Quarterly performance
Class A shares of Columbia Mid Cap Value Fund returned 11.64% (excluding salescharge) for the first quarter, outperforming the Russell MidCap Value Index benchmark,
which returned 11.41% for the period. For up-to-date performance information, pleasecheck online at columbiamanagement.com.
Market overviewFinancial markets roared out of the gate in 2012, posting the best January returns since
1997 and climbing higher in February and March. Investor enthusiasm for a potential
European Union pact to create a permanent bailout fund for the 17-nation eurozone,positive employment and manufacturing data in the United States, along with the
corporate earnings season, all combined shop to move stock higher in the first quarter.
Throughout the quarter, positive economic data points seemed to indicate that therecovery in the U.S. economy was gaining steam. In February, the Dow Jones IndustrialIndex broke through the 13,000 mark to hit a nearly four-year high and, in March, the S&P
500 Index closed out its best quarter since 1998.Contributors and detractors
Strong stock selection in information technology, utilities and financials was offset byrevenue growth and increased profitability across its major markets including animation
egative selection in consumer staples, health care, energy and materials. In addition, thecontributed significantly to the sector's performance on a strong quarter, with diversified
portfolio's cash position detracted from results in a strong-performing quarter, as did the
portfolio's underweight to information technology and overweight to energy.
On the positive side, information technology contributed most to stock selection, but was
impacted somewhat from the sector's underweight. Software company Autodesk