UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-22328
Columbia Seligman Premium Technology Growth Fund, Inc.
(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: December 31
Date of reporting period: June 30, 2021
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.
![](https://capedge.com/proxy/N-CSRS/0001683863-21-004772/imgee7df21e1.jpg)
June 30, 2021
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3 | |
5 | |
13 | |
15 | |
19 | |
20 | |
21 | |
22 | |
23 | |
38 | |
41 |
(Unaudited)
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Average annual total returns (%) (for the period ended June 30, 2021) | ||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | ||
Market Price | 11/24/09 | 34.30 | 73.13 | 28.82 | 18.48 | |
Net Asset Value | 11/30/09 | 24.77 | 72.34 | 28.07 | 17.60 | |
S&P North American Technology Sector Index | 16.12 | 46.07 | 31.03 | 22.02 |
Price Per Share | ||||
June 30, 2021 | March 31, 2021 | December 31, 2020 | ||
Market Price ($) | 35.51 | 31.24 | 27.24 | |
Net Asset Value ($) | 33.74 | 31.12 | 27.86 |
Distributions Paid Per Common Share | |
Payable Date | Per Share Amount ($) |
February 23, 2021 | 0.4625 |
May 25, 2021 | 0.4625 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 3 |
(Unaudited)
Portfolio breakdown (%) (at June 30, 2021) | |
Common Stocks | 98.5 |
Money Market Funds | 1.5 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2021) | |
Communication Services | 10.1 |
Consumer Discretionary | 2.7 |
Health Care | 0.2 |
Industrials | 2.3 |
Information Technology | 84.7 |
Total | 100.0 |
Equity sub-industry breakdown (%) (at June 30, 2021) | |
Information Technology | |
Application Software | 9.4 |
Communications Equipment | 5.5 |
Data Processing & Outsourced Services | 5.1 |
Electronic Equipment & Instruments | 1.6 |
Internet Services & Infrastructure | 1.6 |
IT Consulting & Other Services | 0.4 |
Semiconductor Equipment | 16.1 |
Semiconductors | 20.1 |
Systems Software | 12.5 |
Technology Hardware, Storage & Peripherals | 12.4 |
Total | 84.7 |
4 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
When the VXN Index 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% |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 5 |
• | Purchase or sell commodities or commodity contracts, except to the extent permissible under applicable law and interpretations, as they may be amended from time to time, and except this shall not prevent the Fund from buying or selling options, futures contracts and foreign currency or from entering into forward currency contracts or from investing in securities or other instruments backed by, or whose value is derived from, physical commodities; |
• | Issue senior securities or borrow money, except as permitted by the Investment Company Act or any rule thereunder, any SEC or SEC staff interpretations thereof or any exemptions therefrom which may be granted by the SEC; |
• | Make loans, except as permitted by the Investment Company Act or any rule thereunder, any SEC or SEC staff interpretations thereof or any exemptions therefrom which may be granted by the SEC; |
• | Underwrite the securities of other issuers, except insofar as the Fund may be deemed an underwriter under the Securities Act of 1933 in disposing of a portfolio security or in connection with investments in other investment companies; |
• | Buy or sell real estate, unless acquired as a result of ownership of securities or other instruments, except this shall not prevent the Fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business or real estate investment trusts; and |
• | Invest 25% or more of its Managed Assets (as defined below), at market value, in the securities of issuers in any particular industry, except that the Fund will invest at least 25% of the value of its Managed Assets in technology and technology-related stocks (in which the Fund intends to concentrate) and may invest without limit in securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, or government-sponsored enterprises. |
