VARIABLE PORTFOLIO - PARTNERS SMALL CAP VALUE FUND - RiverSource

Page created by Greg Brown
 
CONTINUE READING
SEMIANNUAL REPORT
June 30, 2021

VARIABLE PORTFOLIO – PARTNERS SMALL CAP
VALUE 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 Federally Insured • No Financial Institution Guarantee • May Lose Value
TABLE OF CONTENTS

Fund at a Glance .......................................................................................................................................................... 3
Understanding Your Fund’s Expenses .............................................................................................................................. 5
Portfolio of Investments ................................................................................................................................................. 6
Statement of Assets and Liabilities ..................................................................................................................................13
Statement of Operations................................................................................................................................................14
Statement of Changes in Net Assets ................................................................................................................................15
Financial Highlights.......................................................................................................................................................16
Notes to Financial Statements .......................................................................................................................................18
Liquidity Risk Management Program .................................................................................................................................26
Approval of Management and Subadvisory Agreements.........................................................................................................26

Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which Variable Portfolio – Partners Small Cap
Value Fund (the Fund) holds investments consistent with the procedures as stated in the Statement of Additional Information
(SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary or
searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund
voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending
June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the
website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on
Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at sec.gov. The Fund’s complete schedule of
portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104

Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
FUND AT A GLANCE
(Unaudited)

Investment objective
The Fund seeks to provide shareholders with long-term capital appreciation.

                                                         Average annual total returns (%) (for the period ended June 30, 2021)
  Portfolio management                                                                                                        6 Months
                                                                                                               Inception     cumulative      1 Year     5 Years     10 Years
  Segall Bryant & Hamill, LLC
                                                         Class 1                                             05/03/10             21.07      63.59       10.95          8.75
  Mark Dickherber, CFA, CPA
                                                         Class 2                                             05/03/10             20.94      63.11       10.67          8.48
  Shaun Nicholson
                                                         Class 3                                             08/14/01             21.01      63.36       10.81          8.61
  William Blair Investment Management, LLC               Russell 2000 Value Index                                                 26.69      73.28       13.62         10.85
  (subadviser)*
                                                        Performance data quoted represents past performance and current performance may be lower or higher. Past
  Investment Counselors of Maryland, LLC                performance is no guarantee of future results. The investment return and principal value will fluctuate so that
  (sub-subadviser)                                      shares, when redeemed, may be worth more or less than the original cost. For current month-end performance
  William Heaphy, CFA                                   information, please contact your financial advisor or insurance representative.
  * Effective July 19, 2021, William Blair Investment   Performance results reflect the effect of any fee waivers or reimbursements of fund expenses by Columbia
  Management, LLC acquired Investment Counselors        Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense
  of Maryland, LLC and therefore, Investment            reimbursement arrangements, performance results would have been lower.
  Counselors of Maryland, LLC no longer serves as       Investment earnings, if any, are tax-deferred until distributed to shareholders, at which time taxes may become
  sub-subadvisor for the Fund.                          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 Fund’s performance prior to May 2021 reflects returns achieved by one or more different subadvisers or a different
                                                        allocation of the Fund’s assets among subadvisers. If the Fund’s current subadvisers had been in place for the prior
                                                        periods, results shown may have been different.
                                                        The Russell 2000 Value Index, an unmanaged index, tracks the performance of those Russell 2000 Index companies
                                                        with lower price-to-book ratios and lower forecasted growth values.
                                                        Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees,
                                                        brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
                                                        Fund performance may be significantly negatively impacted by the economic impact of the
                                                        COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and
                                                        capital markets around the world in ways that will likely continue and may change in
                                                        unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate
                                                        pre-existing political, social and economic risks in certain countries and globally.

                                                                     Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021                               3
FUND AT A GLANCE                                            (continued)
(Unaudited)

 Portfolio breakdown (%) (at June 30, 2021)                                                   Equity sector breakdown (%) (at June 30, 2021)
 Common Stocks                                                                     97.8       Communication Services                                                               1.2
 Limited Partnerships                                                               0.5       Consumer Discretionary                                                               9.8
 Money Market Funds                                                                 1.7       Consumer Staples                                                                     7.2
 Rights                                                                             0.0(a)    Energy                                                                               3.5
 Total                                                                            100.0       Financials                                                                       17.9
(a) Rounds to zero.                                                                           Health Care                                                                       8.0
Percentages indicated are based upon total investments excluding investments in               Industrials                                                                      21.9
derivatives, if any. The Fund’s portfolio composition is subject to change.                   Information Technology                                                           14.5
                                                                                              Materials                                                                            6.8
                                                                                              Real Estate                                                                          6.5
                                                                                              Utilities                                                                            2.7
                                                                                              Total                                                                           100.0
                                                                                             Percentages indicated are based upon total equity investments. The Fund’s portfolio
                                                                                             composition is subject to change.

4           Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
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, 2021 — June 30, 2021
                                                   Account value at the                   Account value at the
                                                      beginning of the                          end of the                    Expenses paid during                Fund’s annualized
                                                         period ($)                             period ($)                         the period ($)                 expense ratio (%)
                                                    Actual      Hypothetical               Actual      Hypothetical           Actual       Hypothetical                       Actual
 Class 1                                         1,000.00            1,000.00          1,210.70             1,020.43            4.82                 4.41                          0.88
 Class 2                                         1,000.00            1,000.00          1,209.40             1,019.19            6.19                 5.66                          1.13
 Class 3                                         1,000.00            1,000.00          1,210.10             1,019.79            5.53                 5.06                          1.01
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.

