UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-09645
Columbia Funds Series Trust
(Exact name of registrant as specified in charter)
290 Congress Street
Boston, MA 02210
(Address of principal executive offices) (Zip code)
Daniel J. Beckman
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: April 30
Date of reporting period: April 30, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Annual Report
April 30, 2022
Columbia Short Term Municipal Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Short Term Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which 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; visiting columbiathreadneedleus.com/investor/; 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 filings are 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
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
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
Columbia Short Term Municipal Bond Fund | Annual Report 2022
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks current income exempt from federal income tax, consistent with minimal fluctuation of principal.
Portfolio management
Douglas Rangel, CFA
Lead Portfolio Manager
Managed the Fund since June 2022
Catherine Stienstra
Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA*
Portfolio Manager
Managed Fund since 2015
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Portfolio Manager of the Fund.
| Average annual total returns (%) (for the period ended April 30, 2022) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/02/93 | -3.68 | 0.47 | 0.49 |
| | Including sales charges | | -4.69 | 0.28 | 0.39 |
| Advisor Class* | 03/19/13 | -3.53 | 0.74 | 0.75 |
| Class C | Excluding sales charges | 05/19/94 | -4.48 | -0.28 | -0.26 |
| | Including sales charges | | -5.43 | -0.28 | -0.26 |
| Institutional Class | 10/07/93 | -3.44 | 0.72 | 0.74 |
| Institutional 2 Class* | 11/08/12 | -3.40 | 0.79 | 0.81 |
| Institutional 3 Class* | 03/01/17 | -3.36 | 0.81 | 0.79 |
| Bloomberg 1-3 Year Municipal Bond Index | | -2.91 | 0.82 | 0.85 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 1.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg 1-3 Year Municipal Bond Index is an unmanaged index which consists of a broad selection of investment-grade general obligation and revenue bonds of maturities ranging from one year to three years. Effective August 24, 2021, the Bloomberg Barclays 1-3 Year Municipal Bond Index was re-branded as the Bloomberg 1-3 Year Municipal Bond Index
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.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (April 30, 2012 — April 30, 2022)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Short Term Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at April 30, 2022) |
| AAA rating | 5.6 |
| AA rating | 18.6 |
| A rating | 35.4 |
| BBB rating | 19.7 |
| BB rating | 1.5 |
| B rating | 0.4 |
| Not rated | 18.8 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
Top Ten States/Territories (%)
(at April 30, 2022) |
| New York | 18.8 |
| Illinois | 9.3 |
| Massachusetts | 7.2 |
| New Jersey | 6.1 |
| Pennsylvania | 6.0 |
| California | 3.7 |
| Kentucky | 3.3 |
| Texas | 2.8 |
| Georgia | 2.8 |
| Florida | 2.7 |
Percentages indicated are based upon total investments excluding Money Market Funds and investments in derivatives, if any.
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments.”
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
| 4 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended April 30, 2022, Class A shares of Columbia Short Term Municipal Bond Fund returned -3.68% excluding sales charges. Institutional shares of the Fund returned -3.44%. The Fund underperformed its benchmark, the Bloomberg 1-3 Year Municipal Bond Index, which returned -2.91% for the same period.
Market overview
As the annual period began in May 2021, municipal bonds were one of the few bright spots for U.S. fixed income. Upward pressure on U.S. Treasury yields, driven by fears of inflation, pressured most other sectors. However, municipal bond performance was supported by record inflows, improving credit fundamentals and substantial fiscal stimulus from the federal government. Notably, tax revenue performance was rather strong, with projected deficits turning into actual surpluses for many state and local governments. Interest rate volatility led most fixed-income sectors to negative returns for the third quarter of 2021, but municipal bond performance remained one of the few positive corners of the U.S. fixed-income market.
The year 2021 ended with yet another new COVID-19 variant emerging, but despite higher transmissibility, the Omicron variant appeared to be less severe than originally feared. With economic growth and employment seemingly on track, the U.S. Federal Reserve (Fed) began tapering its asset purchases while acknowledging conditions pushing inflation higher could persist. This served to elevate interest rate volatility for the fourth calendar quarter of 2021. Congressional passage of an infrastructure spending plan provided support to the municipal bond sector via federal spending, though movement toward higher individual tax rates, which could have boosted demand, was left out of the final bill. However, entering 2022 with relatively full valuations and low absolute yields left little margin for error within the municipal bond market, and as messaging from the Fed grew increasingly hawkish, municipal bonds could no longer remain immune from rising interest rates. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
The first quarter of 2022 closed with the benchmark down in the worst drawdown since the COVID-19 sell-off and the worst first quarter return since 1980. As is often the case with municipal bonds, negative returns precipitated outflows, which, in turn, led to more negative returns. Long and intermediate national funds, as well as high-yield funds, experienced the heaviest pressure. A silver lining to the sell-off was that credit fundamentals were not a concern, as evidenced by the modest differential between below-investment-grade and investment-grade returns. A lack of high-yield supply helped to keep those returns relatively tight, and lower new issue supply avoided exacerbating the returns. Conditions persisted into the last month of the annual period, with the Bloomberg Municipal Bond Index posting a return of -2.77% in April 2022, and municipal bonds underperforming U.S. Treasuries for the month. However, rising interest rates coupled with outflows had a positive side effect for the municipal bond market. Excluding the brief COVID-19 sell-off, tax-exempt yields had not seen the levels of the first months of 2022 since early 2019. Indeed, versus other fixed-income sectors, taxable equivalent yields were attractive enough to begin enticing even bank and insurance buyers back into the municipal market. Buyers of municipal credit were also drawn in by the solid fundamentals underpinning state and local governments, which on the back of record tax collections, substantial federal aid and a growing economy, remained rather healthy. Credit upgrades outpaced downgrades, and defaults remained exceptionally low.
For the annual period as a whole, the short-term municipal bond market significantly outperformed the broader municipal bond market. The short-term municipal bond market also outperformed U.S. Treasuries and the broad U.S. fixed-income market for the annual period. While absolute returns were disappointing, the benchmark returned -2.91% as compared to a -7.88% return for the Bloomberg Municipal Bond Index, a -7.35% return for the Bloomberg Treasury Index and a -8.51% return for the Bloomberg U.S. Aggregate Bond Index for the annual period.
The Fund’s notable detractors during the period
| • | The Fund’s duration positioning detracted most from its relative results. The Fund had a longer duration profile than that of the benchmark, which hurt as municipal yields rose significantly during the annual period. |
| • | The Fund’s exposure to securities with greater than three-year maturities, which are not components of the benchmark and which underperformed the benchmark during the annual period, further dampened the Fund’s relative results. |
| • | Having an overweight to the prepaid gas sector, which underperformed the benchmark during the annual period, hurt. |
| • | Security selection among A-rated and BBB-rated bonds detracted, as did security selection within the transportation sector. |
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
The Fund’s notable contributors during the period
| • | Exposure to municipal bonds with maturities of less than one year, which are not components of the benchmark, proved beneficial, as shorter maturity municipal bonds outperformed those with longer maturities during the annual period. |
| • | Security selection among AA-rated bonds boosted the Fund’s results. Higher quality bonds overall outperformed those with lower credit ratings during the annual period, as it was generally a “risk off” time in the market. |
| • | From a sector perspective, security selection among hospital bonds added value. |
| • | From a states perspective, exposure to New York and Massachusetts local general obligation notes, which generally outperformed the benchmark during the annual period, contributed positively. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state, local or alternative minimum taxes. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund 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.
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 |
| | Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual |
| Class A | 1,000.00 | 1,000.00 | 963.80 | 1,021.64 | 3.23 | 3.33 | 0.66 |
| Advisor Class | 1,000.00 | 1,000.00 | 965.10 | 1,022.89 | 2.01 | 2.07 | 0.41 |
| Class C | 1,000.00 | 1,000.00 | 960.60 | 1,017.90 | 6.89 | 7.09 | 1.41 |
| Institutional Class | 1,000.00 | 1,000.00 | 965.00 | 1,022.89 | 2.01 | 2.07 | 0.41 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 966.10 | 1,023.14 | 1.76 | 1.82 | 0.36 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 966.40 | 1,023.39 | 1.52 | 1.56 | 0.31 |
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.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 7 |
Portfolio of Investments
April 30, 2022
(Percentages represent value of investments compared to net assets)
Investments in securities
| Fixed Income Funds 0.6% |
| | Shares | Value ($) |
| Municipal 0.6% |
| Nuveen AMT-Free Quality Municipal Income Fund, Preferred Shares | 5,000,000 | 5,000,000 |
Total Fixed Income Funds
(Cost $5,000,000) | 5,000,000 |
| Floating Rate Notes 1.5% |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Florida 0.2% |
| County of Martin(a) |
| Revenue Bonds |
| Series 2000 |
| 07/15/2022 | 0.400% | | 700,000 | 700,000 |
| JEA Electric System(a),(b) |
| Revenue Bonds |
| Series 2011 (US Bank NA) |
| 10/01/2038 | 0.370% | | 700,000 | 700,000 |
| Total | 1,400,000 |
| New York 1.3% |
| City of New York(a),(b) |
| Unlimited General Obligation Bonds |
| Fiscal 2015 |
| Subordinated Series 2015 (JPMorgan Chase Bank) |
| 06/01/2044 | 0.330% | | 3,600,000 | 3,600,000 |
| Series 2015 (Barclays Bank PLC) |
| 06/01/2044 | 0.350% | | 800,000 | 800,000 |
| New York City Transitional Finance Authority(a),(b) |
| Revenue Bonds |
| Future Tax Secured |
| Subordinated Series 2015 (JPMorgan Chase Bank) |
| 02/01/2045 | 0.330% | | 5,700,000 | 5,700,000 |
| Total | 10,100,000 |
Total Floating Rate Notes
(Cost $11,500,000) | 11,500,000 |
|
| Municipal Bonds 86.7% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Alabama 2.6% |
| Black Belt Energy Gas District |
| Revenue Bonds |
| Project No. 4 |
| Series 2019A-1 |
| 06/01/2023 | 4.000% | | 1,000,000 | 1,011,550 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Project No. 7 |
| Series 2021 |
| 12/01/2024 | 4.000% | | 2,570,000 | 2,612,868 |
| Series 2017-A (Mandatory Put 07/01/22) |
| 08/01/2047 | 4.000% | | 2,500,000 | 2,510,042 |
| Series 2018A (Mandatory Put 12/01/23) |
| 12/01/2048 | 4.000% | | 4,970,000 | 5,030,006 |
| Black Belt Energy Gas District(c) |
| Revenue Bonds |
| Series 2018B-1 (Mandatory Put 12/01/23) |
0.7 x 1-month USD LIBOR + 0.900%
12/01/2048 | 1.204% | | 1,000,000 | 994,466 |
| Series 2018B-2 (Mandatory Put 12/01/23) |
Muni Swap Index Yield + 0.620%
12/01/2048 | 1.060% | | 5,000,000 | 4,973,746 |
| Industrial Development Board of the City of Mobile |
| Senior Revenue Bonds |
| Alabama Power Co. - Barry Plant Project |
| Series 2020 (Mandatory Put 06/26/25) |
| 06/01/2034 | 1.000% | | 1,150,000 | 1,082,882 |
| Lower Alabama Gas District (The) |
| Revenue Bonds |
| Gas Project |
| Series 2020 (Mandatory Put 12/01/25) |
| 12/01/2050 | 4.000% | | 600,000 | 611,496 |
| Southeast Energy Authority A Cooperative District |
| Revenue Bonds |
| Project #2 |
| Series 2021B |
| 06/01/2026 | 4.000% | | 1,265,000 | 1,305,059 |
| Total | 20,132,115 |
| Alaska 0.6% |
| Alaska Industrial Development & Export Authority |
| Refunding Revenue Bonds |
| Greater Fairbanks Community Hospital Foundation Project |
| Series 2019 |
| 04/01/2023 | 5.000% | | 1,870,000 | 1,917,990 |
| 04/01/2024 | 5.000% | | 1,800,000 | 1,877,203 |
| Alaska Municipal Bond Bank Authority |
| Refunding Revenue Bonds |
| Series 2020-1 |
| 12/01/2022 | 5.000% | | 700,000 | 712,524 |
| Total | 4,507,717 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Arizona 1.1% |
| Arizona Industrial Development Authority |
| Revenue Bonds |
| Lincoln South Beltway Project |
| Series 2020 |
| 02/01/2023 | 5.000% | | 1,250,000 | 1,275,567 |
| 05/01/2023 | 5.000% | | 1,000,000 | 1,026,808 |
| Chandler Industrial Development Authority(d) |
| Revenue Bonds |
| Intel Corp. |
| Series 2019 (Mandatory Put 06/03/24) |
| 06/01/2049 | 5.000% | | 1,450,000 | 1,514,905 |
| City of Phoenix Civic Improvement Corp.(d) |
| Revenue Bonds |
| Junior Lien - Airport |
| Series 2019B |
| 07/01/2026 | 5.000% | | 990,000 | 1,060,859 |
| Coconino County Pollution Control Corp.(d) |
| Refunding Revenue Bonds |
| Nevada Power Co. |
| Series 2020 (Mandatory Put 03/31/23) |
| 09/01/2032 | 1.875% | | 1,500,000 | 1,494,963 |
| Maricopa County Industrial Development Authority(c) |
| Refunding Revenue Bonds |
| Banner Health Obligation |
| Series 2019 (Mandatory Put 10/18/24) |
Muni Swap Index Yield + 0.570%
01/01/2035 | 1.010% | | 1,375,000 | 1,380,529 |
| Maricopa County Pollution Control Corp. |
| Refunding Revenue Bonds |
| Palo Verde Project |
| Series 2021 (Mandatory Put 10/01/26) |
| 06/01/2043 | 0.875% | | 1,000,000 | 898,373 |
| Total | 8,652,004 |
| California 3.0% |
| Bay Area Toll Authority(c) |
| Revenue Bonds |
| San Francisco Bay Area Toll Bridge |
| Series 2012 (Mandatory Put 04/01/24) |
Muni Swap Index Yield + 1.100%
04/01/2045 | 1.540% | | 500,000 | 502,386 |
| California Community Choice Financing Authority |
| Revenue Bonds |
| Green Bonds - Clean Energy Project |
| Series 2021 (Mandatory Put 12/01/27) |
| 10/01/2052 | 4.000% | | 1,000,000 | 1,025,108 |
| California County Tobacco Securitization Agency |
| Refunding Revenue Bonds |
| Series 2020A |
| 06/01/2022 | 4.000% | | 300,000 | 300,555 |
| 06/01/2023 | 4.000% | | 400,000 | 404,843 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Public Finance Authority |
| Refunding Revenue Bonds |
| Henry Mayo Newhall Hospital |
| Series 2017 |
| 10/15/2022 | 5.000% | | 300,000 | 304,198 |
| Series 2021 |
| 10/15/2024 | 4.000% | | 380,000 | 390,908 |
| 10/15/2025 | 4.000% | | 400,000 | 415,034 |
| 10/15/2026 | 4.000% | | 415,000 | 433,995 |
| California Public Finance Authority(e) |
| Revenue Bonds |
| Enso Village Project - TEMPS 50 |
| Series 2021 |
| 11/15/2027 | 2.125% | | 3,000,000 | 2,843,485 |
| City of Los Angeles Department of Airports(d) |
| Refunding Revenue Bonds |
| Los Angeles International Airport |
| Subordinated Series 2022 |
| 05/15/2025 | 5.000% | | 1,930,000 | 2,039,345 |
| City of Vernon Electric System(f) |
| Refunding Revenue Bonds |
| Series 2022A |
| 08/01/2025 | 5.000% | | 500,000 | 524,010 |
| 08/01/2026 | 5.000% | | 600,000 | 634,540 |
| Corona-Norco Unified School District(g) |
| Unlimited General Obligation Bonds |
| Capital Appreciation |
| Series 2002D (AGM) |
| 09/01/2027 | 0.000% | | 2,000,000 | 1,692,956 |
| County of Sacramento Airport System(d) |
| Refunding Revenue Bonds |
| Series 2018C |
| 07/01/2029 | 5.000% | | 1,585,000 | 1,721,277 |
| Golden State Tobacco Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2017A-1 Escrowed to Maturity |
| 06/01/2022 | 5.000% | | 1,000,000 | 1,003,442 |
| Palomar Health |
| Refunding Revenue Bonds |
| Series 2016 |
| 11/01/2022 | 5.000% | | 375,000 | 380,411 |
| Pittsburg Successor Agency Redevelopment Agency(g) |
| Tax Allocation Bonds |
| Los Medanos Community Development Project |
| Series 1999 (AMBAC) |
| 08/01/2024 | 0.000% | | 2,000,000 | 1,880,484 |
| Port of Oakland(d) |
| Refunding Revenue Bonds |
| Intermediate Lien |
| Junior Subordinated Series 2021 |
| 05/01/2026 | 5.000% | | 4,125,000 | 4,436,440 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 9 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Sacramento Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Subordinated Series 2015A (BAM) |
| 12/01/2022 | 5.000% | | 385,000 | 392,000 |
| San Francisco City & County Airport Commission - San Francisco International Airport(d) |
| Refunding Revenue Bonds |
| Series 2019 |
| 01/01/2026 | 5.000% | | 1,500,000 | 1,596,421 |
| Total | 22,921,838 |
| Colorado 1.5% |
| City & County of Denver Airport System(d) |
| Refunding Revenue Bonds |
| Series 2017A |
| 11/15/2030 | 5.000% | | 1,925,000 | 2,062,800 |
| System |
| Subordinated Series 2018A |
| 12/01/2026 | 5.000% | | 1,500,000 | 1,613,236 |
| Colorado Health Facilities Authority |
| Refunding Revenue Bonds |
| CommonSpirit Health |
| Series 2019B (Mandatory Put 08/01/26) |
| 08/01/2049 | 5.000% | | 2,000,000 | 2,141,286 |
| CommonSpirit Health Services |
| Series 2019B (Mandatory Put 08/01/25) |
| 08/01/2049 | 5.000% | | 1,000,000 | 1,054,680 |
| Evangelical Lutheran Good Samaritan Society Project (The) |
| Series 2017 Escrowed to Maturity |
| 06/01/2022 | 5.000% | | 250,000 | 250,839 |
| Revenue Bonds |
| Aberdeen Ridge |
| Series 2021B |
| 05/15/2028 | 2.125% | | 1,750,000 | 1,631,936 |
| E-470 Public Highway Authority(c) |
| Refunding Revenue Bonds |
| Series 2021B (Mandatory Put 09/01/24) |
0.7 x SOFR + 0.350%
09/01/2039 | 0.538% | | 1,000,000 | 979,885 |
| University of Colorado |
| Refunding Revenue Bonds |
| University Enterprise |
| Series 2021 (Mandatory Put 10/15/25) |
| 06/01/2051 | 2.000% | | 1,750,000 | 1,691,468 |
| Total | 11,426,130 |
| Connecticut 0.8% |
| City of New Haven |
| Unlimited General Obligation Bonds |
| Series 2019A (AGM) |
| 08/01/2024 | 5.000% | | 1,000,000 | 1,053,429 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Connecticut Housing Finance Authority(d) |
| Refunding Revenue Bonds |
| Housing Mortgage Finance Program |
| Series 2021 |
| 05/15/2023 | 0.350% | | 350,000 | 343,495 |
| 11/15/2023 | 0.400% | | 300,000 | 291,131 |
| Subordinated Series 2018A-2 |
| 05/15/2022 | 2.375% | | 1,460,000 | 1,460,699 |
| South Central Connecticut Regional Water Authority(f) |
| Refunding Revenue Bonds |
| Thirty Sixth Series 2022B-1 |
| 08/01/2024 | 4.000% | | 2,325,000 | 2,399,854 |
| State of Connecticut |
| Revenue Bonds |
| Special Tax Obligation Bonds |
| Series 2020A |
| 05/01/2022 | 5.000% | | 400,000 | 400,095 |
| Total | 5,948,703 |
| District of Columbia 0.4% |
| District of Columbia |
| Revenue Bonds |
| Federal Highway Grant Anticipation |
| Series 2011 |
| 12/01/2023 | 5.250% | | 1,750,000 | 1,754,163 |
| Metropolitan Washington Airports Authority Aviation(d) |
| Refunding Revenue Bonds |
| Airport System |
| Series 2019A |
| 10/01/2024 | 5.000% | | 1,000,000 | 1,049,577 |
| Total | 2,803,740 |
| Florida 2.5% |
| City of Jacksonville(f) |
| Refunding Revenue Bonds |
| Series 2022A |
| 10/01/2025 | 5.000% | | 700,000 | 742,883 |
| City of Pompano Beach |
| Revenue Bonds |
| John Knox Village Project |
| Series 2021 |
| 01/01/2027 | 1.450% | | 2,000,000 | 1,804,905 |
| City of Port St. Lucie |
| Special Assessment Refunding Revenue Bonds |
| Series 2016 |
| 07/01/2026 | 2.250% | | 1,750,000 | 1,704,332 |
| County of Lee Airport(d) |
| Refunding Revenue Bonds |
| Series 2021A |
| 10/01/2025 | 5.000% | | 2,130,000 | 2,258,824 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| County of Lee Solid Waste System(d) |
| Refunding Revenue Bonds |
| Series 2016 (NPFGC) |
| 10/01/2022 | 5.000% | | 3,100,000 | 3,135,103 |
| Florida Development Finance Corp.(e) |
| Revenue Bonds |
| Mayflower Retirement Community Center - TEMPS 50 |
| Series 2021 |
| 06/01/2026 | 1.750% | | 1,020,000 | 949,015 |
| Greater Orlando Aviation Authority(d) |
| Refunding Revenue Bonds |
| Subordinated Series 2016A |
| 10/01/2027 | 5.000% | | 1,000,000 | 1,082,054 |
| Hillsborough County Aviation Authority(d) |
| Prerefunded 10/01/24 Revenue Bonds |
| Tampa International Airport |
| Subordinated Series 2015B |
| 10/01/2040 | 5.000% | | 3,000,000 | 3,148,729 |
| Jacksonville Port Authority(d) |
| Prerefunded 11/01/22 Revenue Bonds |
| Series 2012 |
| 11/01/2038 | 5.000% | | 1,545,000 | 1,567,370 |
| Seminole County Industrial Development Authority |
| Refunding Revenue Bonds |
| Legacy Pointe at UCF Project |
| Series 2019 |
| 11/15/2025 | 3.750% | | 2,000,000 | 1,895,713 |
| St. Johns County Industrial Development Authority |
| Refunding Revenue Bonds |
| Vicar’s Landing Project |
| Series 2021 |
| 12/15/2024 | 4.000% | | 145,000 | 146,287 |
| 12/15/2025 | 4.000% | | 180,000 | 180,958 |
| 12/15/2026 | 4.000% | | 185,000 | 185,148 |
| Village Community Development District No. 13 |
| Special Assessment Bonds |
| Series 2021 |
| 05/01/2026 | 1.800% | | 500,000 | 465,434 |
| Total | 19,266,755 |
| Georgia 2.8% |
| Bartow County Development Authority(a) |
| Revenue Bonds |
| Georgia Power Co. Plant |
| Series 2019 (Mandatory Put 08/19/22) |
| 08/01/2043 | 1.550% | | 500,000 | 498,844 |
| Burke County Development Authority |
| Revenue Bonds |
| Georgia Power Co. Plant Vogtle Project |
| Series 2019 (Mandatory Put 05/25/23) |
| 10/01/2032 | 2.250% | | 1,000,000 | 994,208 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Development Authority of Burke County (The) |
| Revenue Bonds |
| Georgia Power Co. Plant Vogtle Project |
| Series 2019 (Mandatory Put 03/12/24) |
| 11/01/2048 | 2.925% | | 1,250,000 | 1,245,704 |
| Georgia State Road & Tollway Authority(e),(g) |
| Revenue Bonds |
| I-75 S Express Lanes Project |
| Series 2014 Escrowed to Maturity |
| 06/01/2024 | 0.000% | | 735,000 | 677,112 |
| Main Street Natural Gas, Inc.(e) |
| Revenue Bonds |
| Gas Supply |
| Series 2022C (Mandatory Put 11/01/27) |
| 08/01/2052 | 4.000% | | 3,000,000 | 2,991,190 |
| Main Street Natural Gas, Inc.(c) |
| Revenue Bonds |
| Series 2018B (Mandatory Put 09/01/23) |
0.7 x 1-month USD LIBOR + 0.750%
04/01/2048 | 1.054% | | 1,500,000 | 1,491,607 |
| Main Street Natural Gas, Inc. |
| Revenue Bonds |
| Series 2019A |
| 05/15/2024 | 5.000% | | 1,250,000 | 1,288,735 |
| Series 2019B (Mandatory Put 12/02/24) |
| 08/01/2049 | 4.000% | | 3,925,000 | 4,021,853 |
| Series 2019C |
| 09/01/2024 | 5.000% | | 1,500,000 | 1,560,710 |
| Series 2019C (Mandatory Put 09/01/26) |
| 03/01/2050 | 4.000% | | 4,500,000 | 4,586,602 |
| Series 2021C |
| 12/01/2027 | 4.000% | | 1,225,000 | 1,255,559 |
| Municipal Electric Authority of Georgia |
| Refunding Revenue Bonds |
| Power |
| Series 2018HH |
| 01/01/2023 | 5.000% | | 875,000 | 893,072 |
| Total | 21,505,196 |
| Guam 0.4% |
| Guam Power Authority(f),(h) |
| Refunding Revenue Bonds |
| Series 2022A |
| 10/01/2025 | 5.000% | | 2,375,000 | 2,492,801 |
| Territory of Guam(h) |
| Refunding Revenue Bonds |
| Section 30 |
| Series 2016A |
| 12/01/2022 | 5.000% | | 500,000 | 508,364 |
| Total | 3,001,165 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 11 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Idaho 0.6% |
| Idaho Health Facilities Authority |
| Prerefunded 10/01/24 Revenue Bonds |
| Terraces of Boise Project |
| Series 2014A |
| 10/01/2044 | 8.000% | | 3,700,000 | 4,158,672 |
| Idaho Housing & Finance Association |
| Revenue Bonds |
| Sunset Landing Apartment Project |
| Series 2021 |
| 07/01/2024 | 0.700% | | 820,000 | 786,322 |
| Total | 4,944,994 |
| Illinois 9.3% |
| Chicago Board of Education |
| Unlimited General Obligation Refunding Bonds |
| Series 2021B |
| 12/01/2022 | 5.000% | | 400,000 | 406,643 |
| Chicago Housing Authority |
| Revenue Bonds |
| Series 2018A (HUD) |
| 01/01/2023 | 5.000% | | 1,000,000 | 1,016,398 |
| Chicago Midway International Airport(d) |
| Refunding Revenue Bonds |
| Junior 2nd Lien |
| Series 2014A |
| 01/01/2027 | 5.000% | | 2,885,000 | 2,974,033 |
| Series 2016A |
| 01/01/2024 | 5.000% | | 2,000,000 | 2,071,067 |
| Chicago O’Hare International Airport(d) |
| Refunding Revenue Bonds |
| Series 2015A |
| 01/01/2028 | 5.000% | | 2,515,000 | 2,623,608 |
| City of Chicago |
| Unlimited General Obligation Refunding Bonds |
| Series 2020A |
| 01/01/2024 | 5.000% | | 340,000 | 351,298 |
| Series 2021A |
| 01/01/2029 | 5.000% | | 2,000,000 | 2,138,007 |
| City of Chicago Wastewater Transmission |
| Refunding Revenue Bonds |
| 2nd Lien |
| Series 2008 |
| 01/01/2024 | 5.000% | | 2,200,000 | 2,286,915 |
| City of Chicago Waterworks |
| Refunding Revenue Bonds |
| Series 2016 |
| 11/01/2022 | 5.000% | | 3,220,000 | 3,270,466 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Cook County Community College District No. 535 Oakton |
| Prerefunded 12/01/24 Limited General Obligation Bonds |
| Limited Tax |
| Series 2014 |
| 12/01/2027 | 4.000% | | 200,000 | 207,601 |
| Cook County School District No. 99 Cicero |
| Unlimited General Obligation Refunding Bonds |
| Series 2019 |
| 12/01/2023 | 5.000% | | 575,000 | 595,393 |
| County of Cook Sales Tax |
| Revenue Bonds |
| Series 2012 |
| 11/15/2024 | 5.000% | | 810,000 | 823,384 |
| Illinois Development Finance Authority(g) |
| Revenue Bonds |
| Regency Park |
| Series 1991 Escrowed to Maturity |
| 07/15/2025 | 0.000% | | 2,010,000 | 1,847,265 |
| Zero Regency Park |
| Series 1991 Escrowed to Maturity |
| 07/15/2023 | 0.000% | | 2,395,000 | 2,331,056 |
| Illinois Finance Authority |
| Improvement Refunding Bonds |
| Chicago International |
| Series 2017 |
| 12/01/2022 | 5.000% | | 290,000 | 293,743 |
| Refunding Revenue Bonds |
| American Water Capital Corp. Project |
| Series 2020 (Mandatory Put 09/01/23) |
| 05/01/2040 | 0.700% | | 2,000,000 | 1,951,224 |
| Lifespace Communities |
| Series 2015 |
| 05/15/2023 | 5.000% | | 250,000 | 254,842 |
| 05/15/2024 | 5.000% | | 450,000 | 465,548 |
| OSF Healthcare System |
| Series 2015A |
| 11/15/2022 | 5.000% | | 555,000 | 564,737 |
| Illinois Finance Authority(c) |
| Refunding Revenue Bonds |
| Presbyterian Homes |
| Series 2021 (Mandatory Put 05/01/26) |
Muni Swap Index Yield + 0.700%
05/01/2042 | 1.140% | | 1,250,000 | 1,252,607 |
| Illinois Housing Development Authority |
| Revenue Bonds |
| Senior |
| Series 2016A |
| 10/01/2031 | 3.125% | | 1,325,000 | 1,312,653 |
| Series 2021C (FHA) |
| 07/01/2026 | 0.800% | | 1,000,000 | 921,947 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Kane Cook & DuPage Counties School District No. U-46 Elgin(g) |
| Unrefunded Unlimited General Obligation Bonds |
| Series 2003B (AMBAC) |
| 01/01/2023 | 0.000% | | 2,000,000 | 1,972,068 |
| Kendall Kane & Will Counties Community Unit School District No. 308 |
| Unlimited General Obligation Refunding Bonds |
| Series 2011A |
| 02/01/2023 | 5.500% | | 2,000,000 | 2,051,522 |
| Metropolitan Pier & Exposition Authority |
| Refunding Revenue Bonds |
| McCormick Place Expansion |
| Series 2022 |
| 06/15/2024 | 3.000% | | 2,250,000 | 2,249,039 |
| 06/15/2025 | 3.000% | | 2,000,000 | 1,988,768 |
| Northern Illinois University |
| Refunding Revenue Bonds |
| Northern University of Illinois |
| Series 2020B (BAM) |
| 04/01/2025 | 5.000% | | 400,000 | 423,359 |
| Revenue Bonds |
| Board of Trustees |
| Series 2021 (BAM) |
| 10/01/2025 | 5.000% | | 310,000 | 330,820 |
| 10/01/2026 | 5.000% | | 250,000 | 270,360 |
| Railsplitter Tobacco Settlement Authority |
| Revenue Bonds |
| Series 2017 |
| 06/01/2023 | 5.000% | | 2,415,000 | 2,477,407 |
| 06/01/2024 | 5.000% | | 3,000,000 | 3,126,565 |
| Sales Tax Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2018C |
| 01/01/2023 | 5.000% | | 1,000,000 | 1,021,254 |
| State of Illinois |
| Unlimited General Obligation Bonds |
| Senior |
| Series 2014 |
| 05/01/2026 | 5.000% | | 2,000,000 | 2,073,394 |
| 05/01/2027 | 5.000% | | 1,500,000 | 1,553,394 |
| Series 2017D |
| 11/01/2022 | 5.000% | | 2,000,000 | 2,028,375 |
| 11/01/2028 | 5.000% | | 4,775,000 | 5,127,722 |
| Series 2020B |
| 10/01/2026 | 5.000% | | 1,000,000 | 1,070,924 |
| Series 2020C |
| 05/01/2022 | 5.125% | | 500,000 | 500,114 |
| 05/01/2023 | 5.375% | | 250,000 | 256,849 |
| Series 2020D |
| 10/01/2022 | 5.000% | | 500,000 | 506,057 |
| 10/01/2024 | 5.000% | | 2,000,000 | 2,093,079 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2021A |
| 03/01/2024 | 5.000% | | 1,250,000 | 1,297,639 |
| 03/01/2025 | 5.000% | | 500,000 | 525,926 |
| 03/01/2028 | 5.000% | | 2,500,000 | 2,701,505 |
| Series 2021B |
| 03/01/2023 | 5.000% | | 2,500,000 | 2,552,446 |
| Unlimited General Obligation Refunding Bonds |
| Series 2018A |
| 10/01/2023 | 5.000% | | 2,300,000 | 2,372,867 |
| Series 2021C |
| 03/01/2024 | 4.000% | | 1,000,000 | 1,020,430 |
| Village of Bolingbrook |
| Refunding Special Tax Bonds |
| Series 2018 (AGM) |
| 03/01/2023 | 4.000% | | 510,000 | 518,225 |
| Total | 72,070,543 |
| Indiana 2.6% |
| City of Whiting(d) |
| Refunding Revenue Bonds |
| BP Products North America |
| Series 2019 (Mandatory Put 06/05/26) |
| 12/01/2044 | 5.000% | | 1,000,000 | 1,065,288 |
| Indiana Finance Authority(d) |
| Prerefunded 07/01/23 Revenue Bonds |
| Ohio River Bridges East End Crossing Project |
| Series 2013 |
| 07/01/2044 | 5.000% | | 3,000,000 | 3,083,186 |
| Private Activity - Ohio River Bridges East End Crossing Project |
| Series 2013 |
| 01/01/2051 | 5.250% | | 11,500,000 | 11,851,548 |
| Indiana Finance Authority |
| Refunding Revenue Bonds |
| Indianapolis Power & Light Co. Project |
| Series 2021 |
| 08/01/2025 | 0.650% | | 1,500,000 | 1,356,206 |
| Indianapolis Local Public Improvement Bond Bank(d) |
| Refunding Revenue Bonds |
| Series 2021 |
| 01/01/2026 | 5.000% | | 2,750,000 | 2,837,148 |
| Total | 20,193,376 |
| Iowa 1.1% |
| City of Waverly |
| Revenue Bonds |
| Waverly Health Center Project |
| BAN Series 2019 |
| 12/31/2022 | 2.500% | | 500,000 | 497,495 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 13 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Iowa Finance Authority |
| Prerefunded 07/01/23 Revenue Bonds |
| Genesis Health System |
| Series 2013 |
| 07/01/2025 | 5.000% | | 2,500,000 | 2,579,510 |
| Iowa Student Loan Liquidity Corp.(d) |
| Refunding Revenue Bonds |
| Series 2019B |
| 12/01/2022 | 5.000% | | 400,000 | 407,249 |
| 12/01/2023 | 5.000% | | 1,880,000 | 1,953,786 |
| Revenue Bonds |
| Series 2015A |
| 12/01/2022 | 5.000% | | 2,000,000 | 2,036,248 |
| PEFA, Inc. |
| Revenue Bonds |
| Series 2019 (Mandatory Put 09/01/26) |
| 09/01/2049 | 5.000% | | 1,045,000 | 1,102,780 |
| Total | 8,577,068 |
| Kansas 0.3% |
| City of Eudora |
| Unlimited General Obligation Bonds |
| Temporary Notes |
| Series 2021A |
| 09/01/2023 | 3.000% | | 2,485,000 | 2,512,791 |
| Kentucky 2.9% |
| City of Henderson(d),(e) |
| Revenue Bonds |
| Pratt Paper LLC Project |
| Series 2022 |
| 01/01/2032 | 3.700% | | 1,000,000 | 976,899 |
| County of Owen |
| Refunding Revenue Bonds |
| Kentucky-American Water Co. Project |
| Series 2020 (Mandatory Put 09/01/23) |
| 06/01/2040 | 0.700% | | 1,250,000 | 1,219,515 |
| Kenton County School District Finance Corp. |
| Refunding Revenue Bonds |
| Series 2015B |
| 10/01/2025 | 3.000% | | 1,995,000 | 2,010,704 |
| Kentucky Asset Liability Commission |
| Revenue Bonds |
| Project Notes - Federal Highway Trust Fund |
| Series 2015 |
| 09/01/2023 | 5.000% | | 500,000 | 518,408 |
| Kentucky Economic Development Finance Authority |
| Refunding Revenue Bonds |
| Owensboro Health System |
| Series 2017A |
| 06/01/2022 | 5.000% | | 1,000,000 | 1,003,081 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Kentucky Interlocal School Transportation Association |
| Refunding Certificate of Participation |
| Series 2021 |
| 03/01/2025 | 1.250% | | 1,485,000 | 1,388,477 |
| 03/01/2026 | 1.250% | | 1,210,000 | 1,103,600 |
| Kentucky Public Energy Authority |
| Revenue Bonds |
| Series 2018A (Mandatory Put 04/01/24) |
| 04/01/2048 | 4.000% | | 2,780,000 | 2,819,416 |
| Series 2018B |
| 07/01/2023 | 4.000% | | 750,000 | 761,412 |
| Series 2019A-1 (Mandatory Put 06/01/25) |
| 12/01/2049 | 4.000% | | 5,000,000 | 5,071,161 |
| Series 2020A (Mandatory Put 06/01/26) |
| 12/01/2050 | 4.000% | | 1,355,000 | 1,387,462 |
| Kentucky Public Energy Authority(c) |
| Revenue Bonds |
| Series 2019A-2 (Mandatory Put 06/01/25) |
0.7 x 1-month USD LIBOR + 1.120%
12/01/2049 | 1.424% | | 1,000,000 | 992,392 |
| Louisville Regional Airport Authority(d) |
| Refunding Revenue Bonds |
| Series 2014-A |
| 07/01/2022 | 5.000% | | 1,625,000 | 1,633,592 |
| Louisville/Jefferson County Metropolitan Government |
| Unrefunded Revenue Bonds |
| Norton Healthcare, Inc. |
| Series 2020 (Mandatory Put 10/01/23) |
| 10/01/2047 | 5.000% | | 1,125,000 | 1,163,324 |
| Total | 22,049,443 |
| Louisiana 1.1% |
| Lake Charles Harbor & Terminal District(a),(d) |
| Revenue Bonds |
| Big Lake Fuels LLC Project |
| Series 2021 (Mandatory Put 12/01/24) |
| 12/01/2051 | 1.000% | | 5,000,000 | 4,662,428 |
| Louisiana Housing Corp. |
| Refunding Revenue Bonds |
| Section 8 Assisted - 202 Elderly Projects |
| Series 2013 |
| 12/01/2031 | 2.500% | | 5,000 | 5,000 |
| Louisiana Local Government Environmental Facilities & Community Development Authority |
| Refunding Revenue Bonds |
| Entergy Louisiana LLC Project |
| Series 2021 |
| 06/01/2030 | 2.000% | | 1,250,000 | 1,089,968 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Louisiana Offshore Terminal Authority |
| Refunding Revenue Bonds |
| Loop LLC Project |
| Series 2019 (Mandatory Put 12/01/23) |
| 09/01/2027 | 1.650% | | 1,000,000 | 986,959 |
| Parish of St. Charles |
| Revenue Bonds |
| Valero Energy Corp. |
| Series 2010 (Mandatory Put 06/01/22) |
| 12/01/2040 | 4.000% | | 2,015,000 | 2,018,126 |
| Total | 8,762,481 |
| Maryland 1.5% |
| City of Rockville |
| Refunding Revenue Bonds |
| Ingelside at King Farm Project |
| Series 2017 |
| 11/01/2022 | 5.000% | | 500,000 | 503,178 |
| Maryland Community Development Administration |
| Refunding Revenue Bonds |
| Social Bonds |
| Series 2021C |
| 03/01/2029 | 1.550% | | 3,240,000 | 2,910,567 |
| Revenue Bonds |
| Series 2021B |
| 03/01/2027 | 0.900% | | 860,000 | 774,443 |
| Maryland Economic Development Corp.(d) |
| Revenue Bonds |
| Green Bonds - Purple Line Light Rail Project |
| Series 2022 |
| 11/12/2028 | 5.000% | | 2,000,000 | 2,098,810 |
| Maryland Health & Higher Educational Facilities Authority |
| Prerefunded 07/01/24 Revenue Bonds |
| Western Maryland Health System |
| Series 2014 |
| 07/01/2025 | 5.250% | | 2,500,000 | 2,647,024 |
| Refunding Revenue Bonds |
| University of Maryland Medical System |
| Series 2020 (Mandatory Put 07/01/25) |
| 07/01/2045 | 5.000% | | 1,500,000 | 1,590,950 |
| State of Maryland Department of Transportation(f) |
| Refunding Revenue Bonds |
| Series 2022B |
| 12/01/2027 | 5.000% | | 1,205,000 | 1,319,287 |
| Total | 11,844,259 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Massachusetts 2.4% |
| Boston Housing Authority |
| Refunding Revenue Bonds |
| Series 2020A |
| 10/01/2022 | 0.600% | | 535,000 | 531,463 |
| 04/01/2023 | 0.650% | | 590,000 | 578,358 |
| 10/01/2023 | 0.700% | | 470,000 | 453,723 |
| City of Lynn |
| Limited General Obligation Notes |
| BAN Series 2021 |
| 09/01/2022 | 1.250% | | 5,000,000 | 4,994,682 |
| Massachusetts Development Finance Agency(e) |
| Prerefunded 11/15/23 Revenue Bonds |
| North Hill Communities |
| Series 2013A |
| 11/15/2033 | 6.250% | | 2,245,000 | 2,381,971 |
| 11/15/2043 | 6.500% | | 5,000,000 | 5,319,893 |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Boston Medical Center |
