oversees 77, Anixter International (network support equipment distributor); Ventas, Inc. (real estate investment trust); Jones Lang LaSalle (real estate management services); Ambac Financial Group (financial guaranty insurance)
Anne-Lee Verville (Born 1945) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1998)	Retired since 1997 (formerly General Manager–Global Education Industry (from 1994 to 1997), President—Application Systems Division (from 1991 to 1994), Chief Financial Officer—US Marketing & Services (from 1988 to 1991), and Chief Information Officer (from 1987 to 1988), IBM Corporation (computer and technology)). Oversees 77, None
Interested Trustee
William E. Mayer (Born 1940) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee2 (since 1994)	Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business, University of Maryland from 1992 to 1997. Oversees 77, Lee Enterprises (print media), WR Hambrecht + Co. (financial service provider); BlackRock Kelso Capital Corporation (investment company)

  ¹  Messrs. Drake, Piel and Collins have served as directors/trustees of the Excelsior Funds since 1996, 1996 and 2005, respectively. The Excelsior Funds consisted of 27 portfolios managed by affiliates of Columbia Management Advisors, LLC. Effective December 12, 2007, the Board elected Messrs. Drake, Piel and Collins as Trustees of the Trust.

  ²  Mr. Mayer is an "interested person" (as defined in the Investment Company Act of 1940) by reason of his affiliation with WR Hambrecht + Co., a registered broker/dealer that may execute portfolio transactions for or engage in principal transactions with the Funds or other funds or accounts advised/managed by the Advisor or other Bank of America affiliates.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 1-800-426-3750.

140

Fund Governance (continued)

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years
Christopher L. Wilson (Born 1957) One Financial Center Boston, MA 02111 President (since 2004)	President—Columbia Funds, since October 2004; Managing Director—Columbia Management Advisors, LLC, since September 2005; Senior Vice President—Columbia Management Distributors, Inc., since January 2005; Director—Columbia Management Services, Inc., since January 2005; Director—Bank of America Global Liquidity Funds, plc and Banc of America Capital Management (Ireland), Limited, since May 2005; Director—FIM Funding, Inc., since January 2005; President and Chief Executive Officer—CDC IXIS AM Services, Inc. (investment management), from September 1998 through August 2004; and a senior officer or director of various other Bank of America affiliated entities, including other registered and unregistered funds.
James R. Bordewick, Jr. (Born 1959) One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)	Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.
J. Kevin Connaughton (Born 1964) One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2000)	Managing Director of Columbia Management Advisors, LLC since December 2004; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004—Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds.
Linda J. Wondrack (Born 1964) One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)	Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.
Michael G. Clarke (Born 1969) One Financial Center Boston, MA 02111 Treasurer (since 2008)	Director of Fund Administration of the Advisor since January 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.
Jeffrey R. Coleman (Born 1969) One Financial Center Boston, MA 02111 Deputy Treasurer (since 2006)	Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.
Joseph F. DiMaria (Born 1968) One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)	Director of Fund Administration of the Advisor since January 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October 2004.

141

Fund Governance (continued)

Officers (continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years
Julian Quero (Born 1967) One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)	Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.
Barry S. Vallan (Born 1969) One Financial Center Boston, MA 02111 Controller (since 2006)	Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April 2002 to October 2004.

142

This page is intentionally left blank.

This page is intentionally left blank.

This page is intentionally left blank.

COLUMBIA FUNDS INSTITUTIONAL TRUST

ONE FINANCIAL CENTER BOSTON, MA 02111-2621

- INVESTMENT ADVISOR -

COLUMBIA MANAGEMENT ADVISORS, LLC
100 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110-2624

- LEGAL COUNSEL -

ROPES & GRAY LLP
ONE INTERNATIONAL PLACE
BOSTON, MA 02110-2624

- TRANSFER AGENT -

COLUMBIA MANAGEMENT SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081

SHC-42/155059-0708 (09/08) 08/56634

A description of the policies and procedures that each fund uses to determine how to vote proxies and a copy of each fund's voting records are available (i) at www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the funds voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the funds voted proxies relating to portfolio securities is also available from the funds' website, www.columbiamanagement.com.

Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about a fund, contact your Columbia Management representative or go to www.columbiamanagement.com.

©2008 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621

CMG STRATEGIC EQUITY FUND
A PORTFOLIO OF COLUMBIA FUNDS INSTITUTIONAL TRUST

Annual Report
July 31, 2008

NOT FDIC INSURED

May Lose Value

No Bank Guarantee

NOT BANK ISSUED

Columbia Management Group, LLC ("Columbia Management") is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. The fund is distributed by Columbia Management Distributors, Inc., member of FINRA, SIPC, part of Columbia Management and an affiliate of Bank of America Corporation.

Columbia Management Advisors, LLC ("CMA") is an SEC-registered investment advisor and an indirect, wholly owned subsidiary of Bank of America Corporation and is part of Columbia Management.

The views expressed in this report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for the Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of the Fund. References to specific securities should not be construed as a recommendation or investment advice.

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
MANAGEMENT DISCUSSION OF FUND PERFORMANCE

Summary

•  For the 12-month period that ended July 31, 2008, CMG Strategic Equity Fund returned negative 4.03%. The fund outperformed its benchmark, the Russell 1000 Index which returned negative 10.62%¹. The average return of the fund's peer group, the Lipper Multi-Cap Core Funds Classification, was negative 10.73%.² In a period that was generally challenging for stocks, the fund held up better than its benchmarks and peer group because of good stock selection and, to a lesser extent, because of favorable sector weights.

•  Stock selection in the energy, health care and materials sectors benefited the fund's return. In the energy sector, Continental Resources and Wellstream Holdings were strong performers (0.3% and 0.6% of net assets, respectively). Among health care companies, Masimo, Express Scripts and Illumina contributed to results (0.6%, 0.3% and 0.4% of net assets, respectively). Monsanto was an important holding in the materials sector (0.6% of net assets).

•  Throughout the period, the financials sector was in significant turmoil; however, the fund's financials positions held up better than the index, primarily because of stock selection. Digital Realty Trust, State Street and Goldman Sachs Group were particularly noteworthy (0.5%, 0.6% and 1.1% of net assets, respectively). However, holdings in Ambac Financial Group, National Financial Partners and Freddie Mac faced a challenging environment and were eliminated from the portfolio.

•  Several other sectors contributed modestly to the fund's solid relative performance. In the consumer discretionary area, Nokian Renkaat of Finland, was helpful (0.5% of net assets). In consumer staples, Universal enhanced results (0.6% of net assets). Exelon in the utilities sector also helped performance (0.9% of net assets). The telecommunication services sector also contributed to the funds relative performance. Among the stocks that made a poor showing in these sectors were: Home Inns & Hotels in consumer discretionary; Bare Escentuals in consumer staples; NII Holdings in telecommunications; and Mirant in utilities. All of these poor performers were sold.

•  The fund's investments in the industrials sector produced results that were almost in line with the benchmark. Joy Global and Union Pacific were particularly strong (0.5% and 0.9% of net assets, respectively). Stocks that disappointed included Ultrapetrol Bahamas, AerCap Holdings, Rockwell Collins and Huron Consulting Group. All of these disappointing companies were sold.

¹ The Russell 1000 Index measures the performance of 1,000 of the largest US companies, based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

² Lipper Inc., a widely respected data provider in the industry, calculates an average total return (assuming reinvestment of distributions) for mutual funds with investment objectives similar to those of the fund. Lipper makes no adjustment for the effect of sales loads.

1

•  During the period, we have dealt with a U.S. economy that experienced declining consumer confidence, high energy prices, a weak housing sector and problems in the financial system. We believe that these issues will continue to weigh on the U.S. economy. However, we have begun to find selected opportunities in the consumer discretionary and financials sectors. We also continue to hold a favorable long term view of the energy sector. Finally, we plan to continue to evaluate compelling growth trends and valuations in overseas markets.

We appreciate your continued confidence in CMG Strategic Equity Fund.

Portfolio Management

Emil A. Gjester has managed or co-managed the fund since January 2004 and has been with the advisor or its predecessors or affiliate organizations since 1996.

Jonas Patrikson has co-managed the fund since February 2006 and has been with the advisor or its predecessors or affiliate organizations since 2004.

Michael T. Welter has co-managed the fund since July 2006 and has been with the advisor or its predecessors or affiliate organizations since 2006.

Mary-Ann Ward has co-managed the fund since April 2008 and has been with the advisor or its predecessors or affiliate organizations since 1997.