                                                                              Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021                                5
PORTFOLIO OF INVESTMENTS
June 30, 2021 (Unaudited)
(Percentages represent value of investments compared to net assets)

Investments in securities

 Common Stocks 97.7%                                                            Common Stocks (continued)
 Issuer                                               Shares      Value ($)     Issuer                                         Shares     Value ($)
 Communication Services 1.2%                                                    Textiles, Apparel & Luxury Goods 1.5%
 Media 0.7%                                                                     Gildan Activewear, Inc.                       82,690     3,052,915
 John Wiley & Sons, Inc., Class A                    79,775      4,800,860      Oxford Industries, Inc.                       55,838     5,519,028
                                                                                                                (a)
 Wireless Telecommunication Services 0.5%                                       Under Armour, Inc., Class A                   86,415     1,827,677
 Telephone and Data Systems, Inc.                   150,350      3,406,931      Total                                                   10,399,620
 Total Communication Services                                    8,207,791      Total Consumer Discretionary                            67,267,474

 Consumer Discretionary 9.6%                                                    Consumer Staples 7.1%
 Auto Components 0.6%                                                           Food Products 3.5%
 Standard Motor Products, Inc.                       97,280      4,217,088      Cal-Maine Foods, Inc.                         97,485     3,529,932
                                                                                                                      (a)
 Automobiles 1.3%                                                               Hain Celestial Group, Inc. (The)             334,392    13,415,807
                                                                                               (a)
 Harley-Davidson, Inc.                              120,979      5,543,258      Landec Corp.                                  99,315     1,117,293
                                                                                                          (a)
 Winnebago Industries, Inc.                          56,146      3,815,682      TreeHouse Foods, Inc.                        147,117     6,549,649

 Total                                                           9,358,940      Total                                                   24,612,681

 Hotels, Restaurants & Leisure 2.1%                                             Household Products 0.5%

 Cracker Barrel Old Country Store, Inc.              24,390      3,620,939      Central Garden & Pet Co., Class A(a)          70,405     3,400,562
                                  (a)
 El Pollo Loco Holdings, Inc.                       141,395      2,586,115      Personal Products 3.1%
 Papa John’s International, Inc.                     10,226      1,068,003      Coty, Inc., Class A(a)                      1,686,129   15,748,445
                                        (a)
 Six Flags Entertainment Corp.                      164,191      7,106,187      Edgewell Personal Care Co.                    89,075     3,910,392
 Total                                                         14,381,244       Inter Parfums, Inc.                           27,699     1,994,328

 Household Durables 1.7%                                                        Total                                                   21,653,165

 Taylor Morrison Home Corp., Class A(a)             144,792      3,825,405      Total Consumer Staples                                  49,666,408
                          (a)
 Tri Pointe Homes, Inc.                             242,110      5,188,417      Energy 3.4%
                                (a)
 Universal Electronics, Inc.                         57,545      2,790,932      Energy Equipment & Services 1.7%
 Total                                                         11,804,754       Dril-Quip, Inc.(a)                           189,192     6,400,365

 Internet & Direct Marketing Retail 0.4%                                        Frank’s International NV(a)                  599,425     1,816,258

 Quotient Technology, Inc.(a)                       261,173      2,823,280      Helmerich & Payne, Inc.                       75,985     2,479,390
                                                                                                                  (a)
                                                                                NexTier Oilfield Solutions, Inc.             227,481     1,082,810
 Specialty Retail 2.0%
                                                                                Total                                                   11,778,823
 Designer Brands, Inc.(a)                           319,926      5,294,775
 Group 1 Automotive, Inc.                            30,992      4,786,095      Oil, Gas & Consumable Fuels 1.7%

 Urban Outfitters, Inc.(a)                          101,933      4,201,678      Earthstone Energy, Inc., Class A(a)          147,985     1,638,194

 Total                                                         14,282,548       Matador Resources Co.                        181,699     6,542,981
                                                                                PDC Energy, Inc.                              86,636     3,967,063
                                                                                Total                                                   12,148,238
                                                                                Total Energy                                            23,927,061

The accompanying Notes to Financial Statements are an integral part of this statement.

6           Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
PORTFOLIO OF INVESTMENTS (continued)
June 30, 2021 (Unaudited)

 Common Stocks (continued)                                                      Common Stocks (continued)
 Issuer                                               Shares      Value ($)     Issuer                                           Shares        Value ($)

