UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-04367 |
|
Columbia Funds Series Trust I |
(Exact name of registrant as specified in charter) |
|
225 Franklin Street, Boston, Massachusetts | | 02110 |
(Address of principal executive offices) | | (Zip code) |
|
Christopher O. Petersen, 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: | July 31 | |
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Date of reporting period: | July 31, 2013 | |
| | | | | | | | |
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, 450 Fifth Street, NW, Washington, DC 20549-0609. 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
July 31, 2013
Columbia Large Cap Growth Fund
Not FDIC insured • No bank guarantee • May lose value
Dear Shareholders,
A return to volatility
Volatility returned to the financial markets in the second quarter of 2013, as uncertainty about the global economy, monetary policy and the impact of the sequester's spending cuts weighed on investors. Households advanced their spending but also allocated less to savings. Labor markets continued to crank out jobs at a steady pace, slowly reducing unemployment. Housing activity remained strong and retail sales were higher despite no real increase in income. The single weak spot was in the manufacturing sector, where activity slowed. While the consumer has weathered the domestic drag well, business has been closer to the global slowdown and effects of sequestration. Businesses remain very cautious, keeping inventories and staffs lean, and are planning for but not yet confident enough to make capital expenditures.
Against this backdrop, equities outperformed fixed income during the second quarter of 2013. Small-cap stocks outperformed large- and mid-cap stocks, and growth outperformed value except for in the large-cap sector. Outside the United States, foreign stock markets generally lost ground, with the most significant losses sustained by emerging markets.
Columbia Management to begin delivering summary prospectuses
Each Columbia fund is required to update its prospectus on an annual basis. Beginning with June 2013 prospectus updates, shareholders of Columbia retail mutual funds will start to receive a summary prospectus, rather than the full length (statutory) mutual fund prospectus they have received in the past.
Each fund's summary prospectus will include the following key information:
> Investment objective
> Fee and expense table
> Portfolio turnover rate information
> Principal investment strategies, principal risks and performance information
> Management information
> Purchase and sale information
> Tax information
> Financial intermediary compensation information
Each fund's statutory prospectus will contain additional information about the fund and its risks. Both the statutory and summary prospectus will be updated each year, and will be available at columbiamanagement.com. Shareholders may request a printed version of a statutory prospectus at no cost by calling 800.345.6611 or sending an email to serviceinquiries@columbiamanagement.com.
Stay on track with Columbia Management
Backed by more than 100 years of experience, Columbia Management is one of the nation's largest asset managers. At the heart of our success — and, most importantly, that of our investors — are highly talented industry professionals, brought together by a unique way of working. We are dedicated to helping you take advantage of today's opportunities and anticipate tomorrow's. We stay abreast of the latest investment trends and ideas, using our collective insight to evaluate events and transform them into solutions you can use.
Visit columbiamanagement.com for:
> The Columbia Management Perspectives blog, featuring timely posts by our investment teams
> Detailed up-to-date fund performance and portfolio information
> Economic analysis and market commentary
> Quarterly fund commentaries
> Columbia Management Investor, our award-winning quarterly newsletter for shareholders
Thank you for your continued support of the Columbia Funds. We look forward to serving your investment needs for many years to come.
Best Regards,
J. Kevin Connaughton
President, Columbia Funds
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about a fund, visit columbiamanagement.com. The prospectus should be read carefully before investing.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
Columbia Large Cap Growth Fund
Performance Overview | | | 2 | | |
Manager Discussion of Fund Performance | | | 4 | | |
Understanding Your Fund's Expenses | | | 6 | | |
Portfolio of Investments | | | 7 | | |
Statement of Assets and Liabilities | | | 12 | | |
Statement of Operations | | | 15 | | |
Statement of Changes in Net Assets | | | 17 | | |
Financial Highlights | | | 20 | | |
Notes to Financial Statements | | | 34 | | |
Report of Independent Registered
Public Accounting Firm | | | 42 | | |
Federal Income Tax Information | | | 43 | | |
Trustees and Officers | | | 44 | | |
Board Consideration and Approval of Advisory Agreement | | | 47 | | |
Important Information About This Report | | | 53 | | |
Fund Investment Manager
Columbia Management Investment
Advisers, LLC
225 Franklin Street
Boston, MA 02110
Fund Distributor
Columbia Management Investment
Distributors, Inc.
225 Franklin Street
Boston, MA 02110
Fund Transfer Agent
Columbia Management Investment
Services Corp.
P.O. Box 8081
Boston, MA 02266-8081
For more information about any of the funds, please visit columbiamanagement.com or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 8 p.m. Eastern time.
The views expressed in this report reflect the current views of the respective parties. 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.
Columbia Large Cap Growth Fund
Performance Summary
> Columbia Large Cap Growth Fund (the Fund) Class A shares returned 22.09% excluding sales charges for the 12-month period that ended July 31, 2013.
> In an environment of generally rising stock prices, the Fund outperformed its benchmark, the Russell 1000 Growth Index, which returned 21.64% for the same 12-month period.
> Stock selection generally accounted for the Fund's performance advantage over its benchmark.
Average Annual Total Returns (%) (for period ended July 31, 2013)
| | Inception | | 1 Year | | 5 Years | | 10 Years | |
Class A | | 11/01/98 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | 22.09 | | | | 7.19 | | | | 6.96 | | |
Including sales charges | | | | | | | 15.09 | | | | 5.93 | | | | 6.33 | | |
Class B | | 11/01/98 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | 21.14 | | | | 6.39 | | | | 6.15 | | |
Including sales charges | | | | | | | 16.14 | | | | 6.07 | | | | 6.15 | | |
Class C | | 11/18/02 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | 21.12 | | | | 6.39 | | | | 6.15 | | |
Including sales charges | | | | | | | 20.12 | | | | 6.39 | | | | 6.15 | | |
Class E* | | 09/22/06 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | 21.93 | | | | 7.08 | | | | 6.85 | | |
Including sales charges | | | | | | | 16.43 | | | | 6.10 | | | | 6.36 | | |
Class F* | | 09/22/06 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | 21.14 | | | | 6.40 | | | | 6.16 | | |
Including sales charges | | | | | | | 16.14 | | | | 6.08 | | | | 6.16 | | |
Class I* | | 09/27/10 | | | 22.60 | | | | 7.58 | | | | 7.29 | | |
Class K* (formerly Class R4) | | 03/07/11 | | | 22.25 | | | | 7.35 | | | | 7.11 | | |
Class R* | | 09/27/10 | | | 21.75 | | | | 6.89 | | | | 6.64 | | |
Class R4* | | 11/08/12 | | | 22.35 | | | | 7.45 | | | | 7.22 | | |
Class R5* | | 03/07/11 | | | 22.59 | | | | 7.55 | | | | 7.27 | | |
Class T | | 12/14/90 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | 22.01 | | | | 7.14 | | | | 6.91 | | |
Including sales charges | | | | | | | 14.97 | | | | 5.88 | | | | 6.27 | | |
Class W* | | 09/27/10 | | | 22.12 | | | | 7.23 | | | | 7.00 | | |
Class Y* | | 07/15/09 | | | 22.64 | | | | 7.62 | | | | 7.31 | | |
Class Z | | 12/14/90 | | | 22.34 | | | | 7.45 | | | | 7.22 | | |
Russell 1000 Growth Index | | | | | | | 21.64 | | | | 9.01 | | | | 7.69 | | |
Returns for Class A and Class T are shown with and without the maximum initial sales charge of 5.75%. Returns for Class E are shown with and without the maximum initial sales charge of 4.50%. Returns for Class B and Class F are shown with and without the applicable contingent deferred sales charge (CDSC) of 5.00% in the first year, declining to 1.00% in the sixth year and eliminated thereafter. Returns for Class C are shown with and without the 1.00% CDSC for the first year only. The Fund's other classes are not subject to sales charges and have limited eligibility. Please see the Fund's prospectuses for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each 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 columbiamanagement.com 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. Since the Fund launched more than one share class at its inception, Class Z shares were used. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiamanagement.com/mutual-funds/appended-performance for more information.
The Russell 1000 Growth Index, an unmanaged index, measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Annual Report 2013
2
Columbia Large Cap Growth Fund
Performance Overview (continued)
Performance of a Hypothetical $10,000 Investment (August 1, 2003 – July 31, 2013)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Large Cap Growth 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.
Annual Report 2013
3
Columbia Large Cap Growth Fund
Manager Discussion of Fund Performance
For the 12-month period that ended July 31, 2013, the Fund's Class A shares returned 22.09%, excluding sales charges. The Fund's benchmark, the Russell 1000 Growth Index, returned 21.64% over the same 12-month period. Stock selection in health care, consumer discretionary and financials, as well as an overweight in health care, aided the Fund's results relative to its benchmark.
U.S. Economy in Slow Recovery
Europe's general economic woes, concerns about the impact of tax increases and enforced federal spending cuts and a modest slowdown in manufacturing activity weighed on the U.S. economy during the 12-month period ended July 31, 2013. However, a pickup in job growth and a solid rebound in the housing market helped keep growth afloat. Pent-up demand, low mortgage rates and an improving labor market have all worked to lift home sales. Even so, there has been no real improvement in the overall pace of economic growth since the current cycle of recovery began in 2009. Gross domestic product has expanded by a mere 1.4% over the past year. Household income has expanded only slightly, and household spending has been maintained primarily by a dip in the savings rate. Yet, investors have bid prices higher on stocks and other riskier assets, as central banks continued to pour liquidity into key markets. Small- and mid-cap stocks outperformed large-cap stocks, and value outperformed growth, with the exception of small-cap stocks, where growth edged out value.
Health Care, Consumer Discretionary and Financials Aided Relative Results
In the health care sector, Gilead Sciences and Vertex Pharmaceuticals made significant contributions to the Fund's gains, and overweights in both securities aided relative performance. Shares of Gilead Sciences were driven higher on improved confidence in the biotech company's new product aimed at treating hepatitis C. Biotechnology company Vertex Pharmaceuticals, with treatments for both hepatitis C and cystic fibrosis, advanced strongly on reports of positive results from a new cystic fibrosis treatment. Also in the health care sector, an investment in Thermo Fisher, a leading manufacturer of instruments and tools that serve biotechnology and other related fields, paid off nicely. Good revenues and earnings prospects, as well as an improved backdrop for industry spending, benefited the company during the period. The stock is not in the benchmark. During the period, we pruned some health care exposure as the sector was such a strong performer. In retrospect, had we not trimmed health care positions a little on the early side, performance might have been even better.
Within the consumer discretionary sector casino operator Las Vegas Sands was a notable contributor as the company continued to benefit from the growth in its China-based Macau properties. Overall, the media industry was an area of strength for the market and the Fund's positions in DISH Network and Discovery Communications were standout performers relative to the benchmark.
In the financials sector, an overweight in BlackRock, a leading money manager, benefited relative performance. A rising market resulted in improved prospects for flows into equities, exchange-traded funds and mutual funds, which drove the company's share price higher. We also did well to underweight real estate investment trusts, which were subpar performers during the period.
Portfolio Management
John Wilson, CFA
Peter Deininger, CFA
Morningstar Style BoxTM
The Morningstar Style BoxTM is based on a fund's portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
©2013 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Top Ten Holdings (%)
(at July 31, 2013) | |
Google, Inc., Class A | | | 4.3 | | |
Apple, Inc. | | | 3.1 | | |
Gilead Sciences, Inc. | | | 3.1 | | |
PepsiCo, Inc. | | | 2.8 | | |
Mastercard, Inc., Class A | | | 2.6 | | |
Honeywell International, Inc. | | | 2.4 | | |
EMC Corp. | | | 2.4 | | |
Express Scripts Holding Co. | | | 2.2 | | |
QUALCOMM, Inc. | | | 2.2 | | |
Union Pacific Corp. | | | 2.2 | | |
Percentages indicated are based upon total investments (excluding Money Market Funds).
For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
Annual Report 2013
4
Columbia Large Cap Growth Fund
Manager Discussion of Fund Performance (continued)
Energy Stocks Led Disappointments
Stock selection among energy stocks detracted from relative returns, especially in the equipment and services industry. Positions in Cameron International and Ensco were detractors from relative performance.
Looking Ahead
In an environment of increased volatility and modest economic growth, we believe that good stock selection is more important than ever. We will continue to look for reasonably valued, high quality growth companies with competitive strengths across multiple geographic regions, and with leading market share, strong management teams and solid balance sheets. We continue to believe there are companies that could improve their competitive positions in an environment of relatively slow but steady economic growth, and we believe our investment process is well suited to identifying those with the greatest potential.
Portfolio Breakdown (%)
(at July 31, 2013) | |
Common Stocks | | | 98.7 | | |
Consumer Discretionary | | | 17.7 | | |
Consumer Staples | | | 8.9 | | |
Energy | | | 4.7 | | |
Financials | | | 5.8 | | |
Health Care | | | 16.2 | | |
Industrials | | | 12.7 | | |
Information Technology | | | 28.4 | | |
Materials | | | 2.6 | | |
Telecommunication Services | | | 1.7 | | |
Money Market Funds | | | 1.3 | | |
Total | | | 100.0 | | |
Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.
Investment Risks
Risks include stock market fluctuations due to business and economic developments.
Annual Report 2013
5
Columbia Large Cap Growth Fund
Understanding Your Fund's Expenses
(Unaudited)
As an investor, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and service (Rule 12b-1) 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the Actual column. The amount listed in the "Hypothetical" column assumes a 5% annual rate of return before expenses (which is not the Fund's actual return) and then applies the Fund's actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See "Compare With Other Funds" below for details on how to use the hypothetical data.
Compare With Other Funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
February 1, 2013 – July 31, 2013
| | Account Value at the Beginning
of the Period ($) | | 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 | | | | 1,103.50 | | | | 1,019.04 | | | | 6.05 | | | | 5.81 | | | | 1.16 | | |
Class B | | | 1,000.00 | | | | 1,000.00 | | | | 1,099.20 | | | | 1,015.32 | | | | 9.94 | | | | 9.54 | | | | 1.91 | | |
Class C | | | 1,000.00 | | | | 1,000.00 | | | | 1,099.10 | | | | 1,015.32 | | | | 9.94 | | | | 9.54 | | | | 1.91 | | |
Class E | | | 1,000.00 | | | | 1,000.00 | | | | 1,102.90 | | | | 1,018.55 | | | | 6.57 | | | | 6.31 | | | | 1.26 | | |
Class F | | | 1,000.00 | | | | 1,000.00 | | | | 1,099.20 | | | | 1,015.27 | | | | 9.99 | | | | 9.59 | | | | 1.92 | | |
Class I | | | 1,000.00 | | | | 1,000.00 | | | | 1,105.70 | | | | 1,021.32 | | | | 3.65 | | | | 3.51 | | | | 0.70 | | |
Class K (formerly
Class R4) | | | 1,000.00 | | | | 1,000.00 | | | | 1,104.00 | | | | 1,019.74 | | | | 5.32 | | | | 5.11 | | | | 1.02 | | |
Class R | | | 1,000.00 | | | | 1,000.00 | | | | 1,101.80 | | | | 1,017.80 | | | | 7.35 | | | | 7.05 | | | | 1.41 | | |
Class R4 | | | 1,000.00 | | | | 1,000.00 | | | | 1,104.80 | | | | 1,020.23 | | | | 4.80 | | | | 4.61 | | | | 0.92 | | |
Class R5 | | | 1,000.00 | | | | 1,000.00 | | | | 1,105.70 | | | | 1,021.08 | | | | 3.92 | | | | 3.76 | | | | 0.75 | | |
Class T | | | 1,000.00 | | | | 1,000.00 | | | | 1,103.00 | | | | 1,018.79 | | | | 6.31 | | | | 6.06 | | | | 1.21 | | |
Class W | | | 1,000.00 | | | | 1,000.00 | | | | 1,103.40 | | | | 1,019.19 | | | | 5.89 | | | | 5.66 | | | | 1.13 | | |
Class Y | | | 1,000.00 | | | | 1,000.00 | | | | 1,105.60 | | | | 1,021.32 | | | | 3.65 | | | | 3.51 | | | | 0.70 | | |
Class Z | | | 1,000.00 | | | | 1,000.00 | | | �� | 1,104.60 | | | | 1,020.28 | | | | 4.75 | | | | 4.56 | | | | 0.91 | | |
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 the underlying funds in which the Fund may invest (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds).
Annual Report 2013
6
Columbia Large Cap Growth Fund
Portfolio of Investments
July 31, 2013
(Percentages represent value of investments compared to net assets)
Common Stocks 98.2%
Issuer | | Shares | | Value ($) | |
Consumer Discretionary 17.6% | |
Auto Components 1.1% | |
Delphi Automotive PLC | | | 577,900 | | | | 31,044,788 | | |
Hotels, Restaurants & Leisure 2.6% | |
Las Vegas Sands Corp. | | | 670,000 | | | | 37,231,900 | | |
Starwood Hotels & Resorts
Worldwide, Inc. | | | 541,700 | | | | 35,833,455 | | |
Total | | | | | 73,065,355 | | |
Household Durables 0.7% | |
Mohawk Industries, Inc.(a) | | | 172,500 | | | | 20,525,775 | | |
Internet & Catalog Retail 3.8% | |
Amazon.com, Inc.(a) | | | 131,185 | | | | 39,515,546 | | |
Netflix, Inc.(a) | | | 57,800 | | | | 14,115,916 | | |
priceline.com, Inc.(a) | | | 59,300 | | | | 51,927,231 | | |
Total | | | | | 105,558,693 | | |
Media 3.3% | |
Comcast Corp., Class A | | | 289,600 | | | | 13,055,168 | | |
DISH Network Corp., Class A | | | 956,500 | | | | 42,707,725 | | |
Walt Disney Co. (The) | | | 583,600 | | | | 37,729,740 | | |
Total | | | | | 93,492,633 | | |
Specialty Retail 4.8% | |
Gap, Inc. (The) | | | 913,200 | | | | 41,915,880 | | |
Lowe's Companies, Inc. | | | 942,100 | | | | 41,998,818 | | |
O'Reilly Automotive, Inc.(a) | | | 258,000 | | | | 32,317,080 | | |
Williams-Sonoma, Inc. | | | 299,000 | | | | 17,599,140 | | |
Total | | | | | 133,830,918 | | |
Textiles, Apparel & Luxury Goods 1.3% | |
Nike, Inc., Class B | | | 573,200 | | | | 36,065,744 | | |
Total Consumer Discretionary | | | | | 493,583,906 | | |
Consumer Staples 8.9% | |
Beverages 2.7% | |
PepsiCo, Inc. | | | 915,900 | | | | 76,514,286 | | |
Food & Staples Retailing 1.7% | |
Walgreen Co. | | | 911,900 | | | | 45,822,975 | | |
Food Products 1.1% | |
ConAgra Foods, Inc. | | | 850,800 | | | | 30,807,468 | | |
Household Products 1.4% | |
Procter & Gamble Co. (The) | | | 490,800 | | | | 39,411,240 | | |
Common Stocks (continued)
Issuer | | Shares | | Value ($) | |
Personal Products 1.3% | |
Estee Lauder Companies, Inc. (The),
Class A | | | 552,100 | | | | 36,245,365 | | |
Tobacco 0.7% | |
Philip Morris International, Inc. | | | 216,105 | | | | 19,272,244 | | |
Total Consumer Staples | | | | | 248,073,578 | | |
Energy 4.6% | |
Energy Equipment & Services 3.3% | |
Cameron International Corp.(a) | | | 599,100 | | | | 35,526,630 | | |
Halliburton Co. | | | 1,279,600 | | | | 57,825,124 | | |
Total | | | | | 93,351,754 | | |
Oil, Gas & Consumable Fuels 1.3% | |
Anadarko Petroleum Corp. | | | 417,500 | | | | 36,957,100 | | |
Kinder Morgan Management LLC(b)(c) | | | — | | | | 34 | | |
Total | | | | | 36,957,134 | | |
Total Energy | | | | | 130,308,888 | | |
Financials 5.8% | |
Capital Markets 2.1% | |
BlackRock, Inc. | | | 138,200 | | | | 38,966,872 | | |
Invesco Ltd. | | | 642,300 | | | | 20,675,637 | | |
Total | | | | | 59,642,509 | | |
Commercial Banks 1.7% | |
Fifth Third Bancorp | | | 1,078,100 | | | | 20,731,863 | | |
Wells Fargo & Co. | | | 602,000 | | | | 26,187,000 | | |
Total | | | | | 46,918,863 | | |
Diversified Financial Services 1.4% | |
Citigroup, Inc. | | | 731,000 | | | | 38,114,340 | | |
Real Estate Investment Trusts (REITs) 0.6% | |
Simon Property Group, Inc. | | | 110,000 | | | | 17,606,600 | | |
Total Financials | | | | | 162,282,312 | | |
Health Care 16.2% | |
Biotechnology 5.8% | |
Ariad Pharmaceuticals, Inc.(a) | | | 302,400 | | | | 5,618,592 | | |
Celgene Corp.(a) | | | 302,000 | | | | 44,351,720 | | |
Gilead Sciences, Inc.(a) | | | 1,370,000 | | | | 84,186,500 | | |
Vertex Pharmaceuticals, Inc.(a) | | | 331,500 | | | | 26,453,700 | | |
Total | | | | | 160,610,512 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
7
Columbia Large Cap Growth Fund
Portfolio of Investments (continued)
July 31, 2013
Common Stocks (continued)
Issuer | | Shares | | Value ($) | |
Health Care Equipment & Supplies 3.8% | |
Abbott Laboratories | | | 783,600 | | | | 28,703,268 | | |
St. Jude Medical, Inc. | | | 750,400 | | | | 39,313,456 | | |
Zimmer Holdings, Inc. | | | 466,400 | | | | 38,935,072 | | |
Total | | | | | 106,951,796 | | |
Health Care Providers & Services 3.3% | |
Aetna, Inc. | | | 500,800 | | | | 32,136,336 | | |
Express Scripts Holding Co.(a) | | | 920,500 | | | | 60,338,775 | | |
Total | | | | | 92,475,111 | | |
Life Sciences Tools & Services 0.6% | |
Thermo Fisher Scientific, Inc. | | | 186,600 | | | | 17,001,126 | | |
Pharmaceuticals 2.7% | |
AbbVie, Inc. | | | 959,300 | | | | 43,628,964 | | |
Johnson & Johnson | | | 340,400 | | | | 31,827,400 | | |
Total | | | | | 75,456,364 | | |
Total Health Care | | | | | 452,494,909 | | |
Industrials 12.6% | |
Aerospace & Defense 4.0% | |
Honeywell International, Inc. | | | 795,900 | | | | 66,043,782 | | |
Precision Castparts Corp. | | | 203,700 | | | | 45,164,364 | | |
Total | | | | | 111,208,146 | | |
Commercial Services & Supplies 2.1% | |
Tyco International Ltd. | | | 1,661,000 | | | | 57,819,410 | | |
Electrical Equipment 2.9% | |
Eaton Corp. PLC | | | 702,700 | | | | 48,451,165 | | |
Rockwell Automation, Inc. | | | 335,300 | | | | 32,473,805 | | |
Total | | | | | 80,924,970 | | |
Machinery 0.6% | |
Pall Corp. | | | 234,800 | | | | 16,426,608 | | |
Road & Rail 3.0% | |
JB Hunt Transport Services, Inc. | | | 353,100 | | | | 26,457,783 | | |
Union Pacific Corp. | | | 373,600 | | | | 59,249,224 | | |
Total | | | | | 85,707,007 | | |
Total Industrials | | | | | 352,086,141 | | |
Information Technology 28.2% | |
Communications Equipment 3.8% | |
Cisco Systems, Inc. | | | 1,839,700 | | | | 47,004,335 | | |
QUALCOMM, Inc. | | | 925,680 | | | | 59,752,644 | | |
Total | | | | | 106,756,979 | | |
Common Stocks (continued)
Issuer | | Shares | | Value ($) | |
Computers & Peripherals 6.8% | |
Apple, Inc. | | | 186,666 | | | | 84,466,365 | | |
EMC Corp. | | | 2,494,410 | | | | 65,228,821 | | |
NCR Corp.(a) | | | 1,143,900 | | | | 41,180,400 | | |
Total | | | | | 190,875,586 | | |
Internet Software & Services 7.7% | |
eBay, Inc.(a) | | | 944,700 | | | | 48,831,543 | | |
Facebook, Inc., Class A(a) | | | 613,500 | | | | 22,595,205 | | |
Google, Inc., Class A(a) | | | 132,456 | | | | 117,567,946 | | |
LinkedIn Corp., Class A(a) | | | 136,800 | | | | 27,878,472 | | |
Total | | | | | 216,873,166 | | |
IT Services 3.8% | |
Accenture PLC, Class A | | | 481,900 | | | | 35,569,039 | | |
Mastercard, Inc., Class A | | | 115,600 | | | | 70,586,516 | | |
Total | | | | | 106,155,555 | | |
Semiconductors & Semiconductor Equipment 1.8% | |
KLA-Tencor Corp. | | | 595,200 | | | | 34,896,576 | | |
NXP Semiconductor NV(a) | | | 459,674 | | | | 15,008,356 | | |
Total | | | | | 49,904,932 | | |
Software 4.3% | |
Microsoft Corp. | | | 1,260,100 | | | | 40,108,983 | | |
Oracle Corp. | | | 670,400 | | | | 21,687,440 | | |
QLIK Technologies, Inc.(a) | | | 635,000 | | | | 19,888,200 | | |
Salesforce.com, Inc.(a) | | | 884,800 | | | | 38,710,000 | | |
Total | | | | | 120,394,623 | | |
Total Information Technology | | | | | 790,960,841 | | |
Materials 2.6% | |
Chemicals 2.6% | |
LyondellBasell Industries NV, Class A | | | 368,500 | | | | 25,319,635 | | |
Monsanto Co. | | | 481,100 | | | | 47,523,058 | | |
Total | | | | | 72,842,693 | | |
Total Materials | | | | | 72,842,693 | | |
Telecommunication Services 1.7% | |
Diversified Telecommunication Services 1.7% | |
Verizon Communications, Inc. | | | 971,400 | | | | 48,064,872 | | |
Total Telecommunication Services | | | | | 48,064,872 | | |
Total Common Stocks
(Cost: $2,143,817,808) | | | | | 2,750,698,140 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
8
Columbia Large Cap Growth Fund
Portfolio of Investments (continued)
July 31, 2013
Money Market Funds 1.3%
| | | Shares | | Value ($) | |
Columbia Short-Term Cash Fund,
0.191%(d)(e) | | | 35,610,735 | | | | 35,610,735 | | |
Total Money Market Funds
(Cost: $35,610,735) | | | | | 35,610,735 | | |
Total Investments
(Cost: $2,179,428,543) | | | | | 2,786,308,875 | | |
Other Assets & Liabilities, Net | | | | | 12,923,087 | | |
Net Assets | | | | | 2,799,231,962 | | |
Notes to Portfolio of Investments
(a) Non-income producing.
(b) Identifies issues considered to be illiquid as to their marketability. The aggregate value of such securities at July 31, 2013 was $34, representing less than 0.01% of net assets. Information concerning such security holdings at July 31, 2013 is as follows:
Security Description | | Acquisition Dates | | Cost ($) | |
Kinder Morgan Management LLC | | 12/18/02 - 01/18/05 | | | 10 | | |
(c) Represents fractional shares.
(d) The rate shown is the seven-day current annualized yield at July 31, 2013.
(e) As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of its outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the year ended July 31, 2013, are as follows:
Issuer | | Beginning
Cost ($) | | Purchase
Cost ($) | | Proceeds
From Sales ($) | | Ending
Cost ($) | | Dividends —
Affiliated
Issuers ($) | | Value ($) | |
Columbia Short-Term Cash Fund | | | 45,679,584 | | | | 967,947,792 | | | | (978,016,641 | ) | | | 35,610,735 | | | | 80,089 | | | | 35,610,735 | | |
Fair Value Measurements
Generally accepted accounting principles (GAAP) require 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.
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 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 (including NAV for open-end mutual funds). 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).
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
9
Columbia Large Cap Growth Fund
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
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 carrying out the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
10
Columbia Large Cap Growth Fund
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
The following table is a summary of the inputs used to value the Fund's investments at July 31, 2013:
Description | | Level 1
Quoted Prices in Active
Markets for Identical
Assets ($) | | Level 2
Other Significant
Observable Inputs ($) | | Level 3
Significant
Unobservable Inputs ($) | | Total ($) | |
Equity Securities | |
Common Stocks | |
Consumer Discretionary | | | 493,583,906 | | | | — | | | | — | | | | 493,583,906 | | |
Consumer Staples | | | 248,073,578 | | | | — | | | | — | | | | 248,073,578 | | |
Energy | | | 130,308,854 | | | | 34 | | | | — | | | | 130,308,888 | | |
Financials | | | 162,282,312 | | | | — | | | | — | | | | 162,282,312 | | |
Health Care | | | 452,494,909 | | | | — | | | | — | | | | 452,494,909 | | |
Industrials | | | 352,086,141 | | | | — | | | | — | | | | 352,086,141 | | |
Information Technology | | | 790,960,841 | | | | — | | | | — | | | | 790,960,841 | | |
Materials | | | 72,842,693 | | | | — | | | | — | | | | 72,842,693 | | |
Telecommunication Services | | | 48,064,872 | | | | — | | | | — | | | | 48,064,872 | | |
Total Equity Securities | | | 2,750,698,106 | | | | 34 | | | | — | | | | 2,750,698,140 | | |
Mutual Funds | |
Money Market Funds | | | 35,610,735 | | | | — | | | | — | | | | 35,610,735 | | |
Total Mutual Funds | | | 35,610,735 | | | | — | | | | — | | | | 35,610,735 | | |
Total | | | 2,786,308,841 | | | | 34 | | | | — | | | | 2,786,308,875 | | |
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.
There were no transfers of financial assets between Levels 1 and 2 during the period.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
11
Columbia Large Cap Growth Fund
Statement of Assets and Liabilities
July 31, 2013
Assets | |
Investments, at value | |
Unaffiliated issuers (identified cost $2,143,817,808) | | $ | 2,750,698,140 | | |
Affiliated issuers (identified cost $35,610,735) | | | 35,610,735 | | |
Total investments (identified cost $2,179,428,543) | | | 2,786,308,875 | | |
Receivable for: | |
Investments sold | | | 11,818,010 | | |
Capital shares sold | | | 222,278 | | |
Dividends | | | 2,317,193 | | |
Prepaid expenses | | | 43,187 | | |
Trustees' deferred compensation plan | | | 188,286 | | |
Other assets | | | 44,319 | | |
Total assets | | | 2,800,942,148 | | |
Liabilities | |
Payable for: | |
Capital shares purchased | | | 900,333 | | |
Investment management fees | | | 47,621 | | |
Distribution and/or service fees | | | 13,891 | | |
Transfer agent fees | | | 256,802 | | |
Administration fees | | | 4,040 | | |
Plan administration fees | | | 1 | | |
Compensation of board members | | | 6,212 | | |
Chief compliance officer expenses | | | 427 | | |
Other expenses | | | 292,573 | | |
Trustees' deferred compensation plan | | | 188,286 | | |
Total liabilities | | | 1,710,186 | | |
Net assets applicable to outstanding capital stock | | $ | 2,799,231,962 | | |
Represented by | |
Paid-in capital | | $ | 2,233,519,313 | | |
Undistributed net investment income | | | 4,917,789 | | |
Accumulated net realized loss | | | (46,085,472 | ) | |
Unrealized appreciation (depreciation) on: | |
Investments | | | 606,880,332 | | |
Total — representing net assets applicable to outstanding capital stock | | $ | 2,799,231,962 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
12
Columbia Large Cap Growth Fund
Statement of Assets and Liabilities (continued)
July 31, 2013
Class A | |
Net assets | | $ | 1,459,892,868 | | |
Shares outstanding | | | 46,717,794 | | |
Net asset value per share | | $ | 31.25 | | |
Maximum offering price per share(a) | | $ | 33.16 | | |
Class B | |
Net assets | | $ | 34,085,407 | | |
Shares outstanding | | | 1,206,383 | | |
Net asset value per share | | $ | 28.25 | | |
Class C | |
Net assets | | $ | 52,884,604 | | |
Shares outstanding | | | 1,870,456 | | |
Net asset value per share | | $ | 28.27 | | |
Class E | |
Net assets | | $ | 14,852,800 | | |
Shares outstanding | | | 476,173 | | |
Net asset value per share | | $ | 31.19 | | |
Maximum offering price per share(b) | | $ | 32.66 | | |
Class F | |
Net assets | | $ | 858,939 | | |
Shares outstanding | | | 30,406 | | |
Net asset value per share | | $ | 28.25 | | |
Class I | |
Net assets | | $ | 220,421,277 | | |
Shares outstanding | | | 6,882,841 | | |
Net asset value per share | | $ | 32.02 | | |
Class K(c) | |
Net assets | | $ | 191,493 | | |
Shares outstanding | | | 5,996 | | |
Net asset value per share | | $ | 31.94 | | |
Class R | |
Net assets | | $ | 1,642,637 | | |
Shares outstanding | | | 52,675 | | |
Net asset value per share | | $ | 31.18 | | |
Class R4 | |
Net assets | | $ | 33,235 | | |
Shares outstanding | | | 1,023 | | |
Net asset value per share(d) | | $ | 32.48 | | |
Class R5 | |
Net assets | | $ | 36,332 | | |
Shares outstanding | | | 1,135 | | |
Net asset value per share(d) | | $ | 32.00 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
13
Columbia Large Cap Growth Fund
Statement of Assets and Liabilities (continued)
July 31, 2013
Class T | |
Net assets | | $ | 160,462,095 | | |
Shares outstanding | | | 5,168,433 | | |
Net asset value per share | | $ | 31.05 | | |
Maximum offering price per share(a) | | $ | 32.94 | | |
Class W | |
Net assets | | $ | 3,779 | | |
Shares outstanding | | | 121 | | |
Net asset value per share(d) | | $ | 31.26 | | |
Class Y | |
Net assets | | $ | 3,825,535 | | |
Shares outstanding | | | 119,437 | | |
Net asset value per share | | $ | 32.03 | | |
Class Z | |
Net assets | | $ | 850,040,961 | | |
Shares outstanding | | | 26,551,661 | | |
Net asset value per share | | $ | 32.01 | | |
(a) The maximum offering price per share is calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge of 5.75%.
(b) The maximum offering price per share is calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge of 4.50%.
(c) Effective October 25, 2012, Class R4 shares were renamed Class K shares.
(d) Net asset value per share rounds to this amount due to fractional shares outstanding.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
14
Columbia Large Cap Growth Fund
Statement of Operations
Year Ended July 31, 2013
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | | $ | 41,836,709 | | |
Dividends — affiliated issuers | | | 80,089 | | |
Interest | | | 775 | | |
Income from securities lending — net | | | 252,509 | | |
Foreign taxes withheld | | | (297,526 | ) | |
Total income | | | 41,872,556 | | |
Expenses: | |
Investment management fees | | | 16,526,481 | | |
Distribution and/or service fees | |
Class A | | | 3,436,436 | | |
Class B | | | 385,272 | | |
Class C | | | 453,527 | | |
Class E | | | 49,206 | | |
Class F | | | 7,490 | | |
Class R | | | 5,962 | | |
Class T | | | 456,290 | | |
Class W | | | 9 | | |
Transfer agent fees | |
Class A | | | 3,037,630 | | |
Class B | | | 85,302 | | |
Class C | | | 100,009 | | |
Class E | | | 31,096 | | |
Class F | | | 1,653 | | |
Class K(a) | | | 95 | | |
Class R | | | 2,622 | | |
Class R4(b) | | | 7 | | |
Class R5 | | | 27 | | |
Class T | | | 336,480 | | |
Class W | | | 7 | | |
Class Y | | | 7 | | |
Class Z | | | 1,771,107 | | |
Administration fees | | | 1,399,749 | | |
Plan administration fees | |
Class K(a) | | | 1,928 | | |
Compensation of board members | | | 73,020 | | |
Custodian fees | | | 25,471 | | |
Printing and postage fees | | | 530,481 | | |
Registration fees | | | 136,752 | | |
Professional fees | | | 96,703 | | |
Chief compliance officer expenses | | | 2,057 | | |
Other | | | 100,318 | | |
Total expenses | | | 29,053,194 | | |
Expense reductions | | | (77,460 | ) | |
Total net expenses | | | 28,975,734 | | |
Net investment income | | | 12,896,822 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
15
Columbia Large Cap Growth Fund
Statement of Operations (continued)
Year Ended July 31, 2013
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments | | $ | 317,148,199 | | |
Foreign currency translations | | | 5,098 | | |
Net realized gain | | | 317,153,297 | | |
Net change in unrealized appreciation (depreciation) on: | |
Investments | | | 199,408,019 | | |
Foreign currency translations | | | (17 | ) | |
Net change in unrealized appreciation (depreciation) | | | 199,408,002 | | |
Net realized and unrealized gain | | | 516,561,299 | | |
Net increase in net assets resulting from operations | | $ | 529,458,121 | | |
(a) Effective October 25, 2012, Class R4 shares were renamed Class K shares.
(b) For the period from November 8, 2012 (commencement of operations) to July 31, 2013.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
16
Columbia Large Cap Growth Fund
Statement of Changes in Net Assets
| | | Year Ended
July 31, 2013(a) | | Year Ended
July 31, 2012(b) | | Year Ended
September 30,
2011(c) | |
Operations | |
Net investment income | | $ | 12,896,822 | | | $ | 3,874,134 | | | $ | 2,557,312 | | |
Net realized gain | | | 317,153,297 | | | | 189,991,407 | | | | 257,131,777 | | |
Net change in unrealized appreciation (depreciation) | | | 199,408,002 | | | | 344,606,699 | | | | (470,468,946 | ) | |
Net increase (decrease) in net assets resulting from operations | | | 529,458,121 | | | | 538,472,240 | | | | (210,779,857 | ) | |
Distributions to shareholders | |
Net investment income | |
Class A | | | (2,771,619 | ) | | | (1,496,905 | ) | | | (311,186 | ) | |
Class E | | | (15,269 | ) | | | — | | | | (14,099 | ) | |
Class I | | | (1,344,449 | ) | | | (1,331,613 | ) | | | (877,728 | ) | |
Class K(d) | | | (707 | ) | | | (143,866 | ) | | | — | | |
Class R4 | | | (10 | ) | | | — | | | | — | | |
Class R5 | | | (207 | ) | | | (2,411 | ) | | | — | | |
Class T | | | (237,709 | ) | | | — | | | | (228,135 | ) | |
Class W | | | (8 | ) | | | (3 | ) | | | (5 | ) | |
Class Y | | | (70,654 | ) | | | (86,293 | ) | | | (122,643 | ) | |
Class Z | | | (3,361,625 | ) | | | (1,853,696 | ) | | | (3,736,650 | ) | |
Total distributions to shareholders | | | (7,802,257 | ) | | | (4,914,787 | ) | | | (5,290,446 | ) | |
Increase (decrease) in net assets from capital stock activity | | | (236,627,866 | ) | | | (463,576,461 | ) | | | 1,440,730,125 | | |
Proceeds from regulatory settlements (Note 7) | | | — | | | | 342,877 | | | | — | | |
Total increase in net assets | | | 285,027,998 | | | | 70,323,869 | | | | 1,224,659,822 | | |
Net assets at beginning of year | | | 2,514,203,964 | | | | 2,443,880,095 | | | | 1,219,220,273 | | |
Net assets at end of year | | $ | 2,799,231,962 | | | $ | 2,514,203,964 | | | $ | 2,443,880,095 | | |
Undistributed (excess of distributions over) net investment income | | $ | 4,917,789 | | | $ | (230,946 | ) | | $ | 208,880 | | |
(a) Class R4 shares are for the period from November 8, 2012 (commencement of operations) to July 31, 2013.
(b) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(c) Class K and Class R5 shares are for the period from March 7, 2011 (commencement of operations) to September 30, 2011.
(d) Effective October 25, 2012, Class R4 shares were renamed Class K shares.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
17
Columbia Large Cap Growth Fund
Statement of Changes in Net Assets (continued)
| | | Year Ended July 31,
2013(a) | | Year Ended July 31,
2012(b) | | Year Ended September 30,
2011(c) | |
| | | Shares | | Dollars ($) | | Shares | | Dollars ($) | | Shares | | Dollars ($) | |
Capital stock activity | |
Class A shares | |
Subscriptions(d) | | | 2,414,373 | | | | 68,351,193 | | | | 1,943,514 | | | | 47,653,784 | | | | 2,313,786 | | | | 55,673,483 | | |
Fund merger | | | — | | | | — | | | | — | | | | — | | | | 53,028,074 | | | | 1,311,851,037 | | |
Distributions reinvested | | | 97,454 | | | | 2,595,207 | | | | 60,171 | | | | 1,385,141 | | | | 11,737 | | | | 267,376 | | |
Redemptions | | | (7,099,434 | ) | | | (199,146,343 | ) | | | (7,687,336 | ) | | | (186,039,214 | ) | | | (5,558,459 | ) | | | (131,794,423 | ) | |
Net increase (decrease) | | | (4,587,607 | ) | | | (128,199,943 | ) | | | (5,683,651 | ) | | | (137,000,289 | ) | | | 49,795,138 | | | | 1,235,997,473 | | |
Class B shares | |
Subscriptions | | | 37,690 | | | | 954,545 | | | | 29,835 | | | | 660,289 | | | | 40,478 | | | | 891,252 | | |
Fund merger | | | — | | | | — | | | | — | | | | — | | | | 3,263,755 | | | | 73,976,373 | | |
Redemptions(d) | | | (505,605 | ) | | | (13,331,889 | ) | | | (943,911 | ) | | | (21,142,995 | ) | | | (1,481,641 | ) | | | (32,997,626 | ) | |
Net increase (decrease) | | | (467,915 | ) | | | (12,377,344 | ) | | | (914,076 | ) | | | (20,482,706 | ) | | | 1,822,592 | | | | 41,869,999 | | |
Class C shares | |
Subscriptions | | | 484,937 | | | | 12,433,418 | | | | 225,432 | | | | 4,931,317 | | | | 123,630 | | | | 2,680,451 | | |
Fund merger | | | — | | | | — | | | | — | | | | — | | | | 1,277,699 | | | | 28,980,204 | | |
Redemptions | | | (308,877 | ) | | | (7,862,603 | ) | | | (465,444 | ) | | | (10,087,759 | ) | | | (309,429 | ) | | | (6,672,856 | ) | |
Net increase (decrease) | | | 176,060 | | | | 4,570,815 | | | | (240,012 | ) | | | (5,156,442 | ) | | | 1,091,900 | | | | 24,987,799 | | |
Class E shares | |
Subscriptions | | | 784 | | | | 21,520 | | | | 631 | | | | 14,828 | | | | 939 | | | | 22,476 | | |
Distributions reinvested | | | 573 | | | | 15,248 | | | | — | | | | — | | | | 619 | | | | 14,084 | | |
Redemptions | | | (49,897 | ) | | | (1,405,873 | ) | | | (42,545 | ) | | | (1,024,302 | ) | | | (56,363 | ) | | | (1,310,393 | ) | |
Net decrease | | | (48,540 | ) | | | (1,369,105 | ) | | | (41,914 | ) | | | (1,009,474 | ) | | | (54,805 | ) | | | (1,273,833 | ) | |
Class F shares | |
Subscriptions | | | 2,314 | | | | 60,100 | | | | 2,660 | | | | 60,100 | | | | 3,005 | | | | 65,250 | | |
Net increase | | | 2,314 | | | | 60,100 | | | | 2,660 | | | | 60,100 | | | | 3,005 | | | | 65,250 | | |
Class I shares | |
Subscriptions | | | 134,218 | | | | 3,681,806 | | | | 251,689 | | | | 6,255,459 | | | | 10,666,365 | | | | 242,247,523 | | |
Fund merger | | �� | — | | | | — | | | | — | | | | — | | | | 10,806,161 | | | | 273,675,545 | | |
Distributions reinvested | | | 49,406 | | | | 1,344,350 | | | | 56,613 | | | | 1,331,541 | | | | 37,702 | | | | 877,713 | | |
Redemptions | | | (1,055,617 | ) | | | (30,793,864 | ) | | | (5,633,011 | ) | | | (134,702,134 | ) | | | (8,430,803 | ) | | | (203,045,301 | ) | |
Net increase (decrease) | | | (871,993 | ) | | | (25,767,708 | ) | | | (5,324,709 | ) | | | (127,115,134 | ) | | | 13,079,425 | | | | 313,755,480 | | |
Class K shares(e) | |
Subscriptions | | | 1,303 | | | | 36,092 | | | | 252,102 | | | | 6,114,814 | | | | 255,555 | | | | 6,101,704 | | |
Fund merger | | | — | | | | — | | | | — | | | | — | | | | 2,096,295 | | | | 52,967,855 | | |
Distributions reinvested | | | 23 | | | | 630 | | | | 6,112 | | | | 143,821 | | | | — | | | | — | | |
Redemptions | | | (158,086 | ) | | | (4,468,117 | ) | | | (2,284,808 | ) | | | (60,118,917 | ) | | | (162,500 | ) | | | (3,959,051 | ) | |
Net increase (decrease) | | | (156,760 | ) | | | (4,431,395 | ) | | | (2,026,594 | ) | | | (53,860,282 | ) | | | 2,189,350 | | | | 55,110,508 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
18
Columbia Large Cap Growth Fund
Statement of Changes in Net Assets (continued)
| | | Year Ended July 31,
2013(a) | | Year Ended July 31,
2012(b) | | Year Ended September 30,
2011(c) | |
| | | Shares | | Dollars ($) | | Shares | | Dollars ($) | | Shares | | Dollars ($) | |
Capital stock activity (continued) | |
Class R shares | |
Subscriptions | | | 46,971 | | | | 1,324,547 | | | | 7,719 | | | | 184,854 | | | | 13,585 | | | | 323,017 | | |
Fund merger | | | — | | | | — | | | | — | | | | — | | | | 99,267 | | | | 2,457,836 | | |
Redemptions | | | (22,658 | ) | | | (641,584 | ) | | | (75,428 | ) | | | (1,782,086 | ) | | | (16,902 | ) | | | (411,371 | ) | |
Net increase (decrease) | | | 24,313 | | | | 682,963 | | | | (67,709 | ) | | | (1,597,232 | ) | | | 95,950 | | | | 2,369,482 | | |
Class R4 shares | |
Subscriptions | | | 1,023 | | | | 32,500 | | | | — | | | | — | | | | — | | | | — | | |
Net increase | | | 1,023 | | | | 32,500 | | | | — | | | | — | | | | — | | | | — | | |
Class R5 shares | |
Subscriptions | | | 4,849 | | | | 142,540 | | | | — | | | | — | | | | 101 | | | | 2,502 | | |
Fund merger | | | — | | | | — | | | | — | | | | — | | | | 18,952 | | | | 479,425 | | |
Distributions reinvested | | | 6 | | | | 156 | | | | 5 | | | | 127 | | | | — | | | | — | | |
Redemptions | | | (22,616 | ) | | | (643,352 | ) | | | (162 | ) | | | (3,924 | ) | | | — | | | | — | | |
Net increase (decrease) | | | (17,761 | ) | | | (500,656 | ) | | | (157 | ) | | | (3,797 | ) | | | 19,053 | | | | 481,927 | | |
Class T shares | |
Subscriptions | | | 40,994 | | | | 1,151,770 | | | | 34,752 | | | | 831,365 | | | | 64,181 | | | | 1,505,541 | | |
Distributions reinvested | | | 6,609 | | | | 174,938 | | | | — | | | | — | | | | 7,267 | | | | 164,449 | | |
Redemptions | | | (615,320 | ) | | | (17,152,625 | ) | | | (585,160 | ) | | | (14,067,972 | ) | | | (800,963 | ) | | | (18,656,781 | ) | |
Net decrease | | | (567,717 | ) | | | (15,825,917 | ) | | | (550,408 | ) | | | (13,236,607 | ) | | | (729,515 | ) | | | (16,986,791 | ) | |
Class W shares | |
Subscriptions | | | — | | | | — | | | | — | | | | — | | | | 7 | | | | 149 | | |
Redemptions | | | — | | | | — | | | | — | | | | — | | | | (7 | ) | | | (153 | ) | |
Net decrease | | | — | | | | — | | | | — | | | | — | | | | — | | | | (4 | ) | |
Class Y shares | |
Subscriptions | | | 6,683 | | | | 182,128 | | | | 9,284 | | | | 235,993 | | | | 6,003 | | | | 131,059 | | |
Distributions reinvested | | | — | | | | — | | | | 3 | | | | 73 | | | | 3 | | | | 71 | | |
Redemptions | | | (436,718 | ) | | | (12,423,891 | ) | | | (176,477 | ) | | | (4,397,670 | ) | | | (343,024 | ) | | | (8,075,378 | ) | |
Net decrease | | | (430,035 | ) | | | (12,241,763 | ) | | | (167,190 | ) | | | (4,161,604 | ) | | | (337,018 | ) | | | (7,944,248 | ) | |
Class Z shares | |
Subscriptions | | | 3,810,483 | | | | 109,525,927 | | | | 1,292,265 | | | | 31,910,875 | | | | 1,562,376 | | | | 37,620,290 | | |
Distributions reinvested | | | 77,634 | | | | 2,114,748 | | | | 47,428 | | | | 1,116,457 | | | | 92,637 | | | | 2,156,590 | | |
Redemptions | | | (5,318,433 | ) | | | (152,901,088 | ) | | | (5,406,923 | ) | | | (133,040,326 | ) | | | (10,365,849 | ) | | | (247,479,797 | ) | |
Net decrease | | | (1,430,316 | ) | | | (41,260,413 | ) | | | (4,067,230 | ) | | | (100,012,994 | ) | | | (8,710,836 | ) | | | (207,702,917 | ) | |
Total net increase (decrease) | | | (8,374,934 | ) | | | (236,627,866 | ) | | | (19,080,990 | ) | | | (463,576,461 | ) | | | 58,264,239 | | | | 1,440,730,125 | | |
(a) Class R4 shares are for the period from November 8, 2012 (commencement of operations) to July 31, 2013.
(b) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(c) Class K and Class R5 shares are for the period from March 7, 2011 (commencement of operations) to September 30, 2011.
(d) Includes conversions of Class B shares to Class A shares, if any.
(e) Effective October 25, 2012, Class R4 shares were renamed Class K shares.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
19
Columbia Large Cap Growth Fund
The following tables are 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, and is not annualized for periods of less than one year.
| | | Year Ended July 31, | | Year Ended September 30, | |
Class A | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 25.65 | | | $ | 20.84 | | | $ | 20.64 | | | $ | 18.77 | | | $ | 19.57 | | | $ | 26.76 | | |
Income from investment operations: | |
Net investment income (loss) | | | 0.11 | | | | 0.02 | | | | (0.01 | ) | | | 0.04 | | | | 0.07 | | | | 0.01 | | |
Net realized and unrealized gain (loss) | | | 5.55 | | | | 4.82 | | | | 0.25 | (b) | | | 1.92 | | | | (0.86 | ) | | | (5.40 | ) | |
Total from investment operations | | | 5.66 | | | | 4.84 | | | | 0.24 | | | | 1.96 | | | | (0.79 | ) | | | (5.39 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.06 | ) | | | (0.03 | ) | | | (0.04 | ) | | | (0.09 | ) | | | (0.02 | ) | | | — | | |
Net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | (0.06 | ) | | | (0.03 | ) | | | (0.04 | ) | | | (0.09 | ) | | | (0.02 | ) | | | (1.81 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | 0.00 | (c) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 31.25 | | | $ | 25.65 | | | $ | 20.84 | | | $ | 20.64 | | | $ | 18.77 | | | $ | 19.57 | | |
Total return | | | 22.09 | % | | | 23.22 | % | | | 1.16 | % | | | 10.48 | % | | | (3.97 | %) | | | (21.73 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 1.18 | % | | | 1.16 | %(f) | | | 1.15 | %(g) | | | 1.10 | %(g) | | | 1.13 | %(g) | | | 1.03 | % | |
Total net expenses(h) | | | 1.18 | %(i) | | | 1.16 | %(f)(i) | | | 1.14 | %(g)(j) | | | 1.10 | %(g)(i) | | | 1.13 | %(g)(i) | | | 1.02 | %(j) | |
Net investment income (loss) | | | 0.40 | % | | | 0.10 | %(f) | | | (0.06 | %) | | | 0.19 | % | | | 0.43 | % | | | 0.01 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 1,459,893 | | | $ | 1,316,211 | | | $ | 1,187,715 | | | $ | 148,455 | | | $ | 145,825 | | | $ | 156,585 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
20
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class B | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 23.32 | | | $ | 19.04 | | | $ | 18.97 | | | $ | 17.30 | | | $ | 18.15 | | | $ | 25.12 | | |
Income from investment operations: | |
Net investment loss | | | (0.09 | ) | | | (0.12 | ) | | | (0.18 | ) | | | (0.10 | ) | | | (0.04 | ) | | | (0.17 | ) | |
Net realized and unrealized gain (loss) | | | 5.02 | | | | 4.40 | | | | 0.25 | (b) | | | 1.77 | | | | (0.82 | ) | | | (5.00 | ) | |
Total from investment operations | | | 4.93 | | | | 4.28 | | | | 0.07 | | | | 1.67 | | | | (0.86 | ) | | | (5.17 | ) | |
Less distributions to shareholders: | |
Net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | 0.00 | (c) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 28.25 | | | $ | 23.32 | | | $ | 19.04 | | | $ | 18.97 | | | $ | 17.30 | | | $ | 18.15 | | |
Total return | | | 21.14 | % | | | 22.48 | % | | | 0.37 | % | | | 9.65 | % | | | (4.68 | %) | | | (22.31 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 1.93 | % | | | 1.91 | %(f) | | | 1.90 | %(g) | | | 1.85 | %(g) | | | 1.88 | %(g) | | | 1.78 | % | |
Total net expenses(h) | | | 1.93 | %(i) | | | 1.91 | %(f)(i) | | | 1.89 | %(g)(j) | | | 1.85 | %(g)(i) | | | 1.88 | %(g)(i) | | | 1.77 | %(j) | |
Net investment loss | | | (0.34 | %) | | | (0.64 | %)(f) | | | (0.82 | %) | | | (0.56 | %) | | | (0.30 | %) | | | (0.77 | %) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 34,085 | | | $ | 39,046 | | | $ | 49,290 | | | $ | 14,527 | | | $ | 24,951 | | | $ | 58,609 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
21
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class C | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 23.34 | | | $ | 19.06 | | | $ | 18.98 | | | $ | 17.31 | | | $ | 18.16 | | | $ | 25.14 | | |
Income from investment operations: | |
Net investment loss | | | (0.09 | ) | | | (0.12 | ) | | | (0.17 | ) | | | (0.10 | ) | | | (0.05 | ) | | | (0.16 | ) | |
Net realized and unrealized gain (loss) | | | 5.02 | | | | 4.40 | | | | 0.25 | (b) | | | 1.77 | | | | (0.81 | ) | | | (5.02 | ) | |
Total from investment operations | | | 4.93 | | | | 4.28 | | | | 0.08 | | | | 1.67 | | | | (0.86 | ) | | | (5.18 | ) | |
Less distributions to shareholders: | |
Net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | 0.00 | (c) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 28.27 | | | $ | 23.34 | | | $ | 19.06 | | | $ | 18.98 | | | $ | 17.31 | | | $ | 18.16 | | |
Total return | | | 21.12 | % | | | 22.46 | % | | | 0.42 | % | | | 9.65 | % | | | (4.68 | %) | | | (22.33 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 1.93 | % | | | 1.91 | %(f) | | | 1.88 | %(g) | | | 1.85 | %(g) | | | 1.88 | %(g) | | | 1.78 | % | |
Total net expenses(h) | | | 1.93 | %(i) | | | 1.91 | %(f)(i) | | | 1.87 | %(g)(j) | | | 1.85 | %(g)(i) | | | 1.88 | %(g)(i) | | | 1.77 | %(j) | |
Net investment loss | | | (0.36 | %) | | | (0.65 | %)(f) | | | (0.77 | %) | | | (0.55 | %) | | | (0.33 | %) | | | (0.75 | %) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 52,885 | | | $ | 39,542 | | | $ | 36,860 | | | $ | 15,990 | | | $ | 17,283 | | | $ | 21,208 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
22
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class E | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 25.61 | | | $ | 20.80 | | | $ | 20.60 | | | $ | 18.73 | | | $ | 19.53 | | | $ | 26.74 | | |
Income from investment operations: | |
Net investment income (loss) | | | 0.08 | | | | (0.00 | )(b) | | | (0.02 | ) | | | 0.02 | | | | 0.05 | | | | (0.02 | ) | |
Net realized and unrealized gain (loss) | | | 5.53 | | | | 4.81 | | | | 0.24 | (c) | | | 1.93 | | | | (0.86 | ) | | | (5.39 | ) | |
Total from investment operations | | | 5.61 | | | | 4.81 | | | | 0.22 | | | | 1.95 | | | | (0.81 | ) | | | (5.41 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.03 | ) | | | — | | | | (0.02 | ) | | | (0.08 | ) | | | (0.00 | )(b) | | | — | | |
Net realized gains | | | — | | | | ��� | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | (0.03 | ) | | | — | | | | (0.02 | ) | | | (0.08 | ) | | | (0.00 | )(b) | | | (1.81 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (b) | | | — | | | | 0.00 | (b) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 31.19 | | | $ | 25.61 | | | $ | 20.80 | | | $ | 20.60 | | | $ | 18.73 | | | $ | 19.53 | | |
Total return | | | 21.93 | % | | | 23.13 | % | | | 1.07 | % | | | 10.41 | % | | | (4.09 | %) | | | (21.82 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 1.28 | % | | | 1.26 | %(f) | | | 1.20 | %(g) | | | 1.20 | %(g) | | | 1.23 | %(g) | | | 1.13 | % | |
Total net expenses(h) | | | 1.28 | %(i) | | | 1.26 | %(f)(i) | | | 1.19 | %(g)(j) | | | 1.20 | %(g)(i) | | | 1.23 | %(g)(i) | | | 1.12 | %(j) | |
Net investment income (loss) | | | 0.30 | % | | | (0.00 | %)(b)(f) | | | (0.08 | %) | | | 0.10 | % | | | 0.33 | % | | | (0.09 | %) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 14,853 | | | $ | 13,437 | | | $ | 11,784 | | | $ | 12,800 | | | $ | 13,144 | | | $ | 14,782 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Rounds to zero.
(c) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
23
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class F | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 23.32 | | | $ | 19.04 | | | $ | 18.96 | | | $ | 17.29 | | | $ | 18.14 | | | $ | 25.11 | | |
Income from investment operations: | |
Net investment loss | | | (0.09 | ) | | | (0.12 | ) | | | (0.16 | ) | | | (0.10 | ) | | | (0.05 | ) | | | (0.18 | ) | |
Net realized and unrealized gain (loss) | | | 5.02 | | | | 4.40 | | | | 0.24 | (b) | | | 1.77 | | | | (0.81 | ) | | | (4.99 | ) | |
Total from investment operations | | | 4.93 | | | | 4.28 | | | | 0.08 | | | | 1.67 | | | | (0.86 | ) | | | (5.17 | ) | |
Less distributions to shareholders: | |
Net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | 0.00 | (c) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 28.25 | | | $ | 23.32 | | | $ | 19.04 | | | $ | 18.96 | | | $ | 17.29 | | | $ | 18.14 | | |
Total return | | | 21.14 | % | | | 22.48 | % | | | 0.42 | % | | | 9.66 | % | | | (4.69 | %) | | | (22.31 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 1.93 | % | | | 1.91 | %(f) | | | 1.85 | %(g) | | | 1.85 | %(g) | | | 1.88 | %(g) | | | 1.78 | % | |
Total net expenses(h) | | | 1.93 | %(i) | | | 1.91 | %(f)(i) | | | 1.84 | %(g)(j) | | | 1.85 | %(g)(i) | | | 1.88 | %(g)(i) | | | 1.77 | %(j) | |
Net investment loss | | | (0.36 | %) | | | (0.65 | %)(f) | | | (0.73 | %) | | | (0.55 | %) | | | (0.32 | %) | | | (0.80 | %) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 859 | | | $ | 655 | | | $ | 484 | | | $ | 425 | | | $ | 292 | | | $ | 380 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
24
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class I | | 2013 | | 2012(a) | | 2011 | | 2010(b) | |
Per share data | |
Net asset value, beginning of period | | $ | 26.29 | | | $ | 21.37 | | | $ | 21.14 | | | $ | 21.18 | | |
Income from investment operations: | |
Net investment income | | | 0.25 | | | | 0.11 | | | | 0.11 | | | | 0.00 | (c) | |
Net realized and unrealized gain (loss) | | | 5.66 | | | | 4.94 | | | | 0.24 | (d) | | | (0.04 | ) | |
Total from investment operations | | | 5.91 | | | | 5.05 | | | | 0.35 | | | | (0.04 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.18 | ) | | | (0.13 | ) | | | (0.12 | ) | | | — | | |
Total distributions to shareholders | | | (0.18 | ) | | | (0.13 | ) | | | (0.12 | ) | | | — | | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | — | | |
Net asset value, end of period | | $ | 32.02 | | | $ | 26.29 | | | $ | 21.37 | | | $ | 21.14 | | |
Total return | | | 22.60 | % | | | 23.71 | % | | | 1.61 | % | | | (0.19 | %) | |
Ratios to average net assets(e)(f) | |
Total gross expenses | | | 0.71 | % | | | 0.72 | %(g) | | | 0.68 | %(h) | | | 0.60 | %(g) | |
Total net expenses(i) | | | 0.71 | % | | | 0.72 | %(g) | | | 0.68 | %(h)(j) | | | 0.60 | %(g)(j) | |
Net investment income | | | 0.87 | % | | | 0.54 | %(g) | | | 0.46 | % | | | 1.89 | %(g) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 220,421 | | | $ | 203,848 | | | $ | 279,510 | | | $ | 2 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) For the period from September 27, 2010 (commencement of operations) to September 30, 2010.
(c) Rounds to zero.
(d) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(f) Certain line items from prior years have been reclassified to conform to the current presentation.
(g) Annualized.
(h) Ratios include line of credit interest expense which rounds to less than 0.01%.
(i) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(j) 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.
Annual Report 2013
25
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended
September 30, | |
Class K(a) | | 2013 | | 2012(b) | | 2011(c) | |
Per share data | |
Net asset value, beginning of period | | $ | 26.24 | | | $ | 21.33 | | | $ | 24.86 | | |
Income from investment operations: | |
Net investment income | | | 0.18 | | | | 0.08 | | | | 0.02 | | |
Net realized and unrealized gain (loss) | | | 5.64 | | | | 4.90 | | | | (3.55 | ) | |
Total from investment operations | | | 5.82 | | | | 4.98 | | | | (3.53 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.12 | ) | | | (0.07 | ) | | | — | | |
Total distributions to shareholders | | | (0.12 | ) | | | (0.07 | ) | | | — | | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (d) | | | — | | |
Net asset value, end of period | | $ | 31.94 | | | $ | 26.24 | | | $ | 21.33 | | |
Total return | | | 22.25 | % | | | 23.38 | % | | | (14.20 | %) | |
Ratios to average net assets(e)(f) | |
Total gross expenses | | | 0.96 | % | | | 0.97 | %(g) | | | 0.95 | %(g)(h) | |
Total net expenses(i) | | | 0.96 | % | | | 0.97 | %(g) | | | 0.95 | %(g)(h)(j) | |
Net investment income | | | 0.64 | % | | | 0.40 | %(g) | | | 0.12 | %(g) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 191 | | | $ | 4,270 | | | $ | 46,696 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | |
Notes to Financial Highlights
(a) Effective October 25, 2012, Class R4 shares were renamed Class K shares.
(b) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(c) For the period from March 7, 2011 (commencement of operations) to September 30, 2011.
(d) Rounds to zero.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(f) Certain line items from prior years have been reclassified to conform to the current presentation.
(g) Annualized.
(h) Ratios include line of credit interest expense which rounds to less than 0.01%.
(i) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(j) 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.
Annual Report 2013
26
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class R | | 2013 | | 2012(a) | | 2011 | | 2010(b) | |
Per share data | |
Net asset value, beginning of period | | $ | 25.61 | | | $ | 20.83 | | | $ | 20.64 | | | $ | 20.68 | | |
Income from investment operations: | |
Net investment income (loss) | | | 0.05 | | | | (0.01 | ) | | | (0.07 | ) | | | 0.00 | (c) | |
Net realized and unrealized gain (loss) | | | 5.52 | | | | 4.79 | | | | 0.26 | (d) | | | (0.04 | ) | |
Total from investment operations | | | 5.57 | | | | 4.78 | | | | 0.19 | | | | (0.04 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | — | | |
Net asset value, end of period | | $ | 31.18 | | | $ | 25.61 | | | $ | 20.83 | | | $ | 20.64 | | |
Total return | | | 21.75 | % | | | 22.95 | % | | | 0.92 | % | | | (0.19 | %) | |
Ratios to average net assets(e)(f) | |
Total gross expenses | | | 1.43 | % | | | 1.40 | %(g) | | | 1.41 | %(h) | | | 1.21 | %(g) | |
Total net expenses(i) | | | 1.43 | %(j) | | | 1.40 | %(g)(j) | | | 1.40 | %(h)(k) | | | 1.21 | %(g)(j) | |
Net investment income (loss) | | | 0.17 | % | | | (0.07 | %)(g) | | | (0.32 | %) | | | 1.28 | %(g) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 1,643 | | | $ | 726 | | | $ | 2,002 | | | $ | 2 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) For the period from September 27, 2010 (commencement of operations) to September 30, 2010.
(c) Rounds to zero.
(d) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(f) Certain line items from prior years have been reclassified to conform to the current presentation.
(g) Annualized.
(h) Ratios include line of credit interest expense which rounds to less than 0.01%.
(i) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(j) The benefits derived from expense reductions had an impact of less than 0.01%.
(k) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
27
Columbia Large Cap Growth Fund
Financial Highlights (continued)
Class R4 | | Year Ended
July 31,
2013(a) | |
Per share data | |
Net asset value, beginning of period | | $ | 26.79 | | |
Income from investment operations: | |
Net investment income | | | 0.11 | | |
Net realized and unrealized gain | | | 5.69 | | |
Total from investment operations | | | 5.80 | | |
Less distributions to shareholders: | |
Net investment income | | | (0.11 | ) | |
Total distributions to shareholders | | | (0.11 | ) | |
Net asset value, end of period | | $ | 32.48 | | |
Total return | | | 21.70 | % | |
Ratios to average net assets(b) | |
Total gross expenses | | | 0.93 | %(c) | |
Total net expenses(d) | | | 0.93 | %(c)(e) | |
Net investment income | | | 0.49 | %(c) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 33 | | |
Portfolio turnover | | | 104 | % | |
Notes to Financial Highlights
(a) For the period from November 8, 2012 (commencement of operations) to July 31, 2013.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(e) 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.
Annual Report 2013
28
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended
September 30, | |
Class R5 | | 2013 | | 2012(a) | | 2011(b) | |
Per share data | |
Net asset value, beginning of period | | $ | 26.28 | | | $ | 21.36 | | | $ | 24.86 | | |
Income from investment operations: | |
Net investment income | | | 0.26 | | | | 0.11 | | | | 0.05 | | |
Net realized and unrealized gain (loss) | | | 5.64 | | | | 4.94 | | | | (3.55 | ) | |
Total from investment operations | | | 5.90 | | | | 5.05 | | | | (3.50 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.18 | ) | | | (0.13 | ) | | | — | | |
Total distributions to shareholders | | | (0.18 | ) | | | (0.13 | ) | | | — | | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | |
Net asset value, end of period | | $ | 32.00 | | | $ | 26.28 | | | $ | 21.36 | | |
Total return | | | 22.59 | % | | | 23.70 | % | | | (14.08 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 0.72 | % | | | 0.73 | %(f) | | | 0.70 | %(f)(g) | |
Total net expenses(h) | | | 0.72 | % | | | 0.73 | %(f) | | | 0.70 | %(f)(g)(i) | |
Net investment income | | | 0.89 | % | | | 0.53 | %(f) | | | 0.37 | %(f) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 36 | | | $ | 497 | | | $ | 407 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) For the period from March 7, 2011 (commencement of operations) to September 30, 2011.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) 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.