| Series 2016E |
| 07/01/2022 | 5.000% | | 315,000 | 316,645 |
| Series 2019A |
| 07/01/2024 | 5.000% | | 260,000 | 271,636 |
| Massachusetts Educational Financing Authority(d) |
| Revenue Bonds |
| Education Loan |
| Series 2021 |
| 07/01/2025 | 5.000% | | 750,000 | 795,914 |
| 07/01/2026 | 5.000% | | 1,120,000 | 1,206,964 |
| Senior Revenue Bonds |
| Series 2019B |
| 07/01/2023 | 5.000% | | 500,000 | 515,552 |
| Massachusetts Housing Finance Agency |
| Revenue Bonds |
| Series 2021A-2 (HUD) |
| 06/01/2024 | 0.400% | | 500,000 | 474,174 |
| Massachusetts Port Authority(d) |
| Refunding Revenue Bonds |
| BosFuel Project |
| Series 2019A |
| 07/01/2026 | 5.000% | | 885,000 | 948,344 |
| Total | 18,789,319 |
| Michigan 2.2% |
| Great Lakes Water Authority Water Supply System |
| Refunding Revenue Bonds |
| Senior Lien |
| Subordinated Series 2018A |
| 07/01/2023 | 5.000% | | 800,000 | 825,350 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 15 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Michigan Finance Authority |
| Refunding Revenue Bonds |
| McLaren Health Care |
| Series 2021D-1 |
| 10/15/2026 | 0.900% | | 2,495,000 | 2,306,280 |
| 10/15/2027 | 1.100% | | 1,650,000 | 1,442,219 |
| Revenue Bonds |
| Variable Bronson Health Care Group |
| Series 2019 (Mandatory Put 11/15/22) |
| 11/15/2044 | 3.500% | | 1,000,000 | 1,009,029 |
| Michigan Finance Authority(d) |
| Refunding Revenue Bonds |
| Student Loan |
| Series 2014-25A |
| 11/01/2023 | 3.500% | | 3,165,000 | 3,186,810 |
| Michigan State Housing Development Authority |
| Revenue Bonds |
| Series 2021A |
| 04/01/2025 | 0.550% | | 1,000,000 | 943,068 |
| Michigan Strategic Fund(d) |
| Revenue Bonds |
| Consumers Energy Co. Project |
| Series 2021 (Mandatory Put 10/08/26) |
| 04/01/2035 | 0.875% | | 1,335,000 | 1,204,885 |
| Green Bonds |
| Series 2021 (Mandatory Put 10/01/26) |
| 10/01/2061 | 4.000% | | 2,000,000 | 2,042,139 |
| Wayne County Airport Authority(d) |
| Refunding Revenue Bonds |
| Junior Lien |
| Series 2017B |
| 12/01/2022 | 5.000% | | 1,100,000 | 1,118,336 |
| Series 2015F |
| 12/01/2027 | 5.000% | | 2,810,000 | 2,982,248 |
| Total | 17,060,364 |
| Minnesota 0.7% |
| City of Maple Grove |
| Refunding Revenue Bonds |
| Maple Grove Hospital Corp. |
| Series 2017 |
| 05/01/2022 | 4.000% | | 500,000 | 500,086 |
| City of Wayzata |
| Refunding Revenue Bonds |
| Folkstone Senior Living Co. |
| Series 2019 |
| 08/01/2022 | 3.000% | | 100,000 | 99,904 |
| 08/01/2023 | 3.000% | | 200,000 | 198,930 |
| 08/01/2024 | 3.000% | | 100,000 | 98,884 |
| 08/01/2025 | 3.000% | | 200,000 | 196,169 |
| 08/01/2026 | 3.000% | | 250,000 | 242,601 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Hastings Independent School District No. 200(g) |
| Unlimited General Obligation Bonds |
| Student Credit Enhancement Program School Building |
| Series 2018A |
| 02/01/2023 | 0.000% | | 800,000 | 789,213 |
| Minnesota Housing Finance Agency(d) |
| Refunding Revenue Bonds |
| Series 2021C (GNMA) |
| 07/01/2023 | 0.450% | | 240,000 | 234,489 |
| 01/01/2024 | 0.600% | | 380,000 | 367,279 |
| Revenue Bonds |
| Series 2020A |
| 07/01/2022 | 1.300% | | 155,000 | 154,923 |
| 07/01/2023 | 1.350% | | 200,000 | 197,297 |
| Series 2020A (GNMA) |
| 07/01/2024 | 1.450% | | 125,000 | 121,335 |
| Series 2020D (GNMA) |
| 07/01/2026 | 1.650% | | 380,000 | 354,392 |
| Series 2020H |
| 01/01/2023 | 0.550% | | 190,000 | 188,287 |
| 07/01/2023 | 0.600% | | 215,000 | 210,816 |
| 01/01/2024 | 0.650% | | 180,000 | 174,604 |
| 07/01/2024 | 0.700% | | 190,000 | 182,196 |
| 01/01/2025 | 0.800% | | 345,000 | 327,382 |
| 07/01/2025 | 0.850% | | 365,000 | 343,017 |
| Total | 4,981,804 |
| Mississippi 0.4% |
| County of Warren(d) |
| Refunding Revenue Bonds |
| International Paper Co. Project |
| Series 2020 (Mandatory Put 06/16/25) |
| 08/01/2027 | 1.600% | | 1,000,000 | 955,537 |
| Mississippi Business Finance Corp.(d) |
| Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2019 (Mandatory Put 06/03/24) |
| 03/01/2027 | 2.200% | | 1,250,000 | 1,222,519 |
| State of Mississippi Gaming Tax |
| Revenue Bonds |
| Series 2019A |
| 10/15/2024 | 5.000% | | 750,000 | 790,448 |
| Total | 2,968,504 |
| Missouri 0.1% |
| Missouri Development Finance Board |
| Refunding Revenue Bonds |
| Crackerneck Creek Project |
| Series 2021 |
| 03/01/2025 | 5.000% | | 425,000 | 441,225 |
| 03/01/2026 | 5.000% | | 300,000 | 313,633 |
| Total | 754,858 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Nebraska 0.8% |
| Central Plains Energy Project |
| Refunding Revenue Bonds |
| Project #3 |
| Series 2017A |
| 09/01/2026 | 5.000% | | 680,000 | 729,378 |
| Revenue Bonds |
| Project No. 4 |
| Series 2018 (Mandatory Put 01/01/24) |
| 03/01/2050 | 5.000% | | 1,000,000 | 1,026,143 |
| Nebraska Investment Finance Authority |
| Refunding Revenue Bonds |
| Social Bonds |
| Series 2021C (FNMA) |
| 03/01/2024 | 5.000% | | 1,520,000 | 1,585,333 |
| Revenue Bonds |
| Series 2018C |
| 09/01/2023 | 2.250% | | 1,920,000 | 1,914,241 |
| Nebraska Public Power District |
| Refunding Revenue Bonds |
| Series 2021A |
| 01/01/2023 | 5.000% | | 1,135,000 | 1,158,745 |
| Total | 6,413,840 |
| Nevada 1.3% |
| City of Carson City |
| Refunding Revenue Bonds |
| Tahoe Regional Medical Center |
| Series 2017 |
| 09/01/2022 | 5.000% | | 500,000 | 505,610 |
| City of North Las Vegas |
| Limited General Obligation Refunding Bonds |
| Building |
| Series 2018 (AGM) |
| 06/01/2023 | 5.000% | | 1,000,000 | 1,028,648 |
| City of Sparks(e) |
| Refunding Revenue Bonds |
| Sales Tax |
| Series 2019A |
| 06/15/2024 | 2.500% | | 345,000 | 338,842 |
| County of Clark Department of Aviation(d) |
| Refunding Revenue Bonds |
| Junior Subordinated Series 2021B |
| 07/01/2025 | 5.000% | | 2,590,000 | 2,736,517 |
| Las Vegas McCarran International Airport |
| Series 2017 |
| 07/01/2022 | 5.000% | | 2,240,000 | 2,252,028 |
| Subordinated Series 2017A-1 |
| 07/01/2022 | 5.000% | | 3,000,000 | 3,016,108 |
| Total | 9,877,753 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New Hampshire 0.5% |
| New Hampshire Business Finance Authority |
| Refunding Revenue Bonds |
| Springpoint Senior Living |
| Series 2021 |
| 01/01/2025 | 4.000% | | 290,000 | 295,640 |
| 01/01/2026 | 4.000% | | 265,000 | 270,879 |
| New Hampshire Business Finance Authority(c),(d) |
| Refunding Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2018 (Mandatory Put 07/01/24) |
Muni Swap Index Yield + 0.375%
10/01/2033 | 0.815% | | 2,000,000 | 1,989,969 |
| New Hampshire Business Finance Authority(d) |
| Refunding Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2019 (Mandatory Put 07/01/24) |
| 07/01/2027 | 2.150% | | 1,000,000 | 976,183 |
| Total | 3,532,671 |
| New Jersey 6.1% |
| City of Newark |
| Unlimited General Obligation Refunding Bonds |
| School Bond Reserve Fund |
| Series 2020B |
| 10/01/2022 | 5.000% | | 400,000 | 405,010 |
| Garden State Preservation Trust(g) |
| Revenue Bonds |
| Capital Appreciation |
| Series 2003B (AGM) |
| 11/01/2022 | 0.000% | | 5,000,000 | 4,947,611 |
| New Jersey Economic Development Authority(d) |
| Refunding Revenue Bonds |
| American Water Co. |
| Series 2020B (Mandatory Put 06/01/23) |
| 11/01/2034 | 1.200% | | 3,000,000 | 2,960,589 |
| New Jersey-American Water Company, Inc. Project |
| Series 2020 |
| 12/01/2025 | 0.850% | | 2,750,000 | 2,501,245 |
| New Jersey Economic Development Authority |
| Refunding Revenue Bonds |
| School Facilities Construction |
| Series 2013 |
| 03/01/2023 | 5.000% | | 2,520,000 | 2,582,262 |
| Series 2015XX |
| 06/15/2026 | 4.250% | | 2,355,000 | 2,443,503 |
| Series 2017B |
| 11/01/2022 | 5.000% | | 2,285,000 | 2,322,520 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 17 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Self-Designated Social Bonds |
| Series 2021 |
| 06/15/2022 | 5.000% | | 200,000 | 200,917 |
| 06/15/2023 | 5.000% | | 220,000 | 226,741 |
| 06/15/2024 | 5.000% | | 600,000 | 626,693 |
| New Jersey Health Care Facilities Financing Authority |
| Refunding Revenue Bonds |
| Hackensack Meridian Health |
| Series 2017 |
| 07/01/2022 | 5.000% | | 790,000 | 794,735 |
| Hospital Asset Transformation Program |
| Series 2017 |
| 10/01/2031 | 5.000% | | 2,000,000 | 2,149,929 |
| Hospital Asset Transformation Project |
| Series 2017 |
| 10/01/2026 | 5.000% | | 650,000 | 701,208 |
| New Jersey Higher Education Student Assistance Authority |
| Refunding Revenue Bonds |
| Series 2019A |
| 12/01/2029 | 2.375% | | 140,000 | 138,176 |
| New Jersey Higher Education Student Assistance Authority(d) |
| Refunding Revenue Bonds |
| Series 2020A |
| 12/01/2022 | 5.000% | | 1,000,000 | 1,018,124 |
| Revenue Bonds |
| Senior Series 2016-1A |
| 12/01/2025 | 5.000% | | 1,000,000 | 1,073,554 |
| 12/01/2026 | 5.000% | | 1,000,000 | 1,069,332 |
| Series 2015-1A |
| 12/01/2027 | 4.000% | | 2,040,000 | 2,058,678 |
| Series 2017-1A |
| 12/01/2023 | 5.000% | | 4,125,000 | 4,283,641 |
| Series 2020B |
| 12/01/2022 | 5.000% | | 1,150,000 | 1,170,843 |
| New Jersey Higher Education Student Assistance Authority(d),(f) |
| Senior Revenue Bonds |
| Series 2022B |
| 12/01/2024 | 5.000% | | 885,000 | 928,514 |
| New Jersey Housing & Mortgage Finance Agency(d) |
| Refunding Revenue Bonds |
| Series 2020F (HUD) |
| 04/01/2026 | 1.500% | | 3,220,000 | 3,002,462 |
| New Jersey Transportation Trust Fund Authority |
| Refunding Revenue Bonds |
| Series 2021A |
| 06/15/2026 | 5.000% | | 250,000 | 268,613 |
| Series 2022AA |
| 06/15/2027 | 5.000% | | 3,185,000 | 3,453,998 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Transportation System |
| Series 2018A |
| 12/15/2023 | 5.000% | | 250,000 | 259,229 |
| Revenue Bonds |
| Transportation System |
| Series 2010D |
| 12/15/2023 | 5.000% | | 2,375,000 | 2,462,679 |
| State of New Jersey |
| Unlimited General Obligation Bonds |
| COVID-19 Emergency Bonds |
| Series 2020 |
| 06/01/2023 | 4.000% | | 1,000,000 | 1,017,529 |
| Tobacco Settlement Financing Corp. |
| Refunding Revenue Bonds |
| Series 2018A |
| 06/01/2022 | 5.000% | | 2,000,000 | 2,005,390 |
| Total | 47,073,725 |
| New Mexico 0.6% |
| City of Farmington(d) |
| Refunding Revenue Bonds |
| Public Service Co. of New Mexico San Juan Project |
| Series 2020 (Mandatory Put 06/01/22) |
| 06/01/2040 | 1.200% | | 1,500,000 | 1,498,495 |
| City of Farmington |
| Refunding Revenue Bonds |
| Public Service Co. of New Mexico San Juan Project |
| Series 2020 (Mandatory Put 06/01/24) |
| 06/01/2040 | 1.150% | | 2,000,000 | 1,916,565 |
| New Mexico Hospital Equipment Loan Council |
| Revenue Bonds |
| La Vida Expansion Project |
| Series 2019 |
| 07/01/2024 | 2.375% | | 1,000,000 | 978,794 |
| Total | 4,393,854 |
| New York 12.8% |
| Chautauqua County Capital Resource Corp. |
| Refunding Revenue Bonds |
| NRG Energy Project |
| Series 2020 (Mandatory Put 04/03/23) |
| 04/01/2042 | 1.300% | | 5,000,000 | 4,917,632 |
| City of Schenectady(f) |
| Limited General Obligation Notes |
| BAN Series 2022 |
| 05/05/2023 | 3.500% | | 4,985,778 | 5,034,040 |
| County of Madison |
| Limited General Obligation Notes |
| BAN Series 2021 |
| 11/23/2022 | 1.500% | | 2,680,000 | 2,674,867 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| County of Montgomery |
| Limited General Obligation Notes |
| BAN Series 2021 |
| 08/04/2022 | 1.000% | | 5,050,000 | 5,044,012 |
| East Ramapo Central School District |
| Unlimited General Obligation Notes |
| Series 2021 |
| 05/05/2022 | 1.250% | | 600,000 | 600,057 |
| Huntington Local Development Corp. |
| Revenue Bonds |
| Fountaingate Garden Project |
| Series 2021 |
| 07/01/2025 | 3.000% | | 1,725,000 | 1,638,259 |
| Series 2021B |
| 07/01/2027 | 4.000% | | 1,000,000 | 963,757 |
| Keene Central School District |
| Unlimited General Obligation Notes |
| BAN Series 2021 |
| 11/18/2022 | 1.500% | | 7,600,000 | 7,587,296 |
| Long Island Power Authority(c) |
| Refunding Revenue Bonds |
| Series 2018C (Mandatory Put 10/01/23) |
0.7 x 1-month USD LIBOR + 0.750%
05/01/2033 | 1.068% | | 1,000,000 | 995,120 |
| Metropolitan Transportation Authority |
| Refunding Revenue Bonds |
| Transportation |
| Subordinated Series 2021 (AGM) (Mandatory Put 04/01/24) |
| 11/01/2032 | 0.737% | | 500,000 | 499,628 |
| Revenue Bonds |
| BAN Series 2019D-1 |
| 09/01/2022 | 5.000% | | 1,500,000 | 1,515,431 |
| Green Bonds |
| Subordinated Series 2019A (Mandatory Put 11/15/24) |
| 11/15/2048 | 5.000% | | 1,000,000 | 1,048,279 |
| Series 2020A-1 |
| 02/01/2023 | 5.000% | | 5,750,000 | 5,851,678 |
| New York City Housing Development Corp. |
| Revenue Bonds |
| Sustainability Bonds |
| Series 2020 (FHA) (Mandatory Put 05/01/25) |
| 11/01/2060 | 0.700% | | 4,680,000 | 4,348,575 |
| Sustainable Development |
| Series 2021 (FHA) (Mandatory Put 07/01/25) |
| 05/01/2061 | 0.600% | | 4,000,000 | 3,688,988 |
| New York Liberty Development Corp. |
| Refunding Revenue Bonds |
| Green Bonds - 4 World Trade Center Project |
| Series 2021 |
| 11/15/2031 | 1.900% | | 950,000 | 769,160 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New York State Dormitory Authority(e) |
| Refunding Revenue Bonds |
| Garnet Health Medical Center |
| Series 2017 |
| 12/01/2022 | 5.000% | | 600,000 | 610,979 |
| New York Transportation Development Corp.(d) |
| Refunding Revenue Bonds |
| American Airlines, Inc. Project |
| Series 2021 |
| 08/01/2026 | 2.250% | | 2,500,000 | 2,335,799 |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2020 |
| 12/01/2023 | 5.000% | | 3,450,000 | 3,543,774 |
| 12/01/2025 | 5.000% | | 1,400,000 | 1,465,522 |
| Revenue Bonds |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2022 |
| 12/01/2026 | 5.000% | | 2,500,000 | 2,631,022 |
| New York Transportation Development Corp. |
| Refunding Revenue Bonds |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2020 |
| 12/01/2024 | 5.000% | | 2,025,000 | 2,119,125 |
| Port Authority of New York & New Jersey(d) |
| Refunding Revenue Bonds |
| Series 2021-226 |
| 10/15/2026 | 5.000% | | 2,670,000 | 2,878,625 |
| 10/15/2027 | 5.000% | | 1,625,000 | 1,770,790 |
| 10/15/2028 | 5.000% | | 1,750,000 | 1,923,578 |
| State of New York Mortgage Agency(d) |
| Refunding Revenue Bonds |
| Series 2019-221 |
| 04/01/2024 | 1.800% | | 2,000,000 | 1,955,675 |
| Social Bonds |
| Series 2021-232 |
| 10/01/2023 | 5.000% | | 460,000 | 474,892 |
| 04/01/2024 | 5.000% | | 355,000 | 369,080 |
| 10/01/2024 | 5.000% | | 370,000 | 387,462 |
| Series 2021-235 |
| 04/01/2026 | 1.050% | | 1,275,000 | 1,171,092 |
| 10/01/2026 | 1.150% | | 1,335,000 | 1,217,348 |
| 04/01/2027 | 1.300% | | 2,705,000 | 2,490,458 |
| Revenue Bonds |
| Social Bonds |
| Series 2021-240 |
| 04/01/2024 | 0.750% | | 1,595,000 | 1,528,778 |
| 10/01/2024 | 0.850% | | 1,970,000 | 1,867,492 |
| 04/01/2025 | 0.950% | | 2,485,000 | 2,329,230 |
| 10/01/2025 | 1.050% | | 1,000,000 | 929,610 |
| 04/01/2026 | 1.200% | | 1,220,000 | 1,127,238 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 19 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Triborough Bridge & Tunnel Authority(c) |
| Refunding Revenue Bonds |
| MTA Bridges and Tunnels |
| Series 2021 (Mandatory Put 02/01/24) |
0.7 x SOFR + 0.380%
01/01/2032 | 0.568% | | 1,958,988 | 1,954,771 |
| Village of Fishkill |
| Limited General Obligation Notes |
| BAN Series 2021 |
| 10/21/2022 | 0.750% | | 6,000,000 | 5,972,293 |
| Watervliet City School District |
| Unlimited General Obligation Notes |
| BAN Series 2022 |
| 04/26/2023 | 3.250% | | 5,000,000 | 5,048,163 |
| Windsor Central School District |
| Unlimited General Obligation Notes |
| BAN Series 2021 |
| 11/01/2022 | 1.500% | | 3,950,000 | 3,944,535 |
| Total | 99,224,110 |
| North Carolina 1.2% |
| North Carolina Eastern Municipal Power Agency(i) |
| Revenue Bonds |
| Series 1993 (FGIC) |
| 01/01/2025 | 3.100% | | 600,000 | 592,687 |
| North Carolina Housing Finance Agency |
| Revenue Bonds |
| Home Ownership |
| Series 2021-47 (GNMA) |
| 01/01/2028 | 1.050% | | 1,580,000 | 1,416,819 |
| North Carolina Medical Care Commission |
| Prerefunded 09/01/23 Revenue Bonds |
| United Church Homes and Services |
| Series 2017 |
| 09/01/2041 | 5.000% | | 2,120,000 | 2,257,231 |
| Refunding Revenue Bonds |
| United Methodist Retirement Homes (The) |
| Series 2017 Escrowed to Maturity |
| 10/01/2022 | 5.000% | | 350,000 | 354,762 |
| North Carolina Turnpike Authority |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2017 |
| 01/01/2025 | 5.000% | | 1,500,000 | 1,572,015 |
| Series 2018 |
| 01/01/2025 | 5.000% | | 1,110,000 | 1,163,291 |
| Revenue Bonds |
| BAN Series 2020 |
| 02/01/2024 | 5.000% | | 1,500,000 | 1,557,051 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| North Carolina Turnpike Authority(g) |
| Refunding Revenue Bonds |
| Series 2016C |
| 07/01/2026 | 0.000% | | 780,000 | 665,818 |
| Total | 9,579,674 |
| North Dakota 0.6% |
| North Dakota Housing Finance Agency(d) |
| Refunding Revenue Bonds |
| Social Bonds |
| Series 2021C |
| 01/01/2024 | 0.700% | | 1,800,000 | 1,744,354 |
| 07/01/2024 | 0.800% | | 1,685,000 | 1,615,541 |
| 01/01/2025 | 0.950% | | 975,000 | 926,525 |
| Total | 4,286,420 |
| Ohio 1.5% |
| City of Cleveland Airport System(d) |
| Refunding Revenue Bonds |
| Series 2019B |
| 01/01/2024 | 5.000% | | 1,200,000 | 1,240,068 |
| Hillsdale Local School District |
| Certificate of Participation |
| Ohio School Facilities Project |
| Series 2020 (BAM) |
| 12/01/2022 | 4.000% | | 600,000 | 607,722 |
| 12/01/2023 | 4.000% | | 670,000 | 687,039 |
| Ohio Air Quality Development Authority(d) |
| Refunding Revenue Bonds |
| American Electric Power Co. Project |
| Series 2019 (Mandatory Put 10/01/24) |
| 07/01/2028 | 2.100% | | 6,000,000 | 5,818,591 |
| Ohio Turnpike & Infrastructure Commission(f) |
| Refunding Revenue Bonds |
| Junior Lien - Infrastructure Projects |
| Series 2022 |
| 02/15/2026 | 5.000% | | 1,250,000 | 1,332,576 |
| 02/15/2027 | 5.000% | | 1,000,000 | 1,082,239 |
| Port of Greater Cincinnati Development Authority |
| Revenue Bonds |
| Convention Center Hotel Acquisition and Demolition Project |
| Series 2020A |
| 05/01/2023 | 3.000% | | 1,000,000 | 994,323 |
| Total | 11,762,558 |
| Oklahoma 0.9% |
| Oklahoma Development Finance Authority(d) |
| Revenue Bonds |
| Gilcrease Expressway West Project |
| Series 2020 |
| 07/06/2023 | 1.625% | | 4,600,000 | 4,522,602 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Tulsa Airports Improvement Trust(d) |
| Prerefunded 06/01/24 Revenue Bonds |
| Series 2015A (BAM) |
| 06/01/2035 | 5.000% | | 1,000,000 | 1,046,518 |
| 06/01/2045 | 5.000% | | 1,280,000 | 1,339,544 |
| Total | 6,908,664 |
| Pennsylvania 6.0% |
| Allegheny County Airport Authority(d) |
| Revenue Bonds |
| Series 2021A |
| 01/01/2027 | 5.000% | | 1,155,000 | 1,240,303 |
| City of Philadelphia Airport(d) |
| Refunding Revenue Bonds |
| Private Activity |
| Series 2021 |
| 07/01/2027 | 5.000% | | 4,000,000 | 4,318,253 |
| Series 2017B |
| 07/01/2022 | 5.000% | | 500,000 | 502,562 |
| 07/01/2026 | 5.000% | | 3,360,000 | 3,595,075 |
| Series 2020C |
| 07/01/2023 | 5.000% | | 4,460,000 | 4,578,502 |
| 07/01/2025 | 5.000% | | 2,450,000 | 2,588,597 |
| Commonwealth Financing Authority |
| Revenue Bonds |
| Tobacco Master Settlement Payment |
| Series 2018 |
| 06/01/2022 | 5.000% | | 1,000,000 | 1,003,115 |
| Montgomery County Industrial Development Authority |
| Refunding Revenue Bonds |
| Meadowood Senior Living Project |
| Series 2018 |
| 12/01/2022 | 4.000% | | 250,000 | 251,703 |
| 12/01/2023 | 5.000% | | 320,000 | 330,484 |
| Northampton County General Purpose Authority(c) |
| Revenue Bonds |
| St. Luke’s University Health Network |
| Series 2018 (Mandatory Put 08/15/24) |
0.7 x 1-month USD LIBOR + 1.040%
08/15/2048 | 1.358% | | 1,000,000 | 1,002,354 |
| Pennsylvania Economic Development Financing Authority(d) |
| Revenue Bonds |
| PA Bridges Finco |
| Series 2015 |
| 12/31/2029 | 5.000% | | 5,000,000 | 5,274,433 |
| PA Bridges Finco LP |
| Series 2015 |
| 06/30/2022 | 5.000% | | 5,000,000 | 5,027,676 |
| Pennsylvania Bridges Finco LP - P3 Project |
| Series 2015 |
| 12/31/2024 | 5.000% | | 2,450,000 | 2,561,238 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Pennsylvania Housing Finance Agency(d) |
| Refunding Revenue Bonds |
| Social Bonds |
| Series 2021-134B |
| 04/01/2023 | 5.000% | | 1,000,000 | 1,023,833 |
| 04/01/2025 | 5.000% | | 435,000 | 459,903 |
| 10/01/2025 | 5.000% | | 300,000 | 319,746 |
| Pennsylvania Housing Finance Agency |
| Refunding Revenue Bonds |
| Social Bonds |
| Series 2021-136 |
| 04/01/2026 | 5.000% | | 250,000 | 271,807 |
| 04/01/2027 | 5.000% | | 750,000 | 827,333 |
| 10/01/2027 | 5.000% | | 175,000 | 194,391 |
| Revenue Bonds |
| Series 2019-129 |
| 10/01/2034 | 2.950% | | 1,500,000 | 1,357,341 |
| Series 2020-132A |
| 04/01/2026 | 1.450% | | 1,400,000 | 1,326,067 |
| 10/01/2026 | 1.500% | | 1,500,000 | 1,412,799 |
| Pennsylvania Turnpike Commission(c) |
| Refunding Revenue Bonds |
| Series 2018A-1 |
Muni Swap Index Yield + 0.600%
12/01/2023 | 1.040% | | 5,000,000 | 5,000,806 |
| Pennsylvania Turnpike Commission |
| Revenue Bonds |
| Subordinated Series 2021B |
| 12/01/2027 | 5.000% | | 700,000 | 775,063 |
| School District of Philadelphia (The) |
| Limited General Obligation Bonds |
| Series 2018A |
| 09/01/2022 | 5.000% | | 560,000 | 566,376 |
| 09/01/2023 | 5.000% | | 450,000 | 465,606 |
| Total | 46,275,366 |
| Puerto Rico 1.2% |
| Commonwealth of Puerto Rico(h) |
| Unlimited General Obligation Bonds |
| Series 2021-A1 |
| 07/01/2025 | 5.375% | | 4,000,000 | 4,132,036 |
| Puerto Rico Housing Finance Authority(h) |
| Refunding Revenue Bonds |
| Public Housing Project |
| Series 2020 |
| 12/01/2022 | 5.000% | | 2,500,000 | 2,543,854 |
| 12/01/2023 | 5.000% | | 2,500,000 | 2,596,146 |
| Total | 9,272,036 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 21 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Rhode Island 0.9% |
| Rhode Island Housing & Mortgage Finance Corp.(d) |
| Refunding Revenue Bonds |
| Homeownership Opportunity |
| Series 2016 |
| 04/01/2026 | 2.600% | | 1,235,000 | 1,211,177 |
| 10/01/2026 | 2.650% | | 1,575,000 | 1,542,539 |
| Rhode Island Student Loan Authority(d) |
| Refunding Revenue Bonds |
| Series 2018A |
| 12/01/2022 | 5.000% | | 1,300,000 | 1,323,940 |
| 12/01/2023 | 5.000% | | 750,000 | 778,844 |
| Revenue Bonds |
| Senior Program |
| Series 2019A |
| 12/01/2023 | 5.000% | | 650,000 | 674,383 |
| 12/01/2024 | 5.000% | | 875,000 | 923,235 |
| 12/01/2035 | 2.875% | | 690,000 | 675,576 |
| Total | 7,129,694 |
| South Carolina 1.4% |
| Patriots Energy Group Financing Agency |
| Revenue Bonds |
| Series 2018A (Mandatory Put 02/01/24) |
| 10/01/2048 | 4.000% | | 2,550,000 | 2,586,944 |
| Patriots Energy Group Financing Agency(c) |
| Revenue Bonds |
| Series 2018B (Mandatory Put 02/01/24) |
0.7 x 1-month USD LIBOR + 0.860%
10/01/2048 | 1.164% | | 1,000,000 | 994,135 |
| South Carolina Ports Authority(d) |
| Prerefunded 07/01/25 Revenue Bonds |
| Series 2015 |
| 07/01/2055 | 5.250% | | 5,650,000 | 6,047,030 |
| South Carolina State Housing Finance & Development Authority |
| Revenue Bonds |
| Series 2020A |
| 01/01/2024 | 1.500% | | 1,020,000 | 993,476 |
| 07/01/2024 | 1.550% | | 530,000 | 511,278 |
| Total | 11,132,863 |
| Tennessee 0.6% |
| Memphis-Shelby County Airport Authority(d) |
| Refunding Revenue Bonds |
| Series 2020B |
| 07/01/2024 | 5.000% | | 2,235,000 | 2,330,722 |
| Tennergy Corp. |
| Revenue Bonds |
| Series 2019A (Mandatory Put 10/01/24) |
| 02/01/2050 | 5.000% | | 585,000 | 609,428 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Tennessee Energy Acquisition Corp. |
| Revenue Bonds |
| Project |
| Series 2017A (Mandatory Put 05/01/23) |
| 05/01/2048 | 4.000% | | 1,000,000 | 1,008,083 |
| Series 2006C |
| 02/01/2023 | 5.000% | | 790,000 | 804,671 |
| Total | 4,752,904 |
| Texas 2.4% |
| Atascosa County Industrial Development Corp. |
| Refunding Revenue Bonds |
| San Miguel Electric Cooperative, Inc. Project |
| Series 2020 |
| 12/15/2024 | 5.000% | | 550,000 | 574,338 |
| 12/15/2026 | 5.000% | | 625,000 | 668,885 |
| Central Texas Regional Mobility Authority |
| Revenue Bonds |
| Subordinated BAN Series 2020F |
| 01/01/2025 | 5.000% | | 1,500,000 | 1,552,554 |
| Subordinated Series 2021C |
| 01/01/2027 | 5.000% | | 2,000,000 | 2,117,152 |
| City of Houston Airport System(d) |
| Refunding Revenue Bonds |
| Subordinated Series 2018C |
| 07/01/2027 | 5.000% | | 1,890,000 | 2,040,374 |
| City of San Antonio Airport System(d) |
| Refunding Revenue Bonds |
| Lien |
| Subordinated Series 2019A |
| 07/01/2024 | 5.000% | | 1,000,000 | 1,042,829 |
| Fort Bend Independent School District |
| Unlimited General Obligation Bonds |
| Series 2019A (Mandatory Put 08/01/22) |
| 08/01/2049 | 1.950% | | 830,000 | 829,938 |
| Harris County Cultural Education Facilities Finance Corp.(c) |
| Revenue Bonds |
| Natus Medical, Inc. |
| Series 2019 (Mandatory Put 12/04/24) |
Muni Swap Index Yield + 0.570%
12/01/2049 | 1.010% | | 2,000,000 | 2,006,533 |
| Irving Hospital Authority |
| Revenue Bonds |
| Baylor Scott & White Medical Center |
| Series 2017 |
| 10/15/2022 | 5.000% | | 215,000 | 218,223 |
| La Joya Independent School District |
| Unlimited General Obligation Refunding Bonds |
| Series 2013 |
| 02/15/2028 | 5.000% | | 2,270,000 | 2,531,156 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Port Beaumont Navigation District(d),(e) |
| Revenue Bonds |
| Jefferson Gulf Coast Energy Project |
| Series 2021 |
| 01/01/2026 | 1.875% | | 700,000 | 654,334 |
| Tarrant County Cultural Education Facilities Finance Corp. |
| Refunding Revenue Bonds |
| Buckner Retirement Services |
| Series 2017 |
| 11/15/2022 | 5.000% | | 1,000,000 | 1,015,611 |
| Texas Municipal Gas Acquisition & Supply Corp. III |
| Refunding Revenue Bonds |
| Senior |
| Series 2021 |
| 12/15/2022 | 5.000% | | 1,750,000 | 1,776,421 |
| 12/15/2028 | 5.000% | | 500,000 | 534,803 |
| Series 2021 |
| 12/15/2025 | 5.000% | | 1,000,000 | 1,048,940 |
| Total | 18,612,091 |
| Utah 0.5% |
| County of Utah |
| Revenue Bonds |
| IHC Health Services, Inc. |
| Series 2018B |
| 05/15/2056 | 5.000% | | 3,750,000 | 3,757,099 |
| Virginia 0.7% |
| Amelia County Industrial Development Authority(d) |
| Refunding Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2021 |
| 04/01/2027 | 1.450% | | 1,750,000 | 1,571,701 |
| Arlington County Industrial Development Authority |
| Refunding Revenue Bonds |
| Virginia Hospital Center |
| Series 2020 |
| 07/01/2023 | 5.000% | | 740,000 | 764,140 |
| Henrico County Economic Development Authority |
| Refunding Revenue Bonds |
| Westminster-Canterbury Project |
| Series 2018 |
| 10/01/2023 | 5.000% | | 575,000 | 592,369 |
| Henrico County Economic Development Authority(i) |
| Revenue Bonds |
| Registered Savrs |
| Series 1992 Escrowed to Maturity (AGM) |
| 08/23/2027 | 0.562% | | 950,000 | 947,625 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Virginia Small Business Financing Authority |
| Refunding Revenue Bonds |
| LifeSpire of Virginia |
| Series 2021 |
| 12/01/2024 | 3.000% | | 220,000 | 216,934 |
| 12/01/2025 | 3.000% | | 230,000 | 224,120 |
| 12/01/2026 | 3.000% | | 235,000 | 226,111 |
| National Senior Campuses |
| Series 2020 |
| 01/01/2023 | 5.000% | | 425,000 | 431,884 |
| 01/01/2024 | 5.000% | | 500,000 | 516,860 |
| Total | 5,491,744 |
| Washington 2.0% |
| Chelan County Public Utility District No. 1(d) |
| Refunding Revenue Bonds |
| Series 2020C |
| 07/01/2023 | 5.000% | | 990,000 | 1,020,793 |
| 07/01/2024 | 5.000% | | 2,155,000 | 2,261,161 |
| 07/01/2025 | 5.000% | | 1,170,000 | 1,248,923 |
| Port of Seattle(d) |
| Refunding Revenue Bonds |
| Intermediate Lien |
| Series 2021 |
| 08/01/2025 | 5.000% | | 2,035,000 | 2,165,720 |
| Revenue Bonds |
| Intermediate Lien |
| Series 2019 |
| 04/01/2023 | 5.000% | | 2,000,000 | 2,050,410 |
| Series 2018B |
| 05/01/2023 | 5.000% | | 2,000,000 | 2,053,465 |
| Seattle Housing Authority |
| Revenue Bonds |
| Hinoki Apartments Project |
| Series 2020A |
| 06/01/2023 | 3.000% | | 3,000,000 | 3,020,854 |
| Washington State Housing Finance Commission(d) |
| Refunding Revenue Bonds |
| Single Family Program |
| Series 2015 |
| 12/01/2022 | 2.600% | | 1,030,000 | 1,032,463 |
| Washington State Housing Finance Commission |
| Revenue Bonds |
| Transforming Age Projects |
| Series 2019 |
| 01/01/2026 | 2.375% | | 425,000 | 403,214 |
| Total | 15,257,003 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 23 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| West Virginia 1.6% |
| West Virginia Economic Development Authority |
| Refunding Revenue Bonds |
| Appalachian Power Co. Amos Project |
| Series 2019 (Mandatory Put 04/01/24) |
| 03/01/2040 | 2.550% | | 1,000,000 | 996,263 |
| West Virginia Hospital Finance Authority |
| Prerefunded 06/01/23 Revenue Bonds |
| United Health System Obligation Group |
| Series 2013 |
| 06/01/2044 | 5.500% | | 10,500,000 | 10,840,416 |
| Refunding Revenue Bonds |
| Cabell Huntington Hospital Obligation |
| Series 2018 |
| 01/01/2023 | 5.000% | | 555,000 | 565,132 |
| Total | 12,401,811 |
| Wisconsin 2.1% |
| City of Milwaukee |
| Unlimited General Obligation Refunding Bonds |
| Promissory Notes |
| Series 2020N-4 |
| 04/01/2024 | 5.000% | | 1,500,000 | 1,566,049 |
| Public Finance Authority |
| Prerefunded 10/01/22 Revenue Bonds |
| Voyager Foundation, Inc. Project |
| Series 2012A |
| 10/01/2042 | 6.200% | | 1,715,000 | 1,747,368 |
| Refunding Revenue Bonds |
| Retirement Housing Foundation |
| Series 2017 |
| 11/15/2022 | 5.000% | | 500,000 | 507,886 |
| Public Finance Authority(d) |
| Refunding Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2016 |
| 05/01/2027 | 2.875% | | 5,350,000 | 5,129,143 |
| Wisconsin Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Marshfield Clinic Health System, Inc. |
| Series 2020 (Mandatory Put 02/15/25) |
| 02/15/2052 | 5.000% | | 3,500,000 | 3,685,136 |
| Revenue Bonds |
| Aspirus, Inc. Obligation Group |
| Series 2017 |
| 08/15/2022 | 5.000% | | 200,000 | 202,022 |
| 08/15/2023 | 5.000% | | 205,000 | 212,333 |
| Wisconsin Housing & Economic Development Authority(d) |
| Refunding Revenue Bonds |
| Series 2017B (FHA) |
| 09/01/2022 | 2.150% | | 870,000 | 870,670 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Series 2018A |
| 09/01/2022 | 2.600% | | 710,000 | 711,212 |
| Wisconsin Housing & Economic Development Authority |
| Revenue Bonds |
| Social Bonds |
| Series 2021 |
| 03/01/2024 | 0.450% | | 500,000 | 480,710 |
| Series 2021C (GNMA) |
| 03/01/2025 | 0.700% | | 425,000 | 402,597 |
| 03/01/2028 | 1.400% | | 700,000 | 634,406 |
| Total | 16,149,532 |
| Wyoming 0.1% |
| Wyoming Community Development Authority(d) |
| Refunding Revenue Bonds |
| Series 2020-3 |
| 06/01/2023 | 5.000% | | 955,000 | 980,811 |
Total Municipal Bonds
(Cost $694,306,638) | 669,941,390 |
|
| Municipal Short Term 11.2% |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| California 0.8% |
| California Municipal Finance Authority(d) |
| Refunding Revenue Bonds |
| Republic Services, Inc. Project |
| Series 2021 (Mandatory Put 04/01/22) |
| 07/01/2041 | 1.880% | | 6,000,000 | 5,992,868 |
| Kentucky 0.4% |
| Kentucky Economic Development Finance Authority(d) |
| Refunding Revenue Bonds |
| Republic Services |
| Series 2016A (Mandatory Put 06/01/22) |
| 04/01/2031 | 1.050% | | 3,200,000 | 3,198,029 |
| Massachusetts 4.8% |
| Brockton Area Transit Authority |
| Revenue Notes |
| RAN Series 2021 |
| 07/29/2022 | 1.500% | | 6,300,000 | 6,295,904 |
| Pioneer Valley Transit Authority |
| Revenue Notes |
| RAN Series 2021 |
| 07/15/2022 | 1.460% | | 5,000,000 | 5,000,267 |
| Southeastern Massachusetts Regional 911 District |
| Limited General Obligation Notes |
| Series 2021 |
| 10/13/2022 | 1.670% | | 5,740,093 | 5,728,910 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Short Term (continued) |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Southeastern Regional Transit Authority |
| Revenue Notes |
| Series 2021 |
| 08/19/2022 | 1.510% | | 6,000,000 | 5,990,440 |
| Town of Orange |
| Limited General Obligation Notes |
| Series 2021 |
| 08/25/2022 | 1.560% | | 8,895,000 | 8,878,727 |
| Worcester Regional Transit Authority |
| Revenue Notes |
| RAN Series 2021 |
| 06/24/2022 | 1.650% | | 5,000,000 | 4,996,798 |
| Total | 36,891,046 |
| New York 4.7% |
| Board of Cooperative Educational Services for the Sole Supervisory District |
| Revenue Notes |
| RAN Series 2021 |
| 06/17/2022 | 1.390% | | 7,000,000 | 7,000,828 |
| City of Long Beach |
| Limited General Obligation Notes |
| BAN Series 2022A |
| 02/17/2023 | 3.040% | | 5,000,000 | 4,959,019 |
| County of Chemung |
| Limited General Obligation Notes |
| Series 2021 |
| 12/29/2022 | 1.920% | | 4,275,000 | 4,263,010 |
| Henrietta Fire District |
| Limited General Obligation Notes |
| Series 2022 |
| 08/10/2022 | 1.550% | | 3,628,688 | 3,633,149 |
| Orange & Ulster Counties Board of Cooperative Educational Services Sole Supervisory District |
| Revenue Notes |
| Series 2021 |
| 07/22/2022 | 1.460% | | 5,000,000 | 4,994,572 |
| Poughkeepsie School District |
| Unlimited General Obligation Notes |
| Series 2021 |
| 06/28/2022 | 1.410% | | 6,000,000 | 5,995,931 |
| Town of Oyster Bay |
| Limited General Obligation Notes |
| Series 2022 |
| 03/09/2023 | 2.180% | | 5,000,000 | 5,034,456 |
| Total | 35,880,965 |
| Municipal Short Term (continued) |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Oregon 0.1% |
| County of Gilliam(a),(d) |
| Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2019A (Mandatory Put 05/02/22) |
| 08/01/2025 | 2.390% | | 1,000,000 | 1,000,037 |
| Texas 0.4% |
| Mission Economic Development Corp.(d) |
| Refunding Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2020 (Mandatory Put 06/01/22) |
| 07/01/2040 | 1.000% | | 3,300,000 | 3,297,890 |
| Virginia 0.0% |
| Gloucester County Economic Development Authority(a),(d) |
| Revenue Bonds |
| Waste Management Services |
| Series 2019 (Mandatory Put 05/02/22) |
| 09/01/2038 | 2.390% | | 300,000 | 300,000 |
Total Municipal Short Term
(Cost $86,930,134) | 86,560,835 |
| Money Market Funds 0.0% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(j) | 88,029 | 88,020 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(j) | 102,238 | 102,238 |
Total Money Market Funds
(Cost $190,258) | 190,258 |
Total Investments in Securities
(Cost $797,927,030) | 773,192,483 |
| Other Assets & Liabilities, Net | | (275,670) |
| Net Assets | $772,916,813 |
At April 30, 2022, securities and/or cash totaling $360,000 were pledged as collateral.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 25 |
Portfolio of Investments (continued)
April 30, 2022
Investments in derivatives
| Short futures contracts |
| Description | Number of
contracts | Expiration
date | Trading
currency | Notional
amount | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
| U.S. Treasury 5-Year Note | (300) | 06/2022 | USD | (33,801,563) | 539,694 | — |
Notes to Portfolio of Investments
| (a) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 2022. |
| (b) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (c) | Variable rate security. The interest rate shown was the current rate as of April 30, 2022. |
| (d) | Income from this security may be subject to alternative minimum tax. |
| (e) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $17,743,720, which represents 2.30% of total net assets. |
| (f) | Represents a security purchased on a when-issued basis. |
| (g) | Zero coupon bond. |
| (h) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2022, the total value of these securities amounted to $12,273,201, which represents 1.59% of total net assets. |
| (i) | Represents a variable rate security where the coupon adjusts periodically through an auction process. |
| (j) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| FGIC | Financial Guaranty Insurance Corporation |
| FHA | Federal Housing Authority |
| FNMA | Federal National Mortgage Association |
| GNMA | Government National Mortgage Association |
| HUD | Department of Housing and Urban Development |
| LIBOR | London Interbank Offered Rate |
| NPFGC | National Public Finance Guarantee Corporation |
| RAN | Revenue Anticipation Note |
| SOFR | Secured Overnight Financing Rate |
Currency Legend
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 26 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