The fund's top ten holdings (as a percentage of net assets) as of July 31, 2008 were:

	(%)
Exxon Mobil		2.0
JPMorgan Chase		1.7
Hewlett-Packard		1.5
International Business Machines		1.3
Microsoft		1.3
Apple		1.3
ConocoPhillips		1.2
Cisco Systems		1.2
Google		1.1
Freeport-McMoRan Copper & Gold		1.1

Holdings are calculated as a percentage of net assets and are subject to change. Because the fund is actively managed, there is no guarantee the fund will continue to maintain the holdings breakdown listed. The fund's holdings and their weights within the portfolio may change as market conditions change.

Equity investments are affected by stock market fluctuations that occur in response to economic and business developments.

International investing may involve certain risks, including foreign taxation, currency fluctuations, risks associated with possible differences in financial standards and other monetary and political risks.

2

Performance data quoted represents past performance and current performance may be lower or higher. Past performance is no guarantee of future results. The investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Please visit www.columbiamanagement.com for daily and most recent month-end performance updates.

Average annual total return as of July 31, 2008 (%)

	Inception		1-year		5-year		Life
CMG Strategic Equity Fund		10/09/01		-4.03		10.47		10.71
Russell 1000 Index				-10.62		7.55		5.21

Average annual total return as of June 30, 2008 (%)

	Inception		1-year		5-year		Life
CMG Strategic Equity Fund		10/09/01		-4.10		11.77		11.27
Russell 1000 Index				-12.36		8.22		5.46

Index performance is from October 9, 2001.

Performance results reflect any fee waivers or reimbursements of fund expenses by the investment advisor and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions and do not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The fund's annual operating expense ratios, with and without contractual waivers, as stated in the fund's prospectus that is current as of the date of this report, are 0.40% and 0.62%, respectively, of average annual net assets. Differences in expense ratios disclosed elsewhere in this report may result from including fee waivers and expense reimbursements as well as different time periods used in calculating the ratios. The contractual waiver expires 11/30/08.

Growth of a $5,000,000 investment, October 9, 2001 to July 31, 2008

The chart above shows the growth in value of a hypothetical minimum initial $5,000,000 investment in the fund compared to the index during the stated time period and does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of fund shares.

The Russell 1000 Index measures the performance of 1,000 of the largest US companies, based on market capitalization. Indices are not investments, do not incur fees or expenses and are not professionally managed. It is not possible to invest directly in an index. Securities in the fund may not match those in an index.

3

UNDERSTANDING YOUR EXPENSES – CMG Strategic Equity Fund

As a fund shareholder, you incur ongoing costs, which generally include investment advisory fees and other fund expenses. The information on this page is intended to help you understand the ongoing costs of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.

Analyzing your fund's expenses

To illustrate these ongoing costs, we have provided an example and calculated the expenses paid by investors during the period. The information in the following table is based on an initial investment of $1,000, which is invested at the beginning of the period and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the "actual" column is calculated using the fund's actual operating expenses and total return for the period. The amount listed in the "hypothetical" column assumes that the return each year is 5% before expenses and is calculated based on the fund's actual operating expenses. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during this period.

Estimating your actual expenses

To estimate the expenses that you paid over the period, first you will need your account balance at the end of the period:

1.  Divide your ending account balance by $1,000. For example, if an account balance was $8,600 at the end of the period, the result would be 8.6.

2.  In the section of the table below titled "Expenses paid during the period," locate the amount in the column labeled "actual." Multiply this number by the result from step 1. Your answer is an estimate of the expenses you paid on your account during the period.

February 1, 2008 — July 31, 2008

Account value at the beginning of the period ($)			Account value at the end of the period ($)			Expenses paid during the period ($)			Fund's annualized expense ratio (%)
	Actual	Hypothetical		Actual	Hypothetical		Actual	Hypothetical		Actual
	1,000.00	1,000.00		960.42	1,022.87		1.95	2.01		0.40

Expenses paid during the period are equal to the annualized expense ratio of 0.40%, multiplied by the average account value over the period, then multiplied by the number of days in the fund's most recent fiscal half-year and divided by 366.

Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, account value at end of the period would have been reduced.

It is important to note that the expense amounts shown in the table are meant to highlight only ongoing costs of investing in the fund. Therefore, the hypothetical examples provided may not help you determine the relative total costs of owning shares of different funds.

Compare with other funds

Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing costs of investing in the fund with other funds. To do so, compare the 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund.

4

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
FINANCIAL HIGHLIGHTS

(For a Share Outstanding Throughout Each Period)

	Year Ended July 31,
	2008			2007			2006			2005			2004
Net asset value, beginning of period	$	3.01		$	3.13		$	15.22		$	13.80		$	12.06
Income from investment operations:
Net investment income (a)		0.03			0.04			0.14			0.19	(b)		0.12
Net realized and unrealized gain (loss) on investments and foreign currency		(0.04	)		0.46			0.82			2.09			1.87
Total from investment operations		(0.01	)		0.50			0.96			2.28			1.99
Less distributions to shareholders:
From net investment income		(0.05	)		(0.03	)		(0.57	)		(0.14	)		(0.09	)
From net realized gains		(1.01	)(c)		(0.59	)		(12.48	)(c)		(0.72	)		(0.16	)
Total distributions to shareholders		(1.06	)		(0.62	)		(13.05	)		(0.86	)		(0.25	)
Net asset value, end of period	$	1.94		$	3.01		$	3.13		$	15.22		$	13.80
Total return (d)(e)		(4.03	)%		17.08	%(f)		7.58	%(g)		16.77	%		16.58	%
Ratios to average net assets/Supplemental data:
Net expenses before interest expense (h)		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Interest expense		-	%(i)		-	%(i)		-			-			-
Net Expenses (h)		0.40	%		0.40	%		0.40	%		0.40	%		0.40	%
Waiver/Reimbursement		0.33	%		0.22	%		0.07	%		0.03	%		0.05	%
Net investment income (h)		1.20	%		1.31	%		1.09	%		1.31	%		0.88	%
Portfolio turnover rate		100	%		127	%		47	%		64	%		81	%
Net assets, end of period (000's)	$	49,466		$	46,106		$	120,541		$	755,860		$	618,714

(a)  Per share data was calculated using the average shares outstanding during the period.

(b)  Net investment income per share reflects a special dividend. The effect of this dividend amounted to $0.02 per share.

(c)  Capital gain distributions were declared after significant shareholder redemptions reduced the size of the Fund.

(d)  Total return at net asset value assuming all distributions reinvested.

(e)  Had the investment advisor and/or any of its affiliates not waived fees or reimbursed a portion of expenses, total return would have been reduced.

(f)  Includes a reimbursement by the investment advisor due to a compliance violation. This reimbursement increased total return and net asset value per share less than 0.01% and $0.01, respectively.

(g)  Includes a voluntary reimbursement by the investment advisor for a realized investment loss due to a trading error. This reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.

(h)  The benefits derived from custody credits had an impact of less than 0.01%.

(i)  Rounds to less than 0.01%.

See Accompanying Notes to Financial Statements.

5

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

July 31, 2008

	Shares		Value
Common Stocks (98.9%)
Consumer Discretionary (8.5%)
Auto Components (0.5%)
Nokian Renkaat Oyj		5,600	$	241,410
Household Durables (1.1%)
Cyrela Brazil Realty SA		13,670		198,989
Gafisa SA, ADR		4,560		156,134
Whirlpool Corp.		2,270		171,839
				526,962
Internet & Catalog Retail (0.4%)
priceline.com, Inc. (a)		1,540		177,023
Media (0.6%)
Comcast Corp., Class A		7,130		147,021
News Corp., Class A		11,640		164,473
				311,494
Multiline Retail (1.9%)
Kohl's Corp. (a)		5,580		233,858
Macy's, Inc.		9,900		186,219
Stockmann Oyj Abp, Class B		4,950		152,914
Target Corp.		7,980		360,935
				933,926
Specialty Retail (1.7%)
Best Buy Co., Inc.		5,630		223,624
GameStop Corp., Class A (a)		2,240		90,742
Home Depot, Inc.		9,200		219,236
Stage Stores, Inc.		10,750		159,315
Urban Outfitters, Inc. (a)		5,010		165,380
				858,297
Textiles, Apparel & Luxury Goods (2.3%)
Coach, Inc. (a)		3,620		92,346
Hanesbrands, Inc. (a)		8,540		183,098
Lululemon Athletica, Inc. (a)		3,790		84,138
LVMH Moet Hennessy Louis Vuitton SA		1,890		208,566
NIKE, Inc., Class B		6,860		402,545
Polo Ralph Lauren Corp.		3,120		184,610
				1,155,303
				4,204,415

See Accompanying Notes to Financial Statements.