Annual Report 2013
29
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class T | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 25.49 | | | $ | 20.69 | | | $ | 20.49 | | | $ | 18.64 | | | $ | 19.42 | | | $ | 26.58 | | |
Income from investment operations: | |
Net investment income (loss) | | | 0.10 | | | | 0.01 | | | | (0.01 | ) | | | 0.03 | | | | 0.06 | | | | (0.01 | ) | |
Net realized and unrealized gain (loss) | | | 5.50 | | | | 4.79 | | | | 0.24 | (b) | | | 1.90 | | | | (0.85 | ) | | | (5.35 | ) | |
Total from investment operations | | | 5.60 | | | | 4.80 | | | | 0.23 | | | | 1.93 | | | | (0.79 | ) | | | (5.36 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.04 | ) | | | — | | | | (0.03 | ) | | | (0.08 | ) | | | — | | | | — | | |
Net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | (0.04 | ) | | | — | | | | (0.03 | ) | | | (0.08 | ) | | | — | | | | (1.81 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | 0.00 | (c) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 31.05 | | | $ | 25.49 | | | $ | 20.69 | | | $ | 20.49 | | | $ | 18.64 | | | $ | 19.42 | | |
Total return | | | 22.01 | % | | | 23.20 | % | | | 1.12 | % | | | 10.40 | % | | | (4.02 | %) | | | (21.76 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 1.23 | % | | | 1.21 | %(f) | | | 1.15 | %(g) | | | 1.15 | %(g) | | | 1.18 | %(g) | | | 1.08 | % | |
Total net expenses(h) | | | 1.23 | %(i) | | | 1.21 | %(f)(i) | | | 1.14 | %(g)(j) | | | 1.15 | %(g)(i) | | | 1.18 | %(g)(i) | | | 1.07 | %(j) | |
Net investment income | | | 0.35 | % | | | 0.05 | %(f) | | | (0.03 | %) | | | 0.15 | % | | | 0.38 | % | | | (0.05 | %) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 160,462 | | | $ | 146,207 | | | $ | 130,081 | | | $ | 143,784 | | | $ | 145,011 | | | $ | 169,295 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
30
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class W | | 2013 | | 2012(a) | | 2011 | | 2010(b) | |
Per share data | |
Net asset value, beginning of period | | $ | 25.66 | | | $ | 20.85 | | | $ | 20.64 | | | $ | 20.68 | | |
Income from investment operations: | |
Net investment income | | | 0.12 | | | | 0.01 | | | | 0.02 | | | | 0.00 | (c) | |
Net realized and unrealized gain (loss) | | | 5.54 | | | | 4.82 | | | | 0.23 | (d) | | | (0.04 | ) | |
Total from investment operations | | | 5.66 | | | | 4.83 | | | | 0.25 | | | | (0.04 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.06 | ) | | | (0.02 | ) | | | (0.04 | ) | | | — | | |
Total distributions to shareholders | | | (0.06 | ) | | | (0.02 | ) | | | (0.04 | ) | | | — | | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | — | | |
Net asset value, end of period | | $ | 31.26 | | | $ | 25.66 | | | $ | 20.85 | | | $ | 20.64 | | |
Total return | | | 22.12 | % | | | 23.19 | % | | | 1.21 | % | | | (0.19 | %) | |
Ratios to average net assets(e)(f) | |
Total gross expenses | | | 1.14 | % | | | 1.19 | %(g) | | | 1.05 | %(h) | | | 0.96 | %(g) | |
Total net expenses(i) | | | 1.14 | %(j) | | | 1.19 | %(g)(j) | | | 1.04 | %(h)(k) | | | 0.96 | %(g)(j) | |
Net investment income | | | 0.43 | % | | | 0.07 | %(g) | | | 0.07 | % | | | 1.52 | %(g) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 4 | | | $ | 3 | | | $ | 3 | | | $ | 2 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) For the period from September 27, 2010 (commencement of operations) to September 30, 2010.
(c) Rounds to zero.
(d) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(f) Certain line items from prior years have been reclassified to conform to the current presentation.
(g) Annualized.
(h) Ratios include line of credit interest expense which rounds to less than 0.01%.
(i) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(j) The benefits derived from expense reductions had an impact of less than 0.01%.
(k) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
31
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class Y | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009(b) | |
Per share data | |
Net asset value, beginning of period | | $ | 26.29 | | | $ | 21.36 | | | $ | 21.14 | | | $ | 19.20 | | | $ | 17.02 | | |
Income from investment operations: | |
Net investment income | | | 0.25 | | | | 0.11 | | | | 0.11 | | | | 0.13 | | | | 0.03 | | |
Net realized and unrealized gain | | | 5.67 | | | | 4.94 | | | | 0.23 | (c) | | | 1.97 | | | | 2.15 | | |
Total from investment operations | | | 5.92 | | | | 5.05 | | | | 0.34 | | | | 2.10 | | | | 2.18 | | |
Less distributions to shareholders: | |
Net investment income | | | (0.18 | ) | | | (0.12 | ) | | | (0.12 | ) | | | (0.16 | ) | | | — | | |
Total distributions to shareholders | | | (0.18 | ) | | | (0.12 | ) | | | (0.12 | ) | | | (0.16 | ) | | | — | | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (d) | | | — | | | | 0.00 | (d) | | | — | | |
Net asset value, end of period | | $ | 32.03 | | | $ | 26.29 | | | $ | 21.36 | | | $ | 21.14 | | | $ | 19.20 | | |
Total return | | | 22.64 | % | | | 23.72 | % | | | 1.56 | % | | | 11.01 | % | | | 12.81 | % | |
Ratios to average net assets(e)(f) | |
Total gross expenses | | | 0.71 | % | | | 0.72 | %(g) | | | 0.67 | %(h) | | | 0.64 | %(h) | | | 0.63 | %(g)(h) | |
Total net expenses(i) | | | 0.71 | % | | | 0.72 | %(g) | | | 0.67 | %(h)(j) | | | 0.64 | %(h)(j) | | | 0.63 | %(g)(h)(j) | |
Net investment income | | | 0.90 | % | | | 0.55 | %(g) | | | 0.48 | % | | | 0.66 | % | | | 0.78 | %(g) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 3,826 | | | $ | 14,446 | | | $ | 15,311 | | | $ | 22,272 | | | $ | 16,686 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) For the period from July 15, 2009 (commencement of operations) to September 30, 2009.
(c) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(d) Rounds to zero.
(e) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(f) Certain line items from prior years have been reclassified to conform to the current presentation.
(g) Annualized.
(h) Ratios include line of credit interest expense which rounds to less than 0.01%.
(i) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(j) 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.
Annual Report 2013
32
Columbia Large Cap Growth Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended September 30, | |
Class Z | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 26.28 | | | $ | 21.33 | | | $ | 21.12 | | | $ | 19.20 | | | $ | 20.02 | | | $ | 27.32 | | |
Income from investment operations: | |
Net investment income | | | 0.19 | | | | 0.07 | | | | 0.07 | | | | 0.09 | | | | 0.11 | | | | 0.06 | | |
Net realized and unrealized gain (loss) | | | 5.66 | | | | 4.94 | | | | 0.24 | (b) | | | 1.96 | | | | (0.88 | ) | | | (5.51 | ) | |
Total from investment operations | | | 5.85 | | | | 5.01 | | | | 0.31 | | | | 2.05 | | | | (0.77 | ) | | | (5.45 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.12 | ) | | | (0.06 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.06 | ) | | | (0.05 | ) | |
Net realized gains | | | — | | | | — | | | | — | | | | — | | | | — | | | | (1.81 | ) | |
Total distributions to shareholders | | | (0.12 | ) | | | (0.06 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.06 | ) | | | (1.86 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (c) | | | — | | | | 0.00 | (c) | | | 0.01 | | | | 0.01 | | |
Net asset value, end of period | | $ | 32.01 | | | $ | 26.28 | | | $ | 21.33 | | | $ | 21.12 | | | $ | 19.20 | | | $ | 20.02 | | |
Total return | | | 22.34 | % | | | 23.52 | % | | | 1.41 | % | | | 10.74 | % | | | (3.71 | %) | | | (21.55 | %) | |
Ratios to average net assets(d)(e) | |
Total gross expenses | | | 0.93 | % | | | 0.91 | %(f) | | | 0.85 | %(g) | | | 0.85 | %(g) | | | 0.88 | %(g) | | | 0.78 | % | |
Total net expenses(h) | | | 0.93 | %(i) | | | 0.91 | %(f)(i) | | | 0.84 | %(g)(j) | | | 0.85 | %(g)(i) | | | 0.88 | %(g)(i) | | | 0.77 | %(j) | |
Net investment income | | | 0.65 | % | | | 0.35 | %(f) | | | 0.28 | % | | | 0.45 | % | | | 0.67 | % | | | 0.25 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 850,041 | | | $ | 735,315 | | | $ | 683,738 | | | $ | 860,959 | | | $ | 940,823 | | | $ | 979,353 | | |
Portfolio turnover | | | 104 | % | | | 80 | % | | | 116 | % | | | 122 | % | | | 146 | % | | | 164 | % | |
Notes to Financial Highlights
(a) For the period from October 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from September 30 to July 31.
(b) Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of sales and repurchases of Fund shares in relation to fluctuations in the market value of the portfolio.
(c) Rounds to zero.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(e) Certain line items from prior years have been reclassified to conform to the current presentation.
(f) Annualized.
(g) Ratios include line of credit interest expense which rounds to less than 0.01%.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) The benefits derived from expense reductions had an impact of less than 0.01%.
(j) The benefits derived from expense reductions had an impact of 0.01%.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
33
Columbia Large Cap Growth Fund
Notes to Financial Statements
July 31, 2013
Note 1. Organization
Columbia Large Cap Growth Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund Shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers Class A, Class B, Class C, Class E, Class F, Class I, Class K, Class R, Class R4, Class R5, Class T, Class W, Class Y and Class Z shares. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by law. Different share classes pay different distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense structure and sales charges, as applicable.
Class A shares are subject to a maximum front-end sales charge of 5.75% based on the initial investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a contingent deferred sales charge (CDSC) if the shares are sold within 18 months of purchase, charged as follows: 1.00% CDSC if redeemed within 12 months of purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase.
Class B shares may be subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will generally convert to Class A shares eight years after purchase. The Fund no longer accepts investments by new or existing investors in the Fund's Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of the Fund and exchanges by existing Class B shareholders of certain other funds within the Columbia Family of Funds.
Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.
Class E shares are trust shares which are held in an irrevocable trust until the specified trust termination date. Class E shares are subject to a maximum front-end sales charge of 4.50% based on the investment amount. Class E shares purchased without an initial sales charge in accounts aggregating $1 million to $5 million at the time of purchase are subject to a 1.00% CDSC if the shares are sold within one year after purchase. Class E shares are closed to new investors and new accounts.
Class F shares are trust shares which are held in an irrevocable trust until the specified trust termination date. Class F shares are subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class F shares will generally convert to Class E shares eight years after purchase. Class F shares are closed to new investors and new accounts.
Class I shares are not subject to sales charges and are available only to the Columbia Family of Funds.
Class K shares (formerly Class R4 shares) are not subject to sales charges; however, this share class is closed to new investors. Effective October 25, 2012, Class R4 shares were renamed Class K shares.
Class R shares are not subject to sales charges and are generally available only to certain retirement plans and other eligible investors.
Class R4 shares are not subject to sales charges and are generally available only to omnibus retirement plans and certain other eligible investors. Class R4 shares commenced operations on November 8, 2012.
Class R5 shares are not subject to sales charges. Effective November 8, 2012, Class R5 shares are generally available only to investors purchasing through authorized investment professionals and omnibus retirement plans. Prior to November 8, 2012, Class R5 shares were closed to new investors.
Class T shares are subject to a maximum front-end sales charge of 5.75% based on the investment amount. Class T shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a CDSC if the shares are sold within 18 months of purchase, charged as follows: 1.00% CDSC if redeemed within 12 months of purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase. Class T shares are available only to investors who received (and who have continuously held) Class T shares in connection with the merger of certain Galaxy Funds into various Columbia Funds (formerly named Liberty Funds).
Class W shares are not subject to sales charges and are available only to investors purchasing through authorized investment programs managed by investment professionals, including discretionary managed account programs.
Class Y shares are not subject to sales charges and are generally available only to certain retirement plans.
Class Z shares are not subject to sales charges and are available only to certain eligible investors, which are subject to different investment minimums.
Annual Report 2013
34
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
Note 2. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements.
Security Valuation
All equity securities are valued at the close of business of the New York Stock Exchange (NYSE). Equity securities are valued at the last quoted sales price on the principal exchange or market on which they trade, except for securities traded on the NASDAQ Stock Market, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets.
Foreign equity securities are valued based on quotations from the principal market in which such securities are normally traded. If any foreign share prices are not readily available as a result of limited share activity the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are generally determined at 4:00 p.m. Eastern (U.S.) time. However, many securities markets and exchanges outside the U.S. close prior to the close of the NYSE; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE. In those situations, foreign securities will be fair valued pursuant to the policy adopted by the Board of Trustees (the Board), including utilizing a third party pricing service to determine these fair values. The third party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the NYSE. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment companies, including money market funds, are valued at net asset value.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board. 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 last quoted market price for the security.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
Foreign Currency Transactions and Translations
The values of all assets and liabilities denominated in foreign currencies are translated into U.S. dollars at that day's exchange rates. Net realized and unrealized gains (losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Security Transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income Recognition
Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions from holdings in business development companies (BDCs), exchange traded funds (ETFs) and real estate investment trusts (REITs), which report information on the character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on estimates made by the
Annual Report 2013
35
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
Fund's management if actual information has not yet been 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. Management's estimates are subsequently adjusted when the actual character of the distributions is disclosed by the BDCs, ETFs and REITs, which could result in a proportionate change in return of capital to shareholders.
Awards from class action litigation are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities, the proceeds are recorded as realized gains.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of Class Net Asset Value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal Income Tax Status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income (including net short-term capital gains), 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 net investment income, capital gains 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.
Foreign Taxes
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund
accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to Shareholders
Distributions from net investment income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed along with the income distribution. 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.
Recent Accounting Pronouncement
Disclosures about Offsetting Assets and Liabilities
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11, Disclosures about Offsetting Assets and Liabilities and in January 2013, ASU No. 2013-1, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (collectively, the ASUs). Specifically, the ASUs require an entity to disclose both gross and net information for derivatives and other financial instruments that are subject to a master netting arrangement or similar agreement. The ASUs require disclosure of collateral received in connection with the master netting agreements or similar agreements. The disclosure requirements are effective for interim and annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Note 3. Fees and Compensation Paid to Affiliates
Investment Management Fees
Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), determines
Annual Report 2013
36
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
which securities will be purchased, held or sold. The investment management fee is an annual fee that is equal to a percentage of the Fund's average daily net assets that declines from 0.71% to 0.54% as the Fund's net assets increase. The effective investment management fee rate for the year ended July 31, 2013 was 0.62% of the Fund's average daily net assets.
Administration Fees
Under an Administrative Services Agreement, the Investment Manager also serves as the Fund Administrator. The Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a percentage of the Fund's average daily net assets that declines from 0.06% to 0.03% as the Fund's net assets increase. The effective administration fee rate for the year ended July 31, 2013 was 0.05% of the Fund's average daily net assets.
Compensation of Board Members
Board members are compensated for their services to the Fund as disclosed in the Statement of Operations. The Trust's eligible Trustees may participate in a Deferred Compensation Plan (the Plan) which may be terminated at any time. Obligations of the Plan will be paid solely out of the Fund's assets.
Compensation of Chief Compliance Officer
The Board has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund pays its pro-rata share of the expenses associated with the Chief Compliance Officer. The Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.
Transfer Agent 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 Boston Financial Data Services (BFDS) to serve as sub-transfer agent.
The Transfer Agent receives monthly account-based service fees based on the number of open accounts and also receives sub-transfer agency fees based on a percentage of the average aggregate value of the Fund's shares maintained in omnibus accounts (other than omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are paid a per account fee). The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to
reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Transfer Agent also receives compensation from fees for various shareholder services and reimbursements for certain out-of-pocket fees. Class I shares do not pay transfer agent fees. Total transfer agent fees for Class K and Class R5 shares are subject to an annual limitation of not more than 0.05% of the average daily net assets attributable to each share class. Beginning November 1, 2012, Class Y shares are not subject to transfer agent fees for at least twelve months.
For the year ended July 31, 2013, the Fund's effective transfer agent fee rates as a percentage of average daily net assets of each class were as follows:
Class A | | | 0.22 | % | |
Class B | | | 0.22 | | |
Class C | | | 0.22 | | |
Class E | | | 0.22 | | |
Class F | | | 0.22 | | |
Class K | | | 0.01 | | |
Class R | | | 0.22 | | |
Class R4(a) | | | 0.24 | | |
Class R5 | | | 0.03 | | |
Class T | | | 0.22 | | |
Class W | | | 0.21 | | |
Class Y | | | 0.00 | (b) | |
Class Z | | | 0.22 | | |
(a) Annualized.
(b) Rounds to zero
The Fund and certain other associated investment companies, have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), the former transfer agent, including the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At July 31, 2013, the Fund's total potential future obligation over the life of the Guaranty is $232,698. The liability remaining at July 31, 2013 for non-recurring charges associated with the lease amounted to $114,833 and is recorded as a part of the payable for other expenses in the Statement of Assets and Liabilities. SDC is owned by six associated investment companies, including the Fund. The Fund's ownership interest in SDC at July 31, 2013 is recorded as a part of other assets in the Statement of Assets and Liabilities at a cost of $43,170.
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class' initial minimum investment requirements to reduce the impact of small accounts on transfer agent fees. These minimum
Annual Report 2013
37
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
account balance fees are recorded as part of expense reductions in the Statement of Operations. For the year ended July 31, 2013, these minimum account balance fees reduced total expenses by $77,460.
Plan Administration Fees
Under a Plan Administration Services Agreement with the Transfer Agent, the Fund pays an annual fee at a rate of 0.25% of the Fund's average daily net assets attributable to Class K shares for the provision of various administrative, recordkeeping, communication and educational services.
Distribution and Service Fees
The Fund has 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. Pursuant to Rule 12b-1 under the 1940 Act, the Board has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) 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.
The Plans require the payment of a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A, Class B, Class C, Class E, Class F and Class W shares of the Fund. The Plans also require the payment of a monthly distribution fee to the Distributor at the maximum annual rates of 0.10%, 0.75%, 0.75%, 0.10%, 0.75%, 0.50% and 0.25% of the average daily net assets attributable to Class A, Class B, Class C, Class E, Class F, Class R and Class W shares, respectively.
The Fund may pay distribution and service fees up to a maximum annual rate of 0.35% of the Fund's average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for shareholder liaison services), but currently limit such fees to an aggregate fee of not more than 0.25% of the Fund's average daily net assets attributable to Class A shares.
The Fund may pay a distribution fee up to 0.25% of the Fund's average daily net assets attributable to Class W shares and a service fee of up to 0.25% of the Fund's average daily net assets attributable to Class W shares, provided, however, that the aggregate fee shall not exceed 0.25% of the Fund's average daily net assets attributable to Class W shares.
Shareholder Services Fees
The Fund has adopted a shareholder services plan that permits it to pay for certain services provided to Class T shareholders by their selling and/or servicing agents. The Fund may pay
shareholder servicing fees up to an aggregate annual rate of 0.50% of the Fund's average daily net assets attributable to Class T shares (comprised of up to 0.25% for shareholder liaison services and up to 0.25% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.30% of the Fund's average daily net assets attributable to Class T shares. The annualized effective shareholder services fee rate for the year ended July 31, 2013 was 0.30% of the Fund's average daily net assets attributable to Class T shares.
Sales Charges
Sales charges, including front-end charges and CDSCs, received by the Distributor for distributing Fund shares were $754,574 for Class A, $12,994 for Class B, $3,235 for Class C, $442 for Class E and $26,110 for Class T shares for the year ended July 31, 2013.
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 periods disclosed below, unless sooner terminated at the sole discretion of the Board, 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 rates as a percentage of the class' average daily net assets:
| | | February 1, 2013
through
November 30, 2013 | | Prior to
February 1, 2013 | |
Class A | | | 1.25 | % | | | 1.25 | % | |
Class B | | | 2.00 | | | | 2.00 | | |
Class C | | | 2.00 | | | | 2.00 | | |
Class E | | | 1.35 | | | | 1.35 | | |
Class F | | | 2.00 | | | | 2.00 | | |
Class I | | | 0.83 | | | | 0.85 | | |
Class K | | | 1.13 | | | | 1.15 | | |
Class R | | | 1.50 | | | | 1.50 | | |
Class R4* | | | 1.00 | | | | 1.00 | | |
Class R5 | | | 0.88 | | | | 0.90 | | |
Class T | | | 1.30 | | | | 1.30 | | |
Class W | | | 1.25 | | | | 1.25 | | |
Class Y | | | 0.83 | | | | 1.00 | | |
Class Z | | | 1.00 | | | | 1.00 | | |
*Annual rate is contractual from November 8, 2012 (commencement of operations of Class R4) through November 30, 2013.
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and
Annual Report 2013
38
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
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, extraordinary expenses and any other expenses the exclusion of which is specifically approved by the Board. This agreement may be modified or amended only with approval from all parties.
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 July 31, 2013, these differences are primarily due to differing treatment for capital loss carryforwards, foreign currency transactions, deferral/reversal of wash sales losses and Trustees' deferred compensation. To the extent these differences are permanent, reclassifications are made among the components of the Fund's net assets in the Statement of Assets and Liabilities. Temporary differences do not require reclassifications. In the Statement of Assets and Liabilities the following reclassifications were made:
Undistributed net investment income | | $ | 54,170 | | |
Accumulated net realized loss | | | (3,084,081 | ) | |
Paid-in capital | | | 3,029,911 | | |
Net investment income 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
July 31,
2013 | | Period Ended
July 31,
2012 | | Year Ended
September 30,
2011 | |
Ordinary income | | $ | 7,802,257 | | | $ | 4,914,787 | | | $ | 5,290,446 | | |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2013, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income | | $ | 5,112,287 | | |
Undistributed accumulated long-term gain | | | 145,964,358 | | |
Unrealized appreciation | | | 604,463,019 | | |
At July 31, 2013, the cost of investments for federal income tax purposes was $2,181,845,856 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation | | $ | 613,779,991 | | |
Unrealized depreciation | | | (9,316,972 | ) | |
Net unrealized appreciation | | $ | 604,463,019 | | |
The following capital loss carryforward, determined at July 31, 2013, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:
Year of Expiration | | Amount | |
2015 | | $ | 169,026,889 | | |
2016 | | | 20,605,628 | | |
Total | | $ | 189,632,517 | | |
For the year ended July 31, 2013, $170,740,504 of capital loss carryforward was utilized.
Management of the Fund has concluded that there are no significant uncertain tax positions 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 obligations, aggregated to $2,693,344,625 and $2,913,760,717, respectively, for the year ended July 31, 2013.
Note 6. Shareholder Concentration
At July 31, 2013, one unaffiliated shareholder account owned 12.1% of the outstanding shares of the Fund. The Fund has no knowledge about whether any portion of those shares was owned beneficially by such account. Affiliated shareholder accounts owned 11.8% of the outstanding shares of the Fund. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund.
Note 7. Regulatory Settlements
During the year ended July 31, 2012, the Fund received $342,877 as a result of a regulatory settlement proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds. This amount represented the Fund's
Annual Report 2013
39
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
portion of the proceeds from the settlement (the Fund was not a party to the proceeding). The payments have been included in "Proceeds from regulatory settlements" in the Statement of Changes in Net Assets.
Note 8. Lending of Portfolio Securities
Effective December 19, 2012, the Fund no longer participates in securities lending activity. Prior to that date, the Fund participated, or was eligible to participate, in securities lending activity pursuant to a Master Securities Lending Agreement (the Agreement) with JPMorgan Chase Bank, N.A. (JPMorgan). The Agreement authorized JPMorgan as lending agent to lend securities to authorized borrowers in order to generate additional income on behalf of the Fund. Pursuant to the Agreement, the securities loaned were secured by cash or securities that either were issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities with value equal to at least 100% of the market value of the loaned securities. Any additional collateral required to maintain those levels due to market fluctuations of the loaned securities was requested to be delivered the following business day. Cash collateral received was invested by the lending agent on behalf of the Fund into authorized investments pursuant to the Agreement.
Pursuant to the Agreement, the Fund received income for lending its securities either in the form of fees or by earning interest on invested cash collateral, net of negotiated rebates paid to borrowers and fees paid to the lending agent for services provided and any other securities lending expenses. Net income earned from securities lending for the year ended July 31, 2013 is disclosed in the Statement of Operations. The Fund continued to earn and accrue interest and dividends on the securities loaned.
Note 9. Affiliated Money Market Fund
The Fund invests its daily cash balances in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds. The income earned by the Fund from such investments is included as "Dividends — affiliated issuers" in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of Columbia Short-Term Cash Fund.
Note 10. Line of Credit
The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility agreement, as amended, which is a collective agreement between the Fund and certain other funds managed
by the Investment Manager, severally and not jointly, permits collective borrowings up to $500 million. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 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 amount of the credit facility at a rate of 0.08% per annum. The commitment fee is included in other expenses in the Statement of Operations.
The Fund had no borrowings during the year ended July 31, 2013.
Note 11. Fund Merger
At the close of business on April 8, 2011, the Fund acquired the assets and assumed the identified liabilities of Seligman Growth Fund, Inc. The reorganization was completed after shareholders approved a plan of reorganization on February 15, 2011. The purpose of the transaction was to combine two funds managed by the Investment Manager with comparable investment objectives and strategies.
The aggregate net assets of the Fund immediately before the acquisition were $1,370,709,312 and the combined net assets immediately after the acquisition were $3,115,097,587.
The merger was accomplished by a tax-free exchange of 347,407,998 shares of Seligman Growth Fund, Inc. valued at $1,744,388,275 (including $317,686,293 of unrealized appreciation).
In exchange for Seligman Growth Fund, Inc. shares, the Fund issued the following number of shares:
| | | Shares | |
Class A | | | 53,028,074 | | |
Class B | | | 3,263,755 | | |
Class C | | | 1,277,699 | | |
Class I | | | 10,806,161 | | |
Class R | | | 99,267 | | |
Class R4 | | | 2,096,295 | | |
Class R5 | | | 18,952 | | |
For financial reporting purposes, net assets received and shares issued by the Fund were recorded at fair value; however, Seligman Growth Fund Inc.'s cost of investments was carried forward.
The financial statements reflect the operations of the Fund for the period prior to the merger and the combined fund for the period subsequent to the merger. Because the combined investment portfolios have been managed as a single integrated portfolio since the merger was completed, it is not practicable to separate the amounts of revenue and earnings of
Annual Report 2013
40
Columbia Large Cap Growth Fund
Notes to Financial Statements (continued)
July 31, 2013
Seligman Growth Fund Inc. that have been included in the combined Fund's Statement of Operations since the merger was completed.
Assuming the merger had been completed on October 1, 2010, the Fund's pro-forma net investment loss, net gain on investments, net change in unrealized depreciation and net increase in net assets from operations for the year ended September 30, 2011 would have been approximately $(0.7) million, $384.0 million, $(289.3) million and $94.0 million, respectively.
Note 12. Technology and Technology-related Investment Risk
The Fund invested a substantial portion of its assets in technology and technology-related companies. The market prices of technology and technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments.
Note 13. 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 14. Information Regarding Pending and Settled Legal Proceedings
In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)) entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds' Boards of Trustees.
Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities.
Ameriprise Financial believes that the Funds are 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 Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission 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 Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, 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.
Annual Report 2013
41
Columbia Large Cap Growth Fund
Report of Independent Registered Public Accounting Firm
To the Trustees of Columbia Funds Series Trust I and the Shareholders of Columbia Large Cap Growth Fund
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Large Cap Growth Fund (the "Fund") (a series of Columbia Funds Series Trust I) at July 31, 2013, the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2013 by correspondence with the custodian, brokers and transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 20, 2013
Annual Report 2013
42
Columbia Large Cap Growth Fund
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2013. Shareholders will be notified in early 2014 of the amounts for use in preparing 2013 income tax returns.
Tax Designations:
| Qualified Dividend Income | | | 100.00 | % | |
| Dividends Received Deduction | | | 100.00 | % | |
Capital Gain Dividend | | $ | 153,262,576 | | |
Qualified Dividend Income. For taxable, non-corporate shareholders, the percentage of ordinary income dividends paid during the fiscal year that represents qualified dividend income subject to reduced tax rates.
Dividends Received Deduction. The percentage of ordinary income dividends paid during the fiscal year that qualifies for the corporate dividends received deduction.
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. The Fund also designates as capital gain dividends, to the extent necessary to fully distribute such capital gains, earnings and profits distributed to shareholders on the redemption of shares.
Annual Report 2013
43
Columbia Large Cap Growth Fund
The Trustees serve terms of indefinite duration. The names, addresses and birth years of the Trustees and Officers of the Funds in Columbia Funds Series Trust I, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of Funds overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in Columbia Funds Series Trust I.
Independent Trustees
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Rodman L. Drake (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) and
Chairman of the Board (since 2009) | | Independent consultant since 2010; Co-Founder of Baringo Capital LLC (private equity) from 1997 to 2008; Chairman (from 2003 to 2010) and CEO (from 2008 to 2010) of Crystal River Capital, Inc. (real estate investment trust); Oversees 52; Jackson Hewitt Tax Service Inc. (tax preparation services) from 2004 to 2011; Student Loan Corporation (student loan provider) from 2005 to 2010; Celgene Corporation (global biotechnology company); The Helios Funds and Brookfield Funds (closed-end funds); Chimerix, Inc. (biopharmaceutical company) since August 1, 2013; Crystal River Capital, Inc. from 2005 to 2010; Parsons Brinckerhoff from 1995 to 2008; and Apex Silver Mines Ltd. from 2007 to 2009 | |
Douglas A. Hacker (Born 1955)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Independent business executive since May 2006; Executive Vice President — Strategy of United Airlines from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 52; Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing); and SeaCube Container Leasing Ltd. (container leasing) | |
Janet Langford Kelly (Born 1957)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel — Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University from September 2004 to June 2006; Director, UAL Corporation (airline) from February 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer goods) from September 2003 to March 2004. Oversees 52; None | |
Nancy T. Lukitsh (Born 1956)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser) from 1997 to 2010; Chair, Wellington Management Investment Portfolios (commingled non-U.S. investment pools) from 2007 to 2010; Director, Wellington Trust Company, NA and other Wellington affiliates from 1997 to 2010. Oversees 52; None | |
William E. Mayer (Born 1940)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) | | Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business and Management, University of Maryland from 1992 to 1996. Oversees 52; DynaVox Inc. (speech creation); Lee Enterprises (print media); WR Hambrecht + Co. (financial service provider) from 2000 to 2012; BlackRock Kelso Capital Corporation (investment company) | |
David M. Moffett (Born 1952)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Retired. Chief Executive Officer, Federal Home Loan Mortgage Corporation, from 2008 to 2009; Senior Adviser, Global Financial Services Group, Carlyle Group, Inc., from 2007 to 2008; Vice Chairman and Chief Financial Officer, U.S. Bancorp, from 1993 to 2007. Oversees 52; CIT Group Inc. (commercial and consumer finance); eBay Inc. (online trading community); MBIA Inc. (financial service provider); E.W. Scripps Co. (print and television media), Building Materials Holding Corp. (building materials and construction services); Genworth Financial, Inc. (financial and insurance products and services); and University of Oklahoma Foundation. | |
Charles R. Nelson (Born 1942)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1981) | | Retired. Professor Emeritus, University of Washington, since 2011; Professor of Economics, University of Washington from January 1976 to 2011; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington from 1993 to 2011; Adjunct Professor of Statistics, University of Washington from 1980 to 2011; Associate Editor, Journal of Money, Credit and Banking from September 1993 to 2008; consultant on econometric and statistical matters. Oversees 52; None | |
John J. Neuhauser (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1984) | | President, Saint Michael's College, since August 2007; Director or Trustee of several non-profit organizations, including Fletcher Allen Health Care, Inc.; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October 2005. Oversees 52; Liberty All-Star Equity Fund and Liberty All-Star Growth Fund (closed-end funds) | |
Annual Report 2013
44
Columbia Large Cap Growth Fund
Trustees and Officers (continued)
Independent Trustees (continued)
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Patrick J. Simpson (Born 1944)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2000) | | Partner, Perkins Coie LLP (law firm). Oversees 52; None | |
Anne-Lee Verville (Born 1945)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1998) | | Retired. General Manager — Global Education Industry from 1994 to 1997, President — Application Systems Division from 1991 to 1994, Chief Financial Officer — US Marketing & Services from 1988 to 1991, and Chief Information Officer from 1987 to 1988, IBM Corporation (computer and technology). Oversees 52; Enesco Group, Inc. (producer of giftware and home and garden decor products) from 2001 to 2006 | |
Interested Trustee
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
William F. Truscott (born 1960)
53600 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President (since 2012) | | President and Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 and February 2012, respectively (previously President and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously, Chief Executive Officer, U.S. Asset Management & President, Annuities, from May 2010 to September 2012 and President — U.S. Asset Management and Chief Investment Officer from 2005 to April 2010); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively (previously Chairman of the Board and Chief Executive Officer from 2006 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006; President and Chief Executive Officer, Ameriprise Certificate Company, 2006 to August 2012; Oversees 184; Director, Ameriprise Certificate Company, 2006-January 2013 | |
The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800.345.6611.
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. In addition to Mr. Truscott, who is Senior Vice President, the Funds' other officers are:
Officers
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
J. Kevin Connaughton (Born 1964)
225 Franklin Street
Boston, MA 02110
President (since 2009) | | Senior Vice President and General Manager — Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds since 2009 and RiverSource Funds since May 2010; Managing Director, Columbia Management Advisors, LLC, December 2004-April 2010; Senior Vice President and Chief Financial Officer, Columbia Funds, June 2008-January 2009; Treasurer, Columbia Funds, October 2003-May 2008; and senior officer of various other affiliated funds since 2000 | |
Amy Johnson (Born 1965)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) | | Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009-April 2010, Vice President — Asset Management and Trust Company Services, from 2006-2009) | |
Michael G. Clarke (Born 1969)
225 Franklin Street
Boston, MA 02110
Treasurer (since 2011) and Chief
Financial Officer (since 2009) | | Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, September 2004-April 2010; senior officer of Columbia Funds and affiliated funds since 2002 | |
Annual Report 2013
45
Columbia Large Cap Growth Fund
Trustees and Officers (continued)
Officers (continued)
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
Scott R. Plummer (Born 1959)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President, Assistant
Secretary and Chief Legal Officer
(since 2010) | | Senior Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Senior Vice President and Lead Chief Counsel — Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel — Asset Management, 2005-April 2010); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; senior officer of Columbia Funds and affiliated funds since 2010 | |
Colin Moore (Born 1958)
225 Franklin Street
Boston, MA 02110
Senior Vice President (since 2010) | | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc. since July 2013; Director and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC, 2007-April 2010 | |
Thomas P. McGuire (Born 1972)
225 Franklin Street
Boston, MA 02110
Chief Compliance Officer
(since 2012) | | Vice President — Asset Management Compliance, Columbia Management Investment Advisers, LLC since 2010; Chief Compliance Officer, Ameriprise Certificate Company, since September 2010; Compliance Executive, Bank of America, N.A. 2005-2010 | |
Stephen T. Welsh (born 1957)
225 Franklin Street
Boston, MA 02110
Vice President (since 2006) | | President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc., July 2004-April 2010; Managing Director, Columbia Management Distributors, Inc., August 2007-April 2010 | |
Christopher O. Petersen (born 1970)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) and
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since January 2010 (formerly Vice President and Group Counsel or Counsel, April 2004-January 2010); Assistant Secretary of Columbia Funds, January 2007-April 2011 | |
Paul D. Pearson (born 1956)
10468 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President and Assistant
Treasurer (since 2011) | | Vice President, Investment Accounting, Columbia Management Investment Advisers, LLC, since May 2010; Vice President — Managed Assets, Investment Accounting, Ameriprise Financial, Inc., February 1998-May 2010 | |
Joseph F. DiMaria (Born 1968)
225 Franklin Street
Boston, MA 02110
Vice President (since 2011) and
Chief Accounting Officer (since 2008) | | Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, January 2006-April 2010 | |
Paul B. Goucher (born 1968)
100 Park Avenue
New York, NY 10017
Vice President and Assistant
Secretary (since 2010) | | Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since November 2008 and January 2013, respectively (formerly, Chief Counsel from January 2010-January 2013 and Group Counsel from November 2008-January 2010); Director, Managing Director and General Counsel, J. & W. Seligman & Co. Incorporated, July 2008-November 2008 (previously, Managing Director and Associate General Counsel, January 2005-July 2008) | |
Michael E. DeFao (born 1968)
225 Franklin Street
Boston, MA 02110
Vice President and Assistant
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Associate General Counsel, Bank of America, N.A. June 2005-April 2010 | |
Annual Report 2013
46
Columbia Large Cap Growth Fund
Board Consideration and Approval of
Advisory Agreement
On June 14, 2013, the Board of Trustees (the "Board") and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) of the Trust (the "Independent Trustees") unanimously approved the continuation of the Investment Management Services Agreement (the "Advisory Agreement") with Columbia Management Investment Advisers, LLC (the "Investment Manager") with respect to Columbia Large Cap Growth Fund (the "Fund"), a series of the Trust. As detailed below, the Advisory Fees and Expenses Committee (the "Committee") and the Board met on multiple occasions to review and discuss, both among themselves and with the management team of the Investment Manager, materials provided by the Investment Manager before determining to approve the continuation of the Advisory Agreement.
In connection with their deliberations regarding the continuation of the Advisory Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Advisory Agreement, and discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2013, April 24, 2013 and June 13, 2013, and at the Board meeting held on June 14, 2013. In addition, the Board considers matters bearing on the Advisory Agreement at most of its other meetings throughout the year and meets regularly with senior management of the Funds and the Investment Manager. Through the Board's Investment Oversight Committees, Trustees also meet with selected Fund portfolio managers and other investment personnel at various times throughout the year. The Committee and the Board also consulted with Fund counsel and with the Independent Trustees' independent legal counsel, who advised on various matters with respect to the Committee's and the Board's considerations and otherwise assisted the Committee and the Board in their deliberations. On June 13, 2013, the Committee recommended that the Board approve the continuation of the Advisory Agreement. On June 14, 2013, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement for the Fund.
The Committee and the Board considered all information that they, their legal counsel, or the Investment Manager believed reasonably necessary to evaluate and to determine whether to approve the continuation of the Advisory Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Advisory Agreement for the Fund included the following:
• Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks;
• Information on the Fund's advisory fees and total expenses, including information comparing the Fund's expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider;
• 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 extraordinary expenses) would not exceed the median expenses of a group of comparable funds (as determined from time to time, generally annually, by the independent third-party data provider);
• The terms and conditions of the Advisory Agreement;
• The terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including the Administrative Services Agreement, the Distribution Agreement and the Transfer and Dividend Disbursing Agent Agreement;
• Descriptions of various functions performed by the Investment Manager under the Advisory Agreement, including portfolio management and portfolio trading practices;
• Information regarding the management fees and investment performance of comparable portfolios of other clients of the Investment Manager, including institutional separate accounts;
• Information regarding the reputation, regulatory history and 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, including an assessment of the Investment Manager's compliance system by the Fund's Chief Compliance Officer; and
• The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
Annual Report 2013
47
Columbia Large Cap Growth Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Nature, Extent and Quality of Services Provided under the Advisory Agreement
The Committee and the Board considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Advisory Agreement and under separate agreements for the provision of transfer agency and administrative services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment Manager's ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager's investment research capabilities and trade execution services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager's experience with similarly-structured funds. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager and its affiliates, and considered the Investment Manager's ability to provide administrative services to the Fund pursuant to a separate Administrative Services Agreement, including the Investment Manager's ability to coordinate the activities of the Fund's other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Advisory Agreement supported the continuation of the Advisory Agreement.
Investment Performance
The Committee and the Board reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks and information based on reports of the independent third-party data provider that compared the performance of the Fund to the performance of a group of comparable mutual funds. The Committee and the Board also reviewed a description of the third party's methodology for identifying the Fund's peer groups for purposes of performance and expense comparisons.
The Committee and the Board noted that, through December 31, 2012, the Fund's performance was in the 8th, 16th and 42nd percentile (where the best performance would be in the first percentile) of its category selected by the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five- year periods, respectively.
The Committee and the Board also considered the Investment Manager's performance and reputation generally, the Investment Manager's historical responsiveness to Board concerns about performance, and the Investment Manager's willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund supported the continuation of the Advisory Agreement.
Investment Advisory Fee Rates and Other Expenses
The Committee and the Board considered the advisory fees charged to the Fund under the Advisory Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Advisory Agreement, the Committee and the Board considered, among other information, the Fund's advisory fee and its total expense ratio as a percentage of average daily net assets. The Committee and the Board noted that the Fund's actual management fee and net expense ratio are both ranked in the third quintile (where the lowest fees and expenses would be in the first quintile) against the Fund's expense universe as determined by the independent third-party data provider for purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also received and considered information about the advisory fees charged by the Investment Manager to institutional separate accounts. In considering the fees charged to those accounts, the Committee and the Board took into account, among other things, the Investment Manager's representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk
Annual Report 2013
48
Columbia Large Cap Growth Fund
Board Consideration and Approval of
Advisory Agreement (continued)
profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. In evaluating the Fund's advisory fees, the Committee and the Board also took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the advisory fee rates and expenses of the Fund supported the continuation of the Advisory Agreement.
Costs of Services Provided and Profitability
The Committee and the Board also took note of the costs of the services provided (both on an absolute and relative basis) and the profitability to the Investment Manager and its affiliates in connection with their relationships with the Fund. In evaluating these considerations, the Committee and the Board took note of the advisory fees charged by the Investment Manager to other clients, including fees charged by the Investment Manager to institutional separate account clients with similar investment strategies to those of the Fund.
The Committee and the Board also considered the compensation directly or indirectly received by the Investment Manager's affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided by management as to the profitability of the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of profitability levels realized in 2012 to profitability levels realized in 2011. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the Fund, the expense ratio of the Fund, and the implementation of expense limitations with respect to the Fund. The Committee and the Board also considered information provided by the Investment Manager regarding its financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Advisory Agreement.
Economies of Scale
The Committee and the Board considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager's investment advisory clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment advisory fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading and compliance resources. The Committee and the Board noted that the investment advisory fee schedules for the Fund contained breakpoints that would reduce the fee rate on assets above specified threshold levels.
In considering these matters, the Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as discussed above. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the continuation of the Advisory Agreement.
Other Benefits to the Investment Manager
The Committee and the Board received and considered information regarding "fall-out" or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement of the Investment Manager to provide administrative services to the Fund and the engagement of the Investment Manager's affiliates to provide distribution and transfer agency services to the Fund. The Committee and the Board considered that the Fund's distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund's securities transactions, and reviewed information about the Investment Manager's practices with respect to allocating portfolio transactions for brokerage and research services. The Committee and the Board considered the possible conflicts of interest associated with certain fall-out or other ancillary benefits and the reporting, disclosure and other processes that are in place
Annual Report 2013
49
Columbia Large Cap Growth Fund
Board Consideration and Approval of
Advisory Agreement (continued)
to address such possible conflicts of interest. The Committee and the Board recognized that the Investment Manager's profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Advisory Agreement. In their deliberations, the Trustees did not identify any particular information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement.
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Annual Report 2013
52
Columbia Large Cap Growth Fund
Important Information About This Report
Each fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
The policy of the Board is to vote the proxies of the companies in which each 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 columbiamanagement.com; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how each fund voted proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30 of that year, and is available without charge by visiting columbiamanagement.com; or searching the website of the SEC at sec.gov.
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800.SEC.0330. Each fund's complete schedule of portfolio holdings, as filed on Form N-Q, can also be obtained without charge, upon request, by calling 800.345.6611.
Annual Report 2013
53
Columbia Large Cap Growth Fund
P.O. Box 8081
Boston, MA 02266-8081
columbiamanagement.com
This information is for use with concurrent or prior delivery of a fund prospectus. Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the Fund go to columbiamanagement.com. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
ANN174_07_C01_(09/13)
Annual Report
July 31, 2013
Columbia Oregon Intermediate Municipal Bond Fund
Not FDIC insured • No bank guarantee • May lose value
Dear Shareholders,
A return to volatility
Volatility returned to the financial markets in the second quarter of 2013, as uncertainty about the global economy, monetary policy and the impact of the sequester's spending cuts weighed on investors. Households advanced their spending but also allocated less to savings. Labor markets continued to crank out jobs at a steady pace, slowly reducing unemployment. Housing activity remained strong and retail sales were higher despite no real increase in income. The single weak spot was in the manufacturing sector, where activity slowed. While the consumer has weathered the domestic drag well, business has been closer to the global slowdown and effects of sequestration. Businesses remain very cautious, keeping inventories and staffs lean, and are planning for but not yet confident enough to make capital expenditures.
Against this backdrop, equities outperformed fixed income during the second quarter of 2013. Small-cap stocks outperformed large- and mid-cap stocks, and growth outperformed value except for in the large-cap sector. Outside the United States, foreign stock markets generally lost ground, with the most significant losses sustained by emerging markets.
Columbia Management to begin delivering summary prospectuses
Each Columbia fund is required to update its prospectus on an annual basis. Beginning with June 2013 prospectus updates, shareholders of Columbia retail mutual funds will start to receive a summary prospectus, rather than the full length (statutory) mutual fund prospectus they have received in the past.
Each fund's summary prospectus will include the following key information:
> Investment objective
> Fee and expense table
> Portfolio turnover rate information
> Principal investment strategies, principal risks and performance information
> Management information
> Purchase and sale information
> Tax information
> Financial intermediary compensation information
Each fund's statutory prospectus will contain additional information about the fund and its risks. Both the statutory and summary prospectus will be updated each year, and will be available at columbiamanagement.com. Shareholders may request a printed version of a statutory prospectus at no cost by calling 800.345.6611 or sending an email to serviceinquiries@columbiamanagement.com.
Stay on track with Columbia Management
Backed by more than 100 years of experience, Columbia Management is one of the nation's largest asset managers. At the heart of our success — and, most importantly, that of our investors — are highly talented industry professionals, brought together by a unique way of working. We are dedicated to helping you take advantage of today's opportunities and anticipate tomorrow's. We stay abreast of the latest investment trends and ideas, using our collective insight to evaluate events and transform them into solutions you can use.
Visit columbiamanagement.com for:
> The Columbia Management Perspectives blog, featuring timely posts by our investment teams
> Detailed up-to-date fund performance and portfolio information
> Economic analysis and market commentary
> Quarterly fund commentaries
> Columbia Management Investor, our award-winning quarterly newsletter for shareholders
Thank you for your continued support of the Columbia Funds. We look forward to serving your investment needs for many years to come.
Best Regards,
J. Kevin Connaughton
President, Columbia Funds
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about a fund, visit columbiamanagement.com. The prospectus should be read carefully before investing.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
Columbia Oregon Intermediate Municipal Bond Fund
Performance Overview | | | 2 | | |
Manager Discussion of Fund Performance | | | 4 | | |
Understanding Your Fund's Expenses | | | 6 | | |
Portfolio of Investments | | | 7 | | |
Statement of Assets and Liabilities | | | 16 | | |
Statement of Operations | | | 18 | | |
Statement of Changes in Net Assets | | | 19 | | |
Financial Highlights | | | 21 | | |
Notes to Financial Statements | | | 27 | | |
Report of Independent Registered
Public Accounting Firm | | | 33 | | |
Federal Income Tax Information | | | 34 | | |
Trustees and Officers | | | 35 | | |
Board Consideration and Approval of Advisory Agreement | | | 38 | | |
Important Information About This Report | | | 45 | | |
Fund Investment Manager
Columbia Management Investment
Advisers, LLC
225 Franklin Street
Boston, MA 02110
Fund Distributor
Columbia Management Investment
Distributors, Inc.
225 Franklin Street
Boston, MA 02110
Fund Transfer Agent
Columbia Management Investment
Services Corp.
P.O. Box 8081
Boston, MA 02266-8081
For more information about any of the funds, please visit columbiamanagement.com or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 8 p.m. Eastern time.
The views expressed in this report reflect the current views of the respective parties. 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.
Columbia Oregon Intermediate Municipal Bond Fund
Performance Summary
> Columbia Oregon Intermediate Municipal Bond Fund (the Fund) Class A shares returned -2.47% excluding sales charges for the 12-month period that ended July 31, 2013.
> The Fund trailed its benchmark, the Barclays 3-15 Year Blend Municipal Bond Index, which returned -1.32% for the same 12-month period.
> The Fund's duration — a measure of interest-rate sensitivity — hindered relative performance, as did exposure to longer-maturity issues with 4% coupons (or stated interest rates).
Average Annual Total Returns (%) (for period ended July 31, 2013)
| | | Inception | | 1 Year | | 5 Years | | 10 Years | |
Class A | | 11/01/02 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | -2.47 | | | | 3.85 | | | | 3.78 | | |
Including sales charges | | | | | | | -5.67 | | | | 3.17 | | | | 3.27 | | |
Class B | | 11/01/02 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | -3.19 | | | | 3.08 | | | | 3.00 | | |
Including sales charges | | | | | | | -6.04 | | | | 3.08 | | | | 3.00 | | |
Class C* | | 10/13/03 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | -2.78 | | | | 3.45 | | | | 3.37 | | |
Including sales charges | | | | | | | -3.73 | | | | 3.45 | | | | 3.37 | | |
Class R4* | | 03/19/13 | | | -2.17 | | | | 4.12 | | | | 4.04 | | |
Class R5* | | 11/08/12 | | | -2.15 | | | | 4.12 | | | | 4.05 | | |
Class Z | | 07/02/84 | | | -2.14 | | | | 4.12 | | | | 4.05 | | |
Barclays 3-15 Year Blend Municipal Bond Index | | | | | | | -1.32 | | | | 5.04 | | | | 4.61 | | |
Returns for Class A are shown with and without the maximum initial sales charge of 3.25%. The 10-year Class A average annual returns with sales charge as of July 31, 2013 include the previous sales charge of 4.75%. Class A 1-year and 5-year annual returns with sales charge as of July 31, 2013 include the new sales charge of 3.25%. This change was effective beginning August 22, 2005. Returns for Class B are shown with and without the applicable contingent deferred sales charge (CDSC) of 3.00% in the first year, declining to 1.00% in the fourth year and eliminated thereafter. Returns for Class C are shown with and without the 1.00% CDSC for the first year only. The Fund's other 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 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 columbiamanagement.com 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 columbiamanagement.com/mutual-funds/appended-performance for more information.
The Barclays 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.
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.
Annual Report 2013
2
Columbia Oregon Intermediate Municipal Bond Fund
Performance Overview (continued)
Performance of a Hypothetical $10,000 Investment (August 1, 2003 – July 31, 2013)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Oregon 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.
Annual Report 2013
3
Columbia Oregon Intermediate Municipal Bond Fund
Manager Discussion of Fund Performance
For the 12-month period that ended July 31, 2013, the Fund's Class A shares returned -2.47% excluding sales charges. The Fund underperformed its benchmark, the Barclays 3-15 Year Blend Municipal Bond Index, which returned -1.32% for the same 12-month period. The Fund's duration — a measure of interest-rate sensitivity — hindered relative performance, as did exposure to longer-maturity issues with 4% coupons (or stated interest rates).
Bonds Come Under Pressure
Europe's general economic woes, concerns about the impact of tax increases, enforced federal spending cuts and a slowdown in manufacturing activity weighed on the U.S. economy during the reporting period. However, a pickup in job growth and a solid rebound in the housing market helped keep growth afloat. Even so, gross domestic product expanded by a mere 1.4% over the past year. As central banks continued to pour liquidity into key markets to bolster economic growth, investors bid up prices on stocks and other riskier assets, but bonds came under pressure as interest rates moved higher late in the period. Municipal bond rates were relatively low for most of the year, with five-year rates hovering around 0.8%, 10-year rates between 1.9% and 2.2%, and 15-year rates between 3.0% and 3.7%. However, in May the Federal Reserve indicated that it might begin to taper its massive monthly bond purchase program in the early fall, which caused U.S. Treasury yields to spike. The 10-year Treasury yield reached 2.75% in early July, up from 1.6% in late April. Municipal bond yields followed the Treasury market, with 10-year municipal bond yields climbing 100 basis points (a basis point is one hundredth of a percentage point). Bond prices, which move in the opposite direction of yields, fell. Only very short maturity municipal bonds (five years or less) had positive — albeit meager — total returns for the year. Longer-maturity municipal bonds saw the biggest declines, with 15-year and 20-year bonds down more than 3%. Investor withdrawals from municipal bond mutual funds, starting in May, pressured returns even more.
Duration Positioning Hampered Fund's Relative Performance
The Fund had a longer duration than the benchmark due to an overweight in bonds with durations in the six- to eight-year range and an underweight in bonds with durations of two to four years. This positioning hurt relative performance because longer duration bonds declined more than shorter duration issues as interest rates rose. Exposure to longer-term bonds with 4% coupons also detracted from results. Those with maturities between eight and 17 years had been trading at premium prices, but fell as the dramatic rise in interest rates in June changed investor perceptions. Worries that these bonds would trade at a discount to face value and possibly be subject to extra taxes further hampered demand. Within the benchmark, 15- to 20-year bonds with 4% coupons saw losses over the one-year period of between 7% and 10%.
Sector Positioning Proved Advantageous
Over 11% of assets were in hospital bonds at period end, which helped relative performance as the sector beat the benchmark. In addition, an 18% stake in special tax bonds — which are issued to pay for one-time projects, such as a new highway or hospital wing, and backed by taxes levied on a particular activity or asset — generated returns in line with those in the benchmark. Finally, our
Portfolio Management
Brian McGreevy
Quality Breakdown (%)
(at July 31, 2013) | |
AAA rating | | | 1.6 | | |
AA rating | | | 60.1 | | |
A rating | | | 24.5 | | |
BBB rating | | | 8.0 | | |
Non-investment grade | | | 1.4 | | |
Not rated | | | 4.4 | | |
Total | | | 100.0 | | |
Percentages indicated are based upon total fixed income securities (excluding Money Market Funds).
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from AAA (highest) to D (lowest), and are subject to change. The ratings shown are determined by using the middle rating of Moody's, S&P, and Fitch after dropping the highest and lowest available ratings. When a rating from only two agencies is available, the lower rating is used. When a rating from only one agency is available, that rating is used. When a bond is not rated by one of these agencies, it is designated as Not rated. Credit ratings are subjective opinions and not statements of fact.
Investment Risks
There are risks associated with an investment in a municipal bond fund, including credit risk, interest rate risk, prepayment and extension risk, and geographic concentration risk. In general, bond prices rise when interest rates fall and vice versa. This effect is more pronounced for longer-term securities. Because the Fund concentrates its investments in municipal securities issued by a single state and its municipalities, specific events or factors affecting a particular state can cause more volatility in the Fund than a fund that is more geographically diversified. Non-investment grade securities, commonly called "high-yield" or "junk" bonds, have more volatile prices and carry more risk to principal and income than investment grade securities. See the Fund's prospectus for information on these and other risks associated with the Fund. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal and/or state alternative minimum tax for certain investors. Federal and state income tax rules will apply to any capital gain distributions and any gains or losses on sales.
Annual Report 2013
4
Columbia Oregon Intermediate Municipal Bond Fund
Manager Discussion of Fund Performance (continued)
decision to decrease most of the Fund's exposure to Puerto Rico bonds early on helped as the Commonwealth's large budget and pension issues pressured returns.
Looking Ahead
At present, we expect a gradual increase in municipal bond yields and believe that recent outflows from municipal bond mutual funds has the potential to create some attractive buying opportunities, particularly in high-tax states such as Oregon where the financial outlook currently appears to be improving. In particular, Oregon's economy has been growing at an average pace, led by gains in the private sector and non-farm sectors; unemployment has fallen to 8% from 8.8% a year earlier and state revenues have risen. Going forward, we plan to position the Fund more defensively by decreasing duration and by reducing exposure to bonds with the 4% coupon structure that were a drag on performance during this period. The Fund ended the period with a slightly higher-than-average cash position to help cover shareholder redemptions and take advantage of buying opportunities.
Annual Report 2013
5
Columbia Oregon Intermediate Municipal Bond Fund
Understanding Your Fund's Expenses
(Unaudited)
As an investor, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and service (Rule 12b-1) 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the Actual column. The amount listed in the "Hypothetical" column assumes a 5% annual rate of return before expenses (which is not the Fund's actual return) and then applies the Fund's actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See "Compare With Other Funds" below for details on how to use the hypothetical data.
Compare With Other Funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
February 1, 2013 – July 31, 2013
| | | Account Value at the Beginning
of the Period ($) | | 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 | | | | 966.10 | | | | 1,020.78 | | | | 3.95 | | | | 4.06 | | | | 0.81 | | |
Class B | | | 1,000.00 | | | | 1,000.00 | | | | 962.50 | | | | 1,017.06 | | | | 7.59 | | | | 7.80 | | | | 1.56 | | |
Class C | | | 1,000.00 | | | | 1,000.00 | | | | 964.90 | | | | 1,018.79 | | | | 5.89 | | | | 6.06 | | | | 1.21 | | |
Class R4 | | | 1,000.00 | | | | 1,000.00 | | | | 968.70 | * | | | 1,022.02 | | | | 2.01 | * | | | 2.81 | | | | 0.56 | * | |
Class R5 | | | 1,000.00 | | | | 1,000.00 | | | | 968.10 | | | | 1,022.12 | | | | 2.64 | | | | 2.71 | | | | 0.54 | | |
Class Z | | | 1,000.00 | | | | 1,000.00 | | | | 968.10 | | | | 1,022.02 | | | | 2.73 | | | | 2.81 | | | | 0.56 | | |
*For the period March 19, 2013 through July 31, 2013. Class R4 shares commenced operations on March 19, 2013.
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 the underlying funds in which the Fund may invest (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including 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.
Annual Report 2013
6
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments
July 31, 2013
(Percentages represent value of investments compared to net assets)
Municipal Bonds 96.2%
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Airport 1.6% | |
Port of Portland
Revenue Bonds
Passenger Facility Charge
Series 2011
07/01/27 | | | 5.500 | % | | | 6,635,000 | | | | 7,262,074 | | |
Assisted Living 0.4% | |
Clackamas County Hospital Facility Authority
Refunding Revenue Bonds
Robinson Jewish Home
Series 2005
10/01/19 | | | 5.000 | % | | | 1,000,000 | | | | 995,740 | | |
10/01/24 | | | 5.125 | % | | | 1,000,000 | | | | 950,120 | | |
Total | | | | | | | 1,945,860 | | |
Higher Education 5.0% | |
City of Forest Grove
Revenue Bonds
Campus Improvement-Pacific University Project
Series 2009
05/01/30 | | | 6.000 | % | | | 1,500,000 | | | | 1,511,100 | | |
City of Portland
Refunding Revenue Bonds
Broadway Project
Series 2008A
04/01/23 | | | 6.250 | % | | | 3,250,000 | | | | 3,834,155 | | |
Oregon Health & Science University
Revenue Bonds
Series 2012-E
07/01/31 | | | 4.000 | % | | | 8,000,000 | | | | 7,263,280 | | |
Series 2012A
07/01/18 | | | 5.000 | % | | | 1,000,000 | | | | 1,154,790 | | |
Oregon Health & Science University(a)
Revenue Bonds
Capital Appreciation-Independent School District
Series 1996A (NPFGC)
07/01/21 | | | 0.000 | % | | | 9,700,000 | | | | 7,378,984 | | |
Oregon State Facilities Authority
Revenue Bonds
Linfield College Project
Series 2005A
10/01/20 | | | 5.000 | % | | | 1,825,000 | | | | 1,891,211 | | |
Total | | | | | | | 23,033,520 | | |
Hospital 11.7% | |
Astoria Hospital Facilities Authority
Refunding Revenue Bonds
Columbia Memorial Hospital
Series 2012
08/01/16 | | | 4.000 | % | | | 780,000 | | | | 825,981 | | |
08/01/17 | | | 4.000 | % | | | 810,000 | | | | 857,539 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
08/01/18 | | | 4.000 | % | | | 745,000 | | | | 783,397 | | |
08/01/19 | | | 4.000 | % | | | 855,000 | | | | 896,998 | | |
08/01/20 | | | 4.000 | % | | | 915,000 | | | | 934,718 | | |
08/01/21 | | | 4.000 | % | | | 725,000 | | | | 723,325 | | |
08/01/26 | | | 5.000 | % | | | 1,200,000 | | | | 1,210,104 | | |
08/01/27 | | | 5.000 | % | | | 1,260,000 | | | | 1,257,808 | | |
08/01/31 | | | 5.000 | % | | | 1,635,000 | | | | 1,584,070 | | |
Deschutes County Hospital Facilities Authority
Refunding Revenue Bonds
Cascade Health Services, Inc.