Fair value measurements (continued)
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
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 April 30, 2022:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Fixed Income Funds | — | 5,000,000 | — | 5,000,000 |
| Floating Rate Notes | — | 11,500,000 | — | 11,500,000 |
| Municipal Bonds | — | 669,941,390 | — | 669,941,390 |
| Municipal Short Term | — | 86,560,835 | — | 86,560,835 |
| Money Market Funds | 190,258 | — | — | 190,258 |
| Total Investments in Securities | 190,258 | 773,002,225 | — | 773,192,483 |
| Investments in Derivatives | | | | |
| Asset | | | | |
| Futures Contracts | 539,694 | — | — | 539,694 |
| Total | 729,952 | 773,002,225 | — | 773,732,177 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
Derivative instruments are valued at unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 27 |
Statement of Assets and Liabilities
April 30, 2022
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $797,927,030) | $773,192,483 |
| Cash | 38,325 |
| Margin deposits on: | |
| Futures contracts | 360,000 |
| Receivable for: | |
| Investments sold | 14,334,541 |
| Investments sold on a delayed delivery basis | 1,088,990 |
| Capital shares sold | 1,095,744 |
| Interest | 7,888,988 |
| Variation margin for futures contracts | 51,563 |
| Expense reimbursement due from Investment Manager | 3,479 |
| Prepaid expenses | 8,913 |
| Total assets | 798,063,026 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 4,654,967 |
| Investments purchased on a delayed delivery basis | 18,065,996 |
| Capital shares purchased | 1,480,866 |
| Distributions to shareholders | 672,714 |
| Management services fees | 9,117 |
| Distribution and/or service fees | 583 |
| Transfer agent fees | 32,088 |
| Compensation of board members | 195,495 |
| Other expenses | 34,387 |
| Total liabilities | 25,146,213 |
| Net assets applicable to outstanding capital stock | $772,916,813 |
| Represented by | |
| Paid in capital | 802,905,254 |
| Total distributable earnings (loss) | (29,988,441) |
| Total - representing net assets applicable to outstanding capital stock | $772,916,813 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 28 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Statement of Assets and Liabilities (continued)
April 30, 2022
| Class A | |
| Net assets | $79,025,643 |
| Shares outstanding | 7,891,891 |
| Net asset value per share | $10.01 |
| Maximum sales charge | 1.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.11 |
| Advisor Class | |
| Net assets | $76,763,760 |
| Shares outstanding | 7,658,599 |
| Net asset value per share | $10.02 |
| Class C | |
| Net assets | $1,608,374 |
| Shares outstanding | 160,934 |
| Net asset value per share | $9.99 |
| Institutional Class | |
| Net assets | $107,619,831 |
| Shares outstanding | 10,747,689 |
| Net asset value per share | $10.01 |
| Institutional 2 Class | |
| Net assets | $127,701,803 |
| Shares outstanding | 12,761,507 |
| Net asset value per share | $10.01 |
| Institutional 3 Class | |
| Net assets | $380,197,402 |
| Shares outstanding | 37,984,768 |
| Net asset value per share | $10.01 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 29 |
Statement of Operations
Year Ended April 30, 2022
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $7,462 |
| Interest | 10,027,283 |
| Total income | 10,034,745 |
| Expenses: | |
| Management services fees | 3,328,375 |
| Distribution and/or service fees | |
| Class A | 189,619 |
| Class C | 15,999 |
| Transfer agent fees | |
| Class A | 74,407 |
| Advisor Class | 44,059 |
| Class C | 1,576 |
| Institutional Class | 103,348 |
| Institutional 2 Class | 61,955 |
| Institutional 3 Class | 23,773 |
| Compensation of board members | 38,595 |
| Custodian fees | 18,411 |
| Printing and postage fees | 25,775 |
| Registration fees | 103,188 |
| Audit fees | 39,690 |
| Legal fees | 19,429 |
| Compensation of chief compliance officer | 128 |
| Other | 18,994 |
| Total expenses | 4,107,321 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (1,159,421) |
| Fees waived by transfer agent | |
| Institutional 2 Class | (1,429) |
| Institutional 3 Class | (23,773) |
| Expense reduction | (20) |
| Total net expenses | 2,922,678 |
| Net investment income | 7,112,067 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (1,718,130) |
| Futures contracts | 1,309,354 |
| Net realized loss | (408,776) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (36,190,239) |
| Futures contracts | 559,488 |
| Net change in unrealized appreciation (depreciation) | (35,630,751) |
| Net realized and unrealized loss | (36,039,527) |
| Net decrease in net assets resulting from operations | $(28,927,460) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 30 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Statement of Changes in Net Assets
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations | | |
| Net investment income | $7,112,067 | $9,548,681 |
| Net realized gain (loss) | (408,776) | 1,522,327 |
| Net change in unrealized appreciation (depreciation) | (35,630,751) | 13,208,854 |
| Net increase (decrease) in net assets resulting from operations | (28,927,460) | 24,279,862 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (487,335) | (678,849) |
| Advisor Class | (376,044) | (20,767) |
| Class C | (295) | (7,089) |
| Institutional Class | (939,542) | (1,228,303) |
| Institutional 2 Class | (1,125,097) | (1,047,089) |
| Institutional 3 Class | (4,250,161) | (6,511,584) |
| Total distributions to shareholders | (7,178,474) | (9,493,681) |
| Increase (decrease) in net assets from capital stock activity | 103,384,218 | (45,626,148) |
| Total increase (decrease) in net assets | 67,278,284 | (30,839,967) |
| Net assets at beginning of year | 705,638,529 | 736,478,496 |
| Net assets at end of year | $772,916,813 | $705,638,529 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 31 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | April 30, 2022 | April 30, 2021 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 4,360,164 | 45,064,367 | 2,612,673 | 27,249,549 |
| Fund reorganization | 329,765 | 3,440,076 | — | — |
| Distributions reinvested | 41,180 | 425,903 | 55,153 | 575,463 |
| Redemptions | (3,750,812) | (38,771,216) | (1,799,873) | (18,778,018) |
| Net increase | 980,297 | 10,159,130 | 867,953 | 9,046,994 |
| Advisor Class | | | | |
| Subscriptions | 1,941,396 | 20,106,687 | 119,565 | 1,246,949 |
| Fund reorganization | 9,031,436 | 94,310,363 | — | — |
| Distributions reinvested | 14,451 | 148,451 | 1,089 | 11,383 |
| Redemptions | (3,509,949) | (35,966,043) | (104,979) | (1,089,868) |
| Net increase | 7,477,334 | 78,599,458 | 15,675 | 168,464 |
| Class C | | | | |
| Subscriptions | 50,002 | 515,694 | 36,887 | 385,098 |
| Distributions reinvested | 28 | 291 | 610 | 6,352 |
| Redemptions | (58,838) | (606,710) | (205,718) | (2,144,595) |
| Net decrease | (8,808) | (90,725) | (168,221) | (1,753,145) |
| Institutional Class | | | | |
| Subscriptions | 6,967,017 | 71,906,809 | 6,410,387 | 66,896,172 |
| Distributions reinvested | 80,211 | 829,511 | 100,600 | 1,049,830 |
| Redemptions | (5,353,606) | (54,974,865) | (5,926,639) | (61,906,942) |
| Net increase | 1,693,622 | 17,761,455 | 584,348 | 6,039,060 |
| Institutional 2 Class | | | | |
| Subscriptions | 7,090,797 | 73,918,172 | 2,177,094 | 22,699,582 |
| Distributions reinvested | 92,765 | 958,128 | 82,771 | 863,378 |
| Redemptions | (2,655,624) | (27,372,308) | (988,288) | (10,315,639) |
| Net increase | 4,527,938 | 47,503,992 | 1,271,577 | 13,247,321 |
| Institutional 3 Class | | | | |
| Subscriptions | 5,335,308 | 55,479,193 | 2,192,795 | 22,911,309 |
| Distributions reinvested | 6,526 | 67,287 | 5,633 | 58,755 |
| Redemptions | (10,258,937) | (106,095,572) | (9,146,804) | (95,344,906) |
| Net decrease | (4,917,103) | (50,549,092) | (6,948,376) | (72,374,842) |
| Total net increase (decrease) | 9,753,280 | 103,384,218 | (4,377,044) | (45,626,148) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 32 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
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Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 33 |
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 payment of sales charges, if any. 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 asset value,
beginning of
period | Net
investment
income
(loss) | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Class A |
| Year Ended 4/30/2022 | $10.46 | 0.07 | (0.45) | (0.38) | (0.07) | (0.07) |
| Year Ended 4/30/2021 | $10.26 | 0.11 | 0.20 | 0.31 | (0.11) | (0.11) |
| Year Ended 4/30/2020 | $10.35 | 0.15 | (0.08) | 0.07 | (0.16) | (0.16) |
| Year Ended 4/30/2019 | $10.26 | 0.15 | 0.09 | 0.24 | (0.15) | (0.15) |
| Year Ended 4/30/2018 | $10.36 | 0.11 | (0.09) | 0.02 | (0.12) | (0.12) |
| Advisor Class |
| Year Ended 4/30/2022 | $10.48 | 0.10 | (0.47) | (0.37) | (0.09) | (0.09) |
| Year Ended 4/30/2021 | $10.27 | 0.13 | 0.21 | 0.34 | (0.13) | (0.13) |
| Year Ended 4/30/2020 | $10.36 | 0.18 | (0.09) | 0.09 | (0.18) | (0.18) |
| Year Ended 4/30/2019 | $10.27 | 0.18 | 0.09 | 0.27 | (0.18) | (0.18) |
| Year Ended 4/30/2018 | $10.36 | 0.14 | (0.09) | 0.05 | (0.14) | (0.14) |
| Class C |
| Year Ended 4/30/2022 | $10.46 | (0.01) | (0.46) | (0.47) | (0.00)(e) | (0.00)(e) |
| Year Ended 4/30/2021 | $10.25 | 0.03 | 0.21 | 0.24 | (0.03) | (0.03) |
| Year Ended 4/30/2020 | $10.34 | 0.08 | (0.09) | (0.01) | (0.08) | (0.08) |
| Year Ended 4/30/2019 | $10.25 | 0.07 | 0.10 | 0.17 | (0.08) | (0.08) |
| Year Ended 4/30/2018 | $10.35 | 0.03 | (0.09) | (0.06) | (0.04) | (0.04) |
| Institutional Class |
| Year Ended 4/30/2022 | $10.46 | 0.09 | (0.45) | (0.36) | (0.09) | (0.09) |
| Year Ended 4/30/2021 | $10.26 | 0.13 | 0.20 | 0.33 | (0.13) | (0.13) |
| Year Ended 4/30/2020 | $10.35 | 0.18 | (0.09) | 0.09 | (0.18) | (0.18) |
| Year Ended 4/30/2019 | $10.26 | 0.18 | 0.09 | 0.27 | (0.18) | (0.18) |
| Year Ended 4/30/2018 | $10.36 | 0.13 | (0.09) | 0.04 | (0.14) | (0.14) |
| Institutional 2 Class |
| Year Ended 4/30/2022 | $10.46 | 0.09 | (0.44) | (0.35) | (0.10) | (0.10) |
| Year Ended 4/30/2021 | $10.25 | 0.14 | 0.21 | 0.35 | (0.14) | (0.14) |
| Year Ended 4/30/2020 | $10.35 | 0.18 | (0.09) | 0.09 | (0.19) | (0.19) |
| Year Ended 4/30/2019 | $10.26 | 0.18 | 0.09 | 0.27 | (0.18) | (0.18) |
| Year Ended 4/30/2018 | $10.35 | 0.15 | (0.09) | 0.06 | (0.15) | (0.15) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 34 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income (loss)
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 4/30/2022 | $10.01 | (3.68%) | 0.81% | 0.66%(c) | 0.63% | 69% | $79,026 |
| Year Ended 4/30/2021 | $10.46 | 2.99% | 0.81% | 0.66%(c) | 1.02% | 46% | $72,327 |
| Year Ended 4/30/2020 | $10.26 | 0.63% | 0.80%(d) | 0.66%(c),(d) | 1.48% | 58% | $61,987 |
| Year Ended 4/30/2019 | $10.35 | 2.39% | 0.81% | 0.66%(c) | 1.44% | 55% | $68,355 |
| Year Ended 4/30/2018 | $10.26 | 0.16% | 0.81% | 0.67%(c) | 1.08% | 36% | $83,580 |
| Advisor Class |
| Year Ended 4/30/2022 | $10.02 | (3.53%) | 0.57% | 0.41%(c) | 0.93% | 69% | $76,764 |
| Year Ended 4/30/2021 | $10.48 | 3.34% | 0.56% | 0.41%(c) | 1.26% | 46% | $1,899 |
| Year Ended 4/30/2020 | $10.27 | 0.89% | 0.55%(d) | 0.41%(c),(d) | 1.72% | 58% | $1,701 |
| Year Ended 4/30/2019 | $10.36 | 2.64% | 0.56% | 0.41%(c) | 1.74% | 55% | $2,027 |
| Year Ended 4/30/2018 | $10.27 | 0.51% | 0.56% | 0.42%(c) | 1.33% | 36% | $607 |
| Class C |
| Year Ended 4/30/2022 | $9.99 | (4.48%) | 1.56% | 1.41%(c) | (0.11%) | 69% | $1,608 |
| Year Ended 4/30/2021 | $10.46 | 2.32% | 1.56% | 1.41%(c) | 0.30% | 46% | $1,775 |
| Year Ended 4/30/2020 | $10.25 | (0.12%) | 1.55%(d) | 1.41%(c),(d) | 0.74% | 58% | $3,464 |
| Year Ended 4/30/2019 | $10.34 | 1.62% | 1.55% | 1.41%(c) | 0.69% | 55% | $6,322 |
| Year Ended 4/30/2018 | $10.25 | (0.59%) | 1.56% | 1.42%(c) | 0.33% | 36% | $10,327 |
| Institutional Class |
| Year Ended 4/30/2022 | $10.01 | (3.44%) | 0.56% | 0.41%(c) | 0.88% | 69% | $107,620 |
| Year Ended 4/30/2021 | $10.46 | 3.25% | 0.56% | 0.41%(c) | 1.27% | 46% | $94,743 |
| Year Ended 4/30/2020 | $10.26 | 0.89% | 0.55%(d) | 0.41%(c),(d) | 1.72% | 58% | $86,870 |
| Year Ended 4/30/2019 | $10.35 | 2.64% | 0.56% | 0.41%(c) | 1.70% | 55% | $104,300 |
| Year Ended 4/30/2018 | $10.26 | 0.40% | 0.58% | 0.44%(c) | 1.21% | 36% | $112,699 |
| Institutional 2 Class |
| Year Ended 4/30/2022 | $10.01 | (3.40%) | 0.51% | 0.37% | 0.92% | 69% | $127,702 |
| Year Ended 4/30/2021 | $10.46 | 3.39% | 0.53% | 0.37% | 1.31% | 46% | $86,120 |
| Year Ended 4/30/2020 | $10.25 | 0.83% | 0.51%(d) | 0.37%(d) | 1.77% | 58% | $71,372 |
| Year Ended 4/30/2019 | $10.35 | 2.69% | 0.51% | 0.36% | 1.76% | 55% | $27,329 |
| Year Ended 4/30/2018 | $10.26 | 0.55% | 0.51% | 0.37% | 1.41% | 36% | $18,813 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 35 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income
(loss) | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $10.46 | 0.10 | (0.45) | (0.35) | (0.10) | (0.10) |
| Year Ended 4/30/2021 | $10.25 | 0.14 | 0.21 | 0.35 | (0.14) | (0.14) |
| Year Ended 4/30/2020 | $10.35 | 0.19 | (0.10) | 0.09 | (0.19) | (0.19) |
| Year Ended 4/30/2019 | $10.25 | 0.18 | 0.11 | 0.29 | (0.19) | (0.19) |
| Year Ended 4/30/2018 | $10.36 | 0.15 | (0.11) | 0.04 | (0.15) | (0.15) |
| 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) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (d) | Ratios include interfund lending expense which is less than 0.01%. |
| (e) | Rounds to zero. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 36 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income (loss)
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $10.01 | (3.36%) | 0.47% | 0.32% | 0.97% | 69% | $380,197 |
| Year Ended 4/30/2021 | $10.46 | 3.44% | 0.48% | 0.32% | 1.37% | 46% | $448,774 |
| Year Ended 4/30/2020 | $10.25 | 0.88% | 0.46%(d) | 0.32%(d) | 1.82% | 58% | $511,085 |
| Year Ended 4/30/2019 | $10.35 | 2.84% | 0.46% | 0.32% | 1.78% | 55% | $670,432 |
| Year Ended 4/30/2018 | $10.25 | 0.41% | 0.46% | 0.33% | 1.50% | 36% | $911,594 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 37 |
Notes to Financial Statements
April 30, 2022
Note 1. Organization
Columbia Short Term Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust (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 Delaware statutory trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. 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. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
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 price 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 ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
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.
Futures and options on futures contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
| 38 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
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.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, failure of the clearinghouse or CCP may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 39 |
Notes to Financial Statements (continued)
April 30, 2022
Collateral (margin) requirements differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense paid by the Fund is shown in the Statement of Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| 40 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
The following table is a summary of the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at April 30, 2022:
| | Asset derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 539,694* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the year ended April 30, 2022:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 1,309,354 |
| |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 559,488 |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended April 30, 2022:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — short | 39,390,460 |
| * | Based on the ending quarterly outstanding amounts for the year ended April 30, 2022. |
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
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
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Corporate actions and dividend income are recorded on the ex-dividend date.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 41 |
Notes to Financial Statements (continued)
April 30, 2022
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.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
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
| 42 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.43% to 0.28% as the Fund’s net assets increase. The effective management services fee rate for the year ended April 30, 2022 was 0.43% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, effective through August 31, 2024, Institutional 2 Class shares are subject to a contractual transfer agency fee annual limitation of not more than 0.05% and Institutional 3 Class shares are subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the average daily net assets attributable to each share class.
For the year ended April 30, 2022, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.10 |
| Advisor Class | 0.11 |
| Class C | 0.10 |
| Institutional Class | 0.10 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 43 |
Notes to Financial Statements (continued)
April 30, 2022
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended April 30, 2022, these minimum account balance fees reduced total expenses of the Fund by $20.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A shares of the Fund. Also under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class C shares of the Fund and a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended April 30, 2022, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 1.00 | 0.50(a) | 121,229 |
| Class C | — | 1.00(b) | 250 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, including indirect expenses of the underlying funds, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
August 31, 2024 |
| Class A | 0.66% |
| Advisor Class | 0.41 |
| Class C | 1.41 |
| Institutional Class | 0.41 |
| Institutional 2 Class | 0.37 |
| Institutional 3 Class | 0.32 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and
| 44 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Prior to September 1, 2021, expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds) were excluded from the waivers/and or expense reimbursement arrangements. Reflected in the contractual cap commitment, effective through August 31, 2024, is the Transfer Agent’s contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.05% for Institutional 2 Class and 0.00% for Institutional 3 Class of the average daily net assets attributable to each share class, unless sooner terminated at the sole discretion of the Board of Trustees. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2022, these differences were primarily due to differing treatment for trustees’ deferred compensation, tax straddles, distributions, capital loss carryforward and re-characterization of distributions for investments. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Undistributed net
investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| (1) | (49,467) | 49,468 |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended April 30, 2022 | Year Ended April 30, 2021 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 96,825 | 7,081,649 | — | 7,178,474 | 5,908 | 9,487,773 | — | 9,493,681 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At April 30, 2022, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 961,281 | — | (5,851,962) | (24,230,640) |
At April 30, 2022, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 797,962,817 | 362,750 | (24,593,390) | (24,230,640) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 45 |
Notes to Financial Statements (continued)
April 30, 2022
The following capital loss carryforwards, determined at April 30, 2022, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended April 30, 2022, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (4,735,491) | (1,116,471) | (5,851,962) | — |
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.
The Fund acquired $49,468 of capital loss carryforward in connection with the BMO Short Tax-Free Fund (the Acquired Fund) reorganization (Note 8). In addition to the acquired capital loss carryforward, the Fund also acquired unrealized capital gains as a result of the reorganization. The yearly utilization of the acquired capital loss carryforward may be limited by the Internal Revenue Code.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $481,731,438 and $475,855,456, respectively, for the year ended April 30, 2022. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended April 30, 2022.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
| 46 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
The Fund had no borrowings during the year ended April 30, 2022.
Note 8. Fund reorganization
At the close of business on December 10, 2021, the Fund acquired the assets and assumed the identified liabilities of BMO Short Tax-Free Fund (the Acquired Fund), a series of BMO Funds, Inc. The reorganization was completed after shareholders of the Acquired Fund approved a plan of reorganization at a shareholder meeting held on November 23, 2021. The purpose of the reorganization was to combine two funds with comparable investment objectives and strategies.
The aggregate net assets of the Fund immediately before the reorganization were $775,720,860 and the combined net assets immediately after the reorganization were $873,471,299.
The reorganization was accomplished by a tax-free exchange of 9,525,261 shares of the Acquired Fund valued at $97,750,439 (including $1,544,020 of unrealized appreciation/(depreciation)).
In exchange for the Acquired Fund’s shares, the Fund issued the following number of shares:
| | Shares |
| Class A | 329,765 |
| Advisor Class | 9,031,436 |
For financial reporting purposes, net assets received and shares issued by the Fund were recorded at fair value; however, the Acquired Fund’s cost of investments was carried forward.
The Fund’s financial statements reflect both the operations of the Fund for the period prior to the reorganization and the combined Fund for the period subsequent to the reorganization. Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the combined Fund’s Statement of Operations since the reorganization was completed.
Assuming the reorganization had been completed on May 1, 2021, the Fund’s pro-forma results of operations for the year ended April 30, 2022 would have been approximately:
| | ($) |
| Net investment income | 7,995,000 |
| Net realized loss | (310,000) |
| Net change in unrealized appreciation/(depreciation) | (36,561,000) |
| Net decrease in net assets from operations | (28,876,000) |
Note 9. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 47 |
Notes to Financial Statements (continued)
April 30, 2022
held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
The pandemic caused by coronavirus disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such events could have a significant adverse impact on the value and risk profile of the Fund.
| 48 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Securities issued by a particular state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At April 30, 2022, one unaffiliated shareholder of record owned 50.6% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 10. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 49 |
Notes to Financial Statements (continued)
April 30, 2022
perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 50 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust and Shareholders of Columbia Short Term Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Short Term Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust, referred to hereafter as the "Fund") as of April 30, 2022, the related statement of operations for the year ended April 30, 2022, the statement of changes in net assets for each of the two years in the period ended April 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended April 30, 2022 and the financial highlights for each of the five years in the period ended April 30, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
June 23, 2022
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 51 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended April 30, 2022. Shareholders will be notified in early 2023 of the amounts for use in preparing 2022 income tax returns.
Exempt-
interest
dividends | |
| 98.65% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 176 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 52 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney, specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 176 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 176 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee) since 2019; Director, Apollo Commercial Real Estate Finance, Inc. since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 174 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 174 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 53 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 174 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 176 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2020; former Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 176 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 176 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 174 | None |
| 54 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 174 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 176 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 176 | Director, Blue Cross Blue Shield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation since 1998 |
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 55 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2021; Advisor, Paradigm Asset Management, November 2016-December 2021; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 174 | Former Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2012-2019; Director, Chair of Audit Committee, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2019; Independent Director, Investment Committee and Valuation Committee, Sarona Asset Management, since 2019 |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 176 | Former Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as Directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC since April 2015; President and Principal Executive Officer of the Columbia Funds since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 176 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since January 2022 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 56 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and Head of Global Operations & Investor Services, Columbia Management Investment Advisers, LLC, since March 2022 (previously Vice President, Head of North American Operations, and Co-Head of Global Operations, June 2019 to February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001-January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds, 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia Short Term Municipal Bond Fund | Annual Report 2022
| 57 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021, through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
| 58 | Columbia Short Term Municipal Bond Fund | Annual Report 2022 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Short Term Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
April 30, 2022
Columbia California Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia California Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which 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; visiting columbiathreadneedleus.com/investor/; 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 filings are 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
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
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
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks current income exempt from U.S. federal income tax and California individual income tax, consistent with moderate fluctuation of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2012
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the Fund.
| Average annual total returns (%) (for the period ended April 30, 2022) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 09/09/02 | -6.96 | 1.11 | 1.88 |
| | Including sales charges | | -9.74 | 0.50 | 1.57 |
| Advisor Class* | 03/19/13 | -6.65 | 1.36 | 2.14 |
| Class C | Excluding sales charges | 09/11/02 | -7.65 | 0.35 | 1.11 |
| | Including sales charges | | -8.57 | 0.35 | 1.11 |
| Institutional Class | 08/19/02 | -6.74 | 1.36 | 2.13 |
| Institutional 2 Class* | 11/08/12 | -6.72 | 1.42 | 2.20 |
| Institutional 3 Class* | 03/01/17 | -6.66 | 1.47 | 2.18 |
| Bloomberg California 3-15 Year Blend Municipal Bond Index | | -7.48 | 1.41 | 2.24 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | -7.28 | 1.62 | 2.21 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg California 3-15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of investment-grade bonds issued from the state of California and its municipalities. Effective August 24, 2021, the Bloomberg Barclays California 3-15 Year Blend Municipal Bond Index was re-branded as the Bloomberg California 3-15 Year Blend Municipal Bond Index.
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
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.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (April 30, 2012 — April 30, 2022)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia California Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at April 30, 2022) |
| AAA rating | 2.6 |
| AA rating | 51.1 |
| A rating | 30.4 |
| BBB rating | 11.6 |
| BB rating | 1.9 |
| Not rated | 2.4 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended April 30, 2022, Class A shares of Columbia California Intermediate Municipal Bond Fund returned -6.96% excluding sales charges. Institutional Class shares of the Fund returned -6.74%. The Fund outperformed its benchmark, the Bloomberg California 3-15 Year Blend Municipal Bond Index, which returned -7.48%, as well as the broader intermediate municipal bond market, measured by the Bloomberg 3-15 Year Blend Municipal Bond Index, which returned -7.28% for the same time period.
Market overview
As the annual period began in May 2021, municipal bonds were one of the few bright spots for U.S. fixed income. Upward pressure on U.S. Treasury yields, driven by fears of inflation, pressured most other sectors. However, municipal bond performance was supported by record inflows, improving credit fundamentals and substantial fiscal stimulus from the federal government. Notably, tax revenue performance was rather strong, with projected deficits turning into actual surpluses for many state and local governments. Interest rate volatility led most fixed-income sectors to negative returns for the third quarter of 2021, but municipal bond performance remained one of the few positive corners of the U.S. fixed-income market.
The year 2021 ended with yet another new COVID-19 variant emerging, but despite higher transmissibility, the Omicron variant appeared to be less severe than originally feared. With economic growth and employment seemingly on track, the U.S. Federal Reserve (Fed) began tapering its asset purchases while acknowledging conditions pushing inflation higher could persist. This served to elevate interest rate volatility for the fourth calendar quarter of 2021. Congressional passage of an infrastructure spending plan provided support to the municipal bond sector via federal spending, though movement toward higher individual tax rates, which could have boosted demand, was left out of the final bill. However, entering 2022 with relatively full valuations and low absolute yields left little margin for error within the municipal bond market, and as messaging from the Fed grew increasingly hawkish, municipal bonds could no longer remain immune from rising interest rates. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
The first quarter of 2022 closed with the Fund’s benchmark down 5.85% in the worst drawdown since the COVID-19 sell-off and the worst first quarter return since 1980. As is often the case with municipal bonds, negative returns precipitated outflows, which, in turn, led to more negative returns. Long and intermediate national bond funds, as well as high-yield bond funds, experienced the heaviest pressure. A silver lining to the sell-off was that credit fundamentals were not a concern, as evidenced by the modest differential between below-investment grade and investment-grade returns. A lack of high-yield supply helped to keep those returns relatively tight, and lower new issue supply avoided exacerbating the returns. Conditions persisted into the last month of the annual period, with the Bloomberg Municipal Bond Index posting a return of -2.77% in April 2022, and municipal bonds underperforming U.S. Treasuries for the month. However, rising interest rates coupled with outflows had a positive side effect for the municipal bond market. Excluding the brief COVID-19 sell-off, tax-exempt yields had not seen the levels of the first months of 2022 since early 2019. Indeed, versus other fixed-income sectors, taxable equivalent yields were attractive enough to begin enticing even bank and insurance buyers back into the municipal market. Buyers of municipal credit were also drawn in by the solid fundamentals underpinning state and local governments, which on the back of record tax collections, substantial federal aid and a growing economy, remained rather healthy. Credit upgrades outpaced downgrades, and defaults remained exceptionally low.
The California intermediate municipal market slightly underperformed the national intermediate municipal market. Underperforming sectors in California were local general obligation bonds, public power and transportation. The underperformance within these California sectors was not credit related but rather bond structure related. Bonds within these California sectors generally have lower coupons, more zero coupons and higher quality profiles, which renders them more sensitive to increases in interest rates. During the rising rate environment, these bonds underperformed.
The Fund’s notable contributors during the period
| • | The Fund’s duration positioning contributed to the Fund’s performance versus the benchmark during the period. |
| ○ | We began to reduce the Fund’s duration early last summer as our view on the market was becoming less constructive. Building inflation pressures, the Fed’s plans to wind down its asset purchases and begin a cycle of raising interest rates prompted us to transition to a more defensive posture. |
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
| ○ | The Fund’s duration relative to its benchmark went from just above the benchmark at the beginning of the period to almost one-half year short of its benchmark. This positioning change benefited the Fund as interest rates rose quickly at the start of 2022. |
| • | The Fund’s pre-refunded bonds, which had an average maturity of less than two years, and exposure to bonds maturing in less than two years also contributed to performance. In an environment of rising interest rates, shorter maturity bonds tend to outperform their longer maturity counterparts. |
The Fund’s notable detractors during the period
| • | The timing of some Fund purchases in late July - early August 2021 and again in December 2021 led to poor total returns for the Fund as these purchases were executed at the low in yields for the period. |
| • | Exposure to 4% coupon bonds, while less than the benchmark, was not helpful to performance as this coupon structure underperformed during the selloff. |
| • | Lastly, the Fund’s overweighting to lower investment-grade bonds detracted from performance as they underperformed higher rated bonds. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund 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.
