Fund performanceExcluding fees, the Columbia Large Cap Enhanced Core Fund, Class A returned 13.39%,
outperforming its benchmark, the S&P 500 Index, which returned 12.59% for the quarter.
For monthly performance information, please check online at columbiamanagement.com.Market overviewDuring the quarter, the U.S. economy generated enough solid economic data to raise
consumer expectations and restore investor confidence. First quarter 2012 growthforecasts are between 1% and 2%, buoyed by solid manufacturingactivity, robust jobgrowth and mobile database a whisper of better news for the housing market. Even though growth remains
modest, it continues to broaden across key sectors. Healthy job creation was the driving force of economic growth over the first quarter of
2012, with an estimated 635,000 new jobs added.
This pace is generally considered
strong enough to bring down the unemployment rate, which fell to 8.2% during theperiod.
> Improved labor prospects clearly figured into a boost in consumer spending, eventhough rising gas prices took a bite out of personal income.
> Consumer confidence rose along with higher expectations for business conditions over
the long term. Home prices hit new lows in January, but the rate of decline appears to be easing.
New and existing home sales were up sharply over a year ago with inventories
trending down. Although the housing market has not yet turned the corner, it no longerappears to be a drag on economic growth.
Against this generally favorable backdrop, U.S. equity markets delivered their strongestirst-quarter gains in more than 10 years. The S&P 500 Index gained 12.59% with
dividends reinvested. Financials, technology and consumer discretionary stoc