6

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Consumer Staples (8.7%)
Beverages (2.4%)
Coca-Cola Co.		6,700	$	345,050
Diageo PLC, ADR		2,430		171,024
Fomento Economico Mexicano SAB de CV, ADR		5,620		257,733
PepsiCo, Inc.		6,320		420,659
				1,194,466
Food & Staples Retailing (2.2%)
Kroger Co.		5,370		151,864
Longs Drug Stores Corp.		4,740		221,595
United Natural Foods, Inc. (a)		9,680		186,049
Wal-Mart Stores, Inc.		5,990		351,134
Walgreen Co.		5,060		173,760
				1,084,402
Food Products (1.2%)
ConAgra Foods, Inc.		9,470		205,310
Nestle SA, Registered Shares		4,970		217,813
Unilever N.V., N.Y. Registered Shares		6,580		182,332
				605,455
Household Products (1.4%)
Colgate-Palmolive Co.		2,580		191,616
Procter & Gamble Co.		7,100		464,908
				656,524
Personal Products (0.7%)
Avon Products, Inc.		8,110		343,864
Tobacco (0.8%)
Altria Group, Inc.		4,480		91,168
Universal Corp.		6,100		314,882
				406,050
				4,290,761
Energy (15.0%)
Energy Equipment & Services (6.8%)
Cameron International Corp. (a)		8,410		401,662
Core Laboratories N.V.		2,100		272,181
Diamond Offshore Drilling, Inc.		1,430		170,599
National-Oilwell Varco, Inc. (a)		4,000		314,520
Noble Corp.		3,970		205,924
Oceaneering International, Inc. (a)		3,130		189,803
Schlumberger Ltd.		4,940		501,904

See Accompanying Notes to Financial Statements.

7

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Energy Equipment & Services (continued)
Tenaris SA, ADR		4,490	$	270,522
Transocean, Inc. (a)		2,958		402,377
Weatherford International Ltd. (a)		9,630		363,340
Wellstream Holdings PLC (a)		11,470		269,821
				3,362,653
Oil, Gas & Consumable Fuels (8.2%)
Apache Corp.		1,320		148,064
ConocoPhillips		7,400		603,988
Continental Resources, Inc. (a)		2,918		166,676
Devon Energy Corp.		3,520		334,013
Exxon Mobil Corp.		12,290		988,485
Hess Corp.		2,350		238,290
Marathon Oil Corp.		4,320		213,710
Occidental Petroleum Corp.		4,190		330,298
Peabody Energy Corp.		2,210		149,507
Petroleo Brasileiro SA, ADR		4,450		248,799
SandRidge Energy, Inc. (a)		1,976		96,607
Southwestern Energy Co. (a)		6,540		237,467
XTO Energy, Inc.		5,947		280,877
				4,036,781
				7,399,434
Financials (14.8%)
Capital Markets (3.5%)
Charles Schwab Corp.		9,290		212,648
Goldman Sachs Group, Inc.		2,860		526,354
Invesco Ltd.		9,110		212,172
Lazard Ltd., Class A		6,690		273,019
State Street Corp.		4,090		293,008
Waddell & Reed Financial, Inc., Class A		6,820		227,788
				1,744,989
Commercial Banks (3.2%)
Banco Bradesco SA, ADR		8,975		190,539
BB&T Corp.		10,450		292,809
Glacier Bancorp, Inc.		10,160		220,167
Prosperity Bancshares, Inc.		6,670		214,107
Raiffeisen International Bank Holding AG		850		106,036
Umpqua Holdings Corp.		8,070		109,591
Wells Fargo & Co.		14,840		449,207
				1,582,456
Consumer Finance (0.9%)
American Express Co.		11,750		436,160

See Accompanying Notes to Financial Statements.

8

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Diversified Financial Services (2.1%)
Citigroup, Inc.		10,283	$	192,189
JPMorgan Chase & Co.		20,576		836,003
				1,028,192
Insurance (3.8%)
ACE Ltd.		5,270		267,189
Allstate Corp.		6,210		287,026
Assurant, Inc.		3,600		216,432
Marsh & McLennan Companies, Inc.		9,440		266,680
Principal Financial Group, Inc.		5,160		219,352
Prudential Financial, Inc.		5,450		375,886
Unum Group		11,130		268,901
				1,901,466
Real Estate Investment Trusts (REITs) (1.3%)
Alexandria Real Estate Equities, Inc.		1,500		154,890
Digital Realty Trust, Inc.		5,750		246,733
SL Green Realty Corp.		2,570		214,184
				615,807
				7,309,070
Health Care (12.0%)
Biotechnology (2.9%)
Amgen, Inc. (a)		2,750		172,232
Biogen Idec, Inc. (a)		1,360		94,874
BioMarin Pharmaceuticals, Inc. (a)		3,060		99,603
Celgene Corp. (a)		3,935		297,053
Genentech, Inc. (a)		1,750		166,688
Gilead Sciences, Inc. (a)		8,580		463,148
Onyx Pharmaceuticals, Inc. (a)		3,220		130,410
				1,424,008
Health Care Equipment & Supplies (2.3%)
Baxter International, Inc.		6,860		470,664
Masimo Corp. (a)		7,443		281,122
Mindray Medical International Ltd., ADR		5,965		238,302
Varian Medical Systems, Inc. (a)		2,920		175,200
				1,165,288
Health Care Providers & Services (1.4%)
Express Scripts, Inc. (a)		2,300		162,242
Laboratory Corp. of America Holdings (a)		3,450		233,151
McKesson Corp.		3,310		185,327
Medco Health Solutions, Inc. (a)		2,010		99,656
				680,376

See Accompanying Notes to Financial Statements.

9

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Life Sciences Tools & Services (3.2%)
Charles River Laboratories International, Inc. (a)		2,720	$	180,771
Covance, Inc. (a)		3,150		289,170
Illumina, Inc. (a)		2,006		187,040
Pharmaceutical Product Development, Inc.		6,070		231,510
Qiagen N.V. (a)		10,830		203,496
Thermo Fisher Scientific, Inc. (a)		3,510		212,425
Waters Corp. (a)		3,880		263,607
				1,568,019
Pharmaceuticals (2.2%)
Abbott Laboratories		9,190		517,764
Johnson & Johnson		5,440		372,477
Novartis AG, ADR		3,640		216,034
				1,106,275
				5,943,966
Industrials (11.7%)
Aerospace & Defense (2.1%)
Boeing Co.		1,780		108,776
General Dynamics Corp.		2,940		262,072
Goodrich Corp.		3,890		191,155
Honeywell International, Inc.		3,510		178,448
United Technologies Corp.		4,830		309,023
				1,049,474
Air Freight & Logistics (0.3%)
UTI Worldwide, Inc.		7,770		141,336
Commercial Services & Supplies (1.2%)
Dun & Bradstreet Corp.		2,830		273,491
Republic Services, Inc.		5,870		190,775
Waste Connections, Inc. (a)		3,340		121,543
				585,809
Construction & Engineering (0.5%)
Quanta Services, Inc. (a)		7,920		244,570
Electrical Equipment (0.4%)
GrafTech International Ltd. (a)		4,830		113,263
Suntech Power Holdings Co., Ltd., ADR (a)		3,000		100,380
				213,643

See Accompanying Notes to Financial Statements.

10

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Industrial Conglomerates (2.2%)
General Electric Co.		18,530	$	524,214
McDermott International, Inc. (a)		6,340		302,228
Siemens AG, ADR		2,230		270,677
				1,097,119
Machinery (2.5%)
AGCO Corp. (a)		2,850		170,572
Deere & Co.		2,740		192,238
GEA Group AG		4,240		139,916
Joy Global, Inc.		3,690		266,492
Paccar, Inc.		4,695		197,472
Parker Hannifin Corp.		2,710		167,153
SPX Corp.		820		103,960
				1,237,803
Marine (0.8%)
A.P. Moller - Maersk A/S		13		151,025
D/S Norden		970		94,105
DryShips, Inc.		1,630		125,722
				370,852
Road & Rail (1.7%)
Con-way, Inc.		2,240		113,254
Landstar System, Inc.		2,960		149,717
Norfolk Southern Corp.		1,940		139,525
Union Pacific Corp.		5,580		460,015
				862,511
				5,803,117
Information Technology (16.7%)
Communications Equipment (2.9%)
Cisco Systems, Inc. (a)		26,530		583,395
Corning, Inc.		4,890		97,849
Nokia Corp., ADR		9,030		246,699
QUALCOMM, Inc.		6,150		340,341
Research In Motion Ltd. (a)		1,270		155,981
				1,424,265
Computers & Peripherals (4.4%)
Apple, Inc. (a)		3,960		629,442
EMC Corp. (a)		11,560		173,516
Hewlett-Packard Co.		16,070		719,936
International Business Machines Corp.		5,090		651,418
				2,174,312

See Accompanying Notes to Financial Statements.

