COLUMBIA VARIABLE PORTFOLIO EMERGING MARKETS FUND

Transcription

1 SEMIANNUAL REPORT June 30, 2017 COLUMBIA VARIABLE PORTFOLIO EMERGING MARKETS FUND Please remember that you may not buy (nor will you own) shares of the Fund directly. The Fund is available through variable annuity contracts and variable life insurance policies offered by the separate accounts of participating insurance companies as well as qualified pension and retirement plans. Please contact your financial advisor or insurance representative for more information. Not FDIC Insured No bank guarantee May lose value

2

3 TABLE OF CONTENTS Fund at a Glance... 2 Understanding Your Fund s Expenses... 4 Portfolio of Investments... 5 Statement of Assets and Liabilities...10 Statement of Operations...11 Statement of Changes in Net Assets...12 Financial Highlights...14 Notes to Financial Statements...16 Approval of Management Agreement...23 Additional Information...26 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

4 FUND AT A GLANCE (Unaudited) Investment objective Columbia Variable Portfolio Emerging Markets Fund (the Fund) seeks to provide shareholders with long-term capital growth. Portfolio management Dara White, CFA Lead manager Managed Fund since 2012 Robert Cameron Co-manager Managed Fund since 2012 Jasmine (Weili) Huang, CFA, CPA (U.S. and China), CFM Co-manager Managed Fund since 2012 Young Kim Co-manager Managed Fund since 2015 Perry Vickery, CFA Co-manager Managed Fund since January 2017 Average annual total returns (%) (for the period ended June 30, 2017) 6 Months Inception cumulative 1 Year 5 Years 10 Years Class 1 * 05/03/ Class 2 * 05/03/ Class 3 05/01/ MSCI Emerging Markets Index (Net) 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. For current month-end performance information, please contact your financial advisor or insurance representative. Performance results reflect the effect of any fee waivers or reimbursements of fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. Investment earnings, if any, are tax-deferred until distributed to shareholders, at which time taxes may become due. Total return performance includes changes in share price and assumes reinvestment of dividends and capital gains, if any. Performance results reflect the effect of all fund expenses, but do not include any fees and expenses imposed under your variable annuity contract and/or variable life insurance policy or qualified pension or retirement plan. If performance results included the effect of these additional charges, they would be lower. *The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit investor.columbiathreadneedleus.com/investment-products/variable-products/appended-performance for more information. The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes (except the MSCI Emerging Markets Index (Net), which reflects reinvested dividends net of withholding taxes) or other expenses of investing. Securities in the Fund may not match those in an index. 2 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

5 FUND AT A GLANCE (continued) (Unaudited) Top 10 holdings (%) (at June 30, 2017) Alibaba Group Holding Ltd., ADR (China) 5.8 Samsung Electronics Co., Ltd. (South Korea) 5.3 Tencent Holdings Ltd. (China) 5.0 Naspers Ltd., Class N (South Africa) 3.9 Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan) 3.8 SK Hynix, Inc. (South Korea) 2.7 Ping An Insurance Group Co. of China Ltd., Class H (China) 2.3 PT Bank Rakyat Indonesia Persero Tbk (Indonesia) 2.0 Industrial & Commercial Bank of China Ltd., Class H (China) 2.0 X5 Retail Group NV GDR, Registered Shares (Russian Federation) 1.9 Percentages indicated are based upon total investments (excluding Money Market Funds). For further detail about these holdings, please refer to the section entitled Portfolio of Investments. Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security. Equity sector breakdown (%) (at June 30, 2017) Consumer Discretionary 11.0 Consumer Staples 7.1 Energy 5.8 Financials 25.6 Health Care 4.6 Industrials 4.0 Information Technology 35.6 Materials 2.6 Real Estate 0.5 Telecommunication Services 1.6 Utilities 1.6 Total Country breakdown (%) (at June 30, 2017) Argentina 0.7 Brazil 5.8 Canada 0.6 China 23.6 Hong Kong 2.2 Hungary 0.4 India 8.8 Indonesia 5.4 Kenya 0.2 Malaysia 0.5 Mexico 2.1 Peru 1.1 Philippines 1.2 Poland 1.7 Russian Federation 7.0 South Africa 5.9 South Korea 14.0 Taiwan 9.5 Thailand 4.0 United Kingdom 0.3 United States (a) 5.0 Total (a) Includes investments in Money Market Funds. Country breakdown is based primarily on issuer s place of organization/incorporation. Percentages indicated are based upon total investments. The Fund s portfolio composition is subject to change. Percentages indicated are based upon total equity investments. The Fund s portfolio composition is subject to change. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

