UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-04367
Columbia Funds Series Trust I
(Exact name of registrant as specified in charter)
290 Congress Street
Boston, MA 02210
(Address of principal executive offices) (Zip code)
Daniel J. Beckman
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: October 31
Date of reporting period: October 31, 2021
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Annual Report
October 31, 2021
Columbia Strategic California Municipal Income Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified by mail and provided with a website address to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Strategic California Municipal Income Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Strategic California Municipal Income Fund | Annual Report 2021
Investment objective
The Fund seeks total return, with a focus on income exempt from federal income tax and California individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2016
| Average annual total returns (%) (for the period ended October 31, 2021) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 06/16/86 | 3.61 | 3.24 | 4.54 |
| | Including sales charges | | 0.51 | 2.60 | 4.22 |
| Advisor Class* | 03/19/13 | 3.82 | 3.51 | 4.77 |
| Class C | Excluding sales charges | 08/01/97 | 3.09 | 2.77 | 4.07 |
| | Including sales charges | | 2.09 | 2.77 | 4.07 |
| Institutional Class | 09/19/05 | 3.78 | 3.50 | 4.80 |
| Institutional 2 Class* | 03/01/16 | 3.83 | 3.52 | 4.69 |
| Institutional 3 Class* | 03/01/17 | 3.88 | 3.54 | 4.70 |
| Bloomberg California Municipal Bond Index | | 2.09 | 3.32 | 4.16 |
| Bloomberg Municipal Bond Index | | 2.64 | 3.41 | 3.88 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg California Municipal Bond Index is a subset of the Bloomberg Municipal Bond Index consisting solely of bonds issued by obligors located in the state of California. Effective August 24, 2021, the Bloomberg Barclays California Municipal Bond Index was re-branded as the Bloomberg California Municipal Bond Index.
The Bloomberg 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. Effective August 24, 2021, the Bloomberg Barclays Municipal Bond Index was re-branded as the Bloomberg Municipal Bond Index.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Fund performance may be significantly negatively impacted by the economic impact of the COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and capital markets around the world in ways that will likely continue and may change in unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate pre-existing political, social and economic risks in certain countries and globally.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 3 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2011 — October 31, 2021)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Strategic California Municipal Income Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at October 31, 2021) |
| AAA rating | 1.8 |
| AA rating | 39.0 |
| A rating | 23.8 |
| BBB rating | 16.5 |
| BB rating | 1.1 |
| D rating | 0.6 |
| Not rated | 17.2 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Manager Discussion of Fund Performance
For the 12-month period that ended October 31, 2021, the Fund’s Class A shares returned 3.61% excluding sales charges. Institutional Class shares of the Fund returned 3.78%. For the same time period, the Fund’s benchmark, the Bloomberg California Municipal Bond Index, returned 2.09%, and the national municipal bond market, as measured by the Bloomberg Municipal Bond Index, returned 2.64%.
Market overview
As the period began, there was a significant increase in municipal bond issuance ahead of the November election. The resulting excess supply and upward rate pressure pushed municipal total returns into negative territory. A renewed bid for risk assets, including municipal bonds, was spurred as election volatility failed to materialize and positive COVID-19 vaccination news emerged. Following the pre-election flood of supply, municipal investors were left with limited new issuance to meet demand in November and December, a dynamic that helped end 2020 on a positive note.
The strong municipal performance that closed 2020 continued into the new year. Despite the gradual upward march of U.S. Treasury yields, municipal performance held positive through the first month of the year, as lighter supply and tighter spreads produced positive excess returns versus Treasuries. By mid-February, however, municipals succumbed to the upward pull of Treasury yields, as municipal yields repriced higher, between 20 and 40 basis points (bps) across much of the curve, with only the shortest maturities avoiding substantial yield spikes. (A basis point is 1/100 of a percent.) However, negative total returns brought on by higher yields did not spark an outflow cycle. Rather, municipal investors took the opportunity to put cash to work at higher yield levels, and by the end of March 2021, yields had retraced lower by 3–6 bps, reviving outperformance versus Treasuries and closing the first quarter on a positive note.
Federal stimulus via the $1.9 trillion American Rescue Plan provided some measure of indirect support for portions of the municipal market. While rates markets focused on the possible inflationary effects of such a large stimulus package, municipal investors chose to weigh the positive credit impacts. Stimulus, combined with tax revenues that have broadly surprised to the upside, continued to support improvement in municipal credit fundamentals.
By mid-2021, credit concerns that arose during COVID-19 shutdowns had diminished, and lower quality segments of the market led positive performance. Though pockets of value remained in certain sectors or issuers, the dramatic post-COVID-19 recovery had driven valuations to relatively full levels across much of the market. With the COVID-19 shutdowns lifted, it was evident that most states’ expectations of massive revenue gaps failed to materialize. Tax revenue performance was rather strong even through the depths of the pandemic, with projected deficits turning into actual surpluses for many state and local governments. Surprise revenue outperformance, coupled with direct federal support via the American Rescue Plan, bolstered credit fundamentals for most issuers.
A Delta-variant-driven resurgence in COVID-19 cases weighed on investors’ minds as the third quarter of 2021 began. Initially, the expectation of slower growth pushed Treasury yields lower with 10-year Treasury yields reaching a low of 1.17% in early August. Undeterred by Delta, the Federal Reserve indicated that the tapering of asset purchases would likely begin soon but gave no timeline for the start of interest rate hikes. Supply chain disruptions, energy shortages and transportation bottlenecks all pressured inflation and interest rates higher. Interest rate volatility led most fixed-income sectors to negative returns during the third quarter of 2021. However, despite a negative third quarter, municipal performance remained one of the few positive corners of the domestic fixed-income landscape on a year-to-date basis. Post-COVID-19 tax revenue performance in most locales continued to outpace expectations, improving credit fundamentals and leaving many municipal issuers in healthy fiscal positions.
In the final month of the period, a weaker tone and the continuation of upward rate pressure weighed on municipal returns, as the national muni market ended with another month of negative total returns. Policy negotiations in Washington remained fluid, but by period-end had taken a turn towards removing tax proposals that would have been stimulative for municipal demand. Despite negative returns in the last few months of the reporting period, both the California and the national municipal bond market returned positive results for the 12-month period that ended October 31, 2021.
Within the state of California, the pace of improvement in California’s labor market slowed through the second quarter of 2021 into the third quarter, slowing from the initial surge seen in the first quarter of 2021 when service industry businesses re-opened. California has only regained slightly over 50% of the jobs lost from the onset of the COVID-19 pandemic. Notably, this compares to the national average of employment recovery where 70% of the jobs lost following the pandemic have been
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 5 |
Manager Discussion of Fund Performance (continued)
regained. The state’s unemployment rate remains among the highest in the nation at 7.8% and well above the pre-pandemic rate of 4.3%. A bright spot for California’s economy has been the state’s above median wealth levels, thriving technology sector and surging housing values bolstering many resident’s balance sheets and wealth further. However, the rapid rise in housing costs in a state already viewed as pressing up against reasonable affordability metrics pre-COVID-19, represented a serious economic headwind for the state’s outlook as the cost of living has made it more difficult for the state to appeal to new residents and increase its labor pool. With the rise of remote work arrangements during the pandemic, California lost population as many knowledge-based workers opted to leave the state for more affordable living situations. Many of California’s major metropolitan areas, namely San Francisco, Los Angeles, and San Diego, ranked among the lowest in the nation in ‘Return to Office’ indexes. As a result of the uncertainty surrounding these conflicting factors, the California municipal bond index underperformed the national index for the year.
The broad theme for the California municipal market for the 12-month period that ended October 31, 2021 was the outperformance by longer maturities and medium to lower quality bonds, and by revenue bonds versus general obligation bonds.
The Fund’s notable contributors during the period
| • | The primary factors that contributed to the Fund’s performance during the period were sector and maturity security selection, as well as the Fund’s overweight, relative to the benchmark, to medium and lower quality bonds. |
| • | The Fund’s selections in the hospital, education, state general obligation and special tax sectors, along with those in the 12 to 17 and 25 to 30-year maturity ranges, outperformed those in the benchmark. |
| • | The Fund’s overweights in the BBB and non-rated categories also contributed positively. |
| • | The Fund’s duration was longer than that of the benchmark throughout the period, which was also a positive contributor. |
The Fund’s notable detractors during the period
| • | Detractors from Fund performance, relative to the benchmark, during the reporting period included security selection in BBB rated issues and in housing bonds. |
| • | An underweighting of toll roads and an overweight to IDR/PCRs (corporate backed bonds) versus the benchmark also weighed on Fund performance during the period. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. Investing in derivatives is a specialized activity that involves special risks, which may result in significant losses. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2021 — October 31, 2021 |