6 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 7 |
8 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 9 |
10 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 11 |
12 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
(Unaudited)
Stockholder Transaction Expenses | |
Dividend investment plan | None(a) |
Annual Expenses (as a percentage of net asset attributable to common shares) | |
Management fees(b) | 1.06% |
Other expenses | 0.09% |
Acquired fund fees and expenses | 0.00% |
Total Annual Expenses(c) | 1.15% |
(a) | There are no service or brokerage charges to participants in the dividend investment plan; however, the Fund reserves the right to amend the plan to include a service charge payable to the Fund by the participants. The Fund reserves the right to amend the plan to provide for payment of brokerage fees by the plan participants in the event the plan is changed to provide for open market purchases of Fund Common Stock on behalf of plan participants. |
(b) | The Fund’s management service fee is 1.06% of the Fund’s average daily Managed Assets (which means the net asset value of Fund’s outstanding common stock plus the liquidation preference of any issued and outstanding preferred stock of the Fund and the principal amount of any borrowing used for leverage). The management service fee rate noted in the table reflects the rate paid by Common Stockholders as a percentage of the Fund’s net assets attributable to Common Stock. |
(c) | “Total Annual Expenses" include acquired fund fees and expenses (expenses the Fund incurs indirectly through its investments in other investment companies) and may be higher than “Total gross expenses” shown in the Financial Highlights section of this report because “Total gross expenses” does not include acquired fund fees and expenses. |
• | you invest $1,000 in the Fund for the periods indicated, |
• | your investment has a 5% return each year, and |
• | the Fund’s total annual operating expenses remain the same as shown in the Annual Fund Operating Expenses table above (including the impact of dividends on preferred stock). |
1 year | 3 years | 5 years | 10 years | |
Columbia Seligman Premium Technology Growth Fund, Inc. Common Stock | $117 | $365 | $633 | $1,398 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 13 |
(Unaudited)
Market Price ($) | Corresponding NAV ($) | Corresponding (Discount)/Premium to NAV (%) | ||||
High | Low | High | Low | High | Low | |
2019 | ||||||
1st Quarter | 20.54 | 16.70 | 19.98 | 16.43 | 2.80 | 1.64 |
2nd Quarter | 22.20 | 19.34 | 21.49 | 18.42 | 3.30 | 4.99 |
3rd Quarter | 22.14 | 19.85 | 21.29 | 19.68 | 3.99 | 0.86 |
4th Quarter | 23.87 | 20.79 | 23.47 | 20.25 | 1.70 | 2.67 |
2020 | ||||||
1st Quarter | 25.25 | 14.44 | 24.69 | 15.42 | 2.27 | (6.36) |
2nd Quarter | 23.37 | 16.18 | 21.01 | 17.28 | 11.23 | (6.37) |
3rd Quarter | 23.33 | 21.09 | 22.31 | 21.35 | 4.57 | (1.22) |
4th Quarter | 27.63 | 21.33 | 27.41 | 21.91 | 0.80 | (2.65) |
2021 | ||||||
1st Quarter | 31.45 | 26.67 | 31.75 | 28.10 | (0.94) | (5.09) |
2nd Quarter | 35.94 | 31.05 | 33.83 | 29.82 | 6.24 | 4.12 |
14 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Common Stocks 99.3% | ||
Issuer | Shares | Value ($) |
Communication Services 10.0% | ||
Broadcasting 1.6% | ||
Discovery, Inc., Class C(a) | 72,100 | 2,089,458 |
Fox Corp., Class A | 172,700 | 6,412,351 |
Total Broadcasting | 8,501,809 | |
Cable & Satellite 0.5% | ||
Comcast Corp., Class A | 44,600 | 2,543,092 |
Total Cable & Satellite | 2,543,092 | |
Interactive Home Entertainment 1.3% | ||
Activision Blizzard, Inc. | 59,508 | 5,679,443 |
Sciplay Corp., Class A(a) | 78,806 | 1,335,762 |
Total Interactive Home Entertainment | 7,015,205 | |
Interactive Media & Services 6.5% | ||
Alphabet, Inc., Class A(a),(b) | 7,541 | 18,413,539 |
Alphabet, Inc., Class C(a) | 6,629 | 16,614,395 |
Total Interactive Media & Services | 35,027,934 | |
Wireless Telecommunication Services 0.1% | ||
T-Mobile USA, Inc.(a) | 6,200 | 897,946 |