6 UNDERSTANDING YOUR FUND S EXPENSES (Unaudited) As an investor, you incur ongoing costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds. The information below does not reflect fees and expenses imposed under your variable annuity contract and/or variable life insurance policy (collectively, Contracts) or qualified pension and retirement plan (Qualified Plan), if any. The total fees and expenses you bear may therefore be higher than those shown below. Analyzing your Fund s expenses To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated 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. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the Actual column. The amount listed in the Hypothetical column assumes a 5% annual rate of return before expenses (which is not the Fund s actual return) and then applies the Fund s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See Compare with other funds below for details on how to use the hypothetical data. Compare with other funds Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees, or expenses that apply to the subaccount or the Contract. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If the fees and expenses imposed under your Contract or Qualified Plan, if any, were included, your costs would be higher. January 1, 2017 June 30, 2017 Account value at the beginning of the period ($) 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 Class 1 1, , , , Class 2 1, , , , Class 3 1, , , , Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund s most recent fiscal half year and divided by 365. Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds. Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced. 4 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

7 PORTFOLIO OF INVESTMENTS June 30, 2017 (Unaudited) (Percentages represent value of investments compared to net assets) Common Stocks 95.6% Issuer Shares Value ($) Argentina 0.7% Banco Macro SA, ADR 29,412 2,711,492 MercadoLibre, Inc. 10,284 2,580,050 Total 5,291,542 Brazil 5.7% AES Tiete Energia SA 695,200 2,868,600 BB Seguridade Participacoes SA 405,200 3,500,505 BM&FBovespa SA - Bolsa de Valores Mercadorias e Futuros 854,800 5,059,805 Embraer SA, ADR 113,923 2,076,816 Fleury SA 764,400 6,176,760 Hypermarcas SA 316,300 2,645,620 Itaú Unibanco Holding SA, ADR 746,851 8,252,703 Petroleo Brasileiro SA, ADR (a) 994,106 7,942,907 Raia Drogasil SA 126,400 2,689,849 Total 41,213,565 Canada 0.6% Parex Resources (a) 367,719 4,182,492 China 23.6% AAC Technologies Holdings, Inc. 256,500 3,203,982 Alibaba Group Holding Ltd., ADR (a) 285,690 40,253,721 Baidu, Inc., ADR (a) 45,268 8,096,634 China Animal Healthcare Ltd. (a),(b) 4,603,000 58,956 China Biologic Products, Inc. (a) 23,239 2,628,331 China Merchants Bank Co., Ltd., Class H 2,221,000 6,692,721 China Petroleum & Chemical Corp., Class H 5,108,000 3,999,573 CSPC Pharmaceutical Group Ltd. 2,610,000 3,812,191 Ctrip.com International Ltd., ADR (a) 126,208 6,797,563 Industrial & Commercial Bank of China Ltd., Class H 20,644,000 13,932,279 JD.com, Inc., ADR (a) 55,204 2,165,101 Kingdee International Software Group Co., Ltd. (a) 5,676,000 2,362,116 NetEase, Inc., ADR 24,715 7,430,070 New Oriental Education & Technology Group, Inc., ADR (a) 43,844 3,090,564 Nexteer Automotive Group Ltd. 2,224,000 3,484,023 Ping An Insurance Group Co. of China Ltd., Class H 2,446,500 16,116,072 Tencent Holdings Ltd. 964,601 34,605,023 Wuliangye Yibin Co., Ltd. 1,032,400 8,476,050 Common Stocks (continued) Issuer Shares Value ($) Wuxi Biologics Cayman, Inc. (a) 634,000 2,383,352 Total 169,588,322 Hong Kong 2.2% AIA Group Ltd. 1,043,200 7,632,428 Galaxy Entertainment Group Ltd. 291,000 1,766,168 Techtronic Industries Co., Ltd. 1,452,000 6,671,934 Total 16,070,530 Hungary 0.4% Richter Gedeon Nyrt 104,088 2,720,266 India 8.8% Adani Ports & Special Economic Zone (a) 541,357 3,039,512 Bajaj Finance Ltd. 110,674 2,348,647 Bharat Petroleum Corp., Ltd. 789,273 7,804,787 Ceat Ltd. (a) 97,266 2,698,960 Dish TV India Ltd. (a) 1,585,437 1,963,044 Eicher Motors Ltd. (a) 18,497 7,731,685 HDFC Bank Ltd., ADR 90,172 7,842,259 Indraprastha Gas Ltd. 244,765 3,999,613 IndusInd Bank Ltd. 152,826 3,494,055 Natco Pharma Ltd. 226,034 3,501,185 Petronet LNG Ltd. 652,831 4,359,570 Tejas Networks Ltd. (a) 1,076,913 5,039,895 UPL Ltd. 566,179 7,359,490 Zee Entertainment Enterprises Ltd. 287,522 2,182,321 Total 63,365,023 Indonesia 5.4% PT Ace Hardware Indonesia Tbk 54,799,200 4,358,443 PT Astra International Tbk 3,874,400 2,595,838 PT Bank Central Asia Tbk 5,758,600 7,853,686 PT Bank Rakyat Indonesia Persero Tbk 12,310,300 14,046,472 PT Nippon Indosari Corpindo Tbk 22,936,800 2,119,507 PT Pakuwon Jati Tbk 82,295,400 3,794,316 PT Sumber Alfaria Trijaya Tbk 11,644, ,012 PT Telekomunikasi Indonesia Persero Tbk 10,473,500 3,556,712 Total 38,822,986 Kenya 0.2% Safaricom Ltd. 6,558,300 1,438,779 The accompanying Notes to Financial Statements are an integral part of this statement. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