11

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Electronic Equipment & Instruments (0.4%)
Mettler-Toledo International, Inc. (a)		1,990	$	213,945
Internet Software & Services (1.7%)
Equinix, Inc. (a)		1,520		123,667
Google, Inc., Class A (a)		1,170		554,288
Omniture, Inc. (a)		9,080		157,538
				835,493
IT Services (0.8%)
Paychex, Inc.		5,560		183,035
Redecard SA		10,800		201,341
				384,376
Semiconductors & Semiconductor Equipment (1.9%)
ASML Holding N.V., N.Y. Registered Shares		4,247		96,789
Intel Corp.		15,560		345,276
Intersil Corp., Class A		3,990		96,279
MEMC Electronic Materials, Inc. (a)		3,456		159,702
Texas Instruments, Inc.		10,670		260,134
				958,180
Software (4.6%)
Advent Software, Inc. (a)		3,540		154,132
Amdocs Ltd. (a)		5,730		174,249
Concur Technologies, Inc. (a)		1,320		54,410
McAfee, Inc. (a)		5,100		167,025
Microsoft Corp.		24,900		640,428
Nintendo Co., Ltd.		290		139,844
Oracle Corp. (a)		25,210		542,771
SAP AG, ADR		3,220		186,148
UBISOFT Entertainment (a)		1,100		108,723
VMware, Inc., Class A (a)		2,930		105,041
				2,272,771
				8,263,342
Materials (5.6%)
Chemicals (2.3%)
Agrium, Inc.		1,230		108,240
CF Industries Holdings, Inc.		880		143,845
Ecolab, Inc.		2,810		125,607
Monsanto Co.		2,530		301,348
Potash Corp. of Saskatchewan, Inc.		1,110		226,740
Syngenta AG, ADR		3,890		225,970
				1,131,750

See Accompanying Notes to Financial Statements.

12

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Shares		Value
Common Stocks (continued)
Metals & Mining (3.3%)
Alcoa, Inc.		5,590	$	188,662
ArcelorMittal, N.Y. Registered Shares		4,150		362,793
Cia Vale do Rio Doce, ADR		8,360		251,051
Freeport-McMoRan Copper & Gold, Inc.		5,620		543,735
Nucor Corp.		2,500		143,050
Thompson Creek Metals Co., Inc. (a)		10,040		171,983
				1,661,274
				2,793,024
Telecommunication Services (2.4%)
Diversified Telecommunication Services (0.9%)
AT&T, Inc.		9,144		281,727
Telekomunikasi Indonesia, ADR		5,880		193,922
				475,649
Wireless Telecommunication Services (1.5%)
American Tower Corp., Class A (a)		3,850		161,315
China Mobile Ltd., ADR		2,240		149,744
Millicom International Cellular SA		1,320		102,142
Mobile TeleSystems OJSC, ADR		2,200		157,080
Philippine Long Distance Telephone Co., ADR		2,730		155,200
				725,481
				1,201,130
Utilities (3.5%)
Electric Utilities (2.9%)
Entergy Corp.		3,040		325,037
Exelon Corp.		5,450		428,479
FirstEnergy Corp.		4,190		308,175
FPL Group, Inc.		5,580		360,077
				1,421,768
Multi-Utilities (0.6%)
Public Service Enterprise Group, Inc.		7,110		297,198
				1,718,966
Total Common Stocks (Cost of $42,265,821)				48,927,225

See Accompanying Notes to Financial Statements.

13

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
SCHEDULE OF INVESTMENTS

	Par		Value
Short-Term Obligation (1.0%)
Repurchase agreement with Fixed Income Clearing Corp, dated 07/31/08, due 08/01/08 at 1.990%, collateralized by a U.S. Treasury Obligation maturing 02/28/11, market value $477,000 (repurchase proceeds $465,026)	$	465,000	$	465,000
Total Short-Term Obligation (Cost of $465,000)				465,000
Total Investments (99.9%) (Cost of $42,730,821)(b)				49,392,225
Other Assets & Liabilities, Net (0.1%)				73,953
Net Assets (100.0%)			$	49,466,178

Notes to Schedule of Investments:

(a)  Non-income producing security.

(b)  Cost for federal income tax purposes is $42,859,113.

At July 31, 2008, the Fund held investments in the following sectors:

Sector (Unaudited)	% of Net Assets
Information Technology		16.7
Energy		15.0
Financials		14.8
Health Care		12.0
Industrials		11.7
Consumer Staples		8.7
Consumer Discretionary		8.5
Materials		5.6
Utilities		3.5
Telecommunication Services		2.4
		98.9
Short-Term Obligation		1.0
Other Assets & Liabilities, Net		0.1
		100.0

Acronym	Name
ADR	American Depositary Receipt

See Accompanying Notes to Financial Statements.

14

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
STATEMENT OF ASSETS AND LIABILITIES

July 31, 2008

ASSETS:
Investments, at identified cost	$	42,730,821
Investments, at value	$	49,392,225
Cash		16,873
Foreign currency (cost of $29,090)		29,117
Receivable for:
Investments sold		743,674
Interest		26
Dividends		55,742
Foreign tax reclaims		1,147
Expense reimbursement due from investment advisor		15,227
Trustees' deferred compensation plan		21,547
Other assets		438
Total Assets		50,276,016
LIABILITIES:
Payable for:
Investments purchased		700,943
Investment advisory fee		17,481
Transfer agent fee		15
Trustees' fees		887
Audit fee		33,101
Custody fee		6,442
Reports to shareholders		17,852
Chief compliance officer expenses		62
Trustees' deferred compensation plan		21,547
Other liabilities		11,508
Total Liabilities		809,838
NET ASSETS	$	49,466,178
NET ASSETS CONSIST OF:
Paid-in capital	$	45,319,475
Undistributed net investment income		240,877
Accumulated net realized loss		(2,755,725	)
Net unrealized appreciation on:
Investments		6,661,404
Foreign currency translations		147
NET ASSETS	$	49,466,178
Shares of capital stock outstanding		25,540,176
Net asset value, offering and redemption price per share	$	1.94

See Accompanying Notes to Financial Statements.

15

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
STATEMENT OF OPERATIONS

For the Year Ended July 31, 2008
NET INVESTMENT INCOME:
Income:
Dividends	$	754,842
Interest		27,467
Foreign withholding tax		(13,361	)
Total Investment Income		768,948
Expenses:
Investment advisory fee		192,623
Transfer agent fee		123
Trustees' fees		14,787
Pricing and bookkeeping fees		1,147
Custody fee		25,892
Audit fee		45,752
Reports to shareholders		32,460
Chief compliance officer expenses		536
Other expenses		38,717
Expenses before interest expense		352,037
Interest expense		142
Total Expenses		352,179
Fees and expenses waived or reimbursed by investment advisor		(159,367	)
Custody earnings credit		(47	)
Net Expenses		192,765
Net Investment Income		576,183
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY:
Net realized loss on:
Investments		(1,673,365	)
Foreign currency transactions		(4,454	)
Net realized loss		(1,677,819	)
Net change in unrealized appreciation (depreciation) on:
Investments		(1,114,555	)
Foreign currency translations		207
Net change in unrealized appreciation (depreciation)		(1,114,348	)
Net Loss		(2,792,167	)
NET DECREASE RESULTING FROM OPERATIONS	$	(2,215,984	)

See Accompanying Notes to Financial Statements.

16

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
STATEMENT OF CHANGES IN NET ASSETS

	Year Ended July 31,
Increase (Decrease) in Net Assets	2008			2007
Operations:
Net investment income	$	576,183		$	1,025,687
Net realized gain (loss) on investments and foreign currency transactions		(1,677,819	)		27,291,836
Net change in unrealized appreciation (depreciation) on investments and foreign currency translations		(1,114,348	)		(15,030,448	)
Net increase (decrease) resulting from operations		(2,215,984	)		13,287,075
Distributions to shareholders:
From net investment income		(680,722	)		(611,244	)
From net realized gain		(14,916,823	)		(14,482,350	)
Total distributions to shareholders		(15,597,545	)		(15,093,594	)
Share transactions:
Subscriptions		10,415,789			4,636,132
Distributions reinvested		14,891,743			14,633,613
Redemptions		(4,133,617	)		(91,898,054	)
Net increase (decrease) in share transactions		21,173,915			(72,628,309	)
Net increase (decrease) in net assets		3,360,386			(74,434,828	)
NET ASSETS:
Beginning of period		46,105,792			120,540,620
End of period	$	49,466,178		$	46,105,792
Undistributed net investment income	$	240,877		$	378,288
Changes in shares:
Subscriptions		4,862,073			1,499,855
Distributions reinvested		6,894,326			5,134,601
Redemptions		(1,511,583	)		(29,820,686	)
Net increase (decrease)		10,244,816			(23,186,230	)

See Accompanying Notes to Financial Statements.

