UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22328
Columbia Seligman Premium Technology Growth Fund, Inc.
(Exact name of registrant as specified in charter)
225 Franklin Street, Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Christopher O. Petersen
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, Massachusetts 02110
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: December 31
Date of reporting period: June 30, 2020
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.
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June 30, 2020
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3 | |
5 | |
6 | |
10 | |
11 | |
12 | |
13 | |
14 | |
28 | |
28 | |
30 |
(Unaudited)
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Average annual total returns (%) (for the period ended June 30, 2020) | ||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | ||
Market Price | 11/24/09 | -2.53 | 17.09 | 15.32 | 13.80 | |
Net Asset Value | 11/30/09 | -6.49 | 14.39 | 14.55 | 13.94 | |
S&P North American Technology Sector Index | 15.39 | 30.70 | 23.28 | 20.56 |
Price Per Share | ||||
June 30, 2020 | March 31, 2020 | December 31, 2019 | ||
Market Price ($) | 21.99 | 17.69 | 23.55 | |
Net Asset Value ($) | 20.99 | 17.77 | 23.43 |
Distributions Paid Per Common Share | |
Payable Date | Per Share Amount ($) |
February 25, 2020 | 0.4625 |
May 26, 2020 | 0.4625 |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 3 |
(Unaudited)
Portfolio breakdown (%) (at June 30, 2020) | |
Common Stocks | 99.3 |
Money Market Funds | 0.7 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2020) | |
Communication Services | 11.3 |
Consumer Discretionary | 0.8 |
Industrials | 1.4 |
Information Technology | 86.2 |
Real Estate | 0.3 |
Total | 100.0 |
Equity sub-industry breakdown (%) (at June 30, 2020) | |
Information Technology | |
Application Software | 10.8 |
Communications Equipment | 2.3 |
Data Processing & Outsourced Services | 7.6 |
Internet Services & Infrastructure | 1.3 |
IT Consulting & Other Services | 0.3 |
Semiconductor Equipment | 17.3 |
Semiconductors | 22.3 |
Systems Software | 12.3 |
Technology Hardware, Storage & Peripherals | 12.0 |
Total | 86.2 |
4 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
(Unaudited)
When the VXN Index (a) is: | Aggregate Notional Amount of Written Call Options as a Percentage of the Fund’s Holdings in Common Stocks |
17 or less | 25% |
Greater than 17, but less than 18 | Increase up to 50% |
At least 18, but less than 33 | 50% |
At least 33, but less than 34 | Increase up to 90% |
At least 34, but less than 55 | 90% |
At 55 or greater | 0% to 90% |
(a) | The VXN Index is a leading barometer of investor sentiment and market volatility relating to the NASDAQ 100 Index. |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 5 |
June 30, 2020 (Unaudited)
Common Stocks 99.3% | ||
Issuer | Shares | Value ($) |
Communication Services 11.2% | ||
Broadcasting 1.7% | ||
Discovery, Inc., Class A(a) | 186,500 | 3,935,150 |
Fox Corp., Class A | 69,400 | 1,861,308 |
Total Broadcasting | 5,796,458 | |
Integrated Telecommunication Services 0.6% | ||
AT&T, Inc. | 52,600 | 1,590,098 |
Ooma, Inc.(a) | 28,080 | 462,759 |
Total Integrated Telecommunication Services | 2,052,857 | |
Interactive Home Entertainment 2.0% | ||
Activision Blizzard, Inc. | 75,908 | 5,761,417 |
Sciplay Corp., Class A(a) | 55,856 | 828,345 |
Total Interactive Home Entertainment | 6,589,762 | |
Interactive Media & Services 6.5% | ||
Alphabet, Inc., Class A(a) | 8,741 | 12,395,175 |
Alphabet, Inc., Class C(a) | 6,502 | 9,191,292 |
Total Interactive Media & Services | 21,586,467 | |
Wireless Telecommunication Services 0.4% | ||
Vodafone Group PLC, ADR | 86,900 | 1,385,186 |
Total Wireless Telecommunication Services | 1,385,186 | |
Total Communication Services | 37,410,730 | |
Consumer Discretionary 0.8% | ||
Internet & Direct Marketing Retail 0.8% | ||
eBay, Inc. | 49,854 | 2,614,842 |
Total Internet & Direct Marketing Retail | 2,614,842 | |
Total Consumer Discretionary | 2,614,842 | |
Industrials 1.4% | ||
Electrical Components & Equipment 0.3% | ||
Sensata Technologies Holding(a) | 31,300 | 1,165,299 |
Total Electrical Components & Equipment | 1,165,299 | |
Heavy Electrical Equipment 0.9% | ||
Bloom Energy Corp., Class A(a) | 267,200 | 2,907,136 |
Total Heavy Electrical Equipment | 2,907,136 | |
Research & Consulting Services 0.2% | ||