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 |
| | Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual |
| Class A | 1,000.00 | 1,000.00 | 930.20 | 1,021.24 | 3.56 | 3.73 | 0.74 |
| Advisor Class | 1,000.00 | 1,000.00 | 932.10 | 1,022.49 | 2.36 | 2.47 | 0.49 |
| Class C | 1,000.00 | 1,000.00 | 927.60 | 1,017.50 | 7.16 | 7.49 | 1.49 |
| Institutional Class | 1,000.00 | 1,000.00 | 932.10 | 1,022.49 | 2.36 | 2.47 | 0.49 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 932.00 | 1,022.69 | 2.17 | 2.27 | 0.45 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 931.60 | 1,022.94 | 1.93 | 2.02 | 0.40 |
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.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 7 |
Portfolio of Investments
April 30, 2022
(Percentages represent value of investments compared to net assets)
Investments in securities
| Floating Rate Notes 0.1% |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Variable Rate Demand Notes 0.1% |
| State of California(a),(b) |
| Unlimited General Obligation Bonds |
| Kindergarten |
| Series 2013A2 (State Street) |
| 05/01/2034 | 0.300% | | 335,000 | 335,000 |
Total Floating Rate Notes
(Cost $335,000) | 335,000 |
|
| Municipal Bonds 95.5% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 10.3% |
| City of Los Angeles Department of Airports |
| Refunding Revenue Bonds |
| Subordinated Series 2015C |
| 05/15/2029 | 5.000% | | 2,410,000 | 2,558,042 |
| Subordinated Series 2019C |
| 05/15/2035 | 5.000% | | 3,975,000 | 4,386,259 |
| 05/15/2037 | 5.000% | | 2,250,000 | 2,477,809 |
| Revenue Bonds |
| Subordinated Series 2017B |
| 05/15/2029 | 5.000% | | 330,000 | 361,723 |
| 05/15/2030 | 5.000% | | 500,000 | 546,694 |
| City of Los Angeles Department of Airports(c) |
| Revenue Bonds |
| Los Angeles International Airport |
| Subordinated Series 2019 |
| 05/15/2038 | 5.000% | | 3,500,000 | 3,771,462 |
| Senior Series 2020C |
| 05/15/2038 | 5.000% | | 3,000,000 | 3,269,815 |
| County of Orange Airport |
| Refunding Revenue Bonds |
| Series 2019A |
| 07/01/2029 | 5.000% | | 200,000 | 220,609 |
| Series 2019B |
| 07/01/2029 | 5.000% | | 275,000 | 303,338 |
| County of Sacramento Airport System |
| Refunding Revenue Bonds |
| Subordinated Series 2016B |
| 07/01/2036 | 5.000% | | 1,750,000 | 1,871,366 |
| Subordinated Series 2018E |
| 07/01/2034 | 5.000% | | 1,000,000 | 1,095,770 |
| Norman Y. Mineta San Jose International Airport |
| Refunding Revenue Bonds |
| Series 2014B |
| 03/01/2027 | 5.000% | | 2,000,000 | 2,078,682 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2014C |
| 03/01/2030 | 5.000% | | 2,500,000 | 2,596,083 |
| San Diego County Regional Airport Authority |
| Refunding Revenue Bonds |
| Subordinated Series 2017A |
| 07/01/2033 | 5.000% | | 1,000,000 | 1,088,478 |
| 07/01/2034 | 5.000% | | 700,000 | 758,427 |
| San Diego County Regional Airport Authority(c) |
| Refunding Revenue Bonds |
| Subordinated Series 2019B |
| 07/01/2036 | 5.000% | | 1,540,000 | 1,661,314 |
| Subordinated Series 2020 |
| 07/01/2036 | 5.000% | | 495,000 | 538,665 |
| 07/01/2039 | 5.000% | | 400,000 | 433,388 |
| Revenue Bonds |
| Subordinated Series 2021B |
| 07/01/2039 | 4.000% | | 250,000 | 245,114 |
| San Francisco City & County Airport Commission - San Francisco International Airport |
| Refunding Revenue Bonds |
| 2nd Series 2016A |
| 05/01/2026 | 5.000% | | 1,975,000 | 2,139,601 |
| San Francisco Airport Commission Project |
| Series 2019 |
| 05/01/2036 | 5.000% | | 3,205,000 | 3,544,482 |
| San Francisco City & County Airport Commission - San Francisco International Airport(c) |
| Refunding Revenue Bonds |
| Series 2019H |
| 05/01/2026 | 5.000% | | 1,140,000 | 1,218,974 |
| Series 2020A-2 |
| 05/01/2039 | 4.000% | | 750,000 | 742,685 |
| Revenue Bonds |
| Series 2019E |
| 05/01/2037 | 5.000% | | 4,450,000 | 4,792,043 |
| Total | 42,700,823 |
| Charter Schools 3.8% |
| California Infrastructure & Economic Development Bank |
| Revenue Bonds |
| Equitable School Revolving Fund |
| Series 2019 |
| 11/01/2039 | 5.000% | | 275,000 | 296,127 |
| California School Finance Authority(d) |
| Refunding Revenue Bonds |
| Aspire Public School |
| Series 2016 |
| 08/01/2029 | 5.000% | | 1,000,000 | 1,039,862 |
| 08/01/2030 | 5.000% | | 1,380,000 | 1,430,527 |
| 08/01/2031 | 5.000% | | 850,000 | 879,157 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Alliance College-Ready Public Schools |
| Series 2015 |
| 07/01/2030 | 5.000% | | 3,400,000 | 3,516,800 |
| Aspire Public Schools Obligation Group |
| Series 2021 |
| 08/01/2036 | 4.000% | | 325,000 | 309,778 |
| Green Dot Public School Project |
| Series 2015A |
| 08/01/2035 | 5.000% | | 1,010,000 | 1,038,821 |
| Series 2018 |
| 08/01/2038 | 5.000% | | 1,000,000 | 1,038,713 |
| KIPP Los Angeles Projects |
| Series 2015A |
| 07/01/2035 | 5.000% | | 1,250,000 | 1,283,000 |
| Series 2017 |
| 07/01/2037 | 5.000% | | 3,090,000 | 3,206,247 |
| River Springs Charter School Project |
| Series 2015 |
| 07/01/2025 | 5.250% | | 1,200,000 | 1,222,486 |
| California School Finance Authority |
| Revenue Bonds |
| KIPP Los Angeles Projects |
| Series 2014A |
| 07/01/2034 | 5.000% | | 600,000 | 611,895 |
| Total | 15,873,413 |
| Disposal 0.2% |
| California Municipal Finance Authority(d) |
| Revenue Bonds |
| Waste Management, Inc. |
| Series 2009A (Mandatory Put 02/03/25) |
| 02/01/2039 | 1.300% | | 750,000 | 711,812 |
| Higher Education 6.1% |
| California Educational Facilities Authority |
| Refunding Revenue Bonds |
| Loma Linda University |
| Series 2017A |
| 04/01/2034 | 5.000% | | 1,485,000 | 1,608,689 |
| 04/01/2035 | 5.000% | | 2,000,000 | 2,163,773 |
| Series 2018-A |
| 12/01/2036 | 5.000% | | 1,000,000 | 1,077,490 |
| Revenue Bonds |
| Chapman University |
| Series 2015 |
| 04/01/2026 | 5.000% | | 1,000,000 | 1,064,316 |
| Green Bonds - Loyola Marymount University |
| Series 2018 |
| 10/01/2036 | 5.000% | | 760,000 | 835,931 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Azusa Pacific University |
| Series 2015B |
| 04/01/2025 | 5.000% | | 395,000 | 422,896 |
| 04/01/2026 | 5.000% | | 1,000,000 | 1,067,137 |
| Biola University |
| Series 2017 |
| 10/01/2031 | 5.000% | | 540,000 | 580,214 |
| 10/01/2032 | 5.000% | | 615,000 | 660,495 |
| 10/01/2033 | 5.000% | | 625,000 | 669,730 |
| 10/01/2034 | 5.000% | | 570,000 | 609,908 |
| California Lutheran University |
| Series 2018 |
| 10/01/2035 | 5.000% | | 225,000 | 242,576 |
| 10/01/2036 | 5.000% | | 250,000 | 269,130 |
| Revenue Bonds |
| Biola University |
| Series 2013 |
| 10/01/2024 | 5.000% | | 505,000 | 520,280 |
| 10/01/2028 | 5.000% | | 840,000 | 863,269 |
| National University |
| Series 2019A |
| 04/01/2035 | 5.000% | | 1,780,000 | 1,973,127 |
| 04/01/2036 | 5.000% | | 1,120,000 | 1,240,357 |
| University of San Diego |
| Series 2019A |
| 10/01/2037 | 5.000% | | 1,200,000 | 1,331,382 |
| California Municipal Finance Authority(d) |
| Revenue Bonds |
| California Baptist University |
| Series 2016A |
| 11/01/2026 | 4.000% | | 1,000,000 | 1,027,337 |
| California Statewide Communities Development Authority(d) |
| Refunding Revenue Bonds |
| California Baptist University |
| Series 2017A |
| 11/01/2032 | 5.000% | | 1,135,000 | 1,218,254 |
| Revenue Bonds |
| California Baptist University |
| Series 2014A |
| 11/01/2023 | 5.125% | | 380,000 | 389,334 |
| Lancer Plaza Project |
| Series 2013 |
| 11/01/2023 | 5.125% | | 255,000 | 258,664 |
| University of California |
| Refunding Revenue Bonds |
| Series 2020BE |
| 05/15/2037 | 4.000% | | 2,665,000 | 2,740,486 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 9 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2022S |
| 05/15/2030 | 5.000% | | 2,000,000 | 2,308,709 |
| Total | 25,143,484 |
| Hospital 10.4% |
| California Health Facilities Financing Authority |
| Refunding Revenue Bonds |
| Cedars Sinai Medical Center |
| Series 2015 |
| 11/15/2028 | 5.000% | | 1,000,000 | 1,080,103 |
| Children’s Hospital of Orange County |
| Series 2019 |
| 11/01/2030 | 5.000% | | 810,000 | 922,625 |
| El Camino Hospital |
| Series 2015A |
| 02/01/2027 | 5.000% | | 1,500,000 | 1,593,852 |
| Marshall Medical Center |
| Series 2015 |
| 11/01/2023 | 5.000% | | 325,000 | 337,907 |
| Providence St. Joseph Health System |
| Series 2019 (Mandatory Put 10/01/27) |
| 10/01/2039 | 5.000% | | 2,775,000 | 3,031,430 |
| Sutter Health |
| Series 2017A |
| 11/15/2033 | 5.000% | | 1,000,000 | 1,094,328 |
| Revenue Bonds |
| El Camino Hospital |
| Series 2017 |
| 02/01/2033 | 5.000% | | 2,500,000 | 2,735,447 |
| 02/01/2034 | 5.000% | | 500,000 | 546,625 |
| Kaiser Permanente |
| Subordinated Series 2017A-1-G |
| 11/01/2027 | 5.000% | | 1,875,000 | 2,101,313 |
| Lucile Salter Packard Children’s Hospital |
| Series 2014 |
| 08/15/2028 | 5.000% | | 300,000 | 315,596 |
| Series 2017 |
| 11/15/2034 | 5.000% | | 250,000 | 277,740 |
| 11/15/2035 | 5.000% | | 270,000 | 299,813 |
| Providence Health & Services |
| Series 2014A |
| 10/01/2030 | 5.000% | | 1,500,000 | 1,581,182 |
| Sutter Health |
| Series 2018A |
| 11/15/2034 | 5.000% | | 1,000,000 | 1,092,203 |
| Unrefunded Revenue Bonds |
| St. Joseph Health Systems |
| Series 2019 (Mandatory Put 10/01/25) |
| 10/01/2039 | 5.000% | | 1,325,000 | 1,409,555 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Community Medical Centers |
| Series 2017A |
| 02/01/2033 | 5.000% | | 2,770,000 | 3,032,163 |
| Revenue Bonds |
| Clincas Del Camino Real, Inc. |
| Series 2020 |
| 03/01/2035 | 4.000% | | 500,000 | 498,321 |
| California Public Finance Authority |
| Refunding Revenue Bonds |
| Henry Mayo Newhall Hospital |
| Series 2021 |
| 10/15/2027 | 4.000% | | 400,000 | 420,729 |
| 10/15/2028 | 4.000% | | 360,000 | 380,296 |
| California Statewide Communities Development Authority |
| Refunding Revenue Bonds |
| Enloe Medical Center |
| Series 2015 |
| 08/15/2030 | 5.000% | | 1,990,000 | 2,158,697 |
| Revenue Bonds |
| Emanate Health |
| Series 2020A |
| 04/01/2026 | 5.000% | | 570,000 | 619,720 |
| Green - Marin General Hospital Project |
| Series 2018 |
| 08/01/2033 | 5.000% | | 425,000 | 461,322 |
| 08/01/2034 | 5.000% | | 650,000 | 704,108 |
| Kaiser Permanente |
| Series 2019 (Mandatory Put 11/01/29) |
| 04/01/2038 | 5.000% | | 2,500,000 | 2,833,815 |
| 04/01/2045 | 5.000% | | 5,000,000 | 5,667,631 |
| Loma Linda University Medical Center |
| Series 2014 |
| 12/01/2034 | 5.250% | | 3,000,000 | 3,121,599 |
| Methodist Hospital of Southern California |
| Series 2018 |
| 01/01/2036 | 5.000% | | 3,000,000 | 3,247,253 |
| City of Upland |
| Refunding Certificate of Participation |
| San Antonio Regional Hospital |
| Series 2017 |
| 01/01/2034 | 5.000% | | 500,000 | 538,992 |
| 01/01/2036 | 4.000% | | 1,000,000 | 1,012,250 |
| Total | 43,116,615 |
| Human Service Provider 0.3% |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Harbor Regional Center Project |
| Series 2015 |
| 11/01/2032 | 5.000% | | 1,120,000 | 1,197,630 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Joint Power Authority 0.7% |
| Middle Fork Project Finance Authority |
| Refunding Revenue Bonds |
| Series 2020 |
| 04/01/2030 | 5.000% | | 1,200,000 | 1,351,588 |
| Northern California Transmission Agency |
| Refunding Revenue Bonds |
| California-Oregon Project |
| Series 2016 |
| 05/01/2032 | 5.000% | | 1,500,000 | 1,618,531 |
| Total | 2,970,119 |
| Local Appropriation 2.4% |
| Anaheim Public Financing Authority |
| Refunding Revenue Bonds |
| Anaheim Public Improvement Projects |
| Series 2019 BAM |
| 09/01/2031 | 5.000% | | 1,470,000 | 1,641,016 |
| Los Angeles County Public Works Financing Authority |
| Revenue Bonds |
| Green Bonds - LACMA Building for the Permanent Collection Project |
| Series 2020A |
| 12/01/2037 | 4.000% | | 2,415,000 | 2,478,361 |
| Riverside Public Financing Authority |
| Refunding Revenue Bonds |
| Series 2012A |
| 11/01/2027 | 5.000% | | 2,145,000 | 2,180,221 |
| 11/01/2028 | 5.000% | | 1,155,000 | 1,173,620 |
| San Rafael Joint Powers Financing Authority |
| Revenue Bonds |
| Public Safety Facilities Project |
| Series 2018 |
| 06/01/2033 | 5.000% | | 850,000 | 948,917 |
| 06/01/2034 | 5.000% | | 775,000 | 864,222 |
| South San Francisco Public Facilities Financing Authority |
| Revenue Bonds |
| Police Station Project |
| Series 2020A |
| 06/01/2034 | 4.000% | | 410,000 | 429,643 |
| Total | 9,716,000 |
| Local General Obligation 7.2% |
| Bellevue Union School District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation - Election of 2008 |
| Series 2011A (AGM) |
| 08/01/2030 | 0.000% | | 585,000 | 438,817 |
| 08/01/2031 | 0.000% | | 615,000 | 441,689 |
| Chula Vista Elementary School District(e) |
| Unlimited General Obligation Bonds |
| BAN Series 2019 |
| 08/01/2023 | 0.000% | | 1,150,000 | 1,117,680 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Compton Unified School District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation - Election of 2002 |
| Series 2006C (AMBAC) |
| 06/01/2023 | 0.000% | | 2,025,000 | 1,968,309 |
| 06/01/2024 | 0.000% | | 1,925,000 | 1,808,690 |
| Compton Unified School District |
| Unlimited General Obligation Bonds |
| Compton Unified School District |
| Series 2019B (BAM) |
| 06/01/2029 | 5.000% | | 650,000 | 718,123 |
| Conejo Valley Unified School District |
| Unlimited General Obligation Bonds |
| Series 2018B |
| 08/01/2032 | 4.000% | | 2,000,000 | 2,098,839 |
| Corona-Norco Unified School District |
| Unlimited General Obligation Bonds |
| Election of 2014 |
| Series 2018B |
| 08/01/2034 | 4.000% | | 500,000 | 518,958 |
| Culver City School Facilities Financing Authority |
| Revenue Bonds |
| Unified School District |
| Series 2005 (AGM) |
| 08/01/2023 | 5.500% | | 1,490,000 | 1,553,283 |
| Encinitas Union School District(f) |
| Unlimited General Obligation Bonds |
| Capital Appreciation - Election of 2010 |
| Series 2011 |
| 08/01/2035 | 0.000% | | 500,000 | 638,700 |
| Lodi Unified School District |
| Unlimited General Obligation Bonds |
| Election of 2016 |
| Series 2020 |
| 08/01/2034 | 4.000% | | 750,000 | 774,262 |
| 08/01/2035 | 4.000% | | 600,000 | 615,959 |
| Long Beach Unified School District(e) |
| Unlimited General Obligation Bonds |
| Series 2015D-1 |
| 08/01/2031 | 0.000% | | 1,375,000 | 965,360 |
| Los Angeles Unified School District |
| Unlimited General Obligation Bonds |
| Election of 2008 |
| Series 2018B-1 |
| 07/01/2032 | 5.000% | | 4,000,000 | 4,409,251 |
| Monterey Peninsula Community College District(e) |
| Unlimited General Obligation Refunding Bonds |
| Series 2016 |
| 08/01/2028 | 0.000% | | 2,125,000 | 1,753,604 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 11 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Napa Valley Community College District(f) |
| Unlimited General Obligation Refunding Bonds |
| Series 2018 |
| 08/01/2034 | 4.000% | | 1,595,000 | 1,634,984 |
| Oakland Unified School District/Alameda County |
| Unlimited General Obligation Bonds |
| Series 2015A |
| 08/01/2025 | 5.000% | | 650,000 | 699,064 |
| Pomona Unified School District(e) |
| Unlimited General Obligation Bonds |
| Election of 2008 |
| Series 2016G (AGM) |
| 08/01/2032 | 0.000% | | 1,000,000 | 708,459 |
| Rancho Santiago Community College District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation - Election of 2002 |
| Series 2006C (AGM) |
| 09/01/2031 | 0.000% | | 3,785,000 | 2,744,670 |
| Rescue Union School District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation - Election of 1998 |
| Series 2005 (NPFGC) |
| 09/01/2026 | 0.000% | | 1,100,000 | 962,506 |
| Santa Monica Community College District |
| Unlimited General Obligation Bonds |
| Election of 2016 |
| Series 2018A |
| 08/01/2034 | 4.000% | | 500,000 | 518,958 |
| Sierra Kings Health Care District |
| Unlimited General Obligation Refunding Bonds |
| Series 2015 |
| 08/01/2028 | 5.000% | | 1,000,000 | 1,059,436 |
| 08/01/2032 | 5.000% | | 1,500,000 | 1,582,880 |
| Total | 29,732,481 |
| Multi-Family 1.0% |
| California Housing Finance |
| Revenue Bonds |
| Series 2019-2 Class A |
| 03/20/2033 | 4.000% | | 1,156,277 | 1,187,707 |
| California Municipal Finance Authority |
| Revenue Bonds |
| Bowles Hall Foundation |
| Series 2015A |
| 06/01/2035 | 5.000% | | 400,000 | 411,813 |
| Caritas Affordable Housing |
| Series 2014 |
| 08/15/2030 | 5.000% | | 1,000,000 | 1,032,142 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Statewide Communities Development Authority |
| Revenue Bonds |
| Lancer Educational Student Housing Project |
| Series 2019 |
| 06/01/2034 | 5.000% | | 375,000 | 391,325 |
| Series 2017 |
| 05/15/2032 | 5.000% | | 1,000,000 | 1,069,138 |
| Total | 4,092,125 |
| Municipal Power 4.7% |
| City of Redding Electric System |
| Refunding Revenue Bonds |
| Series 2017 |
| 06/01/2029 | 5.000% | | 1,250,000 | 1,381,629 |
| City of Riverside Electric |
| Refunding Revenue Bonds |
| Series 2019A |
| 10/01/2037 | 5.000% | | 1,000,000 | 1,115,985 |
| City of Vernon Electric System(g) |
| Refunding Revenue Bonds |
| Series 2022A |
| 08/01/2039 | 5.000% | | 425,000 | 453,027 |
| Los Angeles Department of Water & Power System |
| Refunding Revenue Bonds |
| Series 2018A |
| 07/01/2035 | 5.000% | | 1,750,000 | 1,922,386 |
| Series 2019B |
| 07/01/2031 | 5.000% | | 5,000,000 | 5,634,707 |
| Revenue Bonds |
| Power System |
| Series 2014D |
| 07/01/2033 | 5.000% | | 1,700,000 | 1,778,631 |
| Redding Joint Powers Financing Authority |
| Refunding Revenue Bonds |
| Series 2015A |
| 06/01/2031 | 5.000% | | 1,045,000 | 1,120,391 |
| Sacramento Municipal Utility District |
| Revenue Bonds |
| Electric |
| Series 2020H |
| 08/15/2033 | 5.000% | | 2,000,000 | 2,291,060 |
| Turlock Irrigation District |
| Refunding Revenue Bonds |
| First Priority |
| Subordinated Series 2014 |
| 01/01/2030 | 5.000% | | 850,000 | 893,339 |
| 01/01/2031 | 5.000% | | 1,000,000 | 1,050,124 |
| Series 2020 |
| 01/01/2038 | 5.000% | | 1,650,000 | 1,859,194 |
| Total | 19,500,473 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Other Bond Issue 0.7% |
| California Infrastructure & Economic Development Bank |
| Refunding Revenue Bonds |
| Salvation Army Western Territory (The) |
| Series 2016 |
| 09/01/2033 | 4.000% | | 400,000 | 413,267 |
| 09/01/2034 | 4.000% | | 600,000 | 616,945 |
| Walt Disney Family Museum |
| Series 2016 |
| 02/01/2032 | 4.000% | | 350,000 | 359,705 |
| 02/01/2033 | 4.000% | | 500,000 | 511,542 |
| City of Long Beach Marina System |
| Revenue Bonds |
| Series 2015 |
| 05/15/2028 | 5.000% | | 635,000 | 665,738 |
| County of San Diego |
| Refunding Revenue Bonds |
| Sanford Burnham Prebys Medical Discovery Group |
| Series 2015 |
| 11/01/2025 | 5.000% | | 350,000 | 378,618 |
| Total | 2,945,815 |
| Pool / Bond Bank 0.6% |
| California Infrastructure & Economic Development Bank |
| Revenue Bonds |
| Green Bonds |
| Series 2019 |
| 10/01/2031 | 5.000% | | 2,120,000 | 2,396,218 |
| Ports 3.1% |
| City of Long Beach Harbor(c) |
| Refunding Revenue Bonds |
| Private Activity |
| Series 2020B |
| 05/15/2024 | 5.000% | | 5,000,000 | 5,226,102 |
| City of Long Beach Harbor |
| Revenue Bonds |
| Series 2019A |
| 05/15/2036 | 5.000% | | 700,000 | 783,325 |
| Port Commission of the City & County of San Francisco |
| Refunding Revenue Bonds |
| Series 2020A |
| 03/01/2037 | 4.000% | | 315,000 | 322,634 |
| 03/01/2038 | 4.000% | | 405,000 | 414,127 |
| 03/01/2039 | 4.000% | | 1,260,000 | 1,286,285 |
| Port of Los Angeles(c) |
| Refunding Revenue Bonds |
| Private Activity |
| Series 2019A |
| 08/01/2025 | 5.000% | | 1,750,000 | 1,868,012 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Port of Oakland(c) |
| Refunding Revenue Bonds |
| Intermediate Lien |
| Series 2021 |
| 05/01/2029 | 5.000% | | 500,000 | 550,431 |
| San Diego Unified Port District |
| Refunding Revenue Bonds |
| Series 2013A |
| 09/01/2027 | 5.000% | | 1,000,000 | 1,033,573 |
| 09/01/2028 | 5.000% | | 1,100,000 | 1,137,347 |
| Total | 12,621,836 |
| Prepaid Gas 3.0% |
| California Community Choice Financing Authority |
| Revenue Bonds |
| Green Bonds |
| Series 2021B-1 (Mandatory Put 08/01/2031) |
| 02/01/2052 | 4.000% | | 3,500,000 | 3,551,210 |
| Green Bonds - Clean Energy Project |
| Series 2021 (Mandatory Put 12/01/27) |
| 10/01/2052 | 4.000% | | 4,000,000 | 4,100,431 |
| M-S-R Energy Authority |
| Revenue Bonds |
| Series 2009B |
| 11/01/2029 | 6.125% | | 1,890,000 | 2,108,087 |
| Southern California Public Power Authority |
| Revenue Bonds |
| Project No. 1 |
| Series 2007A |
| 11/01/2022 | 5.250% | | 2,500,000 | 2,539,133 |
| Total | 12,298,861 |
| Recreation 0.4% |
| Del Mar Race Track Authority |
| Refunding Revenue Bonds |
| Series 2015 |
| 10/01/2025 | 5.000% | | 1,665,000 | 1,666,710 |
| Refunded / Escrowed 8.2% |
| California Educational Facilities Authority |
| Revenue Bonds |
| University of Southern California |
| Series 2009C Escrowed to Maturity |
| 10/01/2024 | 5.250% | | 3,000,000 | 3,204,428 |
| California Health Facilities Financing Authority |
| Prerefunded 10/01/25 Revenue Bonds |
| Series 2019 |
| 10/01/2039 | 5.000% | | 1,175,000 | 1,271,396 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 13 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Municipal Finance Authority |
| Prerefunded 02/01/25 Revenue Bonds |
| Community Medical Centers |
| Series 2015A |
| 02/01/2027 | 5.000% | | 1,200,000 | 1,282,319 |
| California School Finance Authority(d) |
| Prerefunded 08/01/25 Revenue Bonds |
| Aspire Public School |
| Series 2016 |
| 08/01/2029 | 5.000% | | 100,000 | 107,807 |
| 08/01/2030 | 5.000% | | 125,000 | 134,759 |
| 08/01/2031 | 5.000% | | 75,000 | 80,856 |
| California State Public Works Board |
| Prerefunded 11/01/22 Revenue Bonds |
| Various Capital Projects |
| Series 2012G |
| 11/01/2028 | 5.000% | | 7,010,000 | 7,129,301 |
| California Statewide Communities Development Authority |
| Prerefunded 07/01/24 Revenue Bonds |
| Huntington Memorial Hospital |
| Series 2014B |
| 07/01/2033 | 5.000% | | 2,300,000 | 2,424,727 |
| Prerefunded 10/01/24 Revenue Bonds |
| Henry Mayo Newhall Memorial Hospital |
| Series 2014A (AGM) |
| 10/01/2027 | 5.000% | | 1,000,000 | 1,059,897 |
| Prerefunded 11/15/23 Revenue Bonds |
| Insured Redwoods Project |
| Series 2013 |
| 11/15/2028 | 5.000% | | 1,000,000 | 1,042,110 |
| Golden State Tobacco Securitization Corp. |
| Prerefunded 06/01/25 Asset-Backed Revenue Bonds |
| Series 2015A |
| 06/01/2033 | 5.000% | | 4,000,000 | 4,300,247 |
| Refunding Revenue Bonds |
| Series 2017A-1 Escrowed to Maturity |
| 06/01/2024 | 5.000% | | 4,000,000 | 4,209,312 |
| La Quinta Redevelopment Agency Successor Agency |
| Prerefunded 09/01/23 Tax Allocation Bonds |
| Redevelopment Project |
| Subordinated Series 2013A |
| 09/01/2030 | 5.000% | | 1,500,000 | 1,555,824 |
| Midpeninsula Regional Open Space District |
| Prerefunded 09/01/22 Revenue Bonds |
| 1999 Project Lease |
| Series 2012 |
| 09/01/2029 | 5.000% | | 2,000,000 | 2,023,570 |
| Poway Unified School District |
| Prerefunded 09/01/22 Special Tax Bonds |
| Community Facilities District No. 6-4S Ranch |
| Series 2012 |
| 09/01/2029 | 5.000% | | 1,195,000 | 1,208,685 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Semitropic Improvement District |
| Prerefunded 12/01/22 Revenue Bonds |
| Series 2012A |
| 12/01/2023 | 5.000% | | 2,850,000 | 2,905,311 |
| Total | 33,940,549 |
| Retirement Communities 4.6% |
| ABAG Finance Authority for Nonprofit Corps. |
| Revenue Bonds |
| Odd Fellows Home of California |
| Series 2012A |
| 04/01/2032 | 5.000% | | 4,750,000 | 4,850,936 |
| California Health Facilities Financing Authority |
| Refunding Revenue Bonds |
| Northern California Presbyterian Homes |
| Series 2015 |
| 07/01/2028 | 5.000% | | 310,000 | 332,567 |
| 07/01/2029 | 5.000% | | 300,000 | 321,622 |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| HumanGood Obligation Group |
| Series 2019A |
| 10/01/2034 | 4.000% | | 500,000 | 514,554 |
| 10/01/2035 | 4.000% | | 1,000,000 | 1,025,885 |
| Mt. San Antonio Gardens Project |
| Series 2019 |
| 11/15/2039 | 5.000% | | 1,000,000 | 1,047,901 |
| Retirement Housing Foundation |
| Series 2017 |
| 11/15/2029 | 5.000% | | 390,000 | 420,675 |
| 11/15/2030 | 5.000% | | 600,000 | 649,643 |
| 11/15/2032 | 5.000% | | 850,000 | 915,548 |
| California Public Finance Authority(d) |
| Revenue Bonds |
| Enso Village Project - Green Bonds - TEMPS 70 |
| Series 2021 |
| 11/15/2028 | 2.375% | | 2,000,000 | 1,879,666 |
| California Statewide Communities Development Authority |
| Refunding Revenue Bonds |
| American Baptist Homes West |
| Series 2015 |
| 10/01/2024 | 5.000% | | 2,575,000 | 2,711,277 |
| 10/01/2026 | 5.000% | | 1,000,000 | 1,067,250 |
| Front Porch Communities & Services |
| Series 2017 |
| 04/01/2030 | 5.000% | | 150,000 | 164,312 |
| Series 2021 |
| 04/01/2038 | 4.000% | | 750,000 | 762,047 |
| 04/01/2039 | 4.000% | | 750,000 | 761,222 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Viamonte Senior Living 1, Inc. |
| Series 2018 |
| 07/01/2035 | 4.000% | | 300,000 | 308,419 |
| 07/01/2036 | 4.000% | | 430,000 | 440,481 |
| Los Angeles County Regional Financing Authority |
| Revenue Bonds |
| Montecedro, Inc. Project |
| Series 2014A |
| 11/15/2034 | 5.000% | | 1,000,000 | 1,012,686 |
| Total | 19,186,691 |
| Sales Tax 0.9% |
| California Statewide Communities Development Authority |
| Certificate of Participation |
| Total Road Improvement Program |
| Series 2018B (AGM) |
| 12/01/2035 | 5.000% | | 1,405,000 | 1,589,879 |
| City of Sacramento Transient Occupancy |
| Revenue Bonds |
| Convention Center Complex |
| Subordinated Series 2018 |
| 06/01/2035 | 5.000% | | 615,000 | 672,565 |
| 06/01/2036 | 5.000% | | 1,180,000 | 1,289,372 |
| Total | 3,551,816 |
| Special Non Property Tax 0.2% |
| Berkeley Joint Powers Financing Authority |
| Revenue Bonds |
| Series 2016 (BAM) |
| 06/01/2033 | 4.000% | | 415,000 | 425,233 |
| 06/01/2034 | 4.000% | | 250,000 | 255,483 |
| Total | 680,716 |
| Special Property Tax 13.2% |
| Carson Public Financing Authority |
| Revenue Bonds |
| Series 2019 |
| 09/02/2026 | 5.000% | | 650,000 | 697,492 |
| City & County of San Francisco Community Facilities District No. 2016-1 |
| Special Tax Bonds |
| Series 2021 |
| 09/01/2041 | 4.000% | | 745,000 | 688,950 |
| City of Irvine |
| Refunding Special Assessment Bonds |
| Limited Obligation Reassessment District |
| Series 2015 |
| 09/02/2025 | 5.000% | | 1,295,000 | 1,391,222 |
| Special Assessment Refunding Bonds |
| Series 2019 |
| 09/02/2031 | 5.000% | | 325,000 | 362,369 |
| 09/02/2032 | 5.000% | | 340,000 | 378,403 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Concord Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Series 2014 (BAM) |
| 03/01/2025 | 5.000% | | 840,000 | 896,086 |
| County of El Dorado |
| Refunding Special Tax Bonds |
| Community Facilities District No. 92-1 |
| Series 2012 |
| 09/01/2026 | 5.000% | | 625,000 | 632,220 |
| 09/01/2027 | 5.000% | | 800,000 | 809,242 |
| Emeryville Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Series 2014A (AGM) |
| 09/01/2023 | 5.000% | | 2,415,000 | 2,501,329 |
| 09/01/2026 | 5.000% | | 1,000,000 | 1,057,341 |
| 09/01/2027 | 5.000% | | 1,000,000 | 1,057,254 |
| 09/01/2030 | 5.000% | | 815,000 | 859,777 |
| 09/01/2031 | 5.000% | | 590,000 | 621,689 |
| Garden Grove Agency Community Development Successor Agency |
| Refunding Tax Allocation Bonds |
| Garden Grove Community Project |
| Series 2016 (BAM) |
| 10/01/2030 | 5.000% | | 1,040,000 | 1,127,931 |
| 10/01/2031 | 5.000% | | 1,640,000 | 1,776,053 |
| Inglewood Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Merged Redevelopment Project |
| Subordinated Series 2017 (BAM) |
| 05/01/2032 | 5.000% | | 500,000 | 549,367 |
| 05/01/2033 | 5.000% | | 1,000,000 | 1,097,196 |
| Irvine Unified School District |
| Refunding Special Tax Bonds |
| Series 2015 |
| 09/01/2030 | 5.000% | | 2,065,000 | 2,187,210 |
| 09/01/2031 | 5.000% | | 2,720,000 | 2,881,736 |
| Jurupa Public Financing Authority |
| Refunding Special Tax Bonds |
| Series 2014A |
| 09/01/2029 | 5.000% | | 530,000 | 557,913 |
| 09/01/2030 | 5.000% | | 625,000 | 657,916 |
| 09/01/2032 | 5.000% | | 625,000 | 657,627 |
| Los Angeles Community Facilities District |
| Refunding Special Tax Bonds |
| Playa Vista-Phase 1 |
| Series 2014 |
| 09/01/2030 | 5.000% | | 985,000 | 1,039,117 |
| Los Angeles County Redevelopment Authority |
| Refunding Tax Allocation Bonds |
| Los Angeles Bunker Hill Project |
| Series 2014C (AGM) |
| 12/01/2028 | 5.000% | | 6,060,000 | 6,440,895 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 15 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Oakland Redevelopment Successor Agency |
| Refunding Tax Allocation Bonds |
| Subordinated Series 2013 |
| 09/01/2022 | 5.000% | | 2,000,000 | 2,020,976 |
| Oakley Redevelopment Agency |
| Refunding Tax Allocation Bonds |
| Oakley Redevelopment Project Area |
| Series 2018 (BAM) |
| 09/01/2032 | 5.000% | | 335,000 | 373,244 |
| 09/01/2033 | 5.000% | | 730,000 | 812,087 |
| 09/01/2034 | 5.000% | | 500,000 | 555,594 |
| Palm Desert Redevelopment Agency |
| Refunding Tax Allocation Bonds |
| Series 2017A (BAM) |
| 10/01/2029 | 5.000% | | 890,000 | 981,267 |
| 10/01/2030 | 5.000% | | 350,000 | 384,983 |
| Poway Unified School District Public Financing Authority |
| Special Tax Refunding Bonds |
| Series 2015B |
| 09/01/2026 | 5.000% | | 995,000 | 1,075,150 |
| Rancho Cucamonga Redevelopment Agency Successor Agency |
| Tax Allocation Bonds |
| Rancho Redevelopment Project Area |
| Series 2014 |
| 09/01/2030 | 5.000% | | 700,000 | 738,458 |
| Series 2014 (AGM) |
| 09/01/2027 | 5.000% | | 2,200,000 | 2,325,446 |
| Riverside County Public Financing Authority |
| Tax Allocation Bonds |
| Project Area #1-Desert Communities |
| Series 2016 (BAM) |
| 10/01/2031 | 4.000% | | 2,500,000 | 2,572,435 |
| San Francisco City & County Redevelopment Agency |
| Refunding Tax Allocation Bonds |
| Mission Bay North Redevelopment Project |
| Series 2016 |
| 08/01/2030 | 5.000% | | 275,000 | 300,677 |
| 08/01/2031 | 5.000% | | 355,000 | 387,478 |
| Mission Bay South Redevelopment Project |
| Series 2016 |
| 08/01/2031 | 5.000% | | 670,000 | 731,297 |
| 08/01/2032 | 5.000% | | 580,000 | 632,840 |
| Tax Allocation Bonds |
| Mission Bay South Redevelopment Project |
| Series 2014A |
| 08/01/2029 | 5.000% | | 225,000 | 236,472 |
| 08/01/2030 | 5.000% | | 175,000 | 183,904 |
| San Mateo Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Series 2015A |
| 08/01/2028 | 5.000% | | 1,860,000 | 1,985,387 |
| 08/01/2029 | 5.000% | | 1,000,000 | 1,065,707 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Semitropic Improvement District |
| Refunding Revenue Bonds |
| Series 2015A 2nd Lien (AGM) |
| 12/01/2023 | 5.000% | | 300,000 | 313,296 |
| 12/01/2024 | 5.000% | | 400,000 | 426,163 |
| Transbay Joint Powers Authority |
| Senior Tax Allocation Bonds |
| Green Bonds |
| Series 2020A |
| 10/01/2033 | 5.000% | | 500,000 | 566,011 |
| Tustin Community Facilities District |
| Refunding Special Tax Bonds |
| Legacy Villages of Columbus #06-1 |
| Series 2015 |
| 09/01/2029 | 5.000% | | 1,200,000 | 1,289,689 |
| Tustin Community Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Series 2016 |
| 09/01/2032 | 4.000% | | 2,295,000 | 2,366,252 |
| Vista Redevelopment Agency Successor Agency |
| Tax Allocation Refunding Bonds |
| Series 2015B1 (AGM) |
| 09/01/2024 | 5.000% | | 580,000 | 612,567 |
| 09/01/2026 | 5.000% | | 700,000 | 755,308 |
| Total | 54,619,023 |
| State Appropriated 4.1% |
| California State Public Works Board |
| Refunding Revenue Bonds |
| Various Capital Projects |
| Series 2020C |
| 03/01/2033 | 5.000% | | 1,800,000 | 2,026,617 |
| Various Purpose |
| Series 2022A |
| 08/01/2036 | 5.000% | | 5,040,000 | 5,744,839 |
| Revenue Bonds |
| Department of Corrections and Rehabilitation |
| Series 2015A |
| 06/01/2028 | 5.000% | | 1,175,000 | 1,254,550 |
| Various Capital Projects |
| Series 2013I |
| 11/01/2028 | 5.250% | | 3,000,000 | 3,121,997 |
| Series 2014E |
| 09/01/2030 | 5.000% | | 1,500,000 | 1,577,263 |
| Various Correctional Facilities |
| Series 2014A |
| 09/01/2031 | 5.000% | | 3,000,000 | 3,153,137 |
| Total | 16,878,403 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| State General Obligation 2.8% |
| State of California |
| Unlimited General Obligation Bonds |
| Series 2019 |
| 04/01/2031 | 5.000% | | 1,000,000 | 1,128,512 |
| Series 2020 |
| 11/01/2034 | 4.000% | | 1,000,000 | 1,041,932 |
| Various Purpose |
| Series 2021 |
| 10/01/2039 | 4.000% | | 2,500,000 | 2,546,886 |
| Unlimited General Obligation Refunding Bonds |
| Series 2014 |
| 08/01/2032 | 5.000% | | 3,000,000 | 3,150,890 |
| Series 2019 |
| 10/01/2025 | 5.000% | | 2,435,000 | 2,633,935 |
| Various Purpose |
| Series 2020 |
| 03/01/2033 | 5.000% | | 1,000,000 | 1,135,543 |
| Total | 11,637,698 |
| Tobacco 0.6% |
| California County Tobacco Securitization Agency |
| Refunding Revenue Bonds |
| Series 2020A |
| 06/01/2030 | 5.000% | | 250,000 | 274,022 |
| 06/01/2032 | 5.000% | | 250,000 | 272,350 |
| 06/01/2033 | 5.000% | | 250,000 | 271,650 |
| 06/01/2034 | 4.000% | | 200,000 | 202,655 |
| Tobacco Securitization Authority of Southern California |
| Refunding Revenue Bonds |
| San Diego County Tobacco Asset Securitization Corp. |
| Series 2019 |
| 06/01/2030 | 5.000% | | 1,220,000 | 1,331,597 |
| Total | 2,352,274 |
| Transportation 0.5% |