| | Account value at the
beginning of the
period ($) | 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 | 999.50 | 1,021.24 | 3.69 | 3.73 | 0.74 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,000.90 | 1,022.24 | 2.69 | 2.72 | 0.54 |
| Class C | 1,000.00 | 1,000.00 | 997.00 | 1,018.75 | 6.17 | 6.24 | 1.24 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,000.50 | 1,022.24 | 2.69 | 2.72 | 0.54 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,001.00 | 1,022.34 | 2.59 | 2.62 | 0.52 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,001.30 | 1,022.59 | 2.35 | 2.37 | 0.47 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 7 |
Portfolio of Investments
October 31, 2021
(Percentages represent value of investments compared to net assets)
Investments in securities
| Commercial Mortgage-Backed Securities - Agency 0.4% |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Freddie Mac Multifamily Certificates |
| Series ML10 Class ACA (FHLMC) |
| 06/25/2038 | 2.046% | | 2,495,126 | 2,534,131 |
Total Commercial Mortgage-Backed Securities - Agency
(Cost $2,592,957) | 2,534,131 |
|
| Floating Rate Notes 0.0% |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Variable Rate Demand Notes 0.0% |
| State of California(a),(b) |
| Unlimited General Obligation Bonds |
| Kindergarten |
| Series 2013A2 (State Street) |
| 05/01/2034 | 0.010% | | 100,000 | 100,000 |
Total Floating Rate Notes
(Cost $100,000) | 100,000 |
|
| Municipal Bonds 93.3% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 6.6% |
| City of Fresno Airport(c) |
| Refunding Revenue Bonds |
| Series 2013B (BAM) |
| 07/01/2028 | 5.000% | | 500,000 | 536,104 |
| 07/01/2030 | 5.125% | | 1,050,000 | 1,127,986 |
| City of Los Angeles Department of Airports(c) |
| Refunding Revenue Bonds |
| Subordinated Series 2019A |
| 05/15/2049 | 5.000% | | 5,000,000 | 6,032,605 |
| Revenue Bonds |
| Los Angeles International Airport |
| Subordinated Series 2017 |
| 05/15/2041 | 5.000% | | 1,500,000 | 1,750,154 |
| Subordinated Series 2018 |
| 05/15/2048 | 5.250% | | 3,000,000 | 3,654,616 |
| Senior Series 2020C |
| 05/15/2031 | 5.000% | | 1,880,000 | 2,393,847 |
| 05/15/2050 | 4.000% | | 4,000,000 | 4,527,156 |
| Subordinated Series 2018C |
| 05/15/2044 | 5.000% | | 2,000,000 | 2,416,280 |
| County of Sacramento Airport System |
| Refunding Revenue Bonds |
| Subordinated Series 2016B |
| 07/01/2041 | 5.000% | | 5,500,000 | 6,436,835 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Norman Y Mineta San Jose International Airport SJC(c) |
| Refunding Revenue Bonds |
| Series 2021A (BAM) |
| 03/01/2032 | 5.000% | | 2,000,000 | 2,548,780 |
| 03/01/2033 | 5.000% | | 1,300,000 | 1,652,522 |
| Norman Y. Mineta San Jose International Airport(c) |
| Refunding Revenue Bonds |
| Series 2017A |
| 03/01/2047 | 5.000% | | 3,000,000 | 3,527,891 |
| San Francisco City & County Airport Commission - San Francisco International Airport(c) |
| Refunding Revenue Bonds |
| Series 2021A |
| 05/01/2035 | 5.000% | | 3,000,000 | 3,831,077 |
| SFO Fuel Co., LLC |
| Series 2019 |
| 01/01/2047 | 5.000% | | 1,000,000 | 1,197,968 |
| Revenue Bonds |
| San Francisco International Airport |
| Series 2016 |
| 05/01/2041 | 5.000% | | 1,305,000 | 1,523,942 |
| Unrefunded Revenue Bonds |
| Series 2014A |
| 05/01/2044 | 5.000% | | 6,000,000 | 6,605,732 |
| Total | 49,763,495 |
| Charter Schools 4.6% |
| California Infrastructure & Economic Development Bank(d) |
| Revenue Bonds |
| WFCS Portfolio Project |
| Series 2021 |
| 01/01/2056 | 5.000% | | 1,300,000 | 1,435,589 |
| Wonderful Foundations Charter School Portfolio Projects |
| Series 2020 |
| 01/01/2055 | 5.000% | | 2,300,000 | 2,530,538 |
| California Infrastructure & Economic Development Bank(d),(e) |
| Revenue Bonds |
| WFCS Portfolio Project |
| Subordinated Series 2021 |
| 01/01/2061 | 0.000% | | 40,000,000 | 3,063,988 |
| California Public Finance Authority |
| Revenue Bonds |
| Laverne Elementary Prep Academy Project |
| Series 2019 |
| 06/15/2039 | 5.000% | | 870,000 | 892,828 |
| 06/15/2049 | 5.000% | | 1,400,000 | 1,432,285 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California School Finance Authority(d) |
| Refunding Revenue Bonds |
| Aspire Public School |
| Series 2016 |
| 08/01/2041 | 5.000% | | 1,600,000 | 1,792,686 |
| Revenue Bonds |
| Alliance College-Ready Public Schools |
| Series 2015 |
| 07/01/2035 | 5.000% | | 3,010,000 | 3,368,741 |
| 07/01/2045 | 5.000% | | 1,705,000 | 1,890,115 |
| Aspire Public Schools |
| Series 2020A |
| 08/01/2059 | 5.000% | | 3,120,000 | 3,622,040 |
| Girls Athletic Leadership School |
| Series 2021 |
| 06/01/2051 | 4.000% | | 1,000,000 | 1,007,901 |
| 06/01/2061 | 4.000% | | 2,890,000 | 2,867,144 |
| Green Dot Public School Project |
| Series 2015A |
| 08/01/2035 | 5.000% | | 1,510,000 | 1,678,708 |
| Series 2018 |
| 08/01/2048 | 5.000% | | 1,750,000 | 2,026,207 |
| KIPP Los Angeles Projects |
| Series 2014A |
| 07/01/2044 | 5.125% | | 1,000,000 | 1,086,826 |
| Series 2015A |
| 07/01/2045 | 5.000% | | 1,000,000 | 1,109,321 |
| Kipp SoCal Public Schools |
| Series 2019A |
| 07/01/2049 | 5.000% | | 1,000,000 | 1,189,421 |
| River Springs Charter School Project |
| Series 2015 |
| 07/01/2046 | 6.375% | | 1,000,000 | 1,125,106 |
| 07/01/2046 | 6.375% | | 155,000 | 174,391 |
| Santa Clarita Valley International School Project |
| Series 2021 |
| 06/01/2051 | 4.000% | | 750,000 | 785,697 |
| 06/01/2061 | 4.000% | | 1,175,000 | 1,218,274 |
| Total | 34,297,806 |
| Disposal 1.3% |
| California Municipal Finance Authority(c) |
| Revenue Bonds |
| Waste Management, Inc. Project |
| Series 2019A (Mandatory Put 10/01/29) |
| 10/01/2044 | 2.400% | | 9,000,000 | 9,504,278 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Health Services 0.7% |
| California Municipal Finance Authority |
| Revenue Bonds |
| Clincas Del Camino Real, Inc. |
| Series 2020 |
| 03/01/2050 | 4.000% | | 5,000,000 | 5,552,273 |
| Higher Education 5.3% |
| California Educational Facilities Authority |
| Refunding Revenue Bonds |
| Loma Linda University |
| Series 2017A |
| 04/01/2047 | 5.000% | | 4,250,000 | 4,922,874 |
| Series 2018-A |
| 12/01/2044 | 5.000% | | 2,000,000 | 2,383,678 |
| University of the Pacific |
| Series 2015 |
| 11/01/2036 | 5.000% | | 2,000,000 | 2,308,959 |
| Revenue Bonds |
| Chapman University |
| Series 2015 |
| 04/01/2040 | 5.000% | | 2,500,000 | 2,819,788 |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Biola University |
| Series 2017 |
| 10/01/2039 | 5.000% | | 1,000,000 | 1,170,769 |
| California Lutheran University |
| Series 2018 |
| 10/01/2038 | 5.000% | | 300,000 | 361,082 |
| Revenue Bonds |
| Biola University |
| Series 2013 |
| 10/01/2038 | 5.000% | | 1,000,000 | 1,065,208 |
| 10/01/2042 | 5.000% | | 2,360,000 | 2,506,644 |
| National University |
| Series 2019A |
| 04/01/2040 | 5.000% | | 1,000,000 | 1,215,983 |
| 04/01/2041 | 5.000% | | 2,000,000 | 2,426,769 |
| California Public Finance Authority(d) |
| Revenue Bonds |
| California University of Science and Medicine |
| Series 2019 |
| 07/01/2054 | 6.250% | | 3,000,000 | 3,434,414 |
| California State University |
| Revenue Bonds |
| Series 2019A |
| 11/01/2049 | 5.000% | | 5,000,000 | 6,292,499 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 9 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Statewide Communities Development Authority(d) |
| Revenue Bonds |
| California Baptist University |
| Series 2014A |
| 11/01/2043 | 6.375% | | 3,000,000 | 3,276,745 |
| Lancer Plaza Project |
| Series 2013 |
| 11/01/2033 | 5.625% | | 1,400,000 | 1,512,057 |
| 11/01/2043 | 5.875% | | 1,875,000 | 2,020,772 |
| University of California |
| Refunding Revenue Bonds |
| Series 2020BE |
| 05/15/2047 | 4.000% | | 2,000,000 | 2,326,464 |
| Total | 40,044,705 |
| Hospital 13.0% |
| California Health Facilities Financing Authority |
| Refunding Revenue Bonds |
| El Camino Hospital |
| Series 2015A |
| 02/01/2040 | 5.000% | | 5,000,000 | 5,668,115 |
| Marshal Medical Center |
| Series 2020 |
| 11/01/2040 | 4.000% | | 1,000,000 | 1,161,019 |
| 11/01/2050 | 5.000% | | 2,000,000 | 2,457,766 |
| PIH Health |
| Series 2020A |
| 06/01/2050 | 4.000% | | 4,500,000 | 5,159,973 |
| Revenue Bonds |
| City of Hope Obligated Group |
| Series 2019 |
| 11/15/2045 | 4.000% | | 8,000,000 | 9,190,901 |
| El Camino Hospital |
| Series 2017 |
| 02/01/2047 | 5.000% | | 4,000,000 | 4,764,444 |
| Kaiser Permanente |
| Subordinated Series 2017A-2 |
| 11/01/2044 | 4.000% | | 7,000,000 | 8,020,568 |
| Subordinated Series 2020A-2 |
| 11/01/2051 | 4.000% | | 5,195,000 | 5,888,788 |
| St. Joseph Health System |
| Series 2013A |
| 07/01/2037 | 5.000% | | 2,000,000 | 2,153,096 |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Community Medical Centers |
| Series 2015A |
| 02/01/2040 | 5.000% | | 2,000,000 | 2,268,625 |
| Series 2017A |
| 02/01/2042 | 4.000% | | 2,000,000 | 2,220,784 |
| 02/01/2047 | 5.000% | | 2,000,000 | 2,363,241 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Public Finance Authority |
| Refunding Revenue Bonds |
| Henry Mayo Newhall Memorial Hospital |
| Series 2017 |
| 10/15/2047 | 5.000% | | 4,000,000 | 4,626,948 |
| California Statewide Communities Development Authority |
| Refunding Revenue Bonds |
| Adventist Health System |
| Series 2018 |
| 03/01/2042 | 4.000% | | 5,000,000 | 5,656,477 |
| 03/01/2048 | 5.000% | | 5,000,000 | 5,960,580 |
| Adventist Health System West |
| Series 2015 |
| 03/01/2035 | 5.000% | | 3,850,000 | 4,489,042 |
| Huntington Memorial Hospital |
| Series 2014B |
| 07/01/2044 | 5.000% | | 1,000,000 | 1,110,236 |
| John Muir Health |
| Series 2018A |
| 12/01/2053 | 5.000% | | 700,000 | 836,390 |
| Redlands Community Hospital OB |
| Series 2016 |
| 10/01/2046 | 5.000% | | 1,000,000 | 1,147,608 |
| Revenue Bonds |
| Emanate Health |
| Series 2020A |
| 04/01/2045 | 4.000% | | 1,000,000 | 1,143,623 |
| Green - Marin General Hospital Project |
| Series 2018 |
| 08/01/2038 | 5.000% | | 475,000 | 560,450 |
| 08/01/2045 | 4.000% | | 1,000,000 | 1,028,983 |
| Loma Linda University Medical Center |
| Series 2014 |
| 12/01/2054 | 5.500% | | 2,660,000 | 3,008,173 |
| Methodist Hospital of Southern California |
| Series 2018 |
| 01/01/2048 | 5.000% | | 7,500,000 | 8,785,470 |
| California Statewide Communities Development Authority(d) |
| Revenue Bonds |
| Loma Linda University Medical Center |
| Series 2018 |
| 12/01/2058 | 5.500% | | 3,000,000 | 3,639,853 |
| City of Upland |
| Refunding Certificate of Participation |
| San Antonio Regional Hospital |
| Series 2017 |
| 01/01/2042 | 4.000% | | 3,000,000 | 3,310,295 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Washington Township Health Care District |
| Refunding Revenue Bonds |
| Series 2019A |
| 07/01/2036 | 5.000% | | 500,000 | 609,888 |
| 07/01/2048 | 4.000% | | 500,000 | 554,671 |
| Total | 97,786,007 |
| Human Service Provider 0.8% |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Harbor Regional Center Project |
| Series 2015 |
| 11/01/2039 | 5.000% | | 2,000,000 | 2,303,994 |
| Inland Regional Center Project |
| Series 2015 |
| 06/15/2045 | 5.000% | | 3,500,000 | 3,957,440 |
| Total | 6,261,434 |
| Joint Power Authority 0.5% |