 Financials 17.1%                                                               Insurance 1.0%
 Banks 14.6%                                                                    Argo Group International Holdings Ltd.           83,740     4,340,244
                                                                                             (a)
 Ameris Bancorp                                      76,690      3,882,815      eHealth, Inc.                                    47,275     2,760,860
 Atlantic Union Bankshares Corp.                     76,430      2,768,295      Total                                                       7,101,104
 Banc of California, Inc.                           209,575      3,675,946      Thrifts & Mortgage Finance 0.5%
 Berkshire Hills Bancorp, Inc.                      103,549      2,838,278      MGIC Investment Corp.                           268,010     3,644,936
 Community Bank System, Inc.                         43,546      3,294,255      Total Financials                                          120,248,645
 ConnectOne Bancorp, Inc.                           168,660      4,413,832
                                                                                Health Care 7.8%
 Dime Community Bancshares, Inc.                     14,505       487,658
                                                                                Biotechnology 0.4%
 Enterprise Financial Services Corp.                120,496      5,589,810
                                                                                Alkermes PLC(a)                                  54,902     1,346,197
 First BanCorp                                       70,155      2,870,041                       (a)
                                                                                Alkermes, Inc.                                    3,407         83,540
 First Bancshares, Inc. (The)                        87,395      3,271,195
                                                                                Arena Pharmaceuticals, Inc.(a)                   20,793     1,418,082
 First Busey Corp.                                   82,012      2,022,416
                                                                                Total                                                       2,847,819
 First Merchants Corp.                               71,246      2,968,821
                                                                                Health Care Equipment & Supplies 4.7%
 Glacier Bancorp, Inc.                               62,576      3,446,686
                                                                                Angiodynamics, Inc.(a)                           63,185     1,714,209
 Investors Bancorp, Inc.                            121,118      1,727,143
                                                                                                                     (a)
                                                                                Chembio Diagnostics, Inc.                       101,923        302,711
 Lakeland Financial Corp.                            63,524      3,915,619
                                                                                                        (a)
                                                                                ICU Medical, Inc.                                23,610     4,858,938
 National Bank Holdings Corp., Class A              122,240      4,613,338
                                                                                                               (a)
                                                                                Integer Holdings Corp.                           19,725     1,858,095
 Pacific Premier Bancorp, Inc.                       96,125      4,065,126
                                                                                Lantheus Holdings, Inc.(a)                      238,285     6,586,197
 Pinnacle Financial Partners, Inc.                   42,427      3,745,880
                                                                                NuVasive, Inc.(a)                                46,955     3,182,610
 Renasant Corp.                                      71,109      2,844,360
                                                                                                              (a)
                                                                                Orthofix Medical, Inc.                          349,234    14,007,776
 Sandy Spring Bancorp, Inc.                          71,655      3,162,135
                                                                                                      (a)
                                                                                SurModics, Inc.                                  10,904        591,542
 Seacoast Banking Corp. of Florida                  237,828      8,121,826
                                                                                Total                                                      33,102,078
 Simmons First National Corp., Class A              133,160      3,906,914
 Sterling Bancorp                                   116,760      2,894,480      Health Care Providers & Services 2.2%

 Texas Capital Bancshares, Inc.  (a)
                                                     72,175      4,582,391      Ensign Group, Inc. (The)                         40,310     3,493,668

 Umpqua Holdings Corp.                              318,772      5,881,343      Hanger, Inc.(a)                                  63,269     1,599,441
                                                                                                              (a)
 United Community Banks, Inc.                       149,735      4,793,017      Magellan Health, Inc.                            37,316     3,515,167
                                                                                                (a)
 Veritex Holdings, Inc.                             114,495      4,054,268      Mednax, Inc.                                     98,401     2,966,790

 WesBanco, Inc.                                      80,319      2,861,766      ModivCare, Inc.(a)                               25,145     4,276,410

 Total                                                         102,699,654      Total                                                      15,851,476

 Capital Markets 0.4%                                                           Health Care Technology 0.3%

 PJT Partners, Inc.                                  35,157      2,509,507      Evolent Health, Inc., Class A(a)                 88,378     1,866,543

 Consumer Finance 0.6%                                                          Pharmaceuticals 0.2%

 PRA Group, Inc.(a)                                 111,605      4,293,444      ANI Pharmaceuticals, Inc.(a)                     32,170     1,127,559
                                                                                Total Health Care                                          54,795,475

The accompanying Notes to Financial Statements are an integral part of this statement.

                                                                 Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021           7
PORTFOLIO OF INVESTMENTS (continued)
June 30, 2021 (Unaudited)

 Common Stocks (continued)                                                      Common Stocks (continued)
 Issuer                                                Shares      Value ($)    Issuer                                   Shares      Value ($)

 Industrials 21.5%                                                              Machinery 5.5%
 Aerospace & Defense 1.0%                                                       Albany International Corp., Class A      38,660     3,450,792
             (a)
 AAR Corp.                                             93,661    3,629,364      Astec Industries, Inc.                   96,128     6,050,296
                                                                                                                 (a)
 Kaman Corp.                                           71,245    3,590,748      CIRCOR International, Inc.              114,971     3,748,055
 Total                                                           7,220,112      Columbus McKinnon Corp.                  50,223     2,422,757

 Air Freight & Logistics 0.5%                                                   Enerpac Tool Group Corp.                 95,035     2,529,832

 HUB Group, Inc., Class A(a)                           56,135    3,703,787      Mueller Water Products, Inc., Class A   161,285     2,325,730
                                                                                REV Group, Inc.                         385,197     6,043,741
 Airlines 0.0%
                                                                                            (a)
                                                                                SPX Corp.                               141,405     8,637,017
 American Airlines Group, Inc.(a)                       8,011      169,913
                                                                                Standex International Corp.              31,565     2,995,834
 Building Products 1.0%
                                                                                Total                                              38,204,054
 Apogee Enterprises, Inc.                              83,876    3,416,269
                                                                                Marine 0.3%
 Quanex Building Products Corp.                       139,171    3,457,008
                                                                                Matson, Inc.                             36,886     2,360,704
 Total                                                           6,873,277
                                                                                Professional Services 1.7%
 Commercial Services & Supplies 3.8%
                                                                                CBIZ, Inc.(a)                           115,429     3,782,608
 ABM Industries, Inc.                                  67,135    2,977,437
                                                                                Huron Consulting Group, Inc.(a)          32,304     1,587,742
 Deluxe Corp.                                          99,083    4,733,195
                                                                                ICF International, Inc.                  41,310     3,629,496
 Harsco Corp.(a)                                      170,459    3,480,773
                                                                                KBR, Inc.                                69,432     2,648,831
 Herman Miller, Inc.                                   87,545    4,126,871
                                                                                Total                                              11,648,677
 KAR Auction Services, Inc.(a)                        242,440    4,254,822
 SP Plus Corp.(a)                                     241,684    7,393,114      Road & Rail 0.9%