8 PORTFOLIO OF INVESTMENTS (continued) June 30, 2017 (Unaudited) Common Stocks (continued) Issuer Shares Value ($) Malaysia 0.5% MyEg Services Bhd 6,255,750 3,190,910 Mexico 2.1% Controladora Vuela Cia de Aviacion SAB de CV, ADR (a) 355,647 5,174,664 Gentera SAB de CV 3,123,440 4,688,064 Grupo Financiero Banorte SAB de CV, Class O 821,400 5,211,610 Total 15,074,338 Peru 1.1% Credicorp Ltd. 44,493 7,981,599 Philippines 1.2% GT Capital Holdings, Inc. 185,660 4,446,367 Robinsons Retail Holdings, Inc. 1,022,330 1,760,875 Security Bank Corp. 592,200 2,546,535 Total 8,753,777 Poland 1.7% Dino Polska SA (a) 424,910 5,376,663 KRUK SA 78,535 6,527,540 Total 11,904,203 Russian Federation 7.0% Aeroflot PJSC (a) 980,100 3,245,673 Detsky Mir PJSC 1,723,051 2,746,072 Lukoil PJSC, ADR 146,657 7,153,195 Magnit PJSC 19,719 3,069,443 Mail.ru Group Ltd., GDR (a),(c) 91,815 2,419,325 Mobile Telesystems OJSC, ADR 274,230 2,298,047 Sberbank of Russia PJSC, ADR 976,029 10,101,900 X5 Retail Group NV GDR, Registered Shares (a) 374,789 12,986,439 Yandex NV, Class A (a) 245,514 6,442,287 Total 50,462,381 South Africa 5.9% Aspen Pharmacare Holdings Ltd. 144,530 3,171,761 AVI Ltd. 573,847 4,167,053 Clicks Group Ltd. 253,262 2,710,237 EOH Holdings Ltd. 160,619 1,544,496 FirstRand Ltd. 1,099,587 3,962,968 Naspers Ltd., Class N 139,116 27,062,887 Total 42,619,402 Common Stocks (continued) Issuer Shares Value ($) South Korea 13.3% AMOREPACIFIC Corp. 11,046 2,933,671 CLIO Cosmetics Co., Ltd. 64,506 2,187,504 I-SENS, Inc. 34, ,231 KB Financial Group, Inc. 87,972 4,441,727 Korea Electric Power Corp. 114,687 4,089,701 LG Uplus Corp. 261,702 3,569,021 LIG Nex1 Co., Ltd. 26,254 1,698,466 Lotte Chemical Corp. 9,379 2,822,860 NAVER Corp. 6,234 4,569,714 Osstem Implant Co., Ltd. (a) 56,058 2,568,312 POSCO 21,344 5,346,503 Samsung Electronics Co., Ltd. 17,639 36,738,895 SK Hynix, Inc. 316,170 18,616,001 SK Innovation Co., Ltd. 35,331 4,893,216 Total 95,305,822 Taiwan 9.5% Cathay Financial Holding Co., Ltd. 1,999,000 3,290,408 Elite Material Co., Ltd. 1,392,000 6,745,897 ememory Technology, Inc. 247,000 3,229,112 Hon Hai Precision Industry Co., Ltd. 2,926,000 11,247,518 Largan Precision Co., Ltd. 39,000 6,209,368 Silergy Corp. 90,000 1,732,943 Taiwan Paiho., Ltd. 1,744,000 6,559,672 Taiwan Semiconductor Manufacturing Co., Ltd. 3,823,838 26,125,277 Voltronic Power Technology Corp. 194,952 3,208,767 Total 68,348,962 Thailand 4.0% Kasikornbank PCL, Foreign Registered Shares 1,202,600 7,057,343 Krungthai Card PCL 863,465 3,047,763 Mega Lifesciences PCL, Foreign Registered Shares (a) 2,093,100 1,723,589 Muangthai Leasing PCL, Foreign Registered Shares (a) 5,053,000 4,979,308 PTG Energy PCL 3,694,027 2,106,885 Siam Commercial Bank PCL (The), Foreign Registered Shares 1,091,900 4,992,067 Srisawad Power 1979 PCL 3,209,060 4,742,303 Total 28,649,258 United Kingdom 0.3% Randgold Resources Ltd. 25,128 2,227,137 The accompanying Notes to Financial Statements are an integral part of this statement. 6 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