Series 2008
01/01/23 | | | 7.375 | % | | | 2,000,000 | | | | 2,351,260 | | |
Klamath Falls Intercommunity Hospital Authority
Refunding Revenue Bonds
Sky Lakes Medical Center Project
Series 2012
09/01/18 | | | 5.000 | % | | | 1,195,000 | | | | 1,312,982 | | |
09/01/19 | | | 5.000 | % | | | 1,255,000 | | | | 1,383,801 | | |
09/01/22 | | | 5.000 | % | | | 500,000 | | | | 535,520 | | |
Multnomah County Hospital Facilities Authority
Revenue Bonds
Adventist Health West
Series 2009A
09/01/21 | | | 5.000 | % | | | 3,685,000 | | | | 4,084,712 | | |
Providence Health Systems
Series 2004
10/01/13 | | | 5.250 | % | | | 1,045,000 | | | | 1,053,548 | | |
10/01/16 | | | 5.250 | % | | | 2,970,000 | | | | 3,129,935 | | |
Oregon State Facilities Authority
Refunding Revenue Bonds
Legacy Health Project
Series 2011A
05/01/20 | | | 5.250 | % | | | 5,000,000 | | | | 5,744,100 | | |
Legacy Health Systems
Series 2010A
03/15/15 | | | 5.000 | % | | | 1,000,000 | | | | 1,066,000 | | |
03/15/16 | | | 5.000 | % | | | 1,500,000 | | | | 1,641,360 | | |
Peacehealth
Series 2009A
11/01/17 | | | 5.000 | % | | | 4,450,000 | | | | 5,093,781 | | |
11/01/19 | | | 5.000 | % | | | 3,695,000 | | | | 4,241,601 | | |
Samaritan Health Services
Series 2010A
10/01/22 | | | 5.000 | % | | | 3,450,000 | | | | 3,722,584 | | |
Revenue Bonds
Providence Health Services
Series 2011C
10/01/14 | | | 4.000 | % | | | 1,625,000 | | | | 1,691,073 | | |
Salem Hospital Facility Authority
Revenue Bonds
Salem Hospital Project
Series 2006A
08/15/27 | | | 5.000 | % | | | 3,500,000 | | | | 3,574,795 | | |
Series 2008A
08/15/15 | | | 5.750 | % | | | 785,000 | | | | 860,533 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
7
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
08/15/18 | | | 5.250 | % | | | 2,500,000 | | | | 2,877,150 | | |
Total | | | | | | | 53,438,675 | | |
Independent Power 0.9% | |
Western Generation Agency
Revenue Bonds
Wauna Cogeneration Project
Series 2006A
01/01/20 | | | 5.000 | % | | | 1,000,000 | | | | 985,420 | | |
01/01/21 | | | 5.000 | % | | | 3,000,000 | | | | 2,923,740 | | |
Total | | | | | | | 3,909,160 | | |
Investor Owned 0.8% | |
Port of Morrow
Refunding Revenue Bonds
Portland General Electric
Series 1998A(b)
05/01/33 | | | 5.000 | % | | | 3,750,000 | | | | 3,855,487 | | |
Local General Obligation 35.1% | |
Benton & Linn Counties Consolidated
School District No. 509J & 509A
Unlimited General Obligation Refunding Bonds
Series 2007 (AGM)
06/15/20 | | | 5.000 | % | | | 5,000,000 | | | | 5,870,500 | | |
Canyonville South Umpqua Rural Fire Protection District
Unlimited General Obligation Bonds
Series 2001
07/01/31 | | | 5.400 | % | | | 610,000 | | | | 609,957 | | |
Central Oregon Community College District
Unlimited General Obligation Bonds
Series 2010
06/15/24 | | | 4.750 | % | | | 2,580,000 | | | | 2,931,293 | | |
City of Canby
Refunding Limited General Obligation Bonds
Series 2012 AGM
12/01/29 | | | 4.000 | % | | | 2,690,000 | | | | 2,583,637 | | |
City of Hillsboro
Limited General Obligation Refunding Bonds
Series 2012
06/01/24 | | | 4.000 | % | | | 1,875,000 | | | | 1,977,619 | | |
06/01/25 | | | 4.000 | % | | | 1,875,000 | | | | 1,945,538 | | |
City of Madras
Refunding Unlimited General Obligation Bonds
Series 2013
02/15/24 | | | 4.000 | % | | | 745,000 | | | | 735,151 | | |
Series 2013
02/15/27 | | | 4.500 | % | | | 500,000 | | | | 479,295 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of Portland
Limited General Obligation Refunding Bonds
Arena
Series 2005B
06/01/16 | | | 5.000 | % | | | 3,075,000 | | | | 3,313,343 | | |
Limited Tax
Series 2011A
06/01/23 | | | 5.000 | % | | | 6,140,000 | | | | 7,031,405 | | |
City of Portland(a)
Limited Tax General Obligation Bonds
Series 2001B
06/01/16 | | | 0.000 | % | | | 3,500,000 | | | | 3,395,525 | | |
06/01/18 | | | 0.000 | % | | | 4,000,000 | | | | 3,657,400 | | |
06/01/19 | | | 0.000 | % | | | 4,000,000 | | | | 3,546,280 | | |
06/01/20 | | | 0.000 | % | | | 4,000,000 | | | | 3,391,600 | | |
City of Salem
Limited General Obligation Bonds
Series 2009
06/01/26 | | | 5.000 | % | | | 3,315,000 | | | | 3,673,782 | | |
Unlimited General Obligation Bonds
Series 2009
06/01/19 | | | 5.000 | % | | | 2,025,000 | | | | 2,380,671 | | |
06/01/20 | | | 5.000 | % | | | 880,000 | | | | 1,013,698 | | |
Clackamas & Washington Counties School District No. 3
Unlimited General Obligation Bonds
West Linn-Wilsonville
Series 2009
06/15/24 | | | 5.000 | % | | | 4,150,000 | | | | 4,850,852 | | |
Clackamas & Washington Counties School District No. 3(a)
Unlimited General Obligation Bonds
Series 2003A (NPFGC/FGIC)
06/15/17 | | | 0.000 | % | | | 4,000,000 | | | | 3,788,080 | | |
Clackamas Community College District
Unrefunded Unlimited General Obligation Bonds
Series 2001 (NPFGC/FGIC)
06/15/15 | | | 5.250 | % | | | 110,000 | | | | 112,006 | | |
Clackamas County School District No. 108 Estacada
Unlimited General Obligation Refunding Bonds
Series 2005 (AGM)
06/15/25 | | | 5.500 | % | | | 2,485,000 | | | | 3,039,254 | | |
Clackamas County School District No. 115
Unlimited General Obligation Bonds
Series 2006A (NPFGC)(a)
06/15/25 | | | 0.000 | % | | | 2,250,000 | | | | 1,326,870 | | |
Clackamas County School District No. 12 North Clackamas
Unlimited General Obligation Bonds
Series 2007B (AGM)
06/15/22 | | | 5.000 | % | | | 4,000,000 | | | | 4,462,360 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
8
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Clackamas County School District No. 46 Oregon Trail
Unlimited General Obligation Bonds
Series 2009A
06/15/25 | | | 5.000 | % | | | 4,350,000 | | | | 4,789,829 | | |
06/15/26 | | | 5.000 | % | | | 3,000,000 | | | | 3,273,180 | | |
Columbia County School District No. 502
Unlimited General Obligation Bonds
Series 1999 (NPFGC/FGIC)(a)
06/01/14 | | | 0.000 | % | | | 1,025,000 | | | | 1,021,792 | | |
Columbia Gorge Community College District
Unlimited General Obligation Refunding Bonds
Series 2012
06/15/18 | | | 3.000 | % | | | 810,000 | | | | 864,878 | | |
06/15/19 | | | 2.500 | % | | | 1,010,000 | | | | 1,044,047 | | |
Columbia Multnomah & Washington Counties School District No. 1J
Unlimited General Obligation Bonds
Scappoose School District
Series 2009
06/15/23 | | | 5.000 | % | | | 1,000,000 | | | | 1,122,000 | | |
06/15/24 | | | 5.000 | % | | | 1,165,000 | | | | 1,295,340 | | |
06/15/25 | | | 5.000 | % | | | 1,275,000 | | | | 1,403,915 | | |
County of Clackamas
Limited General Obligation Bonds
Series 2007 (NPFGC)
06/01/27 | | | 4.125 | % | | | 2,000,000 | | | | 2,018,340 | | |
County of Lane
Limited General Obligation Bonds
Series 2009A
11/01/24 | | | 5.000 | % | | | 1,000,000 | | | | 1,112,960 | | |
11/01/25 | | | 5.000 | % | | | 1,140,000 | | | | 1,257,842 | | |
Deschutes & Jefferson Counties School District No. 2J Redmond
Refunding Unlimited General Obligation Bonds
Series 2013
06/15/30 | | | 4.000 | % | | | 2,520,000 | | | | 2,453,472 | | |
Deschutes & Jefferson Counties School District No. 2J Redmond(a)
Unlimited General Obligation Bonds
Series 2004B (NPFGC/FGIC)
06/15/22 | | | 0.000 | % | | | 2,335,000 | | | | 1,771,798 | | |
Jackson County School District No. 549C Medford
Unlimited General Obligation Bonds
Series 2008
06/15/27 | | | 4.625 | % | | | 1,500,000 | | | | 1,571,880 | | |
06/15/28 | | | 4.625 | % | | | 1,660,000 | | | | 1,727,064 | | |
Jackson County School District No. 9 Eagle Point
Unlimited General Obligation Refunding Bonds
Series 2005 (NPFGC)
06/15/20 | | | 5.500 | % | | | 1,000,000 | | | | 1,206,480 | | |
06/15/21 | | | 5.500 | % | | | 1,410,000 | | | | 1,699,783 | | |
Josephine County School District
Unlimited General Obligation Refunding Bonds
Series 2005 (NPFGC/FGIC)
12/15/15 | | | 5.000 | % | | | 1,000,000 | | | | 1,103,260 | | |
12/15/16 | | | 5.000 | % | | | 1,000,000 | | | | 1,133,420 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Lane & Douglas Counties School District No. 45J3
Unlimited General Obligation Refunding Bonds
South Lane
Series 2012
06/15/20 | | | 3.000 | % | | | 1,000,000 | | | | 1,045,130 | | |
06/15/21 | | | 3.000 | % | | | 1,610,000 | | | | 1,651,264 | | |
Lane Community College
Unlimited General Obligation Bonds
Series 2009
06/15/17 | | | 4.250 | % | | | 2,195,000 | | | | 2,453,659 | | |
06/15/18 | | | 4.250 | % | | | 2,000,000 | | | | 2,259,400 | | |
Series 2012
06/15/23 | | | 5.000 | % | | | 1,000,000 | | | | 1,159,280 | | |
Lane County School District No. 19 Springfield
Unlimited General Obligation Refunding Bonds
Series 1997 (NPFGC/FGIC)
10/15/14 | | | 6.000 | % | | | 1,310,000 | | | | 1,396,892 | | |
Madras Aquatic Center District
Unlimited General Obligation Bonds
Series 2005
06/01/22 | | | 5.000 | % | | | 1,695,000 | | | | 1,747,138 | | |
Marion & Clackamas Counties School District No. 4J
Unlimited General Obligation Refunding Bonds
Series 2013
06/15/21 | | | 4.000 | % | | | 2,785,000 | | | | 3,057,345 | | |
Portland Community College District
Unlimited General Obligation Refunding Bonds
Series 2005 (AGM)
06/15/16 | | | 5.000 | % | | | 4,750,000 | | | | 5,130,427 | | |
Salem-Keizer School District No. 24J
Unlimited General Obligation Bonds
Series 2009A
06/15/15 | | | 4.000 | % | | | 3,850,000 | | | | 4,096,285 | | |
06/15/16 | | | 5.000 | % | | | 2,500,000 | | | | 2,791,725 | | |
Tualatin Hills Park & Recreation District
Unlimited General Obligation Refunding Bonds
Series 1998 (NPFGC/FGIC)
03/01/14 | | | 5.750 | % | | | 990,000 | | | | 1,021,779 | | |
Umatilla County School District No. 8R Hermiston
Unlimited General Obligation Bonds
Series 2010
06/15/29 | | | 4.500 | % | | | 2,360,000 | | | | 2,495,582 | | |
Washington & Clackamas Counties
School District No. 23J Tigard-Tualatin
Unlimited General Obligation Refunding Bonds
Series 2005 (NPFGC)
06/15/19 | | | 5.000 | % | | | 850,000 | | | | 998,810 | | |
06/15/21 | | | 5.000 | % | | | 6,575,000 | | | | 7,713,593 | | |
Washington & Clackamas Counties
School District No. 23J Tigard-Tualatin(a)
Limited General Obligation Bonds
Series 2000
06/15/18 | | | 0.000 | % | | | 2,700,000 | | | | 2,456,757 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
9
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Washington & Multnomah Counties
School District No 48J Beaverton
Refunding Unlimited General Obligation Bonds
Series 2012-B
06/15/23 | | | 4.000 | % | | | 3,250,000 | | | | 3,473,633 | | |
Washington Clackamas & Yamhill Counties
School District No. 88J
Unlimited General Obligation Bonds
Sherwood
Series 2007B (NPFGC)
06/15/23 | | | 4.500 | % | | | 8,124,999 | | | | 8,565,294 | | |
Washington County School District No. 1 West Union
Refunding Unlimited General Obligation Bonds
Hillsboro
Series 2012
06/15/20 | | | 4.000 | % | | | 3,400,000 | | | | 3,800,622 | | |
Washington County School District No. 1 West Union(a)
Unlimited General Obligation Bonds
Capital Appreciation-Hillsboro
Series 2006 (NPFGC)
06/15/25 | | | 0.000 | % | | | 4,065,000 | | | | 2,355,830 | | |
Washington County School District No. 15 Forest Grove
Unlimited General Obligation Bonds
Series 2012A
06/15/24 | | | 5.000 | % | | | 1,780,000 | | | | 2,019,428 | | |
Yamhill Clackamas & Washington Counties
School District No. 29J Newberg
Unlimited General Obligation Refunding Bonds
Series 2005 (NPFGC/FGIC)
06/15/21 | | | 5.500 | % | | | 1,000,000 | | | | 1,207,030 | | |
Total | | | | | | | 160,884,299 | | |
Multi-Family 1.9% | |
City of Forest Grove
Revenue Bonds
Oak Tree Foundation Project
Series 2007
03/01/37 | | | 5.500 | % | | | 4,000,000 | | | | 3,749,120 | | |
City of Portland
Revenue Bonds
Headwaters Apartments Project
Series 2005A
04/01/25 | | | 5.000 | % | | | 1,565,000 | | | | 1,672,781 | | |
Oregon State Facilities Authority
Refunding Revenue Bonds
College Housing Northwest Projects
Series 2013A
10/01/18 | | | 4.000 | % | | | 740,000 | | | | 754,164 | | |
10/01/19 | | | 4.000 | % | | | 780,000 | | | | 783,354 | | |
10/01/20 | | | 4.000 | % | | | 810,000 | | | | 798,547 | | |
10/01/22 | | | 4.000 | % | | | 875,000 | | | | 827,260 | | |
Total | | | | | | | 8,585,226 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Municipal Power 2.0% | |
City of Eugene
Refunding Revenue Bonds
Electric Utility System
Series 2011A
08/01/28 | | | 5.000 | % | | | 2,200,000 | | | | 2,366,518 | | |
08/01/29 | | | 5.000 | % | | | 3,410,000 | | | | 3,641,505 | | |
Emerald People's Utility District
Prerefunded 11/01/13 Revenue Bonds
Series 2003A (AGM)
11/01/20 | | | 5.250 | % | | | 605,000 | | | | 612,629 | | |
Refunding Revenue Bonds
Series 1996 (NPFGC/FGIC)
11/01/13 | | | 7.350 | % | | | 2,675,000 | | | | 2,720,609 | | |
Total | | | | | | | 9,341,261 | | |
Other Bond Issue 0.6% | |
Oregon State Facilities Authority
Revenue Bonds
Goodwill Industries Lane County
Series 1998A(c)(d)
11/15/22 | | | 6.650 | % | | | 2,590,000 | | | | 2,590,207 | | |
Ports 0.8% | |
Port of Morrow
Limited General Obligation Bonds
Series 2013
06/01/22 | | | 4.000 | % | | | 425,000 | | | | 426,547 | | |
06/01/23 | | | 4.000 | % | | | 440,000 | | | | 437,246 | | |
06/01/24 | | | 4.000 | % | | | 460,000 | | | | 450,501 | | |
06/01/25 | | | 4.000 | % | | | 480,000 | | | | 457,541 | | |
06/01/26 | | | 4.000 | % | | | 500,000 | | | | 465,425 | | |
06/01/27 | | | 4.000 | % | | | 515,000 | | | | 473,182 | | |
06/01/28 | | | 4.000 | % | | | 250,000 | | | | 223,295 | | |
Port of St. Helen's
Revenue Bonds
Series 1999
08/01/14 | | | 5.600 | % | | | 70,000 | | | | 70,097 | | |
08/01/19 | | | 5.750 | % | | | 425,000 | | | | 425,208 | | |
Total | | | | | | | 3,429,042 | | |
Recreation 5.1% | |
Oregon State Department of Administrative Services
Revenue Bonds
Series 2008A
04/01/24 | | | 5.000 | % | | | 3,130,000 | | | | 3,511,453 | | |
Series 2009A
04/01/21 | | | 5.000 | % | | | 5,000,000 | | | | 5,754,050 | | |
04/01/22 | | | 5.000 | % | | | 5,000,000 | | | | 5,676,400 | | |
04/01/27 | | | 5.000 | % | | | 4,000,000 | | | | 4,386,800 | | |
Series 2012B
04/01/18 | | | 3.000 | % | | | 3,600,000 | | | | 3,869,532 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
10
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Unrefunded Revenue Bonds
Series 2003A (AGM)
04/01/14 | | | 5.000 | % | | | 380,000 | | | | 383,055 | | |
Total | | | | | | | 23,581,290 | | |
Refunded / Escrowed 6.0% | |
Deschutes County Administrative
School District No. 1 Bend-La Pine
Unlimited General Obligation Bonds
Series 2007 (NPFGC/FGIC)
06/15/20 | | | 4.500 | % | | | 5,000,000 | | | | 5,648,800 | | |
Oregon State Department of Administrative Services
Certificate of Participation
Series 2007A (NPFGC/FGIC)
05/01/24 | | | 5.000 | % | | | 2,630,000 | | | | 3,008,615 | | |
05/01/25 | | | 5.000 | % | | | 2,780,000 | | | | 3,180,209 | | |
05/01/26 | | | 5.000 | % | | | 2,800,000 | | | | 3,203,088 | | |
Prerefunded 10/01/13 Revenue Bonds
Series 2003A (AGM)
04/01/14 | | | 5.000 | % | | | 1,450,000 | | | | 1,461,644 | | |
Puerto Rico Public Finance Corp.
Unrefunded Revenue Bonds
Commonwealth Appropriations
Series 2002E Escrowed to Maturity(e)
08/01/26 | | | 6.000 | % | | | 5,000,000 | | | | 6,236,150 | | |
State of Oregon
Prerefunded 08/01/014 Unlimited General
Obligation Refunding Bonds
Series 2004D
08/01/24 | | | 5.000 | % | | | 165,000 | | | | 172,885 | | |
Prerefunded 08/01/14 Unlimited General Obligation Bonds
Series 2004D
08/01/24 | | | 5.000 | % | | | 3,455,000 | | | | 3,620,114 | | |
Virgin Islands Public Finance Authority
Revenue Bonds
Series 1989A Escrowed to Maturity(e)
10/01/18 | | | 7.300 | % | | | 870,000 | | | | 1,021,806 | | |
Total | | | | | | | 27,553,311 | | |
Retirement Communities 1.4% | |
Medford Hospital Facilities Authority
Refunding Revenue Bonds
Rogue Valley Manor
Series 2013
10/01/22 | | | 5.000 | % | | | 625,000 | | | | 669,438 | | |
10/01/23 | | | 5.000 | % | | | 645,000 | | | | 686,067 | | |
10/01/24 | | | 5.000 | % | | | 455,000 | | | | 479,638 | | |
Multnomah County Hospital Facilities Authority
Refunding Revenue Bonds
Terwilliger Plaza, Inc.
Series 2012
12/01/20 | | | 5.000 | % | | | 1,250,000 | | | | 1,387,200 | | |
12/01/22 | | | 5.000 | % | | | 500,000 | | | | 538,430 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
12/01/29 | | | 5.000 | % | | | 1,200,000 | | | | 1,193,292 | | |
Revenue Bonds
Terwilliger Plaza Project
Series 2006A
12/01/26 | | | 5.250 | % | | | 1,400,000 | | | | 1,423,520 | | |
Total | | | | | | | 6,377,585 | | |
Single Family 1.9% | |
Oregon State Housing & Community Services Department
Revenue Bonds
Single Family Mortgage
Series 2008G
07/01/28 | | | 5.200 | % | | | 3,180,000 | | | | 3,301,667 | | |
Single Family Mortgage Program
Series 2010A
07/01/27 | | | 5.250 | % | | | 670,000 | | | | 722,601 | | |
Series 2011A (FHLMC)
07/01/25 | | | 5.250 | % | | | 2,370,000 | | | | 2,555,571 | | |
Series 2011B
07/01/28 | | | 5.250 | % | | | 1,820,000 | | | | 1,967,966 | | |
Total | | | | | | | 8,547,805 | | |
Special Non Property Tax 7.4% | |
Oregon Department of Transportation
Refunding Revenue Bonds
Series 2012A
11/15/22 | | | 5.000 | % | | | 5,000,000 | | | | 5,941,350 | | |
Revenue Bonds
Senior Lien
Series 2007A
11/15/16 | | | 5.000 | % | | | 6,305,000 | | | | 7,154,031 | | |
Series 2009A
11/15/27 | | | 4.750 | % | | | 7,000,000 | | | | 7,455,070 | | |
Territory of Guam
Revenue Bonds
Series 2011A(e)
01/01/31 | | | 5.000 | % | | | 1,100,000 | | | | 1,122,682 | | |
Tri-County Metropolitan Transportation District
Refunding Revenue Bonds
Limited Tax Pledge
Series 2005A (AGM)
09/01/17 | | | 5.000 | % | | | 4,250,000 | | | | 4,633,775 | | |
Revenue Bonds
Series 2009A
09/01/18 | | | 4.000 | % | | | 1,000,000 | | | | 1,124,330 | | |
09/01/21 | | | 4.250 | % | | | 1,815,000 | | | | 1,991,727 | | |
Virgin Islands Public Finance Authority
Revenue Bonds
Senior Lien-Matching Fund Loan Note
Series 2010A(e)
10/01/25 | | | 5.000 | % | | | 4,410,000 | | | | 4,632,396 | | |
Total | | | | | | | 34,055,361 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
11
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Special Property Tax 4.7% | |
City of Keizer
Special Assessment Bonds
Keizer Station Area
Series 2008A
06/01/31 | | | 5.200 | % | | | 4,180,000 | | | | 4,170,052 | | |
City of Portland
Refunding Tax Allocation Bonds
2nd Lien-Downtown
Series 2011
06/15/18 | | | 5.000 | % | | | 3,095,000 | | | | 3,542,970 | | |
Senior Lien-Oregon Convention Center
Series 2011
06/15/20 | | | 5.000 | % | | | 4,305,000 | | | | 4,942,226 | | |
Tax Allocation Bonds
Central Eastside
Series 2011B
06/15/26 | | | 5.000 | % | | | 1,580,000 | | | | 1,634,795 | | |
06/15/27 | | | 5.000 | % | | | 1,370,000 | | | | 1,403,140 | | |
Lents Town Center
Series 2010B
06/15/25 | | | 5.000 | % | | | 1,550,000 | | | | 1,651,773 | | |
06/15/26 | | | 5.000 | % | | | 1,440,000 | | | | 1,518,480 | | |
Redmond Urban Renewal Agency
Tax Allocation Bonds
Downtown Urban Renewal Area
Series 1999B
06/01/19 | | | 5.850 | % | | | 785,000 | | | | 786,711 | | |
Seaside Urban Renewal Agency
Tax Allocation Bonds
Greater Seaside Urban Renewal
Series 2001
06/01/15 | | | 5.250 | % | | | 430,000 | | | | 431,238 | | |
Veneta Urban Renewal Agency
Revenue Bonds
Urban Renewal
Series 2001
02/15/16 | | | 5.375 | % | | | 440,000 | | | | 441,065 | | |
02/15/21 | | | 5.625 | % | | | 1,100,000 | | | | 1,101,419 | | |
Total | | | | | | | 21,623,869 | | |
State Appropriated 0.7% | |
Oregon State Department of Administrative Services
Certificate of Participation
Series 2009A
05/01/23 | | | 5.000 | % | | | 3,100,000 | | | | 3,408,512 | | |
State General Obligation 0.3% | |
State of Oregon(a)
Unlimited General Obligation Bonds
State Board of Higher Education
Series 2001A
08/01/17 | | | 0.000 | % | | | 1,050,000 | | | | 991,568 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
State Higher Board of Education
Series 1996A
08/01/14 | | | 0.000 | % | | | 490,000 | | | | 488,231 | | |
Total | | | | | | | 1,479,799 | | |
Transportation 1.8% | |
Tri-County Metropolitan Transportation District
Revenue Bonds
Capital Grant Receipt
Series 2011A
10/01/25 | | | 5.000 | % | | | 4,775,000 | | | | 5,223,802 | | |
Payroll Tax and Grant Receipt
Series 2013
11/01/18 | | | 5.000 | % | | | 2,500,000 | | | | 2,830,450 | | |
Total | | | | | | | 8,054,252 | | |
Water & Sewer 6.1% | |
City of Albany
Limited General Obligation Refunding Bonds
Series 2013
08/01/22 | | | 4.000 | % | | | 1,240,000 | | | | 1,337,179 | | |
08/01/23 | | | 4.000 | % | | | 1,290,000 | | | | 1,378,107 | | |
City of Portland Sewer System
Refunding Revenue Bonds
1st Lien
Series 2008A
06/15/17 | | | 5.000 | % | | | 1,500,000 | | | | 1,717,095 | | |
Revenue Bonds
First Lien
Series 2004A (AGM)
10/01/21 | | | 4.250 | % | | | 2,500,000 | | | | 2,602,850 | | |
City of Portland Water System
Refunding Revenue Bonds
1st Lien
Series 2006B
10/01/16 | | | 5.000 | % | | | 5,330,000 | | | | 6,039,263 | | |
Revenue Bonds
Series 2004B
10/01/13 | | | 5.000 | % | | | 730,000 | | | | 735,869 | | |
City of Sutherlin Water
Revenue Bonds
BAN Series 2012
11/15/13 | | | 1.400 | % | | | 1,230,000 | | | | 1,231,255 | | |
City of Woodburn
Refunding Revenue Bonds
Series 2011A
03/01/18 | | | 3.000 | % | | | 1,115,000 | | | | 1,172,322 | | |
03/01/19 | | | 5.000 | % | | | 3,490,000 | | | | 3,997,620 | | |
03/01/22 | | | 5.000 | % | | | 4,620,000 | | | | 5,238,110 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
12
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Washington County Clean Water Services
Refunding Revenue Bonds
Senior Lien
Series 2004 (NPFGC)
10/01/13 | | | 5.000 | % | | | 2,310,000 | | | | 2,328,388 | | |
Total | | | | | | | 27,778,058 | | |
Total Municipal Bonds
(Cost: $424,962,114) | | | | | | | 440,734,653 | | |
Money Market Funds 3.0%
| | | | Shares | | Value ($) | |
Dreyfus Tax-Exempt Cash Management Fund,
0.000%(f) | | | | | 3,209,038 | | | | 3,209,038 | | |
JPMorgan Tax-Free Money Market Fund,
0.010%(f) | | | | | 10,307,302 | | | | 10,307,302 | | |
Total Money Market Funds
(Cost: $13,516,340) | | | | | | | | | | | 13,516,340 | | |
Total Investments
(Cost: $438,478,454) | | | | | | | | | | | 454,250,993 | | |
Other Assets & Liabilities, Net | | | | | | | | | | | 3,819,098 | | |
Net Assets | | | | | | | | | | | 458,070,091 | | |
Notes to Portfolio of Investments
(a) Zero coupon bond.
(b) Variable rate security.
(c) Identifies issues considered to be illiquid as to their marketability. The aggregate value of such securities at July 31, 2013 was $2,590,207, representing 0.57% of net assets. Information concerning such security holdings at July 31, 2013 is as follows:
Security Description | | Acquisition Dates | | Cost ($) | |
Oregon State Facilities Authority
Revenue Bonds
Goodwill Industries Lane County
Series 1998A
11/15/22 6.650% | | 06/17/98 | | | 2,590,000 | | |
(d) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration normally to qualified institutional buyers. At July 31, 2013, the value of these securities amounted to $2,590,207 or 0.57% of net assets.
(e) 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 July 31, 2013, the value of these securities amounted to $13,013,034 or 2.84% of net assets.
(f) The rate shown is the seven-day current annualized yield at July 31, 2013.
Abbreviation Legend
AGM Assured Guaranty Municipal Corporation
BAN Bond Anticipation Note
FGIC Financial Guaranty Insurance Company
FHLMC Federal Home Loan Mortgage Corporation
NPFGC National Public Finance Guarantee Corporation
Fair Value Measurements
Generally accepted accounting principles (GAAP) require 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.
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.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
13
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
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 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 (including NAV for open-end mutual funds). 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 carrying out the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
14
Columbia Oregon Intermediate Municipal Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
The following table is a summary of the inputs used to value the Fund's investments at July 31, 2013:
Description | | Level 1
Quoted Prices in Active
Markets for Identical
Assets ($) | | Level 2
Other Significant
Observable Inputs ($) | | Level 3
Significant
Unobservable Inputs ($) | | Total ($) | |
Bonds | |
Municipal Bonds | | | — | | | | 440,734,653 | | | | — | | | | 440,734,653 | | |
Total Bonds | | | — | | | | 440,734,653 | | | | — | | | | 440,734,653 | | |
Mutual Funds | |
Money Market Funds | | | 13,516,340 | | | | — | | | | — | | | | 13,516,340 | | |
Total Mutual Funds | | | 13,516,340 | | | | — | | | | — | | | | 13,516,340 | | |
Total | | | 13,516,340 | | | | 440,734,653 | | | | — | | | | 454,250,993 | | |
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.
There were no transfers of financial assets between Levels 1 and 2 during the period.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
15
Columbia Oregon Intermediate Municipal Bond Fund
Statement of Assets and Liabilities
July 31, 2013
Assets | |
Investments, at value | |
(identified cost $438,478,454) | | $ | 454,250,993 | | |
Receivable for: | |
Investments sold | | | 66,820 | | |
Capital shares sold | | | 1,010,050 | | |
Interest | | | 4,423,959 | | |
Expense reimbursement due from Investment Manager | | | 290 | | |
Prepaid expenses | | | 6,327 | | |
Trustees' deferred compensation plan | | | 37,839 | | |
Total assets | | | 459,796,278 | | |
Liabilities | |
Payable for: | |
Capital shares purchased | | | 448,225 | | |
Dividend distributions to shareholders | | | 1,154,190 | | |
Investment management fees | | | 5,016 | | |
Distribution and/or service fees | | | 708 | | |
Transfer agent fees | | | 50,515 | | |
Administration fees | | | 849 | | |
Chief compliance officer expenses | | | 82 | | |
Other expenses | | | 28,763 | | |
Trustees' deferred compensation plan | | | 37,839 | | |
Total liabilities | | | 1,726,187 | | |
Net assets applicable to outstanding capital stock | | $ | 458,070,091 | | |
Represented by | |
Paid-in capital | | $ | 442,022,882 | | |
Undistributed net investment income | | | 273,942 | | |
Accumulated net realized gain | | | 728 | | |
Unrealized appreciation (depreciation) on: | |
Investments | | | 15,772,539 | | |
Total — representing net assets applicable to outstanding capital stock | | $ | 458,070,091 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
16
Columbia Oregon Intermediate Municipal Bond Fund
Statement of Assets and Liabilities (continued)
July 31, 2013
Class A | |
Net assets | | $ | 35,437,833 | | |
Shares outstanding | | | 2,880,009 | | |
Net asset value per share | | $ | 12.30 | | |
Maximum offering price per share(a) | | $ | 12.71 | | |
Class B | |
Net assets | | $ | 19,319 | | |
Shares outstanding | | | 1,570 | | |
Net asset value per share(b) | | $ | 12.30 | | |
Class C | |
Net assets | | $ | 26,054,551 | | |
Shares outstanding | | | 2,117,344 | | |
Net asset value per share | | $ | 12.31 | | |
Class R4 | |
Net assets | | $ | 2,402 | | |
Shares outstanding | | | 195 | | |
Net asset value per share(b) | | $ | 12.30 | | |
Class R5 | |
Net assets | | $ | 5,376,816 | | |
Shares outstanding | | | 437,586 | | |
Net asset value per share | | $ | 12.29 | | |
Class Z | |
Net assets | | $ | 391,179,170 | | |
Shares outstanding | | | 31,789,722 | | |
Net asset value per share | | $ | 12.31 | | |
(a) The maximum offering price per share is calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge of 3.25%.
(b) Net asset value per share rounds to this amount due to fractional shares outstanding.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
17
Columbia Oregon Intermediate Municipal Bond Fund
Statement of Operations
Year Ended July 31, 2013
Net investment income | |
Income: | |
Dividends | | $ | 453 | | |
Interest | | | 17,229,858 | | |
Total income | | | 17,230,311 | | |
Expenses: | |
Investment management fees | | | 1,992,185 | | |
Distribution and/or service fees | |
Class A | | | 88,490 | | |
Class B | | | 256 | | |
Class C | | | 261,722 | | |
Transfer agent fees | |
Class A | | | 38,300 | | |
Class B | | | 28 | | |
Class C | | | 28,324 | | |
Class R4(a) | | | 1 | | |
Class R5(b) | | | 744 | | |
Class Z | | | 469,559 | | |
Administration fees | | | 336,536 | | |
Compensation of board members | | | 28,646 | | |
Custodian fees | | | 5,644 | | |
Printing and postage fees | | | 45,949 | | |
Registration fees | | | 54,697 | | |
Professional fees | | | 34,942 | | |
Chief compliance officer expenses | | | 278 | | |
Other | | | 16,533 | | |
Total expenses | | | 3,402,834 | | |
Fees waived or expenses reimbursed by Investment Manager and its affiliates | | | (298,719 | ) | |
Fees waived by Distributor — Class C | | | (91,741 | ) | |
Expense reductions | | | (780 | ) | |
Total net expenses | | | 3,011,594 | | |
Net investment income | | | 14,218,717 | | |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments | | | 27,114 | | |
Net realized gain | | | 27,114 | | |
Net change in unrealized appreciation (depreciation) on: | |
Investments | | | (25,018,472 | ) | |
Net change in unrealized appreciation (depreciation) | | | (25,018,472 | ) | |
Net realized and unrealized loss | | | (24,991,358 | ) | |
Net decrease in net assets from operations | | $ | (10,772,641 | ) | |
(a) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) Class R5 shares are for the period from November 8, 2012 (commencement of operations) to July 31, 2013.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
18
Columbia Oregon Intermediate Municipal Bond Fund
Statement of Changes in Net Assets
| | | Year Ended
July 31,
2013(a)(b) | | Year Ended
July 31,
2012(c) | | Year Ended
August 31,
2011 | |
Operations | |
Net investment income | | $ | 14,218,717 | | | $ | 13,413,010 | | | $ | 15,914,153 | | |
Net realized gain (loss) | | | 27,114 | | | | 535,433 | | | | (591,862 | ) | |
Net change in unrealized appreciation (depreciation) | | | (25,018,472 | ) | | | 16,598,058 | | | | (7,035,023 | ) | |
Net increase (decrease) in net assets resulting from operations | | | (10,772,641 | ) | | | 30,546,501 | | | | 8,287,268 | | |
Distributions to shareholders | |
Net investment income | |
Class A | | | (936,839 | ) | | | (760,753 | ) | | | (842,891 | ) | |
Class B | | | (490 | ) | | | (1,142 | ) | | | (5,973 | ) | |
Class C | | | (588,674 | ) | | | (476,170 | ) | | | (478,141 | ) | |
Class R4 | | | (26 | ) | | | — | | | | — | | |
Class R5 | | | (44,106 | ) | | | — | | | | — | | |
Class Z | | | (12,646,592 | ) | | | (12,184,086 | ) | | | (14,648,157 | ) | |
Net realized gains | |
Class A | | | — | | | | — | | | | (47,330 | ) | |
Class B | | | — | | | | — | | | | (559 | ) | |
Class C | | | — | | | | — | | | | (28,963 | ) | |
Class Z | | | — | | | | — | | | | (729,539 | ) | |
Total distributions to shareholders | | | (14,216,727 | ) | | | (13,422,151 | ) | | | (16,781,553 | ) | |
Increase (decrease) in net assets from capital stock activity | | | (10,077,577 | ) | | | 30,473,981 | | | | (41,175,886 | ) | |
Total increase (decrease) in net assets | | | (35,066,945 | ) | | | 47,598,331 | | | | (49,670,171 | ) | |
Net assets at beginning of year | | | 493,137,036 | | | | 445,538,705 | | | | 495,208,876 | | |
Net assets at end of year | | $ | 458,070,091 | | | $ | 493,137,036 | | | $ | 445,538,705 | | |
Undistributed net investment income | | $ | 273,942 | | | $ | 271,953 | | | $ | 281,094 | | |
(a) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) Class R5 shares are for the period from November 8, 2012 (commencement of operations) to July 31, 2013.
(c) For the period from September 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from August 31 to July 31.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
19
Columbia Oregon Intermediate Municipal Bond Fund
Statement of Changes in Net Assets (continued)
| | | Year Ended July 31, 2013(a)(b) | | Year Ended July 31, 2012(c) | | Year Ended August 31, 2011 | |
| | | Shares | | Dollars ($) | | Shares | | Dollars ($) | | Shares | | Dollars ($) | |
Capital stock activity | |
Class A shares | |
Subscriptions(d) | | | 919,842 | | | | 11,806,642 | | | | 949,623 | | | | 12,024,984 | | | | 890,521 | | | | 10,923,081 | | |
Distributions reinvested | | | 68,953 | | | | 883,546 | | | | 50,873 | | | | 648,392 | | | | 40,010 | | | | 489,936 | | |
Redemptions | | | (539,835 | ) | | | (6,872,443 | ) | | | (571,183 | ) | | | (7,265,228 | ) | | | (1,112,138 | ) | | | (13,574,198 | ) | |
Net increase (decrease) | | | 448,960 | | | | 5,817,745 | | | | 429,313 | | | | 5,408,148 | | | | (181,607 | ) | | | (2,161,181 | ) | |
Class B shares | |
Subscriptions | | | — | | | | — | | | | 757 | | | | 9,697 | | | | 123 | | | | 1,506 | | |
Distributions reinvested | | | 30 | | | | 382 | | | | 21 | | | | 268 | | | | 190 | | | | 2,323 | | |
Redemptions(d) | | | (1,628 | ) | | | (21,130 | ) | | | (3,917 | ) | | | (50,234 | ) | | | (25,822 | ) | | | (314,324 | ) | |
Net decrease | | | (1,598 | ) | | | (20,748 | ) | | | (3,139 | ) | | | (40,269 | ) | | | (25,509 | ) | | | (310,495 | ) | |
Class C shares | |
Subscriptions | | | 489,509 | | | | 6,310,416 | | | | 653,144 | | | | 8,312,504 | | | | 389,956 | | | | 4,799,963 | | |
Distributions reinvested | | | 40,116 | | | | 513,967 | | | | 30,427 | | | | 387,885 | | | | 21,922 | | | | 268,239 | | |
Redemptions | | | (250,653 | ) | | | (3,164,934 | ) | | | (291,973 | ) | | | (3,704,948 | ) | | | (285,063 | ) | | | (3,454,496 | ) | |
Net increase | | | 278,972 | | | | 3,659,449 | | | | 391,598 | | | | 4,995,441 | | | | 126,815 | | | | 1,613,706 | | |
Class R4 shares | |
Subscriptions | | | 194 | | | | 2,500 | | | | — | | | | — | | | | — | | | | — | | |
Distributions reinvested | | | 1 | | | | 6 | | | | — | | | | — | | | | — | | | | — | | |
Net increase | | | 195 | | | | 2,506 | | | | — | | | | — | | | | — | | | | — | | |
Class R5 shares | |
Subscriptions | | | 444,412 | | | | 5,688,910 | | | | — | | | | — | | | | — | | | | — | | |
Distributions reinvested | | | 3,519 | | | | 44,061 | | | | — | | | | — | | | | — | | | | — | | |
Redemptions | | | (10,345 | ) | | | (129,405 | ) | | | — | | | | — | | | | — | | | | — | | |
Net increase | | | 437,586 | | | | 5,603,566 | | | | — | | | | — | | | | — | | | | — | | |
Class Z shares | |
Subscriptions | | | 2,875,257 | | | | 37,029,964 | | | | 3,845,855 | | | | 48,973,355 | | | | 2,186,882 | | | | 26,859,008 | | |
Distributions reinvested | | | 711,663 | | | | 9,126,494 | | | | 690,470 | | | | 8,796,813 | | | | 915,596 | | | | 11,205,841 | | |
Redemptions | | | (5,596,320 | ) | | | (71,296,553 | ) | | | (2,955,678 | ) | | | (37,659,507 | ) | | | (6,436,980 | ) | | | (78,382,765 | ) | |
Net increase (decrease) | | | (2,009,400 | ) | | | (25,140,095 | ) | | | 1,580,647 | | | | 20,110,661 | | | | (3,334,502 | ) | | | (40,317,916 | ) | |
Total net increase (decrease) | | | (845,285 | ) | | | (10,077,577 | ) | | | 2,398,419 | | | | 30,473,981 | | | | (3,414,803 | ) | | | (41,175,886 | ) | |
(a) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) Class R5 shares are for the period from November 8, 2012 (commencement of operations) to July 31, 2013.
(c) For the period from September 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from August 31 to July 31.
(d) Includes conversions of Class B shares to Class A shares, if any.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
20
Columbia Oregon Intermediate Municipal Bond Fund
The following tables are 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, and is not annualized for periods of less than one year.
| | | Year Ended July 31, | | Year Ended August 31, | |
Class A | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | | $ | 12.02 | | |
Income from investment operations: | |
Net investment income | | | 0.34 | | | | 0.34 | | | | 0.40 | | | | 0.41 | | | | 0.45 | | | | 0.46 | | |
Net realized and unrealized gain (loss) | | | (0.65 | ) | | | 0.46 | | | | (0.15 | ) | | | 0.51 | | | | 0.09 | | | | 0.05 | | |
Total from investment operations | | | (0.31 | ) | | | 0.80 | | | | 0.25 | | | | 0.92 | | | | 0.54 | | | | 0.51 | | |
Less distributions to shareholders: | |
Net investment income | | | (0.34 | ) | | | (0.34 | ) | | | (0.41 | ) | | | (0.42 | ) | | | (0.45 | ) | | | (0.46 | ) | |
Net realized gains | | | — | | | | — | | | | (0.02 | ) | | | — | | | | — | | | | — | | |
Total distributions to shareholders | | | (0.34 | ) | | | (0.34 | ) | | | (0.43 | ) | | | (0.42 | ) | | | (0.45 | ) | | | (0.46 | ) | |
Proceeds from regulatory settlements | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | |
Net asset value, end of period | | $ | 12.30 | | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | |
Total return | | | (2.47 | %) | | | 6.50 | % | | | 2.07 | % | | | 7.68 | % | | | 4.70 | % | | | 4.31 | % | |
Ratios to average net assets(b) | |
Total gross expenses | | | 0.86 | % | | | 0.86 | %(c) | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % | | | 0.87 | % | |
Total net expenses(d) | | | 0.80 | %(e) | | | 0.79 | %(c)(e) | | | 0.80 | %(e) | | | 0.78 | %(e) | | | 0.75 | %(e) | | | 0.77 | %(e) | |
Net investment income | | | 2.65 | % | | | 2.92 | %(c) | | | 3.28 | % | | | 3.35 | % | | | 3.74 | % | | | 3.78 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 35,438 | | | $ | 31,484 | | | $ | 24,998 | | | $ | 27,661 | | | $ | 15,507 | | | $ | 10,210 | | |
Portfolio turnover | | | 15 | % | | | 9 | % | | | 13 | % | | | 12 | % | | | 8 | % | | | 5 | % | |
Notes to Financial Highlights
(a) For the period from September 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from August 31 to July 31.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment manager and certain of its affiliates, if applicable.
(e) 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.
Annual Report 2013
21
Columbia Oregon Intermediate Municipal Bond Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended August 31, | |
Class B | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | | $ | 12.02 | | |
Income from investment operations: | |
Net investment income | | | 0.25 | | | | 0.26 | | | | 0.32 | | | | 0.33 | | | | 0.36 | | | | 0.37 | | |
Net realized and unrealized gain (loss) | | | (0.66 | ) | | | 0.45 | | | | (0.17 | ) | | | 0.49 | | | | 0.09 | | | | 0.05 | | |
Total from investment operations | | | (0.41 | ) | | | 0.71 | | | | 0.15 | | | | 0.82 | | | | 0.45 | | | | 0.42 | | |
Less distributions to shareholders: | |
Net investment income | | | (0.24 | ) | | | (0.25 | ) | | | (0.31 | ) | | | (0.32 | ) | | | (0.36 | ) | | | (0.37 | ) | |
Net realized gains | | | — | | | | — | | | | (0.02 | ) | | | — | | | | — | | | | — | | |
Total distributions to shareholders | | | (0.24 | ) | | | (0.25 | ) | | | (0.33 | ) | | | (0.32 | ) | | | (0.36 | ) | | | (0.37 | ) | |
Proceeds from regulatory settlements | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | |
Net asset value, end of period | | $ | 12.30 | | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | |
Total return | | | (3.19 | %) | | | 5.77 | % | | | 1.30 | % | | | 6.88 | % | | | 3.92 | % | | | 3.56 | % | |
Ratios to average net assets(b) | |
Total gross expenses | | | 1.61 | % | | | 1.61 | %(c) | | | 1.66 | % | | | 1.64 | % | | | 1.64 | % | | | 1.62 | % | |
Total net expenses(d) | | | 1.55 | %(e) | | | 1.54 | %(c)(e) | | | 1.55 | %(e) | | | 1.53 | %(e) | | | 1.50 | %(e) | | | 1.52 | %(e) | |
Net investment income | | | 1.91 | % | | | 2.22 | %(c) | | | 2.57 | % | | | 2.66 | % | | | 3.02 | % | | | 3.08 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 19 | | | $ | 41 | | | $ | 79 | | | $ | 403 | | | $ | 641 | | | $ | 570 | | |
Portfolio turnover | | | 15 | % | | | 9 | % | | | 13 | % | | | 12 | % | | | 8 | % | | | 5 | % | |
Notes to Financial Highlights
(a) For the period from September 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from August 31 to July 31.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment manager and certain of its affiliates, if applicable.
(e) 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.
Annual Report 2013
22
Columbia Oregon Intermediate Municipal Bond Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended Aug. 31, | |
Class C | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | | $ | 12.02 | | |
Income from investment operations: | |
Net investment income | | | 0.29 | | | | 0.29 | | | | 0.35 | | | | 0.37 | | | | 0.40 | | | | 0.41 | | |
Net realized and unrealized gain (loss) | | | (0.64 | ) | | | 0.46 | | | | (0.15 | ) | | | 0.50 | | | | 0.09 | | | | 0.05 | | |
Total from investment operations | | | (0.35 | ) | | | 0.75 | | | | 0.20 | | | | 0.87 | | | | 0.49 | | | | 0.46 | | |
Less distributions to shareholders: | |
Net investment income | | | (0.29 | ) | | | (0.29 | ) | | | (0.36 | ) | | | (0.37 | ) | | | (0.40 | ) | | | (0.41 | ) | |
Net realized gains | | | — | | | | — | | | | (0.02 | ) | | | — | | | | — | | | | — | | |
Total distributions to shareholders | | | (0.29 | ) | | | (0.29 | ) | | | (0.38 | ) | | | (0.37 | ) | | | (0.40 | ) | | | (0.41 | ) | |
Proceeds from regulatory settlements | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | |
Net asset value, end of period | | $ | 12.31 | | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | |
Total return | | | (2.78 | %) | | | 6.10 | % | | | 1.65 | % | | | 7.25 | % | | | 4.28 | % | | | 3.88 | % | |
Ratios to average net assets(b) | |
Total gross expenses | | | 1.61 | % | | | 1.61 | %(c) | | | 1.64 | % | | | 1.64 | % | | | 1.64 | % | | | 1.62 | % | |
Total net expenses(d) | | | 1.20 | %(e) | | | 1.19 | %(c)(e) | | | 1.19 | %(e) | | | 1.18 | %(e) | | | 1.15 | %(e) | | | 1.17 | %(e) | |
Net investment income | | | 2.25 | % | | | 2.51 | %(c) | | | 2.88 | % | | | 2.96 | % | | | 3.34 | % | | | 3.36 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 26,055 | | | $ | 23,812 | | | $ | 18,069 | | | $ | 16,722 | | | $ | 11,332 | | | $ | 7,847 | | |
Portfolio turnover | | | 15 | % | | | 9 | % | | | 13 | % | | | 12 | % | | | 8 | % | | | 5 | % | |
Notes to Financial Highlights
(a) For the period from September 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from August 31 to July 31.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(e) 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.
Annual Report 2013
23
Columbia Oregon Intermediate Municipal Bond Fund
Financial Highlights (continued)
Class R4 | | Year Ended
July 31,
2013(a) | |
Per share data | |
Net asset value, beginning of period | | $ | 12.83 | | |
Income from investment operations: | |
Net investment income | | | 0.13 | | |
Net realized and unrealized loss | | | (0.53 | ) | |
Total from investment operations | | | (0.40 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.13 | ) | |
Total distributions to shareholders | | | (0.13 | ) | |
Net asset value, end of period | | $ | 12.30 | | |
Total return | | | (3.13 | %) | |
Ratios to average net assets(b) | |
Total gross expenses | | | 0.58 | %(c) | |
Total net expenses(d) | | | 0.56 | %(c) | |
Net investment income | | | 2.92 | %(c) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 2 | | |
Portfolio turnover | | | 15 | % | |
Notes to Financial Highlights
(a) For the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment manager and certain of its affiliates, if applicable.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
24
Columbia Oregon Intermediate Municipal Bond Fund
Financial Highlights (continued)
Class R5 | | Year Ended
July 31,
2013(a) | |
Per share data | |
Net asset value, beginning of period | | $ | 12.99 | | |
Income from investment operations: | |
Net investment income | | | 0.27 | | |
Net realized and unrealized loss | | | (0.70 | ) | |
Total from investment operations | | | (0.43 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.27 | ) | |
Total distributions to shareholders | | | (0.27 | ) | |
Net asset value, end of period | | $ | 12.29 | | |
Total return | | | (3.38 | %) | |
Ratios to average net assets(b) | |
Total gross expenses | | | 0.55 | %(c) | |
Total net expenses(d) | | | 0.54 | %(c) | |
Net investment income | | | 2.97 | %(c) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 5,377 | | |
Portfolio turnover | | | 15 | % | |
Notes to Financial Highlights
(a) For the period from November 8, 2012 (commencement of operations) to July 31, 2013.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment manager and certain of its affiliates, if applicable.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
25
Columbia Oregon Intermediate Municipal Bond Fund
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended August 31, | |
Class Z | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | | $ | 12.02 | | |
Income from investment operations: | |
Net investment income | | | 0.37 | | | | 0.37 | | | | 0.43 | | | | 0.45 | | | | 0.48 | | | | 0.49 | | |
Net realized and unrealized gain (loss) | | | (0.64 | ) | | | 0.46 | | | | (0.15 | ) | | | 0.50 | | | | 0.09 | | | | 0.05 | | |
Total from investment operations | | | (0.27 | ) | | | 0.83 | | | | 0.28 | | | | 0.95 | | | | 0.57 | | | | 0.54 | | |
Less distributions to shareholders: | |
Net investment income | | | (0.37 | ) | | | (0.37 | ) | | | (0.44 | ) | | | (0.45 | ) | | | (0.48 | ) | | | (0.49 | ) | |
Net realized gains | | | — | | | | — | | | | (0.02 | ) | | | — | | | | — | | | | — | | |
Total distributions to shareholders | | | (0.37 | ) | | | (0.37 | ) | | | (0.46 | ) | | | (0.45 | ) | | | (0.48 | ) | | | (0.49 | ) | |
Proceeds from regulatory settlements | | | — | | | | — | | | | — | | | | — | | | | 0.01 | | | | — | | |
Net asset value, end of period | | $ | 12.31 | | | $ | 12.95 | | | $ | 12.49 | | | $ | 12.67 | | | $ | 12.17 | | | $ | 12.07 | | |
Total return | | | (2.14 | %) | | | 6.73 | % | | | 2.31 | % | | | 7.95 | % | | | 4.96 | % | | | 4.59 | % | |
Ratios to average net assets(b) | |
Total gross expenses | | | 0.61 | % | | | 0.61 | %(c) | | | 0.64 | % | | | 0.64 | % | | | 0.64 | % | | | 0.62 | % | |
Total net expenses(d) | | | 0.55 | %(e) | | | 0.54 | %(c)(e) | | | 0.55 | %(e) | | | 0.53 | %(e) | | | 0.50 | %(e) | | | 0.52 | %(e) | |
Net investment income | | | 2.90 | % | | | 3.17 | %(c) | | | 3.53 | % | | | 3.63 | % | | | 4.02 | % | | | 4.07 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 391,179 | | | $ | 437,800 | | | $ | 402,393 | | | $ | 450,422 | | | $ | 416,275 | | | $ | 381,162 | | |
Portfolio turnover | | | 15 | % | | | 9 | % | | | 13 | % | | | 12 | % | | | 8 | % | | | 5 | % | |
Notes to Financial Highlights
(a) For the period from September 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from August 31 to July 31.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Total net expenses include the impact of certain waivers/reimbursements made by the Investment manager and certain of its affiliates, if applicable.
(e) 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.
Annual Report 2013
26
Columbia Oregon Intermediate Municipal Bond Fund
Notes to Financial Statements
July 31, 2013
Note 1. Organization
Columbia Oregon Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund Shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers Class A, Class B, Class C, Class R4, Class R5 and Class Z shares. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by law. Different share classes pay different distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense structure and sales charges, as applicable.
Class A shares are subject to a maximum front-end sales charge of 3.25% based on the initial investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a contingent deferred sales charge (CDSC) if the shares are sold within 18 months of purchase, charged as follows: 1.00% CDSC if redeemed within 12 months of purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase.
Class B shares may be subject to a maximum CDSC of 3.00% based upon the holding period after purchase. Class B shares will generally convert to Class A shares eight years after purchase. The Fund no longer accepts investments by new or existing investors in the Fund's Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of the Fund and exchanges by existing Class B shareholders of certain other funds within the Columbia Family of Funds.
Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.
Class R4 shares are not subject to sales charges and are generally available only to omnibus retirement plans and certain other eligible investors. Class R4 shares commenced operations on March 19, 2013.
Class R5 shares are not subject to sales charges and are generally available only to investors purchasing through authorized investment professionals and omnibus retirement plans. Class R5 shares commenced operations on November 8, 2012.
Class Z shares are not subject to sales charges and are available only to certain eligible investors, which are subject to different investment minimums.
Note 2. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently 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 (the Board) based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available may also be valued based upon an over-the-counter (OTC) or exchange bid quotation.
Investments in open-end investment companies, including money market funds, are valued at net asset value.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board. 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 last quoted market price for the security.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
Security Transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific
Annual Report 2013
27
Columbia Oregon Intermediate Municipal Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
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.
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 tax exempt income (including net short-term capital gains), 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 net investment income, capital gains 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.
Recent Accounting Pronouncement
Disclosures about Offsetting Assets and Liabilities
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11, Disclosures about Offsetting Assets and Liabilities and in January 2013, ASU No. 2013-1, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (collectively, the ASUs). Specifically, the ASUs require an entity to disclose both gross and net information for derivatives and other financial instruments that are subject to a master netting arrangement or similar agreement. The ASUs require disclosure of collateral received in connection with the master netting agreements or similar agreements. The disclosure requirements are effective for interim and annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Note 3. Fees and Compensation Paid to Affiliates
Investment Management Fees
Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), determines which securities will be purchased, held or sold. The investment management fee is an annual fee that is equal to a percentage of the Fund's average daily net assets that declines from 0.40% to 0.27% as the Fund's net assets increase. The effective investment management fee rate for the year ended July 31, 2013 was 0.40% of the Fund's average daily net assets.
Administration Fees
Under an Administrative Services Agreement, the Investment Manager also serves as the Fund Administrator. The Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a percentage of the Fund's average daily net assets that declines from 0.07% to 0.04% as the Fund's net assets increase. The effective administration fee rate for the year ended July 31, 2013 was 0.07% of the Fund's average daily net assets.
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Columbia Oregon Intermediate Municipal Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
Compensation of Board Members
Board members are compensated for their services to the Fund as disclosed in the Statement of Operations. The Trust's eligible Trustees may participate in a Deferred Compensation Plan (the Plan) which may be terminated at any time. Obligations of the Plan will be paid solely out of the Fund's assets.
Compensation of Chief Compliance Officer
The Board has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund pays its pro-rata share of the expenses associated with the Chief Compliance Officer. The Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.
Transfer Agent 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 Boston Financial Data Services (BFDS) to serve as sub-transfer agent.
The Transfer Agent receives monthly account-based service fees based on the number of open accounts and also receives sub-transfer agency fees based on a percentage of the average aggregate value of the Fund's shares maintained in omnibus accounts (other than omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are paid a per account fee). The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Transfer Agent also receives compensation from fees for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agent fees for Class R5 shares are subject to an annual limitation of not more than 0.05% of the average daily net assets attributable to Class R5 shares.
For the year ended July 31, 2013, the Fund's effective transfer agent fee rates as a percentage of average daily net assets of each class were as follows:
Class A | | | 0.11 | % | |
Class B | | | 0.11 | | |
Class C | | | 0.11 | | |
Class R4 | | | 0.13 | * | |
Class R5 | | | 0.05 | * | |
Class Z | | | 0.11 | | |
*Annualized.
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class' initial minimum investment requirements to reduce the impact of small accounts on transfer agent fees. These minimum account balance fees are recorded as part of expense reductions in the Statement of Operations. For the year ended July 31, 2013, these minimum account balance fees reduced total expenses by $780.
Distribution and Service Fees
The Fund has 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. Pursuant to Rule 12b-1 under the 1940 Act, the Board has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) 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.
The Plans require the payment of a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A, Class B and Class C shares of the Fund. The Plans also require the payment of a monthly distribution fee to the Distributor at the maximum annual rates of 0.10%, 0.75% and 0.75% of the average daily net assets attributable to Class A, Class B and Class C shares, respectively.
The Fund may pay distribution and service fees up to a maximum annual rate of 0.35% of the Fund's average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for shareholder liaison services), but currently limit such fees to an aggregate fee of not more than 0.25% of the Fund's average daily net assets attributable to Class A shares.
The Distributor has voluntarily agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.40% annually of the average daily net assets attributable to Class C shares. This arrangement may be modified or terminated by the Distributor at any time.
Sales Charges
Sales charges, including front-end charges and CDSCs, received by the Distributor for distributing Fund shares were $118,115 for Class A and $1,685 for Class C shares for the year ended July 31, 2013.
Annual Report 2013
29
Columbia Oregon Intermediate Municipal Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
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 periods disclosed below, unless sooner terminated at the sole discretion of the Board, 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 rates as a percentage of the class' average daily net assets:
| | | January 1, 2013
through
November 30, 2013 | | Prior to
January 1, 2013 | |
Class A | | | 0.81 | % | | | 0.79 | % | |
Class B | | | 1.56 | | | | 1.54 | | |
Class C | | | 1.56 | | | | 1.54 | | |
Class R4 | | | 0.56 | * | | | — | | |
Class R5 | | | 0.54 | | | | 0.55 | | |
Class Z | | | 0.56 | | | | 0.54 | | |
*Annual rate is contractual from March 19, 2013 (the commencement of operations of Class R4 shares) through February 28, 2014.
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, extraordinary expenses and any other expenses the exclusion of which is specifically approved by the Board. This agreement may be modified or amended only with approval from all parties. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
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 July 31, 2013, these differences are primarily due to differing treatment for Trustees' deferred compensation,
distribution reclassifications, and market discount/premium. To the extent these differences are permanent, reclassifications are made among the components of the Fund's net assets in the Statement of Assets and Liabilities. Temporary differences do not require reclassifications. In the Statement of Assets and Liabilities the following reclassifications were made:
Undistributed net investment income | | ($ | 1 | ) | |
Accumulated net realized [gain/loss] | | | 1 | | |
Net investment income 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
July 31,
2013 | | Year Ended
July 31,
2012 | | Year Ended
July31,
2011 | |
Tax Exempt Income | | $ | 14,208,209 | | | $ | 13,422,151 | | | $ | 15,996,772 | | |
Ordinary income | | | 8,518 | | | | — | | | | — | | |
Long-term capital gains | | | — | | | | — | | | | 784,781 | | |
Total | | $ | 14,216,727 | | | $ | 13,422,151 | | | $ | 16,781,553 | | |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2013, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | | $ | 1,461,721 | | |
Undistributed accumulated long-term gain | | | 728 | | |
Unrealized appreciation | | | 15,776,789 | | |
At July 31, 2013, the cost of investments for federal income tax purposes was $438,474,204 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation | | $ | 21,330,638 | | |
Unrealized depreciation | | | (5,553,849 | ) | |
Net unrealized appreciation | | | 15,776,789 | | |
For the year ended July 31, 2013, $26,386 of capital loss carryforward was utilized.
Management of the Fund has concluded that there are no significant uncertain tax positions 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
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30
Columbia Oregon Intermediate Municipal Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
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 obligations, aggregated to $71,000,982 and $78,649,880, respectively, for the year ended July 31, 2013.
Note 6. Shareholder Concentration
At July 31, 2013, one unaffiliated shareholder account owned 14.4% of the outstanding shares of the Fund. The Fund has no knowledge about whether any portion of those shares was owned beneficially by such account. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund.
Note 7. Line of Credit
The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility agreement, as amended, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $500 million. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 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 amount of the credit facility at a rate of 0.08% per annum. The commitment fee is included in other expenses in the Statement of Operations.
The Fund had no borrowings during the year ended July 31, 2013.
Note 8. Significant Risks
Geographic Concentration Risk
Because state-specific tax-exempt funds invest primarily in the municipal securities issued by the state and political sub-divisions of the state, the Fund will be particularly affected by political and economic conditions and developments in the state in which it invests. The Fund may, therefore, have a greater risk than that of a municipal bond fund which is more geographically diversified. The value of the municipal securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
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
In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)) entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds' Boards of Trustees.
Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Funds are 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 Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission 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 Funds. Further, although we believe
Annual Report 2013
31
Columbia Oregon Intermediate Municipal Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, 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.
Annual Report 2013
32
Columbia Oregon Intermediate Municipal Bond Fund
Report of Independent Registered Public Accounting Firm
To the Trustees of Columbia Funds Series Trust I and the Shareholders of Columbia Oregon Intermediate Municipal Bond Fund
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Oregon Intermediate Municipal Bond Fund (the "Fund") (a series of Columbia Funds Series Trust I) at July 31, 2013, the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2013 by correspondence with the custodian and transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 20, 2013
Annual Report 2013
33
Columbia Oregon Intermediate Municipal Bond Fund
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2013. Shareholders will be notified in early 2014 of amounts for use in preparing 2013 income tax returns
Tax Designations
Capital Gain Dividend | | $ | 764 | | |
| Exempt-Interest Dividends | | | 99.94 | % | |
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. The Fund also designates as capital gain dividends, to the extent necessary to fully distribute such capital gains, earnings and profits distributed to shareholders on the redemption of shares.
Exempt-Interest Dividends. The percentage of net investment income dividends paid during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes.
Annual Report 2013
34
Columbia Oregon Intermediate Municipal Bond Fund
The Trustees serve terms of indefinite duration. The names, addresses and birth years of the Trustees and Officers of the Funds in Columbia Funds Series Trust I, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of Funds overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in Columbia Funds Series Trust I.
Independent Trustees
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Rodman L. Drake (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) and
Chairman of the Board (since 2009) | | Independent consultant since 2010; Co-Founder of Baringo Capital LLC (private equity) from 1997 to 2008; Chairman (from 2003 to 2010) and CEO (from 2008 to 2010) of Crystal River Capital, Inc. (real estate investment trust); Oversees 52; Jackson Hewitt Tax Service Inc. (tax preparation services) from 2004 to 2011; Student Loan Corporation (student loan provider) from 2005 to 2010; Celgene Corporation (global biotechnology company); The Helios Funds and Brookfield Funds (closed-end funds); Chimerix, Inc. (biopharmaceutical company) since August 1, 2013; Crystal River Capital, Inc. from 2005 to 2010; Parsons Brinckerhoff from 1995 to 2008; and Apex Silver Mines Ltd. from 2007 to 2009 | |
Douglas A. Hacker (Born 1955)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Independent business executive since May 2006; Executive Vice President — Strategy of United Airlines from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 52; Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing); and SeaCube Container Leasing Ltd. (container leasing) | |
Janet Langford Kelly (Born 1957)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel — Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University from September 2004 to June 2006; Director, UAL Corporation (airline) from February 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer goods) from September 2003 to March 2004. Oversees 52; None | |
Nancy T. Lukitsh (Born 1956)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser) from 1997 to 2010; Chair, Wellington Management Investment Portfolios (commingled non-U.S. investment pools) from 2007 to 2010; Director, Wellington Trust Company, NA and other Wellington affiliates from 1997 to 2010. Oversees 52; None | |
William E. Mayer (Born 1940)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) | | Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business and Management, University of Maryland from 1992 to 1996. Oversees 52; DynaVox Inc. (speech creation); Lee Enterprises (print media); WR Hambrecht + Co. (financial service provider) from 2000 to 2012; BlackRock Kelso Capital Corporation (investment company) | |
David M. Moffett (Born 1952)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Retired. Chief Executive Officer, Federal Home Loan Mortgage Corporation, from 2008 to 2009; Senior Adviser, Global Financial Services Group, Carlyle Group, Inc., from 2007 to 2008; Vice Chairman and Chief Financial Officer, U.S. Bancorp, from 1993 to 2007. Oversees 52; CIT Group Inc. (commercial and consumer finance); eBay Inc. (online trading community); MBIA Inc. (financial service provider); E.W. Scripps Co. (print and television media), Building Materials Holding Corp. (building materials and construction services); Genworth Financial, Inc. (financial and insurance products and services); and University of Oklahoma Foundation. | |
Charles R. Nelson (Born 1942)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1981) | | Retired. Professor Emeritus, University of Washington, since 2011; Professor of Economics, University of Washington from January 1976 to 2011; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington from 1993 to 2011; Adjunct Professor of Statistics, University of Washington from 1980 to 2011; Associate Editor, Journal of Money, Credit and Banking from September 1993 to 2008; consultant on econometric and statistical matters. Oversees 52; None | |
John J. Neuhauser (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1984) | | President, Saint Michael's College, since August 2007; Director or Trustee of several non-profit organizations, including Fletcher Allen Health Care, Inc.; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October 2005. Oversees 52; Liberty All-Star Equity Fund and Liberty All-Star Growth Fund (closed-end funds) | |
Annual Report 2013
35
Columbia Oregon Intermediate Municipal Bond Fund
Trustees and Officers (continued)
Independent Trustees (continued)
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Patrick J. Simpson (Born 1944)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2000) | | Partner, Perkins Coie LLP (law firm). Oversees 52; None | |
Anne-Lee Verville (Born 1945)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1998) | | Retired. General Manager — Global Education Industry from 1994 to 1997, President — Application Systems Division from 1991 to 1994, Chief Financial Officer — US Marketing & Services from 1988 to 1991, and Chief Information Officer from 1987 to 1988, IBM Corporation (computer and technology). Oversees 52; Enesco Group, Inc. (producer of giftware and home and garden decor products) from 2001 to 2006 | |
Interested Trustee
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
William F. Truscott (born 1960)
53600 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President (since 2012) | | President and Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 and February 2012, respectively (previously President and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously, Chief Executive Officer, U.S. Asset Management & President, Annuities, from May 2010 to September 2012 and President — U.S. Asset Management and Chief Investment Officer from 2005 to April 2010); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively (previously Chairman of the Board and Chief Executive Officer from 2006 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006; President and Chief Executive Officer, Ameriprise Certificate Company, 2006 to August 2012; Oversees 184; Director, Ameriprise Certificate Company, 2006-January 2013 | |
The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800.345.6611.
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. In addition to Mr. Truscott, who is Senior Vice President, the Funds' other officers are:
Officers
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
J. Kevin Connaughton (Born 1964)
225 Franklin Street
Boston, MA 02110
President (since 2009) | | Senior Vice President and General Manager — Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds since 2009 and RiverSource Funds since May 2010; Managing Director, Columbia Management Advisors, LLC, December 2004-April 2010; Senior Vice President and Chief Financial Officer, Columbia Funds, June 2008-January 2009; Treasurer, Columbia Funds, October 2003-May 2008; and senior officer of various other affiliated funds since 2000 | |
Amy Johnson (Born 1965)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) | | Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009-April 2010, Vice President — Asset Management and Trust Company Services, from 2006-2009) | |
Michael G. Clarke (Born 1969)
225 Franklin Street
Boston, MA 02110
Treasurer (since 2011) and Chief
Financial Officer (since 2009) | | Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, September 2004-April 2010; senior officer of Columbia Funds and affiliated funds since 2002 | |
Annual Report 2013
36
Columbia Oregon Intermediate Municipal Bond Fund
Trustees and Officers (continued)
Officers (continued)
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
Scott R. Plummer (Born 1959)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President, Assistant
Secretary and Chief Legal Officer
(since 2010) | | Senior Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Senior Vice President and Lead Chief Counsel — Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel — Asset Management, 2005-April 2010); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; senior officer of Columbia Funds and affiliated funds since 2010 | |
Colin Moore (Born 1958)
225 Franklin Street
Boston, MA 02110
Senior Vice President (since 2010) | | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc. since July 2013; Director and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC, 2007-April 2010 | |
Thomas P. McGuire (Born 1972)
225 Franklin Street
Boston, MA 02110
Chief Compliance Officer
(since 2012) | | Vice President — Asset Management Compliance, Columbia Management Investment Advisers, LLC since 2010; Chief Compliance Officer, Ameriprise Certificate Company, since September 2010; Compliance Executive, Bank of America, N.A. 2005-2010 | |
Stephen T. Welsh (born 1957)
225 Franklin Street
Boston, MA 02110
Vice President (since 2006) | | President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc., July 2004-April 2010; Managing Director, Columbia Management Distributors, Inc., August 2007-April 2010 | |
Christopher O. Petersen (born 1970)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) and
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since January 2010 (formerly Vice President and Group Counsel or Counsel, April 2004-January 2010); Assistant Secretary of Columbia Funds, January 2007-April 2011 | |
Paul D. Pearson (born 1956)
10468 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President and Assistant
Treasurer (since 2011) | | Vice President, Investment Accounting, Columbia Management Investment Advisers, LLC, since May 2010; Vice President — Managed Assets, Investment Accounting, Ameriprise Financial, Inc., February 1998-May 2010 | |
Joseph F. DiMaria (Born 1968)
225 Franklin Street
Boston, MA 02110
Vice President (since 2011) and
Chief Accounting Officer (since 2008) | | Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, January 2006-April 2010 | |
Paul B. Goucher (born 1968)
100 Park Avenue
New York, NY 10017
Vice President and Assistant
Secretary (since 2010) | | Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since November 2008 and January 2013, respectively (formerly, Chief Counsel from January 2010-January 2013 and Group Counsel from November 2008-January 2010); Director, Managing Director and General Counsel, J. & W. Seligman & Co. Incorporated, July 2008-November 2008 (previously, Managing Director and Associate General Counsel, January 2005-July 2008) | |
Michael E. DeFao (born 1968)
225 Franklin Street
Boston, MA 02110
Vice President and Assistant
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Associate General Counsel, Bank of America, N.A. June 2005-April 2010 | |
Annual Report 2013
37
Columbia Oregon Intermediate Municipal Bond Fund
Board Consideration and Approval of
Advisory Agreement
On June 14, 2013, the Board of Trustees (the "Board") and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) of the Trust (the "Independent Trustees") unanimously approved the continuation of the Investment Management Services Agreement (the "Advisory Agreement") with Columbia Management Investment Advisers, LLC (the "Investment Manager") with respect to Columbia Oregon Intermediate Municipal Bond Fund (the "Fund"), a series of the Trust. As detailed below, the Advisory Fees and Expenses Committee (the "Committee") and the Board met on multiple occasions to review and discuss, both among themselves and with the management team of the Investment Manager, materials provided by the Investment Manager before determining to approve the continuation of the Advisory Agreement.
In connection with their deliberations regarding the continuation of the Advisory Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Advisory Agreement, and discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2013, April 24, 2013 and June 13, 2013, and at the Board meeting held on June 14, 2013. In addition, the Board considers matters bearing on the Advisory Agreement at most of its other meetings throughout the year and meets regularly with senior management of the Funds and the Investment Manager. Through the Board's Investment Oversight Committees, Trustees also meet with selected Fund portfolio managers and other investment personnel at various times throughout the year. The Committee and the Board also consulted with Fund counsel and with the Independent Trustees' independent legal counsel, who advised on various matters with respect to the Committee's and the Board's considerations and otherwise assisted the Committee and the Board in their deliberations. On June 13, 2013, the Committee recommended that the Board approve the continuation of the Advisory Agreement. On June 14, 2013, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement for the Fund.
The Committee and the Board considered all information that they, their legal counsel, or the Investment Manager believed reasonably necessary to evaluate and to determine whether to approve the continuation of the Advisory Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Advisory Agreement for the Fund included the following:
• Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks;
• Information on the Fund's advisory fees and total expenses, including information comparing the Fund's expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider;
• 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 extraordinary expenses) would not exceed the median expenses of a group of comparable funds (as determined from time to time, generally annually, by the independent third-party data provider);
• The terms and conditions of the Advisory Agreement;
• The terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including the Administrative Services Agreement, the Distribution Agreement and the Transfer and Dividend Disbursing Agent Agreement;
• Descriptions of various functions performed by the Investment Manager under the Advisory Agreement, including portfolio management and portfolio trading practices;
• Information regarding the management fees and investment performance of comparable portfolios of other clients of the Investment Manager, including institutional separate accounts;
• Information regarding the reputation, regulatory history and 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, including an assessment of the Investment Manager's compliance system by the Fund's Chief Compliance Officer; and
• The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
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Columbia Oregon Intermediate Municipal Bond Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Nature, Extent and Quality of Services Provided under the Advisory Agreement
The Committee and the Board considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Advisory Agreement and under separate agreements for the provision of transfer agency and administrative services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment Manager's ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager's investment research capabilities and trade execution services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager's experience with similarly-structured funds. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager and its affiliates, and considered the Investment Manager's ability to provide administrative services to the Fund pursuant to a separate Administrative Services Agreement, including the Investment Manager's ability to coordinate the activities of the Fund's other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Advisory Agreement supported the continuation of the Advisory Agreement.