 Total                                                          26,966,212      Marten Transport Ltd.                   167,917     2,768,951
                                                                                Werner Enterprises, Inc.                 77,565     3,453,194
 Construction & Engineering 1.9%
                                                                                Total                                               6,222,145
 Dycom Industries, Inc.(a)                             27,430    2,044,358
 Granite Construction, Inc.                            88,730    3,684,957      Trading Companies & Distributors 0.4%

 Great Lakes Dredge & Dock Corp.       (a)
                                                      272,728    3,984,556      Beacon Roofing Supply, Inc.(a)           48,474     2,581,241

 Sterling Construction Co., Inc. (a)
                                                      145,029    3,499,550      Total Industrials                                 150,852,311

 Total                                                          13,213,421      Information Technology 14.2%

 Electrical Equipment 4.5%                                                      Communications Equipment 1.8%

 AZZ, Inc.                                             95,862    4,963,734      AudioCodes Ltd.                          62,182     2,057,602
                                                                                                  (a)
 EnerSys                                               54,420    5,318,466      NETGEAR, Inc.                           104,583     4,007,621
                                                                                                           (a)
 GrafTech International Ltd.                          304,072    3,533,317      Netscout Systems, Inc.                  126,500     3,610,310

 Regal Beloit Corp.                                   133,872   17,873,251      Sierra Wireless, Inc.(a)                139,915     2,656,986

 Total                                                          31,688,768      Total                                              12,332,519

The accompanying Notes to Financial Statements are an integral part of this statement.

8             Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
PORTFOLIO OF INVESTMENTS (continued)
June 30, 2021 (Unaudited)

 Common Stocks (continued)                                                       Common Stocks (continued)
 Issuer                                                   Shares     Value ($)   Issuer                                               Shares     Value ($)

 Electronic Equipment, Instruments & Components 4.0%                             Containers & Packaging 1.3%
 Belden, Inc.                                           165,256     8,356,996    Greif, Inc., Class A                                 67,330    4,076,832
 Benchmark Electronics, Inc.                             93,360     2,657,026    Myers Industries, Inc.                               72,000    1,512,000
                           (a)
 FARO Technologies, Inc.                                111,664     8,684,109    Silgan Holdings, Inc.                                91,832    3,811,028
                   (a)
 Knowles Corp.                                          174,410     3,442,853    Total                                                          9,399,860
 Methode Electronics, Inc.                              104,330     5,134,079    Metals & Mining 2.4%
 Total                                                             28,275,063    Coeur Mining, Inc.(a)                                68,739     610,402
 IT Services 2.0%                                                                Commercial Metals Co.                                40,160    1,233,715
 Conduent, Inc.(a)                                     1,008,008    7,560,060    Compass Minerals International, Inc.                126,175    7,477,131
 CSG Systems International, Inc.                        136,895     6,458,706    Kaiser Aluminum Corp.                                10,460    1,291,705
 Total                                                             14,018,766    Materion Corp.                                       50,445    3,801,031

 Semiconductors & Semiconductor Equipment 1.5%                                   Schnitzer Steel Industries, Inc., Class A            41,017    2,011,884

 Kulicke & Soffa Industries, Inc.                       105,140     6,434,568    Total                                                         16,425,868
                             (a)
 Tower Semiconductor Ltd.                               148,690     4,375,947    Paper & Forest Products 0.7%
 Total                                                             10,810,515    Glatfelter Corp.                                    365,729    5,109,234

 Software 2.9%                                                                   Total Materials                                               46,965,119

 Cognyte Software Ltd.(a)                                84,275     2,064,737    Real Estate 6.4%
 Progress Software Corp.                                312,101    14,434,671    Equity Real Estate Investment Trusts (REITS) 6.4%
 Verint Systems, Inc.(a)                                 83,595     3,767,627    Brandywine Realty Trust                             187,140    2,565,689
 Total                                                             20,267,035    CatchMark Timber Trust, Inc., Class A               231,934    2,713,628

 Technology Hardware, Storage & Peripherals 2.0%                                 Cousins Properties, Inc.                             33,997    1,250,410

 NCR Corp.   (a)
                                                        307,501    14,025,121    Empire State Realty Trust, Inc., Class A            399,423    4,793,076

