Supplement dated June 20, 2013
to the Prospectus of the following fund:
Fund
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Prospectus
Dated
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Columbia
Funds Series Trust I
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Columbia
Energy and Natural Resources Fund
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1/1/2013
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Effective on or about August 5,
2013 (the "Effective Date"), the Fund’s name will change to
Columbia Global Energy and Natural Resources Fund
. Accordingly, effective on such date, all references in the prospectus to
Columbia Energy and Natural Resources Fund
are deleted and replaced with
Columbia Global Energy and Natural Resources Fund
.
As of the Effective Date, the section of the Fund’s
prospectus entitled “
Principal Investment Strategies
” is deleted in its entirety and replaced with the following disclosure
:
Under normal circumstances, the Fund invests at least 80% of
its net assets (including the amount of borrowings for investment purposes) in equity securities (including, but not limited to, common stocks, preferred stocks and securities convertible into common or preferred stocks) of U.S. and foreign
companies engaged in the energy and natural resources industries. These companies include those engaged in the discovery, development, production or distribution of energy or natural resources and companies that develop technologies for, and furnish
energy and natural resource supplies and services to, these companies. The Fund may invest in companies that have market capitalizations of any size.
The Fund typically invests at least 50% of its assets in crude
oil, petroleum and natural gas companies. The Fund also may invest up to 35% of its assets in precious metals, such as gold bullion, and companies engaged in the production of precious metals.
Under normal circumstances, the Fund generally invests at
least 40% of its net assets in companies that maintain their principal place of business or conduct their principal business activities outside the U.S., companies that have their securities traded on non-U.S. exchanges or companies that have been
formed under the laws of non-U.S. countries. The Fund considers a company to conduct its principal business activities outside the U.S. if it derives at least 50% of its revenue or profits from business outside the U.S. or has at least 50% of its
sales or assets outside the U.S. From time to time, the Fund may be below this 40% level and, in such circumstances, the Fund will endeavor to invest its assets to bring the Fund’s net assets above this 40% level while giving due regard to the
investment manager’s view of market and other conditions and available investment opportunities. The Fund may count the gross notional value of its derivative transactions and foreign currencies towards the above 40% policy.
The Fund is non-diversified, which means that it can invest a
greater percentage of its assets in the securities of fewer issuers than can a diversified fund.
The Fund may invest in derivatives, including options, forward
foreign currency contracts and other derivative instruments. The Fund may invest in derivatives 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.
In addition, under normal circumstances, the Fund
uses forward foreign currency contracts in seeking to enhance returns based on fluctuations in the values of various foreign currencies relative to the U.S. dollar (the Currency Overlay Strategy). The Fund gains economic exposure to foreign
currencies, through its investment in forward foreign currency contracts, comparable to the exposure that it would have had if it had bought or sold the foreign currencies directly.
The Currency Overlay Strategy uses a quantitative, proprietary
model that applies various fundamental and technical factors, including based on current and historical data, to rank the anticipated value of several developed countries’ currencies relative to the U.S. dollar. The Fund typically enters into
long forward foreign currency contracts for currencies that rank higher in the model, and it will experience profits (losses) to the extent the value of the currency appreciates (depreciates) relative to the U.S. dollar; and conversely, the Fund
typically enters into short forward foreign currency contracts (generally approximating the gross notional value of the long forward foreign currency contracts) for currencies that rank lower in the model, and it will experience profits (losses) to
the extent the value of the currency depreciates (appreciates) relative to the U.S. dollar.
The Fund may invest in securities that the investment manager
believes are undervalued, represent growth opportunities, or both.
The investment manager combines fundamental and quantitative
analysis with risk management in identifying investment opportunities and constructing the Fund’s portfolio.
In selecting investments, Columbia Management Investment
Advisers, LLC (the Investment Manager) considers, among other factors:
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various measures of
valuation, including price-to-cash flow, price-to-earnings, price-to-sales, price-to-book value and discounted cash flow. The Investment Manager believes that companies with lower valuations are generally more likely to provide opportunities for
capital appreciation;
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potential indicators of
stock price appreciation, such as anticipated earnings growth, company restructuring, changes in management, business model changes, new product opportunities, or anticipated improvements in macroeconomic factors;
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