Investment Performance
The Committee and the Board reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks and information based on reports of the independent third-party data provider that compared the performance of the Fund to the performance of a group of comparable mutual funds. The Committee and the Board also reviewed a description of the third party's methodology for identifying the Fund's peer groups for purposes of performance and expense comparisons. Although the Fund's performance lagged that of a relevant peer group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to warrant continuation of the Fund's Advisory Agreement. Those factors included one or more of the following: (i) that the Fund's performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund's investment strategy and policies and that the Fund was performing within a reasonable range of expectations, given those investment decisions, market conditions and the Fund's investment strategy; (iii) that the Fund's performance was competitive when compared to other relevant performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund's investment performance, including, but not limited to, replacing portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted that, through December 31, 2012, the Fund's performance was in the 33rd, 44th and 52nd percentile (where the best performance would be in the first percentile) of its category selected by the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five- year periods, respectively.
The Committee and the Board also considered the Investment Manager's performance and reputation generally, the Investment Manager's historical responsiveness to Board concerns about performance, and the Investment Manager's willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager was sufficient, in light of other considerations, to warrant the continuation of the Advisory Agreement.
Investment Advisory Fee Rates and Other Expenses
The Committee and the Board considered the advisory fees charged to the Fund under the Advisory Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Advisory Agreement, the
Annual Report 2013
39
Columbia Oregon Intermediate Municipal Bond Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Committee and the Board considered, among other information, the Fund's advisory fee and its total expense ratio as a percentage of average daily net assets. The Committee and the Board noted that Columbia Oregon Intermediate Municipal Bond Fund's actual management fee and net expense ratio are both ranked in the second quintile (where the lowest fees and expenses would be in the first quintile) against the Fund's expense universe as determined by the independent third-party data provider for purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also received and considered information about the advisory fees charged by the Investment Manager to institutional separate accounts. In considering the fees charged to those accounts, the Committee and the Board took into account, among other things, the Investment Manager's representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. In evaluating the Fund's advisory fees, the Committee and the Board also took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the advisory fee rates and expenses of the Fund supported the continuation of the Advisory Agreement.
Costs of Services Provided and Profitability
The Committee and the Board also took note of the costs of the services provided (both on an absolute and relative basis) and the profitability to the Investment Manager and its affiliates in connection with their relationships with the Fund. In evaluating these considerations, the Committee and the Board took note of the advisory fees charged by the Investment Manager to other clients, including fees charged by the Investment Manager to institutional separate account clients with similar investment strategies to those of the Fund.
The Committee and the Board also considered the compensation directly or indirectly received by the Investment Manager's affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided by management as to the profitability of the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of profitability levels realized in 2012 to profitability levels realized in 2011. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the Fund, the expense ratio of the Fund, and the implementation of expense limitations with respect to the Fund. The Committee and the Board also considered information provided by the Investment Manager regarding its financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Advisory Agreement.
Economies of Scale
The Committee and the Board considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager's investment advisory clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment advisory fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading and compliance resources.
In considering these matters, the Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as discussed above. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the continuation of the Advisory Agreement.
Annual Report 2013
40
Columbia Oregon Intermediate Municipal Bond Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Other Benefits to the Investment Manager
The Committee and the Board received and considered information regarding "fall-out" or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement of the Investment Manager to provide administrative services to the Fund and the engagement of the Investment Manager's affiliates to provide distribution and transfer agency services to the Fund. The Committee and the Board considered that the Fund's distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund's securities transactions, and reviewed information about the Investment Manager's practices with respect to allocating portfolio transactions for brokerage and research services. The Committee and the Board considered the possible conflicts of interest associated with certain fall-out or other ancillary benefits and the reporting, disclosure and other processes that are in place to address such possible conflicts of interest. The Committee and the Board recognized that the Investment Manager's profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Advisory Agreement. In their deliberations, the Trustees did not identify any particular information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement.
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Columbia Oregon Intermediate Municipal Bond Fund
Important Information About This Report
Each fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
The policy of the Board is to vote the proxies of the companies in which each 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 columbiamanagement.com; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how each fund voted proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30 of that year, and is available without charge by visiting columbiamanagement.com; or searching the website of the SEC at sec.gov.
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800.SEC.0330. Each fund's complete schedule of portfolio holdings, as filed on Form N-Q, can also be obtained without charge, upon request, by calling 800.345.6611.
Annual Report 2013
45
Columbia Oregon Intermediate Municipal Bond Fund
P.O. Box 8081
Boston, MA 02266-8081
columbiamanagement.com
This information is for use with concurrent or prior delivery of a fund prospectus. Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the Fund go to columbiamanagement.com. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
ANN207_07_C01_(09/13)
Annual Report
July 31, 2013
Not FDIC insured • No bank guarantee • May lose value
Dear Shareholders,
A return to volatility
Volatility returned to the financial markets in the second quarter of 2013, as uncertainty about the global economy, monetary policy and the impact of the sequester's spending cuts weighed on investors. Households advanced their spending but also allocated less to savings. Labor markets continued to crank out jobs at a steady pace, slowly reducing unemployment. Housing activity remained strong and retail sales were higher despite no real increase in income. The single weak spot was in the manufacturing sector, where activity slowed. While the consumer has weathered the domestic drag well, business has been closer to the global slowdown and effects of sequestration. Businesses remain very cautious, keeping inventories and staffs lean, and are planning for but not yet confident enough to make capital expenditures.
Against this backdrop, equities outperformed fixed income during the second quarter of 2013. Small-cap stocks outperformed large- and mid-cap stocks, and growth outperformed value except for in the large-cap sector. Outside the United States, foreign stock markets generally lost ground, with the most significant losses sustained by emerging markets.
Columbia Management to begin delivering summary prospectuses
Each Columbia fund is required to update its prospectus on an annual basis. Beginning with June 2013 prospectus updates, shareholders of Columbia retail mutual funds will start to receive a summary prospectus, rather than the full length (statutory) mutual fund prospectus they have received in the past.
Each fund's summary prospectus will include the following key information:
> Investment objective
> Fee and expense table
> Portfolio turnover rate information
> Principal investment strategies, principal risks and performance information
> Management information
> Purchase and sale information
> Tax information
> Financial intermediary compensation information
Each fund's statutory prospectus will contain additional information about the fund and its risks. Both the statutory and summary prospectus will be updated each year, and will be available at columbiamanagement.com. Shareholders may request a printed version of a statutory prospectus at no cost by calling 800.345.6611 or sending an email to serviceinquiries@columbiamanagement.com.
Stay on track with Columbia Management
Backed by more than 100 years of experience, Columbia Management is one of the nation's largest asset managers. At the heart of our success — and, most importantly, that of our investors — are highly talented industry professionals, brought together by a unique way of working. We are dedicated to helping you take advantage of today's opportunities and anticipate tomorrow's. We stay abreast of the latest investment trends and ideas, using our collective insight to evaluate events and transform them into solutions you can use.
Visit columbiamanagement.com for:
> The Columbia Management Perspectives blog, featuring timely posts by our investment teams
> Detailed up-to-date fund performance and portfolio information
> Economic analysis and market commentary
> Quarterly fund commentaries
> Columbia Management Investor, our award-winning quarterly newsletter for shareholders
Thank you for your continued support of the Columbia Funds. We look forward to serving your investment needs for many years to come.
Best Regards,
J. Kevin Connaughton
President, Columbia Funds
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about a fund, visit columbiamanagement.com. The prospectus should be read carefully before investing.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
Performance Overview | | | 2 | | |
Manager Discussion of Fund Performance | | | 4 | | |
Understanding Your Fund's Expenses | | | 6 | | |
Portfolio of Investments | | | 7 | | |
Statement of Assets and Liabilities | | | 44 | | |
Statement of Operations | | | 46 | | |
Statement of Changes in Net Assets | | | 47 | | |
Financial Highlights | | | 49 | | |
Notes to Financial Statements | | | 54 | | |
Report of Independent Registered
Public Accounting Firm | | | 61 | | |
Federal Income Tax Information | | | 62 | | |
Trustees and Officers | | | 63 | | |
Board Consideration and Approval of Advisory Agreement | | | 66 | | |
Important Information About This Report | | | 73 | | |
Fund Investment Manager
Columbia Management Investment
Advisers, LLC
225 Franklin Street
Boston, MA 02110
Fund Distributor
Columbia Management Investment
Distributors, Inc.
225 Franklin Street
Boston, MA 02110
Fund Transfer Agent
Columbia Management Investment
Services Corp.
P.O. Box 8081
Boston, MA 02266-8081
For more information about any of the funds, please visit columbiamanagement.com or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 8 p.m. Eastern time.
The views expressed in this report reflect the current views of the respective parties. 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.
Performance Summary
> Columbia Tax-Exempt Fund (the Fund) Class A shares returned -2.42% excluding sales charges for the 12-month period that ended July 31, 2013.
> The Fund trailed its benchmark, the Barclays Municipal Bond Index, which returned -2.19% for the same 12-month period.
> The Fund's duration — a measure of interest-rate sensitivity — and an overweight in bonds maturing beyond 15 years generally accounted for the modest shortfall in relative performance. Security selection aided results in a period that was weak for most sectors of the bond market.
Average Annual Total Returns (%) (for period ended July 31, 2013)
| | Inception | | 1 Year | | 5 Years | | 10 Years | |
Class A | | 11/21/78 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | -2.42 | | | | 5.10 | | | | 4.73 | | |
Including sales charges | | | | | | | -7.04 | | | | 4.08 | | | | 4.22 | | |
Class B | | 05/05/92 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | -3.15 | | | | 4.31 | | | | 3.94 | | |
Including sales charges | | | | | | | -7.84 | | | | 3.97 | | | | 3.94 | | |
Class C | | 08/01/97 | | | | | | | | | | | | | |
Excluding sales charges | | | | | | | -2.97 | | | | 4.47 | | | | 4.10 | | |
Including sales charges | | | | | | | -3.90 | | | | 4.47 | | | | 4.10 | | |
Class R4* | | 03/19/13 | | | -2.36 | | | | 5.12 | | | | 4.73 | | |
Class Z* | | 09/16/05 | | | -2.22 | | | | 5.30 | | | | 4.89 | | |
Barclays Municipal Bond Index | | | | | | | -2.19 | | | | 5.07 | | | | 4.71 | | |
Returns for Class A are shown with and without the maximum initial sales charge of 4.75%. Returns for Class B are shown with and without the applicable contingent deferred sales charge (CDSC) of 5.00% in the first year, declining to 1.00% in the sixth year and eliminated thereafter. Returns for Class C are shown with and without the 1.00% CDSC for the first year only. The Fund's other classes are not subject to sales charges and have limited eligibility. Please see the Fund's prospectuses for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each 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 columbiamanagement.com 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 columbiamanagement.com/mutual-funds/appended-performance for more information.
The Barclays Municipal Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.
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.
Annual Report 2013
2
Performance Overview (continued)
Performance of a Hypothetical $10,000 Investment (August 1, 2003 – July 31, 2013)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Tax-Exempt 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.
Annual Report 2013
3
Manager Discussion of Fund Performance
For the 12-month period that ended July 31, 2013, the Fund's Class A shares returned -2.42% excluding sales charges. The Fund's benchmark, the Barclays Municipal Bond Index, returned -2.19% for the same 12 months. The Fund's duration — a measure of interest-rate sensitivity — and an overweight in bonds maturing beyond 15 years generally accounted for the modest shortfall in relative performance. Security selection aided results in a period that was weak for most sectors of the bond market.
Rising Yields Pressured Municipal Bond Returns
Municipal bond prices rallied early in the 12-month period, buoyed by less-than-anticipated supply and strong investor demand. Yields — which move in the opposite direction of bond prices — reached historically low levels in December. However, profit-taking and heavy new issue supply caused yields to rise heading into fiscal year-end. For the first four months of 2013, yields traded within a range, buffeted by various events including a seasonal increase in supply and news the governor of Michigan would appoint an emergency manager for the city of Detroit. However, yields began to climb again in May and spiked in June amid concern that the Federal Reserve might taper its massive bond-buying later this year. Municipal redemptions reached record levels, even as fear later eased and yields retreated modestly from their highs.
Longer Maturity, Longer Duration Bias Hurt Relative Performance
Within the benchmark, short-maturity, short-duration bonds beat longer maturity, longer duration bonds. For the year, 30-year municipal bonds in the benchmark declined -6.48%, vs. 0.49% gain for bonds with maturities under five years. The Fund lost ground from having an overweight in bonds with maturities of 15 years and longer, which offered attractive yields in a low inflation environment. Positive security selection in the longer maturity segment helped offset some of this loss. Issue selection, however, detracted in the electric revenue and education sectors, also in Puerto Rico, as well as in Illinois and Massachusetts, where durations were longer than in the benchmark.
Big Boost from Below Investment Grade Bonds
Within the benchmark, higher quality (AA and AAA) bonds beat lower quality (A and BBB) issues. However, the Fund's lower quality securities beat the benchmark return by a sizable margin, mainly because of a significant allocation to below investment grade bonds, which are not in the benchmark but generated modestly positive returns. Security selection also helped in the AA, A and BBB segments, across the maturity spectrum, in addition to the hospital, special tax and resource tax sectors as well as in New York and Texas. Underweights in the lagging water-and-sewer and transportation sectors contributed positive results, as did an overweight in the hospital sector and a large allocation to California. The Fund had big stakes in California, Illinois, New York and Texas, as these states offered the bond structure and sectors we believed had strong relative value, as well as risk reward potential.
Portfolio Management
Kimberly Campbell
Top Ten States (%)
(at July 31, 2013) | |
California | | | 13.5 | | |
Illinois | | | 8.9 | | |
Texas | | | 8.5 | | |
New York | | | 8.2 | | |
Massachusetts | | | 8.0 | | |
Wisconsin | | | 3.7 | | |
Minnesota | | | 3.7 | | |
Washington | | | 3.5 | | |
New Jersey | | | 3.3 | | |
Florida | | | 3.0 | | |
Percentages indicated are based upon total investments (excluding Money Market Funds).
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.
Quality Breakdown (%)
(at July 31, 2013) | |
AAA rating | | | 5.7 | | |
AA rating | | | 23.3 | | |
A rating | | | 37.0 | | |
BBB rating | | | 20.6 | | |
Non-investment grade | | | 2.9 | | |
Not rated | | | 10.5 | | |
Total | | | 100.0 | | |
Percentages indicated are based upon total fixed income securities (excluding Money Market Funds).
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from AAA (highest) to D (lowest), and are subject to change. The ratings shown are determined by using the middle rating of Moody's, S&P, and Fitch after dropping the highest and lowest available ratings. When a rating from only two agencies is available, the lower rating is used. When a rating from only one agency is available, that rating is used. When a bond is not rated by one of these agencies, it is designated as Not rated. Credit ratings are subjective opinions and not statements of fact.
Annual Report 2013
4
Manager Discussion of Fund Performance (continued)
Defensive Securities Added
Over the year, we added securities with more defensive structures that are less interest-rate sensitive. Purchases included callable A rated bonds, as well as BBB and below investment grade securities. (Issuers can redeem a bond that is callable before maturity.) We found good relative value in the hospitals/health care, education, resource recovery, toll roads and port authorities segments. To fund these purchases, we sold higher quality (AA or better) bonds with lower coupons (or stated interest rates) as well as credits that had outperformed or that we thought could weaken. We reduced allocations to tobacco, pre-refunded and short-maturity bonds.
Looking Ahead
At present, the U.S. economy is slowly improving and the housing market is recovering, helping state coffers that depend in large part on real estate tax revenues. Near-term worry that the federal government will limit or remove the tax exemption on municipal issues also seems to have abated. However, there's still uncertainty regarding the strength of U.S. economic growth in the second half of 2013, particularly the impact of higher Treasury rates on the housing market. Although the credit fundamentals of the municipal market are currently good, and we believe that default risk remains low, the outcome of Detroit's recent disputes may have implications going forward.
At the period's end, prices and yields on municipal bonds looked attractive relative to Treasury bonds. Going forward, we expect periods of volatility may offer opportunities to invest at attractive relative values in the municipal market. Our focus will be on selectively adding bonds with premium coupons, of medium quality or below investment grade that we believe can hold up well even as interest rates fluctuate. As always, we plan to use our independent credit research and trading analysis to identify bonds we believe will add strong relative value in the long term and support a competitive yield.
Investment Risks
There are risks associated with an investment in a bond fund, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is more pronounced for longer-term securities. Non-investment grade securities, commonly called "high-yield" or "junk" bonds, have more volatile prices and carry more risk to principal and income than investment grade securities. See the Fund's prospectuses for information on these and other risks associated with the Fund. Income from tax-exempt funds may be subject to state and local taxes and a portion of income may be subject to the federal and/or state alternative minimum tax for certain investors. Federal and state income tax rules will apply to any capital gain distributions and any gains or losses on sales.
Annual Report 2013
5
Understanding Your Fund's Expenses
(Unaudited)
As an investor, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and service (Rule 12b-1) 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the Actual column. The amount listed in the "Hypothetical" column assumes a 5% annual rate of return before expenses (which is not the Fund's actual return) and then applies the Fund's actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See "Compare With Other Funds" below for details on how to use the hypothetical data.
Compare With Other Funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
February 1, 2013 – July 31, 2013
| | Account Value at the Beginning
of the Period ($) | | 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 | | | | 952.00 | | | | 1,021.03 | | | | 3.68 | | | | 3.81 | | | | 0.76 | | |
Class B | | | 1,000.00 | | | | 1,000.00 | | | | 948.40 | | | | 1,017.31 | | | | 7.29 | | | | 7.55 | | | | 1.51 | | |
Class C | | | 1,000.00 | | | | 1,000.00 | | | | 949.50 | | | | 1,018.50 | | | | 6.14 | | | | 6.36 | | | | 1.27 | | |
Class R4 | | | 1,000.00 | | | | 1,000.00 | | | | 954.40 | * | | | 1,022.02 | | | | 1.99 | * | | | 2.81 | | | | 0.56 | * | |
Class Z | | | 1,000.00 | | | | 1,000.00 | | | | 953.00 | | | | 1,022.02 | | | | 2.71 | | | | 2.81 | | | | 0.56 | | |
*For the period March 19, 2013 through July 31, 2013. Class R4 shares commenced operations on March 19, 2013.
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 the underlying funds in which the Fund may invest (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including 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.
Annual Report 2013
6
Portfolio of Investments
July 31, 2013
(Percentages represent value of investments compared to net assets)
Municipal Bonds 96.7%
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Alabama 0.4% | |
County of Jefferson Sewer
Refunding Revenue Bonds
Series 1997A (FGIC)
02/01/22 | | | 5.625 | % | | | 570,000 | | | | 458,878 | | |
County of Jefferson
Revenue Bonds
Series 2004A
01/01/19 | | | 5.250 | % | | | 2,790,000 | | | | 2,780,012 | | |
01/01/23 | | | 5.250 | % | | | 7,500,000 | | | | 7,460,025 | | |
Selma Industrial Development Board
Revenue Bonds
Gulf Opportunity Zone-International Paper
Series 2010
05/01/34 | | | 5.800 | % | | | 4,900,000 | | | | 5,133,240 | | |
Total | | | | | | | 15,832,155 | | |
Alaska 0.8% | |
Alaska Energy Authority
Refunding Revenue Bonds
Bradley Lake
4th Series 2000 (AGM)
07/01/20 | | | 6.000 | % | | | 4,145,000 | | | | 5,023,077 | | |
07/01/21 | | | 6.000 | % | | | 2,395,000 | | | | 2,904,584 | | |
City of Koyukuk
Revenue Bonds
Tanana Chiefs Conference Health Care
Series 2011
10/01/32 | | | 7.500 | % | | | 18,330,000 | | | | 19,485,340 | | |
10/01/41 | | | 7.750 | % | | | 4,350,000 | | | | 4,637,970 | | |
Total | | | | | | | 32,050,971 | | |
Arizona 1.4% | |
Arizona Health Facilities Authority
Revenue Bonds
Banner Health
Series 2008D
01/01/32 | | | 5.375 | % | | | 7,800,000 | | | | 8,149,674 | | |
Arizona Transportation Board
Revenue Bonds
Maricopa County Regional Area Road Fund
Series 2007
07/01/25 | | | 5.000 | % | | | 1,500,000 | | | | 1,639,560 | | |
City of Tucson
Unlimited General Obligation Bonds
Series 1984G (NPFGC/FGIC)
07/01/14 | | | 7.625 | % | | | 3,140,000 | | | | 3,347,962 | | |
Glendale Industrial Development Authority
Revenue Bonds
Midwestern University
Series 2010
05/15/35 | | | 5.000 | % | | | 13,750,000 | | | | 13,498,375 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Maricopa County Industrial Development Authority
Revenue Bonds
Catholic Healthcare West
Series 2004A
07/01/26 | | | 5.500 | % | | | 5,000,000 | | | | 5,188,350 | | |
Maricopa County Pollution Control Corp.
Refunding Revenue Bonds
Southern California Edison Co.
Series 2000B
06/01/35 | | | 5.000 | % | | | 9,775,000 | | | | 9,966,981 | | |
Pima County Industrial Development Authority
Revenue Bonds
GNMA Mortgage-Backed Securities
Series 1989 Escrowed to Maturity AMT(a)
09/01/21 | | | 8.200 | % | | | 10,340,000 | | | | 13,555,327 | | |
Salt Verde Financial Corp.
Revenue Bonds
Senior Series 2007
12/01/32 | | | 5.000 | % | | | 5,400,000 | | | | 5,249,610 | | |
Total | | | | | | | 60,595,839 | | |
California 13.3% | |
ABAG Finance Authority for Nonprofit Corps.
Refunding Revenue Bonds
Episcopal Senior Community
Series 2011
07/01/26 | | | 6.125 | % | | | 3,420,000 | | | | 3,776,980 | | |
07/01/41 | | | 6.125 | % | | | 7,015,000 | | | | 7,412,750 | | |
Revenue Bonds
San Diego Hospital Association
Series 2003C
03/01/20 | | | 5.375 | % | | | 1,320,000 | | | | 1,348,169 | | |
Sharp Healthcare
Series 2009
08/01/39 | | | 6.250 | % | | | 4,000,000 | | | | 4,413,120 | | |
Agua Caliente Band of Cahuilla Indians
Revenue Bonds
Series 2003(b)(c)
07/01/18 | | | 6.000 | % | | | 2,000,000 | | | | 1,894,980 | | |
Cabazon Band Mission Indians(b)(c)(d)(e)
Revenue Bonds
Series 2004
10/01/11 | | | 13.000 | % | | | 400,000 | | | | 183,976 | | |
10/01/15 | | | 8.375 | % | | | 1,740,000 | | | | 781,312 | | |
10/01/19 | | | 8.750 | % | | | 8,670,000 | | | | 3,549,758 | | |
Series 2010
10/01/20 | | | 8.375 | % | | | 1,415,000 | | | | 560,892 | | |
California Educational Facilities Authority
Revenue Bonds
Loyola Marymount University
Series 2001A (NPFGC)(f)
10/01/17 | | | 0.000 | % | | | 2,525,000 | | | | 2,291,261 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
7
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
California Health Facilities Financing Authority
Prerefunded 10/01/18 Revenue Bonds
Providence Health
Series 2008
10/01/38 | | | 6.500 | % | | | 110,000 | | | | 137,413 | | |
Revenue Bonds
Kaiser Permanente
Series 2006A
04/01/39 | | | 5.250 | % | | | 4,500,000 | | | | 4,520,745 | | |
Providence Health & Services
Series 2008C
10/01/28 | | | 6.250 | % | | | 2,000,000 | | | | 2,301,620 | | |
Unrefunded Revenue Bonds
Providence Health
Series 2008
10/01/38 | | | 6.500 | % | | | 7,890,000 | | | | 9,040,520 | | |
California Housing Finance Agency(a)
Revenue Bonds
Home Mortgage
Series 2006H (FGIC) AMT
08/01/30 | | | 5.750 | % | | | 2,390,000 | | | | 2,495,949 | | |
Series 2006K AMT
02/01/42 | | | 5.500 | % | | | 3,350,000 | | | | 3,464,570 | | |
California Municipal Finance Authority
Revenue Bonds
American Heritage Education Foundation Project
Series 2006A
06/01/36 | | | 5.250 | % | | | 1,750,000 | | | | 1,427,160 | | |
Biola University
Series 2008
10/01/34 | | | 5.875 | % | | | 4,000,000 | | | | 4,059,840 | | |
California Municipal Finance Authority(a)(b)(d)
Revenue Bonds
UTS Renewable Energy - Waste Water
Series 2011 AMT
12/01/32 | | | 7.500 | % | | | 1,925,000 | | | | 1,908,445 | | |
California State Department of Veterans Affairs
Revenue Bonds
Series 2007A AMT(a)
12/01/22 | | | 4.850 | % | | | 1,390,000 | | | | 1,448,894 | | |
California State Public Works Board
Revenue Bonds
Various Capital Projects
Series 2012A
04/01/37 | | | 5.000 | % | | | 4,660,000 | | | | 4,621,369 | | |
Subordinated Series 2009I-1
11/01/29 | | | 6.125 | % | | | 6,000,000 | | | | 6,933,780 | | |
California Statewide Communities
Development Authority
Revenue Bonds
Aspire Public Schools
Series 2010
07/01/30 | | | 6.000 | % | | | 3,555,000 | | | | 3,595,669 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
John Muir Health
Series 2006A
08/15/32 | | | 5.000 | % | | | 1,000,000 | | | | 987,890 | | |
Kaiser Permanente
Series 2006B
03/01/45 | | | 5.250 | % | | | 13,000,000 | | | | 13,002,470 | | |
University of California Irvine
East Campus Apartments
Series 2008
05/15/32 | | | 5.750 | % | | | 5,500,000 | | | | 5,649,710 | | |
Castaic Lake Water Agency
Certificate of Participation
Capital Appreciation-Water System
Improvement Project
Series 1999 (AMBAC)(f)
08/01/24 | | | 0.000 | % | | | 9,445,000 | | | | 5,942,700 | | |
Chino Public Financing Authority
Refunding Special Tax Bonds
Series 2012
09/01/22 | | | 4.000 | % | | | 1,500,000 | | | | 1,413,495 | | |
09/01/24 | | | 5.000 | % | | | 1,110,000 | | | | 1,107,147 | | |
09/01/25 | | | 5.000 | % | | | 790,000 | | | | 780,101 | | |
09/01/26 | | | 5.000 | % | | | 1,230,000 | | | | 1,199,963 | | |
09/01/27 | | | 5.000 | % | | | 1,280,000 | | | | 1,238,477 | | |
City of Pomona
Refunding Revenue Bonds
Mortgage-Backed Securities
Series 1990A (GNMA/FNMA)
05/01/23 | | | 7.600 | % | | | 7,210,000 | | | | 9,231,179 | | |
City of San Jose
Revenue Bonds
Series 2001A (NPFGC/FGIC)
03/01/31 | | | 5.000 | % | | | 4,855,000 | | | | 4,867,429 | | |
City of San Jose(a)
Revenue Bonds
Series 2007A (AMBAC) AMT
03/01/16 | | | 5.000 | % | | | 3,000,000 | | | | 3,301,110 | | |
City of Vernon Electric System
Revenue Bonds
Series 2009A
08/01/21 | | | 5.125 | % | | | 2,500,000 | | | | 2,693,025 | | |
County of Sacramento Airport System
Revenue Bonds
Senior Series 2009B
07/01/39 | | | 5.750 | % | | | 4,000,000 | | | | 4,434,640 | | |
Foothill-Eastern Transportation Corridor Agency
Refunding Revenue Bonds
Series 1999
01/15/40 | | | 5.750 | % | | | 4,100,000 | | | | 3,928,128 | | |
Foothill-Eastern Transportation Corridor Agency(f)
Revenue Bonds
Capital Appreciation-Senior Lien
Series 1995A Escrowed to Maturity
01/01/18 | | | 0.000 | % | | | 10,000,000 | | | | 9,349,000 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
8
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Fremont Union High School District
Unlimited General Obligation Bonds
Election of 2008
Series 2008
08/01/30 | | | 4.750 | % | | | 3,925,000 | | | | 4,003,225 | | |
Huntington Beach Community Facilities District
Special Tax Bonds
Grand Coast Resort No. 2000-1
Series 2001
09/01/31 | | | 6.450 | % | | | 1,850,000 | | | | 1,859,158 | | |
Lakeside Union School District San Diego County
Unlimited General Obligation Bonds
Series 2009
08/01/33 | | | 5.000 | % | | | 5,000,000 | | | | 5,207,500 | | |
Lammersville School District Community
Facilities District No. 2002
Special Tax Bonds
Mountain House
Series 2006
09/01/35 | | | 5.125 | % | | | 875,000 | | | | 795,856 | | |
Los Angeles County Schools Regionalized
Business Services Corp.
Certificate of Participation
Capital Appreciation-Pooled Financing
Series 1999A (AMBAC)(f)
08/01/22 | | | 0.000 | % | | | 2,180,000 | | | | 1,366,424 | | |
Los Angeles Unified School District
Unlimited General Obligation Bonds
Series 2009I
07/01/29 | | | 5.000 | % | | | 4,800,000 | | | | 5,048,112 | | |
May Farms Community Facilities District
Special Tax Bonds
Series 1991-90-2 Escrowed to Maturity
10/01/21 | | | 8.750 | % | | | 6,165,000 | | | | 8,879,018 | | |
Norwalk-La Mirada Unified School District
Unlimited General Obligation Bonds
Capital Appreciation
Series 2005B (NPFGC/FGIC)(f)
08/01/23 | | | 0.000 | % | | | 9,790,000 | | | | 6,284,397 | | |
Orange Unified School District Community
Facilities District No. 2005-2
Special Tax Bonds
Del Rio School Facilities
Series 2007
09/01/37 | | | 5.000 | % | | | 1,000,000 | | | | 885,010 | | |
Palmdale Community Redevelopment Agency
Revenue Bonds
Series 1986D Escrowed to Maturity (FHA) AMT(a)
04/01/16 | | | 8.000 | % | | | 7,000,000 | | | | 8,358,910 | | |
Riverside County Public Financing Authority
Certificate of Participation
Series 1999
05/15/29 | | | 5.800 | % | | | 5,650,000 | | | | 3,052,186 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
San Diego Public Facilities Financing Authority Sewer
Revenue Bonds
Senior Series 2009A
05/15/34 | | | 5.250 | % | | | 4,500,000 | | | | 4,758,075 | | |
05/15/39 | | | 5.250 | % | | | 17,000,000 | | | | 17,941,630 | | |
San Francisco City & County Public Utilities
Commission
Revenue Bonds
Series 2006A (AGM)
11/01/31 | | | 4.500 | % | | | 15,000,000 | | | | 15,165,300 | | |
San Francisco City & County Redevelopment Agency
Tax Allocation Bonds
Mission Bay South Redevelopment
Series 2009D
08/01/31 | | | 6.500 | % | | | 500,000 | | | | 537,130 | | |
08/01/39 | | | 6.625 | % | | | 1,500,000 | | | | 1,597,395 | | |
San Joaquin Hills Transportation Corridor Agency
Revenue Bonds
Senior Lien
Series 1993
01/01/33 | | | 5.000 | % | | | 1,235,000 | | | | 1,148,587 | | |
San Joaquin Hills Transportation Corridor Agency(f)
Refunding Revenue Bonds
Capital Appreciation
Series 1997A (NPFGC)
01/15/14 | | | 0.000 | % | | | 14,450,000 | | | | 14,277,033 | | |
San Juan Unified School District
Unlimited General Obligation Bonds
Capital Appreciation
Series 2001 (AGM)(f)
08/01/18 | | | 0.000 | % | | | 1,785,000 | | | | 1,571,514 | | |
Simi Valley School Financing Authority
Refunding Revenue Bonds
Simi Valley Unified School District
Series 2007 (AGM)
08/01/23 | | | 5.000 | % | | | 1,500,000 | | | | 1,656,180 | | |
State of California
Prerefunded 08/01/13 Unlimited General
Obligation Bonds
Series 2003
02/01/21 | | | 5.000 | % | | | 365,000 | | | | 365,000 | | |
Unlimited General Obligation Bonds
Series 2002 (AMBAC)
04/01/17 | | | 6.000 | % | | | 2,500,000 | | | | 2,947,700 | | |
Series 2006
10/01/36 | | | 4.500 | % | | | 4,015,000 | | | | 3,885,637 | | |
Various Purpose
Series 2005
03/01/32 | | | 5.000 | % | | | 1,500,000 | | | | 1,519,500 | | |
06/01/35 | | | 4.750 | % | | | 2,500,000 | | | | 2,505,075 | | |
08/01/35 | | | 5.000 | % | | | 10,000,000 | | | | 10,069,900 | | |
Series 2007
12/01/32 | | | 5.000 | % | | | 8,000,000 | | | | 8,168,000 | | |
06/01/37 | | | 5.000 | % | | | 13,145,000 | | | | 13,410,398 | | |
11/01/37 | | | 5.000 | % | | | 18,000,000 | | | | 18,399,240 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
9
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
12/01/37 | | | 5.000 | % | | | 10,200,000 | | | | 10,430,418 | | |
Series 2008
03/01/27 | | | 5.500 | % | | | 1,000,000 | | | | 1,084,420 | | |
03/01/38 | | | 5.250 | % | | | 8,250,000 | | | | 8,520,600 | | |
Series 2009
04/01/31 | | | 5.750 | % | | | 32,500,000 | | | | 35,287,850 | | |
04/01/35 | | | 6.000 | % | | | 15,000,000 | | | | 16,829,700 | | |
04/01/38 | | | 6.000 | % | | | 22,500,000 | | | | 25,171,200 | | |
11/01/39 | | | 5.500 | % | | | 15,520,000 | | | | 16,530,197 | | |
Series 2010
03/01/30 | | | 5.250 | % | | | 3,000,000 | | | | 3,163,560 | | |
03/01/33 | | | 6.000 | % | | | 5,000,000 | | | | 5,703,900 | | |
03/01/40 | | | 5.500 | % | | | 17,200,000 | | | | 18,179,884 | | |
Series 2011
09/01/30 | | | 5.250 | % | | | 8,750,000 | | | | 9,318,312 | | |
Series 2012
04/01/35 | | | 5.250 | % | | | 19,275,000 | | | | 20,147,001 | | |
09/01/42 | | | 5.000 | % | | | 10,000,000 | | | | 10,130,700 | | |
Unlimited General Obligation Refunding Bonds
Series 2007
08/01/30 | | | 4.500 | % | | | 34,950,000 | | | | 35,299,500 | | |
Series 2012
02/01/38 | | | 5.000 | % | | | 18,500,000 | | | | 18,846,320 | | |
Various Purpose
Series 2008
04/01/38 | | | 5.000 | % | | | 1,015,000 | | | | 1,038,233 | | |
Unrefunded Unlimited General Obligation Bonds
Series 2004
04/01/29 | | | 5.300 | % | | | 6,000 | | | | 6,169 | | |
Temecula Public Financing Authority
Refunding Special Tax Bonds
Wolf Creek Community Facilities District
Series 2012
09/01/27 | | | 5.000 | % | | | 1,275,000 | | | | 1,271,124 | | |
09/01/28 | | | 5.000 | % | | | 1,315,000 | | | | 1,312,186 | | |
09/01/29 | | | 5.000 | % | | | 1,405,000 | | | | 1,395,741 | | |
09/01/30 | | | 5.000 | % | | | 1,480,000 | | | | 1,459,872 | | |
09/01/31 | | | 5.000 | % | | | 1,555,000 | | | | 1,524,118 | | |
Turlock Irrigation District
Certificate of Participation
Series 2003A (NPFGC)
01/01/33 | | | 5.000 | % | | | 4,450,000 | | | | 4,373,860 | | |
University of California
Revenue Bonds
General Series 2009Q
05/15/34 | | | 5.000 | % | | | 5,750,000 | | | | 6,055,325 | | |
Walnut Energy Center Authority
Revenue Bonds
Series 2004A (AMBAC)
01/01/29 | | | 5.000 | % | | | 9,365,000 | | | | 9,482,718 | | |
West Contra Costa Unified School District
Unlimited General Obligation Refunding Bonds
Series 2001B (NPFGC)
08/01/24 | | | 6.000 | % | | | 2,320,000 | | | | 2,718,414 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Yuba City Unified School District
Unlimited General Obligation Bonds
Capital Appreciation
Series 2000 (NPFGC/FGIC)(f)
09/01/18 | | | 0.000 | % | | | 1,160,000 | | | | 1,005,906 | | |
Total | | | | | | | 573,245,954 | | |
Colorado 1.8% | |
Baptist Road Rural Transportation Authority
Revenue Bonds
Series 2007
12/01/17 | | | 4.800 | % | | | 675,000 | | | | 632,158 | | |
12/01/22 | | | 4.950 | % | | | 1,570,000 | | | | 1,276,143 | | |
12/01/26 | | | 5.000 | % | | | 1,575,000 | | | | 1,178,210 | | |
City & County of Denver
Unlimited General Obligation Bonds
Justice System Facilities & Zoo
Series 2005
08/01/25 | | | 5.000 | % | | | 1,000,000 | | | | 1,082,750 | | |
City & County of Denver(a)
Refunding Revenue Bonds
United Air Lines Project
Series 2007A AMT
10/01/32 | | | 5.250 | % | | | 5,000,000 | | | | 4,640,300 | | |
City of Westminster
Revenue Bonds
Post Project
Series 2007D (AGM)
12/01/23 | | | 5.000 | % | | | 1,240,000 | | | | 1,392,619 | | |
Colorado Educational & Cultural Facilities Authority
Refunding Revenue Bonds
Student Housing-Campus Village Apartment
Series 2008
06/01/33 | | | 5.500 | % | | | 2,000,000 | | | | 2,094,120 | | |
06/01/38 | | | 5.500 | % | | | 6,000,000 | | | | 6,268,740 | | |
Colorado Health Facilities Authority
Prerefunded 06/01/14 Revenue Bonds
Evangelical Lutheran
Series 2009A
06/01/38 | | | 6.125 | % | | | 3,250,000 | | | | 3,408,275 | | |
Refunding Revenue Bonds
Covenant Retirement Communities
Series 2012A
12/01/33 | | | 5.000 | % | | | 5,500,000 | | | | 5,045,755 | | |
Valley View Hospital Association
Series 2008
05/15/28 | | | 5.500 | % | | | 5,745,000 | | | | 5,841,056 | | |
Revenue Bonds
Evangelical Lutheran
Series 2005
06/01/23 | | | 5.250 | % | | | 1,200,000 | | | | 1,233,828 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
10
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Colorado State Board of Governors
Revenue Bonds
Series 2008A (AGM)
03/01/27 | | | 5.000 | % | | | 1,250,000 | | | | 1,311,663 | | |
County of El Paso
Revenue Bonds
Series 1988A (GNMA) AMT(a)
03/25/19 | | | 8.375 | % | | | 767 | | | | 768 | | |
E-470 Public Highway Authority
Revenue Bonds
Series 2010C
09/01/26 | | | 5.375 | % | | | 5,000,000 | | | | 5,173,750 | | |
E-470 Public Highway Authority(f)
Revenue Bonds
Capital Appreciation
Senior Series 1997B (NPFGC)
09/01/22 | | | 0.000 | % | | | 6,515,000 | | | | 4,324,331 | | |
Senior Series 2000B (NPFGC)
09/01/18 | | | 0.000 | % | | | 18,600,000 | | | | 15,941,874 | | |
North Range Metropolitan District No. 2
Limited Tax General Obligation Bonds
Series 2007
12/15/27 | | | 5.500 | % | | | 2,765,000 | | | | 2,620,142 | | |
12/15/37 | | | 5.500 | % | | | 3,100,000 | | | | 2,792,914 | | |
Platte River Power Authority
Revenue Bonds
Series 2009HH
06/01/24 | | | 5.000 | % | | | 1,000,000 | | | | 1,162,580 | | |
Regional Transportation District
Refunding Revenue Bonds
Series 2007A
11/01/24 | | | 5.250 | % | | | 1,000,000 | | | | 1,180,230 | | |
University of Colorado Hospital Authority
Refunding Revenue Bonds
Series 2009A
11/15/29 | | | 6.000 | % | | | 5,000,000 | | | | 5,515,750 | | |
Revenue Bonds
Series 2012-A
11/15/42 | | | 5.000 | % | | | 5,000,000 | | | | 4,976,750 | | |
Total | | | | | | | 79,094,706 | | |
Connecticut 1.6% | |
Bridgeport Housing Authority
Revenue Bonds
Custodial Receipts Energy Performance
Series 2009
06/01/30 | | | 5.600 | % | | | 1,000,000 | | | | 1,033,290 | | |
City of Bridgeport
Unlimited General Obligation Refunding Bonds
Series 2004C (NPFGC)
08/15/19 | | | 5.500 | % | | | 1,500,000 | | | | 1,744,680 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of Hartford
Prerefunded 04/01/22 Unlimited General
Obligation Bonds
Series 2012A (AGM)
04/01/32 | | | 5.000 | % | | | 105,000 | | | | 124,889 | | |
Unrefunded Unlimited General Obligation Bonds
Series 2012A (AGM)
04/01/32 | | | 5.000 | % | | | 245,000 | | | | 250,694 | | |
City of New Britain
Unlimited General Obligation Bonds
Series 2006 (AMBAC)
04/15/21 | | | 5.000 | % | | | 1,160,000 | | | | 1,331,030 | | |
City of New Haven
Unlimited General Obligation Bonds
Series 2002C Escrowed to Maturity (NPFGC)
11/01/20 | | | 5.000 | % | | | 10,000 | | | | 10,420 | | |
City of West Haven
Unlimited General Obligation Bonds
Series 2012 (AGM)
08/01/25 | | | 5.000 | % | | | 1,000,000 | | | | 1,030,520 | | |
Connecticut Housing Finance Authority
Revenue Bonds
State Supported Special Obligation
Series 2009-10
06/15/28 | | | 5.000 | % | | | 750,000 | | | | 776,558 | | |
Connecticut Housing Finance Authority(a)
Revenue Bonds
Housing Mortgage Finance Program
Subordinated Series 2006A-1 AMT
11/15/36 | | | 4.875 | % | | | 760,000 | | | | 761,946 | | |
Subordinated Revenue Bonds
Series 2012B-2 AMT
11/15/32 | | | 4.050 | % | | | 1,000,000 | | | | 920,480 | | |
Connecticut Resources Recovery Authority
Refunding Revenue Bonds
American Fuel Co.
Series 2001A-II AMT(a)
11/15/15 | | | 5.500 | % | | | 1,500,000 | | | | 1,500,765 | | |
Connecticut State Development Authority
Refunding Revenue Bonds
Connecticut Light & Power Co. Project
Series 2011
09/01/28 | | | 4.375 | % | | | 1,500,000 | | | | 1,495,845 | | |
Revenue Bonds
Alzheimer's Resource Center Project
Series 2007
08/15/21 | | | 5.400 | % | | | 500,000 | | | | 512,765 | | |
08/15/27 | | | 5.500 | % | | | 2,375,000 | | | | 2,392,860 | | |
Connecticut State Health & Educational
Facility Authority
Revenue Bonds
Ascension Health Senior Center
Series 2010
11/15/40 | | | 5.000 | % | | | 2,500,000 | | | | 2,519,925 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
11
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Connecticut College
Series 2011H-1
07/01/41 | | | 5.000 | % | | | 1,625,000 | | | | 1,656,850 | | |
Series 2012I
07/01/31 | | | 5.000 | % | | | 700,000 | | | | 729,624 | | |
Danbury Hospital
Series 2006H (AMBAC)
07/01/33 | | | 4.500 | % | | | 2,000,000 | | | | 1,779,680 | | |
Fairfield University
Series 2008N
07/01/27 | | | 4.750 | % | | | 1,000,000 | | | | 1,033,990 | | |
Hartford Healthcare
Series 2011A
07/01/32 | | | 5.000 | % | | | 500,000 | | | | 499,370 | | |
Hartford Healthcare Corp.
Series 2011A
07/01/41 | | | 5.000 | % | | | 1,500,000 | | | | 1,466,805 | | |
Lawrence & Memorial Hospital
Series 2011S
07/01/22 | | | 5.000 | % | | | 1,810,000 | | | | 1,994,312 | | |
07/01/31 | | | 5.000 | % | | | 1,425,000 | | | | 1,456,721 | | |
Loomis Chaffe School
Series 2005F (AMBAC)
07/01/25 | | | 5.250 | % | | | 2,035,000 | | | | 2,384,959 | | |
07/01/26 | | | 5.250 | % | | | 1,045,000 | | | | 1,217,718 | | |
Middlesex Hospital
Series 2011N
07/01/24 | | | 5.000 | % | | | 425,000 | | | | 452,102 | | |
07/01/26 | | | 5.000 | % | | | 900,000 | | | | 935,748 | | |
Quinnipiac University
Series 2007I (NPFGC)
07/01/28 | | | 4.375 | % | | | 1,015,000 | | | | 1,017,324 | | |
Sacred Heart University | |
Series 2011G
07/01/31 | | | 5.375 | % | | | 500,000 | | | | 508,680 | | |
Stamford Hospital
Series 2012J
07/01/37 | | | 5.000 | % | | | 1,000,000 | | | | 988,950 | | |
State Supported Child Care | |
Series 2011
07/01/28 | | | 5.000 | % | | | 1,030,000 | | | | 1,075,804 | | |
07/01/29 | | | 5.000 | % | | | 860,000 | | | | 891,235 | | |
Trinity College
Series 1998F (NPFGC)
07/01/21 | | | 5.500 | % | | | 2,000,000 | | | | 2,335,300 | | |
Village Families & Children
Series 2002A (AMBAC)
07/01/23 | | | 5.000 | % | | | 255,000 | | | | 255,041 | | |
Western Connecticut Health
Series 2011M
07/01/41 | | | 5.375 | % | | | 1,500,000 | | | | 1,529,460 | | |
Western Connecticut Health Network
Series 2011
07/01/29 | | | 5.000 | % | | | 1,000,000 | | | | 1,027,590 | | |
Yale-New Haven Hospital
Series 2010M
07/01/40 | | | 5.500 | % | | | 1,000,000 | | | | 1,047,930 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Greater New Haven Water Pollution Control Authority
Revenue Bonds
Series 2008A (AGM)
11/15/28 | | | 4.750 | % | | | 600,000 | | | | 613,746 | | |
Harbor Point Infrastructure Improvement District
Tax Allocation Bonds
Harbor Point Project
Series 2010A
04/01/39 | | | 7.875 | % | | | 8,750,000 | | | | 9,391,375 | | |
New Haven Parking Authority
Refunding Revenue Bonds
Series 2002 (AMBAC)
12/01/15 | | | 5.375 | % | | | 500,000 | | | | 526,140 | | |
New Haven Solid Waste Authority
Revenue Bonds
Series 2008
06/01/28 | | | 5.375 | % | | | 1,750,000 | | | | 1,894,532 | | |
South Central Connecticut Regional Water Authority
Refunding Revenue Bonds
20th Series 2007A (NPFGC)
08/01/23 | | | 5.250 | % | | | 1,000,000 | | | | 1,178,560 | | |
2oth Series 2007A (NPFGC)
08/01/24 | | | 5.250 | % | | | 1,000,000 | | | | 1,174,370 | | |
Revenue Bonds
20th Series 2005 (NPFGC)
08/01/30 | | | 5.000 | % | | | 1,870,000 | | | | 1,952,579 | | |
State of Connecticut
Certificate of Participation
Juvenile Training School
Series 2001
12/15/25 | | | 4.750 | % | | | 2,500,000 | | | | 2,548,800 | | |
Revenue Bonds
Revolving Fund
Series 2009A
06/01/26 | | | 5.000 | % | | | 1,000,000 | | | | 1,123,290 | | |
Unlimited General Obligation Bonds
Series 2001C (AGM)
12/15/15 | | | 5.500 | % | | | 1,500,000 | | | | 1,675,005 | | |
Town of North Haven
Unlimited General Obligation Bonds
Series 2007
07/15/26 | | | 4.750 | % | | | 1,150,000 | | | | 1,327,664 | | |
Town of Suffield
Unlimited General Obligation Refunding Bonds
Series 2005
06/15/20 | | | 5.000 | % | | | 1,400,000 | | | | 1,667,764 | | |
University of Connecticut
Revenue Bonds
Series 2009A
02/15/28 | | | 5.000 | % | | | 500,000 | | | | 543,185 | | |
Series 2010A
02/15/29 | | | 5.000 | % | | | 1,000,000 | | | | 1,074,020 | | |
Total | | | | | | | 69,382,890 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
12
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Delaware 0.2% | |
Delaware State Economic Development Authority
Refunding Revenue Bonds
Gas Facilities-Delmarva Power
Series 2010
02/01/31 | | | 5.400 | % | | | 5,000,000 | | | | 5,212,200 | | |
Revenue Bonds
Newark Charter School
Series 2012
09/01/32 | | | 4.625 | % | | | 2,000,000 | | | | 1,766,640 | | |
09/01/42 | | | 5.000 | % | | | 1,350,000 | | | | 1,284,457 | | |
Total | | | | | | | 8,263,297 | | |
District of Columbia 0.3% | |
District of Columbia
Refunding Revenue Bonds
2nd Series 2009B
12/01/23 | | | 5.000 | % | | | 2,000,000 | | | | 2,315,480 | | |
District of Columbia(g)
Revenue Bonds
KIPP Charter School
Series 2013
07/01/33 | | | 6.000 | % | | | 250,000 | | | | 258,285 | | |
07/01/48 | | | 6.000 | % | | | 1,150,000 | | | | 1,165,364 | | |
Metropolitan Washington Airports Authority
Refunding Revenue Bonds
Series 2007A (AMBAC) AMT(a)
10/01/22 | | | 4.750 | % | | | 4,250,000 | | | | 4,460,843 | | |
Resolution Trust Corp.
Pass-Through Certificates
Series 1993A(d)
12/01/16 | | | 8.500 | % | | | 6,615,222 | | | | 6,478,287 | | |
Total | | | | | | | 14,678,259 | | |
Florida 2.9% | |
Brevard County Health Facilities Authority
Revenue Bonds
Health First, Inc. Project
Series 2005
04/01/24 | | | 5.000 | % | | | 1,800,000 | | | | 1,842,480 | | |
04/01/34 | | | 5.000 | % | | | 16,250,000 | | | | 15,820,025 | | |
Brevard County Housing Finance Authority
Revenue Bonds
Series 1985 (FGIC/MGIC)(f)
04/01/17 | | | 0.000 | % | | | 375,000 | | | | 260,865 | | |
Broward County Housing Finance Authority
Revenue Bonds
Chaves Lake Apartments Project
Series 2000A AMT(a)(d)
07/01/40 | | | 7.500 | % | | | 7,695,000 | | | | 7,696,462 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Capital Trust Agency, Inc.
Revenue Bonds
Atlantic Housing Foundation
Subordinated Series 2008B(d)
07/15/32 | | | 7.000 | % | | | 1,820,000 | | | | 818,290 | | |
City of Ocala
Revenue Bonds
Series 2007A (NPFGC)
10/01/24 | | | 5.000 | % | | | 2,985,000 | | | | 3,317,678 | | |
County of Broward Airport System
Refunding Revenue Bonds
Series 2012P-1 AMT(a)
10/01/25 | | | 5.000 | % | | | 6,000,000 | | | | 6,293,040 | | |
County of Escambia
Revenue Bonds
Series 2003A AMT(a)
11/01/27 | | | 5.750 | % | | | 2,750,000 | | | | 2,733,087 | | |
County of Miami-Dade Aviation
Revenue Bonds
Miami International Airport
Series 2010A
10/01/35 | | | 5.375 | % | | | 11,000,000 | | | | 11,261,690 | | |
County of Polk
Improvement Refunding Revenue Bonds
Series 2006 (NPFGC)
12/01/20 | | | 5.000 | % | | | 1,040,000 | | | | 1,145,758 | | |
County of Seminole Water & Sewer
Revenue Bonds
Series 1992 Escrowed to Maturity (NPFGC)
10/01/19 | | | 6.000 | % | | | 1,030,000 | | | | 1,206,017 | | |
Unrefunded Revenue Bonds
Series 1992 (NPFGC)
10/01/19 | | | 6.000 | % | | | 470,000 | | | | 490,769 | | |
County of St. Johns
Revenue Bonds
Series 2006 (AMBAC)
10/01/26 | | | 5.000 | % | | | 1,000,000 | | | | 1,056,860 | | |
Florida Development Finance Corp.
Revenue Bonds
Renaissance Charter School
Series 2012-A
06/15/22 | | | 5.500 | % | | | 1,240,000 | | | | 1,175,681 | | |
06/15/32 | | | 6.000 | % | | | 4,000,000 | | | | 3,538,400 | | |
06/15/43 | | | 6.125 | % | | | 5,000,000 | | | | 4,246,800 | | |
Florida State Board of Education
Unlimited General Obligation Bonds
Capital Outlay 2008
Series 2009B
06/01/26 | | | 5.000 | % | | | 5,525,000 | | | | 6,117,114 | | |
06/01/27 | | | 5.000 | % | | | 5,800,000 | | | | 6,321,014 | | |
Series 2006C(h)
11/15/36 | | | 5.250 | % | | | 215,000 | | | | 245,371 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
13
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Highlands County Health Facilities Authority
Prerefunded 11/15/16 Revenue Bonds
Adventist Health
Series 2006G
11/15/21 | | | 5.125 | % | | | 70,000 | | | | 79,605 | | |
11/15/32 | | | 5.125 | % | | | 465,000 | | | | 528,807 | | |
Hillsborough County Industrial Development Authority
Prerefunded 10/01/13 Revenue Bonds
Tampa General Hospital
Series 2003
10/01/18 | | | 5.000 | % | | | 175,000 | | | | 176,372 | | |
Unrefunded Revenue Bonds
Tampa General Hospital
Series 2003
10/01/18 | | | 5.000 | % | | | 650,000 | | | | 654,674 | | |
Jacksonville Health Facilities Authority
Revenue Bonds
Brooks Health System
Series 2007
11/01/38 | | | 5.250 | % | | | 5,000,000 | | | | 4,856,600 | | |
Marion County Hospital District
Improvement Refunding Revenue Bonds
Munroe Regional Health System
Series 2007
10/01/29 | | | 5.000 | % | | | 1,000,000 | | | | 1,021,030 | | |
Mid-Bay Bridge Authority
Revenue Bonds
Series 1991A Escrowed to Maturity
10/01/22 | | | 6.875 | % | | | 2,000,000 | | | | 2,599,740 | | |
Series 2011A
10/01/40 | | | 7.250 | % | | | 7,000,000 | | | | 8,131,410 | | |
Orange County School Board
Certificate of Participation
Series 2005B (AMBAC)
08/01/25 | | | 5.000 | % | | | 2,440,000 | | | | 2,620,170 | | |
Sarasota County Health Facilities Authority
Refunding Revenue Bonds
Village on the Isle Project
Series 2007
01/01/14 | | | 5.000 | % | | | 330,000 | | | | 334,689 | | |
Sarasota County Public Hospital Board
Refunding Revenue Bonds
Sarasota Memorial Hospital
Series 1998B (NPFGC)
07/01/28 | | | 5.500 | % | | | 6,980,000 | | | | 7,254,035 | | |
Seminole Indian Tribe of Florida
Revenue Bonds
Series 2007A(b)(c)
10/01/27 | | | 5.250 | % | | | 9,750,000 | | | | 10,130,640 | | |
South Florida Water Management District
Certificate of Participation
Series 2006 (AMBAC)
10/01/26 | | | 5.000 | % | | | 1,400,000 | | | | 1,489,684 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
State of Florida
Revenue Bonds
Series 2007A (AMBAC)
07/01/18 | | | 5.000 | % | | | 2,000,000 | | | | 2,286,260 | | |
Unlimited General Obligation Bonds
Jacksonville Transportation Authority
Series 1985 Escrowed to Maturity
01/01/15 | | | 9.200 | % | | | 845,000 | | | | 907,750 | | |
Tampa Sports Authority
Sales Tax Revenue Bonds
Tampa Bay Arena Project
Series 1995 (NPFGC)
10/01/25 | | | 5.750 | % | | | 2,500,000 | | | | 2,606,525 | | |
Waterset North Community Development District
Special Assessment Bonds
Series 2007A
05/01/39 | | | 6.600 | % | | | 2,850,000 | | | | 2,504,324 | | |
Westchester Community Development District No. 1
Special Assessment Bonds
Community Infrastructure
Series 2003
05/01/23 | | | 6.000 | % | | | 1,735,000 | | | | 1,741,628 | | |
Total | | | | | | | 125,511,344 | | |
Georgia 2.1% | |
Barnesville-Lamar County Industrial
Development Authority
Revenue Bonds
Gordon College Properties
Series 2004A
08/01/25 | | | 5.000 | % | | | 1,250,000 | | | | 1,260,513 | | |
City of Atlanta
Revenue Bonds
Series 1999A (NPFGC/FGIC)
11/01/22 | | | 5.500 | % | | | 5,475,000 | | | | 6,361,895 | | |
Series 2004 (AGM)
11/01/25 | | | 5.750 | % | | | 1,000,000 | | | | 1,198,730 | | |
DeKalb County Hospital Authority
Revenue Bonds
DeKalb Medical Center, Inc. Project
Series 2010
09/01/40 | | | 6.125 | % | | | 6,250,000 | | | | 6,492,312 | | |
Gainesville & Hall County Hospital Authority
Revenue Bonds
Northeast Georgia Healthcare
Series 2010A
02/15/45 | | | 5.500 | % | | | 32,500,000 | | | | 33,178,275 | | |
Georgia State Road & Tollway Authority
Refunding Revenue Bonds
Series 2011B
10/01/16 | | | 5.000 | % | | | 2,000,000 | | | | 2,264,800 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
14
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Henry County Water & Sewerage Authority
Revenue Bonds
Series 1997 (AMBAC)
02/01/20 | | | 6.150 | % | | | 5,390,000 | | | | 6,561,948 | | |
Metropolitan Atlanta Rapid Transit Authority
Refunding Revenue Bonds
Rental-Mortgage
Series 1992N
07/01/18 | | | 6.250 | % | | | 340,000 | | | | 385,502 | | |
Series 1992P (AMBAC)
07/01/20 | | | 6.250 | % | | | 6,000,000 | | | | 6,787,080 | | |
Series 2007A (AMBAC/FGIC)
07/01/26 | | | 5.250 | % | | | 1,000,000 | | | | 1,134,320 | | |
Municipal Electric Authority of Georgia
Refunding Revenue Bonds
Series 1991V (NPFGC)
01/01/18 | | | 6.600 | % | | | 345,000 | | | | 363,561 | | |
Revenue Bonds
Series 1991V Escrowed to Maturity (NPFGC)
01/01/18 | | | 6.600 | % | | | 3,600,000 | | | | 4,087,260 | | |
Unrefunded Revenue Bonds
Series 1991V (NPFGC)
01/01/18 | | | 6.600 | % | | | 13,995,000 | | | | 15,590,150 | | |
Rockdale County Development Authority
Revenue Bonds
Visy Paper Project
Series 2007A AMT(a)
01/01/34 | | | 6.125 | % | | | 3,000,000 | | | | 3,023,640 | | |
Upper Oconee Basin Water Authority
Refunding Revenue Bonds
Series 2005 (NPFGC)
07/01/24 | | | 5.000 | % | | | 1,000,000 | | | | 1,072,970 | | |
Total | | | | | | | 89,762,956 | | |
Guam 0.1% | |
Territory of Guam(c)
Revenue Bonds
Section 30
Series 2009A
12/01/34 | | | 5.750 | % | | | 4,150,000 | | | | 4,294,129 | | |
Series 2011A
01/01/42 | | | 5.125 | % | | | 800,000 | | | | 809,504 | | |
Total | | | | | | | 5,103,633 | | |
Hawaii 1.0% | |
Hawaii Pacific Health
Revenue Bonds
Series 2010A
07/01/40 | | | 5.500 | % | | | 6,500,000 | | | | 6,592,950 | | |
Series 2010B
07/01/30 | | | 5.625 | % | | | 1,220,000 | | | | 1,254,014 | | |
07/01/40 | | | 5.750 | % | | | 1,630,000 | | | | 1,691,027 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Hawaii State Department of Budget & Finance
Refunding Revenue Bonds
Special Purpose - Kahala Nui
Series 2012
11/15/21 | | | 5.000 | % | | | 1,000,000 | | | | 1,069,460 | | |
11/15/27 | | | 5.000 | % | | | 1,400,000 | | | | 1,414,672 | | |
11/15/32 | | | 5.125 | % | | | 1,300,000 | | | | 1,295,957 | | |
11/15/37 | | | 5.250 | % | | | 1,945,000 | | | | 1,926,386 | | |
Revenue Bonds
15 Craigside Project
Series 2009A
11/15/29 | | | 8.750 | % | | | 1,000,000 | | | | 1,132,850 | | |
11/15/44 | | | 9.000 | % | | | 3,000,000 | | | | 3,379,980 | | |
Hawaii Pacific University
Series 2013A
07/01/33 | | | 6.625 | % | | | 1,430,000 | | | | 1,424,809 | | |
07/01/43 | | | 6.875 | % | | | 2,795,000 | | | | 2,788,600 | | |
Hawaiian Electric Co. Subsidiary
Series 2009
07/01/39 | | | 6.500 | % | | | 5,250,000 | | | | 5,682,285 | | |
Hawaii State Department of Budget & Finance(a)
Refunding Revenue Bonds
Electric Co. & Subsidiary Project
Series 2003B (XLCA) AMT
12/01/22 | | | 5.000 | % | | | 12,500,000 | | | | 12,511,375 | | |
Total | | | | | | | 42,164,365 | | |
Idaho 0.4% | |
Idaho Health Facilities Authority
Refunding Revenue Bonds
IHC Hospitals, Inc.
Series 1992 Escrowed to Maturity
02/15/21 | | | 6.650 | % | | | 6,000,000 | | | | 7,814,700 | | |
Revenue Bonds
Trinity Health Group
Series 2008B
12/01/23 | | | 6.000 | % | | | 1,000,000 | | | | 1,168,260 | | |
12/01/33 | | | 6.250 | % | | | 6,000,000 | | | | 6,803,580 | | |
Total | | | | | | | 15,786,540 | | |
Illinois 8.6% | |
Chicago Board of Education
Certificate of Participation
Lease Certificates
Series 1992A (NPFGC)
01/01/15 | | | 6.250 | % | | | 6,840,000 | | | | 7,083,846 | | |
01/01/16 | | | 6.000 | % | | | 5,000,000 | | | | 5,533,250 | | |
01/01/20 | | | 6.000 | % | | | 8,000,000 | | | | 9,049,040 | | |
Unlimited General Obligation Refunding Bonds
Series 2005A (AMBAC)
12/01/22 | | | 5.500 | % | | | 4,750,000 | | | | 5,343,132 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
15
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Chicago Board of Education(f)
Unlimited General Obligation Bonds
Capital Appreciation-School Reform
Series 1998B-1 (NPFGC/FGIC)
12/01/21 | | | 0.000 | % | | | 8,000,000 | | | | 5,659,040 | | |
12/01/22 | | | 0.000 | % | | | 25,200,000 | | | | 16,709,616 | | |
City of Chicago Wastewater Transmission
Refunding Revenue Bonds
Capital Appreciation
Series 1998A (NPFGC)(f)
01/01/20 | | | 0.000 | % | | | 7,275,000 | | | | 5,919,231 | | |
City of Chicago
Limited General Obligation Refunding Bonds
Emergency Telephone System
Series 1999 (NPFGC/FGIC)
01/01/23 | | | 5.500 | % | | | 9,750,000 | | | | 10,713,495 | | |
Revenue Bonds
Asphalt Operating Services-Recovery Zone Facility
Series 2010
12/01/18 | | | 6.125 | % | | | 4,730,000 | | | | 5,068,526 | | |
City of Chicago(f)
Unlimited General Obligation Refunding Bonds
Capital Appreciation
Series 2009C
01/01/23 | | | 0.000 | % | | | 4,900,000 | | | | 3,210,725 | | |
01/01/25 | | | 0.000 | % | | | 2,000,000 | | | | 1,157,240 | | |
01/01/27 | | | 0.000 | % | | | 3,000,000 | | | | 1,524,450 | | |
Cook County High School District No. 209
Proviso Township
Limited General Obligation Bonds
Capital Appreciation
Series 2004 (AGM)
12/01/15 | | | 5.000 | % | | | 1,750,000 | | | | 1,877,697 | | |
Cook County School District No. 102 La Grange
Unlimited General Obligation Bonds
Capital Appreciation
Series 2001 (NPFGC/FGIC)(f)
12/01/20 | | | 0.000 | % | | | 3,065,000 | | | | 2,391,160 | | |
County of Champaign
Unlimited General Obligation Bonds
Public Safety Sales Tax
Series 1999 (NPFGC/FGIC)
01/01/20 | | | 8.250 | % | | | 1,015,000 | | | | 1,351,879 | | |
01/01/23 | | | 8.250 | % | | | 1,420,000 | | | | 1,943,341 | | |
County of Du Page
Unlimited General Obligation Refunding Bonds
Jail Project
Series 1993
01/01/21 | | | 5.600 | % | | | 2,565,000 | | | | 2,940,516 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
DeKalb County Community Unit School
District No. 424 Genoa-Kingston
Unlimited General Obligation Bonds
Capital Appreciation
Series 2001 (AMBAC)(f)
01/01/21 | | | 0.000 | % | | | 2,675,000 | | | | 2,030,726 | | |
Illinois Finance Authority
Refunding Revenue Bonds
Commonwealth Edison Co.
Series 1994 (AMBAC/TCRS)
01/15/14 | | | 5.850 | % | | | 4,500,000 | | | | 4,597,695 | | |
Swedish Covenant
Series 2010A
08/15/38 | | | 6.000 | % | | | 12,505,000 | | | | 13,116,745 | | |
Uno Charter School
Series 2011A
10/01/41 | | | 7.125 | % | | | 3,000,000 | | | | 3,332,070 | | |
Revenue Bonds
CHF-Normal LLC-Illinois State University
Series 2011
04/01/43 | | | 7.000 | % | | | 5,550,000 | | | | 6,071,755 | | |
Northwestern Memorial Hospital
Series 2009A
08/15/30 | | | 5.750 | % | | | 2,000,000 | | | | 2,213,080 | | |
Series 2009B
08/15/30 | | | 5.750 | % | | | 10,000,000 | | | | 11,065,400 | | |
Riverside Health System
Series 2009
11/15/35 | | | 6.250 | % | | | 8,200,000 | | | | 8,787,612 | | |
Rush University Medical Center
Series 2009C
11/01/39 | | | 6.625 | % | | | 8,000,000 | | | | 8,912,160 | | |
Sherman Health System
Series 2007A
08/01/37 | | | 5.500 | % | | | 19,550,000 | | | | 20,207,857 | | |
Silver Cross & Medical Centers
Series 2009
08/15/38 | | | 6.875 | % | | | 39,300,000 | | | | 42,462,078 | | |
South Suburban
Series 1992 Escrowed to Maturity
02/15/18 | | | 7.000 | % | | | 1,905,000 | | | | 2,186,883 | | |
Illinois Finance Authority(f)
Subordinated Revenue Bonds
Regency
Series 1990-RMK Escrowed to Maturity
04/15/20 | | | 0.000 | % | | | 68,000,000 | | | | 58,044,800 | | |
Illinois Sports Facilities Authority
Revenue Bonds
State Tax Supported-Capital Appreciation
Series 2001 (AMBAC)(f)
06/15/18 | | | 0.000 | % | | | 4,000,000 | | | | 3,489,120 | | |
Lake County School District No. 56
Unlimited General Obligation Bonds
Series 1997 Escrowed to Maturity (NPFGC/FGIC)
01/01/17 | | | 9.000 | % | | | 4,125,000 | | | | 4,561,879 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
16
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Unrefunded Unlimited General Obligation Bonds
Series 1997 (NPFGC/FGIC)
01/01/17 | | | 9.000 | % | | | 2,910,000 | | | | 3,311,580 | | |
Metropolitan Pier & Exposition Authority
Refunding Revenue Bonds
McCormick
Series 2010B-2
06/15/50 | | | 5.000 | % | | | 6,625,000 | | | | 6,461,230 | | |
Metropolitan Pier & Exposition Authority(f)
Revenue Bonds
McCormick Place Project
Series 1993 Escrowed to Maturity (NPFGC/FGIC)
06/15/16 | | | 0.000 | % | | | 1,115,000 | | | | 1,083,646 | | |
Unrefunded Revenue Bonds
McCormick Place Project
Series 1993 (NPFGC/FGIC)
06/15/16 | | | 0.000 | % | | | 2,635,000 | | | | 2,517,110 | | |
Metropolitan Water Reclamation
District of Greater Chicago
Limited General Obligation Refunding Bonds
Series 2007C
12/01/33 | | | 5.250 | % | | | 13,210,000 | | | | 14,335,360 | | |
Railsplitter Tobacco Settlement Authority
Revenue Bonds
Series 2010
06/01/28 | | | 6.000 | % | | | 15,000,000 | | | | 16,367,100 | | |
Regional Transportation Authority
Revenue Bonds
Series 1994C (NPFGC/FGIC)
06/01/20 | | | 7.750 | % | | | 5,000,000 | | | | 6,078,400 | | |
Series 2002A (NPFGC)
07/01/31 | | | 6.000 | % | | | 5,400,000 | | | | 6,215,076 | | |
State of Illinois
Prerefunded 06/15/15 Revenue Bonds
Series 2005 (AGM)
06/15/28 | | | 5.000 | % | | | 2,000,000 | | | | 2,170,420 | | |
Revenue Bonds
1st Series 2002 (NPFGC/FGIC)
06/15/23 | | | 6.000 | % | | | 4,000,000 | | | | 4,903,520 | | |
Unlimited General Obligation Bonds
1st Series 2001 (NPFGC/FGIC)
11/01/26 | | | 6.000 | % | | | 3,000,000 | | | | 3,336,120 | | |
Series 2004A
03/01/34 | | | 5.000 | % | | | 3,000,000 | | | | 3,015,240 | | |
Series 2006
01/01/31 | | | 5.500 | % | | | 7,985,000 | | | | 8,369,238 | | |
Series 2012
03/01/35 | | | 5.000 | % | | | 2,725,000 | | | | 2,600,304 | | |
03/01/36 | | | 5.000 | % | | | 2,000,000 | | | | 1,903,740 | | |
Series 2013
07/01/38 | | | 5.500 | % | | | 4,125,000 | | | | 4,159,279 | | |
Unlimited General Obligation Refunding Bonds
Series 2012
08/01/25 | | | 5.000 | % | | | 3,100,000 | | | | 3,186,738 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Village of Glendale Heights
Refunding Revenue Bonds
Glendale Heights Project
Series 1985B Escrowed to Maturity
12/01/15 | | | 7.100 | % | | | 605,000 | | | | 658,561 | | |
Total | | | | | | | 369,228,706 | | |
Indiana 1.9% | |
County of Jasper
Refunding Revenue Bonds
Various-Northern Indiana Public Services
Series 1994C (NPFGC)
04/01/19 | | | 5.850 | % | | | 3,000,000 | | | | 3,423,480 | | |
Series 2003-RMKT (AMBAC)
07/01/17 | | | 5.700 | % | | | 2,000,000 | | | | 2,230,660 | | |
Crown Point Multi School Building Corp.
