Fixed Income Strategies

Overview

Our expertise in taxable and tax-exempt fixed income is the foundation upon which we build customized solutions for clients.

• $76.8 billion under management as of December 31, 2009^*

• Entrepreneurial teams – 98 portfolio managers, analysts

and traders – with access to a variety of tools

• Sector-based research and trading specialists in U.S. credit-, mortgage-

and asset-backed, high yield, international and municipal debt

• Broad range of expertise across duration and asset class spectrum

Philosophy

We believe

• Fixed-income markets reliably exhibit persistent inefficiencies.

- By applying our extensive experience and independent research, we can

add alpha through security selection and sector rotation and, to a lesser extent,

duration and yield-curve positioning.

• Multiple, independent perspectives lead to better investment decisions.

- Each investment team integrates portfolio management,

research and trading, where all three roles contribute to and are compensated on

portfolio performance.

• Fixed-income investing should be appropriately risk-controlled.

-We diversify our portfolios and seek to add incremental value on a

consistent basis, commensurate with the asset class.

Process

While each fixed-income team has its own specific investment process, each process is straightforward, repeatable and rigorously executed.

Approach

Solutions

• Strategies for every major fixed-income benchmark and the ability to customize based on client need

• Portfolios tailored to meet specific return objectives, projected liability payments or income objectives

• Strict guidelines for quality, maturity and sector exposures

Client Need

Columbia Management Product Solution

Potential Benefit

Short Duration Strategies

• Stable Value

• Short Duration

• Protection against rising interest rates

• Competitive yields in the context of short term,
high quality investments

• Portfolios and benchmarks customized to meet
client-specfic objectives and guidelines.

Core Fixed-Income Strategies

• Core Fixed

- Intermediate Government/Credit

- Aggregate

- Government/Credit

• Core Fixed Sector Strategies

- Government

- Corporate

- Securitized (MBS/ABS/CMBS)

• Bottom-up approach to assess risk and identify
opportunities income universe

• High quality portfolios diversified across
sectors and the yield curve or focused in a defined
sector

• Portfolios and benchmarks customized to meet
client-specific objectives and guidelines

Liability Driven Strategies

• Long Government/Credit

• Long Credit

• Custom LD1 Benchmark & Portfolio Strategy

• Framework for quantifying and managing
volatility of funded status

• Extension strategies to improve asset/liability
matching

• Custom liability benchmark

• Bottom-up, relative value approach to fixed
income management

Insurance Strategies

• Total Return

• Yield-oriented

• Tax-exempt or Crossover

• Sector specific

• Leverages Core Fixed Income capabilities

• Reporting capabilities that seek to meet the
unique needs of insurance clients

• Comprehensive understanding of statutory
and regulatory environment

Core Plus Fixed Income Strategies

• Core Plus

• Incorporates allocations to high yield and/or
international fixed income to improve
diversification

• Potential for higher total return over time
and moderately increased risk

High Yield Strategies

• High Yield

- Conservative

- Broad Market

• High level of current income

• May focus on quality sectors or opportunities
across high yield markets

International/ Global Strategies

• International

• Emerging Debt

• Global

- Multi-Strategy Income

• Global diversification and international exposure

• Developed and emerging market debt and
currency exposure

Municipal Strategies

• Short Term

• Intermediate

- National

- Single State

• Long

- National

- Single State

• High-Yield Muni

• Tax-Advantaged

- Nuclear Decommissioning Trust

- Litigation Trust

- Insurance

• Range of offerings for investors subject to
personal or corporate income tax at
the federal or state levels

• Custom portfolios to meet the needs of taxable
trusts, including cash flow obligations, sector,
quality and maturity guidelines

Contact us:

For more information about our Fixed Income Strategies solutions, please email us.

^*As of 12/31/09. Columbia Management Group, LLC assets under management.

AUM Disclosure – As of December 31, 2009, Columbia Management Group, LLC (Columbia Management) managed assets of $320.1 billion. Columbia Management managed assets consist of assets under the discretionary management of Columbia Management Advisors, LLC ($292.9 billion) and Columbia Wanger Asset Management, L.P. ($27.3 billion), SEC registered investment advisors and indirect, wholly owned subsidiaries of Bank of America Corporation. Please note that when the assets for these two entities are aggregated, the total assets will be greater than the Columbia Management assets as a result of subadvisory relationships between the entities.