9 PORTFOLIO OF INVESTMENTS (continued) June 30, 2017 (Unaudited) Common Stocks (continued) Money Market Funds 3.5% Issuer Shares Value ($) United States 1.4% Atento SA (a) 120,582 1,344,489 Luxoft Holding, Inc. (a) 57,446 3,495,589 Universal Display Corp. 50,338 5,499,427 Total 10,339,505 Total Common Stocks (Cost $536,606,639) 687,550,799 Shares Value ($) Columbia Short-Term Cash Fund, 1.033% (d),(e) 25,259,520 25,259,520 Total Money Market Funds (Cost $25,258,939) 25,259,520 Total Investments (Cost $565,300,620) 718,213,790 Other Assets & Liabilities, Net 1,140,364 Net Assets $719,354,154 Preferred Stocks 0.7% Issuer Coupon Rate Shares Value ($) South Korea 0.7% Samsung Electronics Co., Ltd. 3,314 5,403,471 Total Preferred Stocks (Cost $3,435,042) 5,403,471 Notes to Portfolio of Investments (a) Non-income producing investment. (b) Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At June 30, 2017, the value of these securities amounted to $58,956, which represents 0.01% of net assets. (c) Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund s Board of Trustees. At June 30, 2017, the value of these securities amounted to $2,419,325, which represents 0.34% of net assets. (d) The rate shown is the seven-day current annualized yield at June 30, (e) As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended June 30, 2017 are as follows: Issuer Beginning shares Shares purchased Shares sold Ending shares Realized gain (loss) ($) Dividends affiliated issuers($) Value ($) Columbia Short-Term Cash Fund, 1.033% 8,164, ,985,025 (101,890,438) 25,259,520 (492) 66,470 25,259,520 Abbreviation Legend ADR GDR American Depositary Receipt Global Depositary Receipt Fair value measurements The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund s assumptions about the information market participants would use in pricing an investment. An investment s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset s or liability s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. Fair value inputs are summarized in the three broad levels listed below: Level 1 Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. Level 2 Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). The accompanying Notes to Financial Statements are an integral part of this statement. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