Revenue Bonds
First Mortgage
Series 2000 (NPFGC)(f)
01/15/19 | | | 0.000 | % | | | 8,165,000 | | | | 7,043,374 | | |
Indiana Finance Authority
Prerefunded 08/01/16 Revenue Bonds
State Revolving Fund
Series 2006
02/01/25 | | | 5.000 | % | | | 360,000 | | | | 405,054 | | |
Refunding Revenue Bonds
Series 2007A (NPFGC/FGIC)
06/01/29 | | | 4.500 | % | | | 10,000,000 | | | | 10,073,300 | | |
Sisters of St. Francis Health
Series 2008
11/01/32 | | | 5.375 | % | | | 4,000,000 | | | | 4,120,280 | | |
Revenue Bonds
1st Lien - CWA Authority
Series 2011A
10/01/31 | | | 5.250 | % | | | 8,335,000 | | | | 8,763,586 | | |
BHI Senior Living
Series 2011
11/15/31 | | | 5.500 | % | | | 1,175,000 | | | | 1,186,574 | | |
11/15/41 | | | 5.750 | % | | | 5,655,000 | | | | 5,804,348 | | |
Parkview Health System
Series 2009A
05/01/31 | | | 5.750 | % | | | 6,500,000 | | | | 6,883,500 | | |
Unrefunded Revenue Bonds
State Revolving Fund
Series 2006
02/01/25 | | | 5.000 | % | | | 7,640,000 | | | | 8,473,448 | | |
Indiana Health & Educational
Facilities Financing Authority
Refunding Revenue Bonds
Clarian Health Obligation Group
Series 2006B
02/15/33 | | | 5.000 | % | | | 6,950,000 | | | | 6,953,127 | | |
Revenue Bonds
Clarian Health Obligation Group
Series 2006A
02/15/36 | | | 5.000 | % | | | 4,375,000 | | | | 4,357,325 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
17
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Indiana State Office Building Commission
Revenue Bonds
Womens Prison
Series 1995B Escrowed to Maturity (AMBAC)
07/01/16 | | | 6.250 | % | | | 6,180,000 | | | | 6,719,329 | | |
Indianapolis Airport Authority
Revenue Bonds
Special Facilities-United Air Lines Project
Series 1995A AMT(a)(d)(e)
11/15/31 | | | 6.500 | % | | | 1,052,259 | | | | 20,961 | | |
Purdue University
Revenue Bonds
Student Fees
Series 2009X
07/01/23 | | | 5.250 | % | | | 1,000,000 | | | | 1,170,990 | | |
Vigo County Hospital Authority
Revenue Bonds
Union Hospital, Inc.
Series 2007(b)
09/01/37 | | | 5.700 | % | | | 3,950,000 | | | | 3,923,179 | | |
Total | | | | | | | 81,552,515 | | |
Iowa 0.8% | |
City of Ames
Revenue Bonds
Mary Greely Medical Center
Series 2011
06/15/36 | | | 5.250 | % | | | 6,000,000 | | | | 6,033,960 | | |
City of Marion
Refunding Revenue Bonds
1st Mortgage
Series 2003
01/01/29 | | | 8.000 | % | | | 124,000 | | | | 128,208 | | |
Iowa Finance Authority
Refunding Revenue Bonds
Sunrise Retirement Community
Series 2012
09/01/32 | | | 5.500 | % | | | 1,500,000 | | | | 1,353,900 | | |
09/01/37 | | | 5.500 | % | | | 2,500,000 | | | | 2,146,300 | | |
09/01/43 | | | 5.750 | % | | | 2,630,000 | | | | 2,263,168 | | |
Revenue Bonds
Iowa Fertilizer Co. Project
Series 2013
12/01/25 | | | 5.250 | % | | | 10,000,000 | | | | 9,460,400 | | |
Iowa Student Loan Liquidity Corp.(a)
Senior Revenue Bonds
Series 2011A-2 AMT
12/01/26 | | | 5.600 | % | | | 7,240,000 | | | | 7,746,293 | | |
12/01/27 | | | 5.700 | % | | | 4,980,000 | | | | 5,295,035 | | |
Total | | | | | | | 34,427,264 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Kansas 0.2% | |
City of Overland Park
Revenue Bonds
Prairiefire Lionsgate Project
Series 2012
12/15/29 | | | 5.250 | % | | | 11,000,000 | | | | 9,798,910 | | |
Kentucky 1.4% | |
Kentucky Economic Development Finance Authority
Refunding Revenue Bonds
Owensboro Medical Health
Series 2010B
03/01/40 | | | 6.375 | % | | | 5,800,000 | | | | 6,135,994 | | |
Revenue Bonds
Kings Daughters Medical
Series 2010
02/01/40 | | | 5.000 | % | | | 3,300,000 | | | | 3,233,538 | | |
Louisville Arena
Subordinated Series 2008A-1 (AGM)
12/01/33 | | | 6.000 | % | | | 3,200,000 | | | | 3,303,776 | | |
12/01/38 | | | 6.000 | % | | | 2,850,000 | | | | 2,941,200 | | |
Owensboro Medical Health System
Series 2010A
03/01/45 | | | 6.500 | % | | | 14,550,000 | | | | 15,478,726 | | |
Louisville/Jefferson County Metropolitan Government
Prerefunded 02/01/18 Revenue Bonds
Jewish Hospital St. Mary's Healthcare
Series 2008
02/01/27 | | | 5.750 | % | | | 24,000,000 | | | | 28,681,200 | | |
Total | | | | | | | 59,774,434 | | |
Louisiana 2.3% | |
East Baton Rouge Mortgage Finance Authority
Refunding Revenue Bonds
Series 1993B (GNMA/FNMA)
10/01/25 | | | 5.400 | % | | | 175,000 | | | | 175,194 | | |
Jefferson Sales Tax District
Refunding Revenue Bonds
Series 2009B
12/01/22 | | | 4.500 | % | | | 1,000,000 | | | | 1,068,670 | | |
Revenue Bonds
Series 2007B (AMBAC)
12/01/20 | | | 5.250 | % | | | 1,000,000 | | | | 1,106,450 | | |
Louisiana Housing Finance Agency
Revenue Bonds
Homeownership Program
Series 2008A (GNMA/FNMA/FHLMC)
12/01/23 | | | 4.875 | % | | | 600,000 | | | | 632,910 | | |
Louisiana Local Government Environmental
Facilities & Community Development Authority
Revenue Bonds
Westlake Chemical Corp.
Series 2010A-2
11/01/35 | | | 6.500 | % | | | 6,250,000 | | | | 6,595,937 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
18
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Louisiana Public Facilities Authority
Prerefunded 02/15/17 Revenue Bonds
Tulane University Project
Series 2007 (NPFGC)
02/15/26 | | | 5.000 | % | | | 95,000 | | | | 107,941 | | |
Revenue Bonds
Hurricane Recovery Program
Series 2007 (AMBAC)
06/01/20 | | | 5.000 | % | | | 1,000,000 | | | | 1,069,350 | | |
Unrefunded Revenue Bonds
Tulane University Project
Series 2007 (NPFGC)
02/15/26 | | | 5.000 | % | | | 905,000 | | | | 965,671 | | |
Louisiana Public Facilities Authority(a)
Revenue Bonds
Impala Warehousing LLC Project
Series 2013 AMT
07/01/36 | | | 6.500 | % | | | 25,000,000 | | | | 23,027,000 | | |
Louisiana State Citizens Property Insurance Corp.
Revenue Bonds
Series 2006B (AMBAC)
06/01/16 | | | 5.000 | % | | | 9,500,000 | | | | 10,383,880 | | |
New Orleans Aviation Board
Revenue Bonds
Consolidated Rental Car
Series 2009A
01/01/30 | | | 6.250 | % | | | 5,250,000 | | | | 5,803,823 | | |
01/01/40 | | | 6.500 | % | | | 20,400,000 | | | | 22,495,488 | | |
Parish of St. Charles(h)
Revenue Bonds
Valero Energy Corp.
Series 2010
12/01/40 | | | 4.000 | % | | | 7,900,000 | | | | 7,858,920 | | |
Parish of St. John the Baptist
Revenue Bonds
Marathon Oil Corp.
Series 2007A
06/01/37 | | | 5.125 | % | | | 18,600,000 | | | | 18,334,392 | | |
St. Tammany Parish Wide School District No. 12
Unlimited General Obligation Bonds
Series 2008
03/01/23 | | | 4.500 | % | | | 1,000,000 | | | | 1,053,310 | | |
Total | | | | | | | 100,678,936 | | |
Maryland 0.7% | |
City of Brunswick
Special Tax Bonds
Brunswick Crossing Special Taxing
Series 2006
07/01/36 | | | 5.500 | % | | | 6,804,000 | | | | 5,687,396 | | |
County of Baltimore
Revenue Bonds
Oak Crest Village, Inc. Facility
Series 2007A
01/01/37 | | | 5.000 | % | | | 5,000,000 | | | | 5,009,100 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Maryland Economic Development Corp.
Refunding Revenue Bonds
CNX Marine Terminals, Inc.
Series 2010
09/01/25 | | | 5.750 | % | | | 4,000,000 | | | | 4,173,280 | | |
Revenue Bonds
Salisbury University Project
Series 2012
06/01/30 | | | 5.000 | % | | | 400,000 | | | | 388,448 | | |
University of Maryland College Park Projects
Series 2008
06/01/33 | | | 5.750 | % | | | 1,600,000 | | | | 1,623,408 | | |
Senior Revenue Bonds
Towson University Project
Series 2012
07/01/29 | | | 5.000 | % | | | 650,000 | | | | 661,674 | | |
Maryland Health & Higher Educational
Facilities Authority
Revenue Bonds
Anne Arundel Health System
Series 2009A
07/01/39 | | | 6.750 | % | | | 5,000,000 | | | | 5,855,650 | | |
University of Maryland Medical System
Series 2005 (AMBAC)
07/01/28 | | | 5.250 | % | | | 3,000,000 | | | | 3,162,180 | | |
Washington County Hospital
Series 2008
01/01/33 | | | 5.750 | % | | | 3,495,000 | | | | 3,579,509 | | |
Total | | | | | | | 30,140,645 | | |
Massachusetts 7.4% | |
Berkshire Wind Power Cooperative Corp.
Revenue Bonds
Series 2010-1
07/01/30 | | | 5.250 | % | | | 1,000,000 | | | | 1,026,220 | | |
Boston Industrial Development Financing Authority
Revenue Bonds
Crosstown Center Project
Senior Series 2002 AMT(a)(d)
09/01/35 | | | 6.500 | % | | | 5,030,000 | | | | 3,602,234 | | |
Boston Water & Sewer Commission
Refunding Revenue Bonds
Senior Series 2009A
11/01/28 | | | 5.000 | % | | | 1,250,000 | | | | 1,357,675 | | |
Revenue Bonds
Senior Series 1992A
11/01/13 | | | 5.750 | % | | | 190,000 | | | | 192,630 | | |
Senior Series 1993A
11/01/19 | | | 5.250 | % | | | 4,320,000 | | | | 4,882,939 | | |
City of Boston
Unlimited General Obligation Bonds
Series 2013A
03/01/20 | | | 5.000 | % | | | 1,000,000 | | | | 1,194,300 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
19
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of Newton
Limited General Obligation Bonds
State Qualified School
Series 2009A
04/01/25 | | | 4.125 | % | | | 2,295,000 | | | | 2,413,583 | | |
Commonwealth of Massachusetts
Limited General Obligation Bonds
Series 2011A
04/01/28 | | | 5.000 | % | | | 1,795,000 | | | | 1,948,185 | | |
Limited General Obligation Refunding Bonds
Series 2004B
08/01/28 | | | 5.250 | % | | | 3,000,000 | | | | 3,427,230 | | |
Refunding Revenue Bonds
Series 2005 (NPFGC/FGIC)
01/01/27 | | | 5.500 | % | | | 4,500,000 | | | | 5,031,360 | | |
01/01/28 | | | 5.500 | % | | | 7,500,000 | | | | 8,297,325 | | |
01/01/30 | | | 5.500 | % | | | 2,500,000 | | | | 2,742,000 | | |
Massachusetts Bay Transportation Authority
Refunding Revenue Bonds
General Transportation System
Series 1994A (FGIC)
03/01/14 | | | 7.000 | % | | | 240,000 | | | | 249,389 | | |
Series 1994C (AGM)
03/01/19 | | | 7.000 | % | | | 2,500,000 | | | | 2,876,800 | | |
Series 1992B (NPFGC)
03/01/16 | | | 6.200 | % | | | 1,435,000 | | | | 1,530,715 | | |
Revenue Bonds
General Transportation
Series 1991 Escrowed to Maturity (NPFGC)
03/01/21 | | | 7.000 | % | | | 630,000 | | | | 709,500 | | |
Senior Series 2005B (NPFGC)
07/01/26 | | | 5.500 | % | | | 1,500,000 | | | | 1,762,560 | | |
07/01/29 | | | 5.500 | % | | | 2,000,000 | | | | 2,279,460 | | |
Senior Series 2008B
07/01/27 | | | 5.250 | % | | | 710,000 | | | | 808,072 | | |
Series 2005A
07/01/24 | | | 5.000 | % | | | 1,000,000 | | | | 1,169,760 | | |
Unrefunded Revenue Bonds
General Transportation
Series 1991 (NPFGC)
03/01/21 | | | 7.000 | % | | | 625,000 | | | | 790,088 | | |
Massachusetts Department of Transportation(f)
Revenue Bonds
Capital Appreciation
Senior Series 1997C (NPFGC)
01/01/18 | | | 0.000 | % | | | 4,700,000 | | | | 4,300,782 | | |
01/01/20 | | | 0.000 | % | | | 17,000,000 | | | | 14,195,000 | | |
Massachusetts Development Finance Agency
Refunding Revenue Bonds
1st Mortgage-VOA Concord
Series 2007
11/01/41 | | | 5.200 | % | | | 1,145,000 | | | | 939,793 | | |
Revenue Bonds
1st Mortgage-Loomis Communities Project
Series 2002A
03/01/32 | | | 6.900 | % | | | 1,000,000 | | | | 1,005,190 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Adventcare Project
Series 2007A
10/15/28 | | | 6.650 | % | | | 5,000,000 | | | | 5,139,350 | | |
Berkshire Health System
Series 2012G
10/01/30 | | | 5.000 | % | | | 1,500,000 | | | | 1,511,910 | | |
Boston College
Series 2009Q-2
07/01/29 | | | 5.000 | % | | | 1,455,000 | | | | 1,552,252 | | |
Boston Medical Center
Series 2012C
07/01/29 | | | 5.000 | % | | | 1,000,000 | | | | 989,150 | | |
Boston University
Series 1999P
05/15/59 | | | 6.000 | % | | | 3,325,000 | | | | 3,654,075 | | |
Series 2005T-1 (AMBAC)
10/01/39 | | | 5.000 | % | | | 2,000,000 | | | | 2,000,680 | | |
Broad Institute
Series 2011A
04/01/37 | | | 5.250 | % | | | 3,000,000 | | | | 3,097,200 | | |
Covenant Health System Obligation Group
Series 2012
07/01/31 | | | 5.000 | % | | | 1,000,000 | | | | 997,610 | | |
Education-Dexter School Project
Series 2007
05/01/26 | | | 4.500 | % | | | 1,600,000 | | | | 1,606,864 | | |
Evergreen Center, Inc.
Series 2005
01/01/35 | | | 5.500 | % | | | 750,000 | | | | 696,555 | | |
Foxborough Regional Charter School
Series 2010A
07/01/42 | | | 7.000 | % | | | 1,000,000 | | | | 1,100,350 | | |
Linden Ponds, Inc. Facility
Series 2011A-1
11/15/13 | | | 6.250 | % | | | 266,962 | | | | 267,023 | | |
11/15/46 | | | 6.250 | % | | | 2,127,125 | | | | 1,702,827 | | |
Series 2011A-2
11/15/46 | | | 5.500 | % | | | 154,325 | | | | 110,092 | | |
Merrimack College
Series 2012A
07/01/32 | | | 5.000 | % | | | 1,450,000 | | | | 1,396,698 | | |
Northeastern University
Series 2012
10/01/31 | | | 5.000 | % | | | 550,000 | | | | 571,692 | | |
Partners Healthcare
Series 2012L
07/01/36 | | | 5.000 | % | | | 1,000,000 | | | | 1,020,930 | | |
Smith College
Series 2005
07/01/35 | | | 5.000 | % | | | 3,000,000 | | | | 3,097,200 | | |
WGBH Educational Foundation
Series 2002A (AMBAC)
01/01/42 | | | 5.750 | % | | | 2,000,000 | | | | 2,171,540 | | |
Massachusetts Development Finance Agency(d)(e)
Revenue Bonds
Groves-Lincoln
Series 2009A
06/01/29 | | | 7.500 | % | | | 649,845 | | | | 51,273 | | |
06/01/39 | | | 7.750 | % | | | 1,462,495 | | | | 115,391 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
20
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Massachusetts Development Finance Agency(f)
Revenue Bonds
Linden Ponds, Inc. Facility
Series 2011B
11/15/56 | | | 0.000 | % | | | 767,588 | | | | 4,444 | | |
Massachusetts Educational Financing Authority
Revenue Bonds
Series 2009I
01/01/28 | | | 6.000 | % | | | 720,000 | | | | 779,465 | | |
Massachusetts Educational Financing Authority(a)
Revenue Bonds
Issue I
Series 2010B AMT
01/01/31 | | | 5.700 | % | | | 7,250,000 | | | | 7,276,607 | | |
Series 2008H (AGM) AMT
01/01/30 | | | 6.350 | % | | | 7,300,000 | | | | 7,662,299 | | |
Series 2011J AMT
07/01/33 | | | 5.625 | % | | | 2,360,000 | | | | 2,358,466 | | |
Series 2012J AMT
07/01/25 | | | 4.625 | % | | | 15,000,000 | | | | 14,610,900 | | |
07/01/28 | | | 4.900 | % | | | 1,000,000 | | | | 954,700 | | |
Massachusetts Health & Educational
Facilities Authority
Revenue Bonds
Berklee College of Music
Series 2007A
10/01/21 | | | 5.000 | % | | | 1,500,000 | | | | 1,670,670 | | |
Boston College
Series 2008M-2
06/01/35 | | | 5.500 | % | | | 22,000,000 | | | | 24,773,540 | | |
Caregroup
Series 1998B-2 (NPFGC)
02/01/28 | | | 5.375 | % | | | 1,380,000 | | | | 1,463,697 | | |
Series 2008E-1
07/01/33 | | | 5.125 | % | | | 3,000,000 | | | | 3,036,900 | | |
Harvard University
Series 1991N
04/01/20 | | | 6.250 | % | | | 4,675,000 | | | | 5,953,566 | | |
Series 2009A
11/15/36 | | | 5.500 | % | | | 1,000,000 | | | | 1,114,970 | | |
Massachusetts Eye & Ear Infirmary
Series 2010C
07/01/35 | | | 5.375 | % | | | 1,000,000 | | | | 972,980 | | |
Massachusetts Institute of Technology
Series 2002K
07/01/22 | | | 5.500 | % | | | 8,000,000 | | | | 9,893,280 | | |
Series 2004M
07/01/25 | | | 5.250 | % | | | 500,000 | | | | 601,160 | | |
Series 2009O
07/01/26 | | | 5.000 | % | | | 11,500,000 | | | | 13,215,340 | | |
Milford Regional Medical
Series 2007E
07/15/22 | | | 5.000 | % | | | 1,250,000 | | | | 1,275,675 | | |
07/15/32 | | | 5.000 | % | | | 4,720,000 | | | | 4,428,351 | | |
07/15/37 | | | 5.000 | % | | | 500,000 | | | | 460,680 | | |
Northeastern University
Series 2008T-2
10/01/30 | | | 5.000 | % | | | 1,000,000 | | | | 1,028,070 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Partners Healthcare
Series 2010J-1
07/01/34 | | | 5.000 | % | | | 11,400,000 | | | | 11,562,678 | | |
Springfield College
Series 2010
10/15/40 | | | 5.625 | % | | | 4,500,000 | | | | 4,635,990 | | |
Suffolk University
Series 2009A
07/01/30 | | | 6.250 | % | | | 1,000,000 | | | | 1,082,960 | | |
Tufts University
Series 2008
08/15/38 | | | 5.375 | % | | | 1,000,000 | | | | 1,104,820 | | |
Series 2009M
02/15/28 | | | 5.500 | % | | | 1,000,000 | | | | 1,142,710 | | |
Unrefunded Revenue Bonds
South Shore
Series 1999F
07/01/29 | | | 5.750 | % | | | 1,845,000 | | | | 1,850,886 | | |
Massachusetts Housing Finance Agency
Revenue Bonds
Series 2009-147
06/01/28 | | | 4.800 | % | | | 235,000 | | | | 238,269 | | |
Single Family
Series 2008-139
12/01/28 | | | 5.125 | % | | | 1,000,000 | | | | 1,038,250 | | |
Massachusetts Housing Finance Agency(a)
Revenue Bonds
Housing
Series 2011A AMT
12/01/36 | | | 5.250 | % | | | 2,000,000 | | | | 2,016,800 | | |
Rental Housing
Series 2004A (AGM) AMT
07/01/25 | | | 5.250 | % | | | 8,260,000 | | | | 8,266,608 | | |
Series 2007D AMT
06/01/40 | | | 4.850 | % | | | 750,000 | | | | 746,603 | | |
Series 2010C AMT
12/01/30 | | | 5.000 | % | | | 1,000,000 | | | | 1,016,710 | | |
12/01/42 | | | 5.350 | % | | | 1,500,000 | | | | 1,532,280 | | |
Massachusetts Housing Finance Agency(a)(h)
Revenue Bonds
Housing
Series 2006-122 AMT
12/01/31 | | | 4.850 | % | | | 5,140,000 | | | | 5,152,696 | | |
Massachusetts Industrial Finance Agency
Refunding Revenue Bonds
Chelsea Jewish
Series 1997A (FHA)
08/01/37 | | | 6.500 | % | | | 630,000 | | | | 630,762 | | |
Massachusetts Port Authority
Revenue Bonds
Conrac Project
Series 2011A
07/01/41 | | | 5.125 | % | | | 3,000,000 | | | | 3,045,690 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
21
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Massachusetts Port Authority(a)
Revenue Bonds
Bosfuel Project
Series 2007 (NPFGC/FGIC) AMT
07/01/32 | | | 5.000 | % | | | 2,000,000 | | | | 1,975,820 | | |
Massachusetts School Building Authority
Refunding Revenue Bonds
Senior Series 2012A
08/15/22 | | | 5.000 | % | | | 2,000,000 | | | | 2,344,940 | | |
Senior Revenue Bonds
Series 2011B
10/15/35 | | | 5.000 | % | | | 1,000,000 | | | | 1,046,500 | | |
Massachusetts State College Building Authority
Refunding Revenue Bonds
Senior Series 1994A
05/01/14 | | | 7.500 | % | | | 1,910,000 | | | | 2,001,260 | | |
Revenue Bonds
Series 2008A (AGM)
05/01/38 | | | 5.000 | % | | | 3,000,000 | | | | 3,051,180 | | |
Massachusetts State College Building Authority(f)
Revenue Bonds
Capital Appreciation
Senior Series 1999A Escrowed to Maturity (NPFGC)
05/01/18 | | | 0.000 | % | | | 4,000,000 | | | | 3,702,720 | | |
05/01/19 | | | 0.000 | % | | | 7,710,000 | | | | 6,892,277 | | |
05/01/23 | | | 0.000 | % | | | 3,000,000 | | | | 2,214,150 | | |
Massachusetts Water Pollution Abatement Trust (The)
Refunding Revenue Bonds
Pool Program
Series 2006
08/01/30 | | | 5.250 | % | | | 1,000,000 | | | | 1,118,890 | | |
Revenue Bonds
MWRA Program
Subordinated Series 1999A
08/01/17 | | | 6.000 | % | | | 12,445,000 | | | | 14,840,787 | | |
State Revolving Fund
Series 2009-14
08/01/38 | | | 5.000 | % | | | 1,200,000 | | | | 1,286,592 | | |
Unrefunded Revenue Bonds
Pool Program
Series 2004-10
08/01/34 | | | 5.000 | % | | | 145,000 | | | | 149,227 | | |
Massachusetts Water Resources Authority
Prerefunded 08/01/17 Revenue Bonds
Series 2005A (NPFGC)
08/01/24 | | | 5.250 | % | | | 155,000 | | | | 180,118 | | |
Refunding Revenue Bonds
General
Series 2011C
08/01/28 | | | 5.000 | % | | | 500,000 | | | | 541,060 | | |
Revenue Bonds
Series 1992A Escrowed to Maturity
07/15/19 | | | 6.500 | % | | | 4,865,000 | | | | 5,646,222 | | |
Series 1992A Escrowed to Maturity (FGIC)
07/15/19 | | | 6.500 | % | | | 6,075,000 | | | | 7,050,523 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Series 2002J (AGM)
08/01/21 | | | 5.500 | % | | | 5,000,000 | | | | 6,069,800 | | |
Series 2006A (AMBAC)
08/01/24 | | | 5.000 | % | | | 2,170,000 | | | | 2,437,821 | | |
Unrefunded Revenue Bonds
General
Series 1993C (AMBAC/TCRS)
12/01/15 | | | 5.250 | % | | | 300,000 | | | | 317,880 | | |
Series 1993C (TCRS)
12/01/15 | | | 5.250 | % | | | 825,000 | | | | 872,776 | | |
Series 2005A (NPFGC)
08/01/24 | | | 5.250 | % | | | 2,845,000 | | | | 3,243,670 | | |
Metropolitan Boston Transit Parking Corp.
Revenue Bonds
Series 2011
07/01/36 | | | 5.250 | % | | | 3,000,000 | | | | 3,121,980 | | |
Total | | | | | | | 320,290,117 | | |
Michigan 1.4% | |
Allen Academy
Refunding Revenue Bonds
Public School Academy
Series 2013
06/01/22 | | | 5.500 | % | | | 2,000,000 | | | | 1,958,800 | | |
City of Detroit Sewage Disposal System
Refunding Revenue Bonds
Senior Lien
Series 2012A
07/01/39 | | | 5.250 | % | | | 11,925,000 | | | | 10,886,929 | | |
City of Detroit Water Supply System
Revenue Bonds
Senior Lien
Series 2003A (NPFGC)
07/01/34 | | | 5.000 | % | | | 1,375,000 | | | | 1,247,276 | | |
Series 2005A (NPFGC/FGIC)
07/01/27 | | | 5.000 | % | | | 1,290,000 | | | | 1,184,207 | | |
Series 2011A
07/01/41 | | | 5.250 | % | | | 2,000,000 | | | | 1,825,560 | | |
Detroit City School District
Unlimited General Obligation Refunding Bonds
School Building & Site Improvement
Series 2005A (AGM) (Qualified School Bond Loan Fund)
05/01/17 | | | 5.000 | % | | | 2,500,000 | | | | 2,619,925 | | |
Goodrich Area School District
Unrefunded Unlimited General Obligation Bonds
Series 2003B (Qualified School Bond Loan Fund)
05/01/27 | | | 5.000 | % | | | 495,000 | | | | 498,841 | | |
Grand Traverse Academy
Refunding Revenue Bonds
Series 2007
11/01/17 | | | 5.000 | % | | | 390,000 | | | | 396,536 | | |
11/01/22 | | | 5.000 | % | | | 750,000 | | | | 713,115 | | |
11/01/32 | | | 4.750 | % | | | 1,170,000 | | | | 942,435 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
22
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Michigan Higher Education Facilities Authority
Prerefunded 12/01/17 Limited Obligation
Revenue Bonds
Kalamazoo College Project
Series 2007
12/01/33 | | | 5.000 | % | | | 250,000 | | | | 289,513 | | |
Michigan Strategic Fund
Refunding Revenue Bonds
Collateral Detroit Fund-Pollution
Series 1991BB (AMBAC)
05/01/21 | | | 7.000 | % | | | 2,505,000 | | | | 3,075,839 | | |
Michigan Sugar Co.- Caro Project
Series 1998B
11/01/25 | | | 6.450 | % | | | 3,500,000 | | | | 3,065,370 | | |
NSF International Project
Series 2004
08/01/26 | | | 5.250 | % | | | 600,000 | | | | 600,312 | | |
Michigan Strategic Fund(a)(d)
Refunding Revenue Bonds
Michigan Sugar Co.- Carollton
Series 1998C AMT
11/01/25 | | | 6.550 | % | | | 4,250,000 | | | | 3,794,697 | | |
Paw Paw Public Schools
Unlimited General Obligation Refunding Bonds
Series 1998 (NPFGC/FGIC) (Qualified School
Board Loan Fund)
05/01/25 | | | 5.000 | % | | | 1,020,000 | | | | 1,167,380 | | |
Roseville Community Schools
Unlimited General Obligation Refunding Bonds
School Building & Site
Series 2006 (AGM) (Qualified School Bond Loan Fund)
05/01/23 | | | 5.000 | % | | | 3,100,000 | | | | 3,372,087 | | |
St. Johns Public Schools
Unlimited General Obligation Refunding Bonds
Series 1998 (NPFGC/FGIC) (Qualified School
Bond Loan Fund)
05/01/25 | | | 5.100 | % | | | 1,790,000 | | | | 1,980,188 | | |
State of Michigan
Refunding Revenue Bonds
Series 2005 (AGM)
05/15/22 | | | 5.250 | % | | | 2,000,000 | | | | 2,319,460 | | |
Series 2006 (AGM)
05/15/24 | | | 5.000 | % | | | 2,000,000 | | | | 2,211,020 | | |
State of Michigan(f)
Certificate of Participation
Series 2000 Escrowed to Maturity (AMBAC)
06/01/21 | | | 0.000 | % | | | 6,000,000 | | | | 4,866,000 | | |
Troy School District
Unlimited General Obligation Bonds
School Building & Site
Series 2006 (NPFGC) (Qualified School
Board Loan Fund)
05/01/24 | | | 5.000 | % | | | 5,000,000 | | | | 5,424,800 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Wayne County Airport Authority
Revenue Bonds
Detroit Metropolitan Airport
Series 2005 (NPFGC) AMT(a)
12/01/19 | | | 4.750 | % | | | 3,750,000 | | | | 3,972,225 | | |
Williamston Community School District
Unlimited General Obligation Bonds
Series 1996 (NPFGC) (Qualified School
Bond Loan Fund)
05/01/25 | | | 5.500 | % | | | 1,000,000 | | | | 1,174,070 | | |
Total | | | | | | | 59,586,585 | | |
Minnesota 3.4% | |
City of Minneapolis/St. Paul Housing &
Redevelopment Authority
Revenue Bonds
Health Partners Obligation Group Project
Series 2003
12/01/17 | | | 6.000 | % | | | 1,650,000 | | | | 1,679,271 | | |
City of Minneapolis
Revenue Bonds
Fairview Health Services
Series 2008A
11/15/32 | | | 6.750 | % | | | 7,500,000 | | | | 8,646,075 | | |
City of St. Louis Park
Refunding Revenue Bonds
Park Nicollet Health Services
Series 2009
07/01/39 | | | 5.750 | % | | | 16,825,000 | | | | 17,577,414 | | |
Revenue Bonds
Park Nicollet Health Services
Series 2008C
07/01/23 | | | 5.500 | % | | | 22,775,000 | | | | 24,322,106 | | |
07/01/30 | | | 5.750 | % | | | 3,200,000 | | | | 3,357,280 | | |
County of Meeker
Revenue Bonds
Memorial Hospital Project
Series 2007
11/01/37 | | | 5.750 | % | | | 1,750,000 | | | | 1,803,935 | | |
Perham Hospital District
Revenue Bonds
Perham Memorial Hospital & Home
Series 2010
03/01/35 | | | 6.350 | % | | | 4,000,000 | | | | 4,131,960 | | |
03/01/40 | | | 6.500 | % | | | 2,800,000 | | | | 2,901,164 | | |
Southern Minnesota Municipal Power Agency(f)
Revenue Bonds
Capital Appreciation
Series 1994A (NPFGC)
01/01/22 | | | 0.000 | % | | | 27,500,000 | | | | 20,586,500 | | |
01/01/23 | | | 0.000 | % | | | 26,500,000 | | | | 18,833,020 | | |
01/01/25 | | | 0.000 | % | | | 17,500,000 | | | | 11,121,950 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
23
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
St. Paul Housing & Redevelopment Authority
Revenue Bonds
HealthPartners Obligation Group Project
Series 2006
05/15/36 | | | 5.250 | % | | | 4,550,000 | | | | 4,596,091 | | |
Healtheast Project
Series 2005
11/15/25 | | | 6.000 | % | | | 3,500,000 | | | | 3,664,115 | | |
11/15/30 | | | 6.000 | % | | | 10,000,000 | | | | 10,352,800 | | |
11/15/35 | | | 6.000 | % | | | 11,500,000 | | | | 11,862,710 | | |
University of Minnesota
Revenue Bonds
Series 1996A Escrowed to Maturity
07/01/21 | | | 5.500 | % | | | 1,000,000 | | | | 1,197,310 | | |
Western Minnesota Municipal Power Agency
Revenue Bonds
Series 1983 Escrowed to Maturity (NPFGC)
01/01/16 | | | 9.750 | % | | | 1,000,000 | | | | 1,175,720 | | |
Total | | | | | | | 147,809,421 | | |
Mississippi 0.5% | |
County of Lowndes
Refunding Revenue Bonds
Weyerhaeuser Co. Project
Series 1992A
04/01/22 | | | 6.800 | % | | | 2,470,000 | | | | 2,765,560 | | |
Harrison County Wastewater Management District
Refunding Revenue Bonds
Wastewater Treatment Facility
Series 1986 Escrowed to Maturity
02/01/15 | | | 5.000 | % | | | 4,250,000 | | | | 4,442,142 | | |
Medical Center Educational Building Corp.
Refunding Revenue Bonds
University of Mississippi Medical Center
Series 1998B (AMBAC)
12/01/23 | | | 5.500 | % | | | 5,300,000 | | | | 6,032,619 | | |
Mississippi Business Finance Corp.
Revenue Bonds
Series 2009A
05/01/24 | | | 4.700 | % | | | 6,640,000 | | | | 6,825,190 | | |
Rankin County Five Lakes Utility District
Series 1994(d)
07/15/37 | | | 7.000 | % | | | 455,000 | | | | 454,950 | | |
Total | | | | | | | 20,520,461 | | |
Missouri 1.1% | |
City of Manchester
Refunding Tax Allocation Bonds
Highway 141/Manchester Road Project
Series 2010
11/01/25 | | | 6.000 | % | | | 2,690,000 | | | | 2,739,146 | | |
11/01/39 | | | 6.875 | % | | | 1,500,000 | | | | 1,531,395 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of St. Louis Airport
Refunding Revenue Bonds
Lambert International Airport
Series 2007A (AGM)
07/01/23 | | | 5.000 | % | | | 1,000,000 | | | | 1,067,670 | | |
Kirkwood Industrial Development Authority
Revenue Bonds
Aberdeen Heights
Series 2010A
05/15/39 | | | 8.250 | % | | | 12,000,000 | | | | 13,468,080 | | |
Missouri Development Finance Board
Revenue Bonds
Procter & Gamble Paper Products
Series 1999 AMT(a)
03/15/29 | | | 5.200 | % | | | 6,385,000 | | | | 6,822,947 | | |
Missouri Joint Municipal Electric Utility Commission
Revenue Bonds
Plum Point Project
Series 2006 (NPFGC)
01/01/20 | | | 5.000 | % | | | 1,500,000 | | | | 1,564,050 | | |
Missouri State Health & Educational
Facilities Authority
Refunding Revenue Bonds
Lester E. Cox Medical Center
Series 1993I (NPFGC)
06/01/15 | | | 5.250 | % | | | 1,185,000 | | | | 1,221,546 | | |
Revenue Bonds
Lutheran Senior Services
Series 2011
02/01/31 | | | 5.750 | % | | | 1,730,000 | | | | 1,786,312 | | |
02/01/41 | | | 6.000 | % | | | 2,600,000 | | | | 2,701,660 | | |
Senior Living Facilities-Lutheran
Series 2010
02/01/42 | | | 5.500 | % | | | 2,000,000 | | | | 1,988,600 | | |
St. Louis Area Housing Finance Corp.
Wellington Arms III Project
Series 1979
01/01/21 | | | 7.375 | % | | | 1,050,460 | | | | 1,054,010 | | |
St. Louis County Industrial Development Authority
Refunding Revenue Bonds
Anheuser-Busch Co. Project
Series 1991
05/01/16 | | | 6.650 | % | | | 2,650,000 | | | | 2,962,250 | | |
Revenue Bonds
St. Andrews Residence for Seniors
Series 2007A
12/01/41 | | | 6.375 | % | | | 7,000,000 | | | | 6,996,920 | | |
St. Louis County Industrial Development Authority(f)
Revenue Bonds
Convention Center Hotel
Series 2000 (AMBAC)
07/15/18 | | | 0.000 | % | | | 2,000,000 | | | | 1,610,040 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
24
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
University of Missouri
Prerefunded 11/01/15 Revenue Bonds
System Facilities
Series 2006A
11/01/26 | | | 5.000 | % | | | 260,000 | | | | 286,283 | | |
Unrefunded Revenue Bonds
System Facilities
Series 2006A
11/01/26 | | | 5.000 | % | | | 740,000 | | | | 802,567 | | |
Total | | | | | | | 48,603,476 | | |
Nebraska 0.5% | |
Douglas County Hospital Authority No. 2
Revenue Bonds
Health Facilities-Immanuel Obligation Group
Series 2010
01/01/40 | | | 5.625 | % | | | 875,000 | | | | 905,144 | | |
Madison County Hospital Authority No. 1
Revenue Bonds
Faith Regional Health Services Project
Series 2008A-1
07/01/33 | | | 6.000 | % | | | 11,500,000 | | | | 11,981,045 | | |
Nebraska Elementary & Secondary School
Finance Authority
Revenue Bonds
Boys Town Project
Series 2008
09/01/28 | | | 4.750 | % | | | 6,800,000 | | | | 6,939,536 | | |
Omaha Public Power District
Revenue Bonds
Series 1986A Escrowed to Maturity
02/01/15 | | | 6.000 | % | | | 945,000 | | | | 995,605 | | |
Series 1992B Escrowed to Maturity
02/01/17 | | | 6.200 | % | | | 1,285,000 | | | | 1,421,801 | | |
Total | | | | | | | 22,243,131 | | |
Nevada 1.3% | |
Carson City
Refunding Revenue Bonds
Carson Tahoe Regional Medical Center
Series 2012
09/01/33 | | | 5.000 | % | | | 2,500,000 | | | | 2,441,075 | | |
City of Sparks
Senior Sales Tax Anticipation Revenue Bonds
Series 2008A(b)
06/15/28 | | | 6.750 | % | | | 2,000,000 | | | | 1,950,420 | | |
Clark County Water Reclamation District
Limited General Obligation Bonds
Series 2009A
07/01/34 | | | 5.250 | % | | | 12,000,000 | | | | 13,211,040 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
County of Clark
Revenue Bonds
Las Vegas-McCarran International Airport
Series 2010A
07/01/34 | | | 5.125 | % | | | 18,750,000 | | | | 19,374,937 | | |
County of Clark(a)
Revenue Bonds
Southwest Gas Corp. Project
Series 2005A (AMBAC) AMT
10/01/35 | | | 4.850 | % | | | 5,000,000 | | | | 4,865,250 | | |
Director of the State of Nevada Department of
Business & Industry
Revenue Bonds
Republic Services, Inc.
Series 2003 AMT(a)(h)
12/01/26 | | | 5.625 | % | | | 2,000,000 | | | | 2,198,580 | | |
Henderson Local Improvement Districts
Special Assessment Bonds
Series 2006T-18
09/01/35 | | | 5.300 | % | | | 10,645,000 | | | | 7,780,005 | | |
Las Vegas Valley Water District
Limited General Obligation Bonds
Water Improvement
Series 2006A (AGM)
06/01/24 | | | 5.000 | % | | | 4,095,000 | | | | 4,518,382 | | |
Total | | | | | | | 56,339,689 | | |
New Hampshire 0.1% | |
New Hampshire Business Finance Authority
Revenue Bonds
Public Service Co. of New Hampshire Project
Series 2006B (NPFGC) AMT(a)
05/01/21 | | | 4.750 | % | | | 4,500,000 | | | | 4,601,475 | | |
New Jersey 3.2% | |
Middlesex County Improvement Authority(d)(e)
Revenue Bonds
Heldrich Center Hotel
Series 2005C
01/01/37 | | | 8.750 | % | | | 1,500,000 | | | | 104,910 | | |
Subordinated Revenue Bonds
Heldrich Center Hotel
Series 2005B
01/01/37 | | | 6.250 | % | | | 4,000,000 | | | | 279,760 | | |
New Jersey Economic Development Authority
Refunding Revenue Bonds
School Facilities Construction
Series 2005N-1 (AGM)
09/01/25 | | | 5.500 | % | | | 23,990,000 | | | | 27,634,321 | | |
Series 2005N-1 (NPFGC/FGIC)
09/01/27 | | | 5.500 | % | | | 5,000,000 | | | | 5,604,300 | | |
Seeing Eye, Inc. Project
Series 2005 (AMBAC)
12/01/24 | | | 5.000 | % | | | 1,000,000 | | | | 1,026,020 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
25
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Revenue Bonds
MSU Student Housing Project - Provident
Series 2010
06/01/31 | | | 5.750 | % | | | 4,350,000 | | | | 4,593,208 | | |
06/01/42 | | | 5.875 | % | | | 14,500,000 | | | | 15,187,155 | | |
New Jersey Economic Development Authority(a)
Refunding Revenue Bonds
Series 2006B AMT
01/01/37 | | | 6.875 | % | | | 7,000,000 | | | | 6,675,410 | | |
Revenue Bonds
Continental Airlines, Inc. Project
Series 1999 AMT
09/15/23 | | | 5.125 | % | | | 5,000,000 | | | | 4,762,350 | | |
09/15/29 | | | 5.250 | % | | | 2,500,000 | | | | 2,344,625 | | |
United Water, Inc.
Series 1996C (AMBAC) AMT
11/01/25 | | | 4.875 | % | | | 7,000,000 | | | | 7,297,290 | | |
New Jersey Educational Facilities Authority
Revenue Bonds
William Paterson University
Series 2008C
07/01/24 | | | 5.000 | % | | | 1,000,000 | | | | 1,096,540 | | |
New Jersey Environmental Infrastructure Trust
Prerefunded 09/01/16 Revenue Bonds
Environmental
Series 2007A
09/01/22 | | | 5.000 | % | | | 10,000 | | | | 11,279 | | |
Series 2007A
09/01/22 | | | 5.000 | % | | | 5,000 | | | | 5,644 | | |
Prerefunded 9/01/16 Revenue Bonds
Environmental
Series 2007
09/01/22 | | | 5.000 | % | | | 35,000 | | | | 39,533 | | |
Unrefunded Revenue Bonds
Series 2007A
09/01/22 | | | 5.000 | % | | | 1,180,000 | | | | 1,319,641 | | |
New Jersey Health Care Facilities Financing Authority
Revenue Bonds
St. Josephs Healthcare Systems
Series 2008
07/01/38 | | | 6.625 | % | | | 4,000,000 | | | | 4,265,680 | | |
Virtua Health
Series 2009
07/01/33 | | | 5.750 | % | | | 750,000 | | | | 786,682 | | |
New Jersey State Turnpike Authority
Refunding Revenue Bonds
Series 2005A (AGM)
01/01/30 | | | 5.250 | % | | | 2,000,000 | | | | 2,177,580 | | |
Revenue Bonds
Series 1991C (NPFGC) Escrowed to Maturity
01/01/16 | | | 6.500 | % | | | 6,840,000 | | | | 7,266,748 | | |
Series 2004C-2 (AMBAC)
01/01/25 | | | 5.500 | % | | | 2,500,000 | | | | 2,908,250 | | |
Unrefunded Revenue Bonds
Series 1991C (AGM)
01/01/16 | | | 6.500 | % | | | 1,415,000 | | | | 1,614,260 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
New Jersey Transportation Trust Fund Authority
Revenue Bonds
Series 1999A
06/15/18 | | | 5.750 | % | | | 5,000,000 | | | | 5,942,050 | | |
06/15/20 | | | 5.750 | % | | | 4,150,000 | | | | 5,015,897 | | |
Series 2006A
12/15/23 | | | 5.500 | % | | | 3,000,000 | | | | 3,508,350 | | |
Series 2011B
06/15/31 | | | 5.500 | % | | | 7,250,000 | | | | 7,720,815 | | |
Tobacco Settlement Financing Corp.
Revenue Bonds
Series 2007-1A
06/01/26 | | | 4.625 | % | | | 5,055,000 | | | | 4,357,006 | | |
Union County Utilities Authority
Refunding Revenue Bonds
Covanta Union
Series 2011 AMT(a)
12/01/31 | | | 5.250 | % | | | 15,000,000 | | | | 15,272,400 | | |
Total | | | | | | | 138,817,704 | | |
New Mexico 0.4% | |
New Mexico Hospital Equipment Loan Council
Revenue Bonds
Presbyterian Healthcare
Series 2009
08/01/39 | | | 5.000 | % | | | 6,500,000 | | | | 6,471,855 | | |
Presbyterian Healthcare Services
Series 2008A
08/01/32 | | | 6.375 | % | | | 8,650,000 | | | | 9,798,979 | | |
Total | | | | | | | 16,270,834 | | |
New York 7.8% | |
Albany Industrial Development Agency
Revenue Bonds
St. Peters Hospital Project
Series 2008A
11/15/27 | | | 5.250 | % | | | 3,830,000 | | | | 4,004,840 | | |
Brooklyn Arena Local Development Corp.
Revenue Bonds
Barclays Center Project
Series 2009
07/15/30 | | | 6.000 | % | | | 6,500,000 | | | | 7,186,335 | | |
City of New York
Unrefunded Unlimited General Obligation Bonds
Series 2005-M
04/01/22 | | | 5.000 | % | | | 480,000 | | | | 513,806 | | |
Series 2002E (NPFGC/IBC)
08/01/15 | | | 5.625 | % | | | 5,000 | | | | 5,022 | | |
Housing Development Corp.
Revenue Bonds
Capital Funding Program-New York City
Housing Authority Program
Series 2005A (NPFGC/FGIC)
07/01/25 | | | 5.000 | % | | | 300,000 | | | | 319,353 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
26
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Series 2005F-1
11/01/25 | | | 4.650 | % | | | 5,000,000 | | | | 5,110,550 | | |
Hudson Yards Infrastructure Corp.
Revenue Bonds
Series 2011A
02/15/47 | | | 5.750 | % | | | 15,500,000 | | | | 16,456,505 | | |
Long Island Power Authority
Revenue Bonds
Series 2008A
05/01/33 | | | 6.000 | % | | | 2,725,000 | | | | 3,077,888 | | |
Metropolitan Transportation Authority
Revenue Bonds
Series 2007A (AGM)
11/15/33 | | | 5.000 | % | | | 12,000,000 | | | | 12,165,480 | | |
Series 2007B
11/15/24 | | | 5.000 | % | | | 6,820,000 | | | | 7,582,612 | | |
Series 2009B
11/15/34 | | | 5.000 | % | | | 1,000,000 | | | | 1,016,640 | | |
New York City Industrial Development Agency
Revenue Bonds
Pilot-Yankee Stadium-Payment
Series 2006I (FGIC)
03/01/46 | | | 5.000 | % | | | 2,000,000 | | | | 1,943,300 | | |
Queens Baseball Stadium Pilot
Series 2006 (AMBAC)
01/01/24 | | | 5.000 | % | | | 3,000,000 | | | | 3,004,530 | | |
New York City Industrial Development Agency(a)(h)
Revenue Bonds
Terminal One Group Association Project
Series 2005 AMT
01/01/21 | | | 5.500 | % | | | 6,940,000 | | | | 7,511,856 | | |
01/01/24 | | | 5.500 | % | | | 5,500,000 | | | | 5,926,140 | | |
New York City Transitional Finance Authority
Building Aid
Revenue Bonds
Fiscal 2009
Series 2009S-4
01/15/25 | | | 5.125 | % | | | 2,000,000 | | | | 2,236,040 | | |
New York City Water & Sewer System
Revenue Bonds
Series 2005C (NPFGC)
06/15/27 | | | 5.000 | % | | | 8,000,000 | | | | 8,484,640 | | |
New York Local Government Assistance Corp.
Refunding Revenue Bonds
Series 1993E (AMBAC/TCRS)
04/01/16 | | | 5.250 | % | | | 10,000,000 | | | | 10,847,100 | | |
Series 1993E (NPFGC)
04/01/21 | | | 5.000 | % | | | 3,655,000 | | | | 4,297,293 | | |
New York Mortgage Agency
Revenue Bonds
Series 2007-140 AMT(a)
10/01/21 | | | 4.600 | % | | | 3,625,000 | | | | 3,700,726 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
New York State Dormitory Authority
Refunding Revenue Bonds
Education
Series 2005B (AMBAC)
03/15/27 | | | 5.500 | % | | | 11,240,000 | | | | 13,298,831 | | |
03/15/29 | | | 5.500 | % | | | 2,030,000 | | | | 2,357,926 | | |
03/15/30 | | | 5.500 | % | | | 6,040,000 | | | | 6,964,482 | | |
Revenue Bonds
Consolidated City University System
2nd General Series 1993A
07/01/18 | | | 5.750 | % | | | 5,500,000 | | | | 6,190,525 | | |
Consolidated City University System 2nd Generation
Series 1993A
07/01/20 | | | 6.000 | % | | | 13,350,000 | | | | 15,958,590 | | |
Series 1993A (AGM)
07/01/20 | | | 6.000 | % | | | 6,140,000 | | | | 7,339,756 | | |
Independent School District-Educational
Housing Services
Series 2005 (AMBAC)
07/01/30 | | | 5.250 | % | | | 3,000,000 | | | | 3,009,900 | | |
Mount Sinai School of Medicine
Series 2009
07/01/39 | | | 5.125 | % | | | 15,000,000 | | | | 15,379,800 | | |
New York University
Series 2008A
07/01/29 | | | 5.000 | % | | | 3,845,000 | | | | 4,043,748 | | |
New York University Hospital Center
Series 2007B
07/01/24 | | | 5.250 | % | | | 420,000 | | | | 444,935 | | |
North Shore-Long Island Jewish Obligation Group
Series 2009A
05/01/37 | | | 5.500 | % | | | 6,250,000 | | | | 6,508,437 | | |
Orange Regional Medical Center
Series 2008
12/01/29 | | | 6.125 | % | | | 2,250,000 | | | | 2,374,043 | | |
State University
Series 1993A (FGIC)
05/15/17 | | | 5.875 | % | | | 28,240,000 | | | | 31,742,325 | | |
Upstate Community-State Supported
Series 2005B (NPFGC/FGIC)
07/01/23 | | | 5.500 | % | | | 2,000,000 | | | | 2,372,340 | | |
Unrefunded Revenue Bonds
Series 2005-F
03/15/23 | | | 5.000 | % | | | 250,000 | | | | 265,613 | | |
New York State Energy Research &
Development Authority
Revenue Bonds
Series 1993(h)
04/01/20 | | | 12.359 | % | | | 13,000,000 | | | | 13,024,180 | | |
New York State Environmental Facilities Corp.
Revenue Bonds
Revolving Funds New York City Municipal Water
Series 2008A
06/15/28 | | | 5.000 | % | | | 1,000,000 | | | | 1,077,420 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
27
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
New York State Thruway Authority
Revenue Bonds
General Revenue
Series 2012I
01/01/42 | | | 5.000 | % | | | 12,500,000 | | | | 12,705,500 | | |
Series 2005G (AGM)
01/01/24 | | | 5.000 | % | | | 4,000,000 | | | | 4,303,800 | | |
Port Authority of New York & New Jersey
Revenue Bonds
Consolidated 144th
Series 2006
10/01/28 | | | 5.000 | % | | | 1,000,000 | | | | 1,068,120 | | |
JFK International Air Terminal
Series 2010
12/01/36 | | | 6.000 | % | | | 7,000,000 | | | | 7,764,400 | | |
Port Authority of New York & New Jersey(a)
Revenue Bonds
5th Installment-Special Project
Series 1996-4 AMT
10/01/19 | | | 6.750 | % | | | 6,300,000 | | | | 6,078,240 | | |
Consolidated 146th
Series 2006 (AGM) AMT
12/01/23 | | | 4.500 | % | | | 7,500,000 | | | | 7,616,700 | | |
JFK International Air Terminal 4 Special Project
Series 1997 (NPFGC) AMT
12/01/22 | | | 5.750 | % | | | 6,500,000 | | | | 6,653,140 | | |
Suffolk County Industrial Development Agency
Revenue Bonds
Gurwin Jewish-Phase II
Series 2004
05/01/39 | | | 6.700 | % | | | 850,000 | | | | 860,617 | | |
Suffolk County Industrial Development Agency(a)
Revenue Bonds
Nissequogue Cogen Partners Facility
Series 1998 AMT
01/01/23 | | | 5.500 | % | | | 7,800,000 | | | | 7,387,848 | | |
Tobacco Settlement Financing Corp.
Asset-Backed Revenue Bonds
Series 2003A-1
06/01/19 | | | 5.500 | % | | | 2,495,000 | | | | 2,514,386 | | |
Triborough Bridge & Tunnel Authority
Refunding Revenue Bonds
Series 2002 (NFPGC)
11/15/20 | | | 5.500 | % | | | 6,800,000 | | | | 8,209,912 | | |
Series 2012-B
11/15/28 | | | 5.000 | % | | | 3,200,000 | | | | 3,474,496 | | |
11/15/29 | | | 5.000 | % | | | 2,500,000 | | | | 2,682,200 | | |
Revenue Bonds
General Purpose
Series 1992Y Escrowed to Maturity
01/01/21 | | | 6.125 | % | | | 7,000,000 | | | | 8,734,810 | | |
01/01/21 | | | 6.125 | % | | | 11,000,000 | | | | 13,785,420 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Ulster County Industrial Development Agency
Revenue Bonds
Series 2007A
09/15/37 | | | 6.000 | % | | | 2,000,000 | | | | 1,298,500 | | |
09/15/42 | | | 6.000 | % | | | 7,000,000 | | | | 4,498,200 | | |
Total | | | | | | | 337,379,796 | | |
North Carolina 1.1% | |
City of Charlotte Water & Sewer System
Revenue Bonds
Water & Sewer
Series 2008
07/01/26 | | | 5.000 | % | | | 8,450,000 | | | | 9,358,797 | | |
City of High Point
Revenue Bonds
Series 2008 (AGM)
11/01/28 | | | 5.000 | % | | | 350,000 | | | | 382,932 | | |
Durham Housing Authority
Revenue Bonds
Series 2005 AMT(a)(d)
02/01/38 | | | 5.650 | % | | | 3,163,542 | | | | 2,981,733 | | |
North Carolina Eastern Municipal Power Agency
Prerefunded 01/01/22 Revenue Bonds
Series 1988A
01/01/26 | | | 6.000 | % | | | 1,940,000 | | | | 2,437,358 | | |
Revenue Bonds
Series 1986A Escrowed to Maturity
01/01/17 | | | 5.000 | % | | | 3,870,000 | | | | 4,251,505 | | |
Series 2009A
01/01/26 | | | 5.500 | % | | | 300,000 | | | | 326,121 | | |
Series 2009B
01/01/26 | | | 5.000 | % | | | 7,000,000 | | | | 7,446,320 | | |
Unrefunded Revenue Bonds
Series 1991A
01/01/18 | | | 6.500 | % | | | 2,185,000 | | | | 2,636,639 | | |
North Carolina Housing Finance Agency
Revenue Bonds
Series 2006A-26 AMT(a)(h)
01/01/38 | | | 5.500 | % | | | 815,000 | | | | 848,651 | | |
North Carolina Medical Care Commission
Refunding Revenue Bonds
1st Mortgage-Givens Estates
Series 2007
07/01/33 | | | 5.000 | % | | | 5,000,000 | | | | 4,711,000 | | |
Revenue Bonds
1st Mortgage Deerfield
Series 2008A
11/01/33 | | | 6.000 | % | | | 4,060,000 | | | | 4,156,628 | | |
1st Mortgage-Presbyterian Homes
Series 2006
10/01/31 | | | 5.500 | % | | | 2,500,000 | | | | 2,482,775 | | |
Health Care Housing Arc Projects
Series 2004A
10/01/34 | | | 5.800 | % | | | 1,400,000 | | | | 1,442,616 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
28
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
North Carolina Medical Care Commission(f)
Refunding Revenue Bonds
Capital Appreciation-Wilson Memorial Hospital
Series 1997 (AMBAC)
11/01/14 | | | 0.000 | % | | | 1,380,000 | | | | 1,355,367 | | |
State of North Carolina
Revenue Bonds
Annual Appropriation
Series 2009A
05/01/27 | | | 5.000 | % | | | 305,000 | | | | 333,277 | | |
Total | | | | | | | 45,151,719 | | |
North Dakota 0.3% | |
County of McLean
Revenue Bonds
Great River Energy
Series 2010B
07/01/40 | | | 5.150 | % | | | 7,900,000 | | | | 8,038,487 | | |
County of Ward
Revenue Bonds
Trinity Obligated Group
Series 2006
07/01/29 | | | 5.125 | % | | | 4,490,000 | | | | 4,406,037 | | |
Total | | | | | | | 12,444,524 | | |
Ohio 2.3% | |
Adams County/Ohio Valley Local School District
Unlimited General Obligation Bonds
Adams and Highland Counties
Series 1995 (NPFGC)
12/01/15 | | | 7.000 | % | | | 1,685,000 | | | | 1,817,053 | | |
American Municipal Power, Inc.
Revenue Bonds
AMP Fremont Energy Center Project
Series 2012
02/15/37 | | | 5.000 | % | | | 13,220,000 | | | | 13,274,466 | | |
City of Cleveland
Refunding Revenue Bonds
1st Mortgage
Series 1993G (NPFGC)
01/01/21 | | | 5.500 | % | | | 4,015,000 | | | | 4,765,243 | | |
Revenue Bonds
Series 2008B-1 (NPFGC)
11/15/28 | | | 5.000 | % | | | 500,000 | | | | 527,385 | | |
City of Columbus Sewerage
Revenue Bonds
Series 2008A
06/01/31 | | | 4.750 | % | | | 10,000,000 | | | | 10,131,800 | | |
City of Lakewood Water System
Revenue Bonds
Series 1995 (AMBAC)
07/01/20 | | | 5.850 | % | | | 1,390,000 | | | | 1,668,639 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of Middleburg Heights
Revenue Bonds
Southwest General Facilities
Series 2011
08/01/36 | | | 5.250 | % | | | 2,380,000 | | | | 2,380,000 | | |
08/01/41 | | | 5.250 | % | | | 6,900,000 | | | | 6,810,300 | | |
Cleveland Department of Public Utilities
Division of Water
Revenue Bonds
Series 2007P
01/01/24 | | | 5.000 | % | | | 2,000,000 | | | | 2,190,380 | | |
County of Hamilton
Revenue Bonds
Improvement-Greater Cincinnati Metropolitan
Series 2007A
12/01/25 | | | 5.000 | % | | | 3,425,000 | | | | 3,860,112 | | |
Metropolitan Sewer District Improvement
Series 2006A (NPFGC)
12/01/26 | | | 5.000 | % | | | 1,000,000 | | | | 1,096,170 | | |
County of Montgomery
Unlimited General Obligation Improvement
Refunding Bonds
Various Purpose
Series 2005 (NPFGC)
12/01/24 | | | 5.000 | % | | | 2,600,000 | | | | 2,748,928 | | |
Hickory Chase Community Authority
Revenue Bonds
Hickory Chase Project
Series 2008(d)(e)
12/01/27 | | | 6.750 | % | | | 5,644,000 | | | | 2,593,418 | | |
Kings Local School District
Unlimited General Obligation Bonds
National Public Finance (NPFGC/FGIC)
Series 1995 Escrowed to Maturity
12/01/16 | | | 7.500 | % | | | 1,285,000 | | | | 1,467,804 | | |
Unrefunded Unlimited General Obligation Bonds
National Public Finance (NPFGC/FGIC)
Series 1995
12/01/16 | | | 7.500 | % | | | 330,000 | | | | 336,785 | | |
Ohio Higher Educational Facility Commission
Revenue Bonds
Denison University 2007 Project
Series 2007
11/01/23 | | | 5.000 | % | | | 4,000,000 | | | | 4,516,480 | | |
University Hospital Health Systems
Series 2009A
01/15/39 | | | 6.750 | % | | | 7,700,000 | | | | 8,414,406 | | |
University of Dayton Project
Series 2009
12/01/24 | | | 5.500 | % | | | 3,000,000 | | | | 3,475,890 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
29
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Ohio Housing Finance Agency
Revenue Bonds
Mortgage-Backed Securities Program
Series 2008F (GNMA/FNMA/FHLMC)
09/01/28 | | | 5.250 | % | | | 275,000 | | | | 279,158 | | |
Ohio Municipal Electric Generation Agency
Refunding Revenue Bonds
Joint Venture 5
Series 2004 (AMBAC)
02/15/24 | | | 4.750 | % | | | 7,980,000 | | | | 8,125,236 | | |
Ohio State Turnpike Commission
Refunding Revenue Bonds
Series 1998A (NPFGC/FGIC)
02/15/26 | | | 5.500 | % | | | 3,000,000 | | | | 3,496,380 | | |
Ohio State University (The)
Prerefunded 06/01/15 Revenue Bonds
Series 2005-A
06/01/25 | | | 5.000 | % | | | 270,000 | | | | 291,981 | | |
Unrefunded Revenue Bonds
Series 2005-A
06/01/25 | | | 5.000 | % | | | 470,000 | | | | 501,843 | | |
Ohio State Water Development Authority
Refunding Revenue Bonds
Drinking Water Fund
Series 2005
12/01/21 | | | 5.250 | % | | | 3,890,000 | | | | 4,668,700 | | |
12/01/22 | | | 5.250 | % | | | 2,625,000 | | | | 3,140,340 | | |
Toledo-Lucas County Port Authority
Refunding Revenue Bonds
CSX Transportation, Inc. Project
Series 1992
12/15/21 | | | 6.450 | % | | | 3,950,000 | | | | 4,777,051 | | |
Special Assessment Bonds
Town Square at Levi Commons
Series 2007
11/01/36 | | | 5.400 | % | | | 2,605,000 | | | | 1,354,392 | | |
Total | | | | | | | 98,710,340 | | |
Oklahoma 0.1% | |
Cleveland County Justice Authority
Revenue Bonds
Detention Facilities Project
Series 2009B
03/01/29 | | | 5.750 | % | | | 2,260,000 | | | | 2,408,505 | | |
Oregon 0.4% | |
Benton County Hospital Facilities Authority
Unrefunded Revenue Bonds
Samaritan Health
Series 1998
10/01/28 | | | 5.125 | % | | | 655,000 | | | | 655,000 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of Salem
Limited General Obligation Bonds
Series 2009
06/01/27 | | | 4.375 | % | | | 1,000,000 | | | | 1,025,880 | | |
Cow Creek Band of Umpqua Tribe of Indians
Revenue Bonds
Series 2006C(b)(c)
10/01/26 | | | 5.625 | % | | | 3,500,000 | | | | 3,163,930 | | |
Linn County Community School District No. 9 Lebanon
Unlimited General Obligation Refunding Bonds
Series 2005 (NPFGC/FGIC)
06/15/30 | | | 5.500 | % | | | 1,435,000 | | | | 1,670,211 | | |
Oregon Health & Science University
Revenue Bonds
Series 2009A
07/01/39 | | | 5.750 | % | | | 4,500,000 | | | | 4,945,365 | | |
Oregon State Facilities Authority
Revenue Bonds
Linfield College Project
Series 2005A
10/01/25 | | | 5.000 | % | | | 750,000 | | | | 759,195 | | |
Willamette University Projects
Series 2007A
10/01/27 | | | 5.000 | % | | | 1,500,000 | | | | 1,535,835 | | |
Oregon State Housing & Community
Services Department
Revenue Bonds
Single Family Mortgage Program
Series 2005A
07/01/20 | | | 4.400 | % | | | 275,000 | | | | 278,127 | | |
Polk, Marion & Benton School District No. 13J
Unlimited General Obligation Bonds
Central School District
Series 2009A
06/15/29 | | | 4.375 | % | | | 1,300,000 | | | | 1,310,322 | | |
Total | | | | | | | 15,343,865 | | |
Pennsylvania 2.0% | |
Allegheny County Higher Education Building Authority
Revenue Bonds
Duquesne University
Series 2008
03/01/28 | | | 5.000 | % | | | 490,000 | | | | 506,170 | | |
Allentown Neighborhood Improvement Zone
Development Authority
Revenue Bonds
Series 2012A
05/01/42 | | | 5.000 | % | | | 5,500,000 | | | | 5,097,125 | | |
Berks County Municipal Authority
Revenue Bonds
Reading Hospital Medical Center Project
Series 1993 (NPFGC)
10/01/14 | | | 5.700 | % | | | 370,000 | | | | 378,684 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
30
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Butler County Hospital Authority
Revenue Bonds
Butler Health Systems Project
Series 2009
07/01/39 | | | 7.250 | % | | | 7,000,000 | | | | 7,927,780 | | |
Chester County Industrial Development Authority
1st Mortgage
RHA/Pennsylvania Nursing Home
Series 2002(d)
05/01/32 | | | 8.500 | % | | | 5,750,000 | | | | 5,818,195 | | |
Dauphin County Industrial Development Authority
Revenue Bonds
Dauphin Consolidated Water Supply
Series 1992A AMT(a)
06/01/24 | | | 6.900 | % | | | 3,400,000 | | | | 4,086,154 | | |
Delaware Valley Regional Financial Authority
Revenue Bonds
Series 1997C (AMBAC)
07/01/27 | | | 7.750 | % | | | 1,000,000 | | | | 1,282,690 | | |
Montgomery County Industrial Development Authority
Revenue Bonds
Whitemarsh Continuing Care
Series 2005
02/01/28 | | | 6.125 | % | | | 2,000,000 | | | | 1,983,900 | | |
Northampton County General Purpose Authority
Revenue Bonds
Saint Luke's Hospital Project
Series 2008A
08/15/28 | | | 5.375 | % | | | 4,000,000 | | | | 4,099,960 | | |
Pennsylvania Convention Center Authority
Revenue Bonds
Series 1989A Escrowed to Maturity (FGIC)
09/01/19 | | | 6.000 | % | | | 14,010,000 | | | | 17,006,599 | | |
Pennsylvania Economic Development
Financing Authority
Revenue Bonds
Allegheny Energy Supply Co.