 Total Information Technology                                      99,729,019    Equity Commonwealth                                 443,529   11,620,460
                                                                                 Four Corners Property Trust, Inc.                   104,800    2,893,528
 Materials 6.7%
                                                                                 Kite Realty Group Trust                             206,639    4,548,124
 Chemicals 2.0%
                                                                                 Pebblebrook Hotel Trust                              88,265    2,078,641
 Element Solutions, Inc.                                121,292     2,835,807
                                                                                 Physicians Realty Trust                             293,718    5,424,971
 Ferro Corp.(a)                                         109,034     2,351,863
                                                                                 Retail Opportunity Investments Corp.                 75,363    1,330,911
 HB Fuller Co.                                            6,525      415,055
                                                                                                                  (a)
                                                                                 Sunstone Hotel Investors, Inc.                      150,700    1,871,694
 Minerals Technologies, Inc.                             52,138     4,101,697
                                                                                 UMH Properties, Inc.                                162,505    3,545,859
 Orion Engineered Carbons SA(a)                         221,987     4,215,533
                                                                                 Total                                                         44,636,991
 Total                                                             13,919,955
                                                                                 Total Real Estate                                             44,636,991
 Construction Materials 0.3%
                                                                                 Utilities 2.7%
 Summit Materials, Inc., Class A(a)                      60,551     2,110,202
                                                                                 Electric Utilities 1.0%
                                                                                 Allete, Inc.                                         47,880    3,350,643
                                                                                 PNM Resources, Inc.                                  71,334    3,478,959
                                                                                 Total                                                          6,829,602

The accompanying Notes to Financial Statements are an integral part of this statement.

                                                                   Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021           9
PORTFOLIO OF INVESTMENTS (continued)
June 30, 2021 (Unaudited)

 Common Stocks (continued)                                                                       Rights —%
 Issuer                                                          Shares        Value ($)         Issuer                                                            Shares          Value ($)

 Gas Utilities 0.9%                                                                              Health Care —%

 New Jersey Resources Corp.                                     79,371        3,140,711          Biotechnology —%

 Spire, Inc.                                                    43,475        3,141,938          Aduro Biotech CVR(a),(b),(c),(d)                                  4,550                  —

 Total                                                                        6,282,649          Total Health Care                                                                        —

 Multi-Utilities 0.5%                                                                            Industrials —%

 NorthWestern Corp.                                             55,852        3,363,407          Airlines —%
                                                                                                 American Airlines Escrow(a),(b),(d)                             185,100                  0
 Water Utilities 0.3%
                                                                                                 Total Industrials                                                                        0
 California Water Service Group                                 42,124        2,339,567
                                                                                                 Total Rights
 Total Utilities                                                            18,815,225
                                                                                                 (Cost $—)                                                                                0
 Total Common Stocks
 (Cost $620,931,050)                                                       685,111,519           Money Market Funds 1.7%
                                                                                                                                                                   Shares          Value ($)
 Limited Partnerships 0.4%
                                                                                                                                            (e),(f)
                                                                                                 Columbia Short-Term Cash Fund, 0.051%                         11,810,262       11,809,081
 Financials 0.4%
                                                                                                 Total Money Market Funds
 Diversified Financial Services 0.4%                                                             (Cost $11,809,081)                                                             11,809,081
 Compass Diversified Holdings                                 126,945         3,237,097          Total Investments in Securities
 Total Financials                                                             3,237,097          (Cost: $636,124,231)                                                          700,157,697

 Total Limited Partnerships                                                                      Other Assets & Liabilities, Net                                                 1,176,396
 (Cost $3,384,100)                                                            3,237,097          Net Assets                                                                    701,334,093

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, 2021, the total value of these securities amounted to $0,
    which represents less than 0.01% of total net assets.
(c) Denotes a restricted security, which is subject to legal or contractual restrictions on resale under federal securities laws. Disposal of a restricted investment may involve
    time-consuming negotiations and expenses, and prompt sale at an acceptable price may be difficult to achieve. Private placement securities are generally considered to be
    restricted, although certain of those securities may be traded between qualified institutional investors under the provisions of Section 4(a)(2) and Rule 144A. The Fund will not
    incur any registration costs upon such a trade. These securities are valued at fair value determined in good faith under consistently applied procedures established by the Fund’s
    Board of Trustees. At June 30, 2021, the total market value of these securities amounted to $0, which represents less than 0.01% of total net assets. Additional information on
    these securities is as follows:
                                                                                                                                    Acquisition
      Security                                                                                                                          Dates         Shares      Cost ($)       Value ($)
      Aduro Biotech CVR                                                                                                             10/21/2020         4,550               —              —
(d) Valuation based on significant unobservable inputs.
(e) The rate shown is the seven-day current annualized yield at June 30, 2021.
(f) As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities,
    or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended
    June 30, 2021 are as follows:
                                                                                                      Net change in
                                                                                                         unrealized
                                                 Beginning                                             appreciation              End of   Realized gain                               End of
      Affiliated issuers                       of period($)    Purchases($)           Sales($)     (depreciation)($)          period($)       (loss)($)    Dividends($)        period shares
      Columbia Short-Term Cash Fund, 0.051%
                                               25,872,839      256,914,024      (270,977,782)                         —    11,809,081                  —          10,310        11,810,262

The accompanying Notes to Financial Statements are an integral part of this statement.