10 PORTFOLIO OF INVESTMENTS (continued) June 30, 2017 (Unaudited) Fair value measurements (continued) Level 3 Valuations based on significant unobservable inputs (including the Fund s own assumptions and judgment in determining the fair value of investments). Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy. Foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact of significant market movements following the close of local trading, as described in Note 2 to the financial statements Security valuation. Certain investments that have been measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Short-Term Cash Fund seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal. Columbia Short-Term Cash Fund prices its shares with a floating NAV and no longer seeks to maintain a stable NAV. Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data. Under the direction of the Fund s Board of Trustees (the Board), the Investment Manager s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager s organization, including operations and accounting, trading and investments, compliance, risk management and legal. The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier. For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed. The following table is a summary of the inputs used to value the Fund s investments at June 30, 2017: Level 1 quoted prices in active markets for identical assets ($) Level 2 other significant observable inputs ($) Level 3 significant unobservable inputs ($) Investments measured at net asset value ($) Total ($) Investments Common Stocks Argentina 5,291,542 5,291,542 Brazil 41,213,565 41,213,565 Canada 4,182,492 4,182,492 China 70,461,984 99,067,382 58, ,588,322 Hong Kong 16,070,530 16,070,530 Hungary 2,720,266 2,720,266 India 7,842,259 55,522,764 63,365,023 Indonesia 38,822,986 38,822,986 Kenya 1,438,779 1,438,779 Malaysia 3,190,910 3,190,910 Mexico 15,074,338 15,074,338 Peru 7,981,599 7,981,599 Philippines 8,753,777 8,753,777 Poland 11,904,203 11,904,203 Russian Federation 15,893,529 34,568,852 50,462,381 The accompanying Notes to Financial Statements are an integral part of this statement. 8 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

11 PORTFOLIO OF INVESTMENTS (continued) June 30, 2017 (Unaudited) Fair value measurements (continued) Level 1 quoted prices in active markets for identical assets ($) Level 2 other significant observable inputs ($) Level 3 significant unobservable inputs ($) Investments measured at net asset value ($) Total ($) South Africa 42,619,402 42,619,402 South Korea 95,305,822 95,305,822 Taiwan 68,348,962 68,348,962 Thailand 28,649,258 28,649,258 United Kingdom 2,227,137 2,227,137 United States 10,339,505 10,339,505 Total Common Stocks 178,280, ,211,030 58, ,550,799 Preferred Stocks South Korea 5,403,471 5,403,471 Total Preferred Stocks 5,403,471 5,403,471 Money Market Funds 25,259,520 25,259,520 Total Investments 178,280, ,614,501 58,956 25,259, ,213,790 See the Portfolio of Investments for all investment classifications not indicated in the table. The Fund s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security s value is determined through reference to prices and information from market transactions for similar or identical assets. These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The model utilized by such third party statistical pricing service takes into account a security s correlation to available market data including, but not limited to, intraday index, ADR, and exchange-traded fund movements. There were no transfers of financial assets between levels during the period. The Fund does not hold any significant investments (greater than one percent of net assets) categorized as Level 3. The Fund s assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain common stock classified as Level 3 securities are valued using the market approach. To determine fair value for these securities, management considered various factors which may have included, but were not limited to, discount rates observed in the market for similar assets as well as the movement in certain foreign or domestic market indices. Significant increases (decreases) to any of these inputs would result in a significantly lower (higher) fair value measurement. Generally, a change in observable yields on comparable securities would result in a directionally similar change to discount rates. The accompanying Notes to Financial Statements are an integral part of this statement. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