| Peninsula Corridor Joint Powers Board |
| Refunding Revenue Bonds |
| Series 2019A |
| 10/01/2036 | 5.000% | | 315,000 | 354,128 |
| 10/01/2037 | 5.000% | | 300,000 | 337,036 |
| San Diego Association of Governments |
| Revenue Bonds |
| Green Bonds - Mid Coast Corridor |
| Series 2019 |
| 11/15/2027 | 1.800% | | 1,500,000 | 1,407,928 |
| Total | 2,099,092 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Turnpike / Bridge / Toll Road 2.4% |
| Bay Area Toll Authority |
| Refunding Revenue Bonds |
| Subordinated Series 2017 |
| 04/01/2031 | 4.000% | | 2,000,000 | 2,087,700 |
| Foothill-Eastern Transportation Corridor Agency(e) |
| Refunding Revenue Bonds |
| Series 2015 |
| 01/15/2033 | 0.000% | | 5,000,000 | 3,280,919 |
| Foothill-Eastern Transportation Corridor Agency |
| Refunding Revenue Bonds |
| Subordinated Series 2014B-3 (Mandatory Put 01/15/23) |
| 01/15/2053 | 5.500% | | 3,000,000 | 3,023,844 |
| Riverside County Transportation Commission |
| Refunding Revenue Bonds |
| RCTC 91 Express Lanes |
| Series 2021 |
| 06/01/2038 | 4.000% | | 375,000 | 370,363 |
| San Joaquin Hills Transportation Corridor Agency |
| Refunding Revenue Bonds |
| Senior Lien Toll Road |
| Series 2021 |
| 01/15/2034 | 4.000% | | 1,000,000 | 1,006,294 |
| Total | 9,769,120 |
| Water & Sewer 3.1% |
| Beaumont Public Improvement Authority |
| Revenue Bonds |
| Series 2018-A (AGM) |
| 09/01/2033 | 5.000% | | 500,000 | 548,495 |
| 09/01/2035 | 5.000% | | 830,000 | 908,542 |
| City of Riverside Water |
| Refunding Revenue Bonds |
| Series 2019A |
| 10/01/2032 | 5.000% | | 1,500,000 | 1,698,223 |
| City of Tulare Sewer |
| Refunding Revenue Bonds |
| Series 2015 (AGM) |
| 11/15/2025 | 5.000% | | 700,000 | 754,354 |
| 11/15/2026 | 5.000% | | 1,000,000 | 1,083,270 |
| Livermore Valley Water Financing Authority |
| Refunding Revenue Bonds |
| Series 2018A |
| 07/01/2034 | 4.000% | | 920,000 | 949,404 |
| Los Angeles County Sanitation Districts Financing Authority |
| Refunding Revenue Bonds |
| Capital Projects - District #14 |
| Subordinated Series 2015 |
| 10/01/2024 | 5.000% | | 1,050,000 | 1,113,145 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 17 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Mountain House Public Financing Authority |
| Revenue Bonds |
| Green Bonds |
| Subordinated Series 2020B (BAM) |
| 12/01/2035 | 4.000% | | 1,000,000 | 1,040,843 |
| Santa Paula Utility Authority |
| Refunding Revenue Bonds |
| Series 2019 (AGM) |
| 02/01/2034 | 4.000% | | 575,000 | 598,723 |
| 02/01/2036 | 4.000% | | 1,325,000 | 1,360,565 |
| Stockton Public Financing Authority |
| Refunding Revenue Bonds |
| Series 2014 (BAM) |
| 09/01/2028 | 5.000% | | 1,500,000 | 1,580,739 |
| Union Sanitary District Financing Author |
| Revenue Bonds |
| Series 2020A |
| 09/01/2037 | 4.000% | | 400,000 | 415,220 |
| 09/01/2038 | 4.000% | | 325,000 | 335,454 |
| 09/01/2039 | 4.000% | | 600,000 | 618,284 |
| Total | 13,005,261 |
Total Municipal Bonds
(Cost $404,098,569) | 394,405,058 |
| Money Market Funds 2.8% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(h) | 147,850 | 147,835 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(h) | 11,503,218 | 11,503,218 |
Total Money Market Funds
(Cost $11,651,068) | 11,651,053 |
Total Investments in Securities
(Cost: $416,084,637) | 406,391,111 |
| Other Assets & Liabilities, Net | | 6,661,868 |
| Net Assets | 413,052,979 |
Notes to Portfolio of Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 2022. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $20,773,880, which represents 5.03% of total net assets. |
| (e) | Zero coupon bond. |
| (f) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of April 30, 2022. |
| (g) | Represents a security purchased on a when-issued basis. |
| (h) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| NPFGC | National Public Finance Guarantee Corporation |
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
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
Fair value measurements (continued)
pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | 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 April 30, 2022:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Floating Rate Notes | — | 335,000 | — | 335,000 |
| Municipal Bonds | — | 394,405,058 | — | 394,405,058 |
| Money Market Funds | 11,651,053 | — | — | 11,651,053 |
| Total Investments in Securities | 11,651,053 | 394,740,058 | — | 406,391,111 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 19 |
Statement of Assets and Liabilities
April 30, 2022
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $416,084,637) | $406,391,111 |
| Cash | 5,899 |
| Receivable for: | |
| Capital shares sold | 3,749,628 |
| Interest | 4,798,426 |
| Expense reimbursement due from Investment Manager | 1,173 |
| Prepaid expenses | 7,511 |
| Total assets | 414,953,748 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 533,545 |
| Capital shares purchased | 419,461 |
| Distributions to shareholders | 779,812 |
| Management services fees | 5,267 |
| Distribution and/or service fees | 422 |
| Transfer agent fees | 35,600 |
| Compensation of board members | 108,023 |
| Other expenses | 18,639 |
| Total liabilities | 1,900,769 |
| Net assets applicable to outstanding capital stock | $413,052,979 |
| Represented by | |
| Paid in capital | 427,540,927 |
| Total distributable earnings (loss) | (14,487,948) |
| Total - representing net assets applicable to outstanding capital stock | $413,052,979 |
| Class A | |
| Net assets | $44,426,941 |
| Shares outstanding | 4,546,245 |
| Net asset value per share | $9.77 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.07 |
| Advisor Class | |
| Net assets | $1,707,392 |
| Shares outstanding | 175,141 |
| Net asset value per share | $9.75 |
| Class C | |
| Net assets | $4,363,441 |
| Shares outstanding | 446,752 |
| Net asset value per share | $9.77 |
| Institutional Class | |
| Net assets | $347,070,148 |
| Shares outstanding | 35,593,227 |
| Net asset value per share | $9.75 |
| Institutional 2 Class | |
| Net assets | $8,777,085 |
| Shares outstanding | 902,872 |
| Net asset value per share | $9.72 |
| Institutional 3 Class | |
| Net assets | $6,707,972 |
| Shares outstanding | 688,465 |
| Net asset value per share | $9.74 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Operations
Year Ended April 30, 2022
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $2,848 |
| Interest | 12,095,844 |
| Total income | 12,098,692 |
| Expenses: | |
| Management services fees | 2,094,548 |
| Distribution and/or service fees | |
| Class A | 113,583 |
| Class C | 57,964 |
| Transfer agent fees | |
| Class A | 47,719 |
| Advisor Class | 3,145 |
| Class C | 6,143 |
| Institutional Class | 393,973 |
| Institutional 2 Class | 6,681 |
| Institutional 3 Class | 496 |
| Compensation of board members | 27,668 |
| Custodian fees | 2,674 |
| Printing and postage fees | 14,275 |
| Registration fees | 21,965 |
| Audit fees | 29,500 |
| Legal fees | 15,305 |
| Compensation of chief compliance officer | 71 |
| Other | 15,590 |
| Total expenses | 2,851,300 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (490,887) |
| Expense reduction | (20) |
| Total net expenses | 2,360,393 |
| Net investment income | 9,738,299 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (73,035) |
| Net realized loss | (73,035) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (39,228,429) |
| Net change in unrealized appreciation (depreciation) | (39,228,429) |
| Net realized and unrealized loss | (39,301,464) |
| Net decrease in net assets resulting from operations | $(29,563,165) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 21 |
Statement of Changes in Net Assets
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations | | |
| Net investment income | $9,738,299 | $10,626,944 |
| Net realized gain (loss) | (73,035) | 185,992 |
| Net change in unrealized appreciation (depreciation) | (39,228,429) | 20,199,703 |
| Net increase (decrease) in net assets resulting from operations | (29,563,165) | 31,012,639 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (893,492) | (688,337) |
| Advisor Class | (66,714) | (64,148) |
| Class C | (70,128) | (119,563) |
| Institutional Class | (8,342,248) | (9,327,171) |
| Institutional 2 Class | (266,661) | (294,403) |
| Institutional 3 Class | (145,031) | (133,322) |
| Total distributions to shareholders | (9,784,274) | (10,626,944) |
| Increase (decrease) in net assets from capital stock activity | 862,463 | (11,808,581) |
| Total increase (decrease) in net assets | (38,484,976) | 8,577,114 |
| Net assets at beginning of year | 451,537,955 | 442,960,841 |
| Net assets at end of year | $413,052,979 | $451,537,955 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | April 30, 2022 | April 30, 2021 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 3,518,053 | 36,648,752 | 781,435 | 8,350,473 |
| Distributions reinvested | 72,268 | 759,073 | 55,054 | 587,853 |
| Redemptions | (2,244,598) | (23,381,283) | (703,175) | (7,481,214) |
| Net increase | 1,345,723 | 14,026,542 | 133,314 | 1,457,112 |
| Advisor Class | | | | |
| Subscriptions | 107,890 | 1,128,144 | 84,581 | 900,844 |
| Distributions reinvested | 6,354 | 66,486 | 5,999 | 63,904 |
| Redemptions | (216,260) | (2,167,760) | (44,041) | (469,445) |
| Net increase (decrease) | (102,016) | (973,130) | 46,539 | 495,303 |
| Class C | | | | |
| Subscriptions | 23,876 | 247,614 | 27,785 | 296,107 |
| Distributions reinvested | 6,267 | 65,936 | 9,709 | 103,608 |
| Redemptions | (298,587) | (3,176,633) | (337,458) | (3,599,661) |
| Net decrease | (268,444) | (2,863,083) | (299,964) | (3,199,946) |
| Institutional Class | | | | |
| Subscriptions | 6,833,501 | 70,244,123 | 6,464,387 | 68,605,365 |
| Distributions reinvested | 231,554 | 2,418,651 | 216,565 | 2,307,750 |
| Redemptions | (7,769,842) | (80,401,157) | (7,845,171) | (83,207,549) |
| Net decrease | (704,787) | (7,738,383) | (1,164,219) | (12,294,434) |
| Institutional 2 Class | | | | |
| Subscriptions | 81,308 | 863,980 | 357,324 | 3,811,786 |
| Distributions reinvested | 25,441 | 266,469 | 27,703 | 294,403 |
| Redemptions | (448,541) | (4,693,853) | (205,282) | (2,165,875) |
| Net increase (decrease) | (341,792) | (3,563,404) | 179,745 | 1,940,314 |
| Institutional 3 Class | | | | |
| Subscriptions | 304,843 | 3,163,361 | 273,185 | 2,915,379 |
| Distributions reinvested | 13,836 | 144,475 | 12,411 | 132,126 |
| Redemptions | (130,911) | (1,333,915) | (304,786) | (3,254,435) |
| Net increase (decrease) | 187,768 | 1,973,921 | (19,190) | (206,930) |
| Total net increase (decrease) | 116,452 | 862,463 | (1,123,775) | (11,808,581) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 23 |
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 payment of sales charges, if any. 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 asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Class A |
| Year Ended 4/30/2022 | $10.71 | 0.21 | (0.94) | (0.73) | (0.21) | (0.21) |
| Year Ended 4/30/2021 | $10.24 | 0.22 | 0.47 | 0.69 | (0.22) | (0.22) |
| Year Ended 4/30/2020 | $10.46 | 0.24 | (0.22) | 0.02 | (0.24) | (0.24) |
| Year Ended 4/30/2019 | $10.23 | 0.27 | 0.23 | 0.50 | (0.27) | (0.27) |
| Year Ended 4/30/2018 | $10.38 | 0.27 | (0.15) | 0.12 | (0.27) | (0.27) |
| Advisor Class |
| Year Ended 4/30/2022 | $10.68 | 0.23 | (0.93) | (0.70) | (0.23) | (0.23) |
| Year Ended 4/30/2021 | $10.21 | 0.25 | 0.47 | 0.72 | (0.25) | (0.25) |
| Year Ended 4/30/2020 | $10.43 | 0.27 | (0.22) | 0.05 | (0.27) | (0.27) |
| Year Ended 4/30/2019 | $10.20 | 0.30 | 0.23 | 0.53 | (0.30) | (0.30) |
| Year Ended 4/30/2018 | $10.36 | 0.29 | (0.16) | 0.13 | (0.29) | (0.29) |
| Class C |
| Year Ended 4/30/2022 | $10.71 | 0.13 | (0.94) | (0.81) | (0.13) | (0.13) |
| Year Ended 4/30/2021 | $10.23 | 0.14 | 0.48 | 0.62 | (0.14) | (0.14) |
| Year Ended 4/30/2020 | $10.46 | 0.16 | (0.23) | (0.07) | (0.16) | (0.16) |
| Year Ended 4/30/2019 | $10.22 | 0.20 | 0.24 | 0.44 | (0.20) | (0.20) |
| Year Ended 4/30/2018 | $10.38 | 0.19 | (0.16) | 0.03 | (0.19) | (0.19) |
| Institutional Class |
| Year Ended 4/30/2022 | $10.69 | 0.23 | (0.94) | (0.71) | (0.23) | (0.23) |
| Year Ended 4/30/2021 | $10.21 | 0.25 | 0.48 | 0.73 | (0.25) | (0.25) |
| Year Ended 4/30/2020 | $10.44 | 0.27 | (0.23) | 0.04 | (0.27) | (0.27) |
| Year Ended 4/30/2019 | $10.21 | 0.30 | 0.23 | 0.53 | (0.30) | (0.30) |
| Year Ended 4/30/2018 | $10.36 | 0.29 | (0.15) | 0.14 | (0.29) | (0.29) |
| Institutional 2 Class |
| Year Ended 4/30/2022 | $10.66 | 0.24 | (0.94) | (0.70) | (0.24) | (0.24) |
| Year Ended 4/30/2021 | $10.18 | 0.26 | 0.48 | 0.74 | (0.26) | (0.26) |
| Year Ended 4/30/2020 | $10.41 | 0.27 | (0.22) | 0.05 | (0.28) | (0.28) |
| Year Ended 4/30/2019 | $10.18 | 0.30 | 0.23 | 0.53 | (0.30) | (0.30) |
| Year Ended 4/30/2018 | $10.33 | 0.30 | (0.15) | 0.15 | (0.30) | (0.30) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 4/30/2022 | $9.77 | (6.96%) | 0.85% | 0.74%(c) | 1.96% | 8% | $44,427 |
| Year Ended 4/30/2021 | $10.71 | 6.80% | 0.87% | 0.75%(c) | 2.09% | 5% | $34,289 |
| Year Ended 4/30/2020 | $10.24 | 0.17% | 0.86% | 0.75%(c) | 2.30% | 6% | $31,402 |
| Year Ended 4/30/2019 | $10.46 | 5.00% | 0.87% | 0.74%(c) | 2.67% | 17% | $31,998 |
| Year Ended 4/30/2018 | $10.23 | 1.10% | 0.88% | 0.74%(c) | 2.56% | 5% | $27,341 |
| Advisor Class |
| Year Ended 4/30/2022 | $9.75 | (6.65%) | 0.60% | 0.49%(c) | 2.21% | 8% | $1,707 |
| Year Ended 4/30/2021 | $10.68 | 7.08% | 0.62% | 0.50%(c) | 2.34% | 5% | $2,961 |
| Year Ended 4/30/2020 | $10.21 | 0.41% | 0.61% | 0.50%(c) | 2.54% | 6% | $2,354 |
| Year Ended 4/30/2019 | $10.43 | 5.28% | 0.62% | 0.49%(c) | 2.92% | 17% | $2,254 |
| Year Ended 4/30/2018 | $10.20 | 1.25% | 0.63% | 0.49%(c) | 2.83% | 5% | $1,931 |
| Class C |
| Year Ended 4/30/2022 | $9.77 | (7.65%) | 1.60% | 1.49%(c) | 1.20% | 8% | $4,363 |
| Year Ended 4/30/2021 | $10.71 | 6.11% | 1.62% | 1.50%(c) | 1.35% | 5% | $7,658 |
| Year Ended 4/30/2020 | $10.23 | (0.68%) | 1.61% | 1.50%(c) | 1.54% | 6% | $10,387 |
| Year Ended 4/30/2019 | $10.46 | 4.32% | 1.62% | 1.49%(c) | 1.92% | 17% | $11,161 |
| Year Ended 4/30/2018 | $10.22 | 0.25% | 1.63% | 1.49%(c) | 1.81% | 5% | $13,508 |
| Institutional Class |
| Year Ended 4/30/2022 | $9.75 | (6.74%) | 0.60% | 0.49%(c) | 2.21% | 8% | $347,070 |
| Year Ended 4/30/2021 | $10.69 | 7.18% | 0.62% | 0.50%(c) | 2.34% | 5% | $388,017 |
| Year Ended 4/30/2020 | $10.21 | 0.31% | 0.61% | 0.50%(c) | 2.54% | 6% | $382,665 |
| Year Ended 4/30/2019 | $10.44 | 5.27% | 0.62% | 0.49%(c) | 2.92% | 17% | $343,276 |
| Year Ended 4/30/2018 | $10.21 | 1.35% | 0.63% | 0.49%(c) | 2.82% | 5% | $365,455 |
| Institutional 2 Class |
| Year Ended 4/30/2022 | $9.72 | (6.72%) | 0.55% | 0.44% | 2.25% | 8% | $8,777 |
| Year Ended 4/30/2021 | $10.66 | 7.26% | 0.56% | 0.44% | 2.40% | 5% | $13,265 |
| Year Ended 4/30/2020 | $10.18 | 0.37% | 0.55% | 0.44% | 2.60% | 6% | $10,846 |
| Year Ended 4/30/2019 | $10.41 | 5.34% | 0.56% | 0.43% | 2.98% | 17% | $10,662 |
| Year Ended 4/30/2018 | $10.18 | 1.42% | 0.56% | 0.42% | 2.89% | 5% | $7,363 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 25 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $10.68 | 0.24 | (0.94) | (0.70) | (0.24) | (0.24) |
| Year Ended 4/30/2021 | $10.21 | 0.26 | 0.47 | 0.73 | (0.26) | (0.26) |
| Year Ended 4/30/2020 | $10.43 | 0.28 | (0.22) | 0.06 | (0.28) | (0.28) |
| Year Ended 4/30/2019 | $10.20 | 0.31 | 0.23 | 0.54 | (0.31) | (0.31) |
| Year Ended 4/30/2018 | $10.35 | 0.30 | (0.15) | 0.15 | (0.30) | (0.30) |
| 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) | The benefits derived from expense reductions had an impact of less than 0.01%. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 26 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $9.74 | (6.66%) | 0.50% | 0.39% | 2.31% | 8% | $6,708 |
| Year Ended 4/30/2021 | $10.68 | 7.19% | 0.51% | 0.39% | 2.45% | 5% | $5,348 |
| Year Ended 4/30/2020 | $10.21 | 0.52% | 0.50% | 0.39% | 2.64% | 6% | $5,307 |
| Year Ended 4/30/2019 | $10.43 | 5.39% | 0.51% | 0.38% | 3.02% | 17% | $3,231 |
| Year Ended 4/30/2018 | $10.20 | 1.46% | 0.52% | 0.38% | 2.95% | 5% | $866 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 27 |
Notes to Financial Statements
April 30, 2022
Note 1. Organization
Columbia California Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust (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 Delaware statutory trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. 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. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
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
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
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.
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.
| 28 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
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.
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
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
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
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.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 29 |
Notes to Financial Statements (continued)
April 30, 2022
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 management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended April 30, 2022 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transactions with affiliates
The Fund is permitted to engage in purchase and/or sale transactions with affiliates and/or accounts that have a common investment manager (or affiliated investment managers), common directors/trustees, and/or common officers under specified conditions outlined in a policy adopted by the Board, pursuant to Rule 17a-7 under the 1940 Act (cross-trades). The Board relies on quarterly written representation from the Fund’s Chief Compliance Officer that cross-trades complied with approved policy.
For the year ended April 30, 2022, the Fund engaged in cross-trades as follows:
| Purchases ($) | Sales ($) | Net realized gain (loss) ($) |
| 13,620,848 | — | — |
| 30 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended April 30, 2022, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.11 |
| Advisor Class | 0.10 |
| Class C | 0.11 |
| Institutional Class | 0.10 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended April 30, 2022, these minimum account balance fees reduced total expenses of the Fund by $20.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A shares of the Fund. Also under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class C shares of the Fund and a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 31 |
Notes to Financial Statements (continued)
April 30, 2022
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended April 30, 2022, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 21,749 |
| Class C | — | 1.00(b) | 141 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | September 1, 2021
through
August 31, 2022 | Prior to
September 1, 2021 |
| Class A | 0.75% | 0.75% |
| Advisor Class | 0.50 | 0.50 |
| Class C | 1.50 | 1.50 |
| Institutional Class | 0.50 | 0.50 |
| Institutional 2 Class | 0.45 | 0.44 |
| Institutional 3 Class | 0.40 | 0.39 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2022, these differences were primarily due to differing treatment for trustees’ deferred compensation, distributions, capital loss carryforward, re-characterization of distributions for investments and investments in partnerships. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
| 32 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
The following reclassifications were made:
Excess of distributions
over net investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| 32 | (32) | — |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended April 30, 2022 | Year Ended April 30, 2021 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 12,611 | 9,771,663 | — | 9,784,274 | 52,808 | 10,574,136 | — | 10,626,944 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At April 30, 2022, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 788,721 | — | (4,696,124) | (9,693,781) |
At April 30, 2022, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 416,084,892 | 3,494,873 | (13,188,654) | (9,693,781) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at April 30, 2022, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended April 30, 2022, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (4,558,845) | (137,279) | (4,696,124) | — |
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.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $33,021,856 and $45,203,500, respectively, for the year ended April 30, 2022. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 33 |
Notes to Financial Statements (continued)
April 30, 2022
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended April 30, 2022.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended April 30, 2022.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
| 34 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
The pandemic caused by coronavirus disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such events could have a significant adverse impact on the value and risk profile of the Fund.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 35 |
Notes to Financial Statements (continued)
April 30, 2022
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At April 30, 2022, one unaffiliated shareholder of record owned 54.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of record owned 16.6% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
| 36 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 37 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust and Shareholders of Columbia California Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia California Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust, referred to hereafter as the "Fund") as of April 30, 2022, the related statement of operations for the year ended April 30, 2022, the statement of changes in net assets for each of the two years in the period ended April 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended April 30, 2022 and the financial highlights for each of the five years in the period ended April 30, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022 by correspondence with the custodian and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
June 23, 2022
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
| 38 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended April 30, 2022. Shareholders will be notified in early 2023 of the amounts for use in preparing 2022 income tax returns.
Exempt-
interest
dividends | |
| 99.87% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 176 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 39 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney, specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 176 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 176 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee) since 2019; Director, Apollo Commercial Real Estate Finance, Inc. since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 174 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 174 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
| 40 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 174 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 176 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2020; former Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 176 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 176 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 174 | None |
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 41 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 174 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 176 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 176 | Director, Blue Cross Blue Shield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation since 1998 |
| 42 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2021; Advisor, Paradigm Asset Management, November 2016-December 2021; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 174 | Former Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2012-2019; Director, Chair of Audit Committee, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2019; Independent Director, Investment Committee and Valuation Committee, Sarona Asset Management, since 2019 |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 176 | Former Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as Directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC since April 2015; President and Principal Executive Officer of the Columbia Funds since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 176 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since January 2022 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 43 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and Head of Global Operations & Investor Services, Columbia Management Investment Advisers, LLC, since March 2022 (previously Vice President, Head of North American Operations, and Co-Head of Global Operations, June 2019 to February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001-January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds, 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
| 44 | Columbia California Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021, through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Columbia California Intermediate Municipal Bond Fund | Annual Report 2022
| 45 |
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[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia California Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
April 30, 2022
Columbia Virginia Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Virginia Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which 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; visiting columbiathreadneedleus.com/investor/; 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 filings are 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
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
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
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks current income exempt from U.S. federal income tax and Virginia individual income tax, consistent with moderate fluctuation of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2016
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
*Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the Fund.
| Average annual total returns (%) (for the period ended April 30, 2022) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 12/05/89 | -7.32 | 0.64 | 1.24 |
| | Including sales charges | | -10.08 | 0.04 | 0.94 |
| Advisor Class* | 03/19/13 | -7.08 | 0.91 | 1.51 |
| Class C | Excluding sales charges | 06/17/92 | -8.01 | -0.11 | 0.49 |
| | Including sales charges | | -8.92 | -0.11 | 0.49 |
| Institutional Class | 09/20/89 | -7.09 | 0.89 | 1.50 |
| Institutional 3 Class* | 03/01/17 | -7.08 | 0.97 | 1.54 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | -7.28 | 1.62 | 2.21 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
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.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (April 30, 2012 — April 30, 2022)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Virginia Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at April 30, 2022) |
| AAA rating | 8.6 |
| AA rating | 57.9 |
| A rating | 15.2 |
| BBB rating | 11.7 |
| BB rating | 0.6 |
| Not rated | 6.0 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended April 30, 2022, Class A shares of Columbia Virginia Intermediate Municipal Bond Fund returned -7.32% excluding sales charges. Institutional Class shares of the Fund returned –7.09%. The Fund’s benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, returned -7.28% for the same time period.
Market overview
As the annual period began in May 2021, municipal bonds were one of the few bright spots for U.S. fixed income. Upward pressure on U.S. Treasury yields, driven by fears of inflation, pressured most other sectors. However, municipal bond performance was supported by record inflows, improving credit fundamentals and substantial fiscal stimulus from the federal government. Notably, tax revenue performance was rather strong, with projected deficits turning into actual surpluses for many state and local governments. Interest rate volatility led most fixed-income sectors to negative returns for the third quarter of 2021, but municipal bond performance remained one of the few positive corners of the U.S. fixed-income market.
The year 2021 ended with yet another new COVID-19 variant emerging, but despite higher transmissibility, the Omicron variant appeared to be less severe than originally feared. With economic growth and employment seemingly on track, the U.S. Federal Reserve (Fed) began tapering its asset purchases while acknowledging that conditions pushing inflation higher could persist. This served to elevate interest rate volatility for the fourth calendar quarter of 2021. Congressional passage of an infrastructure spending plan provided support to the municipal bond sector via federal spending, though movement toward higher individual tax rates, which could have boosted demand, was left out of the final bill. However, entering 2022 with relatively full valuations and low absolute yields left little margin for error within the municipal bond market, and as messaging from the Fed grew increasingly hawkish, municipal bonds could no longer remain immune from rising interest rates. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
The first quarter of 2022 closed with the benchmark down 5.71% in the worst drawdown since the COVID-19 sell-off and the worst first quarter return since 1980. As is often the case with municipal bonds, negative returns precipitated outflows, which, in turn, led to more negative returns. Long and intermediate national funds, as well as high-yield funds, experienced the heaviest pressure. A silver lining to the sell-off was that credit fundamentals were not a concern, as evidenced by the modest differential between below-investment grade and investment-grade returns. A lack of high-yield supply helped to keep those returns relatively tight, and lower new issue supply avoided exacerbating the returns. Conditions persisted into the last month of the annual period, with the Bloomberg Municipal Bond Index posting a return of -2.77% in April 2022, and municipal bonds underperforming U.S. Treasuries for the month. However, rising interest rates coupled with outflows had a positive side effect for the municipal bond market. Excluding the brief COVID-19 sell-off, tax-exempt yields had not seen the levels of the first months of 2022 since early 2019. Indeed, versus other fixed-income sectors, taxable equivalent yields were attractive enough to begin enticing even bank and insurance buyers back into the municipal market. Buyers of municipal credit were also drawn in by the solid fundamentals underpinning state and local governments, which on the back of record tax collections, substantial federal aid and a growing economy, remained rather healthy. Credit upgrades outpaced downgrades, and defaults remained exceptionally low.
The Virginia intermediate municipal market slightly underperformed the national market, as measured by the Fund’s benchmark. The state’s market maintained a modestly longer duration than the benchmark, which hurt as interest rates rose during the period. Securities rated AA underperformed the national average, which also contributed to the slight underperformance of the state’s intermediate municipal market. On the positive side, however, the state’s lack of prepaid bonds in the gas sector supported the state’s market as these securities underperformed in the national market. Additionally, the state’s securities in the transportation and hospital sectors generally outperformed their national counterparts.
The Fund’s notable contributors during the period
| • | As interest rates rose during the period, the Fund’s duration, which was shorter than that of the benchmark, contributed to Fund performance. |
| • | The Fund benefited from its overweighted exposures to lower investment-grade as well as holdings of non-investment grade (high-yield) securities and hospital and transportation sectors during the period. |
| • | Security selection benefited Fund performance, particularly within the AA-rated category as well as within the hospital, continuing care retirement community (CCRC) (namely, Sunnyside Presbyterian CCRC and Westminster Canterbury CCRC) and leasing sectors. |
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
The Fund’s notable detractors during the period
| • | The Fund’s underweighted allocation to local Virginia general obligation bonds during the period detracted from performance versus the benchmark. |
| • | Security selection within the housing sector also weighed on Fund performance during the period. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund 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.