| Southern California Public Power Authority |
| Refunding Revenue Bonds |
| Milford Wind Corridor Phase II Project Green Bonds |
| Series 2021 |
| 07/01/2029 | 5.000% | | 600,000 | 777,090 |
| 07/01/2030 | 5.000% | | 800,000 | 1,054,378 |
| 07/01/2031 | 5.000% | | 1,200,000 | 1,610,572 |
| Total | 3,442,040 |
| Local Appropriation 1.3% |
| City of Modesto |
| Certificate of Participation |
| Community Center Refinancing Project |
| Series 1993A (AMBAC) |
| 11/01/2023 | 5.000% | | 840,000 | 845,108 |
| Los Angeles County Public Works Financing Authority |
| Revenue Bonds |
| Green Bonds - LACMA Building for the Permanent Collection Project |
| Series 2020A |
| 12/01/2043 | 4.000% | | 1,500,000 | 1,765,256 |
| 12/01/2045 | 5.000% | | 4,000,000 | 5,042,398 |
| Sacramento City Schools Joint Powers Financing Authority |
| Refunding Revenue Bonds |
| Series 2006A (BAM) |
| 03/01/2040 | 5.000% | | 2,000,000 | 2,172,829 |
| Total | 9,825,591 |
| Local General Obligation 12.8% |
| Alameda Unified School District-Alameda County |
| Unlimited General Obligation Bonds |
| Election of 2014 |
| Series 2019C |
| 08/01/2042 | 3.000% | | 1,000,000 | 1,052,560 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Carlsbad Unified School District |
| Unlimited General Obligation Bonds |
| Election of 2018 |
| Series 2019A |
| 08/01/2048 | 3.125% | | 2,750,000 | 2,914,620 |
| Series 2021B |
| 08/01/2046 | 3.000% | | 3,175,000 | 3,372,633 |
| 08/01/2050 | 2.375% | | 3,000,000 | 2,863,106 |
| Cerritos Community College District |
| Unlimited General Obligation Bonds |
| Series 2019C |
| 08/01/2044 | 3.000% | | 5,000,000 | 5,289,720 |
| Chaffey Joint Union High School District(e) |
| Unlimited General Obligation Bonds |
| Series 2019D |
| 08/01/2034 | 0.000% | | 500,000 | 365,125 |
| 08/01/2035 | 0.000% | | 660,000 | 463,800 |
| 08/01/2036 | 0.000% | | 1,000,000 | 675,511 |
| Chino Valley Unified School District |
| Limited General Obligation Bonds |
| Series 2020B |
| 08/01/2055 | 5.000% | | 1,000,000 | 1,257,720 |
| Chula Vista Elementary School District(e) |
| Unlimited General Obligation Bonds |
| BAN Series 2019 |
| 08/01/2023 | 0.000% | | 1,600,000 | 1,588,140 |
| Coast Community College District(e) |
| Unlimited General Obligation Bonds |
| Election of 2012 |
| Series 2019F |
| 08/01/2041 | 0.000% | | 2,125,000 | 1,240,774 |
| 08/01/2043 | 0.000% | | 7,250,000 | 3,922,177 |
| Compton Unified School District(e) |
| Unlimited General Obligation Bonds |
| Compton Unified School District |
| Series 2019B (BAM) |
| 06/01/2036 | 0.000% | | 2,750,000 | 1,858,808 |
| Conejo Valley Unified School District(e) |
| Unlimited General Obligation Bonds |
| Series 2015A (AGM) |
| 08/01/2029 | 0.000% | | 1,650,000 | 1,300,694 |
| 08/01/2030 | 0.000% | | 1,000,000 | 746,186 |
| Corona-Norco Unified School District |
| Unlimited General Obligation Bonds |
| Series 2019C |
| 08/01/2049 | 4.000% | | 1,500,000 | 1,710,741 |
| East Side Union High School District |
| Unlimited General Obligation Refunding Bonds |
| Series 2003B (NPFGC) |
| 08/01/2026 | 5.250% | | 2,010,000 | 2,180,623 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 11 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| El Monte Union High School District |
| Unlimited General Obligation Bonds |
| Series 2019A |
| 06/01/2044 | 4.000% | | 2,750,000 | 3,113,124 |
| El Monte Union High School District(e) |
| Unlimited General Obligation Bonds |
| Series 2021E |
| 06/01/2046 | 0.000% | | 2,765,000 | 1,415,075 |
| Fremont Union High School District |
| Unlimited General Obligation Bonds |
| Series 2021A |
| 08/01/2037 | 3.000% | | 2,045,000 | 2,238,748 |
| 08/01/2038 | 3.000% | | 5,615,000 | 6,126,011 |
| Fresno Unified School District |
| Unlimited General Obligation Bonds |
| Series 2021A |
| 08/01/2045 | 4.000% | | 1,000,000 | 1,156,326 |
| Glendale Community College District(e) |
| Unlimited General Obligation Bonds |
| Series 2020B |
| 08/01/2044 | 0.000% | | 1,550,000 | 802,804 |
| 02/01/2045 | 0.000% | | 1,250,000 | 635,173 |
| Glendale Unified School District(e) |
| Unlimited General Obligation Refunding Bonds |
| Series 2015B |
| 09/01/2031 | 0.000% | | 1,900,000 | 1,420,532 |
| 09/01/2032 | 0.000% | | 1,000,000 | 711,757 |
| Long Beach Community College District |
| Unlimited General Obligation Bonds |
| Series 2019C |
| 08/01/2045 | 4.000% | | 725,000 | 833,524 |
| Long Beach Unified School District(e) |
| Unlimited General Obligation Bonds |
| Series 2015D-1 |
| 08/01/2032 | 0.000% | | 1,500,000 | 1,067,951 |
| Los Angeles Unified School District |
| Unlimited General Obligation Bonds |
| Series 2020RYQ |
| 07/01/2035 | 5.000% | | 1,250,000 | 1,610,655 |
| 07/01/2044 | 4.000% | | 6,000,000 | 6,974,612 |
| Unlimited General Obligation Refunding Bonds |
| Series 2021A |
| 07/01/2032 | 4.000% | | 6,000,000 | 7,357,447 |
| Manteca Unified School District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation-Election of 2004 |
| Series 2006 (NPFGC) |
| 08/01/2032 | 0.000% | | 5,440,000 | 4,356,233 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Monterey Peninsula Community College District(e) |
| Unlimited General Obligation Refunding Bonds |
| Series 2016 |
| 08/01/2032 | 0.000% | | 3,500,000 | 2,694,205 |
| 08/01/2033 | 0.000% | | 2,000,000 | 1,480,802 |
| Mount San Antonio Community College District(e) |
| Unlimited General Obligation Bonds |
| Election 2008 |
| Series 2021E |
| 08/01/2046 | 0.000% | | 8,230,000 | 4,296,514 |
| Pomona Unified School District(e) |
| Unlimited General Obligation Bonds |
| Series 2016G (AGM) |
| 08/01/2033 | 0.000% | | 1,000,000 | 726,029 |
| 08/01/2034 | 0.000% | | 1,610,000 | 1,118,171 |
| Poway Unified School District(e) |
| Unlimited General Obligation Bonds |
| Improvement District No. 2007-1-A |
| Series 2009 |
| 08/01/2030 | 0.000% | | 2,295,000 | 1,987,070 |
| San Diego Unified School District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation Bonds |
| Series 2016I |
| 07/01/2034 | 0.000% | | 5,000,000 | 3,350,115 |
| San Diego Unified School District |
| Unlimited General Obligation Bonds |
| Series 2019B |
| 07/01/2048 | 3.250% | | 5,000,000 | 5,353,841 |
| Sierra Kings Health Care District |
| Unlimited General Obligation Refunding Bonds |
| Series 2015 |
| 08/01/2037 | 5.000% | | 1,500,000 | 1,670,261 |
| Simi Valley Unified School District |
| Refunding Certificate of Participation |
| Capital Improvement Projects |
| Series 1998 (AMBAC) |
| 08/01/2022 | 5.250% | | 235,000 | 239,305 |
| Val Verde Unified School District |
| Unlimited General Obligation Bonds |
| Series 2020A (BAM) |
| 08/01/2046 | 4.000% | | 700,000 | 796,759 |
| Total | 96,335,982 |
| Multi-Family 7.4% |
| California Community Housing Agency(d) |
| Revenue Bonds |
| Junior Bonds |
| Series 2021A-2 |
| 02/01/2043 | 4.000% | | 3,000,000 | 3,148,153 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Mira Vista Hills Apartments |
| Series 2021 |
| 02/01/2056 | 4.000% | | 4,000,000 | 4,147,047 |
| The Arbors |
| Series 2020A |
| 08/01/2050 | 5.000% | | 3,500,000 | 3,900,846 |
| California Housing Finance |
| Revenue Bonds |
| Series 2019-2 Class A |
| 03/20/2033 | 4.000% | | 4,664,239 | 5,461,072 |
| California Housing Finance Agency |
| Revenue Bonds |
| Series 2021-1A |
| 11/20/2035 | 3.500% | | 6,500,483 | 7,491,537 |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Caritas Projects |
| Series 2017A |
| 08/15/2042 | 4.000% | | 1,000,000 | 1,081,082 |
| Revenue Bonds |
| Bowles Hall Foundation |
| Series 2015A |
| 06/01/2050 | 5.000% | | 1,250,000 | 1,391,305 |
| Caritas Affordable Housing |
| Series 2014 |
| 08/15/2049 | 5.250% | | 3,500,000 | 3,761,206 |
| Subordinated Series 2014 |
| 08/15/2049 | 5.875% | | 1,000,000 | 1,061,372 |
| California Statewide Communities Development Authority |
| Revenue Bonds |
| Lancer Educational Student Housing Project |
| Series 2019 |
| 06/01/2051 | 5.000% | | 1,440,000 | 1,680,676 |
| CMFA Special Finance Agency VIII(d) |
| Revenue Bonds |
| Elan Huntington Beach |
| Series 2021 |
| 08/01/2047 | 4.000% | | 2,000,000 | 2,066,852 |
| CSCDA Community Improvement Authority(d) |
| Revenue Bonds |
| Jefferson-Anaheim Social Bonds |
| Series 2021 |
| 08/01/2056 | 3.125% | | 2,500,000 | 2,292,250 |
| Parallel-Anaheim Social Bonds |
| Series 2021 |
| 08/01/2056 | 4.000% | | 1,760,000 | 1,831,112 |
| Pasadena Portfolio Social Bonds |
| Series 2021 |
| 12/01/2056 | 4.000% | | 1,000,000 | 1,031,832 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Social Bonds |
| Series 2021A-2 |
| 10/01/2056 | 4.000% | | 3,000,000 | 3,106,838 |
| The Link - Glendale Social Bonds |
| Subordinated Series 2021 |
| 07/01/2056 | 4.000% | | 3,500,000 | 3,604,551 |
| Union South Bay Social Bonds |
| Series 2021 |
| 07/01/2056 | 4.000% | | 2,000,000 | 2,064,731 |
| CSCDA Community Improvement Authority |
| Revenue Bonds |
| Pasadena Portfolio Social Bonds |
| Series 2021 |
| 12/01/2056 | 3.000% | | 2,000,000 | 1,848,372 |
| Hastings Campus Housing Finance Authority |
| Revenue Bonds |
| Green Bonds |
| Series 2020A |
| 07/01/2061 | 5.000% | | 4,000,000 | 4,579,949 |
| Total | 55,550,783 |
| Municipal Power 1.6% |
| City of Vernon Electric System |
| Revenue Bonds |
| Series 2012A |
| 08/01/2030 | 5.000% | | 1,000,000 | 1,025,100 |
| Puerto Rico Electric Power Authority(f),(g) |
| Revenue Bonds |
| Series 2012A |
| 07/01/2042 | 0.000% | | 4,250,000 | 4,154,375 |
| Turlock Irrigation District |
| Refunding Revenue Bonds |
| Series 2020 |
| 01/01/2039 | 5.000% | | 2,000,000 | 2,534,138 |
| 01/01/2041 | 5.000% | | 3,130,000 | 3,949,425 |
| Total | 11,663,038 |
| Other Bond Issue 0.9% |
| City of Long Beach Marina System |
| Revenue Bonds |
| Series 2015 |
| 05/15/2040 | 5.000% | | 2,000,000 | 2,189,015 |
| Federal Home Loan Mortgage Corp. Multifamily ML Certificates |
| Series 2019-ML05 |
| 11/25/2033 | 3.350% | | 3,881,223 | 4,318,976 |
| Total | 6,507,991 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 13 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Ports 0.7% |
| Port of Los Angeles(c) |
| Refunding Revenue Bonds |
| Series 2014A |
| 08/01/2044 | 5.000% | | 5,000,000 | 5,495,769 |
| Prepaid Gas 0.2% |
| M-S-R Energy Authority |
| Revenue Bonds |
| Series 2009B |
| 11/01/2034 | 7.000% | | 1,000,000 | 1,499,189 |
| Recreation 0.2% |
| California Infrastructure & Economic Development Bank |
| Refunding Revenue Bonds |
| Los Angeles County Museum of Natural History |
| Series 2020 |
| 07/01/2050 | 4.000% | | 1,500,000 | 1,702,858 |
| Refunded / Escrowed 4.0% |
| California School Finance Authority(d) |
| Prerefunded 08/01/25 Revenue Bonds |
| Aspire Public School |
| Series 2016 |
| 08/01/2041 | 5.000% | | 150,000 | 174,976 |
| California State Public Works Board |
| Prerefunded 11/01/22 Revenue Bonds |
| Various Capital Projects |
| Series 2012G |
| 11/01/2037 | 5.000% | | 6,825,000 | 7,153,218 |
| Prerefunded 11/13/21 Revenue Bonds |
| Various Capital Projects |
| Series 2011A |
| 10/01/2031 | 5.125% | | 5,000,000 | 5,007,501 |
| California Statewide Communities Development Authority |
| Prerefunded 10/01/24 Revenue Bonds |
| Henry Mayo Newhall Memorial Hospital |
| Series 2014A (AGM) |
| 10/01/2043 | 5.250% | | 3,120,000 | 3,543,858 |