Total Wireless Telecommunication Services | 897,946 | |
Total Communication Services | 53,985,986 | |
Consumer Discretionary 2.7% | ||
Internet & Direct Marketing Retail 2.7% | ||
eBay, Inc. | 205,229 | 14,409,128 |
Total Internet & Direct Marketing Retail | 14,409,128 | |
Total Consumer Discretionary | 14,409,128 | |
Health Care 0.2% | ||
Biotechnology 0.1% | ||
Eiger BioPharmaceuticals, Inc.(a) | 77,084 | 656,755 |
Total Biotechnology | 656,755 | |
Health Care Technology 0.1% | ||
Doximity, Inc., Class A(a) | 7,164 | 416,945 |
Total Health Care Technology | 416,945 | |
Total Health Care | 1,073,700 | |
Industrials 2.3% | ||
Heavy Electrical Equipment 2.2% | ||
Bloom Energy Corp., Class A(a) | 430,301 | 11,562,188 |
Total Heavy Electrical Equipment | 11,562,188 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Research & Consulting Services 0.1% | ||
First Advantage Corp.(a) | 39,112 | 778,720 |
Total Research & Consulting Services | 778,720 | |
Total Industrials | 12,340,908 | |
Information Technology 84.1% | ||
Application Software 9.3% | ||
Cerence, Inc.(a) | 74,892 | 7,991,725 |
Cognyte Software Ltd.(a) | 31,424 | 769,888 |
Confluent, Inc., Class A(a) | 3,194 | 151,715 |
Cornerstone OnDemand, Inc.(a) | 47,721 | 2,461,449 |
Dropbox, Inc., Class A(a) | 409,235 | 12,403,913 |
Intapp, Inc.(a) | 46,003 | 1,288,084 |
Salesforce.com, Inc.(a) | 20,300 | 4,958,681 |
Synopsys, Inc.(a),(b) | 62,752 | 17,306,374 |
Verint Systems, Inc.(a) | 32,924 | 1,483,885 |
Zendesk, Inc.(a) | 9,800 | 1,414,532 |
Total Application Software | 50,230,246 | |
Communications Equipment 5.5% | ||
Arista Networks, Inc.(a) | 13,133 | 4,758,217 |
Cisco Systems, Inc. | 36,700 | 1,945,100 |
F5 Networks, Inc.(a) | 34,700 | 6,477,102 |
Lumentum Holdings, Inc.(a) | 59,900 | 4,913,597 |
Plantronics, Inc.(a) | 187,023 | 7,804,470 |
Telefonaktiebolaget LM Ericsson, ADR | 273,400 | 3,439,372 |
Total Communications Equipment | 29,337,858 | |
Data Processing & Outsourced Services 5.0% | ||
Fidelity National Information Services, Inc. | 33,600 | 4,760,112 |
Fiserv, Inc.(a) | 42,276 | 4,518,882 |
Marqeta, Inc., Class A(a) | 41,287 | 1,158,926 |
Pagseguro Digital Ltd., Class A(a) | 64,141 | 3,586,765 |
TaskUS, Inc., Class A(a) | 10,789 | 369,415 |
Visa, Inc., Class A | 54,125 | 12,655,507 |
Total Data Processing & Outsourced Services | 27,049,607 | |
Electronic Equipment & Instruments 1.6% | ||
Advanced Energy Industries, Inc. | 74,727 | 8,422,480 |
Total Electronic Equipment & Instruments | 8,422,480 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 15 |
June 30, 2021 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Internet Services & Infrastructure 1.6% | ||
GoDaddy, Inc., Class A(a) | 91,585 | 7,964,232 |
Legalzoom.com, Inc.(a) | 9,803 | 371,043 |
Total Internet Services & Infrastructure | 8,335,275 | |
IT Consulting & Other Services 0.4% | ||
DXC Technology Co.(a) | 53,000 | 2,063,820 |
Total IT Consulting & Other Services | 2,063,820 | |
Semiconductor Equipment 16.0% | ||
Applied Materials, Inc.(b) | 148,586 | 21,158,646 |
Lam Research Corp. | 62,472 | 40,650,531 |
Teradyne, Inc. | 182,007 | 24,381,658 |
Total Semiconductor Equipment | 86,190,835 | |
Semiconductors 20.0% | ||
Analog Devices, Inc. | 36,141 | 6,222,034 |
Broadcom, Inc.(b) | 43,125 | 20,563,725 |
Intel Corp. | 65,016 | 3,649,998 |
Marvell Technology, Inc. | 277,755 | 16,201,449 |
Maxim Integrated Products, Inc. | 63,100 | 6,648,216 |
Micron Technology, Inc.(a) | 141,860 | 12,055,263 |
NXP Semiconductors NV | 36,900 | 7,591,068 |
Qorvo, Inc.(a) | 19,175 | 3,751,589 |
Rambus, Inc.(a) | 98,000 | 2,323,580 |
Renesas Electronics Corp.(a) | 439,100 | 4,738,926 |
SMART Global Holdings, Inc.(a) | 62,445 | 2,977,378 |
Synaptics, Inc.(a),(b) | 131,605 | 20,475,106 |
Total Semiconductors | 107,198,332 | |
Systems Software 12.4% | ||
Fortinet, Inc.(a) | 40,069 | 9,544,035 |
McAfee Corp., Class A | 139,294 | 3,903,018 |
Microsoft Corp. | 69,100 | 18,719,190 |
NortonLifeLock, Inc. | 330,948 | 9,008,405 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Oracle Corp. | 73,600 | 5,729,024 |