12 STATEMENT OF ASSETS AND LIABILITIES June 30, 2017 (Unaudited) Assets Investments, at cost Unaffiliated issuers, at cost $540,041,681 Affiliated issuers, at cost 25,258,939 Total investments, at cost 565,300,620 Investments, at value Unaffiliated issuers, at value 692,954,270 Affiliated issuers, at value 25,259,520 Total investments, at value 718,213,790 Cash 183,134 Receivable for: Investments sold 2,323,282 Capital shares sold 4,303 Dividends 1,800,620 Foreign tax reclaims 39,119 Expense reimbursement due from Investment Manager 25,113 Prepaid expenses 1 Total assets 722,589,362 Liabilities Payable for: Investments purchased 183,130 Capital shares purchased 489,389 Foreign capital gains taxes deferred 1,626,701 Management services fees 685,365 Distribution and/or service fees 28,922 Transfer agent fees 35,469 Compensation of board members 80,696 Compensation of chief compliance officer 49 Other expenses 105,487 Total liabilities 3,235,208 Net assets applicable to outstanding capital stock $719,354,154 Represented by Paid in capital 632,595,320 Undistributed net investment income 1,110,488 Accumulated net realized loss (65,633,609) Unrealized appreciation (depreciation) on: Investments - unaffiliated issuers 152,912,589 Investments - affiliated issuers 581 Foreign currency translations (4,514) Foreign capital gains tax (1,626,701) Total - representing net assets applicable to outstanding capital stock $719,354,154 Class 1 Net assets $470,867,898 Shares outstanding 26,838,405 Net asset value per share $17.54 Class 2 Net assets $33,600,708 Shares outstanding 1,930,417 Net asset value per share $17.41 Class 3 Net assets $214,885,548 Shares outstanding 12,285,678 Net asset value per share $17.49 The accompanying Notes to Financial Statements are an integral part of this statement. 10 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

13 STATEMENT OF OPERATIONS Six Months Ended June 30, 2017 (Unaudited) Net investment income Income: Dividends unaffiliated issuers $6,194,217 Dividends affiliated issuers 66,470 Foreign taxes withheld (613,928) Total income 5,646,759 Expenses: Management services fees 3,878,723 Distribution and/or service fees Class 2 34,817 Class 3 126,514 Transfer agent fees Class 1 131,344 Class 2 8,356 Class 3 60,725 Compensation of board members 14,982 Custodian fees 137,664 Printing and postage fees 37,006 Audit fees 29,548 Legal fees 5,447 Compensation of chief compliance officer 79 Other 65,993 Total expenses 4,531,198 Fees waived or expenses reimbursed by Investment Manager and its affiliates (93,744) Total net expenses 4,437,454 Net investment income 1,209,305 Realized and unrealized gain (loss) net Net realized gain (loss) on: Investments unaffiliated issuers 19,858,742 Investments affiliated issuers (492) Foreign currency translations (19,876) Net realized gain 19,838,374 Net change in unrealized appreciation (depreciation) on: Investments unaffiliated issuers 116,850,543 Investments affiliated issuers 581 Foreign currency translations (7,957) Foreign capital gains tax (1,088,332) Net change in unrealized appreciation (depreciation) 115,754,835 Net realized and unrealized gain 135,593,209 Net increase in net assets resulting from operations $136,802,514 The accompanying Notes to Financial Statements are an integral part of this statement. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

14 STATEMENT OF CHANGES IN NET ASSETS Six Months Ended June 30, 2017 (Unaudited) Year Ended December 31, 2016 Operations Net investment income $1,209,305 $1,954,748 Net realized gain (loss) 19,838,374 (27,567,504) Net change in unrealized appreciation (depreciation) 115,754,835 64,012,351 Net increase in net assets resulting from operations 136,802,514 38,399,595 Distributions to shareholders Net investment income Class 1 (816,096) (1,099,737) Class 2 (5,134) (13,453) Class 3 (201,984) (209,177) Total distributions to shareholders (1,023,214) (1,322,367) Decrease in net assets from capital stock activity (30,013,020) (623,660,183) Total increase (decrease) in net assets 105,766,280 (586,582,955) Net assets at beginning of period 613,587,874 1,200,170,829 Net assets at end of period $719,354,154 $613,587,874 Undistributed net investment income $1,110,488 $924,397 The accompanying Notes to Financial Statements are an integral part of this statement. 12 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

15 STATEMENT OF CHANGES IN NET ASSETS (continued) Six Months Ended Year Ended June 30, 2017 (Unaudited) December 31, 2016 Shares Dollars ($) Shares Dollars ($) Capital stock activity Class 1 Subscriptions 14, , ,950 6,462,757 Distributions reinvested 50, ,096 79,576 1,099,737 Redemptions (1,803,862) (27,622,026) (43,557,819) (600,371,999) Net decrease (1,738,909) (26,585,239) (43,009,293) (592,809,505) Class 2 Subscriptions 512,787 8,198, ,453 4,151,123 Distributions reinvested 320 5, ,453 Redemptions (88,044) (1,487,057) (158,451) (2,173,208) Net increase 425,063 6,716, ,982 1,991,368 Class 3 Subscriptions 126,167 2,003, ,265 1,785,593 Distributions reinvested 12, ,984 15, ,177 Redemptions (765,323) (12,349,227) (2,483,606) (34,836,816) Net decrease (626,603) (10,144,042) (2,334,161) (32,842,046) Total net decrease (1,940,449) (30,013,020) (45,210,472) (623,660,183) The accompanying Notes to Financial Statements are an integral part of this statement. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