17

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

Note 1.  Organization

CMG Strategic Equity Fund (the "Fund"), a series of Columbia Funds Institutional Trust (the "Trust"), is a diversified portfolio. The Trust is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.

Shares of the Fund are available for purchase by institutional investors investing directly in the Fund, by institutional investors investing in the Fund as an advisory client of Columbia Management Advisors, LLC ("Columbia"), the Fund's investment advisor, and by institutional investors investing in the Fund as an advisory client of U.S. Trust, Bank of America Private Wealth Management. Please see the Fund's prospectus for further details, including applicable investment minimums.

Investment objective. The Fund seeks to provide investors long-term growth of capital and total returns greater than those of the market over time.

Fund shares. The Fund may issue an unlimited number of shares of beneficial interest which are offered continuously at net asset value.

Note 2.  Significant accounting policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.

Security valuation. Equity securities are valued at the last sale price on the principal exchange on which they trade, except for securities traded on the NASDAQ, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the closing bid price on such exchanges or over-the-counter markets.

Short-term debt obligations maturing within 60 days are valued at amortized cost, which approximates market value.

Foreign securities are generally valued at the last sale price on the foreign exchange or market on which they trade. If any foreign share prices are not readily available as a result of limited share activity, the securities are valued at the last sale price of the local shares in the principal market in which such securities are normally traded.

Generally, trading in foreign securities is substantially completed each day at various times prior to the close of the New York Stock Exchange ("NYSE"). The values of such securities used in computing the net asset value of the Fund's shares are determined as of such times. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Occasionally, events affecting the values of such foreign securities and such exchange rates may occur between the times at which they are determined and the close of the customary trading session of the NYSE, which would not be reflected in the computation of the Fund's net asset value. If events materially affecting the values of

18

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

such foreign securities occur and it is determined that market quotations are not reliable, then these foreign securities will be valued at their fair value using procedures approved by the Board of Trustees.

Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board of Trustees. If a security is valued at fair value, such value is likely to be different from the last quoted market price for the security.

In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("SFAS 157"), was issued. SFAS 157 is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is evaluating the impact the application of SFAS 157 will have on the Fund's financial statement disclosures.

Security transactions. Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities—an amendment of FASB Statement No. 133 ("SFAS 161"), was issued. SFAS 161 is effective for fiscal years beginning after November 15, 2008. SFAS 161 requires additional discussion about the reporting entity's derivative instruments and hedging activities, by providing for qualitative disclosures about the objectives and strategies for using derivatives, quantitative data about the fair value of and gains and losses on derivative contracts, and details of credit-risk-related contingent features in their hedged positions. Management is evaluating the impact the application of SFAS 161 will have on the Fund's financial statement disclosures.

Repurchase agreements. The Fund may engage in repurchase agreement transactions with institutions that Columbia has determined are creditworthy. The Fund, through its custodian, receives delivery of the underlying securities collateralizing a repurchase agreement. Columbia is responsible for determining that the collateral is at least equal, at all times, to the value of the repurchase obligation including interest. A repurchase agreement transaction involves certain risks in the event of default or insolvency of the counterparty. These risks include possible delays in or restrictions on the Fund's ability to dispose of the underlying securities and a possible decline in the value of the underlying securities during the period while the Fund seeks to assert its rights.

Income recognition. Interest income is recorded on the accrual basis. Corporate actions and dividend income are recorded on the ex-date, except for certain foreign securities which are recorded as soon after the ex-date as the Fund becomes aware of such, net of any non-reclaimable tax withholdings. Distributions received from real estate investment trusts (REITs) in excess of their income are recorded as a reduction of the cost of the related investments and/or realized gains as applicable. If the Fund no longer owns the applicable securities, any distributions received in excess of income are recorded as realized gains.

Foreign currency transactions. The values of all assets and liabilities quoted in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.

For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such

19

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

fluctuations are included with the net realized and unrealized gains (losses) on investments on the Statement of Operations.

Expenses. General expenses of the Trust are allocated to the Fund and the other series of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund.

Federal income tax status. The Fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.

Distributions to shareholders. Distributions to shareholders are recorded on the ex-date. Dividends from net investment income, if any, are declared and distributed annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which may differ from GAAP.

Indemnification. In the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund's maximum exposure under these arrangements is unknown because this would involve future claims against the Fund. Also, under the Trust's organizational documents and by contract, the Trustees and officers of the Trust are indemnified against certain liabilities that may arise out of actions relating to their duties to the Trust. However, based on experience, the Fund expects the risk of loss due to these representations, warranties and indemnities to be minimal.

Note 3.  Federal tax information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations.

For the year ended July 31, 2008, permanent book and tax basis differences resulting primarily from differing treatments for Section 988 foreign currency gains (losses) and distributions were identified and reclassified among the components of the Fund's net assets as follows:

Undistributed Net Investment Income			Accumulated Net Realized Loss		Paid-In Capital
$	(32,872	)	$	32,872	$	-

Net investment income and net realized gains (losses), as disclosed on the Statement of Operations, and net assets were not affected by this reclassification.

20

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

The tax character of distributions paid during the years ended July 31, 2008 and July 31, 2007 was as follows:

	July 31, 2008		July 31, 2007
Distributions paid from:
Ordinary Income*	$	3,560,000	$	1,412,437
Long-Term Capital Gains		12,037,545		13,681,157

*For tax purposes short-term capital gain distributions, if any, are considered ordinary income distributions.

As of July 31, 2008, the components of distributable earnings on a tax basis were as follows:

Undistributed Ordinary Income		Undistributed Long-term Capital Gains		Net Unrealized Appreciation*
$	266,086	$	-	$	6,533,112

*The differences between book-basis and tax-basis net unrealized depreciation are primarily due to deferral of losses from wash sales.

Unrealized appreciation and depreciation at July 31, 2008, based on cost of investments for federal income tax purposes, were:

Unrealized appreciation	$	8,512,107
Unrealized depreciation		(1,978,995	)
Net unrealized appreciation	$	6,533,112

Under current tax rules, certain currency and capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of July 31, 2008, post-October capital losses of $2,627,433 attributed to security transactions were deferred to August 1, 2008.

The Fund adopted Financial Accounting Standards Board ("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes—an Interpretation of FASB Statement No. 109 ("FIN 48") effective January 31, 2008. FIN 48 requires management to determine whether a tax position of the Fund is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 was applied to all existing tax positions upon initial adoption. Management has evaluated the known implications of FIN 48 on its computation of net assets for the Fund. As a result of this evaluation, management has concluded that FIN 48 did not have any effect on the Fund's financial statements and no cumulative effect adjustments were recorded. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). The Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

21

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

Note 4.  Fees and compensation paid to affiliates

Investment advisory fee. Columbia, an indirect, wholly owned subsidiary of Bank of America Corporation ("BOA"), provides investment advisory, administrative and other services to the Fund. In rendering investment advisory services to the Fund, Columbia may use the portfolio management and research resources of Columbia Management Pte. Ltd., an affiliate of Columbia.Columbia receives a monthly investment advisory fee at the annual rate of 0.40% of the Fund's average daily net assets.

In addition to the annual Fund operating expenses, each shareholder enters into a written administrative services agreement with Columbia or its affiliate. Pursuant to this Agreement, Columbia or its affiliate will provide the shareholder specialized reports regarding the Fund, performance of the shareholder's investments and market conditions and economic indicators. For such services, each shareholder (and not the Fund) will pay an annual fee calculated as a percentage of the shareholder's net assets in the Fund. The annual fee is 0.20% on the first $25 million of the shareholder's net assets in the Fund, and no fee payable on net assets in excess of $25 million.

Pricing and bookkeeping fees. The Fund has entered into a Financial Reporting Services Agreement (the "Financial Reporting Services Agreement") with State Street Bank & Trust Company ("State Street") and Columbia pursuant to which State Street provides financial reporting services to the Fund. The Fund has also entered into an Accounting Services Agreement (collectively with the Financial Reporting Services Agreement, the "State Street Agreements") with State Street and Columbia pursuant to which State Street provides accounting services to the Fund.

The Fund has entered into a Pricing and Bookkeeping Oversight and Services Agreement (the "Services Agreement") with Columbia. Under the Services Agreement, Columbia provides services related to Fund expenses and the requirements of the Sarbanes-Oxley Act of 2002, and provides oversight of the accounting and financial reporting services provided by State Street.

The pricing and bookkeeping fees for the Fund are payable by Columbia. Prior to January 1, 2008, the Fund reimbursed Columbia for services related to the requirements of the Sarbanes-Oxley Act of 2002.