Nielsen Holdings PLC | 43,900 | 652,354 |
Total Research & Consulting Services | 652,354 | |
Total Industrials | 4,724,789 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Information Technology 85.6% | ||
Application Software 10.7% | ||
Bill.com Holdings, Inc.(a) | 12,041 | 1,086,219 |
Cerence, Inc.(a) | 108,408 | 4,427,383 |
Cornerstone OnDemand, Inc.(a) | 29,221 | 1,126,762 |
Dropbox, Inc., Class A(a) | 300,035 | 6,531,762 |
Salesforce.com, Inc.(a) | 27,900 | 5,226,507 |
Splunk, Inc.(a) | 9,258 | 1,839,564 |
Synopsys, Inc.(a) | 72,771 | 14,190,345 |
Verint Systems, Inc.(a) | 31,874 | 1,440,067 |
Total Application Software | 35,868,609 | |
Communications Equipment 2.3% | ||
Cisco Systems, Inc. | 34,300 | 1,599,752 |
CommScope Holding Co., Inc.(a) | 103,600 | 862,988 |
F5 Networks, Inc.(a) | 16,600 | 2,315,368 |
Plantronics, Inc. | 106,700 | 1,566,356 |
Telefonaktiebolaget LM Ericsson, ADR | 134,900 | 1,254,570 |
Total Communications Equipment | 7,599,034 | |
Data Processing & Outsourced Services 7.5% | ||
Euronet Worldwide, Inc.(a) | 7,125 | 682,718 |
Fidelity National Information Services, Inc. | 34,300 | 4,599,287 |
Fiserv, Inc.(a) | 31,900 | 3,114,078 |
Genpact Ltd. | 35,570 | 1,299,016 |
Global Payments, Inc. | 11,757 | 1,994,222 |
Pagseguro Digital Ltd., Class A(a) | 71,158 | 2,514,724 |
Visa, Inc., Class A | 56,400 | 10,894,788 |
Total Data Processing & Outsourced Services | 25,098,833 | |
Internet Services & Infrastructure 1.3% | ||
GoDaddy, Inc., Class A(a) | 58,335 | 4,277,706 |
Total Internet Services & Infrastructure | 4,277,706 | |
IT Consulting & Other Services 0.3% | ||
DXC Technology Co. | 52,100 | 859,650 |
Total IT Consulting & Other Services | 859,650 |
6 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Semiconductor Equipment 17.1% | ||
Advanced Energy Industries, Inc.(a) | 57,650 | 3,908,094 |
Applied Materials, Inc. | 171,700 | 10,379,265 |
Lam Research Corp. | 83,005 | 26,848,797 |
Teradyne, Inc. | 189,906 | 16,048,956 |
Total Semiconductor Equipment | 57,185,112 | |
Semiconductors 22.2% | ||
Broadcom, Inc. | 54,500 | 17,200,745 |
Infineon Technologies AG | 214,600 | 5,028,546 |
Inphi Corp.(a) | 13,843 | 1,626,552 |
Intel Corp. | 54,100 | 3,236,803 |
Marvell Technology Group Ltd.(b) | 274,499 | 9,623,935 |
Micron Technology, Inc.(a) | 204,604 | 10,541,198 |
NXP Semiconductors NV | 53,800 | 6,135,352 |
ON Semiconductor Corp.(a) | 418,818 | 8,300,973 |
Rambus, Inc.(a) | 43,700 | 664,240 |
Renesas Electronics Corp.(a) | 899,900 | 4,625,850 |
SMART Global Holdings, Inc.(a) | 36,019 | 978,996 |
Synaptics, Inc.(a) | 100,181 | 6,022,882 |
Total Semiconductors | 73,986,072 | |
Systems Software 12.2% | ||
Fortinet, Inc.(a) | 55,196 | 7,576,755 |
Microsoft Corp. | 67,900 | 13,818,329 |
NortonLifeLock, Inc. | 167,823 | 3,327,930 |
Oracle Corp. | 84,400 | 4,664,788 |
Palo Alto Networks, Inc.(a) | 22,700 | 5,213,509 |
SailPoint Technologies Holdings, Inc.(a) | 57,519 | 1,522,528 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Xperi Holding Corp. | 308,288 | 4,550,331 |
Total Systems Software | 40,674,170 | |
Technology Hardware, Storage & Peripherals 12.0% | ||
Apple, Inc.(b) | 56,500 | 20,611,200 |
Dell Technologies, Inc.(a) | 43,500 | 2,389,890 |
HP, Inc. | 129,107 | 2,250,335 |
NetApp, Inc. | 149,400 | 6,628,878 |
Western Digital Corp.(b) | 181,149 | 7,997,728 |
Total Technology Hardware, Storage & Peripherals | 39,878,031 | |
Total Information Technology | 285,427,217 | |
Real Estate 0.3% | ||
Specialized REITs 0.3% | ||
American Tower Corp. | 3,700 | 956,598 |
Total Specialized REITs | 956,598 | |
Total Real Estate | 956,598 | |
Total Common Stocks (Cost: $194,396,662) | 331,134,176 | |
Money Market Funds 0.7% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 0.253%(c),(d) | 2,407,560 | 2,407,560 |
Total Money Market Funds (Cost: $2,407,558) | 2,407,560 | |
Total Investments in Securities (Cost $196,804,220) | 333,541,736 | |
Other Assets & Liabilities, Net | 17,275 | |
Net Assets | $333,559,011 |
Call option contracts written | ||||||||
Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
Apple, Inc. | JPMorgan | USD | (1,969,920) | (54) | 350.00 | 1/15/2021 | (72,715) | (229,500) |
Marvell Technology Group Ltd. | Morgan Stanley | USD | (1,644,314) | (469) | 35.00 | 1/15/2021 | (47,819) | (215,740) |
Western Digital Corp. | Morgan Stanley | USD | (1,770,415) | (401) | 90.00 | 1/15/2021 | (148,912) | (11,830) |