10             Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
PORTFOLIO OF INVESTMENTS (continued)
June 30, 2021 (Unaudited)

Abbreviation Legend
CVR      Contingent Value Rights

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:
䡲 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.
䡲 Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).
䡲 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.
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.
The following table is a summary of the inputs used to value the Fund’s investments at June 30, 2021:

                                                                                                           Level 1 ($)            Level 2 ($)           Level 3 ($)              Total ($)
 Investments in Securities
      Common Stocks
        Communication Services                                                                               8,207,791                        —                     —           8,207,791
        Consumer Discretionary                                                                              67,267,474                        —                     —          67,267,474
        Consumer Staples                                                                                    49,666,408                        —                     —          49,666,408
        Energy                                                                                              23,927,061                        —                     —          23,927,061
        Financials                                                                                         120,248,645                        —                     —         120,248,645
        Health Care                                                                                         54,795,475                        —                     —          54,795,475
        Industrials                                                                                        150,852,311                        —                     —         150,852,311
        Information Technology                                                                              99,729,019                        —                     —          99,729,019
        Materials                                                                                           46,965,119                        —                     —          46,965,119

The accompanying Notes to Financial Statements are an integral part of this statement.

                                                                               Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021                                11
PORTFOLIO OF INVESTMENTS (continued)
June 30, 2021 (Unaudited)

Fair value measurements                    (continued)

                                                                                                        Level 1 ($)       Level 2 ($)   Level 3 ($)     Total ($)
       Real Estate                                                                                       44,636,991                —             —     44,636,991
       Utilities                                                                                         18,815,225                —             —     18,815,225
       Total Common Stocks                                                                             685,111,519                 —             —    685,111,519
    Limited Partnerships
       Financials                                                                                         3,237,097                —             —      3,237,097
       Total Limited Partnerships                                                                         3,237,097                —             —      3,237,097
    Rights
       Health Care                                                                                                    —            —             —             —
       Industrials                                                                                                    —            —             0*            0*
       Total Rights                                                                                                   —            —             0*            0*
    Money Market Funds                                                                                   11,809,081                —             —     11,809,081
 Total Investments in Securities                                                                       700,157,697                 —             0*   700,157,697

*    Rounds to zero.
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund does not hold any significant investments (greater than one percent of net assets) categorized as Level 3.

The accompanying Notes to Financial Statements are an integral part of this statement.

12          Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
STATEMENT OF ASSETS AND LIABILITIES
June 30, 2021 (Unaudited)

 Assets
 Investments in securities, at value
    Unaffiliated issuers (cost $624,315,150)                                                                                                      $688,348,616
    Affiliated issuers (cost $11,809,081)                                                                                                           11,809,081
 Receivable for:
    Investments sold                                                                                                                                 1,998,235
    Capital shares sold                                                                                                                                    792
    Dividends                                                                                                                                          509,810
    Foreign tax reclaims                                                                                                                                 1,273
    Expense reimbursement due from Investment Manager                                                                                                      102
 Prepaid expenses                                                                                                                                       15,321
 Total assets                                                                                                                                      702,683,230
 Liabilities
 Due to custodian                                                                                                                                         496
 Payable for:
    Investments purchased                                                                                                                            1,099,782
    Capital shares purchased                                                                                                                            60,664
    Management services fees                                                                                                                            16,370
    Distribution and/or service fees                                                                                                                       401
    Service fees                                                                                                                                         3,635
    Compensation of board members                                                                                                                      142,961
    Compensation of chief compliance officer                                                                                                                79
    Other expenses                                                                                                                                      24,749
 Total liabilities                                                                                                                                   1,349,137
 Net assets applicable to outstanding capital stock                                                                                               $701,334,093
 Represented by
 Trust capital                                                                                                                                    $701,334,093
 Total - representing net assets applicable to outstanding capital stock                                                                          $701,334,093
 Class 1
    Net assets                                                                                                                                    $595,087,238
    Shares outstanding                                                                                                                              16,233,528
    Net asset value per share                                                                                                                           $36.66
 Class 2
    Net assets                                                                                                                                     $11,418,360
    Shares outstanding                                                                                                                                 320,341
    Net asset value per share                                                                                                                           $35.64
 Class 3
    Net assets                                                                                                                                     $94,828,495
    Shares outstanding                                                                                                                               2,625,175
    Net asset value per share                                                                                                                           $36.12

The accompanying Notes to Financial Statements are an integral part of this statement.

                                                                           Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021     13
STATEMENT OF OPERATIONS
Six Months Ended June 30, 2021 (Unaudited)

 Net investment income
 Income:
    Dividends — unaffiliated issuers                                                        $4,733,310
    Dividends — affiliated issuers                                                              10,310
    Interfund lending                                                                               17
    Foreign taxes withheld                                                                      (6,315)
 Total income                                                                                4,737,322
 Expenses:
   Management services fees                                                                  3,378,871
   Distribution and/or service fees
      Class 2                                                                                  13,044
      Class 3                                                                                  59,783
   Service fees                                                                                30,223
   Compensation of board members                                                               33,419
   Custodian fees                                                                              21,659
   Printing and postage fees                                                                    3,867
   Audit fees                                                                                  14,628
   Legal fees                                                                                  10,161
   Interest on interfund lending                                                                   53
   Compensation of chief compliance officer                                                        83
   Other                                                                                       12,530
 Total expenses                                                                              3,578,321
 Fees waived or expenses reimbursed by Investment Manager and its affiliates                    (5,981)
 Total net expenses                                                                          3,572,340
 Net investment income                                                                       1,164,982
 Realized and unrealized gain (loss) — net
 Net realized gain (loss) on:
    Investments — unaffiliated issuers                                                     210,771,094
    Foreign currency translations                                                                   21
 Net realized gain                                                                         210,771,115
 Net change in unrealized appreciation (depreciation) on:
    Investments — unaffiliated issuers                                                     (45,893,594)
    Foreign currency translations                                                                  (36)
 Net change in unrealized appreciation (depreciation)                                      (45,893,630)
 Net realized and unrealized gain                                                          164,877,485
 Net increase in net assets resulting from operations                                     $166,042,467

The accompanying Notes to Financial Statements are an integral part of this statement.