Series 2009
07/15/39 | | | 7.000 | % | | | 13,000,000 | | | | 13,285,350 | | |
Philadelphia Biosolids Facility
Series 2009
01/01/32 | | | 6.250 | % | | | 5,325,000 | | | | 5,570,376 | | |
Pennsylvania Economic Development
Financing Authority(a)
Revenue Bonds
Proctor & Gamble Paper Project
Series 2001 AMT
03/01/31 | | | 5.375 | % | | | 1,000,000 | | | | 1,068,340 | | |
Pennsylvania Higher Educational Facilities Authority
Revenue Bonds
Edinboro University
Series 2008
07/01/28 | | | 5.750 | % | | | 3,000,000 | | | | 3,087,660 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Edinboro University Foundation
Series 2010
07/01/43 | | | 6.000 | % | | | 4,750,000 | | | | 4,926,272 | | |
Philadelphia Municipal Authority
Revenue Bonds
Lease
Series 2009
04/01/34 | | | 6.500 | % | | | 2,500,000 | | | | 2,702,050 | | |
Philadelphia Redevelopment Authority
Revenue Bonds
Subordinated Series 1986B
Escrowed to Maturity (GNMA)
06/01/17 | | | 9.000 | % | | | 450,000 | | | | 580,491 | | |
Washington County Industrial Development Authority
Revenue Bonds
Washington Jefferson College
Series 2010
11/01/36 | | | 5.000 | % | | | 4,850,000 | | | | 4,849,612 | | |
Washington County Industrial Development Authority(d)
1st Mortgage
Central Project
Series 2003
01/01/29 | | | 8.500 | % | | | 1,891,000 | | | | 1,962,272 | | |
Westmoreland County Municipal Authority
Revenue Bonds
Capital Appreciation
Series 1999A (NPFGC)(f)
08/15/22 | | | 0.000 | % | | | 2,000,000 | | | | 1,457,420 | | |
Total | | | | | | | 87,677,100 | | |
Puerto Rico 1.9% | |
Puerto Rico Electric Power Authority(c)
Refunding Revenue Bonds
Series 2007UU (AGM)
07/01/23 | | | 5.000 | % | | | 1,000,000 | | | | 1,004,030 | | |
Series 2007VV (NPFGC/FGIC)
07/01/34 | | | 5.250 | % | | | 10,870,000 | | | | 9,518,424 | | |
Revenue Bonds
Series 2003NN (NPFGC)
07/01/21 | | | 5.250 | % | | | 3,500,000 | | | | 3,546,305 | | |
Series 2008WW
07/01/23 | | | 5.375 | % | | | 2,500,000 | | | | 2,427,025 | | |
Series 2010XX
07/01/40 | | | 5.250 | % | | | 14,500,000 | | | | 11,831,855 | | |
Puerto Rico Highways & Transportation Authority(c)
Refunding Revenue Bonds
Series 1996Z Escrowed to Maturity (AGM)
07/01/18 | | | 6.000 | % | | | 5,360,000 | | | | 6,381,884 | | |
Series 2003AA (NPFGC)
07/01/20 | | | 5.500 | % | | | 180,000 | | | | 187,177 | | |
Series 2003AA Escrowed to Maturity (NPFGC)
07/01/20 | | | 5.500 | % | | | 320,000 | | | | 392,707 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
31
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Revenue Bonds
Series 2005K
07/01/20 | | | 5.000 | % | | | 5,000,000 | | | | 4,815,850 | | |
Puerto Rico Public Buildings Authority(c)
Prerefunded 07/01/14 Revenue Bonds
Government Facilities
Series 2004I
07/01/33 | | | 5.250 | % | | | 130,000 | | | | 135,911 | | |
Refunding Revenue Bonds
Government Facilities
Series 2002F
07/01/20 | | | 5.250 | % | | | 2,000,000 | | | | 1,954,640 | | |
Series 2007M
07/01/31 | | | 6.250 | % | | | 27,000,000 | | | | 25,795,530 | | |
Puerto Rico Public Finance Corp.(c)
Revenue Bonds
Commonwealth Appropriation
Series 1998A (AMBAC)
06/01/19 | | | 5.375 | % | | | 2,190,000 | | | | 2,612,999 | | |
Series 2002E Escrowed to Maturity (AMBAC)
08/01/27 | | | 5.500 | % | | | 450,000 | | | | 534,312 | | |
Commonwealth Appropriations
Series 1998A (AMBAC)
06/01/24 | | | 5.125 | % | | | 3,000,000 | | | | 3,413,580 | | |
Unrefunded Revenue Bonds
Commonwealth Appropriation
Series 2002E Escrowed to Maturity (AMBAC)
08/01/27 | | | 5.500 | % | | | 1,050,000 | | | | 1,246,728 | | |
Commonwealth Appropriations
Series 2002E Escrowed to Maturity
08/01/26 | | | 6.000 | % | | | 2,470,000 | | | | 3,080,658 | | |
Puerto Rico Sales Tax Financing Corp.
1st Subordinated Revenue Bonds
Series 2010C(c)
08/01/41 | | | 5.250 | % | | | 5,000,000 | | | | 4,488,200 | | |
Total | | | | | | | 83,367,815 | | |
Rhode Island 0.1% | |
Rhode Island Student Loan Authority
Revenue Bonds
Series 2007-2 (AMBAC) AMT(a)
12/01/37 | | | 4.850 | % | | | 2,465,000 | | | | 2,291,858 | | |
South Carolina 0.9% | |
City of Myrtle Beach
Tax Allocation Bonds
Myrtle Beach Air Force Base
Series 2006A
10/01/26 | | | 5.250 | % | | | 1,800,000 | | | | 1,566,720 | | |
County of Georgetown
Refunding Revenue Bonds
International Paper Co. Project
Series 2000A
03/15/14 | | | 5.950 | % | | | 1,000,000 | | | | 1,029,210 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
County of Richland
Revenue Bonds
International Paper
Series 2003 AMT(a)
04/01/23 | | | 6.100 | % | | | 1,000,000 | | | | 995,360 | | |
Piedmont Municipal Power Agency
Refunding Revenue Bonds
Electric
Series 1991 (NPFGC/FGIC)
01/01/21 | | | 6.250 | % | | | 1,250,000 | | | | 1,529,475 | | |
Unrefunded Revenue Bonds
Series 1993 (NPFGC)
01/01/25 | | | 5.375 | % | | | 11,370,000 | | | | 12,878,572 | | |
Piedmont Municipal Power Agency(f)
Refunding Revenue Bonds
Capital Appreciation
Subordinated Series 2004A-2 (NPFGC/FGIC)
01/01/24 | | | 0.000 | % | | | 5,000,000 | | | | 3,246,200 | | |
Scago Educational Facilities Corp.
Revenue Bonds
School District No. 5 Spartanburg County
Series 2005 (AGM)
04/01/22 | | | 4.600 | % | | | 8,885,000 | | | | 9,498,420 | | |
South Carolina Jobs-Economic Development Authority
Refunding Revenue Bonds
The Woodlands at Furman Project
Series 2012
11/15/42 | | | 6.000 | % | | | 5,133,239 | | | | 3,060,591 | | |
South Carolina Jobs-Economic Development Authority(f)
Refunding Subordinated Revenue Bonds
The Woodlands at Furman Project
Series 2012
11/15/47 | | | 0.000 | % | | | 1,283,310 | | | | 1,283 | | |
South Carolina State Public Service Authority
Revenue Bonds
Santee Cooper
Series 2006A (NPFGC)
01/01/27 | | | 5.000 | % | | | 2,600,000 | | | | 2,764,684 | | |
Series 2008A
01/01/28 | | | 5.375 | % | | | 250,000 | | | | 277,223 | | |
Total | | | | | | | 36,847,738 | | |
South Dakota 0.4% | |
Heartland Consumers Power District
Revenue Bonds
Series 1992 Escrowed to Maturity (AGM)
01/01/17 | | | 6.000 | % | | | 2,555,000 | | | | 2,616,243 | | |
Unrefunded Revenue Bonds
Series 1992 (AGM)
01/01/17 | | | 6.000 | % | | | 8,635,000 | | | | 9,505,494 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
32
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
State of South Dakota
Revenue Bonds
Series 1993A (AGM)
09/01/17 | | | 6.700 | % | | | 5,975,000 | | | | 6,591,860 | | |
Total | | | | | | | 18,713,597 | | |
Tennessee 0.1% | |
Knox County Health Educational &
Housing Facilities Board
Refunding Revenue Bonds
Fort Sanders Alliance
Series 1993 (NPFGC)
01/01/15 | | | 5.250 | % | | | 5,000,000 | | | | 5,320,850 | | |
Metropolitan Government Nashville & Davidson
County Health & Educational Facilities Board
1st Mortgage
AHF Project
Series 2003(d)
01/01/29 | | | 8.500 | % | | | 391,000 | | | | 405,737 | | |
Total | | | | | | | 5,726,587 | | |
Texas 8.4% | |
Bexar County Health Facilities Development Corp.
Revenue Bonds
Army Retirement Residence Project
Series 2010
07/01/30 | | | 5.875 | % | | | 1,370,000 | | | | 1,448,734 | | |
07/01/45 | | | 6.200 | % | | | 7,200,000 | | | | 7,541,064 | | |
Capital Area Cultural Education Facilities Finance Corp.
Revenue Bonds
Roman Catholic Diocese
Series 2005B
04/01/45 | | | 6.125 | % | | | 13,450,000 | | | | 14,149,938 | | |
Central Texas Regional Mobility Authority
Refunding Revenue Bonds
Senior Lien
Series 2013A
01/01/33 | | | 5.000 | % | | | 2,700,000 | | | | 2,637,576 | | |
Revenue Bonds
Senior Lien
Series 2011
01/01/41 | | | 6.000 | % | | | 8,620,000 | | | | 9,137,372 | | |
Central Texas Regional Mobility Authority(f)
Revenue Bonds
Capital Appreciation
Series 2010
01/01/25 | | | 0.000 | % | | | 2,000,000 | | | | 1,103,140 | | |
City Public Service Board of San Antonio
Revenue Bonds
Series 1997 Escrowed to Maturity
02/01/20 | | | 5.500 | % | | | 1,055,000 | | | | 1,248,287 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
City of Austin Electric Utility
Refunding Revenue Bonds
Series 2008A
11/15/35 | | | 5.250 | % | | | 8,000,000 | | | | 8,354,320 | | |
City of Houston Airport System
Refunding Revenue Bonds
Senior Lien
Series 2009A
07/01/34 | | | 5.500 | % | | | 10,500,000 | | | | 11,448,465 | | |
City of Houston Airport System(a)
Refunding Revenue Bonds
Continental-Special Facilities
Series 2011AAMT
07/15/30 | | | 6.500 | % | | | 5,555,000 | | | | 5,665,156 | | |
Subordinated Lien
Series 2012A AMT
07/01/31 | | | 5.000 | % | | | 5,000,000 | | | | 4,906,950 | | |
City of Houston Utility System(f)
Refunding Revenue Bonds
Capital Appreciation
Series 1998A Escrowed to Maturity (AGM)
12/01/19 | | | 0.000 | % | | | 26,955,000 | | | | 23,562,444 | | |
Unrefunded Revenue Bonds
Capital Appreciation
Series 1998A (AGM)
12/01/19 | | | 0.000 | % | | | 9,545,000 | | | | 8,188,465 | | |
City of Houston
Revenue Bonds
Capital Appreciation-Convention
Series 2001B (AMBAC)(f)
09/01/17 | | | 0.000 | % | | | 2,000,000 | | | | 1,825,360 | | |
Clifton Higher Education Finance Corp.
Revenue Bonds
Idea Public Schools
Series 2011
08/15/41 | | | 5.750 | % | | | 2,000,000 | | | | 2,003,760 | | |
Series 2012
08/15/32 | | | 5.000 | % | | | 2,165,000 | | | | 2,038,174 | | |
08/15/42 | | | 5.000 | % | | | 2,350,000 | | | | 2,096,458 | | |
Corpus Christi Business & Job Development Corp.
Improvement Refunding Revenue Bonds
Arena Project
Series 2002 (AMBAC)
09/01/25 | | | 5.000 | % | | | 3,550,000 | | | | 3,562,460 | | |
Dallas County Flood Control District No. 1
Unlimited General Obligation Refunding Bonds
Series 2002
04/01/32 | | | 7.250 | % | | | 7,500,000 | | | | 7,516,800 | | |
Dallas-Fort Worth International Airport Facilities
Improvement Corp.
Refunding Revenue Bonds
Series 2012B
11/01/35 | | | 5.000 | % | | | 15,000,000 | | | | 14,938,950 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
33
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Deaf Smith County Hospital District
Limited General Obligation Bonds
Series 2010A
03/01/40 | | | 6.500 | % | | | 4,000,000 | | | | 4,286,560 | | |
Harris County Health Facilities Development Corp.
Prerefunded 12/01/18 Revenue Bonds
Memorial Hermann Healthcare System
Series 2008B
12/01/35 | | | 7.250 | % | | | 8,800,000 | | | | 11,428,912 | | |
Revenue Bonds
St. Luke's Episcopal Hospital Project
Series 1991 Escrowed to Maturity
02/15/21 | | | 6.750 | % | | | 1,975,000 | | | | 2,287,307 | | |
Harris County-Houston Sports Authority(f)
Refunding Revenue Bonds
Capital Appreciation-Senior Lien
Series 2001A (NPFGC)
11/15/14 | | | 0.000 | % | | | 3,905,000 | | | | 3,705,494 | | |
11/15/15 | | | 0.000 | % | | | 3,975,000 | | | | 3,593,281 | | |
11/15/16 | | | 0.000 | % | | | 4,040,000 | | | | 3,477,632 | | |
Houston Higher Education Finance Corp.
Revenue Bonds
Cosmos Foundation, Inc.
Series 2011A
05/15/41 | | | 6.875 | % | | | 4,045,000 | | | | 4,520,652 | | |
La Vernia Higher Education Finance Corp.
Revenue Bonds
Kipp, Inc.
Series 2009A
08/15/44 | | | 6.375 | % | | | 7,500,000 | | | | 7,943,550 | | |
Matagorda County Navigation District No. 1
Refunding Revenue Bonds
Central Power & Light Co. Project
Series 2001A
11/01/29 | | | 6.300 | % | | | 2,800,000 | | | | 3,079,104 | | |
Mission Economic Development Corp
Revenue Bonds
Dallas Clean Energy McCommas
Series 2011 AMT(a)
12/01/24 | | | 6.875 | % | | | 15,000,000 | | | | 15,418,050 | | |
North East Independent School District
Unlimited General Obligation Refunding Bonds
Series 2007 (Permanent School Fund Guarantee)
02/01/31 | | | 5.250 | % | | | 10,000,000 | | | | 11,292,100 | | |
North Texas Tollway Authority
Refunding Revenue Bonds
1st Tier
Series 2009C
01/01/44 | | | 5.250 | % | | | 10,000,000 | | | | 10,069,800 | | |
Series 2011
01/01/38 | | | 5.000 | % | | | 5,500,000 | | | | 5,461,445 | | |
First Tier
Series 2012B
01/01/42 | | | 5.000 | % | | | 12,845,000 | | | | 12,690,731 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Toll 2nd Tier
Series 2008F
01/01/38 | | | 5.750 | % | | | 11,355,000 | | | | 11,921,955 | | |
Permanent University Fund
Refunding Revenue Bonds
Series 2007B
07/01/23 | | | 5.250 | % | | | 1,000,000 | | | | 1,209,900 | | |
San Juan Higher Education Finance Authority
Revenue Bonds
Idea Public Schools
Series 2010A
08/15/40 | | | 6.700 | % | | | 2,700,000 | | | | 2,883,681 | | |
Sanger Industrial Development Corp.
Revenue Bonds
Texas Pellets Project
Series 2012B AMT(a)
07/01/38 | | | 8.000 | % | | | 35,000,000 | | | | 35,206,150 | | |
Tarrant County Cultural Education
Facilities Finance Corp.
Revenue Bonds
Air Force Obligation Group
Series 2007
05/15/27 | | | 5.125 | % | | | 2,000,000 | | | | 2,009,920 | | |
CC Young Memorial Home
Series 2009A
02/15/38 | | | 8.000 | % | | | 4,000,000 | | | | 4,295,560 | | |
Stayton at Museum Way
Series 2009A
11/15/44 | | | 8.250 | % | | | 12,000,000 | | | | 12,978,240 | | |
Texas City Industrial Development Corp.
Refunding Revenue Bonds
Arco Pipe Line Co. Project
Series 1990
10/01/20 | | | 7.375 | % | | | 2,000,000 | | | | 2,625,240 | | |
Texas Municipal Gas Acquisition & Supply Corp III
Revenue Bonds
Series 2012
12/15/29 | | | 5.000 | % | | | 8,300,000 | | | | 8,073,410 | | |
Texas Municipal Gas Acquisition & Supply Corp. III
Revenue Bonds
Series 2012
12/15/32 | | | 5.000 | % | | | 7,500,000 | | | | 7,098,750 | | |
Texas State Turnpike Authority(f)
Revenue Bonds
Capital Appreciation 1st Tier
Series 2002A (AMBAC)
08/15/16 | | | 0.000 | % | | | 7,000,000 | | | | 6,622,000 | | |
08/15/18 | | | 0.000 | % | | | 10,000,000 | | | | 8,721,700 | | |
08/15/19 | | | 0.000 | % | | | 10,330,000 | | | | 8,520,700 | | |
Texas Transportation Commission
Refunding Revenue Bonds
1st Tier
Series 2012-A
08/15/41 | | | 5.000 | % | | | 16,075,000 | | | | 15,397,278 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
34
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Travis County Health Facilities Development Corp.
Revenue Bonds
Querencia Barton Creek Project
Series 2005
11/15/25 | | | 5.500 | % | | | 1,000,000 | | | | 1,003,740 | | |
Uptown Development Authority
Tax Allocation Bonds
Infrastructure Improvement Facilities
Series 2009
09/01/29 | | | 5.500 | % | | | 500,000 | | | | 520,660 | | |
Total | | | | | | | 361,717,375 | | |
Utah 0.5% | |
City of Eagle Mountain
Special Assessment Bonds
Special Improvement District No. 2000-1
Series 2006
02/01/21 | | | 8.250 | % | | | 1,846,000 | | | | 1,848,049 | | |
City of Provo Energy System
Revenue Bonds
Series 1980 Escrowed to Maturity
04/01/15 | | | 10.125 | % | | | 440,000 | | | | 487,467 | | |
Utah Housing Corp.
Revenue Bonds
Series 2003A-1 AMT(a)
07/01/24 | | | 5.125 | % | | | 695,000 | | | | 697,579 | | |
Utah State Building Ownership Authority
Refunding Revenue Bonds
State Facilities Master Lease Program
Series 1998C Escrowed to Maturity (AGM)
05/15/19 | | | 5.500 | % | | | 3,450,000 | | | | 3,920,166 | | |
Utah Transit Authority
Refunding Revenue Bonds
Series 2006C (AGM)
06/15/29 | | | 5.250 | % | | | 10,000,000 | | | | 11,445,200 | | |
Revenue Bonds
Series 2008A
06/15/25 | | | 5.000 | % | | | 2,000,000 | | | | 2,250,340 | | |
Total | | | | | | | 20,648,801 | | |
Virgin Islands 0.1% | |
Virgin Islands Public Finance Authority
Refunding Revenue Bonds
Gross Receipts Taxes Loan
Series 2012-A(c)
10/01/32 | | | 5.000 | % | | | 4,000,000 | | | | 3,908,120 | | |
Virginia 1.3% | |
City of Chesapeake Expressway Toll Road
Revenue Bonds
Transportation System
Senior Series 2012A
07/15/47 | | | 5.000 | % | | | 7,505,000 | | | | 6,718,251 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Fairfax County Industrial Development Authority
Refunding Revenue Bonds
Inova Health Systems Project
Series 1993
08/15/23 | | | 5.000 | % | | | 10,000,000 | | | | 11,380,000 | | |
Fairfax County Water Authority
Refunding Revenue Bonds
Subordinated Series 2005B
04/01/24 | | | 5.250 | % | | | 6,175,000 | | | | 7,488,484 | | |
Mosaic District Community Development Authority
Special Assessment Bonds
Series 2011A
03/01/26 | | | 6.625 | % | | | 2,145,000 | | | | 2,358,385 | | |
Richmond Metropolitan Authority
Refunding Revenue Bonds
Series 1998 (NPFGC/FGIC)
07/15/22 | | | 5.250 | % | | | 5,380,000 | | | | 6,034,692 | | |
Escrowed to Maturity
07/15/22 | | | 5.250 | % | | | 2,420,000 | | | | 2,782,831 | | |
Tobacco Settlement Financing Corp.
Prerefunded 06/01/15 Asset-Backed Revenue Bonds
Series 2005
06/01/26 | | | 5.500 | % | | | 7,095,000 | | | | 7,564,334 | | |
06/01/37 | | | 5.625 | % | | | 5,500,000 | | | | 6,022,060 | | |
Virginia College Building Authority
Revenue Bonds
Washington & Lee University
Series 2001
01/01/21 | | | 5.375 | % | | | 5,000,000 | | | | 5,819,900 | | |
Virginia Resources Authority
Revenue Bonds
State Revolving Fund
Series 2009
10/01/26 | | | 5.000 | % | | | 1,500,000 | | | | 1,726,260 | | |
Total | | | | | | | 57,895,197 | | |
Washington 3.4% | |
Clark County School District No. 37 Vancouver
Unlimited General Obligation Bonds
Series 2001C (NPFGC/FGIC)(f)
12/01/16 | | | 0.000 | % | | | 3,000,000 | | | | 2,881,260 | | |
Greater Wenatchee Regional Events
Center Public Facilities District
Revenue Bonds
Series 2012A
09/01/27 | | | 5.000 | % | | | 1,540,000 | | | | 1,473,857 | | |
09/01/32 | | | 5.250 | % | | | 1,000,000 | | | | 949,130 | | |
NJB Properties
Revenue Bonds
King County Washington Project
Series 2006A
12/01/25 | | | 5.000 | % | | | 6,445,000 | | | | 6,971,428 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
35
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Skagit County Public Hospital District No. 1
Revenue Bonds
Skagit Valley Hospital
Series 2005
12/01/30 | | | 5.500 | % | | | 1,235,000 | | | | 1,250,783 | | |
Series 2007
12/01/28 | | | 5.750 | % | | | 1,500,000 | | | | 1,540,875 | | |
12/01/32 | | | 5.750 | % | | | 2,000,000 | | | | 2,035,820 | | |
Snohomish County Public Utility District No. 1
Refunding Revenue Bonds
Generation System
Series 1986A Escrowed to Maturity
01/01/20 | | | 5.000 | % | | | 17,750,000 | | | | 21,129,777 | | |
State of Washington
Unlimited General Obligation Bonds
Series 2007D (AGM)
01/01/30 | | | 4.500 | % | | | 24,470,000 | | | | 24,631,013 | | |
Various Purpose
Series 2008A
07/01/27 | | | 5.000 | % | | | 9,730,000 | | | | 10,727,520 | | |
Washington Health Care Facilities Authority
Revenue Bonds
Kadlec Regional Medical Center
Series 2012
12/01/42 | | | 5.000 | % | | | 8,220,000 | | | | 7,213,872 | | |
Overlake Hospital Medical Center
Series 2010
07/01/30 | | | 5.500 | % | | | 3,000,000 | | | | 3,049,830 | | |
Swedish Health Services
Series 2009A
11/15/33 | | | 6.500 | % | | | 11,800,000 | | | | 12,742,820 | | |
Washington Higher Education Facilities Authority
Refunding Revenue Bonds
Whitworth University Project
Series 2009
10/01/40 | | | 5.625 | % | | | 4,685,000 | | | | 4,766,285 | | |
Washington State Housing Finance Commission
Refunding Revenue Bonds
Nonprofit Housing Revenue-Mirabella
Series 2012
10/01/32 | | | 6.500 | % | | | 10,000,000 | | | | 9,046,800 | | |
10/01/47 | | | 6.750 | % | | | 1,000,000 | | | | 879,960 | | |
Presbyterian Retirement
Series 2013
01/01/23 | | | 5.000 | % | | | 1,455,000 | | | | 1,434,543 | | |
01/01/28 | | | 5.000 | % | | | 2,015,000 | | | | 1,868,147 | | |
01/01/33 | | | 5.000 | % | | | 2,570,000 | | | | 2,274,758 | | |
01/01/43 | | | 5.250 | % | | | 7,550,000 | | | | 6,471,860 | | |
Skyline At First Hill Project
Series 2012
01/01/19 | | | 7.000 | % | | | 5,070,000 | | | | 5,302,358 | | |
Revenue Bonds
Skyline At First Hill Project
Series 2007A
01/01/27 | | | 5.625 | % | | | 2,500,000 | | | | 2,316,525 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
01/01/38 | | | 5.625 | % | | | 19,450,000 | | | | 16,952,425 | | |
Total | | | | | | | 147,911,646 | | |
West Virginia 0.4% | |
West Virginia Economic Development Authority
Refunding Revenue Bonds
Appalachian Power Amos
Series 2010A
12/01/38 | | | 5.375 | % | | | 3,850,000 | | | | 3,924,420 | | |
West Virginia State Building Commission
Refunding Revenue Bonds
West Virginia Regional Jail
Series 1998A (AMBAC)
07/01/21 | | | 5.375 | % | | | 3,215,000 | | | | 3,452,621 | | |
West Virginia University
Revenue Bonds
University System Projects
Series 1998A (NFPGC)
04/01/28 | | | 5.250 | % | | | 5,000,000 | | | | 5,640,600 | | |
West Virginia University(f)
Revenue Bonds
University System Projects
Series 2000A (AMBAC)
04/01/16 | | | 0.000 | % | | | 3,300,000 | | | | 3,182,256 | | |
Total | | | | | | | 16,199,897 | | |
Wisconsin 3.5% | |
City of La Crosse
Refunding Revenue Bonds
Northern States Power Co. Project
Series 1996 AMT(a)
11/01/21 | | | 6.000 | % | | | 6,000,000 | | | | 7,046,820 | | |
Monroe Redevelopment Authority
Revenue Bonds
Monroe Clinic, Inc.
Series 2009
02/15/39 | | | 5.875 | % | | | 5,000,000 | | | | 5,245,000 | | |
Public Finance Authority(a)
Refunding Revenue Bonds
TRIPS Senior Obligation Group
Series 2012 AMT
07/01/28 | | | 5.250 | % | | | 4,000,000 | | | | 4,025,280 | | |
07/01/42 | | | 5.000 | % | | | 2,000,000 | | | | 1,813,120 | | |
State of Wisconsin
Revenue Bonds
Series 2009A
05/01/33 | | | 5.750 | % | | | 17,700,000 | | | | 19,783,113 | | |
Wisconsin Health & Educational Facilities Authority
Refunding Revenue Bonds
Wheaton Healthcare
Series 2006B
08/15/24 | | | 5.125 | % | | | 15,910,000 | | | | 16,737,479 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
36
Portfolio of Investments (continued)
July 31, 2013
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
08/15/25 | | | 5.125 | % | | | 15,500,000 | | | | 16,122,015 | | |
Revenue Bonds
Aurora Health Care, Inc.
Series 2003
04/15/33 | | | 6.400 | % | | | 4,250,000 | | | | 4,255,228 | | |
Series 2010A
04/15/39 | | | 5.625 | % | | | 6,100,000 | | | | 6,213,582 | | |
Beaver Dam Community Hospitals
Series 2013A
08/15/28 | | | 5.125 | % | | | 6,750,000 | | | | 6,533,325 | | |
08/15/34 | | | 5.250 | % | | | 8,000,000 | | | | 7,561,840 | | |
Medical College of Wisconsin
Series 2008A
12/01/35 | | | 5.250 | % | | | 14,400,000 | | | | 14,660,064 | | |
ProHealth Care, Inc.
Series 2012
08/15/28 | | | 5.000 | % | | | 1,570,000 | | | | 1,623,506 | | |
ProHealth Care, Inc. Obligation Group
Series 2009
02/15/32 | | | 6.625 | % | | | 1,000,000 | | | | 1,034,720 | | |
02/15/39 | | | 6.625 | % | | | 25,150,000 | | | | 27,333,271 | | |
Riverview Hospital Association
Series 2008
04/01/33 | | | 5.750 | % | | | 6,000,000 | | | | 6,184,800 | | |
04/01/38 | | | 5.750 | % | | | 4,000,000 | | | | 4,119,840 | | |
St. John's Community, Inc.
Series 2009A
09/15/29 | | | 7.250 | % | | | 1,000,000 | | | | 1,079,550 | | |
09/15/39 | | | 7.625 | % | | | 1,000,000 | | | | 1,084,000 | | |
Total | | | | | | | 152,456,553 | | |
Wyoming 0.2% | |
County of Campbell
Revenue Bonds
Basin Electric Power Cooperative
Series 2009A
07/15/39 | | | 5.750 | % | | | 7,900,000 | | | | 8,343,111 | | |
Total Municipal Bonds
(Cost: $3,936,011,514) | | | | | | | 4,167,301,356 | | |
Municipal Bonds Held in Trust 0.4%
Massachusetts 0.4% | |
Massachusetts Health & Educational
Facilities Authority
Revenue Bonds
Harvard University
Series 2009A(b)(h)(i)
11/15/36 | | | 5.500 | % | | | 16,000,000 | | | | 17,839,520 | | |
Total Municipal Bonds Held in Trust
(Cost: $17,453,124) | | | | | | | 17,839,520 | | |
Floating Rate Notes 1.2%
Issue
Description | | Effective
Yield | | Principal
Amount ($) | | Value ($) | |
Colorado 0.2% | |
Colorado Educational & Cultural Facilities Authority(j)(k)
Revenue Bonds
Series 2007 VRDN (U.S. Bank)
06/01/37 | | | 0.060 | % | | | 1,200,000 | | | | 1,200,000 | | |
UJA Federation of Northern New Jersey
VRDN Series 2007 (JPMorgan Chase Bank)
05/01/37 | | | 0.060 | % | | | 2,750,000 | | | | 2,750,000 | | |
County of Pitkin
Refunding Revenue Bonds
Aspen Skiing Co.
VRDN Series 1994B (JP Morgan Chase Bank) AMT(a)(j)(k)
04/01/14 | | | 0.080 | % | | | 5,000,000 | | | | 5,000,000 | | |
Total | | | | | | | 8,950,000 | | |
Florida —% | |
Orange County School Board
Certificate of Participation
VRDN Series 2008E (Wells Fargo Bank)(j)(k)
08/01/22 | | | 0.040 | % | | | 800,000 | | | | 800,000 | | |
Illinois 0.2% | |
City of Chicago
Unlimited General Obligation Bonds
VRDN Series 2003 (JPMorgan Chase Bank)(j)(k)
01/01/34 | | | 0.500 | % | | | 8,000,000 | | | | 8,000,000 | | |
Iowa —% | |
Iowa Finance Authority
Revenue Bonds
Wahlert High School
VRDN Series 2006 (Wells Fargo Bank)(j)(k)
03/01/36 | | | 0.070 | % | | | 1,000,000 | | | | 1,000,000 | | |
Iowa Higher Education Loan Authority
Revenue Bonds
Des Moines University Osteopath
VRDN Series 2003 (U.S. Bank)(j)(k)
10/01/33 | | | 0.080 | % | | | 600,000 | | | | 600,000 | | |
Total | | | | | | | 1,600,000 | | |
Kentucky 0.1% | |
County of Christian
Revenue Bonds
VRDN Series 2007 (U.S. Bank)(j)(k)
04/01/37 | | | 0.050 | % | | | 550,000 | | | | 550,000 | | |
County of Shelby
Revenue Bonds
VRDN Series 2004A (U.S. Bank)(j)(k)
09/01/34 | | | 0.050 | % | | | 1,675,000 | | | | 1,675,000 | | |
Total | | | | | | | 2,225,000 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
37
Portfolio of Investments (continued)
July 31, 2013
Floating Rate Notes (continued)
Issue
Description | | Effective
Yield | | Principal
Amount ($) | | Value ($) | |
Minnesota 0.1% | |
City of Minneapolis/St. Paul Housing &
Redevelopment Authority
Revenue Bonds
Allina Health Systems
VRDN Series 2009B-2 (JP Morgan Chase Bank)(j)(k)
11/15/35 | | | 0.050 | % | | | 1,050,000 | | | | 1,050,000 | | |
Minnesota Higher Education Facilities Authority
Revenue Bonds
St. Olaf College
VRDN Series 2002 (Harris)(j)(k)
10/01/20 | | | 0.070 | % | | | 6,200,000 | | | | 6,200,000 | | |
Total | | | | | | | 7,250,000 | | |
Missouri —% | |
Missouri Development Finance Board
Revenue Bonds
VRDN Series 2000C (U.S. Bank)(j)(k)
12/01/20 | | | 0.080 | % | | | 1,000,000 | | | | 1,000,000 | | |
New Hampshire 0.1% | |
New Hampshire Business Finance Authority
Revenue Bonds
Littleton Regional Hospital
VRDN Series 2007 (TD Banknorth)(j)(k)
10/01/42 | | | 0.060 | % | | | 3,445,000 | | | | 3,445,000 | | |
New York 0.3% | |
Triborough Bridge & Tunnel Authority
Revenue Bonds
General
VRDN Series 2005B-2C (U.S. Bank)(j)(k)
01/01/32 | | | 0.040 | % | | | 12,655,000 | | | | 12,655,000 | | |
Vermont 0.1% | |
Vermont Educational & Health Buildings
Financing Agency(j)(k)
Revenue Bonds
North Country Hospital & Health
VRDN Series 2007A (TD Banknorth)
10/01/34 | | | 0.040 | % | | | 1,200,000 | | | | 1,200,000 | | |
Northeastern VT Regional Hospital
VRDN Series 2004A (TD Banknorth)
10/01/29 | | | 0.040 | % | | | 1,400,000 | | | | 1,400,000 | | |
Total | | | | | | | 2,600,000 | | |
Wisconsin 0.1% | |
Wisconsin Health & Educational Facilities Authority(j)(k)
Revenue Bonds
Fort Healthcare, Inc.
VRDN Series 2007A (JP Morgan Chase Bank)
05/01/37 | | | 0.090 | % | | | 3,300,000 | | | | 3,300,000 | | |
Floating Rate Notes (continued)
Issue
Description | | Effective
Yield | | Principal
Amount ($) | | Value ($) | |
Meriter Hospital, Inc.
VRDN Series 2002 (JP Morgan Chase & Co.)
12/01/32 | | | 0.090 | % | | | 2,405,000 | | | | 2,405,000 | | |
Total | | | | | | | 5,705,000 | | |
Total Floating Rate Notes
(Cost: $54,230,000) | | | | | | | 54,230,000 | | |
Municipal Short Term 0.1%
Issue
Description | | Effective
Yield | | Principal
Amount ($) | | Value ($) | |
Louisiana 0.1% | |
Louisiana Public Facilities Authority
Revenue Bonds
Louisiana Pellets, Inc. Project
Series 2013A AMT(a)
08/01/14 | | | 10.850 | % | | | 3,890,000 | | | | 3,865,843 | | |
Total Municipal Short Term
(Cost: $3,890,000) | | | | | | | 3,865,843 | | |
Money Market Funds 1.0%
| | | Shares | | Value ($) | |
Dreyfus Tax-Exempt Cash Management Fund,
0.000%(l) | | | 21,468,584 | | | | 21,468,584 | | |
JPMorgan Municipal Money Market Fund,
0.010%(l), 0% | | | 19,948,022 | | | | 19,948,022 | | |
Total Money Market Funds
(Cost: $41,416,606) | | | | | 41,416,606 | | |
Total Investments
(Cost: $4,053,001,244) | | | | | 4,284,653,325 | | |
Other Assets & Liabilities, Net | | | | | 26,178,613 | | |
Net Assets | | | | | 4,310,831,938 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
38
Portfolio of Investments (continued)
July 31, 2013
Notes to Portfolio of Investments
(a) Income from this security may be subject to alternative minimum tax.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2013, the value of these securities amounted to $45,887,052 or 1.06% of net assets.
(c) 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 July 31, 2013, the value of these securities amounted to $112,645,056 or 2.61% of net assets.
(d) Identifies issues considered to be illiquid as to their marketability. The aggregate value of such securities at July 31, 2013 was $44,162,953, representing 1.02% of net assets. Information concerning such security holdings at July 31, 2013 is as follows:
Security Description | | Acquisition Dates | | Cost ($) | |
Boston Industrial Development Financing Authority
Revenue Bonds
Crosstown Center Project
Senior Series 2002 AMT
6.500% 09/01/35 | | 09/20/02 - 04/07/08 | | | 4,953,760 | | |
Broward County Housing Finance Authority
Revenue Bonds
Chaves Lake Apartments Project
Series 2000A AMT
7.500% 07/01/40 | | 03/07/00 | | | 7,676,137 | | |
Cabazon Band Mission Indians
Revenue Bonds
Series 2004
13.000% 10/01/11 | | 05/14/10 | | | 365,949 | | |
Cabazon Band Mission Indians
Revenue Bonds
Series 2004
8.375% 10/01/15 | | 10/04/04 - 05/14/10 | | | 1,691,224 | | |
Cabazon Band Mission Indians
Revenue Bonds
Series 2004
8.750% 10/01/19 | | 10/04/04 - 05/14/10 | | | 8,381,812 | | |
Cabazon Band Mission Indians
Revenue Bonds
Series 2010
8.375% 10/01/20 | | 05/14/10 | | | 1,415,000 | | |
California Municipal Finance Authority
Revenue Bonds
UTS Renewable Energy - Waste Water
Series 2011 AMT
7.500% 12/01/32 | | 12/22/11 | | | 1,925,000 | | |
Capital Trust Agency, Inc.
Revenue Bonds
Atlantic Housing Foundation
Subordinated Series 2008B
7.000% 07/15/32 | | 07/23/08 | | | 1,820,000 | | |
Chester County Industrial Development Authority
1st Mortgage
RHA/Pennsylvania Nursing Home
Series 2002
8.500% 05/01/32 | | 05/01/02 | | | 5,364,699 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
39
Portfolio of Investments (continued)
July 31, 2013
Notes to Portfolio of Investments (continued)
Security Description | | Acquisition Dates | | Cost ($) | |
Durham Housing Authority
Revenue Bonds
Series 2005 AMT
5.650% 02/01/38 | | 12/18/06 | | | 3,163,542 | | |
Hickory Chase Community Authority
Revenue Bonds
Hickory Chase Project
Series 2008
6.750% 12/01/27 | | 04/23/08 | | | 5,644,000 | | |
Indianapolis Airport Authority
Revenue Bonds
Special Facilities-United Air Lines Project
Series 1995A AMT
6.500% 11/15/31 | | 10/17/95 - 10/31/12 | | | 803,250 | | |
Massachusetts Development Finance Agency
Revenue Bonds
Groves-Lincoln
Series 2009A
7.500% 06/01/29 | | 11/12/09 | | | 635,123 | | |
Massachusetts Development Finance Agency
Revenue Bonds
Groves-Lincoln
Series 2009A
7.750% 06/01/39 | | 11/12/09 | | | 1,438,366 | | |
Metropolitan Government Nashville & Davidson County
Health & Educational Facilities Board
1st Mortgage
AHF Project
Series 2003
8.500% 01/01/29 | | 12/30/03 | | | 369,468 | | |
Michigan Strategic Fund
Refunding Revenue Bonds
Michigan Sugar Co.- Carollton
Series 1998C AMT
6.550% 11/01/25 | | 11/24/98 | | | 4,250,000 | | |
Middlesex County Improvement Authority
Revenue Bonds
Heldrich Center Hotel
Series 2005C
8.750% 01/01/37 | | 09/25/07 | | | 1,461,135 | | |
Middlesex County Improvement Authority
Subordinated Revenue Bonds
Heldrich Center Hotel
Series 2005B
6.250% 01/01/37 | | 03/18/05 | | | 3,865,993 | | |
Rankin County Five Lakes Utility District
Series 1994
7.000% 07/15/37 | | 10/02/07 | | | 455,000 | | |
Resolution Trust Corp.
Pass-Through Certificates
Series 1993A
8.500% 12/01/16 | | 08/27/93 | | | 6,661,660 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
40
Portfolio of Investments (continued)
July 31, 2013
Notes to Portfolio of Investments (continued)
Security Description | | Acquisition Dates | | Cost ($) | |
Washington County Industrial Development Authority
1st Mortgage
Central Project
Series 2003
8.500% 01/01/29 | | 12/30/03 | | | 1,786,863 | | |
(e) Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At July 31, 2013, the value of these securities amounted to $8,241,651, which represents 0.19% of net assets.
(f) Zero coupon bond.
(g) Represents a security purchased on a when-issued or delayed delivery basis.
(h) Variable rate security.
(i) The Fund entered into transactions in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trust funds the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The municipal bonds transferred to the trusts remain in the Fund's Portfolio of Investments.
(j) Interest rate varies to reflect current market conditions; rate shown is the effective rate on July 31, 2013.
(k) 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.
(l) The rate shown is the seven-day current annualized yield at July 31, 2013.
Abbreviation Legend
AGM Assured Guaranty Municipal Corporation
AMBAC Ambac Assurance Corporation
AMT Alternative Minimum Tax
CHF Collegiate Housing Foundation
FGIC Financial Guaranty Insurance Company
FHA Federal Housing Authority
FHLMC Federal Home Loan Mortgage Corporation
FNMA Federal National Mortgage Association
GNMA Government National Mortgage Association
IBC Insurance Bond Certificate
MGIC Mortgage Guaranty Insurance Corporation
NPFGC National Public Finance Guarantee Corporation
TCRS Transferable Custodial Receipts
VRDN Variable Rate Demand Note
XLCA XL Capital Assurance
Fair Value Measurements
Generally accepted accounting principles (GAAP) require 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.
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 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.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
41
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
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 (including NAV for open-end mutual funds). 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 carrying out the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
42
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
The following table is a summary of the inputs used to value the Fund's investments at July 31, 2013:
Description | | Level 1
Quoted Prices in Active
Markets for Identical
Assets ($) | |
Level 2
Other Significant
Observable Inputs ($) | |
Level 3
Significant
Unobservable Inputs ($) | |
Total ($) | |
Bonds | |
Municipal Bonds | | | — | | | | 4,167,301,356 | | | | — | | | | 4,167,301,356 | | |
Municipal Bonds Held in Trust | | | — | | | | 17,839,520 | | | | — | | | | 17,839,520 | | |
Total Bonds | | | — | | | | 4,185,140,876 | | | | — | | | | 4,185,140,876 | | |
Short-Term Securities | |
Floating Rate Notes | | | — | | | | 54,230,000 | | | | — | | | | 54,230,000 | | |
Municipal Short Term | | | — | | | | 3,865,843 | | | | — | | | | 3,865,843 | | |
Total Short-Term Securities | | | — | | | | 58,095,843 | | | | — | | | | 58,095,843 | | |
Mutual Funds | |
Money Market Funds | | | 41,416,606 | | | | — | | | | — | | | | 41,416,606 | | |
Total Mutual Funds | | | 41,416,606 | | | | — | | | | — | | | | 41,416,606 | | |
Total | | | 41,416,606 | | | | 4,243,236,719 | | | | — | | | | 4,284,653,325 | | |
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.
There were no transfers of financial assets between Levels 1 and 2 during the period.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
43
Statement of Assets and Liabilities
July 31, 2013
Assets | |
Investments, at value | |
(identified cost $4,053,001,244) | | $ | 4,284,653,325 | | |
Receivable for: | |
Investments sold | | | 4,365,829 | | |
Capital shares sold | | | 12,045,767 | | |
Dividends | | | 1 | | |
Interest | | | 48,392,926 | | |
Prepaid expenses | | | 59,510 | | |
Trustees' deferred compensation plan | | | 324,606 | | |
Total assets | | | 4,349,841,964 | | |
Liabilities | |
Short-term floating rate notes outstanding | | | 12,000,000 | | |
Payable for: | |
Investments purchased on a delayed delivery basis | | | 1,407,038 | | |
Capital shares purchased | | | 8,204,156 | | |
Dividend distributions to shareholders | | | 16,052,729 | | |
Investment management fees | | | 43,693 | | |
Distribution and/or service fees | | | 21,473 | | |
Transfer agent fees | | | 423,839 | | |
Administration fees | | | 6,935 | | |
Compensation of board members | | | 53,603 | | |
Chief compliance officer expenses | | | 754 | | |
Other expenses | | | 471,200 | | |
Trustees' deferred compensation plan | | | 324,606 | | |
Total liabilities | | | 39,010,026 | | |
Net assets applicable to outstanding capital stock | | $ | 4,310,831,938 | | |
Represented by | |
Paid-in capital | | $ | 4,167,243,043 | | |
Undistributed net investment income | | | 15,733,553 | | |
Accumulated net realized loss | | | (103,796,739 | ) | |
Unrealized appreciation (depreciation) on: | |
Investments | | | 231,652,081 | | |
Total — representing net assets applicable to outstanding capital stock | | $ | 4,310,831,938 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
44
Statement of Assets and Liabilities (continued)
July 31, 2013
Class A | |
Net assets | | $ | 3,546,638,829 | | |
Shares outstanding | | | 265,096,092 | | |
Net asset value per share | | $ | 13.38 | | |
Maximum offering price per share(a) | | $ | 14.05 | | |
Class B | |
Net assets | | $ | 5,836,021 | | |
Shares outstanding | | | 436,647 | | |
Net asset value per share | | $ | 13.37 | | |
Class C | |
Net assets | | $ | 105,413,722 | | |
Shares outstanding | | | 7,882,428 | | |
Net asset value per share | | $ | 13.37 | | |
Class R4(b) | |
Net assets | | $ | 104,390 | | |
Shares outstanding | | | 7,807 | | |
Net asset value per share | | $ | 13.37 | | |
Class Z | |
Net assets | | $ | 652,838,976 | | |
Shares outstanding | | | 48,792,159 | | |
Net asset value per share | | $ | 13.38 | | |
(a) The maximum offering price per share is calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge of 4.75%.
(b) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
45
Statement of Operations
Year Ended July 31, 2013
Net investment income | |
Income: | |
Dividends | | $ | 6,395 | | |
Interest | | | 223,254,774 | | |
Total income | | | 223,261,169 | | |
Expenses: | |
Investment management fees | | | 17,140,124 | | |
Distribution and/or service fees | |
Class A | | | 7,592,206 | | |
Class B | | | 77,568 | | |
Class C | | | 970,609 | | |
Transfer agent fees | |
Class A | | | 4,250,733 | | |
Class B | | | 9,135 | | |
Class C | | | 114,496 | | |
Class R4(a) | | | 32 | | |
Class Z | | | 853,772 | | |
Administration fees | | | 2,709,174 | | |
Compensation of board members | | | 130,211 | | |
Custodian fees | | | 36,147 | | |
Printing and postage fees | | | 289,664 | | |
Registration fees | | | 86,682 | | |
Professional fees | | | 145,082 | | |
Interest expense | | | 117,282 | | |
Chief compliance officer expenses | | | 3,704 | | |
Other | | | 197,510 | | |
Total expenses | | | 34,724,131 | | |
Fees waived by Distributor — Class C | | | (198,871 | ) | |
Expense reductions | | | (7,259 | ) | |
Total net expenses | | | 34,518,001 | | |
Net investment income | | | 188,743,168 | | |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments | | | 14,847,189 | | |
Net realized gain | | | 14,847,189 | | |
Net change in unrealized appreciation (depreciation) on: | |
Investments | | | (311,399,216 | ) | |
Net change in unrealized appreciation (depreciation) | | | (311,399,216 | ) | |
Net realized and unrealized loss | | | (296,552,027 | ) | |
Net decrease in net assets from operations | | $ | (107,808,859 | ) | |
(a) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
46
Statement of Changes in Net Assets
| | | Year Ended
July 31,
2013(a) | | Year Ended
July 31,
2012(b) | | Year Ended
November 30,
2011 | |
Operations | |
Net investment income | | $ | 188,743,168 | | | $ | 129,889,495 | | | $ | 143,826,131 | | |
Net realized gain (loss) | | | 14,847,189 | | | | (5,924,021 | ) | | | (9,818,214 | ) | |
Net change in unrealized appreciation (depreciation) | | | (311,399,216 | ) | | | 283,886,630 | | | | 106,690,130 | | |
Net increase (decrease) in net assets resulting from operations | | | (107,808,859 | ) | | | 407,852,104 | | | | 240,698,047 | | |
Distributions to shareholders | |
Net investment income | |
Class A | | | (151,544,076 | ) | | | (103,615,875 | ) | | | (109,526,581 | ) | |
Class B | | | (264,003 | ) | | | (274,672 | ) | | | (376,116 | ) | |
Class C | | | (3,515,554 | ) | | | (2,071,509 | ) | | | (2,194,051 | ) | |
Class R4 | | | (1,243 | ) | | | — | | | | — | | |
Class Z | | | (31,942,384 | ) | | | (21,546,227 | ) | | | (33,366,448 | ) | |
Total distributions to shareholders | | | (187,267,260 | ) | | | (127,508,283 | ) | | | (145,463,196 | ) | |
Increase (decrease) in net assets from capital stock activity | | | (126,009,233 | ) | | | (68,386,578 | ) | | | 2,281,307,620 | | |
Proceeds from regulatory settlements (Note 6) | | | — | | | | 1,263 | | | | — | | |
Total increase (decrease) in net assets | | | (421,085,352 | ) | | | 211,958,506 | | | | 2,376,542,471 | | |
Net assets at beginning of year | | | 4,731,917,290 | | | | 4,519,958,784 | | | | 2,143,416,313 | | |
Net assets at end of year | | $ | 4,310,831,938 | | | $ | 4,731,917,290 | | | $ | 4,519,958,784 | | |
Undistributed net investment income | | $ | 15,733,553 | | | $ | 13,699,346 | | | $ | 10,904,960 | | |
(a) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) For the period from December 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from November 30 to July 31.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
47
Statement of Changes in Net Assets (continued)
| | | Year Ended July 31, 2013(a) | | Year Ended July 31, 2012(b) | | Year Ended November 30, 2011 | |
| | | Shares | | Dollars ($) | | Shares | | Dollars ($) | | Shares | | Dollars ($) | |
Capital stock activity | |
Class A shares | |
Subscriptions(c) | | | 10,094,276 | | | | 143,754,691 | | | | 7,682,634 | | | | 107,162,181 | | | | 6,323,418 | | | | 83,458,835 | | |
Fund merger | | | 12,568,916 | | | | 179,852,375 | | | | — | | | | — | | | | 190,123,507 | | | | 2,497,521,878 | | |
Distributions reinvested | | | 8,552,788 | | | | 121,064,946 | | | | 5,692,109 | | | | 79,689,322 | | | | 6,053,123 | | | | 79,801,662 | | |
Redemptions | | | (35,834,029 | ) | | | (505,443,034 | ) | | | (19,805,586 | ) | | | (275,674,737 | ) | | | (25,833,279 | ) | | | (338,087,704 | ) | |
Net increase (decrease) | | | (4,618,049 | ) | | | (60,771,022 | ) | | | (6,430,843 | ) | | | (88,823,234 | ) | | | 176,666,769 | | | | 2,322,694,671 | | |
Class B shares | |
Subscriptions | | | 22,924 | | | | 326,910 | | | | 25,006 | | | | 349,550 | | | | 24,424 | | | | 324,482 | | |
Fund merger | | | 61,895 | | | | 885,042 | | | | — | | | | — | | | | 1,348,328 | | | | 17,698,627 | | |
Distributions reinvested | | | 15,602 | | | | 220,964 | | | | 15,940 | | | | 222,656 | | | | 19,494 | | | | 256,930 | | |
Redemptions(c) | | | (295,629 | ) | | | (4,130,996 | ) | | | (350,098 | ) | | | (4,926,501 | ) | | | (970,488 | ) | | | (12,716,353 | ) | |
Net increase (decrease) | | | (195,208 | ) | | | (2,698,080 | ) | | | (309,152 | ) | | | (4,354,295 | ) | | | 421,758 | | | | 5,563,686 | | |
Class C shares | |
Subscriptions | | | 1,260,887 | | | | 17,991,259 | | | | 943,493 | | | | 13,161,965 | | | | 641,064 | | | | 8,476,571 | | |
Fund merger | | | 1,601,358 | | | | 22,913,139 | | | | — | | | | — | | | | 3,452,081 | | | | 45,338,027 | | |
Distributions reinvested | | | 199,041 | | | | 2,810,118 | | | | 110,114 | | | | 1,541,112 | | | | 100,543 | | | | 1,325,678 | | |
Redemptions | | | (1,706,869 | ) | | | (23,887,197 | ) | | | (612,772 | ) | | | (8,544,171 | ) | | | (953,671 | ) | | | (12,399,708 | ) | |
Net increase | | | 1,354,417 | | | | 19,827,319 | | | | 440,835 | | | | 6,158,906 | | | | 3,240,017 | | | | 42,740,568 | | |
Class R4 shares | |
Subscriptions | | | 7,746 | | | | 110,792 | | | | — | | | | — | | | | — | | | | — | | |
Distributions reinvested | | | 89 | | | | 1,214 | | | | — | | | | — | | | | — | | | | — | | |
Redemptions | | | (28 | ) | | | (384 | ) | | | — | | | | — | | | | — | | | | — | | |
Net increase | | | 7,807 | | | | 111,622 | | | | — | | | | — | | | | — | | | | — | | |
Class Z shares | |
Subscriptions | | | 5,938,453 | | | | 84,416,359 | | | | 4,868,436 | | | | 68,006,637 | | | | 4,272,588 | | | | 55,792,716 | | |
Fund merger | | | 288,943 | | | | 4,134,412 | | | | — | | | | — | | | | — | | | | — | | |
Distributions reinvested | | | 674,135 | | | | 9,550,140 | | | | 414,083 | | | | 5,800,063 | | | | 632,731 | | | | 8,244,270 | | |
Redemptions | | | (12,821,393 | ) | | | (180,579,983 | ) | | | (3,945,590 | ) | | | (55,174,655 | ) | | | (11,959,938 | ) | | | (153,728,291 | ) | |
Net increase (decrease) | | | (5,919,862 | ) | | | (82,479,072 | ) | | | 1,336,929 | | | | 18,632,045 | | | | (7,054,619 | ) | | | (89,691,305 | ) | |
Total net increase (decrease) | | | (9,370,895 | ) | | | (126,009,233 | ) | | | (4,962,231 | ) | | | (68,386,578 | ) | | | 173,273,925 | | | | 2,281,307,620 | | |
(a) Class R4 shares are for the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) For the period from December 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from November 30 to July 31.
(c) Includes conversions of Class B shares to Class A shares, if any.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
48
The following tables are 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, and is not annualized for periods of less than one year.
| | | Year Ended July 31, | | Year Ended November 30, | |
Class A | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 14.27 | | | $ | 13.43 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | | $ | 13.52 | | |
Income from investment operations: | |
Net investment income | | | 0.57 | | | | 0.39 | | | | 0.58 | | | | 0.59 | | | | 0.60 | | | | 0.59 | | |
Net realized and unrealized gain (loss) | | | (0.89 | ) | | | 0.83 | | | | 0.31 | | | | 0.08 | | | | 1.09 | | | | (1.57 | ) | |
Total from investment operations | | | (0.32 | ) | | | 1.22 | | | | 0.89 | | | | 0.67 | | | | 1.69 | | | | (0.98 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.57 | ) | | | (0.38 | ) | | | (0.59 | ) | | | (0.59 | ) | | | (0.59 | ) | | | (0.59 | ) | |
Total distributions to shareholders | | | (0.57 | ) | | | (0.38 | ) | | | (0.59 | ) | | | (0.59 | ) | | | (0.59 | ) | | | (0.59 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (b) | | | — | | | | 0.00 | (b) | | | — | | | | — | | |
Net asset value, end of period | | $ | 13.38 | | | $ | 14.27 | | | $ | 13.43 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | |
Total return | | | (2.42 | %) | | | 9.18 | % | | | 7.00 | % | | | 5.12 | % | | | 14.42 | % | | | (7.48 | %) | |
Ratios to average net assets(c)(d) | |
Total gross expenses | | | 0.76 | %(e) | | | 0.76 | %(e)(f) | | | 0.76 | %(e) | | | 0.80 | %(e) | | | 0.80 | %(e) | | | 0.80 | %(g) | |
Total net expenses(h) | | | 0.76 | %(e)(i) | | | 0.76 | %(e)(f)(i) | | | 0.75 | %(e)(i) | | | 0.80 | %(e)(i) | | | 0.80 | %(e)(i) | | | 0.80 | %(g)(i) | |
Net investment income | | | 4.02 | % | | | 4.17 | %(f) | | | 4.41 | % | | | 4.43 | % | | | 4.73 | % | | | 4.56 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 3,546,639 | | | $ | 3,848,957 | | | $ | 3,708,744 | | | $ | 1,305,921 | | | $ | 1,362,545 | | | $ | 1,296,698 | | |
Portfolio turnover | | | 8 | % | | | 5 | % | | | 11 | % | | | 11 | % | | | 12 | % | | | 14 | % | |
Notes to Financial Highlights
(a) For the period from December 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from November 30 to July 31.
(b) Rounds to zero.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(d) Certain line items from prior years have been reclassified to conform to the current presentation.
(e) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs which rounds to less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(f) Annualized.
(g) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by 0.02% for the year ended November 30, 2008. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) 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.
Annual Report 2013
49
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended November 30, | |
Class B | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 14.26 | | | $ | 13.42 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | | $ | 13.52 | | |
Income from investment operations: | |
Net investment income | | | 0.46 | | | | 0.32 | | | | 0.48 | | | | 0.49 | | | | 0.50 | | | | 0.50 | | |
Net realized and unrealized gain (loss) | | | (0.89 | ) | | | 0.84 | | | | 0.30 | | | | 0.08 | | | | 1.10 | | | | (1.58 | ) | |
Total from investment operations | | | (0.43 | ) | | | 1.16 | | | | 0.78 | | | | 0.57 | | | | 1.60 | | | | (1.08 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.46 | ) | | | (0.32 | ) | | | (0.49 | ) | | | (0.49 | ) | | | (0.50 | ) | | | (0.49 | ) | |
Total distributions to shareholders | | | (0.46 | ) | | | (0.32 | ) | | | (0.49 | ) | | | (0.49 | ) | | | (0.50 | ) | | | (0.49 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (b) | | | — | | | | 0.00 | (b) | | | — | | | | — | | |
Net asset value, end of period | | $ | 13.37 | | | $ | 14.26 | | | $ | 13.42 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | |
Total return | | | (3.15 | %) | | | 8.68 | % | | | 6.12 | % | | | 4.34 | % | | | 13.57 | % | | | (8.17 | %) | |
Ratios to average net assets(c)(d) | |
Total gross expenses | | | 1.51 | %(e) | | | 1.51 | %(e)(f) | | | 1.51 | %(e) | | | 1.55 | %(e) | | | 1.55 | %(e) | | | 1.55 | %(g) | |
Total net expenses(h) | | | 1.51 | %(e)(i) | | | 1.51 | %(e)(f)(i) | | | 1.50 | %(e)(i) | | | 1.55 | %(e)(i) | | | 1.55 | %(e)(i) | | | 1.55 | %(g)(i) | |
Net investment income | | | 3.26 | % | | | 3.41 | %(f) | | | 3.65 | % | | | 3.69 | % | | | 4.00 | % | | | 3.81 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 5,836 | | | $ | 9,008 | | | $ | 12,630 | | | $ | 6,817 | | | $ | 12,775 | | | $ | 17,816 | | |
Portfolio turnover | | | 8 | % | | | 5 | % | | | 11 | % | | | 11 | % | | | 12 | % | | | 14 | % | |
Notes to Financial Highlights
(a) For the period from December 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from November 30 to July 31.
(b) Rounds to zero.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(d) Certain line items from prior years have been reclassified to conform to the current presentation.
(e) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs which rounds to less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(f) Annualized.
(g) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by 0.02% for the year ended November 30, 2008. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) 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.
Annual Report 2013
50
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended November 30, | |
Class C | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 14.26 | | | $ | 13.43 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | | $ | 13.52 | | |
Income from investment operations: | |
Net investment income | | | 0.49 | | | | 0.33 | | | | 0.50 | | | | 0.51 | | | | 0.52 | | | | 0.51 | | |
Net realized and unrealized gain (loss) | | | (0.89 | ) | | | 0.83 | | | | 0.31 | | | | 0.08 | | | | 1.09 | | | | (1.57 | ) | |
Total from investment operations | | | (0.40 | ) | | | 1.16 | | | | 0.81 | | | | 0.59 | | | | 1.61 | | | | (1.06 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.49 | ) | | | (0.33 | ) | | | (0.51 | ) | | | (0.51 | ) | | | (0.51 | ) | | | (0.51 | ) | |
Total distributions to shareholders | | | (0.49 | ) | | | (0.33 | ) | | | (0.51 | ) | | | (0.51 | ) | | | (0.51 | ) | | | (0.51 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (b) | | | — | | | | 0.00 | (b) | | | — | | | | — | | |
Net asset value, end of period | | $ | 13.37 | | | $ | 14.26 | | | $ | 13.43 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | |
Total return | | | (2.97 | %) | | | 8.70 | % | | | 6.36 | % | | | 4.49 | % | | | 13.74 | % | | | (8.05 | %) | |
Ratios to average net assets(c)(d) | |
Total gross expenses | | | 1.51 | %(e) | | | 1.51 | %(e)(f) | | | 1.52 | %(e) | | | 1.55 | %(e) | | | 1.55 | %(e) | | | 1.55 | %(g) | |
Total net expenses(h) | | | 1.31 | %(e)(i) | | | 1.36 | %(e)(f)(i) | | | 1.36 | %(e)(i) | | | 1.40 | %(e)(i) | | | 1.40 | %(e)(i) | | | 1.40 | %(g)(i) | |
Net investment income | | | 3.47 | % | | | 3.57 | %(f) | | | 3.82 | % | | | 3.83 | % | | | 4.11 | % | | | 3.95 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 105,414 | | | $ | 93,117 | | | $ | 81,742 | | | $ | 37,377 | | | $ | 34,079 | | | $ | 25,023 | | |
Portfolio turnover | | | 8 | % | | | 5 | % | | | 11 | % | | | 11 | % | | | 12 | % | | | 14 | % | |
Notes to Financial Highlights
(a) For the period from December 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from November 30 to July 31.
(b) Rounds to zero.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(d) Certain line items from prior years have been reclassified to conform to the current presentation.
(e) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs which rounds to less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(f) Annualized.
(g) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by 0.02% for the year ended November 30, 2008. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) 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.
Annual Report 2013
51
Financial Highlights (continued)
Class R4 | | Year Ended
July 31,
2013(a) | |
Per share data | |
Net asset value, beginning of period | | $ | 14.23 | | |
Income from investment operations: | |
Net investment income | | | 0.22 | | |
Net realized and unrealized loss | | | (0.86 | ) | |
Total from investment operations | | | (0.64 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.22 | ) | |
Total distributions to shareholders | | | (0.22 | ) | |
Net asset value, end of period | | $ | 13.37 | | |
Total return | | | (4.56 | %) | |
Ratios to average net assets(b) | |
Total gross expenses | | | 0.56 | %(c)(d) | |
Total net expenses(e) | | | 0.56 | %(c)(d)(f) | |
Net investment income | | | 4.39 | %(c) | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 104 | | |
Portfolio turnover | | | 8 | % | |
Notes to Financial Highlights
(a) For the period from March 19, 2013 (commencement of operations) to July 31, 2013.
(b) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(c) Annualized.
(d) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(e) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(f) 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.
Annual Report 2013
52
Financial Highlights (continued)
| | | Year Ended July 31, | | Year Ended November 30, | |
Class Z | | 2013 | | 2012(a) | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 14.27 | | | $ | 13.43 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | | $ | 13.52 | | |
Income from investment operations: | |
Net investment income | | | 0.60 | | | | 0.41 | | | | 0.61 | | | | 0.62 | | | | 0.62 | | | | 0.62 | | |
Net realized and unrealized gain (loss) | | | (0.90 | ) | | | 0.83 | | | | 0.30 | | | | 0.07 | | | | 1.10 | | | | (1.58 | ) | |
Total from investment operations | | | (0.30 | ) | | | 1.24 | | | | 0.91 | | | | 0.69 | | | | 1.72 | | | | (0.96 | ) | |
Less distributions to shareholders: | |
Net investment income | | | (0.59 | ) | | | (0.40 | ) | | | (0.61 | ) | | | (0.61 | ) | | | (0.62 | ) | | | (0.61 | ) | |
Total distributions to shareholders | | | (0.59 | ) | | | (0.40 | ) | | | (0.61 | ) | | | (0.61 | ) | | | (0.62 | ) | | | (0.61 | ) | |
Proceeds from regulatory settlements | | | — | | | | 0.00 | (b) | | | — | | | | 0.00 | (b) | | | — | | | | — | | |
Net asset value, end of period | | $ | 13.38 | | | $ | 14.27 | | | $ | 13.43 | | | $ | 13.13 | | | $ | 13.05 | | | $ | 11.95 | | |
Total return | | | (2.22 | %) | | | 9.32 | % | | | 7.16 | % | | | 5.33 | % | | | 14.64 | % | | | (7.30 | %) | |
Ratios to average net assets(c)(d) | |
Total gross expenses | | | 0.56 | %(e) | | | 0.56 | %(e)(f) | | | 0.59 | %(e) | | | 0.60 | %(e) | | | 0.60 | %(e) | | | 0.60 | %(g) | |
Total net expenses(h) | | | 0.56 | %(e)(i) | | | 0.56 | %(e)(f)(i) | | | 0.56 | %(e)(i) | | | 0.60 | %(e)(i) | | | 0.60 | %(e)(i) | | | 0.60 | %(g)(i) | |
Net investment income | | | 4.21 | % | | | 4.37 | %(f) | | | 4.68 | % | | | 4.63 | % | | | 4.93 | % | | | 4.76 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 652,839 | | | $ | 780,836 | | | $ | 716,844 | | | $ | 793,302 | | | $ | 833,847 | | | $ | 814,018 | | |
Portfolio turnover | | | 8 | % | | | 5 | % | | | 11 | % | | | 11 | % | | | 12 | % | | | 14 | % | |
Notes to Financial Highlights
(a) For the period from December 1, 2011 to July 31, 2012. During the period, the Fund's fiscal year end was changed from November 30 to July 31.
(b) Rounds to zero.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(d) Certain line items from prior years have been reclassified to conform to the current presentation.
(e) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs which rounds to less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(f) Annualized.
(g) Ratios include interest and fee expense related to the Fund's participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by 0.02% for the year ended November 30, 2008. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund's net assets, net asset value per share, total return or net investment income.
(h) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
(i) 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.
Annual Report 2013
53
Notes to Financial Statements
July 31, 2013
Note 1. Organization
Columbia Tax-Exempt Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund Shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers Class A, Class B, Class C, Class R4 and Class Z shares. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by law. Different share classes pay different distribution amounts to the extent the expenses of such share classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense structure and sales charges, as applicable.