Palo Alto Networks, Inc.(a) | 22,861 | 8,482,574 |
SailPoint Technologies Holdings, Inc.(a) | 32,219 | 1,645,424 |
SentinelOne, Inc., Class A(a) | 34,998 | 1,487,415 |
Tenable Holdings, Inc.(a) | 15,300 | 632,655 |
Xperi Holding Corp. | 340,888 | 7,581,349 |
Total Systems Software | 66,733,089 | |
Technology Hardware, Storage & Peripherals 12.3% | ||
Apple, Inc. | 189,800 | 25,995,008 |
Dell Technologies, Inc.(a) | 79,079 | 7,881,804 |
HP, Inc. | 252,257 | 7,615,639 |
NetApp, Inc. | 149,000 | 12,191,180 |
Western Digital Corp.(a) | 176,749 | 12,579,226 |
Total Technology Hardware, Storage & Peripherals | 66,262,857 | |
Total Information Technology | 451,824,399 | |
Total Common Stocks (Cost: $235,088,372) | 533,634,121 | |
Money Market Funds 1.5% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 0.051%(c),(d) | 8,002,985 | 8,002,185 |
Total Money Market Funds (Cost: $8,002,185) | 8,002,185 | |
Total Investments in Securities (Cost $243,090,557) | 541,636,306 | |
Other Assets & Liabilities, Net | (4,491,888) | |
Net Assets | $537,144,418 |
Call option contracts written | ||||||||
Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
NASDAQ 100 Index | Morgan Stanley | USD | (261,986,400) | (180) | 14,675.00 | 7/16/2021 | (954,748) | (2,133,000) |
16 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
(a) | Non-income producing investment. |
(b) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2021. |
(d) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2021 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 0.051% | ||||||||
9,894,909 | 47,545,179 | (49,437,903) | — | 8,002,185 | — | 3,314 | 8,002,985 |
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). |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 17 |
June 30, 2021 (Unaudited)
The following table is a summary of the inputs used to value the Fund’s investments at June 30, 2021:
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Communication Services | 53,985,986 | — | — | 53,985,986 |
Consumer Discretionary | 14,409,128 | — | — | 14,409,128 |
Health Care | 1,073,700 | — | — | 1,073,700 |
Industrials | 12,340,908 | — | — | 12,340,908 |
Information Technology | 447,085,473 | 4,738,926 | — | 451,824,399 |
Total Common Stocks | 528,895,195 | 4,738,926 | — | 533,634,121 |
Money Market Funds | 8,002,185 | — | — | 8,002,185 |
Total Investments in Securities | 536,897,380 | 4,738,926 | — | 541,636,306 |
Investments in Derivatives | ||||
Liability | ||||
Options Contracts Written | (2,133,000) | — | — | (2,133,000) |
Total | 534,764,380 | 4,738,926 | — | 539,503,306 |
18 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $235,088,372) | $533,634,121 |
Affiliated issuers (cost $8,002,185) | 8,002,185 |
Receivable for: | |
Investments sold | 450,655 |
Dividends | 163,971 |
Foreign tax reclaims | 7,815 |
Other assets | 20,030 |
Total assets | 542,278,777 |
Liabilities | |
Option contracts written, at value (premiums received $954,748) | 2,133,000 |
Payable for: | |
Investments purchased | 2,800,384 |
Management services fees | 15,638 |
Stockholder servicing and transfer agent fees | 1,915 |
Compensation of board members | 143,706 |
Compensation of chief compliance officer | 42 |
Other expenses | 39,674 |
Total liabilities | 5,134,359 |
Net assets applicable to outstanding Common Stock | $537,144,418 |
Represented by | |
Paid in capital | 218,488,563 |
Total distributable earnings (loss) | 318,655,855 |
Total - representing net assets applicable to outstanding Common Stock | $537,144,418 |
Shares outstanding applicable to Common Stock | 15,918,391 |
Net asset value per share of outstanding Common Stock | $33.74 |
Market price per share of Common Stock | $35.51 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 19 |
Six Months Ended June 30, 2021 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $2,586,146 |
Dividends — affiliated issuers | 3,314 |
Foreign taxes withheld | (11,415) |
Total income | 2,578,045 |
Expenses: | |