Total | (269,446) | (457,070) |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 7 |
June 30, 2020 (Unaudited)
Put option contracts written | ||||||||
Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
Marvell Technology Group Ltd. | Morgan Stanley | USD | (3,046,714) | (869) | 17.00 | 01/15/2021 | (119,017) | (27,373) |
Western Digital Corp. | Morgan Stanley | USD | (1,774,830) | (402) | 40.00 | 01/15/2021 | (127,417) | (201,000) |
Total | (246,434) | (228,373) |
(a) | Non-income producing investment. |
(b) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2020. |
(d) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2020 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 0.253% | ||||||||
4,613,138 | 56,137,794 | (58,343,374) | 2 | 2,407,560 | 3,394 | 25,455 | 2,407,560 |
ADR | American Depositary Receipt |
USD | US Dollar |
■ | 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). |
8 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Under the direction of the Fund’s Board of Directors (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.
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Communication Services | 37,410,730 | — | — | 37,410,730 |
Consumer Discretionary | 2,614,842 | — | — | 2,614,842 |
Industrials | 4,724,789 | — | — | 4,724,789 |
Information Technology | 275,772,821 | 9,654,396 | — | 285,427,217 |
Real Estate | 956,598 | — | — | 956,598 |
Total Common Stocks | 321,479,780 | 9,654,396 | — | 331,134,176 |
Money Market Funds | 2,407,560 | — | — | 2,407,560 |
Total Investments in Securities | 323,887,340 | 9,654,396 | — | 333,541,736 |
Investments in Derivatives | ||||
Liability | ||||
Options Contracts Written | (685,443) | — | — | (685,443) |
Total | 323,201,897 | 9,654,396 | — | 332,856,293 |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 9 |
June 30, 2020 (Unaudited)
Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $194,396,662) | $331,134,176 |
Affiliated issuers (cost $2,407,558) | 2,407,560 |
Cash collateral held at broker for: | |
Options contracts written | 750,000 |
Receivable for: | |
Investments sold | 75,579 |
Dividends | 181,300 |
Foreign tax reclaims | 7,405 |
Other assets | 33,135 |
Total assets | 334,589,155 |
Liabilities | |
Option contracts written, at value (premiums received $515,880) | 685,443 |
Payable for: | |
Investments purchased | 196,966 |
Management services fees | 9,434 |
Stockholder servicing and transfer agent fees | 2,004 |
Compensation of board members | 105,497 |
Compensation of chief compliance officer | 37 |
Other expenses | 30,763 |
Total liabilities | 1,030,144 |
Net assets applicable to outstanding Common Stock | $333,559,011 |
Represented by | |
Paid in capital | 217,783,324 |
Total distributable earnings (loss) | 115,775,687 |
Total - representing net assets applicable to outstanding Common Stock | $333,559,011 |
Shares outstanding applicable to Common Stock | 15,891,812 |
Net asset value per share of outstanding Common Stock | $20.99 |
Market price per share of Common Stock | $21.99 |
10 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
Six Months Ended June 30, 2020 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $4,192,322 |
Dividends — affiliated issuers | 25,455 |
Foreign taxes withheld | (17,228) |
Total income | 4,200,549 |
Expenses: | |
Management services fees | 1,725,729 |
Stockholder servicing and transfer agent fees | 9,117 |
Compensation of board members | 10,472 |
Custodian fees | 7,049 |
Printing and postage fees | 14,798 |
Stockholders’ meeting fees | 16,245 |
Audit fees | 19,670 |
Legal fees | 5,281 |
Compensation of chief compliance officer | 42 |
Other | 49,144 |
Total expenses | 1,857,547 |
Net investment income | 2,343,002 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 22,859,054 |
Investments — affiliated issuers | 3,394 |
Foreign currency translations | (653) |
Options contracts written | (37,518,649) |
Net realized loss | (14,656,854) |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (11,428,614) |
Investments — affiliated issuers | 2 |
Foreign currency translations | 238 |
Options contracts written | (344,437) |
Net change in unrealized appreciation (depreciation) | (11,772,811) |
Net realized and unrealized loss | (26,429,665) |
Net decrease in net assets resulting from operations | $(24,086,663) |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 11 |