| Prerefunded 12/01/23 Revenue Bonds |
| Covenant Retirement Communities, Inc. |
| Series 2013 |
| 12/01/2036 | 5.625% | | 2,000,000 | 2,217,324 |
| Chino Public Financing Authority |
| Prerefunded 09/01/22 Special Tax Bonds |
| Series 2012 |
| 09/01/2030 | 5.000% | | 2,500,000 | 2,597,750 |
| 09/01/2038 | 5.000% | | 625,000 | 649,437 |
| City of La Verne |
| Prerefunded 05/15/22 Certificate of Participation |
| Brethren Hillcrest Homes |
| Series 2014 |
| 05/15/2036 | 5.000% | | 1,100,000 | 1,139,075 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Pomona |
| Refunding Revenue Bonds |
| Series 1990B Escrowed to Maturity (GNMA / FHLMC) |
| 08/01/2023 | 7.500% | | 220,000 | 235,368 |
| City of Redding Electric System(h) |
| Revenue Bonds |
| Series 1992 Escrowed to Maturity (NPFGC) |
| 07/01/2022 | 12.310% | | 55,000 | 59,271 |
| Corona-Norco Unified School District |
| Prerefunded 09/01/23 Special Tax Bonds |
| Community Facilities District #98-1 |
| Series 2013 |
| 09/01/2032 | 5.000% | | 1,300,000 | 1,412,594 |
| Oakland Unified School District/Alameda County |
| Prerefunded 08/01/25 Unlimited General Obligation Bonds |
| Series 2015A |
| 08/01/2040 | 5.000% | | 1,000,000 | 1,165,535 |
| Riverside Community College District(e) |
| Prerefunded 02/01/25 Unlimited General Obligation Bonds |
| Election of 2004 |
| Series 2015E |
| 08/01/2030 | 0.000% | | 600,000 | 460,578 |
| 08/01/2031 | 0.000% | | 1,000,000 | 728,606 |
| Riverside County Transportation Commission |
| Prerefunded 06/01/23 Revenue Bonds |
| Senior Lien |
| Series 2013A |
| 06/01/2048 | 5.750% | | 1,500,000 | 1,627,453 |
| Union City Community Redevelopment Agency |
| Prerefunded 12/01/21 Tax Allocation Bonds |
| Lien-Community Redevelopment Project |
| Subordinated Series 2011 |
| 12/01/2033 | 6.875% | | 1,500,000 | 1,508,009 |
| Total | 29,680,553 |
| Resource Recovery 0.0% |
| California Municipal Finance Authority(c),(d),(g) |
| Revenue Bonds |
| UTS Renewable Energy-Waste Water Facilities |
| Series 2011 |
| 12/01/2032 | 0.000% | | 2,745,000 | 54,900 |
| Retirement Communities 3.8% |
| California Health Facilities Financing Authority |
| Refunding Revenue Bonds |
| Northern California Presbyterian Homes |
| Series 2015 |
| 07/01/2039 | 5.000% | | 2,565,000 | 2,898,508 |
| 07/01/2044 | 5.000% | | 700,000 | 788,007 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| HumanGood Obligation Group |
| Series 2019A |
| 10/01/2044 | 4.000% | | 2,500,000 | 2,778,338 |
| Revenue Bonds |
| HumanGood California Obligated Group |
| Series 2021 |
| 10/01/2046 | 4.000% | | 2,000,000 | 2,302,940 |
| 10/01/2049 | 4.000% | | 2,500,000 | 2,862,736 |
| Paradise Vally Estates Project |
| Series 2019 |
| 01/01/2043 | 5.000% | | 3,000,000 | 3,621,637 |
| California Public Finance Authority(d) |
| Revenue Bonds |
| Enso Village Project - Green Bonds |
| Series 2021 |
| 11/15/2046 | 5.000% | | 1,000,000 | 1,133,744 |
| 11/15/2056 | 5.000% | | 1,000,000 | 1,128,436 |
| California Statewide Communities Development Authority(d) |
| Refunding Revenue Bonds |
| 899 Charleston Project |
| Series 2014A |
| 11/01/2049 | 5.375% | | 1,885,000 | 2,006,284 |
| California Statewide Communities Development Authority |
| Refunding Revenue Bonds |
| American Baptist Homes West |
| Series 2015 |
| 10/01/2045 | 5.000% | | 3,155,000 | 3,499,945 |
| Front Porch Communities & Services |
| Series 2017 |
| 04/01/2047 | 4.000% | | 1,750,000 | 1,914,810 |
| 04/01/2047 | 5.000% | | 250,000 | 291,822 |
| Series 2021 |
| 04/01/2046 | 3.000% | | 1,000,000 | 1,021,949 |
| 04/01/2051 | 3.000% | | 1,250,000 | 1,267,244 |
| Revenue Bonds |
| Eskaton Properties, Inc. |
| Series 2012 |
| 11/15/2034 | 5.250% | | 1,250,000 | 1,290,920 |
| Total | 28,807,320 |
| Sales Tax 3.0% |
| Orange County Local Transportation Authority |
| Refunding Revenue Bonds |
| Series 2019 |
| 02/15/2035 | 5.000% | | 4,000,000 | 5,026,210 |
| Puerto Rico Sales Tax Financing Corp.(e),(f) |
| Revenue Bonds |
| Series 2018A-1 |
| 07/01/2046 | 0.000% | | 22,400,000 | 7,274,355 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Puerto Rico Sales Tax Financing Corp.(f) |
| Revenue Bonds |
| Series 2019A1 |
| 07/01/2058 | 5.000% | | 6,000,000 | 6,773,686 |
| San Francisco Bay Area Rapid Transit District |
| Revenue Bonds |
| Sales Tax |
| Series 2019A |
| 07/01/2039 | 4.000% | | 1,250,000 | 1,430,002 |
| San Joaquin County Transportation Authority |
| Revenue Bonds |
| Measure K |
| Series 2019 |
| 03/01/2039 | 5.000% | | 1,500,000 | 1,870,177 |
| Total | 22,374,430 |
| Special Non Property Tax 0.3% |
| Puerto Rico Highway & Transportation Authority(f),(g) |
| Revenue Bonds |
| Series 2007M |
| 07/01/2046 | 0.000% | | 555,000 | 309,412 |
| Unrefunded Revenue Bonds |
| Series 2003G |
| 07/01/2042 | 0.000% | | 2,780,000 | 1,549,850 |
| Total | 1,859,262 |
| Special Property Tax 5.1% |
| Bakersfield Redevelopment Agency |
| Tax Allocation Bonds |
| Old Town Kern Pioneer |
| Series 2009A |
| 08/01/2029 | 7.500% | | 1,145,000 | 1,149,554 |
| Southeast Bakersfield |
| Series 2009B |
| 08/01/2029 | 7.250% | | 535,000 | 537,116 |
| Carson Public Financing Authority |
| Revenue Bonds |
| Series 2019 |
| 09/02/2030 | 5.000% | | 1,000,000 | 1,265,605 |
| Cerritos Public Financing Authority |
| Tax Allocation Bonds |
| Los Coyotes Redevelopment Project Loan |
| Series 1993A (AMBAC) |
| 11/01/2023 | 6.500% | | 2,000,000 | 2,208,745 |
| Chula Vista Municipal Financing Authority |
| Refunding Special Tax Bonds |
| Series 2015A |
| 09/01/2035 | 5.000% | | 2,460,000 | 2,786,393 |
| 09/01/2036 | 5.000% | | 2,435,000 | 2,754,550 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 15 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Carson |
| Special Assessment Bonds |
| Assessment District No. 92-1 |
| Series 1992 |
| 09/02/2022 | 7.375% | | 15,000 | 15,297 |
| City of Dublin |
| Special Tax Bonds |
| Improvement Area No. 3 |
| Series 2021 |
| 09/01/2045 | 4.000% | | 850,000 | 945,429 |
| 09/01/2051 | 4.000% | | 865,000 | 956,824 |
| City of Irvine |
| Special Tax Bonds |
| Community Facilities District 2013-3 |
| Series 2014 |
| 09/01/2039 | 5.000% | | 750,000 | 824,654 |
| 09/01/2044 | 5.000% | | 1,025,000 | 1,126,354 |
| City of Yucaipa |
| Refunding Special Tax Bonds |
| Community Facilities District No. 98-1 |
| Series 2011 |
| 09/01/2030 | 5.375% | | 1,500,000 | 1,510,107 |
| Elk Grove Unified School District |
| Refunding Special Tax Bonds |
| Community Facilities District No. 1 |
| Series 1995 (AMBAC) |
| 12/01/2024 | 6.500% | | 1,700,000 | 1,852,951 |
| Inglewood Redevelopment Agency Successor Agency |
| Refunding Tax Allocation Bonds |
| Merged Redevelopment Project |
| Series 1998A (AMBAC) |
| 05/01/2023 | 5.250% | | 530,000 | 561,854 |
| Inland Valley Development Agency |
| Refunding Tax Allocation Bonds |
| Series 2014A |
| 09/01/2044 | 5.000% | | 5,000,000 | 5,425,327 |
| Irvine Unified School District |
| Special Tax Bonds |
| Community Facilities District Number 09-1 |
| Series 2019A |
| 09/01/2038 | 4.000% | | 275,000 | 317,281 |
| 09/01/2040 | 4.000% | | 690,000 | 792,421 |
| Jurupa Public Financing Authority |
| Refunding Special Tax Bonds |
| Series 2014A |
| 09/01/2042 | 5.000% | | 1,000,000 | 1,109,086 |
| Mountain View Shoreline Regional Park Community |
| Tax Allocation Bonds |
| Series 2011A |
| 08/01/2035 | 5.625% | | 1,300,000 | 1,304,536 |
| 08/01/2040 | 5.750% | | 2,000,000 | 2,007,073 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Pittsburg Successor Agency Redevelopment Agency(e) |
| Tax Allocation Bonds |
| Los Medanos Community Development Project |
| Series 1999 (AMBAC) |
| 08/01/2024 | 0.000% | | 2,100,000 | 2,067,628 |
| Poway Unified School District Public Financing Authority |
| Special Tax Refunding Bonds |
| Series 2015B (BAM) |
| 09/01/2035 | 5.000% | | 1,400,000 | 1,618,746 |
| San Francisco City & County Redevelopment Agency |
| Tax Allocation Bonds |
| Mission Bay South Redevelopment Project |
| Series 2014A |
| 08/01/2043 | 5.000% | | 1,000,000 | 1,106,873 |
| Santa Monica Redevelopment Agency |
| Tax Allocation Bonds |
| Earthquake Recovery Redevelopment |
| Series 2011 |
| 07/01/2036 | 5.875% | | 1,250,000 | 1,261,379 |
| Transbay Joint Powers Authority |
| Senior Tax Allocation Bonds |
| Green Bonds |
| Series 2020A |
| 10/01/2045 | 5.000% | | 1,000,000 | 1,237,658 |
| 10/01/2049 | 5.000% | | 1,000,000 | 1,232,936 |
| Total | 37,976,377 |
| State Appropriated 2.0% |
| California State Public Works Board(i) |
| Refunding Revenue Bonds |
| Various Purpose |
| Series 2022A |
| 08/01/2035 | 5.000% | | 3,750,000 | 4,815,520 |
| California State Public Works Board |
| Revenue Bonds |
| Judicial Council Projects |
| Series 2013A |
| 03/01/2038 | 5.000% | | 2,500,000 | 2,648,789 |
| Series 2014B |
| 10/01/2039 | 5.000% | | 1,000,000 | 1,120,963 |
| Various Capital Projects |
| Series 2020B |
| 03/01/2045 | 4.000% | | 1,875,000 | 2,155,733 |
| Various Correctional Facilities |
| Series 2014A |
| 09/01/2039 | 5.000% | | 3,895,000 | 4,352,570 |
| Total | 15,093,575 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| State General Obligation 7.3% |
| Commonwealth of Puerto Rico(f),(g) |
| Unlimited General Obligation Refunding & Public Improvement Bonds |
| Series 2014A |
| 07/01/2035 | 0.000% | | 4,000,000 | 3,520,000 |
| State of California |
| Unlimited General Obligation Bonds |
| Construction Bonds |
| Series 2019 |
| 10/01/2049 | 5.000% | | 2,000,000 | 2,503,455 |
| Series 2019 |
| 11/01/2029 | 5.000% | | 8,000,000 | 10,360,116 |
| 04/01/2045 | 3.250% | | 3,650,000 | 3,922,061 |
| Various Purpose |
| Series 2020 |
| 03/01/2036 | 5.000% | | 1,000,000 | 1,279,045 |
| 03/01/2046 | 4.000% | | 1,000,000 | 1,155,753 |
| Various Purpose - Bid Group A |
| Series 2018 |
| 10/01/2048 | 5.000% | | 10,000,000 | 12,299,592 |
| Unlimited General Obligation Refunding Bonds |
| Series 2019 |
| 04/01/2028 | 5.000% | | 4,000,000 | 5,018,787 |
| Series 2020 |
| 03/01/2035 | 5.000% | | 2,000,000 | 2,566,282 |
| Series 2021 |
| 12/01/2028 | 5.000% | | 600,000 | 764,582 |
| 12/01/2029 | 5.000% | | 1,500,000 | 1,945,829 |
| Various Purpose |
| Series 2019 |
| 04/01/2032 | 5.000% | | 7,000,000 | 9,461,420 |
| Unrefunded Unlimited General Obligation Bonds |
| Series 2004 |
| 04/01/2029 | 5.300% | | 2,000 | 2,008 |
| Total | 54,798,930 |
| Tobacco 3.6% |
| California County Tobacco Securitization Agency(e) |
| Refunding Revenue Bonds |
| Capital Allocation |
| Subordinated Series 2020B-2 |
| 06/01/2055 | 0.000% | | 17,780,000 | 3,392,885 |
| Sonoma County Securitization Corp. |
| Series 2020 |
| 06/01/2055 | 0.000% | | 10,000,000 | 2,382,644 |
| Golden State Tobacco Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2018A-1 |
| 06/01/2047 | 5.000% | | 4,000,000 | 4,095,813 |
| 06/01/2047 | 5.250% | | 1,500,000 | 1,538,559 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2018A-2 |
| 06/01/2047 | 5.000% | | 6,900,000 | 7,065,269 |
| Tobacco Securitization Authority of Northern California(e) |
| Refunding Revenue Bonds |
| Sacramento County Tobacco Securitization Corp. Senior Bonds |
| Series 2021 |
| 06/01/2060 | 0.000% | | 5,000,000 | 1,103,479 |
| Tobacco Securitization Authority of Southern California |
| Refunding Revenue Bonds |