16 FINANCIAL HIGHLIGHTS The following table is intended to help you understand the Fund s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect any fees and expenses imposed under your Contract and/or Qualified Plan, as applicable; such fees and expenses would reduce the total returns for all periods shown. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund s portfolio turnover rate may be higher. Net investment income (loss) Net realized and unrealized gain (loss) Distributions from net investment income Distributions from net realized gains Year ended (except as noted) Net asset value, beginning of period Increase from payment by affiliate Total from investment operations Class 1 6/30/2017 (c) $ (0.03) 12/31/2016 $ (0.02) 12/31/2015 $ (1.37) (1.31) (0.02) (0.42) 12/31/2014 $ (0.39) (0.35) (0.03) (0.07) 12/31/2013 $ (0.38) (0.26) (0.11) 12/31/2012 $ (0.08) (0.34) Class 2 6/30/2017 (c) $ (0.00) (g) 12/31/2016 $ (0.01) 12/31/2015 $ (1.37) (1.34) (0.01) (0.42) 12/31/2014 $15.75 (0.00) (g) (0.37) (0.37) (0.01) (0.07) 12/31/2013 $ (0.38) (0.31) (0.08) 12/31/2012 $ (0.05) (0.34) Class 3 6/30/2017 (c) $ (0.02) 12/31/2016 $ (0.01) 12/31/2015 $ (1.36) (1.32) (0.02) (0.42) 12/31/2014 $ (0.38) (0.36) (0.02) (0.07) 12/31/2013 $ (0.40) (0.30) (0.09) 12/31/2012 $ (0.06) (0.34) Notes to Financial Highlights (a) In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund s reported expense ratios. (b) Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. (c) For the six months ended June 30, 2017 (unaudited). (d) Annualized. (e) Ratios include line of credit interest expense which is less than 0.01%. (f) The Fund received a payment from an affiliate. Had the Fund not received this payment, the total return would have been lower by 0.06%. (g) Rounds to zero. The accompanying Notes to Financial Statements are an integral part of this statement. 14 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

17 Total distributions to shareholders Net asset value, end of period Total return Total gross expense ratio to average net assets (a) Total net expense ratio to average net assets (a),(b) Net investment income (loss) ratio to average net assets Portfolio turnover Net assets, end of period (000 s) (0.03) $ % 1.31% (d) 1.28% (d) 0.41% (d) 25% $470,868 (0.02) $ % 1.29% (e) 1.27% (e) 0.25% 74% $408,360 (0.44) $13.61 (8.83%) 1.28% 1.25% 0.40% 77% $974,542 (0.10) $15.36 (2.27%) 1.27% 1.25% 0.26% 83% $751,812 (0.11) $15.81 (1.59%) 1.30% 1.25% 0.75% 83% $676,275 (0.42) $ % (f) 1.29% (e) 1.27% (e) 0.69% 150% $592,820 (0.00) (g) $ % 1.56% (d) 1.53% (d) 0.24% (d) 25% $33,601 (0.01) $ % 1.54% (e) 1.52% (e) 0.14% 74% $21,331 (0.43) $13.53 (9.06%) 1.53% 1.50% 0.17% 77% $18,561 (0.08) $15.30 (2.40%) 1.52% 1.50% (0.01%) 83% $18,142 (0.08) $15.75 (1.87%) 1.55% 1.50% 0.48% 83% $14,758 (0.39) $ % (f) 1.54% (e) 1.52% (e) 0.42% 150% $8,806 (0.02) $ % 1.43% (d) 1.41% (d) 0.28% (d) 25% $214,886 (0.01) $ % 1.42% (e) 1.40% (e) 0.26% 74% $183,897 (0.44) $13.58 (8.94%) 1.40% 1.38% 0.28% 77% $207,067 (0.09) $15.34 (2.33%) 1.40% 1.38% 0.15% 83% $263,988 (0.09) $15.79 (1.80%) 1.42% 1.38% 0.66% 83% $318,715 (0.40) $ % (f) 1.42% (e) 1.40% (e) 0.56% 150% $371,291 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