Six Months Ended June 30, 2020 (Unaudited) | Year Ended December 31, 2019 | |
Operations | ||
Net investment income (loss) | $2,343,002 | $(258,437) |
Net realized gain (loss) | (14,656,854) | 28,092,818 |
Net change in unrealized appreciation (depreciation) | (11,772,811) | 104,060,788 |
Net increase (decrease) in net assets resulting from operations | (24,086,663) | 131,895,169 |
Distributions to stockholders | ||
Net investment income and net realized gains | (14,690,889) | (29,351,348) |
Total distributions to stockholders | (14,690,889) | (29,351,348) |
Increase in net assets from capital stock activity | 273,770 | 4,204,361 |
Total increase (decrease) in net assets | (38,503,782) | 106,748,182 |
Net assets at beginning of period | 372,062,793 | 265,314,611 |
Net assets at end of period | $333,559,011 | $372,062,793 |
Six Months Ended | Year Ended | |||
June 30, 2020 | December 31, 2019 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Common Stock issued at market price in distributions | 15,430 | 328,128 | 257,740 | 4,618,719 |
Common Stock purchased in the open market | (2,629) | (54,358) | (20,562) | (414,358) |
Total net increase | 12,801 | 273,770 | 237,178 | 4,204,361 |
12 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
Six Months Ended June 30, 2020 (Unaudited) | Year ended December 31, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | ||
Per share data | ||||||
Net asset value, beginning of period | $23.43 | $16.96 | $20.83 | $17.78 | $17.29 | $17.69 |
Income from investment operations: | ||||||
Net investment income (loss) | 0.15 | (0.02) | (0.01) | (0.06) | (0.05) | (0.04) |
Net realized and unrealized gain (loss) | (1.66) | 8.34 | (1.36) | 5.74 | 2.39 | 1.49 |
Total from investment operations | (1.51) | 8.32 | (1.37) | 5.68 | 2.34 | 1.45 |
Less distributions to Stockholders from: | ||||||
Net investment income | (0.51) | — | — | — | — | — |
Net realized gains | (0.42) | (1.85) | (2.50) | (2.63) | (1.85) | (1.85) |
Total distributions to Stockholders | (0.93) | (1.85) | (2.50) | (2.63) | (1.85) | (1.85) |
Net asset value, end of period | $20.99 | $23.43 | $16.96 | $20.83 | $17.78 | $17.29 |
Market price, end of period | $21.99 | $23.55 | $16.81 | $22.25 | $18.74 | $17.93 |
Total return | ||||||
Based upon net asset value | (6.49%) | 51.04% | (7.77%) | 32.72% | 15.29% | 8.40% |
Based upon market price | (2.53%) | 53.17% | (14.42%) | 34.51% | 17.18% | 5.05% |
Ratios to average net assets | ||||||
Total gross expenses(a) | 1.14%(b) | 1.15% | 1.15% | 1.16% | 1.17% | 1.17% |
Net investment income (loss) | 1.44%(b) | (0.08%) | (0.05%) | (0.28%) | (0.33%) | (0.24%) |
Supplemental data | ||||||
Net assets, end of period (in thousands) | $333,559 | $372,063 | $265,315 | $320,472 | $273,226 | $265,426 |
Portfolio turnover | 14% | 43% | 34% | 47% | 61% | 61% |
Notes to Financial Highlights | |
(a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(b) | Annualized. |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 13 |
June 30, 2020 (Unaudited)
14 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 15 |
June 30, 2020 (Unaudited)
16 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Liability derivatives | ||
Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
Equity risk | Options contracts written, at value | 685,443 |
Amount of realized gain (loss) on derivatives recognized in income | |
Risk exposure category | Options contracts written ($) |
Equity risk | (37,518,649) |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
Risk exposure category | Options contracts written ($) |
Equity risk | (344,437) |
Derivative instrument | Average value ($)* |
Options contracts — written | (5,990,825) |
* | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2020. |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 17 |
June 30, 2020 (Unaudited)
JPMorgan ($) | Morgan Stanley ($) | Total ($) | |
Liabilities | |||
Options contracts written | 229,500 | 455,943 | 685,443 |
Total financial and derivative net assets | (229,500) | (455,943) | (685,443) |
Total collateral received (pledged) (a) | - | (455,943) | (455,943) |
Net amount (b) | (229,500) | - | (229,500) |
(a) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
(b) | Represents the net amount due from/(to) counterparties in the event of default. |
18 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 19 |