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 |
| | Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual |
| Class A | 1,000.00 | 1,000.00 | 929.80 | 1,020.89 | 3.90 | 4.08 | 0.81 |
| Advisor Class | 1,000.00 | 1,000.00 | 931.10 | 1,022.14 | 2.70 | 2.82 | 0.56 |
| Class C | 1,000.00 | 1,000.00 | 926.40 | 1,017.15 | 7.49 | 7.85 | 1.56 |
| Institutional Class | 1,000.00 | 1,000.00 | 931.00 | 1,022.14 | 2.70 | 2.82 | 0.56 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 930.70 | 1,022.54 | 2.31 | 2.42 | 0.48 |
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.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 7 |
Portfolio of Investments
April 30, 2022
(Percentages represent value of investments compared to net assets)
Investments in securities
| Floating Rate Notes 0.7% |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Variable Rate Demand Notes 0.7% |
| Virginia College Building Authority(a),(b) |
| Revenue Bonds |
| University of Richmond Project |
| Series 2009 (Wells Fargo Bank) |
| 11/01/2036 | 0.350% | | 700,000 | 700,000 |
Total Floating Rate Notes
(Cost $700,000) | 700,000 |
|
| Municipal Bonds 99.8% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 6.2% |
| Capital Region Airport Commission |
| Refunding Revenue Bonds |
| Series 2016A |
| 07/01/2034 | 4.000% | | 1,125,000 | 1,134,821 |
| Metropolitan Washington Airports Authority(c) |
| Refunding Revenue Bonds |
| Airport System |
| Series 2019A |
| 10/01/2033 | 5.000% | | 2,000,000 | 2,180,030 |
| Forward Delivery |
| Series 2020A |
| 10/01/2032 | 5.000% | | 2,000,000 | 2,197,414 |
| Norfolk Airport Authority |
| Revenue Bonds |
| Series 2019 |
| 07/01/2033 | 5.000% | | 1,000,000 | 1,100,275 |
| Total | 6,612,540 |
| Higher Education 6.1% |
| Amherst Industrial Development Authority |
| Refunding Revenue Bonds |
| Educational Facilities Sweet Briar Institute |
| Series 2006 |
| 09/01/2026 | 5.000% | | 665,000 | 640,904 |
| Virginia College Building Authority |
| Revenue Bonds |
| Washington & Lee University Project |
| Series 1998 (NPFGC) |
| 01/01/2026 | 5.250% | | 2,555,000 | 2,698,426 |
| Virginia Commonwealth University |
| Refunding Revenue Bonds |
| General Pledge |
| Series 2018A |
| 11/01/2031 | 5.000% | | 400,000 | 448,392 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Virginia Polytechnic Institute & State University |
| Revenue Bonds |
| General Dorm and Dining Hall |
| Series 2015A |
| 06/01/2027 | 4.000% | | 2,650,000 | 2,761,218 |
| Total | 6,548,940 |
| Hospital 11.7% |
| Arlington County Industrial Development Authority |
| Refunding Revenue Bonds |
| Virginia Hospital Center |
| Series 2020 |
| 07/01/2033 | 5.000% | | 400,000 | 447,095 |
| Fairfax County Industrial Development Authority |
| Refunding Revenue Bonds |
| Inova Health System |
| Series 2018 |
| 05/15/2026 | 5.000% | | 1,500,000 | 1,637,396 |
| Lynchburg Economic Development Authority |
| Refunding Revenue Bonds |
| Centra Health Obligation Group |
| Series 2021 |
| 01/01/2036 | 5.000% | | 875,000 | 978,191 |
| Norfolk Economic Development Authority |
| Refunding Revenue Bonds |
| Sentara Healthcare |
| Series 2012B |
| 11/01/2027 | 5.000% | | 1,735,000 | 1,763,402 |
| Series 2018A (Mandatory Put 11/01/28) |
| 11/01/2048 | 5.000% | | 300,000 | 338,504 |
| Roanoke Economic Development Authority |
| Refunding Revenue Bonds |
| Carilion Clinic Obligated Group |
| Series 2020 (Mandatory Put 07/01/30) |
| 07/01/2053 | 5.000% | | 2,500,000 | 2,786,093 |
| Stafford County Economic Development Authority |
| Refunding Revenue Bonds |
| Mary Washington Healthcare |
| Series 2016 |
| 06/15/2030 | 5.000% | | 1,300,000 | 1,397,967 |
| 06/15/2033 | 5.000% | | 200,000 | 214,271 |
| 06/15/2035 | 5.000% | | 1,000,000 | 1,069,760 |
| Virginia Small Business Financing Authority |
| Refunding Revenue Bonds |
| Sentara Healthcare |
| Series 2020 |
| 11/01/2030 | 5.000% | | 220,000 | 250,748 |
| 11/01/2031 | 5.000% | | 270,000 | 306,972 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Winchester Economic Development Authority |
| Refunding Revenue Bonds |
| Valley Health System Obligation Group |
| Series 2015 |
| 01/01/2032 | 5.000% | | 1,250,000 | 1,334,368 |
| Total | 12,524,767 |
| Investor Owned 0.9% |
| Louisa Industrial Development Authority |
| Revenue Bonds |
| Virginia Electric and Power Co. Project |
| Series 2008B (Mandatory Put 09/02/25) |
| 11/01/2035 | 0.750% | | 1,000,000 | 926,078 |
| Local Appropriation 3.8% |
| Arlington County Industrial Development Authority |
| Refunding Revenue Bonds |
| Series 2017 |
| 02/15/2029 | 5.000% | | 1,000,000 | 1,118,802 |
| Fairfax County Economic Development Authority |
| Revenue Bonds |
| Metrorail Parking Systems |
| Series 2017 |
| 04/01/2033 | 5.000% | | 745,000 | 821,097 |
| Henry County Industrial Development Authority |
| Revenue Bonds |
| Public Facility Lease |
| Series 2018 |
| 11/01/2036 | 4.000% | | 1,000,000 | 1,032,253 |
| Loudoun County Economic Development Authority |
| Revenue Bonds |
| Series 2015 |
| 12/01/2028 | 5.000% | | 1,035,000 | 1,098,158 |
| Total | 4,070,310 |
| Local General Obligation 7.5% |
| City of Alexandria Virginia |
| Unlimited General Obligation Refunding Bonds |
| Series 2017C |
| 07/01/2030 | 4.000% | | 1,000,000 | 1,052,867 |
| City of Richmond |
| Unlimited General Obligation Bonds |
| Public Improvement |
| Series 2015B |
| 03/01/2028 | 4.000% | | 2,000,000 | 2,074,315 |
| County of Arlington |
| Unlimited General Obligation Bonds |
| Series 2017 |
| 08/15/2034 | 4.000% | | 2,000,000 | 2,084,107 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| County of Fairfax |
| Unlimited General Obligation Public Improvement Bonds |
| Series 2019A |
| 10/01/2035 | 5.000% | | 1,000,000 | 1,129,094 |
| Virginia Public School Authority |
| Revenue Bonds |
| Series 2021 |
| 08/15/2028 | 5.000% | | 1,500,000 | 1,706,254 |
| Total | 8,046,637 |
| Multi-Family 1.8% |
| Virginia Housing Development Authority |
| Revenue Bonds |
| Series 2020B (HUD) |
| 03/01/2031 | 1.650% | | 1,630,000 | 1,428,038 |
| Series 2020E |
| 07/01/2035 | 2.100% | | 650,000 | 543,053 |
| Total | 1,971,091 |
| Other Bond Issue 2.2% |
| Montgomery County Economic Development Authority |
| Refunding Revenue Bonds |
| Virginia Tech Foundation |
| Series 2017A |
| 06/01/2029 | 5.000% | | 200,000 | 222,463 |
| Series 2019 |
| 06/01/2031 | 5.000% | | 1,200,000 | 1,366,906 |
| Western Regional Jail Authority |
| Refunding Revenue Bonds |
| Series 2015 |
| 12/01/2027 | 5.000% | | 750,000 | 813,684 |
| Total | 2,403,053 |
| Pool / Bond Bank 1.0% |
| Virginia Resources Authority |
| Refunding Revenue Bonds |
| Virginia Infrastructure Pooled |
| Series 2017F |
| 11/01/2034 | 4.000% | | 1,000,000 | 1,046,356 |
| Ports 1.7% |
| Virginia Port Authority Commonwealth Port Fund(c) |
| Refunding Revenue Bonds |
| Series 2020B |
| 07/01/2028 | 5.000% | | 1,615,000 | 1,804,477 |
| Refunded / Escrowed 15.8% |
| Albermarle County Economic Development Authority |
| Prerefunded 01/01/23 Revenue Bonds |
| Westminster-Canterbury of the Blue Ridge |
| Series 2012 |
| 01/01/2032 | 4.625% | | 2,000,000 | 2,035,473 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 9 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Chesapeake Bay Bridge & Tunnel District |
| Refunding Revenue Bonds |
| General Resolution |
| Series 1998 Escrowed to Maturity (NPFGC) |
| 07/01/2025 | 5.500% | | 4,000,000 | 4,274,275 |
| City of Norfolk |
| Prerefunded 08/01/28 Unlimited General Obligation Bonds |
| Capital Improvement |
| 08/01/2033 | 5.000% | | 1,000,000 | 1,138,083 |
| Greater Richmond Convention Center Authority |
| Prerefunded 06/15/25 Revenue Bonds |
| Series 2015 |
| 06/15/2029 | 5.000% | | 1,350,000 | 1,454,663 |
| 06/15/2030 | 5.000% | | 1,540,000 | 1,659,393 |
| Hampton Roads Sanitation District |
| Prerefunded 08/01/26 Revenue Bonds |
| Subordinated Series 2016A |
| 08/01/2031 | 5.000% | | 2,000,000 | 2,199,694 |
| Hampton Roads Transportation Accountability Commission |
| Prerefunded 01/01/28 Revenue Bonds |
| Senior Lien Hampton Roads Transportation Fund |
| Series 2018A |
| 07/01/2032 | 5.000% | | 1,150,000 | 1,284,747 |
| Hanover County Economic Development Authority |
| Prerefunded 07/01/22 Revenue Bonds |
| Covenant Woods |
| Series 2012A |
| 07/01/2022 | 4.000% | | 210,000 | 210,864 |
| Rappahannock Regional Jail Authority |
| Prerefunded 10/01/25 Revenue Bonds |
| Series 2015 |
| 10/01/2030 | 5.000% | | 1,725,000 | 1,867,105 |
| Western Regional Jail Authority |
| Prerefunded 12/01/25 Revenue Bonds |
| Series 2015 |
| 12/01/2027 | 5.000% | | 750,000 | 813,148 |
| Total | 16,937,445 |
| Retirement Communities 6.0% |
| Albemarle County Economic Development Authority |
| Refunding Revenue Bonds |
| Westminster-Canterbury of the Blue Ridge |
| Series 2022 |
| 06/01/2042 | 4.000% | | 1,000,000 | 979,673 |
| Hanover County Economic Development Authority |
| Refunding Revenue Bonds |
| Covenant Woods |
| Series 2018 |
| 07/01/2038 | 5.000% | | 380,000 | 393,062 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Henrico County Economic Development Authority |
| Refunding Revenue Bonds |
| Westminster Canterbury of Richmond |
| Series 2020 |
| 10/01/2033 | 4.000% | | 500,000 | 509,307 |
| Westminster Canterbury Project |
| Series 2018 |
| 10/01/2037 | 5.000% | | 1,500,000 | 1,583,936 |
| Rockingham County Economic Development Authority |
| Refunding Revenue Bonds |
| Sunnyside Presbyterian Home |
| Series 2020 |
| 12/01/2039 | 5.000% | | 2,000,000 | 2,152,589 |
| Virginia Small Business Financing Authority |
| Refunding Revenue Bonds |
| National Senior Campuses |
| Series 2020 |
| 01/01/2027 | 5.000% | | 325,000 | 347,842 |
| 01/01/2029 | 5.000% | | 400,000 | 435,062 |
| Total | 6,401,471 |
| Sales Tax 2.0% |
| Northern Virginia Transportation Authority |
| Revenue Bonds |
| Series 2014 |
| 06/01/2032 | 5.000% | | 2,000,000 | 2,102,159 |
| Special Non Property Tax 0.5% |
| Hampton Roads Transportation Accountability Commission |
| Revenue Bonds |
| Senior Lien |
| Series 2020A |
| 07/01/2033 | 5.000% | | 500,000 | 568,045 |
| Special Property Tax 4.8% |
| Dulles Town Center Community Development Authority |
| Refunding Special Assessment Bonds |
| Dulles Town Center Project |
| Series 2012 |
| 03/01/2023 | 4.000% | | 1,000,000 | 995,130 |
| Fairfax County Economic Development Authority |
| Refunding Special Tax Bonds |
| Silver Line Phase I Project |
| Series 2016 |
| 04/01/2031 | 4.000% | | 1,000,000 | 1,042,731 |
| 04/01/2032 | 4.000% | | 1,000,000 | 1,041,224 |
| Marquis Community Development Authority of York County(d),(e),(f) |
| Revenue Bonds |
| Convertible |
| Series 2015 |
| 09/01/2045 | 7.500% | | 644,000 | 298,546 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Marquis Community Development Authority of York County(e) |
| Tax Allocation Bonds |
| Series 2007B |
| 09/01/2041 | 5.625% | | 2,084,000 | 949,966 |
| Marquis Community Development Authority of York County(g) |
| Tax Allocation Bonds |
| Series 2007C |
| 09/01/2041 | 0.000% | | 3,164,000 | 151,628 |
| Virginia Gateway Community Development Authority |
| Refunding Special Assessment Bonds |
| Series 2012 |
| 03/01/2025 | 5.000% | | 690,000 | 689,950 |
| Total | 5,169,175 |
| State Appropriated 5.5% |
| Virginia College Building Authority |
| Revenue Bonds |
| 21st Century College Program |
| Series 2017 |
| 02/01/2034 | 4.000% | | 1,500,000 | 1,551,593 |
| Virginia Commonwealth Transportation Board |
| Refunding Revenue Bonds |
| Northern Virginia Transportation District Program |
| Series 2019 |
| 05/15/2031 | 5.000% | | 1,000,000 | 1,128,866 |
| Virginia Public Building Authority |
| Revenue Bonds |
| Series 2018A |
| 08/01/2035 | 4.000% | | 1,500,000 | 1,541,638 |
| Series 2019A |
| 08/01/2031 | 5.000% | | 1,500,000 | 1,713,591 |
| Total | 5,935,688 |
| Transportation 11.8% |
| Virginia Commonwealth Transportation Board |
| Refunding Revenue Bonds |
| GARVEE Notes |
| Series 2017 |
| 03/15/2028 | 5.000% | | 1,000,000 | 1,112,768 |
| Revenue Bonds |
| Series 2016 |
| 05/15/2030 | 4.000% | | 500,000 | 520,146 |
| Series 2018 |
| 05/15/2036 | 4.000% | | 2,000,000 | 2,129,742 |
| Washington Metropolitan Area Transit Authority |
| Refunding Revenue Bonds |
| Series 2017A-1 |
| 07/01/2029 | 5.000% | | 2,500,000 | 2,762,584 |
| Revenue Bonds |
| Series 2017B |
| 07/01/2034 | 5.000% | | 2,000,000 | 2,181,927 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2018 |
| 07/01/2036 | 5.000% | | 500,000 | 544,486 |
| 07/01/2037 | 5.000% | | 1,000,000 | 1,088,473 |
| Series 2020A |
| 07/15/2037 | 5.000% | | 2,000,000 | 2,256,088 |
| Total | 12,596,214 |
| Turnpike / Bridge / Toll Road 8.4% |
| City of Chesapeake Expressway Toll Road |
| Revenue Bonds |
| Transportation System |
| Series 2012A |
| 07/15/2023 | 5.000% | | 1,025,000 | 1,030,626 |
| 07/15/2027 | 5.000% | | 1,000,000 | 1,004,773 |
| Metropolitan Washington Airports Authority Dulles Toll Road(g) |
| Revenue Bonds |
| Capital Appreciation - 2nd Senior Lien |
| Series 2009B (AGM) |
| 10/01/2023 | 0.000% | | 5,000,000 | 4,805,222 |
| Virginia Small Business Financing Authority(c) |
| Refunding Revenue Bonds |
| Senior Lien - 95 Express Lanes LLC Project |
| Series 2022 |
| 01/01/2038 | 5.000% | | 500,000 | 535,755 |
| Senior Lien - I-495 HOT Lanes Project |
| Series 2022 |
| 06/30/2038 | 5.000% | | 300,000 | 328,940 |
| 12/31/2038 | 5.000% | | 300,000 | 328,940 |
| Virginia Small Business Financing Authority(c),(h) |
| Revenue Bonds |
| Senior Lien - Elizabeth River Crossings Opco LLC |
| Series 2022 |
| 01/01/2038 | 4.000% | | 1,000,000 | 978,991 |
| Total | 9,013,247 |
| Water & Sewer 2.1% |
| Fairfax County Water Authority |
| Refunding Revenue Bonds |
| Series 2017 |
| 04/01/2029 | 5.000% | | 2,000,000 | 2,218,838 |
Total Municipal Bonds
(Cost $111,728,539) | 106,896,531 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 11 |
Portfolio of Investments (continued)
April 30, 2022
| Money Market Funds 0.2% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(i) | 108,456 | 108,446 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(i) | 158,134 | 158,134 |
Total Money Market Funds
(Cost $266,590) | 266,580 |
Total Investments in Securities
(Cost: $112,695,129) | 107,863,111 |
| Other Assets & Liabilities, Net | | (758,674) |
| Net Assets | 107,104,437 |
Notes to Portfolio of Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 2022. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $298,546, which represents 0.28% of total net assets. |
| (e) | Partial payment received at last interest date. |
| (f) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of April 30, 2022. |
| (g) | Zero coupon bond. |
| (h) | Represents a security purchased on a when-issued basis. |
| (i) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| HUD | Department of Housing and Urban Development |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | 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.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
Fair value measurements (continued)
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 April 30, 2022:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Floating Rate Notes | — | 700,000 | — | 700,000 |
| Municipal Bonds | — | 106,896,531 | — | 106,896,531 |
| Money Market Funds | 266,580 | — | — | 266,580 |
| Total Investments in Securities | 266,580 | 107,596,531 | — | 107,863,111 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 13 |
Statement of Assets and Liabilities
April 30, 2022
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $112,695,129) | $107,863,111 |
| Cash | 172 |
| Receivable for: | |
| Capital shares sold | 223,796 |
| Interest | 1,285,408 |
| Expense reimbursement due from Investment Manager | 260 |
| Prepaid expenses | 5,888 |
| Total assets | 109,378,635 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,105,640 |
| Capital shares purchased | 837,466 |
| Distributions to shareholders | 172,466 |
| Management services fees | 1,390 |
| Distribution and/or service fees | 209 |
| Transfer agent fees | 4,204 |
| Compensation of board members | 135,356 |
| Other expenses | 17,467 |
| Total liabilities | 2,274,198 |
| Net assets applicable to outstanding capital stock | $107,104,437 |
| Represented by | |
| Paid in capital | 112,425,298 |
| Total distributable earnings (loss) | (5,320,861) |
| Total - representing net assets applicable to outstanding capital stock | $107,104,437 |
| Class A | |
| Net assets | $25,627,263 |
| Shares outstanding | 2,628,171 |
| Net asset value per share | $9.75 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.05 |
| Advisor Class | |
| Net assets | $2,880,845 |
| Shares outstanding | 295,213 |
| Net asset value per share | $9.76 |
| Class C | |
| Net assets | $1,247,546 |
| Shares outstanding | 127,822 |
| Net asset value per share | $9.76 |
| Institutional Class | |
| Net assets | $19,847,798 |
| Shares outstanding | 2,035,748 |
| Net asset value per share | $9.75 |
| Institutional 3 Class | |
| Net assets | $57,500,985 |
| Shares outstanding | 5,883,313 |
| Net asset value per share | $9.77 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Operations
Year Ended April 30, 2022
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $391 |
| Interest | 3,418,080 |
| Total income | 3,418,471 |
| Expenses: | |
| Management services fees | 613,778 |
| Distribution and/or service fees | |
| Class A | 73,094 |
| Class C | 17,200 |
| Transfer agent fees | |
| Class A | 27,011 |
| Advisor Class | 2,497 |
| Class C | 1,595 |
| Institutional Class | 20,972 |
| Institutional 3 Class | 3,960 |
| Compensation of board members | 26,257 |
| Custodian fees | 1,299 |
| Printing and postage fees | 12,844 |
| Registration fees | 16,267 |
| Audit fees | 29,500 |
| Legal fees | 12,154 |
| Compensation of chief compliance officer | 20 |
| Other | 11,219 |
| Total expenses | 869,667 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (110,884) |
| Expense reduction | (20) |
| Total net expenses | 758,763 |
| Net investment income | 2,659,708 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 172,287 |
| Net realized gain | 172,287 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (11,605,134) |
| Net change in unrealized appreciation (depreciation) | (11,605,134) |
| Net realized and unrealized loss | (11,432,847) |
| Net decrease in net assets resulting from operations | $(8,773,139) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 15 |
Statement of Changes in Net Assets
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations | | |
| Net investment income | $2,659,708 | $3,364,877 |
| Net realized gain | 172,287 | 74,407 |
| Net change in unrealized appreciation (depreciation) | (11,605,134) | 4,565,772 |
| Net increase (decrease) in net assets resulting from operations | (8,773,139) | 8,005,056 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (662,548) | (573,166) |
| Advisor Class | (69,204) | (35,603) |
| Class C | (26,297) | (27,718) |
| Institutional Class | (566,719) | (618,517) |
| Institutional 3 Class | (1,925,905) | (2,249,860) |
| Total distributions to shareholders | (3,250,673) | (3,504,864) |
| Decrease in net assets from capital stock activity | (23,101,611) | (1,298,995) |
| Total increase (decrease) in net assets | (35,125,423) | 3,201,197 |
| Net assets at beginning of year | 142,229,860 | 139,028,663 |
| Net assets at end of year | $107,104,437 | $142,229,860 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | April 30, 2022 | April 30, 2021 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 334,671 | 3,552,896 | 622,057 | 6,699,388 |
| Distributions reinvested | 43,654 | 459,916 | 32,201 | 346,743 |
| Redemptions | (483,983) | (5,010,014) | (225,524) | (2,426,151) |
| Net increase (decrease) | (105,658) | (997,202) | 428,734 | 4,619,980 |
| Advisor Class | | | | |
| Subscriptions | 212,914 | 2,282,013 | 174,907 | 1,885,006 |
| Distributions reinvested | 5,397 | 56,657 | 3,278 | 35,337 |
| Redemptions | (130,437) | (1,375,418) | (34,679) | (366,346) |
| Net increase | 87,874 | 963,252 | 143,506 | 1,553,997 |
| Class C | | | | |
| Subscriptions | 10,425 | 112,380 | 52,738 | 569,956 |
| Distributions reinvested | 2,363 | 25,037 | 2,435 | 26,241 |
| Redemptions | (67,262) | (712,524) | (62,256) | (671,157) |
| Net decrease | (54,474) | (575,107) | (7,083) | (74,960) |
| Institutional Class | | | | |
| Subscriptions | 229,441 | 2,443,592 | 470,262 | 5,051,695 |
| Distributions reinvested | 42,088 | 443,610 | 40,814 | 439,425 |
| Redemptions | (488,357) | (5,156,820) | (613,050) | (6,610,693) |
| Net decrease | (216,828) | (2,269,618) | (101,974) | (1,119,573) |
| Institutional 3 Class | | | | |
| Subscriptions | 301,861 | 3,227,555 | 781,373 | 8,440,077 |
| Distributions reinvested | 8,388 | 88,741 | 7,327 | 79,105 |
| Redemptions | (2,246,602) | (23,539,232) | (1,370,751) | (14,797,621) |
| Net decrease | (1,936,353) | (20,222,936) | (582,051) | (6,278,439) |
| Total net decrease | (2,225,439) | (23,101,611) | (118,868) | (1,298,995) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 17 |
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 payment of sales charges, if any. 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 asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A |
| Year Ended 4/30/2022 | $10.76 | 0.19 | (0.96) | (0.77) | (0.20) | (0.04) | (0.24) |
| Year Ended 4/30/2021 | $10.43 | 0.22 | 0.34 | 0.56 | (0.22) | (0.01) | (0.23) |
| Year Ended 4/30/2020 | $10.55 | 0.26 | (0.11) | 0.15 | (0.27) | (0.00)(d) | (0.27) |
| Year Ended 4/30/2019 | $10.44 | 0.27 | 0.21 | 0.48 | (0.29) | (0.08) | (0.37) |
| Year Ended 4/30/2018 | $10.79 | 0.27 | (0.31) | (0.04) | (0.28) | (0.03) | (0.31) |
| Advisor Class |
| Year Ended 4/30/2022 | $10.77 | 0.21 | (0.96) | (0.75) | (0.22) | (0.04) | (0.26) |
| Year Ended 4/30/2021 | $10.43 | 0.25 | 0.35 | 0.60 | (0.25) | (0.01) | (0.26) |
| Year Ended 4/30/2020 | $10.55 | 0.29 | (0.12) | 0.17 | (0.29) | (0.00)(d) | (0.29) |
| Year Ended 4/30/2019 | $10.44 | 0.30 | 0.20 | 0.50 | (0.31) | (0.08) | (0.39) |
| Year Ended 4/30/2018 | $10.79 | 0.30 | (0.31) | (0.01) | (0.31) | (0.03) | (0.34) |
| Class C |
| Year Ended 4/30/2022 | $10.77 | 0.11 | (0.96) | (0.85) | (0.12) | (0.04) | (0.16) |
| Year Ended 4/30/2021 | $10.44 | 0.14 | 0.34 | 0.48 | (0.14) | (0.01) | (0.15) |
| Year Ended 4/30/2020 | $10.55 | 0.18 | (0.10) | 0.08 | (0.19) | (0.00)(d) | (0.19) |
| Year Ended 4/30/2019 | $10.45 | 0.20 | 0.19 | 0.39 | (0.21) | (0.08) | (0.29) |
| Year Ended 4/30/2018 | $10.80 | 0.19 | (0.31) | (0.12) | (0.20) | (0.03) | (0.23) |
| Institutional Class |
| Year Ended 4/30/2022 | $10.76 | 0.22 | (0.97) | (0.75) | (0.22) | (0.04) | (0.26) |
| Year Ended 4/30/2021 | $10.43 | 0.25 | 0.34 | 0.59 | (0.25) | (0.01) | (0.26) |
| Year Ended 4/30/2020 | $10.54 | 0.29 | (0.11) | 0.18 | (0.29) | (0.00)(d) | (0.29) |
| Year Ended 4/30/2019 | $10.44 | 0.30 | 0.20 | 0.50 | (0.32) | (0.08) | (0.40) |
| Year Ended 4/30/2018 | $10.79 | 0.30 | (0.31) | (0.01) | (0.31) | (0.03) | (0.34) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 4/30/2022 | $9.75 | (7.32%) | 0.90% | 0.81%(c) | 1.80% | 11% | $25,627 |
| Year Ended 4/30/2021 | $10.76 | 5.42% | 0.91% | 0.81% | 2.07% | 10% | $29,427 |
| Year Ended 4/30/2020 | $10.43 | 1.35% | 0.87% | 0.81% | 2.47% | 12% | $24,036 |
| Year Ended 4/30/2019 | $10.55 | 4.69% | 0.88% | 0.81%(c) | 2.63% | 13% | $23,706 |
| Year Ended 4/30/2018 | $10.44 | (0.39%) | 0.89% | 0.81%(c) | 2.55% | 14% | $27,005 |
| Advisor Class |
| Year Ended 4/30/2022 | $9.76 | (7.08%) | 0.64% | 0.56%(c) | 2.02% | 11% | $2,881 |
| Year Ended 4/30/2021 | $10.77 | 5.78% | 0.66% | 0.56% | 2.31% | 10% | $2,233 |
| Year Ended 4/30/2020 | $10.43 | 1.60% | 0.61% | 0.55% | 2.70% | 12% | $666 |
| Year Ended 4/30/2019 | $10.55 | 4.95% | 0.63% | 0.56%(c) | 2.87% | 13% | $274 |
| Year Ended 4/30/2018 | $10.44 | (0.14%) | 0.63% | 0.56%(c) | 2.80% | 14% | $1,823 |
| Class C |
| Year Ended 4/30/2022 | $9.76 | (8.01%) | 1.65% | 1.56%(c) | 1.08% | 11% | $1,248 |
| Year Ended 4/30/2021 | $10.77 | 4.63% | 1.66% | 1.56% | 1.32% | 10% | $1,964 |
| Year Ended 4/30/2020 | $10.44 | 0.69% | 1.62% | 1.56% | 1.73% | 12% | $1,976 |
| Year Ended 4/30/2019 | $10.55 | 3.81% | 1.63% | 1.56%(c) | 1.88% | 13% | $2,786 |
| Year Ended 4/30/2018 | $10.45 | (1.13%) | 1.64% | 1.56%(c) | 1.79% | 14% | $3,824 |
| Institutional Class |
| Year Ended 4/30/2022 | $9.75 | (7.09%) | 0.65% | 0.56%(c) | 2.06% | 11% | $19,848 |
| Year Ended 4/30/2021 | $10.76 | 5.68% | 0.66% | 0.56% | 2.32% | 10% | $24,243 |
| Year Ended 4/30/2020 | $10.43 | 1.70% | 0.62% | 0.55% | 2.72% | 12% | $24,546 |
| Year Ended 4/30/2019 | $10.54 | 4.86% | 0.63% | 0.56%(c) | 2.88% | 13% | $22,698 |
| Year Ended 4/30/2018 | $10.44 | (0.15%) | 0.65% | 0.56%(c) | 2.76% | 14% | $29,199 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 19 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $10.79 | 0.23 | (0.98) | (0.75) | (0.23) | (0.04) | (0.27) |
| Year Ended 4/30/2021 | $10.45 | 0.26 | 0.35 | 0.61 | (0.26) | (0.01) | (0.27) |
| Year Ended 4/30/2020 | $10.57 | 0.30 | (0.12) | 0.18 | (0.30) | (0.00)(d) | (0.30) |
| Year Ended 4/30/2019 | $10.46 | 0.31 | 0.21 | 0.52 | (0.33) | (0.08) | (0.41) |
| Year Ended 4/30/2018 | $10.82 | 0.31 | (0.32) | (0.01) | (0.32) | (0.03) | (0.35) |
| 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) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (d) | Rounds to zero. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $9.77 | (7.08%) | 0.56% | 0.48% | 2.14% | 11% | $57,501 |
| Year Ended 4/30/2021 | $10.79 | 5.86% | 0.58% | 0.47% | 2.40% | 10% | $84,363 |
| Year Ended 4/30/2020 | $10.45 | 1.69% | 0.53% | 0.47% | 2.81% | 12% | $87,804 |
| Year Ended 4/30/2019 | $10.57 | 5.04% | 0.54% | 0.47% | 2.97% | 13% | $88,421 |
| Year Ended 4/30/2018 | $10.46 | (0.13%) | 0.54% | 0.48% | 2.91% | 14% | $102,071 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 21 |
Notes to Financial Statements
April 30, 2022
Note 1. Organization
Columbia Virginia Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust (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 Delaware statutory trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. 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. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class and Institutional 3 Class shares are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
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
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
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.
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.
| 22 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
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.
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
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
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
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.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 23 |
Notes to Financial Statements (continued)
April 30, 2022
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 management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended April 30, 2022 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 3 Class shares are subject to an annual limitation of not more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
| 24 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
For the year ended April 30, 2022, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.09 |
| Advisor Class | 0.09 |
| Class C | 0.09 |
| Institutional Class | 0.09 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended April 30, 2022, these minimum account balance fees reduced total expenses of the Fund by $20.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A shares of the Fund. Also under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class C shares of the Fund and a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended April 30, 2022, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 7,320 |
| Class C | — | 1.00(b) | 278 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 25 |
Notes to Financial Statements (continued)
April 30, 2022
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
August 31, 2022 |
| Class A | 0.81% |
| Advisor Class | 0.56 |
| Class C | 1.56 |
| Institutional Class | 0.56 |
| Institutional 3 Class | 0.48 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2022, these differences were primarily due to differing treatment for trustees’ deferred compensation, post-October capital losses, distributions, principal and/or interest of fixed income securities, re-characterization of distributions for investments and distribution reclassifications. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Excess of distributions
over net investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| (24) | 24 | — |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended April 30, 2022 | Year Ended April 30, 2021 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 61,990 | 2,708,940 | 479,743 | 3,250,673 | 69,355 | 3,316,525 | 118,984 | 3,504,864 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
| 26 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
At April 30, 2022, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 165,286 | — | — | (4,880,043) |
At April 30, 2022, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 112,743,154 | 929,873 | (5,809,916) | (4,880,043) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year. As of April 30, 2022, the Fund will elect to treat the following late-year ordinary losses and post-October capital losses as arising on May 1, 2022.
Late year
ordinary losses ($) | Post-October
capital losses ($) |
| — | 299,339 |
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.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $13,667,695 and $32,891,336, respectively, for the year ended April 30, 2022. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended April 30, 2022.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 27 |
Notes to Financial Statements (continued)
April 30, 2022
an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended April 30, 2022.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
| 28 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
The pandemic caused by coronavirus disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such events could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 29 |
Notes to Financial Statements (continued)
April 30, 2022
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At April 30, 2022, one unaffiliated shareholder of record owned 60.2% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 30 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust and Shareholders of Columbia Virginia Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Virginia Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust, referred to hereafter as the "Fund") as of April 30, 2022, the related statement of operations for the year ended April 30, 2022, the statement of changes in net assets for each of the two years in the period ended April 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended April 30, 2022 and the financial highlights for each of the five years in the period ended April 30, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
June 23, 2022
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 31 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended April 30, 2022. Shareholders will be notified in early 2023 of the amounts for use in preparing 2022 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $482,448 | 98.19% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 176 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 32 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney, specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 176 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 176 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee) since 2019; Director, Apollo Commercial Real Estate Finance, Inc. since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 174 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 174 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 33 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 174 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 176 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2020; former Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 176 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 176 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 174 | None |
| 34 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 174 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 176 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 176 | Director, Blue Cross Blue Shield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation since 1998 |
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 35 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2021; Advisor, Paradigm Asset Management, November 2016-December 2021; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 174 | Former Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2012-2019; Director, Chair of Audit Committee, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2019; Independent Director, Investment Committee and Valuation Committee, Sarona Asset Management, since 2019 |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 176 | Former Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as Directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC since April 2015; President and Principal Executive Officer of the Columbia Funds since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 176 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since January 2022 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 36 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and Head of Global Operations & Investor Services, Columbia Management Investment Advisers, LLC, since March 2022 (previously Vice President, Head of North American Operations, and Co-Head of Global Operations, June 2019 to February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001-January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds, 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022
| 37 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021, through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
| 38 | Columbia Virginia Intermediate Municipal Bond Fund | Annual Report 2022 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Virginia Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
April 30, 2022
Columbia South Carolina Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia South Carolina Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which 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; visiting columbiathreadneedleus.com/investor/; 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 filings are 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
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
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
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks current income exempt from U.S. federal income tax and South Carolina individual income tax, consistent with moderate fluctuation of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2016
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the Fund.
| Average annual total returns (%) (for the period ended April 30, 2022) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 05/05/92 | -6.47 | 0.99 | 1.48 |
| | Including sales charges | | -9.26 | 0.39 | 1.18 |
| Advisor Class* | 03/19/13 | -6.24 | 1.26 | 1.74 |
| Class C | Excluding sales charges | 06/17/92 | -7.26 | 0.24 | 0.72 |
| | Including sales charges | | -8.18 | 0.24 | 0.72 |
| Institutional Class | 01/06/92 | -6.32 | 1.24 | 1.73 |
| Institutional 3 Class* | 03/01/17 | -6.20 | 1.36 | 1.79 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | -7.28 | 1.62 | 2.21 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
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.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (April 30, 2012 — April 30, 2022)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia South Carolina Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at April 30, 2022) |
| AAA rating | 6.2 |
| AA rating | 42.0 |
| A rating | 48.0 |
| BBB rating | 2.3 |
| BB rating | 1.1 |
| Not rated | 0.4 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended April 30, 2022, Class A shares of Columbia South Carolina Intermediate Municipal Bond Fund returned -6.47% excluding sales charges. Institutional Class shares of the Fund returned -6.32%. The Fund outperformed its benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, which returned -7.28% for the same time period.
Market overview
As the annual period began in May 2021, municipal bonds were one of the few bright spots for U.S. fixed income. Upward pressure on U.S. Treasury yields, driven by fears of inflation, pressured most other sectors. However, municipal bond performance was supported by record inflows, improving credit fundamentals and substantial fiscal stimulus from the federal government. Notably, tax revenue performance was rather strong, with projected deficits turning into actual surpluses for many state and local governments. Interest rate volatility led most fixed-income sectors to negative returns for the third quarter of 2021, but municipal bond performance remained one of the few positive corners of the U.S. fixed-income market.
The year 2021 ended with yet another new COVID-19 variant emerging, but despite higher transmissibility, the Omicron variant appeared to be less severe than originally feared. With economic growth and employment seemingly on track, the U.S. Federal Reserve (Fed) began tapering its asset purchases while acknowledging that conditions pushing inflation higher could persist. This served to elevate interest rate volatility for the fourth calendar quarter of 2021. Congressional passage of an infrastructure spending plan provided support to the municipal bond sector via federal spending, though movement toward higher individual tax rates, which could have boosted demand, was left out of the final bill. However, entering 2022 with relatively full valuations and low absolute yields left little margin for error within the municipal bond market, and as messaging from the Fed grew increasingly hawkish, municipal bonds could no longer remain immune from rising interest rates. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
The first quarter of 2022 closed with the benchmark down 5.71% in the worst drawdown since the COVID-19 sell-off and the worst first quarter return since 1980. As is often the case with municipal bonds, negative returns precipitated outflows, which, in turn, led to more negative returns. Long and intermediate national funds, as well as high-yield funds, experienced the heaviest pressure. A silver lining to the sell-off was that credit fundamentals were not a concern, as evidenced by the modest differential between below-investment grade and investment-grade returns. A lack of high-yield supply helped to keep those returns relatively tight, and lower new issue supply avoided exacerbating the returns.
Conditions persisted into the last month of the annual period, with the Bloomberg Municipal Bond Index posting a return of -2.77% in April 2022, and municipal bonds underperforming U.S. Treasuries for the month. However, rising interest rates coupled with outflows had a positive side effect for the municipal bond market. Excluding the brief COVID-19 sell-off, tax-exempt yields had not seen the levels of the first months of 2022 since early 2019. Indeed, versus other fixed-income sectors, taxable equivalent yields were attractive enough to begin enticing even bank and insurance buyers back into the municipal market. Buyers of municipal credit were also drawn in by the solid fundamentals underpinning state and local governments, which on the back of record tax collections, substantial federal aid and a growing economy, remained rather healthy. Credit upgrades outpaced downgrades, and defaults remained exceptionally low.
The South Carolina intermediate municipal market slightly underperformed the national intermediate municipal market during the period. The South Carolina intermediate market has a longer maturity and duration profile than the national market, which makes it more sensitive to changes in interest rate levels, which led to relative underperformance of the state’s market during the period. The South Carolina market is also heavily weighted toward three sectors: local general obligation bonds, public power and transportation. These three sectors, which make up approximately 70% of the state’s intermediate municipal market index, underperformed the national market, as measured by the Fund’s benchmark. The underperformance was not credit driven but rather a result of the bonds profile or characteristics. South Carolina’s exposure in these sectors was in longer maturity, longer duration bonds and in bonds that were lower in coupon, which rendered them more sensitive to changes in interest rates. The structure profile of South Carolina’s municipal market is influenced by its vibrant retail or individual investor base, which has generally exhibited a preference for lower coupon, lower dollar priced bonds.
The Fund’s notable contributors during the period
| • | The Fund’s duration positioning contributed to the Fund’s performance versus the benchmark during the period. |
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
| ○ | The Fund began the period with a duration below that of the benchmark as our view on the market was becoming less constructive. Building inflation pressures and the Fed’s plans to wind down its asset purchases and begin a cycle of raising interest rates prompted us to transition to a more defensive posture. |
| ○ | The Fund’s duration relative to its benchmark fluctuated between roughly one-half year short to one-quarter year short throughout the period. Maintaining a below benchmark duration position benefitted the Fund as interest rates rose quickly at the start of 2022. |
| • | The Fund’s pre-refunded bonds, which had an average maturity of less than two years, and exposure to bonds maturing in less than two years also contributed to performance. In an environment of rising interest rates, shorter maturity bonds tend to outperform their longer maturity counterparts. |
The Fund’s notable detractors during the period
| • | The timing of some Fund purchases in the summer and late autumn of 2021 detracted from total returns for the Fund as these purchases were executed at the low in yields for the period. |
| • | Exposure to 4% coupon bonds, while less than the benchmark, weighed on Fund performance as this coupon structure underperformed during the selloff. |
| • | Lastly, the Fund’s overweighting to local appropriation issues detracted from performance as they underperformed most sectors. Local appropriation issues are a very common municipal structure in South Carolina and represented the Fund’s largest sector weight. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund 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.