14          Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
STATEMENT OF CHANGES IN NET ASSETS

                                                                                                            Six Months Ended
                                                                                                                June 30, 2021              Year Ended
                                                                                                                   (Unaudited)      December 31, 2020
 Operations
 Net investment income                                                                                              $1,164,982              $3,827,645
 Net realized gain (loss)                                                                                          210,771,115             (38,892,014)
 Net change in unrealized appreciation (depreciation)                                                              (45,893,630)             82,369,434
 Net increase in net assets resulting from operations                                                              166,042,467              47,305,065
 Increase (decrease) in net assets from capital stock activity                                                    (223,379,328)             42,154,346
 Total increase (decrease) in net assets                                                                             (57,336,861)           89,459,411
 Net assets at beginning of period                                                                                 758,670,954             669,211,543
 Net assets at end of period                                                                                      $701,334,093            $758,670,954

                                                                                             Six Months Ended                      Year Ended
                                                                                         June 30, 2021 (Unaudited)              December 31, 2020
                                                                                            Shares       Dollars ($)           Shares       Dollars ($)
 Capital stock activity
 Class 1
   Subscriptions                                                                          1,467,798       49,781,823         3,415,856      80,775,507
   Redemptions                                                                           (7,083,018)    (262,559,087)       (1,082,276)    (29,723,796)
 Net increase (decrease)                                                                 (5,615,220)    (212,777,264)        2,333,580      51,051,711
 Class 2
    Subscriptions                                                                          117,053         4,186,162            42,138       1,015,287
    Redemptions                                                                            (72,677)       (2,570,705)          (58,232)     (1,367,078)
 Net increase (decrease)                                                                    44,376         1,615,457           (16,094)       (351,791)
 Class 3
    Subscriptions                                                                           17,869           650,687           230,490       4,597,287
    Redemptions                                                                           (376,078)      (12,868,208)         (536,145)    (13,142,861)
 Net decrease                                                                             (358,209)      (12,217,521)         (305,655)     (8,545,574)
 Total net increase (decrease)                                                           (5,929,053)   (223,379,328)         2,011,831      42,154,346

The accompanying Notes to Financial Statements are an integral part of this statement.

                                                                 Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021        15
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
                                                                                                                                                 realized      Increase
                                                                                                         Net asset value,             Net            and            from       Total from
                                                                                                            beginning of      investment      unrealized       payment        investment
                                                                                                                  period          income      gain (loss)    by affiliate     operations
 Class 1
 Six Months Ended 6/30/2021 (Unaudited)                                                                           $30.28             0.05           6.33               —            6.38
 Year Ended 12/31/2020                                                                                            $29.04             0.16           1.08               —            1.24
 Year Ended 12/31/2019                                                                                            $24.24             0.28           4.52               —            4.80
 Year Ended 12/31/2018                                                                                            $28.01             0.25          (4.02)              —           (3.77)
 Year Ended 12/31/2017                                                                                            $26.14             0.19           1.68               —            1.87
 Year Ended 12/31/2016                                                                                            $20.81             0.09           5.24            0.00(e)         5.33
 Class 2
 Six Months Ended 6/30/2021 (Unaudited)                                                                           $29.47             0.01           6.16               —            6.17
 Year Ended 12/31/2020                                                                                            $28.34             0.10           1.03               —            1.13
 Year Ended 12/31/2019                                                                                            $23.71             0.22           4.41               —            4.63
 Year Ended 12/31/2018                                                                                            $27.48             0.18          (3.95)              —           (3.77)
 Year Ended 12/31/2017                                                                                            $25.71             0.13           1.64               —            1.77
 Year Ended 12/31/2016                                                                                            $20.51             0.04           5.16            0.00(e)         5.20
 Class 3
 Six Months Ended 6/30/2021 (Unaudited)                                                                           $29.85             0.03           6.24               —            6.27
 Year Ended 12/31/2020                                                                                            $28.67             0.13           1.05               —            1.18
 Year Ended 12/31/2019                                                                                            $23.96             0.25           4.46               —            4.71
 Year Ended 12/31/2018                                                                                            $27.73             0.21          (3.98)              —           (3.77)
 Year Ended 12/31/2017                                                                                            $25.91             0.15           1.67               —            1.82
 Year Ended 12/31/2016                                                                                            $20.64             0.06           5.21            0.00(e)         5.27

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) Annualized.
(d) Ratios include interfund lending expense which is less than 0.01%.
(e) Rounds to zero.
(f) The Fund received a payment from an affiliate. Had the Fund not received this payment, the total return would have been lower by 0.01%.

The accompanying Notes to Financial Statements are an integral part of this statement.