June 30, 2020 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
196,288,000 | 151,731,000 | (15,163,000) | 136,568,000 |
20 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 21 |
June 30, 2020 (Unaudited)
22 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 23 |
June 30, 2020 (Unaudited)
24 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 25 |
June 30, 2020 (Unaudited)
26 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
June 30, 2020 (Unaudited)
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 27 |
• | 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. |
28 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
Nature, extent and quality of services provided by Columbia Threadneedle
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 29 |
The Board considered the reports of its independent fee consultant, JDL Consultants, LLC (JDL), which assisted in the Board’s analysis of the Funds’ performance and expenses, the reasonableness of the Funds’ fee rates, and JDL’s conclusion that the management fees being charged to the Fund are reasonable. The Board accorded particular weight to the notion that the primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain defined exceptions) are generally in line with the "pricing philosophy" currently in effect (i.e., that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe). With respect to the Fund, a closed-end Fund, the Board observed that although the Fund’s expense ratio was higher than the comparative closed-end fund peer group’s median expense ratio, the Fund is the only technology-focused fund in the universe. The Board further observed that, unlike many technology-focused open-end funds, the Fund employs a unique options-writing strategy designed to cushion its downside performance. Based on its review, the Board concluded that the Fund’s management fee was fair and reasonable in light of the extent and quality of services that the Fund receives.
Director | For | Against |
Brian J. Gallagher | 13,438,157 | 289,080 |
Patricia M. Flynn | 13,426,112 | 301,125 |
Catherine James Paglia | 13,419,344 | 307,893 |
30 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 |
Proposal 2
For | Against | Abstain |
13,588,849 | 90,777 | 147,651 |
Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2020 | 31 |
![](https://capedge.com/proxy/N-CSRS/0001683863-20-013036/img9d58d5532.jpg)
Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semiannual reports.
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 for semiannual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semiannual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
The Fund has a share repurchase plan approved by the Fund's Board of Directors, which authorizes repurchases of the Fund's common stock in the open market at times when shares are trading at a discount from NAV and in an amount approximately sufficient to offset the growth in the number of common shares attributable to the reinvestment of the portion of its distributions to common stockholders attributable to distributions received from portfolio investments less Fund expenses. For the six months ended June 30, 2020, the Fund purchased 2,629 shares of its Common Stock in the open market at a cost of $54,358 which represented a weighted average discount of 1.94% from the NAV of those acquired shares.
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 officers, 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, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable for semiannual reports.
(a)(3) Not applicable.
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 Seligman Premium Technology Growth Fund, Inc | |
By (Signature and Title) | /s/ Christopher O. Petersen | ||
|
|
| Christopher O. Petersen, President and Principal Executive Officer |
Date |
| August 21, 2020 |
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/ Christopher O. Petersen | ||
|
| Christopher O. Petersen, President and Principal Executive Officer | |
Date |
| August 21, 2020 |
|
By (Signature and Title) | /s/ Michael G. Clarke | ||
|
| Michael G. Clarke, Chief Financial Officer, Principal Financial Officer | |
|
| and Senior Vice President | |
Date |
| August 21, 2020 |
|
By (Signature and Title) | /s/ Joseph Beranek | ||
|
| Joseph Beranek, Treasurer, Chief Accounting Officer and Principal | |
|
| Financial Officer | |
Date |
| August 21, 2020 |
|