| San Diego County Tobacco Asset Securitization Corp. |
| Series 2019 |
| 06/01/2048 | 5.000% | | 4,890,000 | 5,850,260 |
| Tobacco Securitization Authority of Southern California(e) |
| Refunding Revenue Bonds |
| San Diego County Tobacco Asset Securitization Corp. |
| Series 2019 |
| 06/01/2054 | 0.000% | | 7,000,000 | 1,309,893 |
| Total | 26,738,802 |
| Turnpike / Bridge / Toll Road 3.3% |
| Foothill-Eastern Transportation Corridor Agency |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2021A |
| 01/15/2046 | 4.000% | | 2,914,000 | 3,308,759 |
| Subordinated Series 2019B-2 |
| 01/15/2053 | 3.500% | | 5,000,000 | 5,461,156 |
| Foothill-Eastern Transportation Corridor Agency(e) |
| Refunding Revenue Bonds |
| Series 2015 |
| 01/15/2033 | 0.000% | | 5,000,000 | 3,738,472 |
| Riverside County Transportation Commission |
| Refunding Revenue Bonds |
| RCTC 91 Express Lanes |
| Series 2021 |
| 06/01/2046 | 4.000% | | 525,000 | 603,103 |
| Riverside County Transportation Commission(e) |
| Revenue Bonds |
| Capital Appreciation-Senior Lien |
| Series 2013B |
| 06/01/2032 | 0.000% | | 2,055,000 | 1,636,820 |
| 06/01/2033 | 0.000% | | 2,940,000 | 2,278,750 |
| Senior Lien |
| Series 2013B |
| 06/01/2029 | 0.000% | | 2,500,000 | 2,172,494 |
| San Joaquin Hills Transportation Corridor Agency |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2014A |
| 01/15/2044 | 5.000% | | 5,000,000 | 5,567,952 |
| Total | 24,767,506 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 17 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Water & Sewer 3.0% |
| City of Riverside Sewer |
| Refunding Revenue Bonds |
| Series 2015A |
| 08/01/2040 | 5.000% | | 3,185,000 | 3,655,897 |
| City of Tulare Sewer |
| Refunding Revenue Bonds |
| Series 2015 (AGM) |
| 11/15/2041 | 5.000% | | 2,000,000 | 2,314,119 |
| Los Angeles Department of Water & Power Water System |
| Refunding Revenue Bonds |
| Series 2021B |
| 07/01/2046 | 5.000% | | 5,000,000 | 6,402,469 |
| Mountain House Public Financing Authority |
| Revenue Bonds |
| Green Bonds |
| Series 2020A (BAM) |
| 12/01/2055 | 4.000% | | 4,500,000 | 5,103,175 |
| State of California Department of Water Resources |
| Revenue Bonds |
| Central Valley Project Water System |
| Series 2021 |
| 12/01/2035 | 4.000% | | 4,000,000 | 4,944,036 |
| Total | 22,419,696 |
Total Municipal Bonds
(Cost $662,847,833) | 699,804,590 |
| Money Market Funds 5.9% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.010%(j) | 262,837 | 262,810 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.006%(j) | 43,924,777 | 43,924,777 |
Total Money Market Funds
(Cost $44,187,604) | 44,187,587 |
Total Investments in Securities
(Cost: $709,728,394) | 746,626,308 |
| Other Assets & Liabilities, Net | | 3,223,416 |
| Net Assets | 749,849,724 |
At October 31, 2021, securities and/or cash totaling $532,000 were pledged as collateral.
Investments in derivatives
| Short futures contracts |
| Description | Number of
contracts | Expiration
date | Trading
currency | Notional
amount | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
| U.S. Treasury 10-Year Note | (180) | 12/2021 | USD | (23,526,563) | 67,203 | — |
| U.S. Treasury 10-Year Note | (200) | 12/2021 | USD | (26,140,625) | — | (47,275) |
| Total | | | | | 67,203 | (47,275) |
Notes to Portfolio of Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of October 31, 2021. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At October 31, 2021, the total value of these securities amounted to $77,549,086, which represents 10.34% of total net assets. |
| (e) | Zero coupon bond. |
| (f) | 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 October 31, 2021, the total value of these securities amounted to $23,581,678, which represents 3.14% of total net assets. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
Notes to Portfolio of Investments (continued)
| (g) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At October 31, 2021, the total value of these securities amounted to $9,588,537, which represents 1.28% of total net assets. |
| (h) | Inverse floating rate security issued by a tender option bond (TOB) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association (SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. The interest rate shown was the current rate as of October 31, 2021. |
| (i) | Represents a security purchased on a when-issued basis. |
| (j) | The rate shown is the seven-day current annualized yield at October 31, 2021. |
Abbreviation Legend
| ACA | ACA Financial Guaranty Corporation |
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| FHLMC | Federal Home Loan Mortgage Corporation |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
Currency Legend
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 19 |
Portfolio of Investments (continued)
October 31, 2021
Fair value measurements (continued)
The following table is a summary of the inputs used to value the Fund’s investments at October 31, 2021:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Commercial Mortgage-Backed Securities - Agency | — | 2,534,131 | — | 2,534,131 |
| Floating Rate Notes | — | 100,000 | — | 100,000 |
| Municipal Bonds | — | 699,804,590 | — | 699,804,590 |
| Money Market Funds | 44,187,587 | — | — | 44,187,587 |
| Total Investments in Securities | 44,187,587 | 702,438,721 | — | 746,626,308 |
| Investments in Derivatives | | | | |
| Asset | | | | |
| Futures Contracts | 67,203 | — | — | 67,203 |
| Liability | | | | |
| Futures Contracts | (47,275) | — | — | (47,275) |
| Total | 44,207,515 | 702,438,721 | — | 746,646,236 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
Derivative instruments are valued at unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Statement of Assets and Liabilities
October 31, 2021
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $709,728,394) | $746,626,308 |
| Cash | 39,012 |
| Margin deposits on: | |
| Futures contracts | 532,000 |
| Receivable for: | |
| Investments sold | 5,123 |
| Capital shares sold | 2,289,095 |
| Interest | 7,242,323 |
| Variation margin for futures contracts | 17,812 |
| Expense reimbursement due from Investment Manager | 127 |
| Prepaid expenses | 8,772 |
| Trustees’ deferred compensation plan | 144,359 |
| Total assets | 756,904,931 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 4,663,500 |
| Capital shares purchased | 651,648 |
| Distributions to shareholders | 1,473,176 |
| Management services fees | 9,229 |
| Distribution and/or service fees | 2,271 |
| Transfer agent fees | 43,962 |
| Compensation of board members | 40,761 |
| Compensation of chief compliance officer | 13 |
| Other expenses | 26,288 |
| Trustees’ deferred compensation plan | 144,359 |
| Total liabilities | 7,055,207 |
| Net assets applicable to outstanding capital stock | $749,849,724 |
| Represented by | |
| Paid in capital | 714,236,557 |
| Total distributable earnings (loss) | 35,613,167 |
| Total - representing net assets applicable to outstanding capital stock | $749,849,724 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 21 |
Statement of Assets and Liabilities (continued)
October 31, 2021
| Class A | |
| Net assets | $346,280,150 |
| Shares outstanding | 11,141,150 |
| Net asset value per share | $31.08 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $32.04 |
| Advisor Class | |
| Net assets | $6,418,458 |
| Shares outstanding | 206,338 |
| Net asset value per share | $31.11 |
| Class C | |
| Net assets | $19,828,206 |
| Shares outstanding | 637,924 |
| Net asset value per share | $31.08 |
| Institutional Class | |
| Net assets | $363,917,146 |
| Shares outstanding | 11,704,074 |
| Net asset value per share | $31.09 |
| Institutional 2 Class | |
| Net assets | $2,764,957 |
| Shares outstanding | 88,803 |
| Net asset value per share | $31.14 |
| Institutional 3 Class | |
| Net assets | $10,640,807 |
| Shares outstanding | 340,439 |
| Net asset value per share | $31.26 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Statement of Operations
Year Ended October 31, 2021
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $2,682 |
| Interest | 21,171,807 |
| Total income | 21,174,489 |
| Expenses: | |
| Management services fees | 3,108,218 |
| Distribution and/or service fees | |
| Class A | 852,859 |
| Class C | 220,622 |
| Transfer agent fees | |
| Class A | 259,057 |
| Advisor Class | 4,259 |
| Class C | 16,739 |
| Institutional Class | 231,914 |
| Institutional 2 Class | 1,526 |
| Institutional 3 Class | 664 |
| Compensation of board members | 31,229 |
| Custodian fees | 10,309 |
| Printing and postage fees | 26,125 |
| Registration fees | 17,979 |
| Audit fees | 29,500 |
| Legal fees | 17,684 |
| Compensation of chief compliance officer | 181 |
| Other | 23,496 |
| Total expenses | 4,852,361 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (103,310) |
| Fees waived by distributor | |
| Class A | (170,633) |
| Class C | (66,210) |
| Expense reduction | (260) |
| Total net expenses | 4,511,948 |
| Net investment income | 16,662,541 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 1,556,389 |
| Futures contracts | (1,941,932) |
| Net realized loss | (385,543) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 6,148,716 |
| Futures contracts | 10,723 |
| Net change in unrealized appreciation (depreciation) | 6,159,439 |
| Net realized and unrealized gain | 5,773,896 |
| Net increase in net assets resulting from operations | $22,436,437 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 23 |
Statement of Changes in Net Assets
| | Year Ended
October 31, 2021 | Year Ended
October 31, 2020 |
| Operations | | |
| Net investment income | $16,662,541 | $16,338,244 |
| Net realized gain (loss) | (385,543) | 2,626,362 |
| Net change in unrealized appreciation (depreciation) | 6,159,439 | (4,868,297) |
| Net increase in net assets resulting from operations | 22,436,437 | 14,096,309 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (9,312,102) | (12,245,624) |
| Advisor Class | (166,820) | (208,014) |
| Class C | (504,032) | (937,701) |
| Institutional Class | (8,784,913) | (8,232,710) |
| Institutional 2 Class | (75,158) | (127,101) |
| Institutional 3 Class | (280,494) | (287,563) |
| Total distributions to shareholders | (19,123,519) | (22,038,713) |
| Increase in net assets from capital stock activity | 117,508,991 | 49,494,870 |
| Total increase in net assets | 120,821,909 | 41,552,466 |
| Net assets at beginning of year | 629,027,815 | 587,475,349 |
| Net assets at end of year | $749,849,724 | $629,027,815 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | October 31, 2021 | October 31, 2020 |
| | Shares | Dollars ($) | Shares(a) | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 1,669,589 | 52,579,109 | 1,166,360 | 36,105,850 |
| Distributions reinvested | 249,597 | 7,839,033 | 331,128 | 10,203,525 |
| Redemptions | (1,471,663) | (46,235,237) | (1,982,048) | (60,373,410) |
| Net increase (decrease) | 447,523 | 14,182,905 | (484,560) | (14,064,035) |
| Advisor Class | | | | |
| Subscriptions | 152,743 | 4,820,360 | 97,249 | 3,005,338 |
| Distributions reinvested | 5,297 | 166,515 | 6,721 | 207,624 |
| Redemptions | (97,724) | (3,075,946) | (157,248) | (4,473,630) |