Management services fees | 2,607,432 |
Stockholder servicing and transfer agent fees | 8,661 |
Compensation of board members | 34,037 |
Custodian fees | 13,305 |
Printing and postage fees | 27,573 |
Stockholders’ meeting fees | 20,134 |
Audit fees | 23,276 |
Legal fees | 6,884 |
Compensation of chief compliance officer | 49 |
Other | 51,438 |
Total expenses | 2,792,789 |
Net investment loss | (214,744) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 24,604,139 |
Foreign currency translations | (1,300) |
Options purchased | 131,960 |
Options contracts written | 9,705,189 |
Net realized gain | 34,439,988 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 75,588,890 |
Foreign currency translations | (237) |
Options purchased | (9,434) |
Options contracts written | (1,420,923) |
Net change in unrealized appreciation (depreciation) | 74,158,296 |
Net realized and unrealized gain | 108,598,284 |
Net increase in net assets resulting from operations | $108,383,540 |
20 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 | |
Operations | ||
Net investment income (loss) | $(214,744) | $1,736,081 |
Net realized gain | 34,439,988 | 23,224,709 |
Net change in unrealized appreciation (depreciation) | 74,158,296 | 74,868,847 |
Net increase in net assets resulting from operations | 108,383,540 | 99,829,637 |
Distributions to stockholders | ||
Net investment income and net realized gains | (14,716,254) | (29,394,307) |
Total distributions to stockholders | (14,716,254) | (29,394,307) |
Increase in net assets from capital stock activity | 363,538 | 615,471 |
Total increase in net assets | 94,030,824 | 71,050,801 |
Net assets at beginning of period | 443,113,594 | 372,062,793 |
Net assets at end of period | $537,144,418 | $443,113,594 |
Six Months Ended | Year Ended | |||
June 30, 2021 (Unaudited) | December 31, 2020 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Common Stock issued at market price in distributions | 11,794 | 363,538 | 30,215 | 669,829 |
Common Stock purchased in the open market | — | — | (2,629) | (54,358) |
Total net increase | 11,794 | 363,538 | 27,586 | 615,471 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 21 |
Six Months Ended June 30, 2021 (Unaudited) | Year ended December 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Per share data | ||||||
Net asset value, beginning of period | $27.86 | $23.43 | $16.96 | $20.83 | $17.78 | $17.29 |
Income from investment operations: | ||||||
Net investment income (loss) | (0.01) | 0.11 | (0.02) | (0.01) | (0.06) | (0.05) |
Net realized and unrealized gain (loss) | 6.82 | 6.17 | 8.34 | (1.36) | 5.74 | 2.39 |
Total from investment operations | 6.81 | 6.28 | 8.32 | (1.37) | 5.68 | 2.34 |
Less distributions to Stockholders from: | ||||||
Net investment income | — | (0.11) | — | — | — | — |
Net realized gains | (0.93) | (1.74) | (1.85) | (2.50) | (2.63) | (1.85) |
Total distributions to Stockholders | (0.93) | (1.85) | (1.85) | (2.50) | (2.63) | (1.85) |
Net asset value, end of period | $33.74 | $27.86 | $23.43 | $16.96 | $20.83 | $17.78 |
Market price, end of period | $35.51 | $27.24 | $23.55 | $16.81 | $22.25 | $18.74 |
Total return | ||||||
Based upon net asset value | 24.77% | 29.17% | 51.04% | (7.77%) | 32.72% | 15.29% |
Based upon market price | 34.30% | 25.65% | 53.17% | (14.42%) | 34.51% | 17.18% |
Ratios to average net assets | ||||||
Total gross expenses(a) | 1.14%(b) | 1.15% | 1.15% | 1.15% | 1.16% | 1.17% |
Net investment income (loss) | (0.09%)(b) | 0.50% | (0.08%) | (0.05%) | (0.28%) | (0.33%) |
Supplemental data | ||||||
Net assets, end of period (in thousands) | $537,144 | $443,114 | $372,063 | $265,315 | $320,472 | $273,226 |
Portfolio turnover | 15% | 32% | 43% | 34% | 47% | 61% |
Notes to Financial Highlights | |
(a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(b) | Annualized. |
22 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 23 |
June 30, 2021 (Unaudited)
24 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 25 |
June 30, 2021 (Unaudited)
Liability derivatives | ||
Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
Equity risk | Options contracts written, at value | 2,133,000 |
Amount of realized gain (loss) on derivatives recognized in income | |||
Risk exposure category | Options contracts written ($) | Options contracts purchased ($) | Total ($) |
Equity risk | 9,705,189 | 131,960 | 9,837,149 |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |||
Risk exposure category | Options contracts written ($) | Options contracts purchased ($) | Total ($) |
Equity risk | (1,420,923) | (9,434) | (1,430,357) |
26 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Derivative instrument | Average value ($) |
Options contracts — purchased | 12,541* |
Options contracts — written | (1,076,897)** |
* | Based on the ending daily outstanding amounts for the six months ended June 30, 2021. |
** | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2021. |
Morgan Stanley ($) | |
Liabilities | |
Options contracts written | 2,133,000 |
Total financial and derivative net assets | (2,133,000) |
Total collateral received (pledged) (a) | (2,133,000) |
Net amount (b) | - |
(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. |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 27 |
June 30, 2021 (Unaudited)
28 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 29 |
June 30, 2021 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
242,136,000 | 300,965,000 | (3,598,000) | 297,367,000 |
30 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 31 |
June 30, 2021 (Unaudited)
32 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 33 |
June 30, 2021 (Unaudited)
34 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 35 |
June 30, 2021 (Unaudited)
36 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 37 |
• | Information on the investment performance of the Fund relative to the performance of a group of funds determined to be comparable to the Fund by Broadridge, as well as performance relative to benchmarks; |
• | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable funds, as determined by Broadridge; |
• | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
• | Terms of the Management Agreement; |
• | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund; |
• | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
• | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
• | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
• | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
• | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
• | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
38 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 39 |
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
40 | Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 |
Director | For | Withheld |
George S. Batejan | 12,810,889 | 154,865 |
Kathleen Blatz | 12,804,676 | 161,078 |
Pamela G. Carlton | 12,804,001 | 161,753 |
Christopher O. Petersen | 12,819,048 | 146,706 |
Sandra Yeager | 12,798,247 | 167,507 |
For | Against | Abstain |
12,822,831 | 56,808 | 86,112 |
Columbia Seligman Premium Technology Growth Fund, Inc. | Semiannual Report 2021 | 41 |
![](https://capedge.com/proxy/N-CSRS/0001683863-21-004772/img89247c2a2.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, 2021, the Fund didn't purchase any shares of its Common Stock in the open market.
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.
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/ Daniel J. Beckman | ||
|
|
| Daniel J. Beckman, President and Principal Executive Officer |
Date |
| August 20, 2021 |
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 |
| August 20, 2021 |
|
By (Signature and Title) | /s/ Michael G. Clarke | ||
|
| Michael G. Clarke, Chief Financial Officer, Principal Financial Officer | |
|
| and Senior Vice President | |
Date |
| August 20, 2021 |
|
By (Signature and Title) | /s/ Joseph Beranek | ||
|
| Joseph Beranek, Treasurer, Chief Accounting Officer and Principal | |
|
| Financial Officer | |
Date |
| August 20, 2021 |
|