Transfer agent fee. Columbia Management Services, Inc. (the "Transfer Agent"), an affiliate of Columbia and an indirect, wholly owned subsidiary of BOA, provides shareholder services to the Fund and has contracted with Boston Financial Data Services ("BFDS") to serve as sub-transfer agent. The Transfer Agent is entitled to receive a fee for its services, paid monthly, at the annual rate of $17.34 per open account plus reimbursement of certain sub-transfer agent fees paid by the Transfer Agent (exclusive of BFDS fees), calculated based on assets held in omnibus accounts and intended to recover the cost of payments to other parties (including affiliates of BOA) for services to those accounts. Prior to November 1, 2007, the annual rate was $17.00 per open account. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund.

The Transfer Agent may also retain, as additional compensation for its services, fees for wire, telephone and redemption orders, IRA trustee agent fees and account transcript fees due to the Transfer Agent from shareholders of the Fund and credits (net of bank charges) earned with respect to balances in accounts the Transfer Agent maintains in connection with its services to the Fund.

Fee waivers and expense reimbursements. Columbia has contractually agreed to waive fees and/or reimburse the Fund through November 30, 2008, for certain expenses so that the expenses incurred by the Fund (exclusive of brokerage commissions, interest, taxes and extraordinary expenses, but inclusive of custodial charges relating to overdrafts, if

22

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

any), after giving effect to any balance credits from the Fund's custodian, will not exceed 0.40% of the Fund's average daily net assets. There is no guarantee that this arrangement will continue after November 30, 2008.

Fees paid to officers and trustees. All officers of the Fund are employees of Columbia or its affiliates and, with the exception of the Fund's Chief Compliance Officer, receive no compensation from the Fund. The Board of Trustees has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund, along with other affiliated funds, pays its pro-rata share of the expenses associated with the Chief Compliance Officer. The Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.

The Trust's eligible Trustees may participate in a deferred compensation plan which may be terminated at any time. Obligations of the plan will be paid solely out of the Fund's assets.

Note 5.  Custody credits

The Fund has an agreement with its custodian bank under which custody fees may be reduced by balance credits. These credits are recorded as a reduction of total expenses on the Statement of Operations. The Fund could have invested a portion of the assets utilized in connection with the expense offset arrangement in an income-producing asset if it had not entered into such an agreement.

Note 6.  Portfolio information

For the year ended July 31, 2008, the cost of purchases and proceeds from sales of securities, excluding short-term obligations, were $54,435,615 and $48,058,265, respectively.

Note 7.  Line of credit

The Fund and other affiliated funds participate in a $350,000,000 committed, unsecured revolving line of credit and a $150,000,000 uncommitted, unsecured line of credit, both provided by State Street. Borrowings are available for short-term liquidity or temporary or emergency purposes.

Interest on the committed line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. In addition, a commitment fee of 0.10% per annum is accrued and apportioned among the participating funds pro rata based on their relative net assets. Effective September 17, 2007, interest on the uncommitted line of credit is charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.375%. Prior to September 17, 2007, interest on the uncommitted line of credit was charged to each participating fund based on the fund's borrowings at a rate per annum equal to the Federal Funds Rate plus 0.50%. State Street charges an annual operations agency fee of $40,000 for the committed line of credit and may charge an annual administration fee of $15,000 for the uncommitted line of credit. The commitment fee, the operations agency fee and the administration fee are accrued and apportioned among the participating funds pro rata based on their relative net assets.

For the year ended July 31, 2008, the average daily loan balance outstanding on days where borrowing existed was $1,000,000 at a weighted average interest rate of 5.125%.

23

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

Note 8.  Shares of beneficial interest

As of July 31, 2008, 97.75% of the shares outstanding of the Fund were beneficially owned by one participant account over which BOA and/or any of its affiliates had either sole or joint investment discretion. Subscription and redemption activity of this account may have a significant effect on the Fund.

Note 9.  Significant risks and contingencies

Sector focus risk. The Fund may focus its investments in certain sectors, subjecting it to greater risk than a fund that is less focused.

Foreign securities risk. There are certain additional risks involved when investing in foreign securities. These risks may involve foreign currency exchange rate fluctuations, adverse political and economic developments and the possible prevention of currency exchange or other foreign governmental laws or restrictions. In addition, the liquidity of foreign securities may be more limited than that of domestic securities.

Legal proceedings. The Fund is not named as party to any regulatory proceedings or litigation.

On February 9, 2005, Columbia Management Advisors, Inc. (which has since merged into Banc of America Capital Management, LLC (now named Columbia Management Advisors, LLC)) ("Columbia") and Columbia Funds Distributor, Inc. (which has been renamed Columbia Management Distributors, Inc.) (the "Distributor") (collectively, the "Columbia Group") entered into an Assurance of Discontinuance with the New York Attorney General ("NYAG") (the "NYAG Settlement") and consented to the entry of a cease-and-desist order by the Securities and Exchange Commission ("SEC") (the "SEC Order") on matters relating to mutual fund trading.

Under the terms of the SEC Order, the Columbia Group agreed, among other things, to: pay $70 million in disgorgement and $70 million in civil money penalties; cease and desist from violations of the antifraud provisions and certain other provisions of the federal securities laws; maintain certain compliance and ethics oversight structures; retain an independent consultant to review the Columbia Group's applicable supervisory, compliance, control and other policies and procedures; and retain an independent distribution consultant (see below). The Columbia Funds have also voluntarily undertaken to implement certain governance measures designed to maintain the independence of their boards of trustees. The NYAG Settlement also, among other things, requires Columbia and its affiliates to reduce management fees for certain Columbia Funds (including the former Nations Funds) and other mutual funds collectively by $32 million per year for five years, for a projected total of $160 million in management fee reductions.

Pursuant to the procedures set forth in the SEC Order, the $140 million in settlement amounts described above is being distributed in accordance with a distribution plan that was developed by an independent distribution consultant and approved by the SEC on April 6, 2007. Distributions under the distribution plan began in late June 2007.

A copy of the SEC Order is available on the SEC website at http://www.sec.gov. A copy of the NYAG Settlement is available as part of the Bank of America Corporation Form 8-K filing on February 10, 2005.

In connection with the events described above, various parties have filed suit against certain funds, the Trustees of the Columbia Funds, FleetBoston Financial Corporation and its affiliated entities and/or Bank of America and its affiliated entities.

24

CMG STRATEGIC EQUITY FUND
A Portfolio of Columbia Funds Institutional Trust
NOTES TO FINANCIAL STATEMENTS

July 31, 2008

On February 20, 2004, the Judicial Panel on Multidistrict Litigation transferred these cases and cases against other mutual fund companies based on similar allegations to the United States District Court in Maryland for consolidated or coordinated pretrial proceedings (the "MDL"). Subsequently, additional related cases were transferred to the MDL. On September 29, 2004, the plaintiffs in the MDL filed amended and consolidated complaints. One of these amended complaints is a putative class action that includes claims under the federal securities laws and state common law, and that names Columbia, the Distributor, the Trustees of the Columbia Funds, Bank of America Corporation and others as defendants. Another of the amended complaints is a derivative action purportedly on behalf of the Columbia Funds that asserts claims under federal securities laws and state common law.

On February 25, 2005, Columbia and other defendants filed motions to dismiss the claims in the pending cases. On March 1, 2006, for reasons stated in the court's memoranda dated November 3, 2005, the United States District Court for the District of Maryland granted in part and denied in part the defendants' motions to dismiss. The court dismissed all of the class action claims pending against the Columbia Funds Trusts. As to Columbia and the Distributor, the claims under the Securities Act of 1933, the claims under Sections 34(b) and 36(a) of the Investment Company Act of 1940 ("ICA") and the state law claims were dismissed. The claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and claims under Section 36(b) of the ICA were not dismissed.

On March 21, 2005, a purported class action was filed in Massachusetts state court alleging that certain conduct, including market timing, entitled Class B shareholders in certain Columbia funds to an exemption from contingent deferred sales charges upon early redemption ("the CDSC Lawsuit"). The CDSC Lawsuit was removed to federal court in Massachusetts and transferred to the MDL.

On September 14, 2007, the plaintiffs and the Columbia defendants named in the MDL, including the Columbia Funds, entered into a stipulation of settlement with respect to all Columbia-related claims in the MDL described above, including the CDSC Lawsuit. The settlement is subject to court approval.

In 2004, the Columbia Funds' adviser and distributor and certain affiliated entities and individuals were named as defendants in certain purported shareholder class and derivative actions making claims, including claims under the Investment Company and the Investment Advisers Acts of 1940 and state law. Certain Columbia Funds were named as nominal defendants. The suits allege, inter alia, that the fees and expenses paid by the funds are excessive and that the advisers and their affiliates inappropriately used fund assets to distribute the funds and for other improper purposes. On March 2, 2005, the actions were consolidated in the Massachusetts federal court as In re Columbia Entities Litigation. The plaintiffs filed a consolidated amended complaint on June 9, 2005. On November 30, 2005, the judge dismissed all claims by plaintiffs and entered final judgment in favor of the defendants. The plaintiffs appealed to the United States Court of Appeals for the First Circuit on December 30, 2005. A stipulation and settlement agreement dated January 19, 2007 was filed in the First Circuit on February 14, 2007, with a joint stipulation of dismissal and motion for remand to obtain district court approval of the settlement. That joint motion was granted and the appeal was dismissed. On March 6, 2007, the case was remanded to the District Court. The settlement, approved by the District Court on September 18, 2007, became effective October 19, 2007. Pursuant to the settlement, the funds' adviser and/or its affiliates made certain payments, including plaintiffs' attorneys' fees and costs of notice to class members.