| Net increase (decrease) | 60,316 | 1,910,929 | (53,278) | (1,260,668) |
| Class C | | | | |
| Subscriptions | 80,679 | 2,533,992 | 205,489 | 6,325,231 |
| Distributions reinvested | 14,047 | 441,031 | 21,835 | 672,864 |
| Redemptions | (228,115) | (7,181,925) | (465,276) | (14,280,915) |
| Net decrease | (133,389) | (4,206,902) | (237,952) | (7,282,820) |
| Institutional Class | | | | |
| Subscriptions | 4,891,749 | 154,009,974 | 4,262,955 | 131,703,795 |
| Distributions reinvested | 163,010 | 5,122,037 | 167,277 | 5,157,922 |
| Redemptions | (1,794,004) | (56,291,837) | (2,156,268) | (65,475,173) |
| Net increase | 3,260,755 | 102,840,174 | 2,273,964 | 71,386,544 |
| Institutional 2 Class | | | | |
| Subscriptions | 30,507 | 955,518 | 16,612 | 511,648 |
| Distributions reinvested | 2,379 | 74,866 | 4,106 | 126,727 |
| Redemptions | (17,998) | (566,540) | (52,707) | (1,656,606) |
| Net increase (decrease) | 14,888 | 463,844 | (31,989) | (1,018,231) |
| Institutional 3 Class | | | | |
| Subscriptions | 121,159 | 3,832,501 | 108,450 | 3,356,620 |
| Distributions reinvested | 8,867 | 280,073 | 9,252 | 286,718 |
| Redemptions | (56,741) | (1,794,533) | (63,021) | (1,909,258) |
| Net increase | 73,285 | 2,318,041 | 54,681 | 1,734,080 |
| Total net increase | 3,723,378 | 117,508,991 | 1,520,866 | 49,494,870 |
| (a) | Share activity has been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 25 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A(c) |
| Year Ended 10/31/2021 | $30.83 | 0.74 | 0.37 | 1.11 | (0.74) | (0.12) | (0.86) |
| Year Ended 10/31/2020 | $31.12 | 0.81 | 0.01(e) | 0.82 | (0.81) | (0.30) | (1.11) |
| Year Ended 10/31/2019 | $29.49 | 1.00 | 1.71 | 2.71 | (1.00) | (0.08) | (1.08) |
| Year Ended 10/31/2018 | $30.87 | 1.08 | (1.26) | (0.18) | (1.04) | (0.16) | (1.20) |
| Year Ended 10/31/2017 | $31.74 | 1.12 | (0.67) | 0.45 | (1.12) | (0.20) | (1.32) |
| Advisor Class(c) |
| Year Ended 10/31/2021 | $30.86 | 0.80 | 0.37 | 1.17 | (0.80) | (0.12) | (0.92) |
| Year Ended 10/31/2020 | $31.14 | 0.89 | 0.01(e) | 0.90 | (0.88) | (0.30) | (1.18) |
| Year Ended 10/31/2019 | $29.50 | 1.04 | 1.72 | 2.76 | (1.04) | (0.08) | (1.12) |
| Year Ended 10/31/2018 | $30.88 | 1.16 | (1.26) | (0.10) | (1.12) | (0.16) | (1.28) |
| Year Ended 10/31/2017 | $31.75 | 1.16 | (0.63) | 0.53 | (1.20) | (0.20) | (1.40) |
| Class C(c) |
| Year Ended 10/31/2021 | $30.83 | 0.58 | 0.37 | 0.95 | (0.58) | (0.12) | (0.70) |
| Year Ended 10/31/2020 | $31.12 | 0.67 | 0.01(e) | 0.68 | (0.67) | (0.30) | (0.97) |
| Year Ended 10/31/2019 | $29.49 | 0.84 | 1.71 | 2.55 | (0.84) | (0.08) | (0.92) |
| Year Ended 10/31/2018 | $30.87 | 0.92 | (1.22) | (0.30) | (0.92) | (0.16) | (1.08) |
| Year Ended 10/31/2017 | $31.75 | 0.96 | (0.68) | 0.28 | (0.96) | (0.20) | (1.16) |
| Institutional Class(c) |
| Year Ended 10/31/2021 | $30.85 | 0.80 | 0.36 | 1.16 | (0.80) | (0.12) | (0.92) |
| Year Ended 10/31/2020 | $31.13 | 0.88 | 0.02(e) | 0.90 | (0.88) | (0.30) | (1.18) |
| Year Ended 10/31/2019 | $29.50 | 1.08 | 1.67 | 2.75 | (1.04) | (0.08) | (1.12) |
| Year Ended 10/31/2018 | $30.88 | 1.12 | (1.22) | (0.10) | (1.12) | (0.16) | (1.28) |
| Year Ended 10/31/2017 | $31.76 | 1.20 | (0.68) | 0.52 | (1.20) | (0.20) | (1.40) |
| Institutional 2 Class(c) |
| Year Ended 10/31/2021 | $30.89 | 0.81 | 0.37 | 1.18 | (0.81) | (0.12) | (0.93) |
| Year Ended 10/31/2020 | $31.18 | 0.90 | 0.00(e),(h) | 0.90 | (0.89) | (0.30) | (1.19) |
| Year Ended 10/31/2019 | $29.54 | 1.00 | 1.80 | 2.80 | (1.08) | (0.08) | (1.16) |
| Year Ended 10/31/2018 | $30.92 | 1.16 | (1.22) | (0.06) | (1.16) | (0.16) | (1.32) |
| Year Ended 10/31/2017 | $31.80 | 1.20 | (0.68) | 0.52 | (1.20) | (0.20) | (1.40) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 26 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A(c) |
| Year Ended 10/31/2021 | $31.08 | 3.61% | 0.80% | 0.74%(d) | 2.35% | 14% | $346,280 |
| Year Ended 10/31/2020 | $30.83 | 2.69% | 0.81% | 0.78%(d) | 2.64% | 30% | $329,728 |
| Year Ended 10/31/2019 | $31.12 | 9.31% | 0.82%(f) | 0.80%(d),(f) | 3.26% | 37% | $347,854 |
| Year Ended 10/31/2018 | $29.49 | (0.62%) | 0.82% | 0.82%(d) | 3.52% | 13% | $323,725 |
| Year Ended 10/31/2017 | $30.87 | 1.49% | 0.82%(g) | 0.81%(d),(g) | 3.61% | 17% | $339,354 |
| Advisor Class(c) |
| Year Ended 10/31/2021 | $31.11 | 3.82% | 0.55% | 0.54%(d) | 2.55% | 14% | $6,418 |
| Year Ended 10/31/2020 | $30.86 | 3.03% | 0.56% | 0.54%(d) | 2.88% | 30% | $4,506 |
| Year Ended 10/31/2019 | $31.14 | 9.59% | 0.57%(f) | 0.54%(d),(f) | 3.37% | 37% | $6,206 |
| Year Ended 10/31/2018 | $29.50 | (0.38%) | 0.57% | 0.57%(d) | 3.76% | 13% | $1,363 |
| Year Ended 10/31/2017 | $30.88 | 1.75% | 0.57% | 0.56%(d) | 3.82% | 17% | $3,231 |
| Class C(c) |
| Year Ended 10/31/2021 | $31.08 | 3.09% | 1.55% | 1.24%(d) | 1.86% | 14% | $19,828 |
| Year Ended 10/31/2020 | $30.83 | 2.22% | 1.56% | 1.24%(d) | 2.19% | 30% | $23,783 |
| Year Ended 10/31/2019 | $31.12 | 8.82% | 1.57%(f) | 1.25%(d),(f) | 2.82% | 37% | $31,410 |
| Year Ended 10/31/2018 | $29.49 | (1.07%) | 1.57% | 1.27%(d) | 3.07% | 13% | $35,145 |
| Year Ended 10/31/2017 | $30.87 | 1.03% | 1.57%(g) | 1.26%(d),(g) | 3.16% | 17% | $46,521 |
| Institutional Class(c) |
| Year Ended 10/31/2021 | $31.09 | 3.78% | 0.55% | 0.54%(d) | 2.54% | 14% | $363,917 |
| Year Ended 10/31/2020 | $30.85 | 3.00% | 0.56% | 0.54%(d) | 2.87% | 30% | $260,443 |
| Year Ended 10/31/2019 | $31.13 | 9.58% | 0.57%(f) | 0.55%(d),(f) | 3.49% | 37% | $192,055 |
| Year Ended 10/31/2018 | $29.50 | (0.37%) | 0.57% | 0.57%(d) | 3.77% | 13% | $143,156 |
| Year Ended 10/31/2017 | $30.88 | 1.74% | 0.57%(g) | 0.56%(d),(g) | 3.86% | 17% | $120,839 |
| Institutional 2 Class(c) |
| Year Ended 10/31/2021 | $31.14 | 3.83% | 0.54% | 0.52% | 2.57% | 14% | $2,765 |
| Year Ended 10/31/2020 | $30.89 | 2.89% | 0.54% | 0.52% | 2.92% | 30% | $2,283 |
| Year Ended 10/31/2019 | $31.18 | 9.59% | 0.56%(f) | 0.53%(f) | 3.29% | 37% | $3,302 |
| Year Ended 10/31/2018 | $29.54 | (0.21%) | 0.56% | 0.55% | 3.80% | 13% | $196 |
| Year Ended 10/31/2017 | $30.92 | 1.75% | 0.55%(g) | 0.53%(g) | 3.95% | 17% | $78 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 27 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class(c) |
| Year Ended 10/31/2021 | $31.01 | 0.82 | 0.38 | 1.20 | (0.83) | (0.12) | (0.95) |
| Year Ended 10/31/2020 | $31.29 | 0.91 | 0.02(e) | 0.93 | (0.91) | (0.30) | (1.21) |
| Year Ended 10/31/2019 | $29.65 | 1.08 | 1.72 | 2.80 | (1.08) | (0.08) | (1.16) |
| Year Ended 10/31/2018 | $31.03 | 1.16 | (1.22) | (0.06) | (1.16) | (0.16) | (1.32) |
| Year Ended 10/31/2017(i) | $30.52 | 0.80 | 0.51(e) | 1.31 | (0.80) | — | (0.80) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Per share amounts have been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | 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 subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (f) | Ratios include interfund lending expense which is less than 0.01%. |
| (g) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Class C | Institutional
Class | Institutional 2
Class |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% |
| (h) | Rounds to zero. |
| (i) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (j) | Annualized. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 28 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class(c) |
| Year Ended 10/31/2021 | $31.26 | 3.88% | 0.48% | 0.47% | 2.62% | 14% | $10,641 |
| Year Ended 10/31/2020 | $31.01 | 3.07% | 0.49% | 0.47% | 2.94% | 30% | $8,284 |
| Year Ended 10/31/2019 | $31.29 | 9.63% | 0.50%(f) | 0.48%(f) | 3.55% | 37% | $6,648 |
| Year Ended 10/31/2018 | $29.65 | (0.28%) | 0.50% | 0.50% | 3.85% | 13% | $3,905 |
| Year Ended 10/31/2017(i) | $31.03 | 4.34% | 0.52%(j) | 0.51%(j) | 3.93%(j) | 17% | $3,187 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 29 |
Notes to Financial Statements
October 31, 2021
Note 1. Organization
Columbia Strategic California Municipal Income 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.
The Fund’s Board of Trustees approved reverse stock splits of the issued and outstanding shares of the Fund (the Reverse Stock Split). The Reverse Stock Split was completed after the close of business on September 11, 2020. The impact of the Reverse Stock Split was to decrease the number of shares outstanding and increase the net asset value per share for each share class of the Fund by the ratio of 4 to 1, resulting in no effect on the net assets of each share class or the value of each affected shareholder’s investment. Capital stock share activity reflected in the Statement of Changes in Net Assets and per share data in the Financial Highlights have been adjusted on a retroactive basis to reflect the impact of the Reverse Stock Split.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Effective April 1, 2021, Class C shares automatically convert to Class A shares after 8 years. Prior to April 1, 2021, Class C shares automatically converted to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
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,
| 30 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
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 quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Futures and options on futures contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 31 |
Notes to Financial Statements (continued)
October 31, 2021
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense paid by the Fund is shown on the Statement of Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
| 32 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
Effects of derivative transactions in the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at October 31, 2021:
| | Asset derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 67,203* |
| | Liability derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 47,275* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the year ended October 31, 2021:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | (1,941,932) |
| |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 10,723 |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended October 31, 2021:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — short | 33,655,532 |
| * | Based on the ending quarterly outstanding amounts for the year ended October 31, 2021. |
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 33 |
Notes to Financial Statements (continued)
October 31, 2021
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting
| 34 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2021 was 0.45% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended October 31, 2021, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 35 |
Notes to Financial Statements (continued)
October 31, 2021
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2021, these minimum account balance fees reduced total expenses of the Fund by $260.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has contractually agreed to waive a portion of the service fee for Class A shares through February 28, 2022 so that the service fee does not exceed 0.20% annually of the average daily net assets attributable to Class A shares. This arrangement may be modified or terminated at the sole discretion of the Board of Trustees.