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 |
| | Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual |
| Class A | 1,000.00 | 1,000.00 | 935.50 | 1,020.94 | 3.86 | 4.03 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 936.60 | 1,022.19 | 2.66 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 931.10 | 1,017.20 | 7.46 | 7.80 | 1.55 |
| Institutional Class | 1,000.00 | 1,000.00 | 936.70 | 1,022.19 | 2.66 | 2.77 | 0.55 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 936.40 | 1,022.69 | 2.17 | 2.27 | 0.45 |
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.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 7 |
Portfolio of Investments
April 30, 2022
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 98.8% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 0.6% |
| Charleston County Airport District |
| Revenue Bonds |
| Series 2019 |
| 07/01/2035 | 5.000% | | 500,000 | 552,482 |
| Charter Schools 1.0% |
| South Carolina Jobs-Economic Development Authority(a) |
| Revenue Bonds |
| Series 2015A |
| 08/15/2035 | 5.125% | | 1,000,000 | 1,027,700 |
| Higher Education 8.7% |
| Clemson University |
| Revenue Bonds |
| Athletic Facility |
| Series 2014A |
| 05/01/2028 | 5.000% | | 1,170,000 | 1,247,644 |
| Coastal Carolina University |
| Revenue Bonds |
| Series 2015 |
| 06/01/2024 | 5.000% | | 1,500,000 | 1,574,439 |
| South Carolina Jobs-Economic Development Authority |
| Refunding Revenue Bonds |
| Furman University |
| Series 2015 |
| 10/01/2032 | 5.000% | | 1,895,000 | 2,005,831 |
| Revenue Bonds |
| Wofford College Project |
| Series 2019 |
| 04/01/2037 | 5.000% | | 885,000 | 968,067 |
| University of South Carolina |
| Refunding Revenue Bonds |
| Series 2017B |
| 05/01/2034 | 5.000% | | 1,500,000 | 1,647,164 |
| Revenue Bonds |
| Campus Village Project |
| Series 2021A |
| 05/01/2037 | 5.000% | | 1,000,000 | 1,152,312 |
| Total | 8,595,457 |
| Hospital 9.8% |
| County of Florence |
| Refunding Revenue Bonds |
| McLeod Regional Medical Center Project |
| Series 2014 |
| 11/01/2031 | 5.000% | | 1,500,000 | 1,579,249 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Lexington County Health Services District, Inc. |
| Refunding Revenue Bonds |
| Lexington Medical Center Obligated Group |
| Series 2017 |
| 11/01/2032 | 4.000% | | 1,050,000 | 1,068,669 |
| Revenue Bonds |
| Lexington Medical Center |
| Series 2016 |
| 11/01/2034 | 5.000% | | 1,500,000 | 1,607,408 |
| South Carolina Jobs-Economic Development Authority |
| Refunding Revenue Bonds |
| Prisma Health Obligated Group |
| Series 2018 |
| 05/01/2036 | 5.000% | | 2,000,000 | 2,183,303 |
| Revenue Bonds |
| McLeod Health Obligation Group |
| Series 2018 |
| 11/01/2033 | 5.000% | | 1,000,000 | 1,091,980 |
| St. Joseph’s Candler Health System, Inc. |
| Series 2019 |
| 07/01/2032 | 5.000% | | 1,000,000 | 1,116,411 |
| Spartanburg Regional Health Services District |
| Refunding Revenue Bonds |
| Services District, Inc. |
| Series 2022 |
| 04/15/2037 | 4.000% | | 1,000,000 | 1,005,634 |
| Total | 9,652,654 |
| Joint Power Authority 4.4% |
| Piedmont Municipal Power Agency |
| Refunding Revenue Bonds |
| Series 2021D |
| 01/01/2033 | 4.000% | | 1,000,000 | 1,049,612 |
| South Carolina Public Service Authority |
| Refunding Revenue Bonds |
| Series 2016A |
| 12/01/2028 | 5.000% | | 2,000,000 | 2,155,794 |
| Revenue Bonds |
| Series 2022A |
| 12/01/2039 | 5.000% | | 1,000,000 | 1,124,615 |
| Total | 4,330,021 |
| Local Appropriation 26.3% |
| Aiken County Consolidated School District |
| Special Obligation Revenue Bonds |
| Series 2019 |
| 06/01/2033 | 4.000% | | 325,000 | 341,397 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Berkeley County School District |
| Refunding Revenue Bonds |
| Securing Assets for Education |
| Series 2015A |
| 12/01/2027 | 5.000% | | 1,500,000 | 1,557,451 |
| Center for Arts & Health Sciences Public Facilities Corp. |
| Revenue Bonds |
| Greenville Technical College Project |
| Series 2022 |
| 10/01/2039 | 4.000% | | 1,000,000 | 1,041,394 |
| Charleston Educational Excellence Finance Corp. |
| Refunding Revenue Bonds |
| Charleston County School |
| Series 2013 |
| 12/01/2025 | 5.000% | | 2,000,000 | 2,079,261 |
| Charleston Public Facilities Corp. |
| Revenue Bonds |
| Series 2015A |
| 09/01/2029 | 5.000% | | 1,000,000 | 1,081,046 |
| City of North Charleston |
| Tax Allocation Bonds |
| Series 2019B |
| 10/01/2027 | 5.000% | | 1,000,000 | 1,108,155 |
| Series 2022 |
| 10/01/2039 | 4.000% | | 820,000 | 847,946 |
| Tax Increment Pledge |
| Series 2020 |
| 10/01/2031 | 5.000% | | 300,000 | 343,160 |
| County of Dorchester |
| Tax Allocation Bonds |
| Series 2020 |
| 10/01/2036 | 5.000% | | 385,000 | 435,544 |
| Dorchester County School District No. 2 |
| Refunding Revenue Bonds |
| Growth Installment Purchase |
| Series 2013 |
| 12/01/2027 | 5.000% | | 1,000,000 | 1,040,038 |
| Fort Mill School Facilities Corp. |
| Refunding Revenue Bonds |
| Fort Mills School District #4 |
| Series 2015 |
| 12/01/2028 | 5.000% | | 1,000,000 | 1,076,753 |
| Kershaw County School District |
| Refunding Revenue Bonds |
| Series 2015 |
| 12/01/2025 | 5.000% | | 1,000,000 | 1,082,415 |
| Lexington One School Facilities Corp. |
| Refunding Revenue Bonds |
| Lexington County School District |
| Series 2015 |
| 12/01/2026 | 5.000% | | 835,000 | 868,960 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Lexington School District No. 2 Educational Facilities Corp. |
| Refunding Revenue Bonds |
| Series 2015B |
| 12/01/2026 | 5.000% | | 1,815,000 | 1,947,859 |
| Newberry Investing in Children’s Education |
| Refunding Revenue Bonds |
| Newberry County School District |
| Series 2014 |
| 12/01/2029 | 5.000% | | 1,500,000 | 1,600,304 |
| Orangeburg County School District(b) |
| Revenue Bonds |
| Series 2022 |
| 06/01/2039 | 5.000% | | 1,000,000 | 1,051,538 |
| SCAGO Educational Facilities Corp. for Calhoun School District |
| Refunding Revenue Bonds |
| Series 2015 (BAM) |
| 12/01/2026 | 5.000% | | 520,000 | 561,017 |
| SCAGO Educational Facilities Corp. for Cherokee School District No. 1 |
| Refunding Revenue Bonds |
| Series 2015 |
| 12/01/2028 | 5.000% | | 1,830,000 | 1,941,917 |
| SCAGO Educational Facilities Corp. for Colleton School District |
| Refunding Revenue Bonds |
| Series 2015 |
| 12/01/2027 | 5.000% | | 1,295,000 | 1,372,795 |
| SCAGO Educational Facilities Corp. for Pickens School District |
| Refunding Revenue Bonds |
| Series 2015 |
| 12/01/2029 | 5.000% | | 1,500,000 | 1,593,801 |
| 12/01/2030 | 5.000% | | 1,275,000 | 1,354,620 |
| Sumter Two School Facilities, Inc. |
| Refunding Revenue Bonds |
| Sumter County School District No. 2 |
| Series 2016 (BAM) |
| 12/01/2027 | 5.000% | | 1,500,000 | 1,612,985 |
| Total | 25,940,356 |
| Local General Obligation 9.9% |
| Anderson County School District No. 5 |
| Unlimited General Obligation Bonds |
| South Carolina School District Credit Enhancement Program |
| Series 2017 |
| 03/01/2030 | 4.000% | | 1,000,000 | 1,050,289 |
| Beaufort County School District |
| Unlimited General Obligation Bonds |
| Series 2014B |
| 03/01/2023 | 5.000% | | 1,190,000 | 1,220,893 |
| County of Charleston |
| Unlimited General Obligation Bonds |
| Transportation Sales Tax |
| Series 2021 |
| 11/01/2032 | 4.000% | | 1,000,000 | 1,083,808 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 9 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Lexington & Richland School District No. 5 |
| Unlimited General Obligation Refunding Bonds |
| Series 2021B |
| 03/01/2031 | 4.000% | | 1,000,000 | 1,074,802 |
| Lexington County School District No. 1 |
| Unlimited General Obligation Bonds |
| Series 2020C |
| 02/01/2031 | 4.000% | | 1,000,000 | 1,059,147 |
| Unlimited General Obligation Refunding Bonds |
| Series 2019A (School District Credit Enhancement Program) |
| 02/01/2031 | 5.000% | | 1,000,000 | 1,123,770 |
| South Carolina Jobs-Economic Development Authority |
| Refunding Revenue Bonds |
| Series 2015 |
| 04/01/2034 | 5.000% | | 940,000 | 964,640 |
| Spartanburg County School District No. 7 |
| Unlimited General Obligation Bonds |
| Series 2018-B |
| 03/01/2036 | 5.000% | | 1,000,000 | 1,122,638 |
| Series 2019D |
| 03/01/2037 | 5.000% | | 1,000,000 | 1,122,555 |
| Total | 9,822,542 |
| Municipal Power 2.9% |
| City of Camden Combined Public Utility System |
| Refunding Revenue Bonds |
| Series 2020 (AGM) |
| 03/01/2031 | 4.000% | | 1,125,000 | 1,208,250 |
| City of Rock Hill Combined Utility System |
| Refunding Revenue Bonds |
| Series 2019A |
| 01/01/2032 | 5.000% | | 1,000,000 | 1,119,599 |
| Easley Combined Utility System |
| Refunding Revenue Bonds |
| Easley Combined Utility System |
| Series 2019 (AGM) |
| 12/01/2033 | 4.000% | | 500,000 | 525,405 |
| Total | 2,853,254 |
| Other Utility 1.5% |
| Patriots Energy Group |
| Improvement Refunding Revenue Bonds |
| Gas Systems |
| Series 2019 |
| 06/01/2038 | 5.000% | | 1,000,000 | 1,112,128 |
| Refunding Revenue Bonds |
| Series 2021A |
| 06/01/2032 | 5.000% | | 350,000 | 400,268 |
| Total | 1,512,396 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Ports 2.2% |
| South Carolina Ports Authority(c) |
| Revenue Bonds |
| Series 2019B |
| 07/01/2033 | 5.000% | | 2,000,000 | 2,175,369 |
| Refunded / Escrowed 6.3% |
| Anderson Regional Joint Water System |
| Prerefunded 07/15/22 Revenue Bonds |
| Series 2012 |
| 07/15/2028 | 5.000% | | 2,000,000 | 2,015,007 |
| City of Columbia |
| Prerefunded 02/01/24 Revenue Bonds |
| Series 2014 |
| 02/01/2033 | 5.000% | | 1,195,000 | 1,250,877 |
| County of Florence |
| Prerefunded 10/01/23 Revenue Bonds |
| Series 2015 |
| 10/01/2028 | 5.000% | | 1,000,000 | 1,038,877 |
| Greenville County Public Facilities Corp. |
| Prerefunded 04/01/24 Certificate of Participation |
| Series 2014 |
| 04/01/2026 | 5.000% | | 890,000 | 933,526 |
| South Carolina Jobs-Economic Development Authority |
| Prerefunded 11/01/22 Revenue Bonds |
| Bon Secours Health System, Inc. |
| Series 2013 |
| 11/01/2024 | 5.000% | | 450,000 | 457,524 |
| Prerefunded 11/01/24 Revenue Bonds |
| York Preparatory Academy Project |
| Series 2014A |
| 11/01/2033 | 7.000% | | 500,000 | 552,911 |
| Total | 6,248,722 |
| Resource Recovery 3.4% |
| Three Rivers Solid Waste Authority(d) |
| Revenue Bonds |
| Capital Appreciation - Landfill Gas Project |
| Series 2007 |
| 10/01/2024 | 0.000% | | 1,835,000 | 1,710,859 |
| 10/01/2025 | 0.000% | | 1,835,000 | 1,655,740 |
| Total | 3,366,599 |
| Retirement Communities 1.2% |
| South Carolina Jobs-Economic Development Authority(a) |
| Refunding Revenue Bonds |
| Wesley Commons |
| Series 2016 |
| 10/01/2026 | 5.000% | | 560,000 | 575,257 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| South Carolina Jobs-Economic Development Authority |
| Revenue Bonds |
| Bishop Gadsden Episcopal Retirement Community |
| Series 2019 |
| 04/01/2034 | 4.000% | | 605,000 | 596,521 |
| Total | 1,171,778 |
| Special Non Property Tax 3.9% |
| City of Florence Accommodations Fee |
| Revenue Bonds |
| Series 2015 |
| 05/01/2030 | 4.000% | | 1,000,000 | 1,027,407 |
| 05/01/2035 | 5.000% | | 1,000,000 | 1,054,327 |
| City of Myrtle Beach |
| Revenue Bonds |
| Hospitality Fee |
| Series 2014B |
| 06/01/2030 | 5.000% | | 560,000 | 588,865 |
| City of Rock Hill |
| Revenue Bonds |
| Hospitality Fee Pledge |
| Series 2013 |
| 04/01/2023 | 5.000% | | 695,000 | 713,473 |
| Town of Hilton Head Island |
| Revenue Bonds |
| Beach Preservation Fee Pledge |
| Series 2017 |
| 08/01/2025 | 5.000% | | 400,000 | 431,489 |
| Total | 3,815,561 |
| Special Property Tax 2.1% |
| City of Myrtle Beach |
| Refunding Tax Allocation Bonds |
| Myrtle Beach Air Force Base |
| Series 2016 |
| 10/01/2030 | 5.000% | | 1,000,000 | 1,081,751 |
| County of Greenville |
| Revenue Bonds |
| Series 2021 |
| 04/01/2038 | 4.000% | | 1,000,000 | 1,034,435 |
| Total | 2,116,186 |
| State General Obligation 2.8% |
| State of South Carolina |
| Unlimited General Obligation Bonds |
| Citadel Military College of South Carolina |
| Series 2021 |
| 04/01/2036 | 5.000% | | 1,500,000 | 1,748,219 |
| Series 2014B |
| 04/01/2025 | 5.000% | | 1,000,000 | 1,049,385 |
| Total | 2,797,604 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Transportation 2.1% |
| South Carolina Transportation Infrastructure Bank |
| Refunding Revenue Bonds |
| Infrastructure Bank |
| Series 2015A |
| 10/01/2024 | 5.000% | | 2,000,000 | 2,118,345 |
| Water & Sewer 9.7% |
| Beaufort-Jasper Water & Sewer Authority |
| Refunding Revenue Bonds |
| Series 2016B |
| 03/01/2024 | 5.000% | | 1,000,000 | 1,048,475 |
| Revenue Bonds |
| Series 2019A |
| 03/01/2035 | 5.000% | | 750,000 | 842,777 |
| City of Charleston Waterworks & Sewer System |
| Revenue Bonds |
| Series 2019 |
| 01/01/2038 | 5.000% | | 1,000,000 | 1,147,325 |
| City of Columbia Stormwater System |
| Revenue Bonds |
| Green Bonds |
| Series 2018 |
| 02/01/2038 | 5.000% | | 350,000 | 386,755 |
| City of Columbia Waterworks & Sewer System |
| Revenue Bonds |
| Series 2018 |
| 02/01/2035 | 4.000% | | 560,000 | 580,881 |
| City of Spartanburg Water System |
| Refunding Revenue Bonds |
| Series 2017B |
| 06/01/2035 | 4.000% | | 1,375,000 | 1,413,932 |
| City of Sumter Waterworks & Sewer System |
| Refunding Revenue Bonds |
| Series 2015 |
| 12/01/2027 | 4.000% | | 400,000 | 419,101 |
| County of Richland Utility System |
| Refunding Revenue Bonds |
| Series 2020 |
| 03/01/2031 | 5.000% | | 240,000 | 274,741 |
| 03/01/2032 | 5.000% | | 215,000 | 245,606 |
| 03/01/2033 | 5.000% | | 280,000 | 319,208 |
| Georgetown County Water & Sewer District |
| Refunding Revenue Bonds |
| Series 2015 |
| 06/01/2027 | 4.000% | | 450,000 | 466,449 |
| Grand Strand Water & Sewer Authority |
| Refunding Revenue Bonds |
| Series 2021A |
| 06/01/2031 | 5.000% | | 500,000 | 585,954 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 11 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Spartanburg Sanitation Sewer District |
| Refunding Revenue Bonds |
| Series 2014B |
| 03/01/2034 | 5.000% | | 1,000,000 | 1,060,397 |
| Town of Lexington Waterworks & Sewer System |
| Refunding Revenue Bonds |
| Series 2017 |
| 06/01/2034 | 4.000% | | 750,000 | 777,902 |
| Total | 9,569,503 |
Total Municipal Bonds
(Cost $100,018,966) | 97,666,529 |
| Money Market Funds 1.4% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(e) | 113,783 | 113,771 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(e) | 1,242,860 | 1,242,860 |
Total Money Market Funds
(Cost $1,356,643) | 1,356,631 |
Total Investments in Securities
(Cost: $101,375,609) | 99,023,160 |
| Other Assets & Liabilities, Net | | (215,866) |
| Net Assets | 98,807,294 |
Notes to Portfolio of Investments
| (a) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $1,602,957, which represents 1.62% of total net assets. |
| (b) | Represents a security purchased on a when-issued basis. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Zero coupon bond. |
| (e) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| BAM | Build America Mutual Assurance Co. |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | 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 accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
Fair value measurements (continued)
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 April 30, 2022:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 97,666,529 | — | 97,666,529 |
| Money Market Funds | 1,356,631 | — | — | 1,356,631 |
| Total Investments in Securities | 1,356,631 | 97,666,529 | — | 99,023,160 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 13 |
Statement of Assets and Liabilities
April 30, 2022
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $101,375,609) | $99,023,160 |
| Receivable for: | |
| Capital shares sold | 128,607 |
| Interest | 1,283,498 |
| Expense reimbursement due from Investment Manager | 322 |
| Prepaid expenses | 5,772 |
| Total assets | 100,441,359 |
| Liabilities | |
| Due to custodian | 2,159 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,051,540 |
| Capital shares purchased | 253,661 |
| Distributions to shareholders | 171,472 |
| Management services fees | 1,278 |
| Distribution and/or service fees | 228 |
| Transfer agent fees | 10,413 |
| Compensation of board members | 126,209 |
| Other expenses | 17,105 |
| Total liabilities | 1,634,065 |
| Net assets applicable to outstanding capital stock | $98,807,294 |
| Represented by | |
| Paid in capital | 102,284,081 |
| Total distributable earnings (loss) | (3,476,787) |
| Total - representing net assets applicable to outstanding capital stock | $98,807,294 |
| Class A | |
| Net assets | $23,491,127 |
| Shares outstanding | 2,455,831 |
| Net asset value per share | $9.57 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $9.87 |
| Advisor Class | |
| Net assets | $1,246,309 |
| Shares outstanding | 130,296 |
| Net asset value per share | $9.57 |
| Class C | |
| Net assets | $2,455,605 |
| Shares outstanding | 256,484 |
| Net asset value per share | $9.57 |
| Institutional Class | |
| Net assets | $63,686,137 |
| Shares outstanding | 6,654,783 |
| Net asset value per share | $9.57 |
| Institutional 3 Class | |
| Net assets | $7,928,116 |
| Shares outstanding | 825,598 |
| Net asset value per share | $9.60 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Operations
Year Ended April 30, 2022
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $588 |
| Interest | 2,907,222 |
| Total income | 2,907,810 |
| Expenses: | |
| Management services fees | 546,952 |
| Distribution and/or service fees | |
| Class A | 75,591 |
| Class C | 27,480 |
| Transfer agent fees | |
| Class A | 34,070 |
| Advisor Class | 2,633 |
| Class C | 3,097 |
| Institutional Class | 82,154 |
| Institutional 3 Class | 559 |
| Compensation of board members | 25,312 |
| Custodian fees | 1,257 |
| Printing and postage fees | 12,298 |
| Registration fees | 9,248 |
| Audit fees | 29,500 |
| Legal fees | 12,007 |
| Interest on interfund lending | 5 |
| Compensation of chief compliance officer | 18 |
| Other | 11,014 |
| Total expenses | 873,195 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (135,568) |
| Expense reduction | (20) |
| Total net expenses | 737,607 |
| Net investment income | 2,170,203 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (534,992) |
| Net realized loss | (534,992) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (8,912,527) |
| Net change in unrealized appreciation (depreciation) | (8,912,527) |
| Net realized and unrealized loss | (9,447,519) |
| Net decrease in net assets resulting from operations | $(7,277,316) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 15 |
Statement of Changes in Net Assets
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations | | |
| Net investment income | $2,170,203 | $2,349,332 |
| Net realized loss | (534,992) | (26,193) |
| Net change in unrealized appreciation (depreciation) | (8,912,527) | 3,475,775 |
| Net increase (decrease) in net assets resulting from operations | (7,277,316) | 5,798,914 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (520,262) | (498,426) |
| Advisor Class | (45,827) | (61,141) |
| Class C | (26,727) | (43,686) |
| Institutional Class | (1,439,379) | (1,591,033) |
| Institutional 3 Class | (168,740) | (155,047) |
| Total distributions to shareholders | (2,200,935) | (2,349,333) |
| Increase (decrease) in net assets from capital stock activity | (10,767,276) | 8,175,212 |
| Total increase (decrease) in net assets | (20,245,527) | 11,624,793 |
| Net assets at beginning of year | 119,052,821 | 107,428,028 |
| Net assets at end of year | $98,807,294 | $119,052,821 |
| | Year Ended | Year Ended |
| | April 30, 2022 | April 30, 2021 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 258,794 | 2,666,032 | 690,013 | 7,188,324 |
| Distributions reinvested | 41,737 | 426,534 | 37,936 | 395,018 |
| Redemptions | (788,960) | (7,813,969) | (204,025) | (2,124,918) |
| Net increase (decrease) | (488,429) | (4,721,403) | 523,924 | 5,458,424 |
| Advisor Class | | | | |
| Subscriptions | 57,754 | 591,974 | 78,894 | 813,886 |
| Distributions reinvested | 4,458 | 45,633 | 5,852 | 60,935 |
| Redemptions | (223,370) | (2,250,609) | (23,509) | (244,594) |
| Net increase (decrease) | (161,158) | (1,613,002) | 61,237 | 630,227 |
| Class C | | | | |
| Subscriptions | 36,902 | 384,262 | 52,882 | 552,095 |
| Distributions reinvested | 2,474 | 25,287 | 3,722 | 38,786 |
| Redemptions | (64,961) | (670,935) | (273,576) | (2,857,515) |
| Net decrease | (25,585) | (261,386) | (216,972) | (2,266,634) |
| Institutional Class | | | | |
| Subscriptions | 789,145 | 8,118,864 | 1,454,148 | 15,144,030 |
| Distributions reinvested | 39,612 | 404,088 | 35,131 | 366,026 |
| Redemptions | (1,356,340) | (13,702,244) | (1,214,766) | (12,662,886) |
| Net increase (decrease) | (527,583) | (5,179,292) | 274,513 | 2,847,170 |
| Institutional 3 Class | | | | |
| Subscriptions | 260,869 | 2,669,058 | 278,574 | 2,920,458 |
| Distributions reinvested | 6,527 | 66,969 | 5,566 | 58,179 |
| Redemptions | (168,873) | (1,728,220) | (140,724) | (1,472,612) |
| Net increase | 98,523 | 1,007,807 | 143,416 | 1,506,025 |
| Total net increase (decrease) | (1,104,232) | (10,767,276) | 786,118 | 8,175,212 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
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Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 17 |
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 payment of sales charges, if any. 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 asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Class A |
| Year Ended 4/30/2022 | $10.41 | 0.17 | (0.83) | (0.66) | (0.18) | (0.18) |
| Year Ended 4/30/2021 | $10.09 | 0.19 | 0.32 | 0.51 | (0.19) | (0.19) |
| Year Ended 4/30/2020 | $10.17 | 0.22 | (0.07) | 0.15 | (0.23) | (0.23) |
| Year Ended 4/30/2019 | $9.94 | 0.24 | 0.24 | 0.48 | (0.25) | (0.25) |
| Year Ended 4/30/2018 | $10.16 | 0.25 | (0.20) | 0.05 | (0.27) | (0.27) |
| Advisor Class |
| Year Ended 4/30/2022 | $10.41 | 0.20 | (0.84) | (0.64) | (0.20) | (0.20) |
| Year Ended 4/30/2021 | $10.09 | 0.21 | 0.32 | 0.53 | (0.21) | (0.21) |
| Year Ended 4/30/2020 | $10.16 | 0.25 | (0.06) | 0.19 | (0.26) | (0.26) |
| Year Ended 4/30/2019 | $9.94 | 0.26 | 0.24 | 0.50 | (0.28) | (0.28) |
| Year Ended 4/30/2018 | $10.15 | 0.27 | (0.19) | 0.08 | (0.29) | (0.29) |
| Class C |
| Year Ended 4/30/2022 | $10.42 | 0.10 | (0.85) | (0.75) | (0.10) | (0.10) |
| Year Ended 4/30/2021 | $10.10 | 0.11 | 0.32 | 0.43 | (0.11) | (0.11) |
| Year Ended 4/30/2020 | $10.17 | 0.15 | (0.07) | 0.08 | (0.15) | (0.15) |
| Year Ended 4/30/2019 | $9.94 | 0.16 | 0.25 | 0.41 | (0.18) | (0.18) |
| Year Ended 4/30/2018 | $10.16 | 0.17 | (0.20) | (0.03) | (0.19) | (0.19) |
| Institutional Class |
| Year Ended 4/30/2022 | $10.42 | 0.20 | (0.85) | (0.65) | (0.20) | (0.20) |
| Year Ended 4/30/2021 | $10.09 | 0.21 | 0.33 | 0.54 | (0.21) | (0.21) |
| Year Ended 4/30/2020 | $10.17 | 0.25 | (0.07) | 0.18 | (0.26) | (0.26) |
| Year Ended 4/30/2019 | $9.94 | 0.26 | 0.25 | 0.51 | (0.28) | (0.28) |
| Year Ended 4/30/2018 | $10.16 | 0.27 | (0.20) | 0.07 | (0.29) | (0.29) |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $10.45 | 0.21 | (0.85) | (0.64) | (0.21) | (0.21) |
| Year Ended 4/30/2021 | $10.13 | 0.23 | 0.32 | 0.55 | (0.23) | (0.23) |
| Year Ended 4/30/2020 | $10.21 | 0.26 | (0.07) | 0.19 | (0.27) | (0.27) |
| Year Ended 4/30/2019 | $9.98 | 0.27 | 0.25 | 0.52 | (0.29) | (0.29) |
| Year Ended 4/30/2018 | $10.19 | 0.28 | (0.19) | 0.09 | (0.30) | (0.30) |
| 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) | Ratios include interfund lending expense which is less than 0.01%. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 4/30/2022 | $9.57 | (6.47%) | 0.92%(c) | 0.80%(c),(d) | 1.70% | 13% | $23,491 |
| Year Ended 4/30/2021 | $10.41 | 5.05% | 0.95% | 0.81%(d) | 1.80% | 10% | $30,657 |
| Year Ended 4/30/2020 | $10.09 | 1.46% | 0.91% | 0.81%(d) | 2.15% | 9% | $24,421 |
| Year Ended 4/30/2019 | $10.17 | 4.93% | 0.93% | 0.81%(d) | 2.37% | 9% | $21,999 |
| Year Ended 4/30/2018 | $9.94 | 0.43% | 0.93% | 0.81%(d) | 2.41% | 7% | $23,050 |
| Advisor Class |
| Year Ended 4/30/2022 | $9.57 | (6.24%) | 0.67%(c) | 0.55%(c),(d) | 1.93% | 13% | $1,246 |
| Year Ended 4/30/2021 | $10.41 | 5.31% | 0.70% | 0.56%(d) | 2.05% | 10% | $3,034 |
| Year Ended 4/30/2020 | $10.09 | 1.82% | 0.65% | 0.56%(d) | 2.40% | 9% | $2,322 |
| Year Ended 4/30/2019 | $10.16 | 5.09% | 0.68% | 0.56%(d) | 2.62% | 9% | $1,854 |
| Year Ended 4/30/2018 | $9.94 | 0.78% | 0.68% | 0.56%(d) | 2.66% | 7% | $1,984 |
| Class C |
| Year Ended 4/30/2022 | $9.57 | (7.26%) | 1.67%(c) | 1.55%(c),(d) | 0.95% | 13% | $2,456 |
| Year Ended 4/30/2021 | $10.42 | 4.26% | 1.70% | 1.56%(d) | 1.07% | 10% | $2,940 |
| Year Ended 4/30/2020 | $10.10 | 0.80% | 1.66% | 1.56%(d) | 1.41% | 9% | $5,039 |
| Year Ended 4/30/2019 | $10.17 | 4.14% | 1.68% | 1.56%(d) | 1.62% | 9% | $8,669 |
| Year Ended 4/30/2018 | $9.94 | (0.32%) | 1.68% | 1.56%(d) | 1.66% | 7% | $10,759 |
| Institutional Class |
| Year Ended 4/30/2022 | $9.57 | (6.32%) | 0.67%(c) | 0.55%(c),(d) | 1.95% | 13% | $63,686 |
| Year Ended 4/30/2021 | $10.42 | 5.41% | 0.70% | 0.56%(d) | 2.05% | 10% | $74,822 |
| Year Ended 4/30/2020 | $10.09 | 1.72% | 0.66% | 0.56%(d) | 2.40% | 9% | $69,733 |
| Year Ended 4/30/2019 | $10.17 | 5.19% | 0.68% | 0.56%(d) | 2.62% | 9% | $70,343 |
| Year Ended 4/30/2018 | $9.94 | 0.68% | 0.68% | 0.56%(d) | 2.66% | 7% | $77,773 |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $9.60 | (6.20%) | 0.56%(c) | 0.45%(c) | 2.05% | 13% | $7,928 |
| Year Ended 4/30/2021 | $10.45 | 5.42% | 0.59% | 0.45% | 2.16% | 10% | $7,600 |
| Year Ended 4/30/2020 | $10.13 | 1.83% | 0.53% | 0.45% | 2.50% | 9% | $5,913 |
| Year Ended 4/30/2019 | $10.21 | 5.30% | 0.57% | 0.45% | 2.73% | 9% | $852 |
| Year Ended 4/30/2018 | $9.98 | 0.91% | 0.56% | 0.45% | 2.79% | 7% | $747 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 19 |
Notes to Financial Statements
April 30, 2022
Note 1. Organization
Columbia South Carolina Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust (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 Delaware statutory trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. 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. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class and Institutional 3 Class shares are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
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
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
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.
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.
| 20 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
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.
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
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
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
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.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 21 |
Notes to Financial Statements (continued)
April 30, 2022
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 management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended April 30, 2022 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 3 Class shares are subject to an annual limitation of not more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
| 22 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
For the year ended April 30, 2022, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.11 |
| Advisor Class | 0.11 |
| Class C | 0.11 |
| Institutional Class | 0.11 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended April 30, 2022, these minimum account balance fees reduced total expenses of the Fund by $20.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A shares of the Fund. Also under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class C shares of the Fund and a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended April 30, 2022, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 9,159 |
| Class C | — | 1.00(b) | 299 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 23 |
Notes to Financial Statements (continued)
April 30, 2022
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
August 31, 2022 |
| Class A | 0.81% |
| Advisor Class | 0.56 |
| Class C | 1.56 |
| Institutional Class | 0.56 |
| Institutional 3 Class | 0.45 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2022, these differences were primarily due to differing treatment for trustees’ deferred compensation, distributions, capital loss carryforward and re-characterization of distributions for investments. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Excess of distributions
over net investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| (33) | 33 | — |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
| 24 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
The tax character of distributions paid during the years indicated was as follows:
| Year Ended April 30, 2022 | Year Ended April 30, 2021 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 106 | 2,200,829 | — | 2,200,935 | 24 | 2,349,309 | — | 2,349,333 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At April 30, 2022, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 236,494 | — | (1,064,208) | (2,352,449) |
At April 30, 2022, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 101,375,609 | 727,433 | (3,079,882) | (2,352,449) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at April 30, 2022, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended April 30, 2022, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (536,199) | (528,009) | (1,064,208) | — |
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.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $14,194,782 and $21,500,720, respectively, for the year ended April 30, 2022. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 25 |
Notes to Financial Statements (continued)
April 30, 2022
The Fund’s activity in the Interfund Program during the year ended April 30, 2022 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Borrower | 200,000 | 0.67 | 4 |
Interest expense incurred by the Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at April 30, 2022.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended April 30, 2022.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity.
| 26 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
The pandemic caused by coronavirus disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such events could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support,
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 27 |
Notes to Financial Statements (continued)
April 30, 2022
such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At April 30, 2022, one unaffiliated shareholder of record owned 47.6% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 28 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust and Shareholders of Columbia South Carolina Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia South Carolina Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust, referred to hereafter as the "Fund") as of April 30, 2022, the related statement of operations for the year ended April 30, 2022, the statement of changes in net assets for each of the two years in the period ended April 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended April 30, 2022 and the financial highlights for each of the five years in the period ended April 30, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
June 23, 2022
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 29 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended April 30, 2022. Shareholders will be notified in early 2023 of the amounts for use in preparing 2022 income tax returns.
Exempt-
interest
dividends | |
| 100.00% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 176 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 30 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney, specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 176 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 176 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee) since 2019; Director, Apollo Commercial Real Estate Finance, Inc. since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 174 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 174 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 31 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 174 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 176 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2020; former Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 176 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 176 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 174 | None |
| 32 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 174 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 176 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 176 | Director, Blue Cross Blue Shield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation since 1998 |
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 33 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2021; Advisor, Paradigm Asset Management, November 2016-December 2021; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 174 | Former Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2012-2019; Director, Chair of Audit Committee, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2019; Independent Director, Investment Committee and Valuation Committee, Sarona Asset Management, since 2019 |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 176 | Former Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as Directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC since April 2015; President and Principal Executive Officer of the Columbia Funds since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 176 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since January 2022 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 34 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and Head of Global Operations & Investor Services, Columbia Management Investment Advisers, LLC, since March 2022 (previously Vice President, Head of North American Operations, and Co-Head of Global Operations, June 2019 to February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001-January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds, 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 35 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021, through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
| 36 | Columbia South Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
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Columbia South Carolina Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
April 30, 2022
Columbia North Carolina Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia North Carolina Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which 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; visiting columbiathreadneedleus.com/investor/; 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 filings are 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
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
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
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks current income exempt from U.S. federal income tax and North Carolina individual income tax, consistent with moderate fluctuation of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2016
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the Fund.
| Average annual total returns (%) (for the period ended April 30, 2022) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 12/14/92 | -7.20 | 0.78 | 1.22 |
| | Including sales charges | | -9.99 | 0.17 | 0.91 |
| Advisor Class* | 03/19/13 | -7.07 | 1.01 | 1.46 |
| Class C | Excluding sales charges | 12/16/92 | -7.90 | 0.03 | 0.48 |
| | Including sales charges | | -8.81 | 0.03 | 0.48 |
| Institutional Class | 12/11/92 | -6.98 | 1.03 | 1.47 |
| Institutional 3 Class* | 03/01/17 | -6.88 | 1.12 | 1.52 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | -7.28 | 1.62 | 2.21 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products /mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
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.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (April 30, 2012 — April 30, 2022)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia North Carolina Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at April 30, 2022) |
| AAA rating | 15.8 |
| AA rating | 46.9 |
| A rating | 23.9 |
| BBB rating | 10.3 |
| Not rated | 3.1 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended April 30, 2022, Class A shares of Columbia North Carolina Intermediate Municipal Bond Fund returned -7.20% excluding sales charges. Institutional Class shares of the Fund returned -6.98%. The Fund outperformed its benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, which returned -7.28% for the same time period.
Market overview
As the annual period began in May 2021, municipal bonds were one of the few bright spots for U.S. fixed income. Upward pressure on U.S. Treasury yields, driven by fears of inflation, pressured most other sectors. However, municipal bond performance was supported by record inflows, improving credit fundamentals and substantial fiscal stimulus from the U.S. federal government. Notably, tax revenue performance was rather strong, with projected deficits turning into actual surpluses for many state and local governments. Interest rate volatility led most fixed-income sectors to negative returns for the third quarter of 2021, but municipal bond performance remained one of the few positive corners of the U.S. fixed-income market.
The year 2021 ended with yet another new COVID-19 variant emerging, but despite higher transmissibility, the Omicron variant appeared to be less severe than originally feared. With economic growth and employment seemingly on track, the U.S. Federal Reserve (Fed) began tapering its asset purchases while acknowledging that conditions pushing inflation higher could persist. This served to elevate interest rate volatility for the fourth calendar quarter of 2021. Congressional passage of an infrastructure spending plan provided support to the municipal bond sector via federal spending, though movement toward higher individual tax rates, which could have boosted demand, was left out of the final bill. However, entering 2022 with relatively full valuations and low absolute yields left little margin for error within the municipal bond market, and as messaging from the Fed grew increasingly hawkish, municipal bonds could no longer remain immune from rising interest rates. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
The first quarter of 2022 closed with the benchmark down 5.71% in the worst drawdown since the COVID-19 sell-off and the worst first quarter return since 1980. As is often the case with municipal bonds, negative returns precipitated outflows, which, in turn, led to more negative returns. Long and intermediate national funds, as well as high-yield funds, experienced the heaviest pressure. A silver lining to the sell-off was that credit fundamentals were not a concern, as evidenced by the modest differential between below-investment grade and investment-grade returns. A lack of high-yield supply helped to keep those returns relatively tight, and lower new issue supply avoided exacerbating the returns. Conditions persisted into the last month of the annual period, with the Bloomberg Municipal Bond Index posting a return of -2.77% in April 2022, and municipal bonds underperforming U.S. Treasuries for the month. However, rising interest rates coupled with outflows had a positive side effect for the municipal bond market. Excluding the brief COVID-19 sell-off, tax-exempt yields had not seen the levels of the first months of 2022 since early 2019. Indeed, versus other fixed-income sectors, taxable equivalent yields were attractive enough to begin enticing even bank and insurance buyers back into the municipal market. Buyers of municipal credit were also drawn in by the solid fundamentals underpinning state and local governments, which on the back of record tax collections, substantial federal aid and a growing economy, remained rather healthy. Credit upgrades outpaced downgrades, and defaults remained exceptionally low.
The North Carolina intermediate municipal market underperformed the national market, as measured by the Fund’s benchmark. This underperformance is attributable to the longer duration of the state’s market versus the benchmark. BBB-rated North Carolina municipal securities underperformed those within the national market, as did securities in local government obligation (GO) bonds, housing and the special tax sector. Conversely, higher rated investment-grade securities (AAA and AA) within the state outperformed similarly rated securities in the national municipal market. Education, water & sewer, and state GO bonds outperformed those in the national market. Other positives for the state included a lack of prepaid bonds in the gas sector, as they underperformed nationally, as well as an overweight to the leasing sector.
The Fund’s notable contributors during the period
| • | As interest rates rose during the period, the Fund’s duration, which was shorter than that of the benchmark, contributed to Fund performance. |
| • | The Fund benefited from its exposure to non-investment-grade (high-yield) securities during the period, as well as from security selection in lower rated investment-grade securities. |
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
| • | The Fund’s overweighted allocation to the education sector contributed to Fund performance, as this area outperformed the benchmark. |
| • | Security selection within the hospital, continuing care retirement community (CCRC) (namely, Twin Lakes CCRC, Pines at Davidson CCRC and Sharon Towers CCRC), electric, housing and transportation sectors also contributed to Fund performance during the period. |
The Fund’s notable detractors during the period
| • | The Fund’s underweight to state GO bonds, which outperformed the national market, detracted from Fund performance relative to the benchmark during the period. |
| • | An overweighted allocation to the electric sector also weighed on relative performance. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund 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.