Class A shares are subject to a maximum front-end sales charge of 4.75% based on the initial investment amount. Class A shares purchased without an initial sales charge in accounts aggregating $1 million to $50 million at the time of purchase are subject to a contingent deferred sales charge (CDSC) if the shares are sold within 18 months of purchase, charged as follows: 1.00% CDSC if redeemed within 12 months of purchase, and 0.50% CDSC if redeemed more than 12, but less than 18, months after purchase.
Class B shares may be subject to a maximum CDSC of 5.00% based upon the holding period after purchase. Class B shares will generally convert to Class A shares eight years after purchase. The Fund no longer accepts investments by new or existing investors in the Fund's Class B shares, except in connection with the reinvestment of any dividend and/or capital gain distributions in Class B shares of the Fund and exchanges by existing Class B shareholders of certain other funds within the Columbia Family of Funds.
Class C shares are subject to a 1.00% CDSC on shares redeemed within one year of purchase.
Class R4 shares are not subject to sales charges and are generally available only to omnibus retirement plans and certain other eligible investors. Class R4 shares commenced operations on March 19, 2013.
Class Z shares are not subject to sales charges and are available only to certain eligible investors, which are subject to different investment minimums.
Note 2. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently 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 (the Board) based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available may also be valued based upon an over-the-counter or exchange bid quotation.
Investments in open-end investment companies, including money market funds, are valued at net asset value.
Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days is determined based on an amortized value to par upon reaching 60 days to maturity. Short-term securities maturing in more than 60 days from the valuation date are valued at the market price or approximate market value based on current interest rates.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board. 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 last quoted market price for the security.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and
Annual Report 2013
54
Notes to Financial Statements (continued)
July 31, 2013
estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
Delayed Delivery Securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes 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.
Inverse Floater Program Transactions
The Fund may enter into transactions in which it transfers to trusts fixed rate municipal bonds in exchange for cash and residual interests in the trusts' assets and cash flows, which are in the form of inverse floating rate securities. The trusts fund the purchases of the municipal bonds by issuing short-term floating rate notes to third parties. The residual interests held by the Fund (inverse floating rate securities) include the right of the Fund (i) to cause the holders of the short-term floating rate notes to tender their notes at par, and (ii) to transfer the municipal bonds from the trusts to the Fund, thereby collapsing the trusts. The municipal bonds transferred to the trusts, if any, remain in the Fund's investments in securities and the related short-term floating rate notes are reflected as Fund liabilities under the caption "Short-term floating rate notes outstanding" in the Statement of Assets and Liabilities. The liability approximates the fair market value of the short-term notes. The notes issued by the trusts have interest rates that are multi-modal, which means that they can be reset to a new or different mode at the reset date (e.g., mode can be daily, weekly, monthly, or a fixed specific date) at the discretion of the holder of the inverse floating rate security. The floating rate note holders have the option to tender their notes to the trusts for redemption at par at each reset date. The income received by the inverse floating rate security holder varies inversely with the short-term rate paid to the floating rate note holders, and in most circumstances the inverse floating rate security holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The inverse floating rate security holder will be subject to greater interest rate risk than if they were to hold the underlying bond because the interest rate is dependent on both the fixed coupon rate of the underlying bond and the short-term interest rate paid on the floating rate notes. The inverse floating rate security holder is also subject to the credit risk, liquidity risk and market risk associated with the underlying bond. The bonds held by the trusts serve as collateral for the short-term floating rate notes outstanding.
Contractual maturities and interest rates of the municipal bonds held in trusts, if any, at July 31, 2013 are presented in the Portfolio of Investments. Interest and fee expense related to the short-term floating rate notes, which is accrued daily, is presented in the Statement of Operations and corresponds to an equal increase in interest income from the fixed rate municipal bonds held in trust. For the year ended July 31, 2013, the average value of short-term floating rate notes outstanding was $16,787,360 and the average interest rate and fees related to these short-term floating rate notes was 0.70%.
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.
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 tax exempt and taxable income (including net short-term capital gains), 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 net investment income, capital gains 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.
Annual Report 2013
55
Notes to Financial Statements (continued)
July 31, 2013
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.
Recent Accounting Pronouncement
Disclosures about Offsetting Assets and Liabilities
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities and in January 2013, ASU No. 2013-1, Clarifying the Scope of Disclosures about Offsetting Assets & Liabilities (collectively, the ASUs). Specifically, the ASUs require an entity to disclose both gross and net information for derivatives and other financial instruments that are subject to a master netting arrangement or similar agreement. The ASUs require disclosure of collateral received in connection with the master netting agreements or similar agreements. The disclosure requirements are effective for interim and annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Note 3. Fees and Compensation Paid to Affiliates
Investment Management Fees
Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), determines which securities will be purchased, held or sold. The investment management fee is an annual fee that is equal to a percentage of the Fund's average daily net assets that declines from 0.41% to 0.25% as the Fund's net assets increase. The effective investment management fee rate for the year ended July 31, 2013 was 0.37% of the Fund's average daily net assets.
Administration Fees
Under an Administrative Services Agreement, the Investment Manager also serves as the Fund Administrator. The Fund pays the Fund Administrator an annual fee for administration and accounting services equal to a percentage of the Fund's average daily net assets that declines from 0.07% to 0.04% as the Fund's net assets increase. The effective administration fee rate for the year ended July 31, 2013 was 0.06% of the Fund's average daily net assets.
Compensation of Board Members
Board members are compensated for their services to the Fund as disclosed in the Statement of Operations. The Trust's eligible Trustees may participate in a Deferred Compensation Plan (the Plan) which may be terminated at any time. Obligations of the Plan will be paid solely out of the Fund's assets.
Compensation of Chief Compliance Officer
The Board has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund pays its pro-rata share of the expenses associated with the Chief Compliance Officer. The Fund's expenses for the Chief Compliance Officer will not exceed $15,000 per year.
Transfer Agent 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 Boston Financial Data Services (BFDS) to serve as sub-transfer agent.
The Transfer Agent receives monthly account-based service fees based on the number of open accounts and also receives sub-transfer agency fees based on a percentage of the average aggregate value of the Fund's shares maintained in omnibus accounts (other than omnibus accounts for which American Enterprise Investment Services Inc. is the broker of record or accounts where the beneficial shareholder is a customer of Ameriprise Financial Services, Inc., which are paid a per account fee). The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Transfer Agent also receives compensation from fees for various shareholder services and reimbursements for certain out-of-pocket fees.
Annual Report 2013
56
Notes to Financial Statements (continued)
July 31, 2013
For the year ended July 31, 2013, the Fund's effective transfer agent fee rates as a percentage of average daily net assets of each class were as follows:
Class A | | | 0.11 | % | |
Class B | | | 0.11 | | |
Class C | | | 0.11 | | |
Class R4* | | | 0.11 | | |
Class Z | | | 0.11 | | |
*Annualized
The Fund and certain other associated investment companies, have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), the former transfer agent, including the payment of rent by SDC (the Guaranty). The lease and the Guaranty expire in January 2019. At July 31, 2013, the Fund's total potential future obligation over the life of the Guaranty is $638,826. The liability remaining at July 31, 2013 for non-recurring charges associated with the lease amounted to $326,401 and is recorded as a part of the payable for other expenses in the Statement of Assets and Liabilities.
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class' initial minimum investment requirements to reduce the impact of small accounts on transfer agent fees. These minimum account balance fees are recorded as part of expense reductions in the Statement of Operations. For the year ended July 31, 2013, these minimum account balance fees reduced total expenses by $7,259.
Distribution and Service Fees
The Fund has 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. Pursuant to Rule 12b-1 under the 1940 Act, the Board has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) 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.
The Plans require the payment of a monthly service fee to the Distributor at the maximum annual rate of 0.20% of the average daily net assets attributable to Class A, Class B and Class C shares of the Fund. The Plans also require the payment of a monthly distribution fee to the Distributor at the
maximum annual rates of 0.75% of the average daily net assets attributable to Class B and Class C shares only.
The Distributor has voluntarily agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be modified or terminated by the Distributor at any time. Prior to April 27, 2013, the distribution fee did not exceed 0.60%.
Sales Charges
Sales charges, including front-end charges and CDSCs, received by the Distributor for distributing Fund shares were $2,006,951 for Class A, $8,506 for Class B and $6,430 for Class C shares for the year ended July 31, 2013.
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 periods disclosed below, unless sooner terminated at the sole discretion of the Board, 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 rates as a percentage of the class' average daily net assets:
| | | December 1, 2012
through
November 30, 2013 | | Prior to
December 1, 2012 | |
Class A | | | 0.81 | % | | | 0.76 | % | |
Class B | | | 1.56 | | | | 1.51 | | |
Class C | | | 1.56 | | | | 1.51 | | |
Class R4 | | | 0.61 | * | | | — | | |
Class Z | | | 0.61 | | | | 0.56 | | |
*Annual rate is contractual from March 19, 2013 (the commencement of operations of Class R4 shares) through February 28, 2014.
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, extraordinary expenses and any other expenses the exclusion
Annual Report 2013
57
Notes to Financial Statements (continued)
July 31, 2013
of which is specifically approved by the Board. This agreement may be modified or amended only with approval from all parties. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
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 July 31, 2013, these differences are primarily due to differing treatment for: capital loss carryforwards, Trustees' deferred compensation, post-October capital losses, distributions, tax straddles, principal and/or interest of fixed income securities and investments in partnerships. To the extent these differences are permanent, reclassifications are made among the components of the Fund's net assets in the Statement of Assets and Liabilities. Temporary differences do not require reclassifications. In the Statement of Assets and Liabilities the following reclassifications were made:
Excess of distributions over net investment income | | $ | 558,299 | | |
Accumulated net realized [gain/loss] | | | (409,839 | ) | |
Paid-in capital | | | (148,460 | ) | |
Net investment income 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
July 31,
2013 | | Year Ended
July 31,
2012 | | Year Ended
November 30,
2011 | |
Ordinary income | | $ | 577,953 | | | $ | 333,845 | | | $ | 180,887 | | |
Tax-exempt income | | | 186,689,307 | | | | 127,174,438 | | | | 145,282,309 | | |
Total | | | 187,267,260 | | | | 127,508,283 | | | | 145,463,196 | | |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2013, the components of distributable earnings on a tax basis were as follows:
Undistributed tax-exempt income | | $ | 23,888,414 | | |
Unrealized appreciation | | | 254,634,564 | | |
At July 31, 2013, the cost of investments for federal income tax purposes was $4,030,018,761 and the aggregate gross
unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation | | $ | 336,375,298 | | |
Unrealized depreciation | | | (81,740,734 | ) | |
Net unrealized appreciation/depreciation | | $ | 254,634,564 | | |
The following capital loss carryforward, determined at July 31, 2013, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:
Year of Expiration | | Amount ($) | |
2015 | | | 8,298,230 | | |
2016 | | | 57,869,171 | | |
2017 | | | 1,455,576 | | |
2018 | | | 6,621,391 | | |
2019 | | | 14,381,427 | | |
Total | | | 88,625,795 | | |
For the year ended July 31, 2013, $13,350,383 of capital loss carryforward was utilized.
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 July 31, 2013, the Fund will elect to treat post-October capital losses of $1,774,248 as arising on August 1.
Management of the Fund has concluded that there are no significant uncertain tax positions 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 obligations, aggregated to $347,206,466 and $638,761,637, respectively, for the year ended July 31, 2013.
Transactions to realign the Fund's portfolio following the merger as described in Note 8 are excluded for purposes of calculating the Fund's portfolio turnover rate. These realignment transactions amounted to proceeds from sales of $12,806,801.
Annual Report 2013
58
Notes to Financial Statements (continued)
July 31, 2013
Note 6. Regulatory Settlements
During the year ended July 31, 2012, the Fund received $1,263 as a result of a regulatory settlement proceeding brought by the Securities and Exchange Commission against an unaffiliated third party relating to market timing and/or late trading of mutual funds. This amount represented the Fund's portion of the proceeds from the settlement (the Fund was not a party to the proceeding). The payments have been included in "Proceeds from regulatory settlements" in the Statement of Changes in Net Assets.
Note 7. Line of Credit
The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility agreement, as amended, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $500 million. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 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 amount of the credit facility at a rate of 0.08% per annum. The commitment fee is included in other expenses in the Statement of Operations.
The Fund had no borrowings during the year ended July 31, 2013.
Note 8. Fund Merger
At the close of business on April 26, 2013, the Fund acquired the assets and assumed the identified liabilities of Columbia Connecticut Tax Exempt Fund and Columbia Massachusetts Tax Exempt Fund, both series of Columbia Funds Series Trust I (the acquired funds). The reorganization was completed after shareholders of the acquired fund approved the plan on March 15, 2013. The purpose of the transaction was to combine three funds managed by the Investment Manager with comparable investment objectives and strategies.
The aggregate net assets of the Fund immediately before the acquisition were $4,602,092,798 and the combined net assets immediately after the acquisition were $4,809,877,766.
The merger was accomplished by a tax-free exchange of 10,574,200 shares of Columbia Connecticut Tax Exempt Fund valued at $85,625,779 (including $7,754,847 of unrealized
appreciation) and 15,326,301 shares of Columbia Massachusetts Tax Exempt Fund valued at $122,159,189 (including $11,901,974 of unrealized appreciation).
In exchange for the acquired funds' shares, the Fund issued the following number of shares:
| | | Shares | |
Class A | | | 12,568,916 | | |
Class B | | | 61,895 | | |
Class C | | | 1,601,358 | | |
Class Z | | | 288,943 | | |
For financial reporting purposes, net assets received and shares issued by the Fund were recorded at fair value; however, the acquired funds' cost of investments was carried forward.
The financial statements reflect the operations of the Fund for the period prior to the merger and the combined fund for the period subsequent to the merger. Because the combined investment portfolios have been managed as a single integrated portfolio since the merger was completed, it is not practicable to separate the amounts of revenue and earnings of the acquired funds that have been included in the combined Fund's Statement of Operations since the merger was completed.
Assuming the merger had been completed on Feb. 1, 2013 the Fund's pro-forma net investment income, net gain on investments, net change in unrealized depreciation and net decrease in net assets from operations for the year ended July 31, 2013 would have been approximately $157.8 million, $16.9 million, $(313.4) million and $(138.7) million, respectively.
Note 9. Significant Risks
Geographic Concentration Risk
Because state-specific tax-exempt funds invest primarily in the municipal securities issued by the state and political sub-divisions of the state, the Fund will be particularly affected by political and economic conditions and developments in the state in which it invests. The Fund may, therefore, have a greater risk than that of a municipal bond fund which is more geographically diversified. The value of the municipal securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
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.
Annual Report 2013
59
Notes to Financial Statements (continued)
July 31, 2013
Note 11. Information Regarding Pending and Settled Legal Proceedings
In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)) entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds' Boards of Trustees.
Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Funds are 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 Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission 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 Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, 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.
Annual Report 2013
60
Report of Independent Registered Public Accounting Firm
To the Trustees of Columbia Funds Series Trust I and the Shareholders of Columbia Tax-Exempt Fund
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Columbia Tax-Exempt Fund (the "Fund") (a series of Columbia Funds Series Trust I) at July 31, 2013, the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2013 by correspondence with the custodian, brokers and transfer agents, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 20, 2013
Annual Report 2013
61
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2013. Shareholders will be notified in early 2014 of amounts for use in preparing 2013 income tax returns
Tax Designations:
| Exempt-Interest Dividends | | | 99.69 | % | |
Exempt-Interest Dividends. The percentage of net investment income dividends paid during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes.
Annual Report 2013
62
The Trustees serve terms of indefinite duration. The names, addresses and birth years of the Trustees and Officers of the Funds in Columbia Funds Series Trust I, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of Funds overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in Columbia Funds Series Trust I.
Independent Trustees
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Rodman L. Drake (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) and
Chairman of the Board (since 2009) | | Independent consultant since 2010; Co-Founder of Baringo Capital LLC (private equity) from 1997 to 2008; Chairman (from 2003 to 2010) and CEO (from 2008 to 2010) of Crystal River Capital, Inc. (real estate investment trust); Oversees 52; Jackson Hewitt Tax Service Inc. (tax preparation services) from 2004 to 2011; Student Loan Corporation (student loan provider) from 2005 to 2010; Celgene Corporation (global biotechnology company); The Helios Funds and Brookfield Funds (closed-end funds); Chimerix, Inc. (biopharmaceutical company) since August 1, 2013; Crystal River Capital, Inc. from 2005 to 2010; Parsons Brinckerhoff from 1995 to 2008; and Apex Silver Mines Ltd. from 2007 to 2009 | |
Douglas A. Hacker (Born 1955)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Independent business executive since May 2006; Executive Vice President — Strategy of United Airlines from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 52; Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing); and SeaCube Container Leasing Ltd. (container leasing) | |
Janet Langford Kelly (Born 1957)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel — Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University from September 2004 to June 2006; Director, UAL Corporation (airline) from February 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer goods) from September 2003 to March 2004. Oversees 52; None | |
Nancy T. Lukitsh (Born 1956)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser) from 1997 to 2010; Chair, Wellington Management Investment Portfolios (commingled non-U.S. investment pools) from 2007 to 2010; Director, Wellington Trust Company, NA and other Wellington affiliates from 1997 to 2010. Oversees 52; None | |
William E. Mayer (Born 1940)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) | | Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business and Management, University of Maryland from 1992 to 1996. Oversees 52; DynaVox Inc. (speech creation); Lee Enterprises (print media); WR Hambrecht + Co. (financial service provider) from 2000 to 2012; BlackRock Kelso Capital Corporation (investment company) | |
David M. Moffett (Born 1952)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Retired. Chief Executive Officer, Federal Home Loan Mortgage Corporation, from 2008 to 2009; Senior Adviser, Global Financial Services Group, Carlyle Group, Inc., from 2007 to 2008; Vice Chairman and Chief Financial Officer, U.S. Bancorp, from 1993 to 2007. Oversees 52; CIT Group Inc. (commercial and consumer finance); eBay Inc. (online trading community); MBIA Inc. (financial service provider); E.W. Scripps Co. (print and television media), Building Materials Holding Corp. (building materials and construction services); Genworth Financial, Inc. (financial and insurance products and services); and University of Oklahoma Foundation. | |
Charles R. Nelson (Born 1942)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1981) | | Retired. Professor Emeritus, University of Washington, since 2011; Professor of Economics, University of Washington from January 1976 to 2011; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington from 1993 to 2011; Adjunct Professor of Statistics, University of Washington from 1980 to 2011; Associate Editor, Journal of Money, Credit and Banking from September 1993 to 2008; consultant on econometric and statistical matters. Oversees 52; None | |
John J. Neuhauser (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1984) | | President, Saint Michael's College, since August 2007; Director or Trustee of several non-profit organizations, including Fletcher Allen Health Care, Inc.; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October 2005. Oversees 52; Liberty All-Star Equity Fund and Liberty All-Star Growth Fund (closed-end funds) | |
Annual Report 2013
63
Trustees and Officers (continued)
Independent Trustees (continued)
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Patrick J. Simpson (Born 1944)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2000) | | Partner, Perkins Coie LLP (law firm). Oversees 52; None | |
Anne-Lee Verville (Born 1945)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1998) | | Retired. General Manager — Global Education Industry from 1994 to 1997, President — Application Systems Division from 1991 to 1994, Chief Financial Officer — US Marketing & Services from 1988 to 1991, and Chief Information Officer from 1987 to 1988, IBM Corporation (computer and technology). Oversees 52; Enesco Group, Inc. (producer of giftware and home and garden decor products) from 2001 to 2006 | |
Interested Trustee
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
William F. Truscott (born 1960)
53600 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President (since 2012) | | President and Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 and February 2012, respectively (previously President and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously, Chief Executive Officer, U.S. Asset Management & President, Annuities, from May 2010 to September 2012 and President — U.S. Asset Management and Chief Investment Officer from 2005 to April 2010); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively (previously Chairman of the Board and Chief Executive Officer from 2006 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006; President and Chief Executive Officer, Ameriprise Certificate Company, 2006 to August 2012; Oversees 184; Director, Ameriprise Certificate Company, 2006-January 2013 | |
The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800.345.6611.
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. In addition to Mr. Truscott, who is Senior Vice President, the Funds' other officers are:
Officers
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
J. Kevin Connaughton (Born 1964)
225 Franklin Street
Boston, MA 02110
President (since 2009) | | Senior Vice President and General Manager — Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds since 2009 and RiverSource Funds since May 2010; Managing Director, Columbia Management Advisors, LLC, December 2004-April 2010; Senior Vice President and Chief Financial Officer, Columbia Funds, June 2008-January 2009; Treasurer, Columbia Funds, October 2003-May 2008; and senior officer of various other affiliated funds since 2000 | |
Amy Johnson (Born 1965)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) | | Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009-April 2010, Vice President — Asset Management and Trust Company Services, from 2006-2009) | |
Michael G. Clarke (Born 1969)
225 Franklin Street
Boston, MA 02110
Treasurer (since 2011) and Chief
Financial Officer (since 2009) | | Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, September 2004-April 2010; senior officer of Columbia Funds and affiliated funds since 2002 | |
Annual Report 2013
64
Trustees and Officers (continued)
Officers (continued)
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
Scott R. Plummer (Born 1959)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President, Assistant
Secretary and Chief Legal Officer
(since 2010) | | Senior Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Senior Vice President and Lead Chief Counsel — Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel — Asset Management, 2005-April 2010); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; senior officer of Columbia Funds and affiliated funds since 2010 | |
Colin Moore (Born 1958)
225 Franklin Street
Boston, MA 02110
Senior Vice President (since 2010) | | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc. since July 2013; Director and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC, 2007-April 2010 | |
Thomas P. McGuire (Born 1972)
225 Franklin Street
Boston, MA 02110
Chief Compliance Officer
(since 2012) | | Vice President — Asset Management Compliance, Columbia Management Investment Advisers, LLC since 2010; Chief Compliance Officer, Ameriprise Certificate Company, since September 2010; Compliance Executive, Bank of America, N.A. 2005-2010 | |
Stephen T. Welsh (born 1957)
225 Franklin Street
Boston, MA 02110
Vice President (since 2006) | | President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc., July 2004-April 2010; Managing Director, Columbia Management Distributors, Inc., August 2007-April 2010 | |
Christopher O. Petersen (born 1970)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) and
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since January 2010 (formerly Vice President and Group Counsel or Counsel, April 2004-January 2010); Assistant Secretary of Columbia Funds, January 2007-April 2011 | |
Paul D. Pearson (born 1956)
10468 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President and Assistant
Treasurer (since 2011) | | Vice President, Investment Accounting, Columbia Management Investment Advisers, LLC, since May 2010; Vice President — Managed Assets, Investment Accounting, Ameriprise Financial, Inc., February 1998-May 2010 | |
Joseph F. DiMaria (Born 1968)
225 Franklin Street
Boston, MA 02110
Vice President (since 2011) and
Chief Accounting Officer (since 2008) | | Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, January 2006-April 2010 | |
Paul B. Goucher (born 1968)
100 Park Avenue
New York, NY 10017
Vice President and Assistant
Secretary (since 2010) | | Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since November 2008 and January 2013, respectively (formerly, Chief Counsel from January 2010-January 2013 and Group Counsel from November 2008-January 2010); Director, Managing Director and General Counsel, J. & W. Seligman & Co. Incorporated, July 2008-November 2008 (previously, Managing Director and Associate General Counsel, January 2005-July 2008) | |
Michael E. DeFao (born 1968)
225 Franklin Street
Boston, MA 02110
Vice President and Assistant
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Associate General Counsel, Bank of America, N.A. June 2005-April 2010 | |
Annual Report 2013
65
Board Consideration and Approval of
Advisory Agreement
On June 14, 2013, the Board of Trustees (the "Board") and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) of the Trust (the "Independent Trustees") unanimously approved the continuation of the Investment Management Services Agreement (the "Advisory Agreement") with Columbia Management Investment Advisers, LLC (the "Investment Manager") with respect to Columbia Tax-Exempt Fund (the "Fund"), a series of the Trust. As detailed below, the Advisory Fees and Expenses Committee (the "Committee") and the Board met on multiple occasions to review and discuss, both among themselves and with the management team of the Investment Manager, materials provided by the Investment Manager before determining to approve the continuation of the Advisory Agreement.
In connection with their deliberations regarding the continuation of the Advisory Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Advisory Agreement, and discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2013, April 24, 2013 and June 13, 2013, and at the Board meeting held on June 14, 2013. In addition, the Board considers matters bearing on the Advisory Agreement at most of its other meetings throughout the year and meets regularly with senior management of the Funds and the Investment Manager. Through the Board's Investment Oversight Committees, Trustees also meet with selected Fund portfolio managers and other investment personnel at various times throughout the year. The Committee and the Board also consulted with Fund counsel and with the Independent Trustees' independent legal counsel, who advised on various matters with respect to the Committee's and the Board's considerations and otherwise assisted the Committee and the Board in their deliberations. On June 13, 2013, the Committee recommended that the Board approve the continuation of the Advisory Agreement. On June 14, 2013, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement for the Fund.
The Committee and the Board considered all information that they, their legal counsel, or the Investment Manager believed reasonably necessary to evaluate and to determine whether to approve the continuation of the Advisory Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Advisory Agreement for the Fund included the following:
• Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks;
• Information on the Fund's advisory fees and total expenses, including information comparing the Fund's expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider;
• 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 extraordinary expenses) would not exceed the median expenses of a group of comparable funds (as determined from time to time, generally annually, by the independent third-party data provider);
• The terms and conditions of the Advisory Agreement;
• The terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including the Administrative Services Agreement, the Distribution Agreement and the Transfer and Dividend Disbursing Agent Agreement;
• Descriptions of various functions performed by the Investment Manager under the Advisory Agreement, including portfolio management and portfolio trading practices;
• Information regarding the management fees and investment performance of comparable portfolios of other clients of the Investment Manager, including institutional separate accounts;
• Information regarding the reputation, regulatory history and 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, including an assessment of the Investment Manager's compliance system by the Fund's Chief Compliance Officer; and
• The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
Annual Report 2013
66
Board Consideration and Approval of
Advisory Agreement (continued)
Nature, Extent and Quality of Services Provided under the Advisory Agreement
The Committee and the Board considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Advisory Agreement and under separate agreements for the provision of transfer agency and administrative services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment Manager's ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager's investment research capabilities and trade execution services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager's experience with similarly-structured funds. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager and its affiliates, and considered the Investment Manager's ability to provide administrative services to the Fund pursuant to a separate Administrative Services Agreement, including the Investment Manager's ability to coordinate the activities of the Fund's other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Advisory Agreement supported the continuation of the Advisory Agreement.
Investment Performance
The Committee and the Board reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks and information based on reports of the independent third-party data provider that compared the performance of the Fund to the performance of a group of comparable mutual funds. The Committee and the Board also reviewed a description of the third party's methodology for identifying the Fund's peer groups for purposes of performance and expense comparisons.
The Committee and the Board noted that, through December 31, 2012, the Fund's performance was in the 39th, 35th and 43rd percentile (where the best performance would be in the first percentile) of its category selected by the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five- year periods, respectively.
The Committee and the Board also considered the Investment Manager's performance and reputation generally, the Investment Manager's historical responsiveness to Board concerns about performance, and the Investment Manager's willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund supported the continuation of the Advisory Agreement.
Investment Advisory Fee Rates and Other Expenses
The Committee and the Board considered the advisory fees charged to the Fund under the Advisory Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Advisory Agreement, the Committee and the Board considered, among other information, the Fund's advisory fee and its total expense ratio as a percentage of average daily net assets. The Committee and the Board noted that the Fund's actual management fee and total / net expense ratio are both ranked in the 2nd quintiles, respectively, (where the lowest fees and expenses would be in the first quintile) against the Fund's expense universe as determined by the independent third-party data provider for purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also received and considered information about the advisory fees charged by the Investment Manager to institutional separate accounts. In considering the fees charged to those accounts, the Committee and the Board took into account, among other things, the Investment Manager's representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds
Annual Report 2013
67
Board Consideration and Approval of
Advisory Agreement (continued)
effectively. In evaluating the Fund's advisory fees, the Committee and the Board also took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the advisory fee rates and expenses of the Fund supported the continuation of the Advisory Agreement.
Costs of Services Provided and Profitability
The Committee and the Board also took note of the costs of the services provided (both on an absolute and relative basis) and the profitability to the Investment Manager and its affiliates in connection with their relationships with the Fund. In evaluating these considerations, the Committee and the Board took note of the advisory fees charged by the Investment Manager to other clients, including fees charged by the Investment Manager to institutional separate account clients with similar investment strategies to those of the Fund.
The Committee and the Board also considered the compensation directly or indirectly received by the Investment Manager's affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided by management as to the profitability of the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of profitability levels realized in 2012 to profitability levels realized in 2011. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the Fund, the expense ratio of the Fund, and the implementation of expense limitations with respect to the Fund. The Committee and the Board also considered information provided by the Investment Manager regarding its financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Advisory Agreement.
Economies of Scale
The Committee and the Board considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager's investment advisory clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment advisory fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading and compliance resources. The Committee and the Board noted that the investment advisory fee schedules for the Fund contained breakpoints that would reduce the fee rate on assets above specified threshold levels.
In considering these matters, the Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as discussed above. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the continuation of the Advisory Agreement.
Other Benefits to the Investment Manager
The Committee and the Board received and considered information regarding "fall-out" or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement of the Investment Manager to provide administrative services to the Fund and the engagement of the Investment Manager's affiliates to provide distribution and transfer agency services to the Fund. The Committee and the Board considered that the Fund's distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund's securities transactions, and reviewed information about the Investment Manager's practices with respect to allocating portfolio transactions for brokerage and research services. The Committee and the Board considered the possible conflicts of interest associated with certain fall-out or other ancillary benefits and the reporting, disclosure and other processes that are in place to address such possible conflicts of interest. The Committee and the Board recognized that the Investment Manager's profitability would be somewhat lower without these benefits.
Annual Report 2013
68
Board Consideration and Approval of
Advisory Agreement (continued)
Conclusion
The Committee and the Board reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Advisory Agreement. In their deliberations, the Trustees did not identify any particular information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement.
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Important Information About This Report
Each fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
The policy of the Board is to vote the proxies of the companies in which each 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 columbiamanagement.com; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how each fund voted proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30 of that year, and is available without charge by visiting columbiamanagement.com; or searching the website of the SEC at sec.gov.
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800.SEC.0330. Each fund's complete schedule of portfolio holdings, as filed on Form N-Q, can also be obtained without charge, upon request, by calling 800.345.6611.
Annual Report 2013
73
Columbia Tax-Exempt Fund
P.O. Box 8081
Boston, MA 02266-8081
columbiamanagement.com
This information is for use with concurrent or prior delivery of a fund prospectus. Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the Fund go to columbiamanagement.com. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
ANN233_07_C01_(09/13)
Annual Report
July 31, 2013
CMG Ultra Short Term Bond Fund
Not FDIC insured • No bank guarantee • May lose value
Dear Shareholders,
A return to volatility
Volatility returned to the financial markets in the second quarter of 2013, as uncertainty about the global economy, monetary policy and the impact of the sequester's spending cuts weighed on investors. Households advanced their spending but also allocated less to savings. Labor markets continued to crank out jobs at a steady pace, slowly reducing unemployment. Housing activity remained strong and retail sales were higher despite no real increase in income. The single weak spot was in the manufacturing sector, where activity slowed. While the consumer has weathered the domestic drag well, business has been closer to the global slowdown and effects of sequestration. Businesses remain very cautious, keeping inventories and staffs lean, and are planning for but not yet confident enough to make capital expenditures.
Against this backdrop, equities outperformed fixed income during the second quarter of 2013. Small-cap stocks outperformed large- and mid-cap stocks, and growth outperformed value except for in the large-cap sector. Outside the United States, foreign stock markets generally lost ground, with the most significant losses sustained by emerging markets.
Columbia Management to begin delivering summary prospectuses
Each Columbia fund is required to update its prospectus on an annual basis. Beginning with June 2013 prospectus updates, shareholders of Columbia retail mutual funds will start to receive a summary prospectus, rather than the full length (statutory) mutual fund prospectus they have received in the past.
Each fund's summary prospectus will include the following key information:
> Investment objective
> Fee and expense table
> Portfolio turnover rate information
> Principal investment strategies, principal risks and performance information
> Management information
> Purchase and sale information
> Tax information
> Financial intermediary compensation information
Each fund's statutory prospectus will contain additional information about the fund and its risks. Both the statutory and summary prospectus will be updated each year, and will be available at columbiamanagement.com. Shareholders may request a printed version of a statutory prospectus at no cost by calling 800.345.6611 or sending an email to serviceinquiries@columbiamanagement.com.
Stay on track with Columbia Management
Backed by more than 100 years of experience, Columbia Management is one of the nation's largest asset managers. At the heart of our success — and, most importantly, that of our investors — are highly talented industry professionals, brought together by a unique way of working. We are dedicated to helping you take advantage of today's opportunities and anticipate tomorrow's. We stay abreast of the latest investment trends and ideas, using our collective insight to evaluate events and transform them into solutions you can use.
Visit columbiamanagement.com for:
> The Columbia Management Perspectives blog, featuring timely posts by our investment teams
> Detailed up-to-date fund performance and portfolio information
> Economic analysis and market commentary
> Quarterly fund commentaries
> Columbia Management Investor, our award-winning quarterly newsletter for shareholders
Thank you for your continued support of the Columbia Funds. We look forward to serving your investment needs for many years to come.
Best Regards,
J. Kevin Connaughton
President, Columbia Funds
Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. For a free prospectus, which contains this and other important information about a fund, visit columbiamanagement.com. The prospectus should be read carefully before investing.
Columbia Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
CMG Ultra Short Term Bond Fund
Performance Overview | | | 2 | | |
Manager Discussion of Fund Performance | | | 4 | | |
Understanding Your Fund's Expenses | | | 6 | | |
Portfolio of Investments | | | 7 | | |
Statement of Assets and Liabilities | | | 19 | | |
Statement of Operations | | | 20 | | |
Statement of Changes in Net Assets | | | 21 | | |
Financial Highlights | | | 22 | | |
Notes to Financial Statements | | | 23 | | |
Report of Independent Registered
Public Accounting Firm | | | 29 | | |
Trustees and Officers | | | 30 | | |
Board Consideration and Approval of Advisory Agreement | | | 33 | | |
Important Information About This Report | | | 37 | | |
Fund Investment Manager
Columbia Management Investment
Advisers, LLC
225 Franklin Street
Boston, MA 02110
Fund Distributor
Columbia Management Investment
Distributors, Inc.
225 Franklin Street
Boston, MA 02110
Fund Transfer Agent
Columbia Management Investment
Services Corp.
P.O. Box 8081
Boston, MA 02266-8081
For more information about any of the funds, please visit columbiamanagement.com or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 8 p.m. Eastern time.
The views expressed in this report reflect the current views of the respective parties. 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.
CMG Ultra Short Term Bond Fund
Performance Summary
> CMG Ultra Short Term Bond Fund (the Fund) returned 0.55% for the 12-month period ended July 31, 2013.
> The Fund outperformed its benchmark, the Barclays U.S. Short-Term Government/Corporate Index, which returned 0.30% for the same 12-month period.
> The Fund's duration positioning, as well as its underweight in U.S. Treasury securities relative to the benchmark in the U.S. Treasury market, aided performance.
Average Annual Total Returns (%) (for period ended July 31, 2013)
| | | Inception | | 1 Year | | 5 Years | | Life | |
CMG Ultra Short Term Bond Fund | | 03/08/04 | | | 0.55 | | | | 1.44 | | | | 1.99 | | |
Barclays U.S. Short-Term Government/Corporate Index | | | | | | | 0.30 | | | | 0.92 | | | | 2.27 | * | |
*From August 9, 2004.
The Fund commenced operations on November 23, 2009. The returns shown for periods prior to November 23, 2009 are the returns of CMG Ultra Short Term Bond Fund, the predecessor to the Fund and a portfolio of Columbia Funds Institutional Trust. 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. All results shown assume reinvestment of distributions. The table does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of shares.
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 columbiamanagement.com or calling 800.345.6611.
The Barclays U.S. Short-Term Government/Corporate Index tracks the performance of U.S. Government and corporate bonds rated investment grade or better, with maturities of less than one year.
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.
Annual Report 2013
2
CMG Ultra Short Term Bond Fund
Performance Overview (continued)
Performance of a Hypothetical $3,000,000 Investment (March 8, 2004 – July 31, 2013)
The chart above shows the change in value of a hypothetical $3,000,000 investment in CMG Ultra Short Term 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. A $3,000,000 investment in the Fund since 03/08/04 was equal to $2,999,581 on 08/09/04, the inception date of the Barclays U.S. Short-Term Government/Corporate Index. For comparison with the Barclays U.S. Short-Term Government/Corporate Index, the chart shows the index at the same value as of 08/09/04.
Annual Report 2013
3
CMG Ultra Short Term Bond Fund
Manager Discussion of Fund Performance
For the 12-month period that ended July 31, 2013, CMG Ultra Short Term Bond Fund returned 0.55%. The Fund outperformed its benchmark, the Barclays U.S. Short-Term Government/Corporate Index, which returned 0.30% for the same 12-month period. The Fund's duration positioning, as well as its underweight in U.S. Treasuries relative to the index, aided performance. Duration is a measure of interest rate sensitivity.
Seeking Yield in a Low Rate Environment
During the period, the economy continued to recover, but only at a measured pace, requiring the Federal Reserve (the Fed) to maintain its open-ended purchases of mortgage and Treasury securities. Because short-term rates were anchored to a key borrowing rate, the federal funds rate, of zero to 0.25%, low interest rates continued throughout the period. The challenge for the Fund was to find ways to augment the prevailing low yields. In this pursuit, the Fund took several specific steps.
First, it increased its exposure to corporate, asset-backed, commercial mortgage-backed and agency securities. Treasury securities only constituted approximately 5% of the Fund, well below that of the benchmark. This was a good move, as all of the alternative sectors outperformed Treasury securities during the period. Second, we eliminated positions in commercial paper and reinvested those funds in agency floating-rate notes and corporate notes (both fixed and floating-rate). These sectors offered a yield advantage and outperformed commercial paper and Treasuries over the 12-month period. Finally, the Fund maintained a longer duration than the benchmark. Even though we shortened the Fund's average duration during the period, it was still longer than that of the benchmark and this positioning bolstered the Fund's current yield as well as its overall return for the period.
Managing Credit Risk
The Fund's underweight in Treasury securities was only part of a larger strategy regarding credit risk. The Fund also benefited from maintaining a much higher weight than the benchmark in investment-grade corporate securities and higher exposure to BBB-rated credits, which outperformed AA and A rated issues during the period. Finally, the Fund's increased exposure to the finance sector was also a plus, as financial issues tended to outperform the industrial and utility sectors.
One of the few detractors from Fund performance was an increased allocation to asset-backed securities (ABS). ABS underperformed relative to all other sectors, with the exception of Treasury and agency securities of similar maturities. Our decision to avoid all European bank and financial paper also detracted from performance. While we stayed clear of European exposure in an effort to reduce volatility in the Fund, we missed out on favorable returns from this sector during the past 12 months.
Looking Ahead
At the end of the period, the Fund remained underweight in U.S. Treasury securities relative to the benchmark, as we continue to believe that the corporate and securitized sectors may offer good relative returns versus comparable duration Treasuries. At present, corporate balance sheets are strong and the supply/demand characteristics of corporate securities remain favorable. We
Portfolio Management
Leonard Aplet, CFA
Mary Werler, CFA
Portfolio Breakdown (%)
(at July 31, 2013) | |
Asset-Backed Securities —
Non-Agency | | | 19.5 | | |
Commercial Mortgage-Backed
Securities — Agency | | | 0.3 | | |
Commercial Mortgage-Backed
Securities — Non-Agency | | | 11.9 | | |
Corporate Bonds & Notes | | | 50.7 | | |
Foreign Government
Obligations | | | 0.4 | | |
Inflation-Indexed Bonds | | | 0.9 | | |
Money Market Funds | | | 2.4 | | |
Municipal Bonds | | | 1.4 | | |
Residential Mortgage-Backed
Securities — Agency | | | 0.2 | | |
Residential Mortgage-Backed
Securities — Non-Agency | | | 0.3 | | |
U.S. Government & Agency
Obligations | | | 7.1 | | |
U.S. Treasury Obligations | | | 4.9 | | |
Total | | | 100.0 | | |
Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.
Annual Report 2013
4
CMG Ultra Short Term Bond Fund
Manager Discussion of Fund Performance (continued)
currently intend to continue to manage the portfolio conservatively, restricting the Fund's BBB-rated exposure to shorter maturities and avoiding European finance paper.
Federal Reserve (the Fed) chairman Ben Bernanke has drawn a sharp distinction between the Fed's stance toward bond repurchases (which are expected to decrease sometime later this year) and a key borrowing rate, the federal funds rate, which is expected to remain between zero and 0.25% for the foreseeable future. Because short-term interest rates are anchored to the federal funds rate, we expect them to remain at or near their current levels throughout the next year. As a result, we plan to continue to pursue securities slightly longer than the benchmark in order to take advantage of higher yields beyond the one-year range.
Quality Breakdown (%)
(at July 31, 2013) | |
AAA rating | | | 47.0 | | |
AA rating | | | 10.7 | | |
A rating | | | 26.2 | | |
BBB rating | | | 15.9 | | |
Not rated | | | 0.2 | | |
Total | | | 100.0 | | |
Percentages indicated are based upon total fixed income securities (excluding Money Market Funds).
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from AAA (highest) to D (lowest), and are subject to change. The ratings shown are determined by using the middle rating of Moody's, S&P, and Fitch after dropping the highest and lowest available ratings. When a rating from only two agencies is available, the lower rating is used. When a rating from only one agency is available, that rating is used. When a bond is not rated by one of these agencies, it is designated as Not rated. Credit ratings are subjective opinions and not statements of fact.
Annual Report 2013
5
CMG Ultra Short Term Bond Fund
Understanding Your Fund's Expenses
(Unaudited)
As an investor, you incur two types of costs. There are transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing costs, which generally include management fees, distribution and service (Rule 12b-1) 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 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the Actual column. The amount listed in the "Hypothetical" column assumes a 5% annual rate of return before expenses (which is not the Fund's actual return) and then applies the Fund's actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See "Compare With Other Funds" below for details on how to use the hypothetical data.
Compare With Other Funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
February 1, 2013 – July 31, 2013
| | | Account Value at the Beginning
of the Period ($) | | 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 | |
| | | | | | 1,000.00 | | | | 1,000.00 | | | | 1,001.10 | | | | 1,023.55 | | | | 1.24 | | | | 1.25 | | | | 0.25 | | |
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 the underlying funds in which the Fund may invest (also referred to as "acquired funds"), including affiliated and non-affiliated pooled investment vehicles (including 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.
Annual Report 2013
6
CMG Ultra Short Term Bond Fund
Portfolio of Investments
July 31, 2013
(Percentages represent value of investments compared to net assets)
Corporate Bonds & Notes 50.9%
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Automotive 3.4% | |
American Honda Finance Corp.
Senior Unsecured(a)(b)
06/18/14 | | | 0.673 | % | | | 10,000,000 | | | | 10,011,942 | | |
Daimler Finance North America LLC
11/15/13 | | | 6.500 | % | | | 5,700,000 | | | | 5,792,328 | | |
Daimler Finance North America LLC(a)(b)
01/09/15 | | | 0.870 | % | | | 8,000,000 | | | | 8,002,360 | | |
Ford Motor Credit Co. LLC
Senior Unsecured
01/15/15 | | | 3.875 | % | | | 5,000,000 | | | | 5,158,920 | | |
PACCAR Financial Corp.
Senior Unsecured
06/05/15 | | | 1.050 | % | | | 4,000,000 | | | | 4,023,340 | | |
Toyota Motor Credit Corp.
Senior Unsecured
07/17/15 | | | 0.875 | % | | | 10,000,000 | | | | 10,057,330 | | |
Toyota Motor Credit Corp.(a)
Senior Unsecured
01/23/15 | | | 0.435 | % | | | 5,000,000 | | | | 5,005,495 | | |
Volkswagen International Finance NV(a)(b)
11/20/14 | | | 0.874 | % | | | 10,000,000 | | | | 10,034,900 | | |
Volkswagen International Finance NV(b)
08/12/13 | | | 1.625 | % | | | 5,000,000 | | | | 5,001,702 | | |
Total | | | | | | | 63,088,317 | | |
Banking 12.9% | |
American Express Credit Corp.
Senior Unsecured
08/20/13 | | | 7.300 | % | | | 4,425,000 | | | | 4,440,730 | | |
American Express Credit Corp.(a)
Senior Unsecured
07/29/16 | | | 0.774 | % | | | 10,000,000 | | | | 10,005,780 | | |
Australia and New Zealand Banking Group Ltd.
Senior Unsecured(a)(b)
05/07/15 | | | 0.467 | % | | | 7,500,000 | | | | 7,489,405 | | |
Bank of America Corp.
Senior Unsecured
05/15/14 | | | 7.375 | % | | | 7,500,000 | | | | 7,876,125 | | |
Bank of Montreal
Senior Unsecured(a)
07/15/16 | | | 0.788 | % | | | 12,500,000 | | | | 12,518,312 | | |
Bank of New York Mellon Corp. (The)
Senior Unsecured(a)
10/23/15 | | | 0.495 | % | | | 15,000,000 | | | | 15,024,645 | | |
Bank of Nova Scotia
Senior Unsecured
10/09/15 | | | 0.750 | % | | | 5,000,000 | | | | 4,983,970 | | |
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Bank of Nova Scotia(a)
01/14/15 | | | 0.518 | % | | | 3,000,000 | | | | 3,000,201 | | |
Canadian Imperial Bank of Commerce
Senior Unsecured
09/13/13 | | | 1.450 | % | | | 11,000,000 | | | | 11,015,690 | | |
Canadian Imperial Bank of Commerce(a)
08/29/13 | | | 0.323 | % | | | 15,000,000 | | | | 14,999,750 | | |
Capital One Financial Corp.
Senior Unsecured
07/15/14 | | | 2.125 | % | | | 2,000,000 | | | | 2,025,268 | | |
Capital One Financial Corp.(a)
Senior Unsecured
07/15/14 | | | 1.418 | % | | | 10,000,000 | | | | 10,066,460 | | |
Citigroup, Inc.
Senior Unsecured
08/19/13 | | | 6.500 | % | | | 5,000,000 | | | | 5,013,699 | | |
12/13/13 | | | 6.000 | % | | | 7,500,000 | | | | 7,646,333 | | |
Citigroup, Inc.(a)
Senior Unsecured
04/01/14 | | | 1.204 | % | | | 142,000 | | | | 142,454 | | |
Commonwealth Bank of Australia
Senior Unsecured(b)
10/15/14 | | | 3.750 | % | | | 5,000,000 | | | | 5,190,260 | | |
Goldman Sachs Group, Inc. (The)
Senior Unsecured
10/15/13 | | | 5.250 | % | | | 6,500,000 | | | | 6,555,805 | | |
05/01/14 | | | 6.000 | % | | | 6,000,000 | | | | 6,235,614 | | |
JPMorgan Chase & Co.
Senior Unsecured
06/01/14 | | | 4.650 | % | | | 5,000,000 | | | | 5,167,370 | | |
JPMorgan Chase & Co.(a)
Senior Unsecured
04/23/15 | | | 0.715 | % | | | 10,000,000 | | | | 9,986,700 | | |
Morgan Stanley(a)
01/09/14 | | | 0.570 | % | | | 6,500,000 | | | | 6,492,733 | | |
Senior Unsecured
01/24/14 | | | 1.865 | % | | | 5,000,000 | | | | 5,025,620 | | |
National Australia Bank Ltd.
Senior Unsecured(a)(b)
04/11/14 | | | 0.989 | % | | | 5,000,000 | | | | 5,024,115 | | |
National Bank of Canada
Bank Guaranteed
06/26/15 | | | 1.500 | % | | | 5,000,000 | | | | 5,065,975 | | |
PNC Funding Corp.
Bank Guaranteed
02/08/15 | | | 3.625 | % | | | 10,000,000 | | | | 10,427,480 | | |
Royal Bank of Canada
Senior Unsecured(a)
01/06/15 | | | 0.501 | % | | | 14,800,000 | | | | 14,808,636 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
7
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Toronto-Dominion Bank (The)
Senior Unsecured
07/14/14 | | | 1.375 | % | | | 5,000,000 | | | | 5,051,405 | | |
Toronto-Dominion Bank (The)(a)
Senior Unsecured
07/14/14 | | | 0.568 | % | | | 2,000,000 | | | | 2,005,616 | | |
U.S. Bancorp
Senior Unsecured
09/13/13 | | | 1.375 | % | | | 7,505,000 | | | | 7,509,288 | | |
07/27/15 | | | 2.450 | % | | | 5,000,000 | | | | 5,168,417 | | |
Wachovia Corp.
Senior Unsecured
08/01/13 | | | 5.700 | % | | | 5,000,000 | | | | 5,000,678 | | |
Subordinated Notes
08/01/14 | | | 5.250 | % | | | 5,000,000 | | | | 5,215,220 | | |
Wells Fargo Bank NA
Senior Unsecured
07/20/15 | | | 0.750 | % | | | 10,000,000 | | | | 9,992,460 | | |
Total | | | | | | | 236,172,214 | | |
Construction Machinery 1.0% | |
Caterpillar Financial Services Corp.
Senior Unsecured
04/01/14 | | | 1.650 | % | | | 7,000,000 | | | | 7,058,653 | | |
05/29/15 | | | 1.100 | % | | | 3,000,000 | | | | 3,023,850 | | |
Caterpillar Financial Services Corp.(a)
Senior Unsecured
02/26/16 | | | 0.513 | % | | | 4,990,000 | | | | 4,990,080 | | |
John Deere Capital Corp.
Senior Unsecured(a)
04/25/14 | | | 0.416 | % | | | 4,135,000 | | | | 4,139,780 | | |
Total | | | | | | | 19,212,363 | | |
Electric 4.7% | |
Consolidated Natural Gas Co.
Senior Unsecured
03/01/14 | | | 5.000 | % | | | 10,775,000 | | | | 11,051,551 | | |
Duke Energy Corp.
Senior Unsecured
02/01/14 | | | 6.300 | % | | | 6,675,000 | | | | 6,857,041 | | |
Duke Energy Indiana, Inc.
1st Mortgage(a)
07/11/16 | | | 0.619 | % | | | 3,500,000 | | | | 3,497,998 | | |
Exelon Generation Co. LLC
Senior Unsecured
01/15/14 | | | 5.350 | % | | | 7,500,000 | | | | 7,655,235 | | |
Georgia Power Co.
Senior Unsecured
09/15/13 | | | 1.300 | % | | | 6,598,000 | | | | 6,603,757 | | |
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
NSTAR Electric Co.
Senior Unsecured(a)
05/17/16 | | | 0.514 | % | | | 6,975,000 | | | | 6,961,538 | | |
National Rural Utilities Cooperative Finance Corp.(a)
Senior Unsecured
08/09/13 | | | 0.375 | % | | | 7,000,000 | | | | 7,000,189 | | |
02/18/14 | | | 0.346 | % | | | 10,000,000 | | | | 9,999,460 | | |
Northeast Utilities
Senior Unsecured(a)
09/20/13 | | | 1.022 | % | | | 3,330,000 | | | | 3,332,846 | | |
Peco Energy Co.
1st Mortgage
10/15/13 | | | 5.600 | % | | | 5,360,000 | | | | 5,413,096 | | |
Pennsylvania Electric Co.
Senior Unsecured
04/01/14 | | | 5.125 | % | | | 7,000,000 | | | | 7,193,543 | | |
Southern California Edison Co.
1st Refunding Mortgage
01/15/14 | | | 5.000 | % | | | 10,520,000 | | | | 10,735,744 | | |
Total | | | | | | | 86,301,998 | | |
Food and Beverage 3.3% | |
Anheuser-Busch InBev Worldwide, Inc.
07/14/14 | | | 1.500 | % | | | 15,550,000 | | | | 15,704,878 | | |
Bacardi Ltd.(b)
04/01/14 | | | 7.450 | % | | | 5,000,000 | | | | 5,213,425 | | |
Campbell Soup Co.
Senior Unsecured(a)
08/01/14 | | | 0.565 | % | | | 9,000,000 | | | | 9,011,538 | | |
ConAgra Foods, Inc.
Senior Unsecured
01/25/16 | | | 1.300 | % | | | 2,000,000 | | | | 2,005,652 | | |
General Mills, Inc.
Senior Unsecured
05/16/14 | | | 1.550 | % | | | 1,375,000 | | | | 1,386,135 | | |
General Mills, Inc.(a)
Senior Unsecured
05/16/14 | | | 0.624 | % | | | 4,000,000 | | | | 4,007,308 | | |
01/29/16 | | | 0.564 | % | | | 2,625,000 | | | | 2,623,706 | | |
PepsiCo, Inc.
08/13/15 | | | 0.700 | % | | | 7,000,000 | | | | 7,002,961 | | |
PepsiCo, Inc.(a)
Senior Notes
02/26/16 | | | 0.483 | % | | | 3,275,000 | | | | 3,276,680 | | |
SABMiller Holdings, Inc.(b)
01/15/15 | | | 1.850 | % | | | 7,500,000 | | | | 7,606,462 | | |
SABMiller PLC
Senior Unsecured(b)
01/15/14 | | | 5.700 | % | | | 2,000,000 | | | | 2,044,860 | | |
Total | | | | | | | 59,883,605 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
8
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Gas Distributors 0.3% | |
Sempra Energy
Senior Unsecured(a)
03/15/14 | | | 1.033 | % | | | 5,000,000 | | | | 5,013,815 | | |
Gas Pipelines 1.0% | |
Enterprise Products Operating LLC
03/01/15 | | | 5.000 | % | | | 3,435,000 | | | | 3,656,087 | | |
Kinder Morgan Energy Partners LP
Senior Unsecured
12/15/13 | | | 5.000 | % | | | 4,000,000 | | | | 4,061,164 | | |
TransCanada PipeLines Ltd.
Senior Unsecured
03/02/15 | | | 0.875 | % | | | 3,650,000 | | | | 3,661,191 | | |
Williams Partners LP
Senior Unsecured
02/15/15 | | | 3.800 | % | | | 7,000,000 | | | | 7,295,449 | | |
Total | | | | | | | 18,673,891 | | |
Health Care 0.9% | |
Express Scripts Holding Co.
11/21/14 | | | 2.750 | % | | | 8,000,000 | | | | 8,191,144 | | |
McKesson Corp.
Senior Unsecured
12/04/15 | | | 0.950 | % | | | 8,250,000 | | | | 8,269,189 | | |
Total | | | | | | | 16,460,333 | | |
Healthcare Insurance 1.2% | |
UnitedHealth Group, Inc.
Senior Unsecured
08/15/14 | | | 5.000 | % | | | 7,500,000 | | | | 7,839,045 | | |
UnitedHealth Group, Inc.(a)
Senior Unsecured
08/28/14 | | | 0.398 | % | | | 5,000,000 | | | | 5,000,360 | | |
WellPoint, Inc.
Senior Unsecured
12/15/14 | | | 5.000 | % | | | 4,605,000 | | | | 4,862,452 | | |
09/10/15 | | | 1.250 | % | | | 5,000,000 | | | | 5,035,340 | | |
Total | | | | | | | 22,737,197 | | |
Independent Energy 0.6% | |
Canadian Natural Resources Ltd.
Senior Unsecured
11/14/14 | | | 1.450 | % | | | 5,000,000 | | | | 5,042,676 | | |
EnCana Holdings Finance Corp.
05/01/14 | | | 5.800 | % | | | 5,000,000 | | | | 5,182,980 | | |
Total | | | | | | | 10,225,656 | | |
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Integrated Energy 0.7% | |
BP Capital Markets PLC
12/05/14 | | | 1.700 | % | | | 7,500,000 | | | | 7,616,527 | | |
03/10/15 | | | 3.875 | % | | | 5,065,000 | | | | 5,325,863 | | |
Total | | | | | | | 12,942,390 | | |
Life Insurance 3.3% | |
Genworth Financial, Inc.
06/15/14 | | | 5.750 | % | | | 4,543,000 | | | | 4,728,868 | | |
Hartford Financial Services Group, Inc.
Senior Unsecured
03/30/15 | | | 4.000 | % | | | 4,000,000 | | | | 4,182,768 | | |
MetLife Institutional Funding II
Secured(a)(b)
04/04/14 | | | 1.174 | % | | | 5,000,000 | | | | 5,029,655 | | |
Metropolitan Life Global Funding I
Secured(a)(b)
07/15/16 | | | 0.798 | % | | | 7,500,000 | | | | 7,497,893 | | |
New York Life Global Funding(a)(b)
Secured
06/18/14 | | | 0.393 | % | | | 8,000,000 | | | | 8,004,991 | | |
07/30/14 | | | 0.265 | % | | | 10,000,000 | | | | 10,002,800 | | |
Principal Life Global Funding I
Senior Secured(b)
10/15/13 | | | 5.125 | % | | | 3,000,000 | | | | 3,027,348 | | |
Principal Life Global Funding II(a)(b)
Senior Secured
07/09/14 | | | 0.895 | % | | | 5,000,000 | | | | 5,017,587 | | |
09/19/14 | | | 0.433 | % | | | 5,000,000 | | | | 5,000,047 | | |
Prudential Financial, Inc.
Senior Unsecured
04/01/14 | | | 4.750 | % | | | 7,500,000 | | | | 7,697,152 | | |
Total | | | | | | | 60,189,109 | | |
Media Cable 1.9% | |
Comcast Corp.
01/15/14 | | | 5.300 | % | | | 10,000,000 | | | | 10,207,400 | | |
DIRECTV Holdings LLC/Financing Co., Inc.
10/01/14 | | | 4.750 | % | | | 5,000,000 | | | | 5,223,175 | | |
02/15/16 | | | 3.125 | % | | | 5,000,000 | | | | 5,195,015 | | |
NBCUniversal Enterprise, Inc.(a)(b)
04/15/16 | | | 0.805 | % | | | 5,625,000 | | | | 5,645,881 | | |
Time Warner Cable, Inc.
04/01/14 | | | 7.500 | % | | | 8,900,000 | | | | 9,281,774 | | |
Total | | | | | | | 35,553,245 | | |
Media Non-Cable 0.6% | |
Reed Elsevier Capital, Inc.
01/15/14 | | | 7.750 | % | | | 9,226,000 | | | | 9,506,498 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
9
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Thomson Reuters Corp.
Senior Unsecured
05/23/16 | | | 0.875 | % | | | 1,405,000 | | | | 1,396,473 | | |
Total | | | | | | | 10,902,971 | | |
Metals 0.7% | |
Rio Tinto Finance USA Ltd.
05/01/14 | | | 8.950 | % | | | 5,000,000 | | | | 5,297,140 | | |
Rio Tinto Finance USA PLC
03/20/15 | | | 1.125 | % | | | 7,500,000 | | | | 7,522,440 | | |
Total | | | | | | | 12,819,580 | | |
Non-Captive Diversified 1.0% | |
General Electric Capital Corp.
Senior Unsecured
01/08/16 | | | 1.000 | % | | | 10,000,000 | | | | 9,981,940 | | |
General Electric Capital Corp.(a)
Senior Unsecured
07/10/15 | | | 0.649 | % | | | 7,500,000 | | | | 7,504,416 | | |
Total | | | | | | | 17,486,356 | | |
Oil Field Services 0.4% | |
Halliburton Co.
Senior Unsecured(c)
08/01/16 | | | 1.000 | % | | | 7,500,000 | | | | 7,494,368 | | |
Pharmaceuticals 1.7% | |
AbbVie, Inc.(a)(b)
11/06/15 | | | 1.027 | % | | | 7,000,000 | | | | 7,064,183 | | |
GlaxoSmithKline Capital, Inc.
03/18/16 | | | 0.700 | % | | | 10,000,000 | | | | 9,931,450 | | |
Sanofi
Senior Unsecured
09/30/14 | | | 1.200 | % | | | 5,000,000 | | | | 5,048,910 | | |
Sanofi(a)
Senior Unsecured
03/28/14 | | | 0.586 | % | | | 5,000,000 | | | | 5,011,055 | | |
Teva Pharmaceutical Finance Co. BV(a)
11/08/13 | | | 1.175 | % | | | 5,000,000 | | | | 5,010,705 | | |
Total | | | | | | | 32,066,303 | | |
Property & Casualty 1.6% | |
Allstate Corp. (The)
Senior Unsecured
05/16/14 | | | 6.200 | % | | | 6,775,000 | | | | 7,071,088 | | |
Aspen Insurance Holdings Ltd.
Senior Unsecured
08/15/14 | | | 6.000 | % | | | 7,500,000 | | | | 7,854,030 | | |
Berkshire Hathaway Finance Corp.(a)
01/10/14 | | | 0.599 | % | | | 4,600,000 | | | | 4,606,573 | | |
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Berkshire Hathaway, Inc.
Senior Unsecured(a)
08/15/14 | | | 0.975 | % | | | 10,000,000 | | | | 10,062,580 | | |
Total | | | | | | | 29,594,271 | | |
REITs 1.7% | |
Boston Properties LP
04/15/15 | | | 5.625 | % | | | 7,100,000 | | | | 7,661,652 | | |
Kimco Realty Corp.
Senior Unsecured
06/01/14 | | | 4.820 | % | | | 12,125,000 | | | | 12,523,464 | | |
Simon Property Group LP
Senior Unsecured
06/15/15 | | | 5.100 | % | | | 10,000,000 | | | | 10,806,470 | | |
Total | | | | | | | 30,991,586 | | |
Retailers 0.6% | |
Target Corp.
Senior Unsecured
07/18/14 | | | 1.125 | % | | | 3,950,000 | | | | 3,976,149 | | |
Wal-Mart Stores, Inc.
Senior Unsecured
04/11/16 | | | 0.600 | % | | | 4,480,000 | | | | 4,470,687 | | |
Walgreen Co.
Senior Unsecured(a)
03/13/14 | | | 0.772 | % | | | 3,091,000 | | | | 3,095,736 | | |
Total | | | | | | | 11,542,572 | | |
Supranational 1.1% | |
Inter-American Development Bank
Senior Unsecured(a)
02/11/16 | | | 0.233 | % | | | 20,000,000 | | | | 20,014,460 | | |
Technology 2.2% | |
Apple, Inc.
Senior Unsecured
05/03/16 | | | 0.450 | % | | | 5,000,000 | | | | 4,959,920 | | |
Apple, Inc.(a)
Senior Unsecured
05/03/16 | | | 0.316 | % | | | 8,750,000 | | | | 8,750,000 | | |
Hewlett-Packard Co.
Senior Unsecured(a)
05/30/14 | | | 0.673 | % | | | 10,000,000 | | | | 9,979,530 | | |
International Business Machines Corp.
Senior Unsecured
05/06/16 | | | 0.450 | % | | | 5,000,000 | | | | 4,959,800 | | |
Xerox Corp.(a)
Senior Unsecured
09/13/13 | | | 1.672 | % | | | 7,950,000 | | | | 7,957,248 | | |
05/16/14 | | | 1.094 | % | | | 3,000,000 | | | | 2,999,994 | | |
Total | | | | | | | 39,606,492 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
10
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Corporate Bonds & Notes (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Transportation Services 0.7% | |
ERAC U.S.A. Finance LLC(b)
01/10/14 | | | 2.250 | % | | | 7,000,000 | | | | 7,044,457 | | |
05/01/15 | | | 5.600 | % | | | 5,000,000 | | | | 5,378,370 | | |
Total | | | | | | | 12,422,827 | | |
Wireless 0.1% | |
Rogers Communications, Inc.
03/15/14 | | | 5.500 | % | | | 2,500,000 | | | | 2,573,780 | | |
Wirelines 3.3% | |
AT&T, Inc.
Senior Unsecured
02/13/15 | | | 0.875 | % | | | 5,000,000 | | | | 5,013,305 | | |
AT&T, Inc.(a)
Senior Unsecured
02/12/16 | | | 0.660 | % | | | 10,625,000 | | | | 10,655,622 | | |
BellSouth Corp.
Senior Unsecured
09/15/14 | | | 5.200 | % | | | 4,700,000 | | | | 4,925,097 | | |
British Telecommunications PLC
Senior Unsecured(a)
12/20/13 | | | 1.397 | % | | | 10,000,000 | | | | 10,035,490 | | |
Deutsche Telekom International Finance BV
08/20/13 | | | 5.875 | % | | | 5,715,000 | | | | 5,730,464 | | |
Telecom Italia Capital SA
11/15/13 | | | 5.250 | % | | | 8,000,000 | | | | 8,080,856 | | |
Telefonica Emisiones SAU
01/15/15 | | | 4.949 | % | | | 5,000,000 | | | | 5,211,845 | | |
Verizon Communications, Inc.
Senior Unsecured
03/28/14 | | | 1.950 | % | | | 1,000,000 | | | | 1,009,668 | | |
11/02/15 | | | 0.700 | % | | | 6,500,000 | | | | 6,488,281 | | |
Verizon Communications, Inc.(a)
Senior Unsecured
03/28/14 | | | 0.886 | % | | | 4,000,000 | | | | 4,011,628 | | |
Total | | | | | | | 61,162,256 | | |
Total Corporate Bonds & Notes
(Cost: $933,620,164) | | | | | | | 935,131,955 | | |
Residential Mortgage-Backed Securities — Agency 0.2%
Federal Home Loan Mortgage Corp.(a)(d)
02/01/36 | | | 2.439 | % | | | 281,457 | | | | 298,860 | | |
Federal National Mortgage Association(a)(d)
03/01/34 | | | 3.005 | % | | | 156,080 | | | | 163,749 | | |
Residential Mortgage-Backed Securities — Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Federal National Mortgage Association(d)
CMO Series 2011-18 Class EM
06/25/37 | | | 4.000 | % | | | 2,745,371 | | | | 2,818,873 | | |
Total Residential Mortgage-Backed
Securities — Agency
(Cost: $3,273,420) | | | | | | | 3,281,482 | | |
Residential Mortgage-Backed Securities —
Non-Agency 0.3% | |
Credit Suisse Mortgage Capital Certificates
CMO Series 2010-1R Class 21A1(a)(b)(d)
01/27/36 | | | 2.600 | % | | | 649,463 | | | | 644,552 | | |
JPMorgan Resecuritization Trust
CMO Series 2010-1 Class 1A1(b)(d)
02/26/37 | | | 6.000 | % | | | 1,248,646 | | | | 1,281,365 | | |
RBSSP Resecuritization Trust
CMO Series 2012-2 Class 1A5(a)(b)(d)
05/26/47 | | | 0.320 | % | | | 2,623,703 | | | | 2,582,544 | | |
Total Residential Mortgage-Backed
Securities — Non-Agency
(Cost: $4,518,118) | | | | | | | 4,508,461 | | |
Commercial Mortgage-Backed Securities — Agency 0.2%
Government National Mortgage Association(d)
Series 2007-13 Class C
06/16/40 | | | 5.020 | % | | | 2,798,123 | | | | 2,833,937 | | |
Series 2010-132 Class AE
02/16/15 | | | 2.500 | % | | | 143,994 | | | | 144,130 | | |
Series 2010-141 Class A
08/16/31 | | | 1.864 | % | | | 1,495,384 | | | | 1,501,047 | | |
Total Commercial Mortgage-Backed
Securities — Agency
(Cost: $4,587,554) | | | | | | | 4,479,114 | | |
Commercial Mortgage-Backed Securities —
Non-Agency 11.9%
Banc of America Commercial Mortgage, Inc.
Series 2004-3 Class A5(a)(d)
06/10/39 | | | 5.556 | % | | | 16,604,152 | | | | 16,982,676 | | |
Banc of America Merrill Lynch Commercial Mortgage, Inc.