25

Report of Independent Registered Public Accounting Firm

To the Trustees of Columbia Funds Institutional Trust and the Shareholders of CMG Strategic Equity Fund

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of CMG Strategic Equity Fund (the "Fund") (a series of Columbia Funds Institutional Trust) at July 31, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP
Boston, Massachusetts
September 19, 2008

26

Federal Income Tax Information (Unaudited)

For the fiscal year ended July 31, 2008, the Fund designates long-term capital gains of $793,654.

27.88% of the ordinary income distributed by the Fund, for the year ended July 31, 2008, qualifies for the corporate dividends received deduction.

For non-corporate shareholders 31.88%, or the maximum amount allowable under the Jobs and Growth Tax Relief Reconciliation Act of 2003, of income earned by the Fund for the period August 1, 2007 to July 31, 2008 may represent qualified dividend income. Final information will be provided in your 2008 Form 1099-DIV.

27

Fund Governance

The Trustees serve terms of indefinite duration. The names, addresses and ages of the Trustees and officers of the Funds in Columbia Funds Institutional Trust, 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. Each officer listed below serves as an officer of each Fund in the Columbia Funds Complex.

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years, Number of Portfolios in Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Independent Trustees
John D. Collins (Born 1938) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Retired. Consultant, KPMG, LLP (accounting and tax firm) from July 1999 to June 2000; Partner, KPMG, LLP from March 1962 to June 1999. Oversees 77, Mrs. Fields Famous Brands LLC (consumer products); Suburban Propane Partners, L.P.; and Montpelier Re (underwriting firm)
Rodman L. Drake (Born 1943) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Co-Founder of Baringo Capital LLC (private equity) since 2002; President, Continuation Investments Group, Inc. from 1997 to 2001. Oversees 77, Jackson Hewitt Tax Service Inc. (tax preparation services); Crystal Capital River Inc. (real estate investment trust); Student Loan Corporation (student loan provider); Celgene Corporation (global biotechnology company); Apex Silver Mines Ltd. (mining); and Hyperion Brookfield Total Return Fund, Inc. and Hyperion Brookfield Strategic Mortgage Income Fund, Inc. (exchange-traded funds)
Douglas A. Hacker (Born 1955) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1996)	Independent business executive since May 2006; Executive Vice President—Strategy of United Airlines (airline) from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 77, Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing)
Janet Langford Kelly (Born 1957) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1996)	Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel—Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University, from September, 2004 to June 2006; Director, UAL Corporation (airline) from February, 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer 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. Oversees 77, None
Charles R. Nelson (Born 1942) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1981)	Professor of Economics, University of Washington, since January 1976; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington, since September 1993; Director, Institute for Economic Research, University of Washington from September 2001 to June 2003; 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. Oversees 77, None

28

Fund Governance (Continued)

Name, Address and Year of Birth, Position with Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years, Number of Portfolios in Columbia Funds Complex Overseen by Trustee, Other Directorships Held
Independent Trustees (Continued)
John J. Neuhauser (Born 1943) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1985)	President, Saint Michael's College, since August 2007; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October, 2005. Oversees 77, Liberty All-Star Equity Fund and Liberty All-Star Growth Fund, Inc. (closed-end funds)
Jonathan Piel (Born 1938) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee1 (since 2007)	Cable television producer and website designer; The Editor, Scientific American from 1984 to 1994; Vice President, Scientific American, Inc. from 1984 to 1994; Member, Advisory Board, Stone Age Institute, Bloomington, Indiana (research institute that explores the effect of technology on human evolution); Member, Board of Directors of the National Institute of Social Sciences, New York City; and Member, Board of Trustees of the William Alanson White Institute, New York City (institution for training psychoanalysts). Oversees 77, None
Patrick J. Simpson (Born 1944) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 2000)	Partner, Perkins Coie LLP (law firm). Oversees 77, None
Thomas C. Theobald (Born 1937) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee and Chairman of the Board (since 1996)	Partner and Senior Advisor, Chicago Growth Partners (private equity investing) since September 2004; Managing Director, William Blair Capital Partners (private equity investing) from September 1994 to September 2004. Oversees 77, Anixter International (network support equipment distributor); Ventas, Inc. (real estate investment trust); Jones Lang LaSalle (real estate management services); Ambac Financial Group (financial guaranty insurance)
Anne-Lee Verville (Born 1945) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee (since 1998)	Retired since 1997 (formerly General Manager—Global Education Industry (from 1994 to 1997), President—Application Systems Division (from 1991 to 1994), Chief Financial Officer—US Marketing & Services (from 1988 to 1991), and Chief Information Officer (from 1987 to 1988), IBM Corporation (computer and technology)). Oversees 77, None
Interested Trustee
William E. Mayer (Born 1940) c/o Columbia Management Advisors, LLC One Financial Center Boston, MA 02111 Trustee2 (since 1994)	Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business, University of Maryland from 1992 to 1997. Oversees 77, Lee Enterprises (print media), WR Hambrecht + Co. (financial service provider); BlackRock Kelso Capital Corporation (investment company)

  ¹  Messrs. Drake, Piel and Collins have served as directors/trustees of the Excelsior Funds since 1996, 1996 and 2005, respectively. The Excelsior Funds consisted of 27 portfolios managed by affiliates of Columbia Management Advisors, LLC. Effective December 12, 2007, the Board elected Messrs. Drake, Piel and Collins as Trustees of the Trust.

  ²  Mr. Mayer is an "interested person" (as defined in the Investment Company Act of 1940) by reason of his affiliation with WR Hambrecht + Co., a registered broker/dealer that may execute portfolio transactions for or engage in principal transactions with the Funds or other funds or accounts advised/managed by the Advisor or other Bank of America affiliates.

The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 1-800-426-3750.

29

Fund Governance (Continued)

Officers

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years
Christopher L. Wilson (Born 1957) One Financial Center Boston, MA 02111 President (since 2004)	President—Columbia Funds, since October 2004; Managing Director—Columbia Management Advisors, LLC, since September 2005; Senior Vice President—Columbia Management Distributors, Inc., since January 2005; Director—Columbia Management Services, Inc., since January 2005; Director—Bank of America Global Liquidity Funds, plc and Banc of America Capital Management (Ireland), Limited, since May 2005; Director—FIM Funding, Inc., since January 2005; President and Chief Executive Officer—CDC IXIS AM Services, Inc. (investment management), from September 1998 through August 2004; and a senior officer or director of various other Bank of America affiliated entities, including other registered and unregistered funds.
James R. Bordewick, Jr. (Born 1959) One Financial Center Boston, MA 02111 Senior Vice President, Secretary and Chief Legal Officer (since 2006)	Associate General Counsel, Bank of America since April 2005; Senior Vice President and Associate General Counsel, MFS Investment Management (investment management) prior to April 2005.
J. Kevin Connaughton (Born 1964) One Financial Center Boston, MA 02111 Senior Vice President and Chief Financial Officer (since 2000)	Managing Director of Columbia Management Advisors, LLC since December 2004; Treasurer—Columbia Funds, from October 2003 to May 2008; Treasurer—the Liberty Funds, Stein Roe Funds and Liberty All-Star Funds, December 2000—December 2006; Senior Vice President—Columbia Management Advisors, LLC, from April 2003 to December 2004; President—Columbia Funds, Liberty Funds and Stein Roe Funds, February 2004 to October 2004; Treasurer—Galaxy Funds, September 2002 to December 2005; Treasurer, December 2002 to December 2004, and President, February 2004 to December 2004— Columbia Management Multi-Strategy Hedge Fund, LLC; and a senior officer of various other Bank of America-affiliated entities, including other registered and unregistered funds.
Linda J. Wondrack (Born 1964) One Financial Center Boston, MA 02111 Senior Vice President and Chief Compliance Officer (since 2007)	Director (Columbia Management Group LLC and Investment Product Group Compliance), Bank of America since June 2005; Director of Corporate Compliance and Conflicts Officer, MFS Investment Management (investment management), August 2004 to May 2005; Managing Director, Deutsche Asset Management (investment management) prior to August 2004.
Michael G. Clarke (Born 1969) One Financial Center Boston, MA 02111 Treasurer (since 2008)	Director of Fund Administration of the Advisor since January, 2006; Managing Director of the Advisor September 2004 to December 2005; Vice President Fund Administration June 2002 to September 2004.
Jeffrey R. Coleman (Born 1969) One Financial Center Boston, MA 02111 Deputy Treasurer (since 2006)	Director of Fund Administration of the Advisor since January 2006; Fund Controller of the Advisor from October 2004 to January 2006; Vice President of CDC IXIS Asset Management Services, Inc. (investment management) from August 2000 to September 2004.
Joseph F. DiMaria (Born 1968) One Financial Center Boston, MA 02111 Chief Accounting Officer (since 2008)	Director of Fund Administration of the Advisor since January, 2006; Head of Tax/Compliance and Assistant Treasurer of the Advisor from November 2004 to December 2005; Director of Trustee Administration (Sarbanes-Oxley) of the Advisor from May 2003 to October, 2004.