16          Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
FINANCIAL HIGHLIGHTS (continued)

                                                Net                     Total gross               Total net         Net investment                      Net
                                              asset                        expense                 expense                  income                   assets,
                                             value,                         ratio to                ratio to                ratio to                  end of
                                             end of         Total           average                average                 average      Portfolio     period
                                             period        return      net assets(a)        net assets(a),(b)            net assets     turnover     (000’s)
 Class 1
 Six Months Ended 6/30/2021 (Unaudited)     $36.66        21.07%             0.88%(c),(d)            0.88%(c),(d)            0.31%(c)       83%     $595,087
 Year Ended 12/31/2020                      $30.28         4.27%             0.90%                   0.88%                   0.68%          91%     $661,480
 Year Ended 12/31/2019                      $29.04        19.80%             0.89%                   0.88%                   1.02%         75%      $566,653
 Year Ended 12/31/2018                      $24.24       (13.46%)            0.88%                   0.88%                   0.88%         60%      $574,250
 Year Ended 12/31/2017                      $28.01         7.16%             0.91%                   0.91%                   0.72%        115%      $686,191
 Year Ended 12/31/2016                      $26.14        25.61%(f)          1.02%                   0.93%                   0.40%          60%     $712,682
 Class 2
 Six Months Ended 6/30/2021 (Unaudited)     $35.64        20.94%             1.14%(c),(d)            1.13%(c),(d)            0.06%(c)       83%      $11,418
 Year Ended 12/31/2020                      $29.47         3.99%             1.15%                   1.13%                   0.41%          91%       $8,133
 Year Ended 12/31/2019                      $28.34        19.53%             1.14%                   1.13%                   0.81%          75%       $8,276
 Year Ended 12/31/2018                      $23.71       (13.72%)            1.13%                   1.13%                   0.65%         60%        $6,673
 Year Ended 12/31/2017                      $27.48         6.88%             1.16%                   1.16%                   0.49%        115%        $6,814
 Year Ended 12/31/2016                      $25.71        25.35%(f)          1.25%                   1.18%                   0.17%         60%        $5,749
 Class 3
 Six Months Ended 6/30/2021 (Unaudited)     $36.12        21.01%             1.01%(c),(d)            1.01%(c),(d)            0.18%(c)       83%      $94,828
 Year Ended 12/31/2020                      $29.85         4.12%             1.02%                   1.01%                   0.54%          91%      $89,057
 Year Ended 12/31/2019                      $28.67        19.66%             1.01%                   1.00%                   0.92%          75%      $94,282
 Year Ended 12/31/2018                      $23.96       (13.60%)            1.01%                   1.00%                   0.74%          60%      $89,379
 Year Ended 12/31/2017                      $27.73         7.02%             1.04%                   1.04%                   0.59%        115%      $120,392
 Year Ended 12/31/2016                      $25.91        25.53%(f)          1.13%                   1.05%                   0.29%          60%     $134,434

The accompanying Notes to Financial Statements are an integral part of this statement.

                                                                 Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021             17
NOTES TO FINANCIAL STATEMENTS
June 30, 2021 (Unaudited)

Note 1. Organization
Variable Portfolio – Partners Small Cap Value 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 net investment income
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
Equity securities listed on an exchange are valued at the closing price or last trade on their primary exchange at the close of
business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any exchange
are valued at the mean between the closing bid and asked prices. Listed preferred stocks convertible into common stocks
are valued using an evaluated price from a pricing service.

Foreign equity securities are valued based on the closing price or last trade on their primary exchange at the close of
business of the New York Stock Exchange. 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 determined at the scheduled closing time of the New York Stock Exchange. 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. Under the policy, the Fund may utilize 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 (other than exchange-traded funds (ETFs)), are valued at the latest net asset
value reported by those companies as of the valuation time.

18      Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2021 (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, if available.

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 an 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 (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate
investment trusts (REITs), which report information as to 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 Columbia Management Investment Advisers, LLC (the Investment Manager), a
wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Investment Manager’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 on the payment date, 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.

                                                      Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021   19
NOTES TO FINANCIAL STATEMENTS (continued)
June 30, 2021 (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 is treated as a partnership for federal income tax purposes, and the Fund does not expect to make regular
distributions. The Fund will not be subject to federal income tax, and therefore, there is no provision for federal income taxes.
The partners of the Fund are subject to tax on their distributive share of the Fund’s income and loss. The components of the
Fund’s net assets are reported at the partner-level for federal income tax purposes, and therefore, are not presented in the
Statement of Assets and Liabilities.

Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require
recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a
later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations
(including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to
examination by the Internal Revenue Service.

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.

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.

Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has 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
services. The Investment Manager is responsible for the ultimate oversight of investments made by the Fund. The Fund’s
subadvisers (see Subadvisory agreements below) have the primary responsibility for the day-to-day portfolio management of
the Fund. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that
declines from 0.87% to 0.75% as the Fund’s net assets increase. The annualized effective management services fee rate for
the six months ended June 30, 2021 was 0.85% of the Fund’s average daily net assets.

Subadvisory agreements
The Investment Manager has entered into a Subadvisory Agreement with Segal Bryant & Hamill, LLC, which subadvises a
portion of the assets of the Fund. Effective May 1, 2021, the Investment Manager has entered into a Subadvisory Agreement
with William Blair Investment Management, LLC (William Blair) to serve as a subadviser to a portion of the assets of the Fund.
Investment Counselors of Maryland, LLC (ICM), an affiliate of William Blair, assists in providing day-to-day portfolio
management of the Fund pursuant to the Sub-Subadvisory Agreement between William Blair and ICM. Effective July 19, 2021,
20      Variable Portfolio – Partners Small Cap Value Fund | Semiannual Report 2021
You can also read