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 |
| | Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual |
| Class A | 1,000.00 | 1,000.00 | 930.80 | 1,020.94 | 3.85 | 4.03 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 931.80 | 1,022.19 | 2.65 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 927.30 | 1,017.20 | 7.45 | 7.80 | 1.55 |
| Institutional Class | 1,000.00 | 1,000.00 | 931.90 | 1,022.19 | 2.65 | 2.77 | 0.55 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 932.40 | 1,022.54 | 2.31 | 2.42 | 0.48 |
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.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 7 |
Portfolio of Investments
April 30, 2022
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 98.3% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 3.3% |
| City of Charlotte Airport(a) |
| Revenue Bonds |
| Charlotte Douglas International |
| Series 2019 |
| 07/01/2035 | 5.000% | | 1,195,000 | 1,296,649 |
| City of Charlotte Airport |
| Revenue Bonds |
| Series 2017A |
| 07/01/2028 | 5.000% | | 500,000 | 549,328 |
| Raleigh Durham Airport Authority(a) |
| Refunding Revenue Bonds |
| Series 2020A |
| 05/01/2034 | 5.000% | | 1,150,000 | 1,255,388 |
| 05/01/2036 | 5.000% | | 2,000,000 | 2,178,202 |
| Total | 5,279,567 |
| Forest Products 0.6% |
| Columbus County Industrial Facilities & Pollution Control Financing Authority |
| Refunding Revenue Bonds |
| International Paper Co. Project |
| Series 2020 (Mandatory Put 06/16/25) |
| 05/01/2034 | 1.375% | | 1,000,000 | 948,588 |
| Higher Education 7.4% |
| Appalachian State University |
| Refunding Revenue Bonds |
| Series 2016A |
| 10/01/2026 | 5.000% | | 325,000 | 352,719 |
| Revenue Bonds |
| Series 2018 |
| 05/01/2035 | 5.000% | | 1,095,000 | 1,217,725 |
| North Carolina Agricultural & Technical State University |
| Refunding Revenue Bonds |
| General Purpose |
| Series 2015A |
| 10/01/2032 | 5.000% | | 2,000,000 | 2,152,524 |
| North Carolina Capital Facilities Finance Agency |
| Refunding Revenue Bonds |
| Campbell University |
| Series 2021A |
| 10/01/2030 | 5.000% | | 1,115,000 | 1,219,207 |
| Revenue Bonds |
| Wake Forest University |
| Series 2018 |
| 01/01/2034 | 5.000% | | 400,000 | 446,649 |
| North Carolina Central University |
| Refunding Revenue Bonds |
| Series 2016 |
| 10/01/2029 | 4.000% | | 625,000 | 641,545 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Series 2019 |
| 04/01/2036 | 5.000% | | 500,000 | 545,966 |
| 04/01/2038 | 5.000% | | 500,000 | 544,213 |
| North Carolina State University at Raleigh |
| Refunding Revenue Bonds |
| General |
| Series 2018 |
| 10/01/2027 | 5.000% | | 300,000 | 336,284 |
| 10/01/2028 | 5.000% | | 250,000 | 284,128 |
| University of North Carolina at Charlotte (The) |
| Refunding Revenue Bonds |
| Governors |
| Series 2020A |
| 10/01/2035 | 4.000% | | 200,000 | 206,565 |
| 10/01/2037 | 4.000% | | 300,000 | 309,298 |
| Revenue Bonds |
| Board of Governors |
| Series 2017 |
| 10/01/2029 | 5.000% | | 500,000 | 554,792 |
| University of North Carolina at Greensboro |
| Refunding Revenue Bonds |
| Series 2016 |
| 04/01/2029 | 5.000% | | 390,000 | 423,868 |
| 04/01/2030 | 5.000% | | 250,000 | 271,419 |
| University of North Carolina at Wilmington |
| Refunding Revenue Bonds |
| Series 2019B |
| 10/01/2034 | 5.000% | | 355,000 | 398,717 |
| Western Carolina University |
| Revenue Bonds |
| General |
| Series 2018 |
| 10/01/2033 | 5.000% | | 250,000 | 273,285 |
| 10/01/2034 | 5.000% | | 575,000 | 627,890 |
| Series 2020B |
| 04/01/2033 | 5.000% | | 1,000,000 | 1,120,214 |
| Total | 11,927,008 |
| Hospital 4.4% |
| Charlotte-Mecklenburg Hospital Authority (The) |
| Revenue Bonds |
| Atrium Health |
| Series 2021 (Mandatory Put 12/01/28) |
| 01/15/2050 | 5.000% | | 1,500,000 | 1,669,556 |
| Series 2021 (Mandatory Put 12/01/31) |
| 01/15/2049 | 5.000% | | 1,500,000 | 1,697,060 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| North Carolina Medical Care Commission |
| Refunding Revenue Bonds |
| Novant Health Obligation Group |
| Series 2013 |
| 11/01/2024 | 5.000% | | 530,000 | 538,676 |
| Revenue Bonds |
| CaroMont Health |
| Series 2021A |
| 02/01/2036 | 4.000% | | 500,000 | 510,786 |
| Rex Healthcare |
| Series 2015A |
| 07/01/2032 | 5.000% | | 1,000,000 | 1,064,332 |
| Series 2020A |
| 07/01/2035 | 5.000% | | 800,000 | 898,901 |
| Wake Forest Baptist Obligation Group |
| Series 2019 |
| 12/01/2033 | 5.000% | | 595,000 | 658,500 |
| Total | 7,037,811 |
| Joint Power Authority 4.8% |
| North Carolina Municipal Power Agency No. 1 |
| Refunding Revenue Bonds |
| Series 2015A |
| 01/01/2026 | 5.000% | | 1,500,000 | 1,617,983 |
| 01/01/2031 | 5.000% | | 2,000,000 | 2,147,753 |
| Series 2016A |
| 01/01/2028 | 5.000% | | 1,500,000 | 1,625,640 |
| Series 2019A |
| 01/01/2032 | 5.000% | | 2,000,000 | 2,260,962 |
| Total | 7,652,338 |
| Local Appropriation 19.2% |
| City of Charlotte |
| Refunding Certificate of Participation |
| Series 2019B |
| 06/01/2034 | 5.000% | | 2,000,000 | 2,257,586 |
| City of Durham |
| Revenue Bonds |
| Series 2018 |
| 04/01/2034 | 4.000% | | 1,000,000 | 1,041,917 |
| City of Kannapolis |
| Revenue Bonds |
| Series 2014 |
| 04/01/2031 | 5.000% | | 1,365,000 | 1,423,806 |
| City of Monroe |
| Refunding Revenue Bonds |
| Series 2016 |
| 03/01/2035 | 5.000% | | 1,000,000 | 1,076,151 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Wilmington |
| Refunding Revenue Bonds |
| Series 2014A |
| 06/01/2028 | 5.000% | | 500,000 | 524,813 |
| County of Brunswick |
| Revenue Bonds |
| Series 2015A |
| 06/01/2028 | 5.000% | | 250,000 | 268,619 |
| 06/01/2029 | 5.000% | | 250,000 | 268,676 |
| County of Buncombe |
| Revenue Bonds |
| Series 2014A |
| 06/01/2032 | 5.000% | | 1,635,000 | 1,710,382 |
| County of Catawba |
| Revenue Bonds |
| Series 2018 |
| 12/01/2036 | 4.000% | | 1,940,000 | 2,000,758 |
| County of Dare |
| Refunding Revenue Bonds |
| Series 2016A |
| 06/01/2031 | 4.000% | | 225,000 | 234,114 |
| County of Davidson |
| Revenue Bonds |
| Series 2020 |
| 06/01/2037 | 4.000% | | 400,000 | 414,791 |
| County of Gaston |
| Revenue Bonds |
| Series 2019A |
| 04/01/2034 | 5.000% | | 250,000 | 281,570 |
| 04/01/2035 | 5.000% | | 300,000 | 337,491 |
| County of Harnett |
| Refunding Revenue Bonds |
| Series 2020 |
| 12/01/2027 | 5.000% | | 375,000 | 421,581 |
| Revenue Bonds |
| Series 2019 |
| 10/01/2037 | 4.000% | | 955,000 | 978,329 |
| County of Henderson |
| Revenue Bonds |
| Series 2015 |
| 10/01/2030 | 5.000% | | 500,000 | 540,846 |
| Series 2020 |
| 06/01/2029 | 5.000% | | 525,000 | 601,074 |
| County of Lee |
| Revenue Bonds |
| Series 2018 |
| 05/01/2036 | 4.000% | | 500,000 | 514,717 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 9 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| County of Martin |
| Refunding Revenue Bonds |
| Water & Sewer District |
| Series 2014 |
| 06/01/2030 | 4.000% | | 730,000 | 748,446 |
| County of Onslow |
| Revenue Bonds |
| Series 2015 |
| 06/01/2027 | 4.000% | | 405,000 | 422,239 |
| Series 2016 |
| 10/01/2028 | 5.000% | | 1,000,000 | 1,097,254 |
| County of Pender |
| Revenue Bonds |
| Series 2015 |
| 04/01/2027 | 5.000% | | 1,165,000 | 1,248,257 |
| 04/01/2028 | 5.000% | | 1,290,000 | 1,383,344 |
| County of Randolph |
| Refunding Revenue Bonds |
| Series 2013C |
| 10/01/2026 | 5.000% | | 1,500,000 | 1,654,760 |
| Revenue Bonds |
| Series 2019B |
| 10/01/2034 | 5.000% | | 500,000 | 566,878 |
| County of Sampson |
| Refunding Revenue Bonds |
| Series 2017 |
| 09/01/2035 | 4.000% | | 1,000,000 | 1,022,032 |
| County of Surry |
| Revenue Bonds |
| Series 2019 |
| 06/01/2032 | 5.000% | | 275,000 | 311,390 |
| 06/01/2033 | 5.000% | | 350,000 | 395,582 |
| Series 2021 |
| 10/01/2030 | 5.000% | | 505,000 | 586,643 |
| County of Union |
| Refunding Revenue Bonds |
| Series 2012 |
| 12/01/2024 | 5.000% | | 1,715,000 | 1,827,174 |
| County of Wake |
| Refunding Revenue Bonds |
| Series 2018A |
| 08/01/2036 | 4.000% | | 2,000,000 | 2,071,838 |
| County of Wilkes |
| Refunding Revenue Bonds |
| Series 2015 |
| 06/01/2027 | 5.000% | | 500,000 | 536,762 |
| 06/01/2029 | 5.000% | | 500,000 | 535,227 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Durham Capital Financing Corp. |
| Revenue Bonds |
| Series 2018 |
| 10/01/2035 | 4.000% | | 1,500,000 | 1,560,802 |
| Total | 30,865,849 |
| Local General Obligation 7.8% |
| City of Charlotte |
| Unlimited General Obligation Refunding Bonds |
| Series 2020A |
| 06/01/2027 | 5.000% | | 725,000 | 812,657 |
| City of Greensboro |
| Unlimited General Obligation Bonds |
| Series 2020B |
| Series 2020B |
| 04/01/2031 | 5.000% | | 2,205,000 | 2,563,729 |
| County of Durham |
| Unlimited General Obligation Bonds |
| Series 2019 |
| 06/01/2032 | 5.000% | | 620,000 | 709,717 |
| County of Forsyth |
| Unlimited General Obligation Bonds |
| Public Improvement |
| Series 2019B |
| 03/01/2026 | 5.000% | | 1,000,000 | 1,095,131 |
| County of Gaston |
| Unlimited General Obligation Refunding Bonds |
| Series 2020 |
| 02/01/2029 | 5.000% | | 1,500,000 | 1,709,756 |
| County of Guilford |
| Unlimited General Obligation Bonds |
| Public Improvement |
| Series 2017B |
| 05/01/2026 | 5.000% | | 1,000,000 | 1,098,830 |
| County of Mecklenburg |
| Unlimited General Obligation Public Improvement Bonds |
| Series 2016B |
| 12/01/2027 | 5.000% | | 1,180,000 | 1,309,352 |
| County of Moore |
| Unlimited General Obligation Refunding Bonds |
| Series 2016 |
| 06/01/2028 | 5.000% | | 1,000,000 | 1,132,215 |
| County of Pitt |
| Refunding Revenue Bonds |
| Series 2017 |
| 04/01/2024 | 5.000% | | 410,000 | 430,563 |
| County of Wake |
| Unlimited General Obligation Public Improvement Bonds |
| Series 2019A |
| 03/01/2033 | 5.000% | | 1,500,000 | 1,707,683 |
| Total | 12,569,633 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Multi-Family 4.5% |
| North Carolina Capital Facilities Finance Agency |
| Refunding Revenue Bonds |
| North Carolina A&T University Foundation Project |
| Series 2015A |
| 06/01/2028 | 5.000% | | 1,000,000 | 1,061,616 |
| The Arc of North Carolina |
| Series 2017 |
| 10/01/2034 | 5.000% | | 1,500,000 | 1,603,891 |
| University of North Carolina at Wilmington |
| Refunding Revenue Bonds |
| Series 2015 |
| 06/01/2029 | 5.000% | | 2,000,000 | 2,126,776 |
| Western Carolina University |
| Limited General Obligation Refunding Revenue Bonds |
| Student Housing |
| Series 2016 (AGM) |
| 06/01/2027 | 5.000% | | 500,000 | 544,061 |
| 06/01/2028 | 5.000% | | 1,000,000 | 1,084,949 |
| 06/01/2029 | 5.000% | | 800,000 | 866,269 |
| Total | 7,287,562 |
| Municipal Power 1.5% |
| City of Fayetteville Public Works Commission |
| Revenue Bonds |
| Series 2014 |
| 03/01/2027 | 4.000% | | 1,250,000 | 1,282,436 |
| Greenville Utilities Commission |
| Revenue Bonds |
| Series 2019 |
| 08/01/2032 | 5.000% | | 625,000 | 711,399 |
| 08/01/2033 | 5.000% | | 400,000 | 453,925 |
| Total | 2,447,760 |
| Refunded / Escrowed 11.1% |
| City of Winston-Salem |
| Prerefunded 06/01/24 Revenue Bonds |
| Series 2014C |
| 06/01/2029 | 5.000% | | 750,000 | 789,558 |
| County of Johnston |
| Prerefunded 06/01/24 Revenue Bonds |
| Series 2014 |
| 06/01/2028 | 5.000% | | 1,000,000 | 1,053,787 |
| County of New Hanover |
| Prerefunded 10/01/27 Revenue Bonds |
| New Hanover Regional Medical Center |
| Series 2017 |
| 10/01/2030 | 5.000% | | 1,200,000 | 1,338,714 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| County of Wake |
| Prerefunded 10/01/26 Revenue Bonds |
| Series 1993 (NPFGC) |
| 10/01/2026 | 5.125% | | 1,265,000 | 1,340,132 |
| East Carolina University |
| Prerefunded 10/01/23 Revenue Bonds |
| General |
| Series 2014A |
| 10/01/2031 | 5.000% | | 1,900,000 | 1,973,867 |
| North Carolina Medical Care Commission |
| Prerefunded 06/01/22 Revenue Bonds |
| Southeastern Regional Medical Center |
| Series 2012 |
| 06/01/2026 | 5.000% | | 1,000,000 | 1,002,830 |
| Prerefunded 06/01/25 Revenue Bonds |
| Vidant Health |
| Series 2015 |
| 06/01/2030 | 5.000% | | 1,000,000 | 1,073,523 |
| Prerefunded 09/01/22 Revenue Bonds |
| 1st Mortgage - United Church |
| Series 2015A |
| 09/01/2030 | 4.500% | | 1,000,000 | 1,009,626 |
| Prerefunded 10/01/22 Revenue Bonds |
| WakeMed |
| Series 2012A |
| 10/01/2031 | 5.000% | | 2,000,000 | 2,028,873 |
| Prerefunded 10/01/23 Revenue Bonds |
| 1st Mortgage - United Methodist |
| Series 2013A |
| 10/01/2033 | 5.000% | | 1,595,000 | 1,651,361 |
| Orange County Public Facilities Co. |
| Prerefunded 10/01/22 Revenue Bonds |
| Series 2012 |
| 10/01/2024 | 5.000% | | 835,000 | 847,055 |
| 10/01/2024 | 5.000% | | 490,000 | 496,870 |
| University of North Carolina at Charlotte (The) |
| Prerefunded 04/01/24 Revenue Bonds |
| Series 2014 |
| 04/01/2030 | 5.000% | | 1,000,000 | 1,050,153 |
| University of North Carolina at Greensboro |
| Prerefunded 04/01/24 Revenue Bonds |
| General |
| Series 2014 |
| 04/01/2032 | 5.000% | | 2,000,000 | 2,097,812 |
| Total | 17,754,161 |
| Retirement Communities 5.8% |
| North Carolina Medical Care Commission |
| Refunding Revenue Bonds |
| Pennybyrn at Maryfield |
| Series 2015 |
| 10/01/2025 | 5.000% | | 610,000 | 624,742 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 11 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Retirement Facilities 1st Mortgage |
| Series 2019 |
| 01/01/2039 | 5.000% | | 1,000,000 | 987,691 |
| Series 2021C |
| 03/01/2028 | 5.000% | | 360,000 | 365,427 |
| Sharon Towers |
| Series 2019A |
| 07/01/2033 | 5.000% | | 1,000,000 | 1,036,456 |
| Southminster, Inc. |
| Series 2016 |
| 10/01/2025 | 5.000% | | 1,260,000 | 1,306,679 |
| United Methodist Retirement |
| Series 2016 |
| 10/01/2030 | 5.000% | | 700,000 | 747,570 |
| Revenue Bonds |
| Pennybyrn at Maryfield Project |
| Series 2020B-2 |
| 10/01/2024 | 2.500% | | 745,000 | 728,748 |
| Presbyterian Homes Obligated Group (The) |
| Series 2020 |
| 10/01/2035 | 4.000% | | 650,000 | 627,688 |
| The Pines at Davidson Project |
| Series 2019 |
| 01/01/2038 | 5.000% | | 1,000,000 | 1,057,505 |
| Twin Lakes Community |
| Series 2019A |
| 01/01/2038 | 5.000% | | 1,750,000 | 1,846,119 |
| Total | 9,328,625 |
| Sales Tax 0.7% |
| City of Rocky Mount |
| Revenue Bonds |
| Series 2016 |
| 05/01/2028 | 5.000% | | 1,000,000 | 1,089,425 |
| Single Family 4.1% |
| North Carolina Housing Finance Agency |
| Revenue Bonds |
| Home Ownership |
| Series 2021-47 (GNMA) |
| 01/01/2029 | 1.250% | | 1,990,000 | 1,763,065 |
| 07/01/2029 | 1.350% | | 1,885,000 | 1,664,638 |
| Series 2017-38B (GNMA) |
| 07/01/2037 | 3.850% | | 1,225,000 | 1,242,829 |
| Series 2019-41 (GNMA) |
| 07/01/2034 | 3.100% | | 550,000 | 519,437 |
| Series 2019-42 |
| 07/01/2039 | 2.625% | | 840,000 | 709,713 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 44 |
| 01/01/2027 | 1.950% | | 795,000 | 744,371 |
| Total | 6,644,053 |
| State Appropriated 1.3% |
| State of North Carolina |
| Refunding Revenue Bonds |
| Series 2014B |
| 06/01/2025 | 5.000% | | 2,000,000 | 2,150,124 |
| State General Obligation 0.7% |
| State of North Carolina |
| Unlimited General Obligation Refunding Bonds |
| Series 2016A |
| 06/01/2026 | 5.000% | | 1,000,000 | 1,100,589 |
| Transportation 2.2% |
| State of North Carolina |
| Revenue Bonds |
| Grant Anticipation |
| Series 2021 |
| 03/01/2030 | 5.000% | | 1,000,000 | 1,142,603 |
| Series 2019 |
| 03/01/2033 | 5.000% | | 1,250,000 | 1,390,165 |
| Vehicle - GARVEE |
| Series 2015 |
| 03/01/2027 | 5.000% | | 900,000 | 960,863 |
| Total | 3,493,631 |
| Turnpike / Bridge / Toll Road 5.0% |
| North Carolina Turnpike Authority |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2017 |
| 01/01/2030 | 5.000% | | 1,700,000 | 1,824,841 |
| 01/01/2032 | 5.000% | | 1,450,000 | 1,549,500 |
| Series 2017 (AGM) |
| 01/01/2031 | 5.000% | | 750,000 | 817,522 |
| Revenue Bonds |
| BAN Series 2020 |
| 02/01/2024 | 5.000% | | 2,000,000 | 2,076,068 |
| North Carolina Turnpike Authority(b) |
| Refunding Revenue Bonds |
| Series 2016C |
| 07/01/2029 | 0.000% | | 750,000 | 557,539 |
| Revenue Bonds |
| Series 2017C |
| 07/01/2030 | 0.000% | | 550,000 | 388,883 |
| 07/01/2031 | 0.000% | | 1,100,000 | 737,857 |
| Total | 7,952,210 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Water & Sewer 13.9% |
| City of Charlotte Water & Sewer System |
| Refunding Revenue Bonds |
| Series 2015 |
| 07/01/2024 | 5.000% | | 1,010,000 | 1,067,181 |
| Series 2018 |
| 07/01/2035 | 4.000% | | 2,000,000 | 2,089,991 |
| Series 2020 |
| 07/01/2036 | 4.000% | | 2,000,000 | 2,105,925 |
| City of Gastonia Combined Utilities System |
| Revenue Bonds |
| Series 2015 |
| 05/01/2029 | 5.000% | | 265,000 | 284,322 |
| 05/01/2030 | 5.000% | | 660,000 | 708,197 |
| City of Greensboro Combined Water & Sewer System |
| Refunding Revenue Bonds |
| Series 2006 |
| 06/01/2023 | 5.250% | | 2,000,000 | 2,069,105 |
| City of Jacksonville Enterprise System |
| Refunding Revenue Bonds |
| Series 2016 |
| 05/01/2028 | 5.250% | | 250,000 | 285,852 |
| City of Raleigh Combined Enterprise System |
| Refunding Revenue Bonds |
| Series 2015B |
| 12/01/2025 | 5.000% | | 1,200,000 | 1,307,480 |
| City of Winston-Salem Water & Sewer System |
| Refunding Revenue Bonds |
| Series 2016A |
| 06/01/2024 | 5.000% | | 1,300,000 | 1,371,279 |
| 06/01/2033 | 4.000% | | 2,165,000 | 2,243,472 |
| Series 2020A |
| 06/01/2036 | 4.000% | | 2,000,000 | 2,105,233 |
| Revenue Bonds |
| Series 2017 |
| 06/01/2031 | 4.000% | | 400,000 | 422,794 |
| County of Brunswick Enterprise Systems |
| Refunding Revenue Bonds |
| Series 2015 |
| 04/01/2027 | 5.000% | | 1,500,000 | 1,611,137 |
| Revenue Bonds |
| Enterprise System |
| Series 2020 |
| 04/01/2033 | 4.000% | | 500,000 | 527,996 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| County of Dare Utilities System |
| Refunding Revenue Bonds |
| Series 2017 |
| 02/01/2032 | 4.000% | | 300,000 | 312,393 |
| County of Lincoln Enterprise System |
| Refunding Revenue Bonds |
| Series 2020 |
| 08/01/2029 | 5.000% | | 320,000 | 366,912 |
| County of Union Enterprise System |
| Revenue Bonds |
| Enterprise System |
| Series 2019 |
| 06/01/2031 | 5.000% | | 1,000,000 | 1,137,713 |
| Series 2015 |
| 06/01/2029 | 5.000% | | 500,000 | 542,803 |
| Onslow Water & Sewer Authority |
| Refunding Revenue Bonds |
| Series 2016 |
| 12/01/2031 | 4.000% | | 820,000 | 856,516 |
| Town of Fuquay-Varina Combined Utilities System |
| Revenue Bonds |
| Series 2016 |
| 04/01/2030 | 5.000% | | 335,000 | 363,009 |
| 04/01/2031 | 5.000% | | 450,000 | 486,739 |
| Total | 22,266,049 |
Total Municipal Bonds
(Cost $162,812,176) | 157,794,983 |
| Money Market Funds 0.9% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(c) | 112,839 | 112,828 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(c) | 1,350,541 | 1,350,541 |
Total Money Market Funds
(Cost $1,463,380) | 1,463,369 |
Total Investments in Securities
(Cost: $164,275,556) | 159,258,352 |
| Other Assets & Liabilities, Net | | 1,269,594 |
| Net Assets | 160,527,946 |
Notes to Portfolio of Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Zero coupon bond. |
| (c) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 13 |
Portfolio of Investments (continued)
April 30, 2022
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| BAN | Bond Anticipation Note |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | 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 April 30, 2022:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 157,794,983 | — | 157,794,983 |
| Money Market Funds | 1,463,369 | — | — | 1,463,369 |
| Total Investments in Securities | 1,463,369 | 157,794,983 | — | 159,258,352 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Assets and Liabilities
April 30, 2022
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $164,275,556) | $159,258,352 |
| Cash | 478 |
| Receivable for: | |
| Capital shares sold | 75,437 |
| Interest | 1,831,751 |
| Expense reimbursement due from Investment Manager | 263 |
| Prepaid expenses | 6,188 |
| Total assets | 161,172,469 |
| Liabilities | |
| Payable for: | |
| Capital shares purchased | 212,496 |
| Distributions to shareholders | 279,525 |
| Management services fees | 2,069 |
| Distribution and/or service fees | 160 |
| Transfer agent fees | 3,090 |
| Compensation of board members | 129,267 |
| Other expenses | 17,916 |
| Total liabilities | 644,523 |
| Net assets applicable to outstanding capital stock | $160,527,946 |
| Represented by | |
| Paid in capital | 166,346,474 |
| Total distributable earnings (loss) | (5,818,528) |
| Total - representing net assets applicable to outstanding capital stock | $160,527,946 |
| Class A | |
| Net assets | $15,892,409 |
| Shares outstanding | 1,635,247 |
| Net asset value per share | $9.72 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.02 |
| Advisor Class | |
| Net assets | $2,889,382 |
| Shares outstanding | 297,770 |
| Net asset value per share | $9.70 |
| Class C | |
| Net assets | $1,892,178 |
| Shares outstanding | 194,741 |
| Net asset value per share | $9.72 |
| Institutional Class | |
| Net assets | $24,548,514 |
| Shares outstanding | 2,528,348 |
| Net asset value per share | $9.71 |
| Institutional 3 Class | |
| Net assets | $115,305,463 |
| Shares outstanding | 11,839,742 |
| Net asset value per share | $9.74 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 15 |
Statement of Operations
Year Ended April 30, 2022
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $489 |
| Interest | 4,631,719 |
| Total income | 4,632,208 |
| Expenses: | |
| Management services fees | 887,868 |
| Distribution and/or service fees | |
| Class A | 42,805 |
| Class C | 23,769 |
| Transfer agent fees | |
| Class A | 13,838 |
| Advisor Class | 2,642 |
| Class C | 1,922 |
| Institutional Class | 20,931 |
| Institutional 3 Class | 7,545 |
| Compensation of board members | 26,408 |
| Custodian fees | 1,562 |
| Printing and postage fees | 12,567 |
| Registration fees | 16,302 |
| Audit fees | 29,500 |
| Legal fees | 12,734 |
| Interest on interfund lending | 12 |
| Compensation of chief compliance officer | 29 |
| Other | 11,874 |
| Total expenses | 1,112,308 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (110,976) |
| Total net expenses | 1,001,332 |
| Net investment income | 3,630,876 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (460,218) |
| Net realized loss | (460,218) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (16,041,904) |
| Net change in unrealized appreciation (depreciation) | (16,041,904) |
| Net realized and unrealized loss | (16,502,122) |
| Net decrease in net assets resulting from operations | $(12,871,246) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Statement of Changes in Net Assets
| | Year Ended
April 30, 2022 | Year Ended
April 30, 2021 |
| Operations | | |
| Net investment income | $3,630,876 | $3,935,280 |
| Net realized gain (loss) | (460,218) | 106,564 |
| Net change in unrealized appreciation (depreciation) | (16,041,904) | 6,945,335 |
| Net increase (decrease) in net assets resulting from operations | (12,871,246) | 10,987,179 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (283,914) | (302,590) |
| Advisor Class | (62,331) | (94,853) |
| Class C | (21,526) | (25,935) |
| Institutional Class | (495,087) | (492,975) |
| Institutional 3 Class | (2,777,311) | (3,018,926) |
| Total distributions to shareholders | (3,640,169) | (3,935,279) |
| Decrease in net assets from capital stock activity | (18,411,052) | (1,925,637) |
| Total increase (decrease) in net assets | (34,922,467) | 5,126,263 |
| Net assets at beginning of year | 195,450,413 | 190,324,150 |
| Net assets at end of year | $160,527,946 | $195,450,413 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 17 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | April 30, 2022 | April 30, 2021 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 131,657 | 1,339,765 | 204,825 | 2,178,359 |
| Distributions reinvested | 22,081 | 230,301 | 23,288 | 247,759 |
| Redemptions | (173,908) | (1,803,504) | (244,823) | (2,598,491) |
| Net decrease | (20,170) | (233,438) | (16,710) | (172,373) |
| Advisor Class | | | | |
| Subscriptions | 47,588 | 504,984 | 36,252 | 384,707 |
| Distributions reinvested | 5,963 | 62,141 | 8,912 | 94,659 |
| Redemptions | (75,134) | (789,925) | (206,290) | (2,184,762) |
| Net decrease | (21,583) | (222,800) | (161,126) | (1,705,396) |
| Class C | | | | |
| Subscriptions | 19,227 | 204,915 | 63,221 | 669,934 |
| Distributions reinvested | 1,840 | 19,188 | 2,088 | 22,197 |
| Redemptions | (64,901) | (666,623) | (125,733) | (1,339,410) |
| Net decrease | (43,834) | (442,520) | (60,424) | (647,279) |
| Institutional Class | | | | |
| Subscriptions | 516,703 | 5,310,747 | 478,877 | 5,072,731 |
| Distributions reinvested | 40,420 | 420,845 | 38,564 | 409,788 |
| Redemptions | (485,514) | (4,986,226) | (370,338) | (3,931,885) |
| Net increase | 71,609 | 745,366 | 147,103 | 1,550,634 |
| Institutional 3 Class | | | | |
| Subscriptions | 662,796 | 7,037,929 | 2,926,315 | 31,149,543 |
| Distributions reinvested | 5,911 | 61,644 | 5,308 | 56,575 |
| Redemptions | (2,481,764) | (25,357,233) | (3,021,505) | (32,157,341) |
| Net decrease | (1,813,057) | (18,257,660) | (89,882) | (951,223) |
| Total net decrease | (1,827,035) | (18,411,052) | (181,039) | (1,925,637) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
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Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 19 |
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 payment of sales charges, if any. 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 asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Class A |
| Year Ended 4/30/2022 | $10.65 | 0.17 | (0.93) | (0.76) | (0.17) | (0.17) |
| Year Ended 4/30/2021 | $10.27 | 0.18 | 0.38 | 0.56 | (0.18) | (0.18) |
| Year Ended 4/30/2020 | $10.33 | 0.21 | (0.06) | 0.15 | (0.21) | (0.21) |
| Year Ended 4/30/2019 | $10.14 | 0.24 | 0.19 | 0.43 | (0.24) | (0.24) |
| Year Ended 4/30/2018 | $10.33 | 0.24 | (0.19) | 0.05 | (0.24) | (0.24) |
| Advisor Class |
| Year Ended 4/30/2022 | $10.64 | 0.20 | (0.94) | (0.74) | (0.20) | (0.20) |
| Year Ended 4/30/2021 | $10.26 | 0.20 | 0.38 | 0.58 | (0.20) | (0.20) |
| Year Ended 4/30/2020 | $10.32 | 0.24 | (0.06) | 0.18 | (0.24) | (0.24) |
| Year Ended 4/30/2019 | $10.12 | 0.26 | 0.20 | 0.46 | (0.26) | (0.26) |
| Year Ended 4/30/2018 | $10.32 | 0.27 | (0.20) | 0.07 | (0.27) | (0.27) |
| Class C |
| Year Ended 4/30/2022 | $10.65 | 0.09 | (0.93) | (0.84) | (0.09) | (0.09) |
| Year Ended 4/30/2021 | $10.27 | 0.10 | 0.38 | 0.48 | (0.10) | (0.10) |
| Year Ended 4/30/2020 | $10.33 | 0.13 | (0.06) | 0.07 | (0.13) | (0.13) |
| Year Ended 4/30/2019 | $10.13 | 0.16 | 0.20 | 0.36 | (0.16) | (0.16) |
| Year Ended 4/30/2018 | $10.33 | 0.16 | (0.20) | (0.04) | (0.16) | (0.16) |
| Institutional Class |
| Year Ended 4/30/2022 | $10.64 | 0.20 | (0.93) | (0.73) | (0.20) | (0.20) |
| Year Ended 4/30/2021 | $10.26 | 0.20 | 0.38 | 0.58 | (0.20) | (0.20) |
| Year Ended 4/30/2020 | $10.32 | 0.24 | (0.06) | 0.18 | (0.24) | (0.24) |
| Year Ended 4/30/2019 | $10.13 | 0.26 | 0.19 | 0.45 | (0.26) | (0.26) |
| Year Ended 4/30/2018 | $10.32 | 0.27 | (0.19) | 0.08 | (0.27) | (0.27) |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $10.67 | 0.21 | (0.93) | (0.72) | (0.21) | (0.21) |
| Year Ended 4/30/2021 | $10.29 | 0.21 | 0.38 | 0.59 | (0.21) | (0.21) |
| Year Ended 4/30/2020 | $10.36 | 0.25 | (0.07) | 0.18 | (0.25) | (0.25) |
| Year Ended 4/30/2019 | $10.16 | 0.27 | 0.20 | 0.47 | (0.27) | (0.27) |
| Year Ended 4/30/2018 | $10.35 | 0.28 | (0.19) | 0.09 | (0.28) | (0.28) |
| 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) | Ratios include interfund lending expense which is less than 0.01%. |
| (d) | Ratios include line of credit interest expense which is less than 0.01%. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 4/30/2022 | $9.72 | (7.20%) | 0.86%(c) | 0.80%(c) | 1.65% | 6% | $15,892 |
| Year Ended 4/30/2021 | $10.65 | 5.45% | 0.88% | 0.81% | 1.68% | 15% | $17,634 |
| Year Ended 4/30/2020 | $10.27 | 1.43% | 0.85% | 0.81% | 2.01% | 7% | $17,176 |
| Year Ended 4/30/2019 | $10.33 | 4.26% | 0.87%(d) | 0.81%(d) | 2.32% | 23% | $16,469 |
| Year Ended 4/30/2018 | $10.14 | 0.48% | 0.88% | 0.81% | 2.33% | 10% | $18,035 |
| Advisor Class |
| Year Ended 4/30/2022 | $9.70 | (7.07%) | 0.61%(c) | 0.55%(c) | 1.90% | 6% | $2,889 |
| Year Ended 4/30/2021 | $10.64 | 5.72% | 0.63% | 0.56% | 1.93% | 15% | $3,396 |
| Year Ended 4/30/2020 | $10.26 | 1.69% | 0.60% | 0.56% | 2.26% | 7% | $4,928 |
| Year Ended 4/30/2019 | $10.32 | 4.62% | 0.62%(d) | 0.56%(d) | 2.57% | 23% | $5,505 |
| Year Ended 4/30/2018 | $10.12 | 0.63% | 0.63% | 0.56% | 2.57% | 10% | $4,589 |
| Class C |
| Year Ended 4/30/2022 | $9.72 | (7.90%) | 1.61%(c) | 1.55%(c) | 0.90% | 6% | $1,892 |
| Year Ended 4/30/2021 | $10.65 | 4.67% | 1.62% | 1.55% | 0.93% | 15% | $2,541 |
| Year Ended 4/30/2020 | $10.27 | 0.68% | 1.60% | 1.56% | 1.26% | 7% | $3,070 |
| Year Ended 4/30/2019 | $10.33 | 3.58% | 1.62%(d) | 1.56%(d) | 1.57% | 23% | $4,096 |
| Year Ended 4/30/2018 | $10.13 | (0.38%) | 1.63% | 1.56% | 1.58% | 10% | $5,338 |
| Institutional Class |
| Year Ended 4/30/2022 | $9.71 | (6.98%) | 0.61%(c) | 0.55%(c) | 1.90% | 6% | $24,549 |
| Year Ended 4/30/2021 | $10.64 | 5.72% | 0.63% | 0.56% | 1.93% | 15% | $26,145 |
| Year Ended 4/30/2020 | $10.26 | 1.69% | 0.60% | 0.56% | 2.26% | 7% | $23,700 |
| Year Ended 4/30/2019 | $10.32 | 4.52% | 0.62%(d) | 0.56%(d) | 2.57% | 23% | $22,897 |
| Year Ended 4/30/2018 | $10.13 | 0.72% | 0.65% | 0.56% | 2.55% | 10% | $22,984 |
| Institutional 3 Class |
| Year Ended 4/30/2022 | $9.74 | (6.88%) | 0.53%(c) | 0.48%(c) | 1.98% | 6% | $115,305 |
| Year Ended 4/30/2021 | $10.67 | 5.79% | 0.55% | 0.48% | 2.00% | 15% | $145,734 |
| Year Ended 4/30/2020 | $10.29 | 1.67% | 0.52% | 0.48% | 2.34% | 7% | $141,450 |
| Year Ended 4/30/2019 | $10.36 | 4.70% | 0.53%(d) | 0.48%(d) | 2.65% | 23% | $120,551 |
| Year Ended 4/30/2018 | $10.16 | 0.83% | 0.54% | 0.48% | 2.68% | 10% | $117,741 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 21 |
Notes to Financial Statements
April 30, 2022
Note 1. Organization
Columbia North Carolina Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust (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 Delaware statutory trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. 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. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class and Institutional 3 Class shares are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
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
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
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.
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.
| 22 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
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.
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
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
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.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
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.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 23 |
Notes to Financial Statements (continued)
April 30, 2022
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 management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended April 30, 2022 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 3 Class shares are subject to an annual limitation of not more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
| 24 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
For the year ended April 30, 2022, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended April 30, 2022, no minimum account balance fees were charged by the Fund.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A shares of the Fund. Also under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class C shares of the Fund and a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended April 30, 2022, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 4,131 |
| Class C | — | 1.00(b) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 25 |
Notes to Financial Statements (continued)
April 30, 2022
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
August 31, 2022 |
| Class A | 0.81% |
| Advisor Class | 0.56 |
| Class C | 1.56 |
| Institutional Class | 0.56 |
| Institutional 3 Class | 0.48 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2022, these differences were primarily due to differing treatment for trustees’ deferred compensation, distributions, principal and/or interest of fixed income securities, capital loss carryforward and re-characterization of distributions for investments. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Undistributed net
investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| (3) | 3 | — |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
| 26 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
The tax character of distributions paid during the years indicated was as follows:
| Year Ended April 30, 2022 | Year Ended April 30, 2021 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 667 | 3,639,502 | — | 3,640,169 | 581 | 3,934,698 | — | 3,935,279 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At April 30, 2022, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 1,113,572 | — | (1,528,681) | (4,995,686) |
At April 30, 2022, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 164,254,038 | 955,156 | (5,950,842) | (4,995,686) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at April 30, 2022, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended April 30, 2022, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (528,605) | (1,000,076) | (1,528,681) | — |
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.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $11,738,799 and $25,428,649, respectively, for the year ended April 30, 2022. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 27 |
Notes to Financial Statements (continued)
April 30, 2022
The Fund’s activity in the Interfund Program during the year ended April 30, 2022 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Borrower | 500,000 | 0.85 | 1 |
Interest expense incurred by the Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at April 30, 2022.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended April 30, 2022.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity.
| 28 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022
Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
The pandemic caused by coronavirus disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such events could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support,
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 29 |
Notes to Financial Statements (continued)
April 30, 2022
such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At April 30, 2022, two unaffiliated shareholders of record owned 87.1% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of its activities as a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 30 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust and Shareholders of Columbia North Carolina Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia North Carolina Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust, referred to hereafter as the "Fund") as of April 30, 2022, the related statement of operations for the year ended April 30, 2022, the statement of changes in net assets for each of the two years in the period ended April 30, 2022, including the related notes, and the financial highlights for each of the five years in the period ended April 30, 2022 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended April 30, 2022 and the financial highlights for each of the five years in the period ended April 30, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022 by correspondence with the custodian and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
June 23, 2022
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 31 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended April 30, 2022. Shareholders will be notified in early 2023 of the amounts for use in preparing 2022 income tax returns.
Exempt-
interest
dividends | |
| 99.98% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 176 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 32 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney, specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 176 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 176 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee) since 2019; Director, Apollo Commercial Real Estate Finance, Inc. since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 174 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 174 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 33 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 174 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 176 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2020; former Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 176 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 176 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 174 | None |
| 34 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 174 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 176 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 176 | Director, Blue Cross Blue Shield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation since 1998 |
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 35 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2021; Advisor, Paradigm Asset Management, November 2016-December 2021; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 174 | Former Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2012-2019; Director, Chair of Audit Committee, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2019; Independent Director, Investment Committee and Valuation Committee, Sarona Asset Management, since 2019 |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 176 | Former Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as Directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC since April 2015; President and Principal Executive Officer of the Columbia Funds since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 176 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since January 2022 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 36 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and Head of Global Operations & Investor Services, Columbia Management Investment Advisers, LLC, since March 2022 (previously Vice President, Head of North American Operations, and Co-Head of Global Operations, June 2019 to February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001-January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds, 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022
| 37 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021, through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
| 38 | Columbia North Carolina Intermediate Municipal Bond Fund | Annual Report 2022 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia North Carolina Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Item 2. Code of Ethics.
(a)The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
(b)During the period covered by this report, there were not any amendments to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item.
(c)During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party that relates to one or more of the items set forth in paragraph (b) of this Item.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that David M. Moffett, Brian J. Gallagher, J. Kevin Connaughton, and Sandra L. Yeager, each of whom are members of the registrant's Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Mr. Moffett, Mr. Gallagher, Mr. Connaughton, and Ms. Yeager are each independent trustees, as defined in paragraph (a)(2) of this item's instructions.
Item 4. Principal Accountant Fees and Services.
Fee information below is disclosed for the five series of the registrant whose reports to stockholders are included in this annual filing. Fiscal Year 2021 also includes fees for two funds that liquidated during the period.
(a)Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended April 30, 2022 and April 30, 2021 are approximately as follows:
20222021
$157,500 $221,400
Audit Fees include amounts related to the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b)Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended April 30, 2022 and April 30, 2021 are approximately as follows:
Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported in Audit Fees above.
During the fiscal years ended April 30, 2022 and April 30, 2021, there were no Audit- Related Fees billed by the registrant's principal accountant to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(c)Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended April 30, 2022 and April 30,
2021 are approximately as follows:
Tax Fees, if any, include amounts for the review of annual tax returns, the review of required shareholder distribution calculations and typically include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.
During the fiscal years ended April 30, 2022 and April 30, 2021, there were no Tax Fees billed by the registrant's principal accountant to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(d)All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended April 30, 2022 and April 30, 2021 are approximately as follows:
All Other Fees, if any, include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
Aggregate All Other Fees billed by the registrant's principal accountant to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended April 30,
2022 and April 30, 2021 are approximately as follows:
20222021
$520,000 $520,000
In fiscal years 2022 and 2021, All Other Fees primarily consists of fees billed for internal control examinations of the registrant's transfer agent and investment adviser.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant's Audit Committee is required to pre-approve the engagement of the registrant's independent auditors to provide audit and non-audit services to the registrant and non-audit services to its investment adviser (excluding any sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser (the "Adviser") or any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (a "Control Affiliate") if the engagement relates directly to the operations and financial reporting of the registrant.
The Audit Committee has adopted a Policy for Engagement of Independent Auditors for Audit and Non-Audit Services (the "Policy"). The Policy sets forth the understanding of the Audit Committee regarding the engagement of the registrant's independent accountants to provide (i) audit and permissible audit-related, tax and other services to the registrant ("Fund Services"); (ii) non-audit services to the registrant's Adviser and any Control Affiliates, that relates directly to the operations and financial reporting of a Fund ("Fund-related Adviser Services"); and (iii) certain other audit and non-audit services to the registrant's Adviser and its Control Affiliates. A service will require specific pre-approval by the Audit Committee if it is to be provided by the Fund's independent auditor; provided, however, that pre-approval of non-audit services to the Fund, the Adviser or Control Affiliates may be waived if certain de minimis requirements set forth in the SEC's rules are met.
Under the Policy, the Audit Committee may delegate pre-approval authority to any pre- designated member or members who are independent board members. The member(s) to whom such authority is delegated must report, for informational purposes only, any pre- approval decisions to the Audit Committee at its next regular meeting. The Audit Committee's responsibilities with respect to the pre-approval of services performed by the independent auditor may not be delegated to management.
On an annual basis, at a regularly scheduled Audit Committee meeting, the Fund's Treasurer or other Fund officer shall submit to the Audit Committee a schedule of the types of Fund Services and Fund-related Adviser Services that are subject to specific pre- approval. This schedule will provide a description of each type of service that is subject to specific pre-approval, along with total projected fees for each service. The pre- approval will generally cover a one-year period. The Audit Committee will review and approve the types of services and the projected fees for the next one-year period and may add to, or subtract from, the list of pre-approved services from time to time, based on subsequent determinations. This specific approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent auditor will be permitted to perform and the projected fees for each service.
The Fund's Treasurer or other Fund officer shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services provided since the last such report was rendered, including a description of the services, by category, with forecasted fees for the annual reporting period, proposed changes requiring specific pre-approval and a description of services provided by the independent auditor, by category, with actual fees during the current reporting period.
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(e)(2) None, or 0%, of the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund or affiliated entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
(f)Not applicable.
(g)The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal years ended April 30, 2022 and April 30,
2021 are approximately as follows:
20222021
$520,000 $525,500
(h)The registrant's Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to
paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a)The registrant's "Schedule I – Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.
(b)Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 11. Controls and Procedures.
(a)The registrant's principal executive officer and principal financial officer, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b)There was no change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected,
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized. | | |
(registrant) | | Columbia Funds Series Trust | |
By (Signature and Title) | /s/ Daniel J. Beckman | |
| | | Daniel J. Beckman, President and Principal Executive Officer | |
Date | | June 23, 2022 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Daniel J. Beckman |
| | Daniel J. Beckman, President and Principal Executive Officer |
Date | | June 23, 2022 | |
By (Signature and Title) | /s/ Michael G. Clarke |
| | Michael G. Clarke, Chief Financial Officer, Principal Financial Officer |
| | and Senior Vice President |
Date | | June 23, 2022 | |
By (Signature and Title) | /s/ Joseph Beranek |
| | Joseph Beranek, Treasurer, Chief Accounting Officer and Principal |
| | Financial Officer |
Date | | June 23, 2022 | |