30

Fund Governance (Continued)

Officers (Continued)

Name, Address and Year of Birth, Position with Columbia Funds, Year First Elected or Appointed to Office	Principal Occupation(s) During Past Five Years
Julian Quero (Born 1967) One Financial Center Boston, MA 02111 Deputy Treasurer (since 2008)	Senior Tax Manager of the Advisor since August 2006; Senior Compliance Manager of the Advisor from April 2002 to August 2006.
Barry S. Vallan (Born 1969) One Financial Center Boston, MA 02111 Controller (since 2006)	Vice President—Fund Treasury of the Advisor since October 2004; Vice President—Trustee Reporting of the Advisor from April, 2002 to October 2004.

31

This page is intentionally left blank.

This page is intentionally left blank.

COLUMBIA FUNDS INSTITUTIONAL TRUST

ONE FINANCIAL CENTER, BOSTON, MASSACHUSETTS 02111-2621

- INVESTMENT ADVISOR -

COLUMBIA MANAGEMENT ADVISORS, LLC
100 FEDERAL STREET
BOSTON, MASSACHUSETTS 02110-2624

- LEGAL COUNSEL -

ROPES & GRAY LLP
ONE INTERNATIONAL PLACE
BOSTON, MASSACHUSETTS 02110-2624

- TRANSFER AGENT -

COLUMBIA MANAGEMENT SERVICES, INC.
P.O. BOX 8081
BOSTON, MASSACHUSETTS 02266-8081

SHC-42/154963-0708 (09/08) 08/57076

A description of the policies and procedures that the fund uses to determine how to vote proxies to its portfolio securities and a copy of the fund's voting records is available (i) on the fund's website, www.columbiamanagement.com; (ii) on the Securities and Exchange Commission's website at www.sec.gov, and (iii) without charge, upon request, by calling 1-800-368-0346. Information regarding how the fund voted proxies relating to portfolio securities during the 12-month period ended June 30 is available from the SEC's website. Information regarding how the fund voted proxies relating to portfolio securities is also available from the fund's website, www.columbiamanagement.com.

The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The fund's Form N-Q is available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the fund, contact your Columbia Management representative or go to www.columbiamanagement.com.

© 2008 Columbia Management Distributors, Inc.
One Financial Center, Boston, MA 02111-2621

Item 2. Code of Ethics.

(a)The registrant has, as of the end of the period covered by this report, adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

(b)During the period covered by this report, there were not any amendments to a provision of the code of ethics adopted in 2(a) above.

(c)During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics described in 2(a) above that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

Item 3. Audit Committee Financial Expert.

The registrant’s Board of Trustees has determined that Douglas A. Hacker, John D. Collins and Anne-Lee Verville, each of whom are members of the registrant’s Board of Trustees and Audit Committee, each qualify as an audit committee financial expert.  Mr. Hacker, Mr. Collins and Ms. Verville are each independent trustees, as defined in paragraph (a)(2) of this item’s instructions.

Item 4. Principal Accountant Fees and Services.

Fee information below is disclosed for the fourteen series of the registrant whose report to stockholders is included in this annual filing.

(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2008 and July 31, 2007 are approximately as follows:

2008		2007
$	457,300	$	435,300

Audit Fees include amounts related to the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.

(b) Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended July 31, 2008 and July 31, 2007 are approximately as follows:

2008		2007
$	61,600	$	57,400

Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported in Audit Fees above.  In both fiscal years 2008 and 2007, Audit-Related Fees consist of agreed-upon procedures performed for semi-annual shareholder reports.

During the fiscal years ended July 31, 2008 and July 31, 2007, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.

(c) Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended July 31, 2008 and July 31, 2007 are approximately as follows:

2008		2007
$	85,600	$	80,800

Tax Fees include amounts for the review of annual tax returns, the review of required shareholder distribution calculations and typically include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.  Fiscal years 2008 and 2007 include Tax Fees for assistance with foreign tax filings.

During the fiscal years ended July 31, 2008 and July 31, 2007, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.

(d) All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended July 31, 2008 and July 31, 2007 are approximately as follows:

2008		2007
$	0	$	0

All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.

Aggregate All Other Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended July 31, 2008 and July 31, 2007 are approximately as follows:

2008		2007
$	1,460,800	$	849,100

In both fiscal years 2008 and 2007, All Other Fees consist of fees billed for internal control examinations of the registrant’s transfer agent and investment advisor.

(e)(1) Audit Committee Pre-Approval Policies and Procedures

The registrant’s Audit Committee is required to pre-approve the engagement of the registrant’s independent accountants to provide audit and non-audit services to the registrant and non-audit services to its investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or any entity controlling, controlled by or under common control with such investment adviser that provides ongoing services to the registrant (“Adviser Affiliates”), if the engagement relates directly to the operations and financial reporting of the registrant.

The Audit Committee has adopted a Policy for Engagement of Independent Accountants for Audit and Non-Audit Services (“Policy”). The Policy sets forth the understanding of the Audit Committee regarding the engagement of the registrant’s independent accountants to provide (i) audit and permissible audit-related, tax and other services to the registrant (collectively “Fund Services”); (ii) non-audit services to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Adviser Affiliates, if the engagement relates directly to the operations or financial reporting of a Fund (collectively “Fund-related Adviser Services”); and (iii) certain other audit and non-audit services to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Adviser Affiliates. Unless a type of service receives general pre-approval under the Policy, it requires specific pre-approval by the Audit Committee if it is to be provided by the independent accountants.  Pre-approval of non-audit services to the registrant, the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio

management and is subcontracted with or overseen by another investment adviser) and Adviser Affiliates may be waived provided that the “de minimis” requirements set forth under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are met.

Under the Policy, the Audit Committee may delegate pre-approval authority to any pre-designated member or members who are Independent Trustees/Directors.  The member(s) to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next regular meeting. The Audit Committee’s responsibilities with respect to the pre-approval of services performed by the independent accountants may not be delegated to management.

The Policy requires the Fund Treasurer and/or Director of Board Administration to submit to the Audit Committee, on an annual basis, a schedule of the types of services that are subject to general pre-approval. The schedule(s) provide a description of each type of service that is subject to general pre-approval and, where possible, will provide estimated fee caps for each instance of providing each service. The Audit Committees will review and approve the types of services and review the projected fees for the next fiscal year and may add to, or subtract from, the list of general pre-approved services from time to time based on subsequent determinations.  That approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent accountants will be permitted to perform.

The Fund Treasurer and/or Director of Board Administration shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services initiated since the last such report was rendered, including a general description of the services, actual billed and projected fees, and the means by which such Fund Services or Fund-related Adviser Services were pre-approved by the Audit Committee.

*****

(e)(2) The percentage of services described in paragraphs (b) through (d) of this Item approved pursuant to the “de minimis” exception under paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during both fiscal years ended July 31, 2008 and July 31, 2007 was zero.

(f) Not applicable.

(g) The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal years ended July 31, 2008 and July 31, 2007 are approximately as follows:

2008		2007
$	1,608,000	$	987,300

(h) The registrant’s Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments

(a)The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.

(b)Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have not been any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, since those procedures were last disclosed in response to requirements of Item 407(c)(2)(iv) of Regulation S-K (as required by Item 22(b)(15) of Schedule 14A) or this Item.

Item 11. Controls and Procedures.

(a)The registrant’s principal executive officer and principal financial officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

(b)There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.

(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

(a)(3) Not applicable.

(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(registrant)		Columbia Funds Institutional Trust
By (Signature and Title)			/s/ Christopher L. Wilson
		Christopher L. Wilson, President
Date	September 22, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)			/s/ Christopher L. Wilson
			Christopher L. Wilson, President
Date		September 22, 2008
By (Signature and Title)		/s/ J. Kevin Connaughton
		J. Kevin Connaughton, Chief Financial Officer
Date	September 22, 2008