The Distributor has contractually agreed to waive a portion of the distribution fee for Class C shares through February 28, 2022 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 at the sole discretion of the Board of Trustees.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2021, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 77,579 |
| Class C | — | 1.00(b) | 1,086 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
| 36 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
February 28, 2022 |
| Class A | 0.79% |
| Advisor Class | 0.54 |
| Class C | 1.54 |
| Institutional Class | 0.54 |
| Institutional 2 Class | 0.52 |
| Institutional 3 Class | 0.47 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with certain shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. Class A and 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 October 31, 2021, these differences were primarily due to differing treatment for deferral/reversal of wash sale losses, trustees’ deferred compensation, tax straddles, distributions, principal and/or interest of fixed income securities, distribution reclassifications and investments in partnerships. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Undistributed net
investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| 744 | (744) | — |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 37 |
Notes to Financial Statements (continued)
October 31, 2021
The tax character of distributions paid during the years indicated was as follows:
| Year Ended October 31, 2021 | Year Ended October 31, 2020 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 1,148,949 | 16,757,298 | 1,217,272 | 19,123,519 | 1,837,011 | 16,387,762 | 3,813,940 | 22,038,713 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2021, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| 1,329,088 | 3,376,429 | 516,353 | — | 32,048,418 |
At October 31, 2021, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 714,597,818 | 37,428,962 | (5,380,544) | 32,048,418 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $190,993,529 and $94,199,233, respectively, for the year ended October 31, 2021, of which $2,599,783 and $4,874, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended October 31, 2021.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is
| 38 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended October 31, 2021.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 39 |
Notes to Financial Statements (continued)
October 31, 2021
such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The COVID-19 pandemic has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and other natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At October 31, 2021, one unaffiliated shareholder of record owned 28.8% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of record owned 29.7% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a
| 40 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates 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 Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 41 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Strategic California Municipal Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Strategic California Municipal Income Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of October 31, 2021, the related statement of operations for the year ended October 31, 2021, the statement of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 21, 2021
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
| 42 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended October 31, 2021. Shareholders will be notified in early 2022 of the amounts for use in preparing 2021 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $594,771 | 99.99% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 171 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 43 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney; specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018 | 171 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee - 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; Director, Robina Foundation, 2009-2020 (Chair, 2014-2020) |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 171 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee) since 2019 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 169 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020(a) | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 169 | Director, The Autism Project, since March 2015; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020(a) | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 2001-2004 | 169 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
| 44 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 171 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2019; Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 171 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 169 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 169 | None |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 169 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 45 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, Dean Witter Reynolds, Inc., 1976-1980 | 171 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1946 | Trustee since 2008 | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006; Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 171 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, RenaissanceRe Holdings Ltd. since May 2008; former Director, Citigroup Inc. and Citibank, N.A., 2009-2019; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 171 | Director, BlueCross BlueShield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation |
| 46 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020(a) | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services) since January 2016; Non-executive Member of the Investment Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services) since August 2018; Advisor, Paradigm Asset Management since November 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008 - January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 169 | Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions); Independent Director, Investment Committee, Sarona Asset Management |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 171 | Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Santomero and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as a director of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| (a) | J. Kevin Connaughton was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective March 1, 2016. Natalie A. Trunow was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective September 1, 2016. Olive M. Darragh was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective June 10, 2019. Shareholders of the Funds elected Mr. Connaughton and Mses. Darragh and Trunow as Trustees of CFST, CFST I, CFST II, CET I, CET II, and CFVST II, effective January 1, 2021, and of CFVIT, effective July 1, 2020. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021(a) | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC (since April 2015); officer of Columbia Funds and affiliated funds since 2020. | 171 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
| (a) | Mr. Beckman serves as the President and Principal Executive Officer of the Columbia Funds (since 2021). |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 47 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is the President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June 2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee of Columbia Funds Complex until January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary | Formerly, Trustee of Columbia Funds Complex until November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company September 2010 – September 2020. |
Colin Moore
290 Congress Street
Boston, MA 02210
1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
| 48 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Approval of Management Agreement
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia Strategic California Municipal Income Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee in November and December 2020 and March, April and June 2021, including reports providing the results of analyses performed by an independent third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and a comprehensive response to requests for information by independent legal counsels to the Independent Trustees (Independent Legal Counsel) in a letter to the Investment Manager, to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees, such as the Contracts Committee, the Investment Oversight Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 15, 2021 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered 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 Broadridge, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by Broadridge; |
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 49 |
Approval of Management Agreement (continued)
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
| • | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department’s processes, systems and oversight, over the past several years, as well as planned 2021 initiatives in this regard. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel. The Board also observed that the Investment Manager has been able to effectively manage, operate and distribute the Funds through the COVID-19 pandemic period with no disruptions in services provided.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2020 in the performance of administrative services, and noted the various enhancements anticipated for 2021. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes are proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Funds under the Fund Management Agreements.
After reviewing these and related factors (including investment performance as discussed below), 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 Management Agreement supported the continuation of the Management Agreement.
| 50 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
Investment performance
In this connection, the Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the performance of a benchmark index, (iii) the percentage ranking of the Fund among its comparison group, (iv) the Fund’s performance relative to peers and benchmarks and (v) the net assets of the Fund. The Board observed that the Fund’s performance for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the Investment Manager’s profitability.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) was below the peer universe’s median expense ratio shown in the reports.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that in 2020 the Board had considered 2019 profitability and that the 2021 information showed that the profitability generated by the Investment Manager in 2020 increased slightly from 2019 levels. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, 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 Management Agreement.