18 NOTES TO FINANCIAL STATEMENTS June 30, 2017 (Unaudited) Note 1. Organization Columbia Variable Portfolio Emerging Markets Fund (the Fund), a series of Columbia Funds Variable Series Trust II (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Fund shares The Trust may issue an unlimited number of shares (without par value). The Fund offers Class 1, Class 2 and Class 3 shares to separate accounts funding variable annuity contracts and variable life insurance policies (collectively, Contracts) issued by affiliated and unaffiliated life insurance companies (Participating Insurance Companies) as well as qualified pension and retirement plans (Qualified Plans) and other qualified institutional investors (Qualified Investors) authorized by Columbia Management Investment Distributors, Inc. (the Distributor). You may not buy (nor will you own) shares of the Fund directly. You may invest by participating in a Qualified Plan or by buying a Contract and making allocations to the Fund. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust s organizational documents or by law. Different share classes pay different distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own cost structure and other features. Note 2. Summary of significant accounting policies Basis of preparation The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which 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 income and expenses during the reporting period. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. Security valuation All equity securities are valued at the close of business of the New York Stock Exchange. Equity securities are valued at the last quoted sales price on the principal exchange or market on which they trade, except for securities traded on the NASDAQ Stock Market, 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 mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign equity securities are valued based on the closing price on the foreign exchange in which such securities are primarily traded. If any foreign equity security closing prices are not readily available, the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy adopted by the Board of Trustees, including, if available, utilizing a third party pricing service to determine these fair values. The third party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available. Investments in open-end investment companies, including money market funds, are valued at their latest net asset value. 16 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017

19 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 (Unaudited) Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security. The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value. GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund s Portfolio of Investments. Foreign currency transactions and translations The values of all assets and liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains (losses) on foreign currency transactions and translations 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 fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations. 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. Income recognition Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities. The Fund may receive distributions from holdings in equity securities, business development companies (BDCs), exchange-traded funds, other regulated investment companies (RICs), and real estate investment trusts (REITs), which report information on the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported. Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the extent actual information has not yet been reported, estimates for return of capital are made by the Fund s management. Management s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a proportionate change in return of capital to shareholders. Awards from class action litigation are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities, the proceeds are recorded as realized gains. Expenses General expenses of the Trust are allocated to the Fund and other funds 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. Expenses directly attributable to a specific class of shares are charged to that share class. Columbia Variable Portfolio Emerging Markets Fund Semiannual Report

20 NOTES TO FINANCIAL STATEMENTS (continued) June 30, 2017 (Unaudited) Determination of class net asset value All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class. 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, because the Fund meets the exception under Internal Revenue Code Section 4982(f), the Fund expects not to be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded. Foreign taxes The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests. Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities. Distributions to subaccounts Distributions to the subaccounts of Contracts, Qualified Plans and Qualified Investors are recorded at the close of business on the record date and are payable on the first business day following the record date. Dividends from net investment income, if any, are declared and distributed quarterly. Capital gains distributions, when available, will be made annually. However, an additional capital gain distribution may be made during the fiscal year in order to comply with the Internal Revenue Code, as applicable to registered investment companies. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. All dividends and distributions are reinvested in additional shares of the applicable share class of the Fund at the net asset value as of the ex-dividend date of the distribution. Guarantees and indemnifications Under the Trust s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund s contracts with its service providers contain general indemnification clauses. The Fund s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims. Investment company reporting modernization In October 2016, the U.S. Securities and Exchange Commission adopted new rules and forms, and amendments to certain current rules and forms, to modernize reporting and disclosure of information by registered investment companies. The amendments to Regulation S-X will require standardized, enhanced disclosure about derivatives in investment company financial statements, and will also change the rules governing the form and content of such financial statements. The amendments to Regulation S-X take effect on August 1, At this time, management is assessing the anticipated impact of these regulatory developments. Note 3. Fees and other transactions with affiliates Management services fees The Fund entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting 18 Columbia Variable Portfolio Emerging Markets Fund Semiannual Report 2017