Series 2005-1 Class A5(a)(d)
11/10/42 | | | 5.213 | % | | | 5,853,000 | | | | 6,158,427 | | |
Bear Stearns Commercial Mortgage Securities(a)(d)
Series 2003-T12 Class A4
08/13/39 | | | 4.680 | % | | | 1,492,006 | | | | 1,494,168 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
11
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Commercial Mortgage-Backed Securities —
Non-Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Series 2004-T16 Class A6
02/13/46 | | | 4.750 | % | | | 14,319,404 | | | | 14,804,947 | | |
Series 2005-T18 Class A4
02/13/42 | | | 4.933 | % | | | 9,760,521 | | | | 10,219,646 | | |
Citigroup Commercial Mortgage Trust
Series 2005-C3 Class ASB(d)
05/15/43 | | | 4.755 | % | | | 1,627,375 | | | | 1,660,459 | | |
Commercial Mortgage Pass-Through Certificates
Series 2004-LB3A Class A5(a)(d)
07/10/37 | | | 5.354 | % | | | 15,295,000 | | | | 15,643,787 | | |
Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-C5 Class A4(d)
11/15/37 | | | 4.829 | % | | | 4,359,000 | | | | 4,535,182 | | |
DBRR Trust
Series 2012-EZ1 Class A(b)(d)
09/25/45 | | | 0.946 | % | | | 3,952,548 | | | | 3,959,208 | | |
GE Capital Commercial Mortgage Corp.
Series 2004-C2 Class A4(d)
03/10/40 | | | 4.893 | % | | | 9,811,000 | | | | 9,960,009 | | |
GS Mortgage Securities Corp. II
Series 2004-GG2 Class A6(a)(d)
08/10/38 | | | 5.396 | % | | | 6,850,000 | | | | 7,034,481 | | |
Greenwich Capital Commercial Funding Corp.(a)(d)
Series 2004-GG1 Class A7
06/10/36 | | | 5.317 | % | | | 8,643,067 | | | | 8,784,337 | | |
Series 2005-GG3 Class A4
08/10/42 | | | 4.799 | % | | | 13,205,000 | | | | 13,741,083 | | |
JPMorgan Chase Commercial Mortgage Securities Corp.
Commercial Mortgage Pass-Thru
Series 2004-C2 Class A3(a)(d)
05/15/41 | | | 5.212 | % | | | 5,735,000 | | | | 5,860,723 | | |
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2011-FL1 Class A(a)(b)(d)
11/15/28 | | | 2.091 | % | | | 10,455,372 | | | | 10,500,655 | | |
JPMorgan Chase Commercial Mortgage Securities Trust
Series 2003-CB6 Class A2(a)(d)
07/12/37 | | | 5.255 | % | | | 308,720 | | | | 308,536 | | |
LB-UBS Commercial Mortgage Trust(a)(d)
Series 2004-C6 Class A6
08/15/29 | | | 5.020 | % | | | 6,780,000 | | | | 6,926,455 | | |
Series 2005-C7 Class A4
11/15/30 | | | 5.197 | % | | | 7,935,000 | | | | 8,492,307 | | |
LB-UBS Commercial Mortgage Trust(d)
Series 2004-C1 Class A4
01/15/31 | | | 4.568 | % | | | 9,141,041 | | | | 9,317,791 | | |
Merrill Lynch Mortgage Trust(a)(d)
Series 2003-KEY1 Class A4
11/12/35 | | | 5.236 | % | | | 7,814,470 | | | | 7,826,958 | | |
Series 2004-BPC1 Class A5
10/12/41 | | | 4.855 | % | | | 11,172,751 | | | | 11,543,675 | | |
Commercial Mortgage-Backed Securities —
Non-Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Morgan Stanley Capital I Trust(d)
Series 2003-T11 Class A4
06/13/41 | | | 5.150 | % | | | 594,546 | | | | 594,110 | | |
Series 2004-T13 Class A4
09/13/45 | | | 4.660 | % | | | 8,555,749 | | | | 8,606,434 | | |
Wachovia Bank Commercial Mortgage Trust(a)(d)
Series 2004-C14 Class A4
08/15/41 | | | 5.088 | % | | | 7,500,000 | | | | 7,711,365 | | |
Series 2005-C17 Class A4
03/15/42 | | | 5.083 | % | | | 15,000,000 | | | | 15,769,200 | | |
Wachovia Bank Commercial Mortgage Trust(d)
Series 2004-C10 Class A4
02/15/41 | | | 4.748 | % | | | 9,651,137 | | | | 9,758,313 | | |
Total Commercial Mortgage-Backed
Securities — Non-Agency
(Cost: $224,110,423) | | | | | | | 218,194,932 | | |
Asset-Backed Securities — Non-Agency 19.6%
ARI Fleet Lease Trust
Series 2013-A Class A2(b)
12/15/15 | | | 0.700 | % | | | 7,000,000 | | | | 6,988,537 | | |
Ally Auto Receivables Trust
Series 2012-3 Class A2
01/15/15 | | | 0.700 | % | | | 4,126,225 | | | | 4,126,909 | | |
Series 2012-SN1 Class A2
12/22/14 | | | 0.510 | % | | | 5,169,410 | | | | 5,166,153 | | |
Series 2013-1 Class A2
10/15/15 | | | 0.460 | % | | | 9,000,000 | | | | 8,985,757 | | |
Ally Master Owner Trust
Series 2011-4 Class A2
09/15/16 | | | 1.540 | % | | | 5,110,000 | | | | 5,149,120 | | |
Ally Master Owner Trust(a)
Series 2011-1 Class A1
01/15/16 | | | 1.061 | % | | | 5,000,000 | | | | 5,011,909 | | |
Series 2013-1 Class A1
02/15/18 | | | 0.641 | % | | | 7,500,000 | | | | 7,452,385 | | |
AmeriCredit Automobile Receivables Trust
Series 2012-1 Class A2
10/08/15 | | | 0.910 | % | | | 592,467 | | | | 592,866 | | |
Series 2013-2 Class A2
11/08/16 | | | 0.530 | % | | | 10,200,000 | | | | 10,184,298 | | |
American Credit Acceptance Receivables Trust(b)
Series 2013-1 Class A
04/16/18 | | | 1.450 | % | | | 4,334,233 | | | | 4,329,240 | | |
American Credit Acceptance Receivables Trust(b)(c)
Series 2013-2 Class A
02/15/17 | | | 1.320 | % | | | 5,000,000 | | | | 4,999,851 | | |
BMW Vehicle Owner Trust
Series 2011-A Class A3
08/25/15 | | | 0.760 | % | | | 2,512,009 | | | | 2,514,891 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
12
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Asset-Backed Securities — Non-Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
CIT Education Loan Trust
Series 2005-1 Class A2(a)
03/15/22 | | | 0.363 | % | | | 753,060 | | | | 752,325 | | |
CNH Equipment Trust
Series 2011-B Class A3
08/15/16 | | | 0.910 | % | | | 1,839,308 | | | | 1,841,983 | | |
Series 2012-B Class A2
10/15/15 | | | 0.650 | % | | | 1,265,721 | | | | 1,265,773 | | |
Cabela's Master Credit Card Trust
Series 2010-1A Class A2(a)(b)
01/16/18 | | | 1.641 | % | | | 7,530,000 | | | | 7,651,670 | | |
Capital Auto Receivables Asset Trust
Series 2013-1 Class A1
03/20/15 | | | 0.470 | % | | | 8,300,000 | | | | 8,297,501 | | |
Chesapeake Funding LLC(a)(b)
Series 2009-2A Class A
09/15/21 | | | 1.941 | % | | | 899,419 | | | | 901,336 | | |
Series 2012-1A Class A
11/07/23 | | | 0.945 | % | | | 4,698,877 | | | | 4,719,707 | | |
Enterprise Fleet Financing LLC(b)
Series 2011-2 Class A2
10/20/16 | | | 1.430 | % | | | 1,776,364 | | | | 1,779,187 | | |
Series 2012-2 Class A2
04/20/18 | | | 0.720 | % | | | 2,488,186 | | | | 2,488,651 | | |
Ford Credit Auto Lease Trust
Series 2011-A Class A3
07/15/14 | | | 1.030 | % | | | 2,580,355 | | | | 2,581,076 | | |
Series 2013-A Class A2
05/15/15 | | | 0.460 | % | | | 8,700,000 | | | | 8,688,419 | | |
Ford Credit Auto Owner Trust
Series 2012-C Class A2
04/15/15 | | | 0.470 | % | | | 1,797,133 | | | | 1,797,080 | | |
Series 2012-D Class A2
09/15/15 | | | 0.400 | % | | | 4,357,257 | | | | 4,359,261 | | |
Ford Credit Floorplan Master Owner Trust
Series 2010-5 Class A1
09/15/15 | | | 1.500 | % | | | 8,175,000 | | | | 8,184,533 | | |
Ford Credit Floorplan Master Owner Trust(a)
Series 2012-4 Class A2
09/15/16 | | | 0.541 | % | | | 8,500,000 | | | | 8,492,455 | | |
GE Capital Credit Card Master Note Trust
Series 2012-4 Class A(a)
06/15/18 | | | 0.491 | % | | | 5,000,000 | | | | 4,995,840 | | |
GE Equipment Midticket LLC
Series 2012-1 Class A2
01/22/15 | | | 0.470 | % | | | 4,422,942 | | | | 4,419,827 | | |
GE Equipment Small Ticket LLC(b)
Series 2012-1A Class A2
11/21/14 | | | 0.850 | % | | | 4,205,013 | | | | 4,207,065 | | |
Series 2013-1A Class A2
01/25/16 | | | 0.730 | % | | | 5,000,000 | | | | 4,995,312 | | |
Asset-Backed Securities — Non-Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
GE Equipment Transportation LLC
Series 2013-1 Class A2
11/24/15 | | | 0.500 | % | | | 5,450,000 | | | | 5,439,709 | | |
Great America Leasing Receivables
Series 2013-1 Class A2(b)
05/15/15 | | | 0.610 | % | | | 7,500,000 | | | | 7,504,622 | | |
Harley-Davidson Motorcycle Trust
Series 2012-1 Class A2
08/15/15 | | | 0.500 | % | | | 1,665,307 | | | | 1,665,067 | | |
Honda Auto Receivables Owner Trust
Series 2012-4 Class A2
04/20/15 | | | 0.400 | % | | | 11,603,916 | | | | 11,609,999 | | |
Series 2013-3 Class A3
01/15/16 | | | 0.540 | % | | | 12,000,000 | | | | 12,000,000 | | |
Hyundai Auto Lease Securitization Trust(b)
Series 2012-A Class A2
01/15/15 | | | 0.680 | % | | | 2,070,744 | | | | 2,070,966 | | |
Series 2013-A Class A2
09/15/15 | | | 0.510 | % | | | 12,000,000 | | | | 11,983,553 | | |
Hyundai Auto Receivables Trust
Series 2012-B Class A2
01/15/15 | | | 0.540 | % | | | 2,934,687 | | | | 2,935,046 | | |
Series 2013-B Class A2
03/15/16 | | | 0.530 | % | | | 15,000,000 | | | | 14,997,439 | | |
John Deere Owner Trust
Series 2012-B Class A2
02/17/15 | | | 0.430 | % | | | 4,862,675 | | | | 4,860,313 | | |
Series 2013-A Class A2
09/15/15 | | | 0.410 | % | | | 5,500,000 | | | | 5,490,823 | | |
Louisiana Public Facilities Authority
Series 2011-A Class A1(a)
04/26/21 | | | 0.766 | % | | | 92,253 | | | | 92,260 | | |
Mercedes-Benz Auto Lease Trust
Series 2012-A Class A3
11/17/14 | | | 0.880 | % | | | 10,000,000 | | | | 10,007,854 | | |
Mercedes-Benz Master Owner Trust
Series 2012-BA Class A(a)(b)
11/15/16 | | | 0.461 | % | | | 6,015,000 | | | | 6,002,593 | | |
Nations Equipment Finance Funding I LLC
Series 2013-1A Class A(b)
11/20/16 | | | 1.697 | % | | | 6,199,946 | | | | 6,199,946 | | |
Nissan Auto Receivables Owner Trust
Series 2012-B Class A2
04/15/15 | | | 0.390 | % | | | 4,185,213 | | | | 4,188,014 | | |
Panhandle-Plains Higher Education Authority, Inc.
Series 2011-1 Class A1(a)
10/01/18 | | | 0.774 | % | | | 324,067 | | | | 324,227 | | |
Porsche Innovative Lease Owner Trust
Series 2012-1 Class A2(b)
02/23/15 | | | 0.440 | % | | | 2,534,072 | | | | 2,532,574 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
13
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Asset-Backed Securities — Non-Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Prestige Auto Receivables Trust
Series 2013-1A Class A2(b)
02/15/18 | | | 1.090 | % | | | 5,000,000 | | | | 4,997,164 | | |
SLM Private Education Loan Trust
Series 2013-A Class A1(a)(b)
08/15/22 | | | 0.791 | % | | | 4,075,298 | | | | 4,049,014 | | |
SLM Student Loan Trust(a)
Series 2012-6 Class A1
02/27/17 | | | 0.350 | % | | | 2,668,350 | | | | 2,664,274 | | |
Series 2012-7 Class A1
02/27/17 | | | 0.350 | % | | | 6,039,647 | | | | 6,032,125 | | |
Series 2013-1 Class A1
02/27/17 | | | 0.340 | % | | | 7,473,774 | | | | 7,456,904 | | |
SLM Student Loan Trust(a)(b)
Series 2011-A Class A1
10/15/24 | | | 1.191 | % | | | 1,506,386 | | | | 1,508,826 | | |
Series 2011-B Class A1
12/16/24 | | | 1.041 | % | | | 3,186,436 | | | | 3,184,676 | | |
Series 2012-B Class A1
12/15/21 | | | 1.291 | % | | | 1,255,701 | | | | 1,259,004 | | |
SMART Trust
Series 2012-4US Class A2A
06/14/15 | | | 0.670 | % | | | 10,273,266 | | | | 10,266,151 | | |
Series 2013-1US Class A2A
05/14/15 | | | 0.580 | % | | | 9,000,000 | | | | 8,987,500 | | |
SMART Trust(a)
Series 2012-4US Class A3B
03/14/17 | | | 0.741 | % | | | 4,000,000 | | | | 3,992,055 | | |
SMART Trust(b)
Series 2012-1USA Class A2A
09/14/14 | | | 1.040 | % | | | 1,436,456 | | | | 1,437,096 | | |
Santander Drive Auto Receivables Trust
Series 2012-1 Class A2
04/15/15 | | | 1.250 | % | | | 678,700 | | | | 679,321 | | |
Series 2012-2 Class A2
05/15/15 | | | 0.910 | % | | | 1,300,119 | | | | 1,300,817 | | |
Series 2012-3 Class A2
04/15/15 | | | 0.830 | % | | | 1,304,003 | | | | 1,304,351 | | |
Series 2013-2 Class A2
03/15/16 | | | 0.470 | % | | | 6,250,000 | | | | 6,243,698 | | |
Series 2013-4 Class A2
09/15/16 | | | 0.890 | % | | | 5,000,000 | | | | 4,999,249 | | |
Silverleaf Finance VII LLC
Series 2010-A Class A(b)
07/15/22 | | | 5.360 | % | | | 886,746 | | | | 892,283 | | |
Utah State Board of Regents
Series 2011-1 Class A1(a)
05/01/23 | | | 0.765 | % | | | 2,787,019 | | | | 2,787,437 | | |
Volkswagen Auto Lease Trust
Series 2012-A Class A2
11/20/14 | | | 0.660 | % | | | 2,964,468 | | | | 2,965,641 | | |
Series 2013-A Class A2A
12/21/15 | | | 0.630 | % | | | 7,000,000 | | | | 7,000,000 | | |
Asset-Backed Securities — Non-Agency (continued)
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Volvo Financial Equipment LLC
Series 2013-1A Class A2(b)
11/16/15 | | | 0.530 | % | | | 10,000,000 | | | | 9,971,961 | | |
World Omni Master Owner Trust
Series 2013-1 Class A(a)(b)
02/15/18 | | | 0.541 | % | | | 8,070,000 | | | | 8,072,030 | | |
Total Asset-Backed Securities — Non-Agency
(Cost: $360,121,423) | | | | | | | 359,877,499 | | |
Inflation-Indexed Bonds 0.9%
United States 0.9% | |
U.S. Treasury Inflation-Indexed Bond
04/15/14 | | | 1.250 | % | | | 15,657,457 | | | | 15,876,411 | | |
Total Inflation-Indexed Bonds
(Cost: $15,908,287) | | | | | | | 15,876,411 | | |
U.S. Treasury Obligations 4.9%
U.S. Treasury
01/31/14 | | | 0.250 | % | | | 4,000,000 | | | | 4,003,280 | | |
02/28/14 | | | 0.250 | % | | | 30,000,000 | | | | 30,026,940 | | |
10/31/14 | | | 0.250 | % | | | 10,000,000 | | | | 10,008,590 | | |
01/31/15 | | | 0.250 | % | | | 15,000,000 | | | | 15,008,790 | | |
03/15/15 | | | 0.375 | % | | | 12,000,000 | | | | 12,024,372 | | |
05/31/15 | | | 0.250 | % | | | 10,000,000 | | | | 9,995,312 | | |
10/15/15 | | | 0.250 | % | | | 4,500,000 | | | | 4,487,697 | | |
06/15/16 | | | 0.500 | % | | | 5,000,000 | | | | 4,990,157 | | |
Total U.S. Treasury Obligations
(Cost: $90,314,281) | | | | | | | 90,545,138 | | |
U.S. Government & Agency Obligations 7.2%
Federal Farm Credit Banks(a)
07/16/14 | | | 0.200 | % | | | 6,000,000 | | | | 6,005,196 | | |
03/24/15 | | | 0.230 | % | | | 15,000,000 | | | | 15,015,105 | | |
10/26/15 | | | 0.219 | % | | | 20,000,000 | | | | 20,013,820 | | |
10/26/15 | | | 0.239 | % | | | 35,000,000 | | | | 35,039,725 | | |
02/24/16 | | | 0.241 | % | | | 35,000,000 | | | | 35,033,635 | | |
Federal National Mortgage Association
10/26/15 | | | 1.625 | % | | | 10,000,000 | | | | 10,253,150 | | |
Federal National Mortgage Association(a)
01/20/15 | | | 0.202 | % | | | 10,000,000 | | | | 10,007,750 | | |
Total U.S. Government & Agency Obligations
(Cost: $131,260,258) | | | | | | | 131,368,381 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
14
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Foreign Government Obligations 0.4%
Issuer | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Canada 0.4% | |
Province of Ontario
Senior Unsecured
01/27/14 | | | 1.375 | % | | | 8,000,000 | | | | 8,041,832 | | |
Total Foreign Government Obligations
(Cost: $8,042,970) | | | | | | | 8,041,832 | | |
Municipal Bonds 1.4%
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
California 0.2% | |
University of California
Revenue Bonds
Taxable
Series 2011Y-1(a)
07/01/41 | | | 0.767 | % | | | 5,000,000 | | | | 5,002,450 | | |
Florida 0.3% | |
Citizens Property Insurance Corp.
Revenue Bonds
Personal & Commercial Lines
Series 2012(a)
06/01/15 | | | 1.300 | % | | | 5,000,000 | | | | 5,062,100 | | |
Illinois 0.5% | |
State of Illinois
Taxable Unlimited General Obligation Bonds
Series 2010
01/01/14 | | | 4.071 | % | | | 10,000,000 | | | | 10,129,000 | | |
Municipal Bonds (continued)
Issue
Description | | Coupon
Rate | | Principal
Amount ($) | | Value ($) | |
Louisiana 0.1% | |
City of Baton Rouge/Parish of East Baton Rouge
Refunding Revenue Bonds
Taxable
Series 2012
01/15/15 | | | 1.239 | % | | | 1,000,000 | | | | 1,001,050 | | |
New Jersey 0.3% | |
State of New Jersey
Certificate of Participation
Equipment Lease Purchase
Series 2004A
06/15/14 | | | 5.000 | % | | | 5,000,000 | | | | 5,195,400 | | |
Total Municipal Bonds
(Cost: $26,293,938) | | | | | | | 26,390,000 | | |
Money Market Funds 2.4%
| | | | | Shares | | Value ($) | |
Columbia Short-Term Cash Fund,
0.191%(e)(f) | | | | | 44,972,196 | | | | 44,972,196 | | |
Total Money Market Funds
(Cost: $44,972,196) | | | | | | | 44,972,196 | | |
Total Investments
(Cost: $1,847,023,032) | | | | | | | 1,842,667,401 | | |
Other Assets & Liabilities, Net | | | | | | | (6,211,639 | ) | |
Net Assets | | | | | | | | | | | 1,836,455,762 | | |
Notes to Portfolio of Investments
(a) Variable rate security.
(b) Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2013, the value of these securities amounted to $268,027,831 or 14.59% of net assets.
(c) Represents a security purchased on a when-issued or delayed delivery basis.
(d) The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. Unless otherwise noted, the coupon rates presented are fixed rates.
(e) The rate shown is the seven-day current annualized yield at July 31, 2013.
(f) As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of its outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the year ended July 31, 2013, are as follows:
Issuer | | Beginning
Cost ($) | | Purchase
Cost ($) | | Proceeds
from Sales ($) | | Ending
Cost ($) | | Dividends —
Affiliated
Issuers ($) | | Value ($) | |
Columbia Short-Term Cash Fund | | | 27,934 | | | | 1,313,170,099 | | | | (1,268,225,837 | ) | | | 44,972,196 | | | | 123,057 | | | | 44,972,196 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
15
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Abbreviation Legend
CMO Collateralized Mortgage Obligation
Fair Value Measurements
Generally accepted accounting principles (GAAP) require 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.
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 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 (including NAV for open-end mutual funds). 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 carrying out the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
16
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
The following table is a summary of the inputs used to value the Fund's investments at July 31, 2013:
Description | | Level 1
Quoted Prices in Active
Markets for Identical
Assets ($) | | Level 2
Other Significant
Observable Inputs ($) | | Level 3
Significant
Unobservable Inputs ($) | | Total ($) | |
Bonds | |
Corporate Bonds & Notes | | | — | | | | 935,131,955 | | | | — | | | | 935,131,955 | | |
Residential Mortgage-Backed
Securities — Agency | | | — | | | | 3,281,482 | | | | — | | | | 3,281,482 | | |
Residential Mortgage-Backed
Securities — Non-Agency | | | — | | | | 4,508,461 | | | | — | | | | 4,508,461 | | |
Commercial Mortgage-Backed
Securities — Agency | | | — | | | | 4,479,114 | | | | — | | | | 4,479,114 | | |
Commercial Mortgage-Backed
Securities — Non-Agency | | | — | | | | 214,235,724 | | | | 3,959,208 | | | | 218,194,932 | | |
Asset-Backed Securities — Non-Agency | | | — | | | | 353,677,553 | | | | 6,199,946 | | | | 359,877,499 | | |
Inflation-Indexed Bonds | | | — | | | | 15,876,411 | | | | — | | | | 15,876,411 | | |
U.S. Treasury Obligations | | | 90,545,138 | | | | — | | | | — | | | | 90,545,138 | | |
U.S. Government & Agency Obligations | | | — | | | | 131,368,381 | | | | — | | | | 131,368,381 | | |
Foreign Government Obligations | | | — | | | | 8,041,832 | | | | — | | | | 8,041,832 | | |
Municipal Bonds | | | — | | | | 26,390,000 | | | | — | | | | 26,390,000 | | |
Total Bonds | | | 90,545,138 | | | | 1,696,990,913 | | | | 10,159,154 | | | | 1,797,695,205 | | |
Mutual Funds | |
Money Market Funds | | | 44,972,196 | | | | — | | | | — | | | | 44,972,196 | | |
Total Mutual Funds | | | 44,972,196 | | | | — | | | | — | | | | 44,972,196 | | |
Total | | | 135,517,334 | | | | 1,696,990,913 | | | | 10,159,154 | | | | 1,842,667,401 | | |
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.
There were no transfers of financial assets between Levels 1 and 2 during the period.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
17
CMG Ultra Short Term Bond Fund
Portfolio of Investments (continued)
July 31, 2013
Fair Value Measurements (continued)
The following table is a reconciliation of Level 3 assets for which significant observable and/or unobservable inputs were used to determine fair value.
| | | Residential
Mortgage-Backed
Securities —
Non-Agency ($) | | Commercial
Mortgage-Backed
Securities —
Non-Agency ($) | | Asset-Backed
Securities —
Non-Agency ($) | | Total ($) | |
Balance as of July 31, 2012 | | | 5,312,251 | | | | — | | | | 7,104,183 | | | | 12,416,434 | | |
Accrued discounts/premiums | | | — | | | | (500 | ) | | | 84,998 | | | | 84,498 | | |
Realized gain (loss) | | | — | | | | — | | | | — | | | | — | | |
Change in unrealized appreciation
(depreciation)(a) | | | — | | | | 2,202 | | | | (46,190 | ) | | | (43,988 | ) | |
Sales | | | — | | | | (347,452 | ) | | | (7,693,045 | ) | | | (8,040,497 | ) | |
Purchases | | | — | | | | 4,304,958 | | | | 6,750,000 | | | | 11,054,958 | | |
Transfers into Level 3 | | | — | | | | — | | | | — | | | | — | | |
Transfers out of Level 3 | | | (5,312,251 | ) | | | — | | | | — | | | | (5,312,251 | ) | |
Balance as of July 31, 2013 | | | — | | | | 3,959,208 | | | | 6,199,946 | | | | 10,159,154 | | |
(a) Change in unrealized appreciation (depreciation) relating to securities held at July 31, 2013 was $2,202, fully comprised of Commercial Mortgage-Backed Securities — Non-Agency.
The Fund does not hold any significant investments with unobservable inputs which are categorized as Level 3.
The Fund's assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain commercial and asset backed securities classified as Level 3 are valued using the market approach and utilize single market quotations from broker dealers which may have included, but not limited to, the distressed nature of the security and observable transactions for similar assets in the market. Significant increases (decreases) to any of these inputs would result in a significantly lower (higher) fair value measurement.
Financial assets were transferred from Level 3 to Level 2 as observable market inputs were utilized and management's determination that there was sufficient, reliable and observable market data to value these assets as of period end.
Transfers in and/or out of Level 3 are determined based on the fair value at the beginning of the period for security positions held throughout the period.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
18
CMG Ultra Short Term Bond Fund
Statement of Assets and Liabilities
July 31, 2013
Assets | |
Investments, at value | |
Unaffiliated issuers (identified cost $1,802,050,836) | | $ | 1,797,695,205 | | |
Affiliated issuers (identified cost $44,972,196) | | | 44,972,196 | | |
Total investments (identified cost $1,847,023,032) | | | 1,842,667,401 | | |
Receivable for: | |
Investments sold | | | 750 | | |
Capital shares sold | | | 5,979,040 | | |
Dividends | | | 12,041 | | |
Interest | | | 6,697,814 | | |
Expense reimbursement due from Investment Manager | | | 158 | | |
Trustees' deferred compensation plan | | | 34,325 | | |
Total assets | | | 1,855,391,529 | | |
Liabilities | |
Payable for: | |
Investments purchased on a delayed delivery basis | | | 12,494,151 | | |
Capital shares purchased | | | 5,383,894 | | |
Dividend distributions to shareholders | | | 987,788 | | |
Investment management fees | | | 12,791 | | |
Other expenses | | | 22,818 | | |
Trustees' deferred compensation plan | | | 34,325 | | |
Total liabilities | | | 18,935,767 | | |
Net assets applicable to outstanding capital stock | | $ | 1,836,455,762 | | |
Represented by | |
Paid-in capital | | $ | 1,868,422,039 | | |
Excess of distributions over net investment income | | | (388,681 | ) | |
Accumulated net realized loss | | | (27,221,965 | ) | |
Unrealized appreciation (depreciation) on: | |
Investments | | | (4,355,631 | ) | |
Total — representing net assets applicable to outstanding capital stock | | $ | 1,836,455,762 | | |
Shares outstanding | | | 204,301,046 | | |
Net asset value per share | | $ | 8.99 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
19
CMG Ultra Short Term Bond Fund
Statement of Operations
Year Ended July 31, 2013
Net investment income | |
Income: | |
Dividends — affiliated issuers | | $ | 123,057 | | |
Interest | | | 17,132,570 | | |
Income from securities lending — net | | | 15,352 | | |
Total income | | | 17,270,979 | | |
Expenses: | |
Investment management fees | | | 4,262,492 | | |
Compensation of board members | | | 49,944 | | |
Professional fees | | | 67,891 | | |
Total expenses | | | 4,380,327 | | |
Fees waived or expenses reimbursed by Investment Manager and its affiliates | | | (113,452 | ) | |
Total net expenses | | | 4,266,875 | | |
Net investment income | | | 13,004,104 | | |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments | | | 1,740,674 | | |
Net realized gain | | | 1,740,674 | | |
Net change in unrealized appreciation (depreciation) on: | |
Investments | | | (6,512,820 | ) | |
Net change in unrealized appreciation (depreciation) | | | (6,512,820 | ) | |
Net realized and unrealized loss | | | (4,772,146 | ) | |
Net increase in net assets resulting from operations | | $ | 8,231,958 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
20
CMG Ultra Short Term Bond Fund
Statement of Changes in Net Assets
| | | Year ended
July 31, 2013 | | Year ended
July 31, 2012 | |
Operations | |
Net investment income | | $ | 13,004,104 | | | $ | 10,199,980 | | |
Net realized gain (loss) | | | 1,740,674 | | | | (581,851 | ) | |
Net change in unrealized appreciation (depreciation) | | | (6,512,820 | ) | | | 943,137 | | |
Net increase in net assets resulting from operations | | | 8,231,958 | | | | 10,561,266 | | |
Distributions to shareholders | |
Net investment income | | | (13,004,354 | ) | | | (11,245,979 | ) | |
Total distributions to shareholders | | | (13,004,354 | ) | | | (11,245,979 | ) | |
Increase (decrease) in net assets from capital stock activity | | | 475,436,196 | | | | 398,209,586 | | |
Total increase in net assets | | | 470,663,800 | | | | 397,524,873 | | |
Net assets at beginning of year | | | 1,365,791,962 | | | | 968,267,089 | | |
Net assets at end of year | | $ | 1,836,455,762 | | | $ | 1,365,791,962 | | |
Excess of distributions over net investment income | | $ | (388,681 | ) | | $ | (836,354 | ) | |
| | | Year ended July 31, 2013 | | Year ended July 31, 2012 | |
| | | Shares | | Dollars($) | | Shares | | Dollars($) | |
Capital stock activity | |
Subscriptions | | | 236,353,132 | | | | 2,128,906,967 | | | | 134,688,205 | | | | 1,212,285,459 | | |
Distributions reinvested | | | 52,716 | | | | 474,857 | | | | 55,826 | | | | 502,067 | | |
Redemptions | | | (183,652,614 | ) | | | (1,653,945,628 | ) | | | (90,557,383 | ) | | | (814,577,940 | ) | |
Total increase | | | 52,753,234 | | | | 475,436,196 | | | | 44,186,648 | | | | 398,209,586 | | |
Total net increase | | | 52,753,234 | | | | 475,436,196 | | | | 44,186,648 | | | | 398,209,586 | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
21
CMG Ultra Short Term Bond Fund
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, and is not annualized for periods of less than one year.
| | | Year ended July 31, | |
| | | 2013 | | 2012 | | 2011 | | 2010 | | 2009 | | 2008 | |
Per share data | |
Net asset value, beginning of period | | $ | 9.01 | | | $ | 9.02 | | | $ | 9.10 | | | $ | 9.16 | | | $ | 9.29 | | | $ | 9.59 | | |
Income from investment operations | |
Net investment income (loss) | | | 0.07 | | | | 0.08 | | | | 0.13 | | | | 0.13 | | | | 0.26 | | | | 0.43 | | |
Net realized and unrealized gain (loss) | | | (0.02 | ) | | | 0.00 | (a) | | | 0.00 | (a) | | | 0.06 | | | | (0.07 | ) | | | (0.30 | ) | |
Total from investment operations | | | 0.05 | | | | 0.08 | | | | 0.13 | | | | 0.19 | | | | 0.19 | | | | 0.13 | | |
Less distributions to shareholders from: | |
Net investment income | | | (0.07 | ) | | | (0.09 | ) | | | (0.21 | ) | | | (0.25 | ) | | | (0.32 | ) | | | (0.43 | ) | |
Total distributions to shareholders | | | (0.07 | ) | | | (0.09 | ) | | | (0.21 | ) | | | (0.25 | ) | | | (0.32 | ) | | | (0.43 | ) | |
Net asset value, end of period | | $ | 8.99 | | | $ | 9.01 | | | $ | 9.02 | | | $ | 9.10 | | | $ | 9.16 | | | $ | 9.29 | | |
Total return | | | 0.55 | % | | | 0.93 | % | | | 1.45 | % | | | 2.10 | %(b) | | | 2.16 | % | | | 1.42 | % | |
Ratios to average net assets(c)(d) | |
Total gross expenses | | | 0.26 | % | | | 0.26 | % | | | 0.26 | %(e) | | | 0.26 | %(e) | | | 0.29 | %(e) | | | 0.32 | % | |
Total net expenses(f) | | | 0.25 | % | | | 0.25 | % | | | 0.25 | %(e) | | | 0.25 | %(e) | | | 0.25 | %(e) | | | 0.25 | % | |
Net investment income | | | 0.76 | % | | | 0.93 | % | | | 1.39 | % | | | 1.38 | % | | | 2.82 | % | | | 4.58 | % | |
Supplemental data | |
Net assets, end of period (in thousands) | | $ | 1,836,456 | | | $ | 1,365,792 | | | $ | 968,267 | | | $ | 1,205,473 | | | $ | 338,239 | | | $ | 96,595 | | |
Portfolio turnover | | | 67 | % | | | 66 | % | | | 51 | % | | | 90 | % | | | 103 | % | | | 69 | % | |
Notes to Financial Highlights
(a) Rounds to zero.
(b) Total return includes a reimbursement of a loss experienced by the Fund due to a compliance violation. The reimbursement increased total return and net asset value per share by less than 0.01% and less than $0.01, respectively.
(c) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the acquired funds in which it invests. Such indirect expenses are not included in the reported expense ratios.
(d) Certain line items from prior years have been reclassified to conform to the current presentation.
(e) Includes interest expense which rounds to less than 0.01%.
(f) Total net expenses include the impact of certain waivers/reimbursements made by the Investment Manager and certain of its affiliates, if applicable.
The accompanying Notes to Financial Statements are an integral part of this statement.
Annual Report 2013
22
CMG Ultra Short Term Bond Fund
Notes to Financial Statements
July 31, 2013
Note 1. Organization
CMG Ultra Short Term Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Shares of the Fund are available for purchase by institutional entities, including corporations, partnerships, trusts, foundations, endowments, affiliated funds, government entities or other similar organizations, and to certain qualifying advisory clients of Bank of America. Please see the Fund's prospectus for further details, including applicable investment minimums.
Fund Shares
The Trust may issue an unlimited number of shares (without par value), which are offered continuously at net asset value.
Note 2. Summary of Significant Accounting Policies
Use of Estimates
The preparation of financial statements in accordance with U.S. generally accepted accounting principles (GAAP) 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 revenue and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently 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 (the Board) based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques which take into account appropriate factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as broker quotes. Debt securities for which quotations are readily available may also be valued based upon an over-the-counter or exchange bid quotation.
Asset and mortgage-backed securities are generally valued by pricing services, which utilize pricing models that incorporate the securities' cash flow and loan performance data. These models also take into account available market data, including
trades, market quotations, and benchmark yield curves for identical or similar securities. Factors used to identify similar securities may include, but are not limited to, issuer, collateral type, vintage, prepayment speeds, collateral performance, credit ratings, credit enhancement and expected life. Asset-backed securities for which quotations are readily available may also be valued based upon an over-the-counter or exchange bid quotation.
Investments in open-end investment companies, including money market funds, are valued at net asset value.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reliable, are valued at fair value as determined in good faith under consistently applied procedures established by and under the general supervision of the Board. 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 last quoted market price for the security.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
Delayed Delivery Securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a "when-issued" basis. This may increase the risk if the other party to the transaction fails to deliver and causes 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.
Treasury Inflation Protected Securities
The Fund may invest in treasury inflation protected securities (TIPS). The principal amount of TIPS is adjusted periodically and is increased for inflation or decreased for deflation based on a monthly published index. Interest payments are based on the adjusted principal at the time the interest is paid. These adjustments are recorded as interest income in the Statement of Operations.
Security Transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Annual Report 2013
23
CMG Ultra Short Term Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
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.
Inflation adjustments to the principal amount and cost basis of inflation-indexed securities are included in interest income.
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.
Federal Income Tax Status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its taxable income (including net short-term capital gains), 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 net investment income, capital gains 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.
Recent Accounting Pronouncement
Disclosures about Offsetting Assets and Liabilities
In December 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
No. 2011-11, Disclosures about Offsetting Assets and Liabilities and in January 2013, ASU No. 2013-1, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (collectively, the ASUs). Specifically, the ASUs require an entity to disclose both gross and net information for derivatives and other financial instruments that are subject to a master netting arrangement or similar agreement. The ASUs require disclosure of collateral received in connection with the master netting agreements or similar agreements. The disclosure requirements are effective for interim and annual periods beginning on or after January 1, 2013. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.
Note 3. Fees and Compensation Paid to Affiliates
Investment Management Fees
Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), determines which securities will be purchased, held or sold. The Fund's investment management fee is a unified fee. The Investment Manager, out of the unified fee it receives from the Fund, pays all operating costs and expenses of the Fund (other than the expenses described below or in the Fund's prospectus), including accounting expenses (other than audit fees), legal fees for the Fund, transfer agent and custodian fees, and other expenses. The Fund pays the following expenses: disinterested trustees fees and expenses, including their legal counsel, auditing expense, interest on borrowings by the Fund, if any, portfolio transaction expenses, taxes and extraordinary expenses of the Fund. The unified fee is paid monthly to the Investment Manager at the annual rate of 0.25% of the Fund's average net assets.
Administration Fees
Under an Administrative Services Agreement, the Investment Manager also serves as the Fund Administrator. The Fund Administrator does not receive a fee for its administration and accounting services under the Administrative Services Agreement.
Compensation of Board Members
Board members are compensated for their services to the Fund as disclosed in the Statement of Operations. The Trust's eligible Trustees may participate in a Deferred Compensation Plan (the Plan) which may be terminated at any time. Obligations of the Plan will be paid solely out of the Fund's assets.
Annual Report 2013
24
CMG Ultra Short Term Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
Compensation of Chief Compliance Officer
The Board has appointed a Chief Compliance Officer to the Fund in accordance with federal securities regulations. The Fund, along with other affiliated funds, is charged its pro-rata share of the expenses associated with the Chief Compliance Officer. The expenses of the Chief Compliance Officer charged to the Fund are payable by the Investment Manager.
Transfer Agent 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 Boston Financial Data Services (BFDS) to serve as sub-transfer agent. The Transfer Agent fees for the Fund are payable by the Investment Manager. The Transfer Agent pays the fees of BFDS for services as sub-transfer agent and is not entitled to reimbursement for such fees from the Fund.
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), through November 30, 2013, unless sooner terminated at the sole discretion of the Board, so that the Fund's net operating expenses, after giving effect to fees waived/expenses reimbursed and/or overdraft charges from the Fund's custodian, do not exceed the annual rate of 0.25% of the Fund's average daily net assets.
Under the agreement, 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, extraordinary expenses and any other expenses the exclusion of which is specifically approved by the Board. This agreement may be modified or amended only with approval from all parties.
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 July 31, 2013, these differences are primarily due to differing treatment for capital loss carryforwards, deferral/reversal of wash sales losses, Trustees' deferred compensation, distribution reclassifications and market premium sold. To the extent these differences are permanent, reclassifications are made among the components of the Fund's net assets in the Statement of Assets and Liabilities. Temporary differences do not require reclassifications. In the Statement of Assets and Liabilities the following reclassifications were made:
Excess of distributions over net investment income | | $ | 447,923 | | |
Accumulated net realized loss | | | (399,961 | ) | |
Paid-in capital | | | (47,962 | ) | |
Net investment income 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 July 31, | | 2013 | | 2012 | |
Ordinary income | | $ | 13,004,354 | | | $ | 11,245,979 | | |
Total | | $ | 13,004,354 | | | $ | 11,245,979 | | |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2013, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income | | $ | 634,072 | | |
Undistributed accumulated long-term capital loss | | | (27,218,620 | ) | |
Unrealized depreciation | | | (4,359,616 | ) | |
At July 31, 2013, the cost of investments for federal income tax purposes was $1,847,027,017 and the aggregate gross unrealized appreciation and depreciation based on that cost was:
Unrealized appreciation | | $ | 2,609,777 | | |
Unrealized depreciation | | | (6,969,393 | ) | |
Net unrealized depreciation | | $ | (4,359,616 | ) | |
Annual Report 2013
25
CMG Ultra Short Term Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
The following capital loss carryforward, determined at July 31, 2013, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:
Year of Expiration | | Amount ($) | |
2014 | | | 627,248 | | |
2015 | | | 685,751 | | |
2016 | | | 213,699 | | |
2017 | | | 2,249,159 | | |
2018 | | | 1,023,617 | | |
2019 | | | 11,369,928 | | |
Unlimited short-term | | | 4,155,779 | | |
Unlimited long-term | | | 6,893,439 | | |
Total | | | 27,218,620 | | |
For the year ended July 31, 2013, $47,961 of capital loss carryforward expired unused.
Unlimited capital loss carryforwards are required to be utilized prior to any capital losses which carry an expiration date. As a result of this ordering rule, capital loss carryforwards which carry an expiration date may be more likely to expire unused.
Management of the Fund has concluded that there are no significant uncertain tax positions 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 obligations, aggregated to $1,711,402,168 and $1,056,853,911, respectively, for the year ended July 31, 2013, of which $272,972,856 and $101,374,572, respectively, were U.S. government securities.
Note 6. Lending of Portfolio Securities
Effective December 19, 2012, the Fund no longer participates in securities lending activity. Prior to that date, the Fund participated, or was eligible to participate, in securities lending activity pursuant to a Master Securities Lending Agreement (the Agreement) with JPMorgan Chase Bank, N.A. (JPMorgan). The Agreement authorized JPMorgan as lending agent to lend securities to authorized borrowers in order to
generate additional income on behalf of the Fund. Pursuant to the Agreement, the securities loaned were secured by cash or securities that either were issued or guaranteed as to principal and interest by the U.S. government, its agencies, authorities or instrumentalities with value equal to at least 100% of the market value of the loaned securities. Any additional collateral required to maintain those levels due to market fluctuations of the loaned securities was requested to be delivered the following business day. Cash collateral received was invested by the lending agent on behalf of the Fund into authorized investments pursuant to the Agreement.
Pursuant to the Agreement, the Fund received income for lending its securities either in the form of fees or by earning interest on invested cash collateral, net of negotiated rebates paid to borrowers and fees paid to the lending agent for services provided and any other securities lending expenses. Net income earned from securities lending for the year ended July 31, 2013 is disclosed in the Statement of Operations. The Fund continued to earn and accrue interest and dividends on the securities loaned.
Note 7. Affiliated Money Market Fund
The Fund invests its daily cash balances in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds. The income earned by the Fund from such investments is included as "Dividends — affiliated issuers" in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of Columbia Short-Term Cash Fund.
Note 8. Shareholder Concentration
At July 31, 2013, one unaffiliated shareholder account owned 96.4% of the outstanding shares of the Fund. The Fund has no knowledge about whether any portion of those shares was owned beneficially by such account. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund.
Note 9. Line of Credit
The Fund has entered into a revolving credit facility with a syndicate of banks led by JPMorgan whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility agreement, as amended, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $500 million. Interest is charged to each participating fund based on its borrowings at a rate equal
Annual Report 2013
26
CMG Ultra Short Term Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 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 amount of the credit facility at a rate of 0.08% per annum. The commitment fee is included in other expenses in the Statement of Operations.
The Fund had no borrowings during the year ended July 31, 2013.
Note 10. Significant Risks
Asset-Backed Securities Risk
The value of asset-backed securities may be affected by, among other factors, changes in interest rates, the market's assessment of the quality of underlying assets, the creditworthiness of the servicer for the underlying assets, factors concerning the interests in and structure of the issuer or the originator of the underlying assets, or the creditworthiness or rating of the entities that provide any supporting letters of credit, surety bonds, derivative instruments, or other credit enhancement. The value of asset-backed securities also will be affected by the exhaustion, termination or expiration of any credit enhancement. Most asset-backed securities are subject to prepayment risk, which is the possibility that the underlying debt may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Fund to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of asset-backed securities may be difficult to predict and may result in greater volatility.
Mortgage-Backed Securities Risk
The value of mortgage-backed securities may be affected by, among other things, changes in interest rates, factors concerning the interests in and structure of the issuer or the originator of the mortgages, the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements or the quality of underlying assets or the market's assessment thereof. Mortgage-backed securities are subject to prepayment risk, which is the possibility that the underlying mortgage may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Fund to have to reinvest the money received in securities that have lower yields. In addition, the impact of prepayments on the value of mortgage-backed securities may be difficult to predict and may result in greater volatility.
Note 11. 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 12. Information Regarding Pending and Settled Legal Proceedings
In December 2005, without admitting or denying the allegations, American Express Financial Corporation (AEFC, which is now known as Ameriprise Financial, Inc. (Ameriprise Financial)) entered into settlement agreements with the Securities and Exchange Commission (SEC) and Minnesota Department of Commerce (MDOC) related to market timing activities. As a result, AEFC was censured and ordered to cease and desist from committing or causing any violations of certain provisions of the Investment Advisers Act of 1940, the Investment Company Act of 1940, and various Minnesota laws. AEFC agreed to pay disgorgement of $10 million and civil money penalties of $7 million. AEFC also agreed to retain an independent distribution consultant to assist in developing a plan for distribution of all disgorgement and civil penalties ordered by the SEC in accordance with various undertakings detailed at www.sec.gov/litigation/admin/ia-2451.pdf. Ameriprise Financial and its affiliates have cooperated with the SEC and the MDOC in these legal proceedings, and have made regular reports to the funds' Boards of Trustees.
Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Funds are 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 Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make 10-Q, 10-K and, as necessary, 8-K filings with the Securities and Exchange Commission 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
Annual Report 2013
27
CMG Ultra Short Term Bond Fund
Notes to Financial Statements (continued)
July 31, 2013
fund redemptions, reduced sale of fund shares or other adverse consequences to the Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, 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.
Annual Report 2013
28
CMG Ultra Short Term Bond Fund
Report of Independent Registered Public Accounting Firm
To the Trustees of Columbia Funds Series Trust I and the Shareholders of CMG Ultra Short Term Bond Fund
In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of CMG Ultra Short Term Bond Fund (the "Fund") (a series of Columbia Funds Series Trust I) at July 31, 2013, the results of its operations, the changes in its net assets and the financial highlights for the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at July 31, 2013 by correspondence with the custodian, brokers and transfer agent, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 20, 2013
Annual Report 2013
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CMG Ultra Short Term Bond Fund
The Trustees serve terms of indefinite duration. The names, addresses and birth years of the Trustees and Officers of the Funds in Columbia Funds Series Trust I, the year each was first elected or appointed to office, their principal business occupations during at least the last five years, the number of Funds overseen by each Trustee and other directorships they hold are shown below. Each officer listed below serves as an officer of each Fund in Columbia Funds Series Trust I.
Independent Trustees
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Rodman L. Drake (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) and
Chairman of the Board (since 2009) | | Independent consultant since 2010; Co-Founder of Baringo Capital LLC (private equity) from 1997 to 2008; Chairman (from 2003 to 2010) and CEO (from 2008 to 2010) of Crystal River Capital, Inc. (real estate investment trust); Oversees 52; Jackson Hewitt Tax Service Inc. (tax preparation services) from 2004 to 2011; Student Loan Corporation (student loan provider) from 2005 to 2010; Celgene Corporation (global biotechnology company); The Helios Funds and Brookfield Funds (closed-end funds); Chimerix, Inc. (biopharmaceutical company) since August 1, 2013; Crystal River Capital, Inc. from 2005 to 2010; Parsons Brinckerhoff from 1995 to 2008; and Apex Silver Mines Ltd. from 2007 to 2009 | |
Douglas A. Hacker (Born 1955)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Independent business executive since May 2006; Executive Vice President — Strategy of United Airlines from December 2002 to May 2006; President of UAL Loyalty Services (airline marketing company) from September 2001 to December 2002; Executive Vice President and Chief Financial Officer of United Airlines from July 1999 to September 2001. Oversees 52; Nash Finch Company (food distributor); Aircastle Limited (aircraft leasing); and SeaCube Container Leasing Ltd. (container leasing) | |
Janet Langford Kelly (Born 1957)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1996) | | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (integrated energy company) since September 2007; Deputy General Counsel — Corporate Legal Services, ConocoPhillips from August 2006 to August 2007; Partner, Zelle, Hofmann, Voelbel, Mason & Gette LLP (law firm) from March 2005 to July 2006; Adjunct Professor of Law, Northwestern University from September 2004 to June 2006; Director, UAL Corporation (airline) from February 2006 to July 2006; Chief Administrative Officer and Senior Vice President, Kmart Holding Corporation (consumer goods) from September 2003 to March 2004. Oversees 52; None | |
Nancy T. Lukitsh (Born 1956)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser) from 1997 to 2010; Chair, Wellington Management Investment Portfolios (commingled non-U.S. investment pools) from 2007 to 2010; Director, Wellington Trust Company, NA and other Wellington affiliates from 1997 to 2010. Oversees 52; None | |
William E. Mayer (Born 1940)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1994) | | Partner, Park Avenue Equity Partners (private equity) since February 1999; Dean and Professor, College of Business and Management, University of Maryland from 1992 to 1996. Oversees 52; DynaVox Inc. (speech creation); Lee Enterprises (print media); WR Hambrecht + Co. (financial service provider) from 2000 to 2012; BlackRock Kelso Capital Corporation (investment company) | |
David M. Moffett (Born 1952)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2011) | | Retired. Chief Executive Officer, Federal Home Loan Mortgage Corporation, from 2008 to 2009; Senior Adviser, Global Financial Services Group, Carlyle Group, Inc., from 2007 to 2008; Vice Chairman and Chief Financial Officer, U.S. Bancorp, from 1993 to 2007. Oversees 52; CIT Group Inc. (commercial and consumer finance); eBay Inc. (online trading community); MBIA Inc. (financial service provider); E.W. Scripps Co. (print and television media), Building Materials Holding Corp. (building materials and construction services); Genworth Financial, Inc. (financial and insurance products and services); and University of Oklahoma Foundation. | |
Charles R. Nelson (Born 1942)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1981) | | Retired. Professor Emeritus, University of Washington, since 2011; Professor of Economics, University of Washington from January 1976 to 2011; Ford and Louisa Van Voorhis Professor of Political Economy, University of Washington from 1993 to 2011; Adjunct Professor of Statistics, University of Washington from 1980 to 2011; Associate Editor, Journal of Money, Credit and Banking from September 1993 to 2008; consultant on econometric and statistical matters. Oversees 52; None | |
John J. Neuhauser (Born 1943)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1984) | | President, Saint Michael's College, since August 2007; Director or Trustee of several non-profit organizations, including Fletcher Allen Health Care, Inc.; University Professor, Boston College from November 2005 to August 2007; Academic Vice President and Dean of Faculties, Boston College from August 1999 to October 2005. Oversees 52; Liberty All-Star Equity Fund and Liberty All-Star Growth Fund (closed-end funds) | |
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CMG Ultra Short Term Bond Fund
Trustees and Officers (continued)
Independent Trustees (continued)
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
Patrick J. Simpson (Born 1944)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 2000) | | Partner, Perkins Coie LLP (law firm). Oversees 52; None | |
Anne-Lee Verville (Born 1945)
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Trustee (since 1998) | | Retired. General Manager — Global Education Industry from 1994 to 1997, President — Application Systems Division from 1991 to 1994, Chief Financial Officer — US Marketing & Services from 1988 to 1991, and Chief Information Officer from 1987 to 1988, IBM Corporation (computer and technology). Oversees 52; Enesco Group, Inc. (producer of giftware and home and garden decor products) from 2001 to 2006 | |
Interested Trustee
Name, Address and Year of Birth,
Position with Funds, Year First
Elected or Appointed to Office | | Principal Occupation(s) During Past Five Years, Number of Funds in Columbia
Funds Complex Overseen by Trustee, Other Directorships Held | |
William F. Truscott (born 1960)
53600 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President (since 2012) | | President and Chairman of the Board, Columbia Management Investment Advisers, LLC since May 2010 and February 2012, respectively (previously President and Chief Investment Officer, from 2001 to April 2010); Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012 (previously, Chief Executive Officer, U.S. Asset Management & President, Annuities, from May 2010 to September 2012 and President — U.S. Asset Management and Chief Investment Officer from 2005 to April 2010); Director and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since May 2010 and February 2012, respectively (previously Chairman of the Board and Chief Executive Officer from 2006 to April 2010); Chairman of the Board and Chief Executive Officer, RiverSource Distributors, Inc. since 2006; President and Chief Executive Officer, Ameriprise Certificate Company, 2006 to August 2012; Oversees 184; Director, Ameriprise Certificate Company, 2006-January 2013 | |
The Statement of Additional Information includes additional information about the Trustees of the Funds and is available, without charge, upon request by calling 800.345.6611.
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. In addition to Mr. Truscott, who is Senior Vice President, the Funds' other officers are:
Officers
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
J. Kevin Connaughton (Born 1964)
225 Franklin Street
Boston, MA 02110
President (since 2009) | | Senior Vice President and General Manager — Mutual Fund Products, Columbia Management Investment Advisers, LLC since May 2010; President, Columbia Funds since 2009 and RiverSource Funds since May 2010; Managing Director, Columbia Management Advisors, LLC, December 2004-April 2010; Senior Vice President and Chief Financial Officer, Columbia Funds, June 2008-January 2009; Treasurer, Columbia Funds, October 2003-May 2008; and senior officer of various other affiliated funds since 2000 | |
Amy Johnson (Born 1965)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) | | Senior Vice President and Chief Operating Officer, Columbia Management Investment Advisers, LLC since May 2010 (previously Chief Administrative Officer, from 2009-April 2010, Vice President — Asset Management and Trust Company Services, from 2006-2009) | |
Michael G. Clarke (Born 1969)
225 Franklin Street
Boston, MA 02110
Treasurer (since 2011) and Chief
Financial Officer (since 2009) | | Vice President, Columbia Management Investment Advisers, LLC since May 2010; Managing Director of Fund Administration, Columbia Management Advisors, LLC, September 2004-April 2010; senior officer of Columbia Funds and affiliated funds since 2002 | |
Annual Report 2013
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CMG Ultra Short Term Bond Fund
Trustees and Officers (continued)
Officers (continued)
Name, Year of Birth and Address | | Principal Occupation(s) During the Past Five Years | |
Scott R. Plummer (Born 1959)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Senior Vice President, Assistant
Secretary and Chief Legal Officer
(since 2010) | | Senior Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since June 2005; Senior Vice President and Lead Chief Counsel — Asset Management, Ameriprise Financial, Inc. since May 2010 (previously Vice President and Chief Counsel — Asset Management, 2005-April 2010); Vice President, Chief Counsel and Assistant Secretary, Columbia Management Investment Distributors, Inc. since 2008; Vice President, General Counsel and Secretary, Ameriprise Certificate Company since 2005; Chief Counsel, RiverSource Distributors, Inc. since 2006; senior officer of Columbia Funds and affiliated funds since 2010 | |
Colin Moore (Born 1958)
225 Franklin Street
Boston, MA 02110
Senior Vice President (since 2010) | | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc. since July 2013; Director and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since May 2010; Manager, Managing Director and Chief Investment Officer of Columbia Management Advisors, LLC, 2007-April 2010 | |
Thomas P. McGuire (Born 1972)
225 Franklin Street
Boston, MA 02110
Chief Compliance Officer
(since 2012) | | Vice President — Asset Management Compliance, Columbia Management Investment Advisers, LLC since 2010; Chief Compliance Officer, Ameriprise Certificate Company, since September 2010; Compliance Executive, Bank of America, N.A. 2005-2010 | |
Stephen T. Welsh (born 1957)
225 Franklin Street
Boston, MA 02110
Vice President (since 2006) | | President and Director, Columbia Management Investment Services Corp. since May 2010; President and Director, Columbia Management Services, Inc., July 2004-April 2010; Managing Director, Columbia Management Distributors, Inc., August 2007-April 2010 | |
Christopher O. Petersen (born 1970)
5228 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President (since 2010) and
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since January 2010 (formerly Vice President and Group Counsel or Counsel, April 2004-January 2010); Assistant Secretary of Columbia Funds, January 2007-April 2011 | |
Paul D. Pearson (born 1956)
10468 Ameriprise Financial Center
Minneapolis, MN 55474
Vice President and Assistant
Treasurer (since 2011) | | Vice President, Investment Accounting, Columbia Management Investment Advisers, LLC, since May 2010; Vice President — Managed Assets, Investment Accounting, Ameriprise Financial, Inc., February 1998-May 2010 | |
Joseph F. DiMaria (Born 1968)
225 Franklin Street
Boston, MA 02110
Vice President (since 2011) and
Chief Accounting Officer (since 2008) | | Vice President, Mutual Fund Administration, Columbia Management Investment Advisers, LLC, since May 2010; Director of Fund Administration, Columbia Management Advisors, LLC, January 2006-April 2010 | |
Paul B. Goucher (born 1968)
100 Park Avenue
New York, NY 10017
Vice President and Assistant
Secretary (since 2010) | | Vice President and Lead Chief Counsel, Ameriprise Financial, Inc. since November 2008 and January 2013, respectively (formerly, Chief Counsel from January 2010-January 2013 and Group Counsel from November 2008-January 2010); Director, Managing Director and General Counsel, J. & W. Seligman & Co. Incorporated, July 2008-November 2008 (previously, Managing Director and Associate General Counsel, January 2005-July 2008) | |
Michael E. DeFao (born 1968)
225 Franklin Street
Boston, MA 02110
Vice President and Assistant
Secretary (since 2011) | | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Associate General Counsel, Bank of America, N.A. June 2005-April 2010 | |
Annual Report 2013
32
CMG Ultra Short Term Bond Fund
Board Consideration and Approval of
Advisory Agreement
On June 14, 2013, the Board of Trustees (the "Board") and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) of the Trust (the "Independent Trustees") unanimously approved the continuation of the Investment Management Services Agreement (the "Advisory Agreement") with Columbia Management Investment Advisers, LLC (the "Investment Manager") with respect to CMG Ultra Short Term Bond Fund (the "Fund"), a series of the Trust. As detailed below, the Advisory Fees and Expenses Committee (the "Committee") and the Board met on multiple occasions to review and discuss, both among themselves and with the management team of the Investment Manager, materials provided by the Investment Manager before determining to approve the continuation of the Advisory Agreement.
In connection with their deliberations regarding the continuation of the Advisory Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Advisory Agreement, and discussed these materials with representatives of the Investment Manager at Committee meetings held on March 5, 2013, April 24, 2013 and June 13, 2013, and at the Board meeting held on June 14, 2013. In addition, the Board considers matters bearing on the Advisory Agreement at most of its other meetings throughout the year and meets regularly with senior management of the Funds and the Investment Manager. Through the Board's Investment Oversight Committees, Trustees also meet with selected Fund portfolio managers and other investment personnel at various times throughout the year. The Committee and the Board also consulted with Fund counsel and with the Independent Trustees' independent legal counsel, who advised on various matters with respect to the Committee's and the Board's considerations and otherwise assisted the Committee and the Board in their deliberations. On June 13, 2013, the Committee recommended that the Board approve the continuation of the Advisory Agreement. On June 14, 2013, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement for the Fund.
The Committee and the Board considered all information that they, their legal counsel, or the Investment Manager believed reasonably necessary to evaluate and to determine whether to approve the continuation of the Advisory Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Advisory Agreement for the Fund included the following:
• Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks;
• Information on the Fund's advisory fees and total expenses, including information comparing the Fund's expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider;
• 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 extraordinary expenses) would not exceed the median expenses of a group of comparable funds (as determined from time to time, generally annually, by the independent third-party data provider);
• The terms and conditions of the Advisory Agreement;
• The terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including the Administrative Services Agreement, the Distribution Agreement and the Transfer and Dividend Disbursing Agent Agreement;
• Descriptions of various functions performed by the Investment Manager under the Advisory Agreement, including portfolio management and portfolio trading practices;
• Information regarding the management fees and investment performance of comparable portfolios of other clients of the Investment Manager, including institutional separate accounts;
• Information regarding the reputation, regulatory history and 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, including an assessment of the Investment Manager's compliance system by the Fund's Chief Compliance Officer; and
• The profitability to the Investment Manager and its affiliates from their relationships with the Fund.
Annual Report 2013
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CMG Ultra Short Term Bond Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Nature, Extent and Quality of Services Provided under the Advisory Agreement
The Committee and the Board considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Advisory Agreement and under separate agreements for the provision of transfer agency and administrative services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment Manager's ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including personnel and other resources, compensation programs for personnel involved in fund management, reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager's investment research capabilities and trade execution services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager's experience with similarly-structured funds. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager and its affiliates, and considered the Investment Manager's ability to provide administrative services to the Fund pursuant to a separate Administrative Services Agreement, including the Investment Manager's ability to coordinate the activities of the Fund's other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Advisory Agreement supported the continuation of the Advisory Agreement.
Investment Performance
The Committee and the Board reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks and information based on reports of the independent third-party data provider that compared the performance of the Fund to the performance of a group of comparable mutual funds. The Committee and the Board also reviewed a description of the third party's methodology for identifying the Fund's peer groups for purposes of performance and expense comparisons. Although the Fund's performance lagged that of a relevant peer group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to warrant continuation of the Fund's Advisory Agreement. Those factors included one or more of the following: (i) that the Fund's performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund's investment strategy and policies and that the Fund was performing within a reasonable range of expectations, given those investment decisions, market conditions and the Fund's investment strategy; (iii) that the Fund's performance was competitive when compared to other relevant performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund's investment performance, including, but not limited to, enhancing the resources supporting the portfolio managers.
The Committee and the Board noted that, through December 31, 2012, the Fund's performance was in the fifty-sixth, forty-eighth and sixtieth percentile (where the best performance would be in the first percentile) of its category selected by the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five- year periods, respectively.
The Committee and the Board also considered the Investment Manager's performance and reputation generally, the Investment Manager's historical responsiveness to Board concerns about performance, and the Investment Manager's willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager was sufficient, in light of other considerations, to warrant the continuation of the Advisory Agreement.
Investment Advisory Fee Rates and Other Expenses
The Committee and the Board considered the advisory fees charged to the Fund under the Advisory Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Advisory Agreement, the
Annual Report 2013
34
CMG Ultra Short Term Bond Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Committee and the Board considered, among other information, the Fund's advisory fee and its total expense ratio as a percentage of average daily net assets. The Committee and the Board noted that the Fund's actual management fee and net expense ratio are ranked in the second and first quintiles, respectively, (where the lowest fees and expenses would be in the first quintile) against the Fund's expense universe as determined by the independent third-party data provider for purposes of expense comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also received and considered information about the advisory fees charged by the Investment Manager to institutional separate accounts. In considering the fees charged to those accounts, the Committee and the Board took into account, among other things, the Investment Manager's representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided, differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. In evaluating the Fund's advisory fees, the Committee and the Board also took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the advisory fee rates and expenses of the Fund supported the continuation of the Advisory Agreement.
Costs of Services Provided and Profitability
The Committee and the Board also took note of the costs of the services provided (both on an absolute and relative basis) and the profitability to the Investment Manager and its affiliates in connection with their relationships with the Fund. In evaluating these considerations, the Committee and the Board took note of the advisory fees charged by the Investment Manager to other clients, including fees charged by the Investment Manager to institutional separate account clients with similar investment strategies to those of the Fund.
The Committee and the Board also considered the compensation directly or indirectly received by the Investment Manager's affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided by management as to the profitability of the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of profitability levels realized in 2012 to profitability levels realized in 2011. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in whole or in part, the performance of the Fund, the expense ratio of the Fund, and the implementation of expense limitations with respect to the Fund. The Committee and the Board also considered information provided by the Investment Manager regarding its financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies.
After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Advisory Agreement.
Economies of Scale
The Committee and the Board considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager's investment advisory clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment advisory fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading and compliance resources.
In considering these matters, the Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as discussed above. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the continuation of the Advisory Agreement.
Annual Report 2013
35
CMG Ultra Short Term Bond Fund
Board Consideration and Approval of
Advisory Agreement (continued)
Other Benefits to the Investment Manager
The Committee and the Board received and considered information regarding "fall-out" or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement of the Investment Manager to provide administrative services to the Fund and the engagement of the Investment Manager's affiliates to provide distribution and transfer agency services to the Fund. The Committee and the Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund's securities transactions, and reviewed information about the Investment Manager's practices with respect to allocating portfolio transactions for brokerage and research services. The Committee and the Board considered the possible conflicts of interest associated with certain fall-out or other ancillary benefits and the reporting, disclosure and other processes that are in place to address such possible conflicts of interest. The Committee and the Board recognized that the Investment Manager's profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Advisory Agreement. In their deliberations, the Trustees did not identify any particular information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material, including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Advisory Agreement.
Annual Report 2013
36
CMG Ultra Short Term Bond Fund
Important Information About This Report
Each fund mails one shareholder report to each shareholder address. If you would like more than one report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
The policy of the Board is to vote the proxies of the companies in which each 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 columbiamanagement.com; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how each fund voted proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30 of that year, and is available without charge by visiting columbiamanagement.com; or searching the website of the SEC at sec.gov.
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each fund's Form N-Q is available on the SEC's website at sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 800.SEC.0330. Each fund's complete schedule of portfolio holdings, as filed on Form N-Q, can also be obtained without charge, upon request, by calling 800.345.6611.
Annual Report 2013
37
CMG Ultra Short Term Bond Fund
P.O. Box 8081
Boston, MA 02266-8081
columbiamanagement.com
This information is for use with concurrent or prior delivery of a fund prospectus. Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the Fund go to columbiamanagement.com. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
© 2013 Columbia Management Investment Advisers, LLC. All rights reserved.
ANN103_07_C01_(09/13)
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 adopted in 2(a) above.
(c) During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics described in 2(a) above that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that Douglas A. Hacker, David M. Moffett and Anne-Lee Verville, each of whom are members of the registrant’s Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Mr. Hacker, Mr. Moffett and Ms. Verville 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 four series of the registrant whose reports to stockholders are included in this annual filing.
(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2013 and July 31, 2012 are approximately as follows:
2013 | | 2012 | |
$ | 107,400 | | $ | 132,800 | |
| | | | | |
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. Fiscal year 2013
also includes audit fees for the review and provision of consent in connection with filing Form N-14 for fund mergers.
(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 July 31, 2013 and July 31, 2012 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. In fiscal years 2013 and 2012, Audit-Related Fees consist of agreed-upon procedures performed for semi-annual shareholder reports. Fiscal year 2013 includes Audit-Related Fees for agreed-upon procedures related to fund mergers. Fiscal year 2012 includes Audit-Related Fees for agreed-upon procedures for fund accounting and custody conversions.
During the fiscal years ended July 31, 2013 and July 31, 2012, 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 July 31, 2013 and July 31, 2012 are approximately as follows:
2013 | | 2012 | |
$ | 14,400 | | $ | 15,100 | |
| | | | | |
Tax Fees 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 July 31, 2013 and July 31, 2012, 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 July 31, 2013 and July 31, 2012 are approximately as follows:
All Other Fees 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 July 31, 2013 and July 31, 2012 are approximately as follows:
2013 | | 2012 | |
$ | 231,400 | | $ | 395,800 | |
| | | | | |
In fiscal years 2013 and 2012, All Other Fees consist of fees billed for internal control examinations of the registrant’s transfer agent and investment advisor.
(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) 100% of the services performed for items (b) through (d) above during 2013 and 2012 were pre-approved by the registrant’s Audit Committee.
(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 during the fiscal years ended July 31, 2013 and July 31, 2012 are approximately as follows:
2013 | | 2012 | |
$ | 249,400 | | $ | 416,600 | |
| | | | | |
(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 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 material 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 registrant’s second fiscal quarter of 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. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
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 I | |
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By (Signature and Title) | | /s/ J. Kevin Connaughton | |
| | J. Kevin Connaughton, President and Principal Executive Officer | |
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Date | | September 23, 2013 | |
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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/ J. Kevin Connaughton | |
| | J. Kevin Connaughton, President and Principal Executive Officer | |
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Date | | September 23, 2013 | |
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By (Signature and Title) | | /s/ Michael G. Clarke | |
| | Michael G. Clarke, Treasurer and Chief Financial Officer | |
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Date | | September 23, 2013 | |
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