Columbia Strategic California Municipal Income Fund | Annual Report 2021
| 51 |
Approval of Management Agreement (continued)
Economies of scale
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 as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 15, 2021, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
| 52 | Columbia Strategic California Municipal Income Fund | Annual Report 2021 |
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Columbia Strategic California Municipal Income Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2021 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2021
Columbia Massachusetts Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified by mail and provided with a website address to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Massachusetts Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
Investment objective
The Fund seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Massachusetts individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Average annual total returns (%) (for the period ended October 31, 2021) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 12/09/02 | 1.65 | 2.19 | 2.51 |
| | Including sales charges | | -1.41 | 1.56 | 2.19 |
| Advisor Class* | 03/19/13 | 1.91 | 2.45 | 2.76 |
| Class C | Excluding sales charges | 12/09/02 | 1.10 | 1.71 | 2.05 |
| | Including sales charges | | 0.10 | 1.71 | 2.05 |
| Institutional Class | 06/14/93 | 1.81 | 2.43 | 2.75 |
| Institutional 2 Class* | 03/01/16 | 1.96 | 2.51 | 2.80 |
| Institutional 3 Class* | 03/01/17 | 2.02 | 2.55 | 2.81 |
| Class V | Excluding sales charges | 06/26/00 | 1.76 | 2.29 | 2.61 |
| | Including sales charges | | -3.08 | 1.31 | 2.11 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | 1.93 | 3.11 | 3.46 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Fund performance may be significantly negatively impacted by the economic impact of the COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and capital markets around the world in ways that will likely continue and may change in unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate pre-existing political, social and economic risks in certain countries and globally.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 3 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2011 — October 31, 2021)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Massachusetts Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at October 31, 2021) |
| AAA rating | 6.4 |
| AA rating | 54.9 |
| A rating | 21.3 |
| BBB rating | 13.9 |
| BB rating | 3.5 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Manager Discussion of Fund Performance
For the 12-month period that ended October 31, 2021, the Fund’s Class A shares returned 1.65% excluding sales charges. Institutional Class shares of the Fund returned 1.81%. For the same time period, the Fund’s benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, which is national in scope, returned 1.93%.
Market overview
As the period began, there was a significant increase in municipal bond issuance ahead of the November election. The resulting excess supply and upward rate pressure pushed municipal total returns into negative territory. A renewed bid for risk assets, including municipal bonds, was spurred as election volatility failed to materialize and positive COVID-19 vaccination news emerged. Following the pre-election flood of supply, municipal investors were left with limited new issuance to meet demand in November and December, a dynamic that helped end 2020 on a positive note.
The strong municipal performance that closed 2020 continued into the new year. Despite the gradual upward march of U.S. Treasury yields, municipal performance held positive through the first month of the year, as lighter supply and tighter spreads produced positive excess returns versus Treasuries. By mid-February, however, municipals succumbed to the upward pull of Treasury yields, as municipal yields repriced higher between 20 and 40 basis points (bps) across much of the curve, with only the shortest maturities avoiding substantial yield spikes. (A basis point is 1/100 of a percent.) However, negative total returns brought on by higher yields did not spark an outflow cycle. Rather, municipal investors took the opportunity to put cash to work at higher yield levels, and by the end of March 2021, yields had retraced lower 3–6 bps, reviving outperformance versus Treasuries and closing the first quarter on a positive note.
Federal stimulus via the $1.9 trillion American Rescue Plan provided some measure of indirect support for portions of the municipal market. While rates markets focused on the possible inflationary effects of such a large stimulus package, municipal investors chose to weigh the positive credit impacts. Stimulus, combined with tax revenues that have broadly surprised to the upside, continued to support improvement in municipal credit fundamentals.
By mid-2021, credit concerns that arose during COVID-19 shutdowns had diminished, and lower quality segments of the market led positive performance. Though pockets of value remained in certain sectors or issuers, the dramatic post-COVID-19 recovery had resulted in relatively full valuations across much of the market. With the COVID-19 shutdowns lifted, it was evident that most states’ expectations of massive revenue gaps failed to materialize. Tax revenue performance was rather strong even through the depths of the pandemic, with projected deficits turning into actual surpluses for many state and local governments. Surprise revenue outperformance, coupled with direct federal support via the American Rescue Plan, bolstered credit fundamentals for most issuers.
A Delta-variant-driven resurgence in COVID-19 cases weighed on investors’ minds as the third quarter of 2021 began. Initially, the expectation of slower growth pushed Treasury yields lower with 10-year Treasury yields reaching a low of 1.17% in early August. Undeterred by Delta, the Federal Reserve indicated that the tapering of asset purchases would likely begin soon but gave no timeline for the start of interest rate hikes. Supply chain disruptions, energy shortages and transportation bottlenecks all pressured inflation and interest rates higher. Interest rate volatility led most fixed-income sectors to negative returns during the third quarter of 2021. However, despite a negative third quarter, municipal performance remained one of the few positive corners of the domestic fixed-income landscape on a year-to-date basis. Post-COVID-19 tax revenue performance in most locales continued to outpace expectations, improving credit fundamentals and leaving many municipal issuers in healthy fiscal positions.
In the final month of the period, a weaker tone and the continuation of upward rate pressure weighed on municipal returns, as the national muni market ended with another month of negative total returns. Policy negotiations in Washington remained fluid, but by period-end had taken a turn towards removing tax proposals that would have been stimulative for municipal demand.
All in all, the environment for municipal bonds was favorable during the reporting period. Relentless investor demand, restrained supply, federal support, COVID-19 vaccinations and the re-opening of the economy made for an opportune environment, in our view. Investors were paid for taking and being exposed to risk. The least risky areas of the market still produced positive returns, just less positive than the riskier areas.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 5 |
Manager Discussion of Fund Performance (continued)
The Fund’s notable detractors during the period
| • | The Fund’s holdings of bonds with maturities of inside of two years and pre-refunded bonds produced modest total returns during the period that underperformed the benchmark. While we do not believe that there is anything inherently wrong with these holdings, they are just very short and/or very high-quality holdings that are low yielding. In our view, they are natural reinvestment candidates and are excellent sources of liquidity. |
| • | Timing of a few Fund purchases was not ideal. Rates bottomed out in mid-February 2021 and again during late July. We were intentionally not very active during these periods as we believed the strong supply/demand technical environment was driving municipal bonds to potentially rich levels. However, we did purchase a few positions for the Fund that we felt were attractive. The Fund’s overall return in local general obligation (GO) bonds was hurt due to a purchase of Boston GOs in early December 2020. As rates drifted up during the remainder of the period, these positions became performance detractors. |
The Fund’s notable contributors during the period
| • | The Fund benefited from its overweight to lower investment grade rated issues across several sectors as lower quality and longer maturity bonds outperformed during the period. |
| • | Holdings in continuing care retirement communities (CCRCs) did well as vaccinations were administered and operations returned to a more normal state, including a resumption in family member visits. |
| • | The Fund’s two largest sector weights, hospitals and education, were positive contributors as well. Hospitals resumed elective surgeries and students returned to in-classroom learning. The top sector return of over 14% was generated in student housing as students returned to the University of Massachusetts Boston campus. |
| • | Yield curve positioning was another bright spot for the Fund as longer intermediate maturities outperformed. The Fund was more than 11% overweight to bonds maturing in 8 years and longer versus the benchmark. |
| • | Lastly, the Fund’s exposure to bonds with 4% coupons was a plus during the period. 4% coupon bonds offer additional yield and income versus traditional 5% coupon bonds. We increased the Fund’s exposure to this area during the year as we worked toward establishing a weighting in line with the benchmark. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2021 — October 31, 2021 |
| | Account value at the
beginning of the
period ($) | 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 | 998.90 | 1,020.89 | 4.04 | 4.08 | 0.81 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,000.20 | 1,022.14 | 2.79 | 2.82 | 0.56 |
| Class C | 1,000.00 | 1,000.00 | 995.70 | 1,018.65 | 6.27 | 6.34 | 1.26 |
| Institutional Class | 1,000.00 | 1,000.00 | 999.20 | 1,022.14 | 2.79 | 2.82 | 0.56 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,000.40 | 1,022.44 | 2.49 | 2.52 | 0.50 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,000.70 | 1,022.69 | 2.24 | 2.27 | 0.45 |
| Class V | 1,000.00 | 1,000.00 | 999.40 | 1,021.39 | 3.54 | 3.58 | 0.71 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 7 |
Portfolio of Investments
October 31, 2021
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 98.2% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 5.3% |
| Massachusetts Port Authority(a) |
| Refunding Revenue Bonds |
| BosFuel Project |
| Series 2019A |
| 07/01/2038 | 5.000% | | 1,000,000 | 1,223,367 |
| Series 2021B |
| 07/01/2038 | 5.000% | | 850,000 | 1,082,553 |
| Revenue Bonds |
| Series 2019C |
| 07/01/2027 | 5.000% | | 1,865,000 | 2,267,506 |
| 07/01/2035 | 5.000% | | 2,000,000 | 2,469,935 |
| Series 2021E |
| 07/01/2038 | 5.000% | | 1,000,000 | 1,273,591 |
| Massachusetts Port Authority |
| Refunding Revenue Bonds |
| Series 2014C |
| 07/01/2031 | 5.000% | | 1,900,000 | 2,119,337 |
| Revenue Bonds |
| Series 2015A |
| 07/01/2026 | 5.000% | | 600,000 | 694,766 |
| Total | 11,131,055 |
| Charter Schools 1.9% |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Foxborough Regional Charter |
| Series 2017 |
| 07/01/2037 | 5.000% | | 1,800,000 | 2,019,046 |
| International Charter School |
| Series 2015 |
| 04/15/2025 | 5.000% | | 410,000 | 441,122 |
| 04/15/2033 | 5.000% | | 1,335,000 | 1,477,902 |
| Total | 3,938,070 |
| Higher Education 22.8% |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Babson College |
| Series 2015A |
| 10/01/2025 | 5.000% | | 600,000 | 698,694 |
| Boston University |
| Series 2006BB2 |
| 10/01/2037 | 4.000% | | 2,120,000 | 2,407,853 |
| Brandeis University |
| Series 2018R |
| 10/01/2035 | 5.000% | | 1,005,000 | 1,238,198 |
| 10/01/2036 | 5.000% | | 1,140,000 | 1,401,599 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2019 |
| 10/01/2036 | 5.000% | | 1,535,000 | 1,899,194 |
| College of the Holy Cross |
| Series 2016A |
| 09/01/2034 | 5.000% | | 500,000 | 590,031 |
| Emerson College |
| Series 2017A |
| 01/01/2033 | 5.000% | | 1,500,000 | 1,788,349 |
| 01/01/2034 | 5.000% | | 1,000,000 | 1,190,391 |
| Harvard University |
| Series 2020A |
| 10/15/2028 | 5.000% | | 500,000 | 638,429 |
| Simmons College |
| Series 2015K-1 |
| 10/01/2026 | 5.000% | | 3,005,000 | 3,479,559 |
| 10/01/2028 | 5.000% | | 1,100,000 | 1,260,671 |
| Simmons University |
| Series 2018L |
| 10/01/2034 | 5.000% | | 500,000 | 601,785 |
| 10/01/2035 | 5.000% | | 455,000 | 546,978 |
| Suffolk University |
| Series 2019 |
| 07/01/2035 | 5.000% | | 870,000 | 1,054,246 |
| Tufts University |
| Series 2015Q |
| 08/15/2030 | 5.000% | | 1,000,000 | 1,152,356 |
| Western New England University |
| Series 2015 |
| 09/01/2032 | 5.000% | | 500,000 | 564,282 |
| 09/01/2033 | 5.000% | | 1,225,000 | 1,381,133 |
| 09/01/2034 | 5.000% | | 1,285,000 | 1,446,868 |
| Woods Hole Oceanographic Institution |
| Series 2018 |
| 06/01/2036 | 5.000% | | 650,000 | 798,257 |
| Worcester Polytechnic Institute |
| Series 2016 |
| 09/01/2034 | 5.000% | | 500,000 | 590,548 |
| Series 2017 |
| 09/01/2037 | 5.000% | | 290,000 | 350,058 |
| Revenue Bonds |
| Babson College |
| Series 2017 |
| 10/01/2032 | 5.000% | | 885,000 | 1,077,333 |
| 10/01/2033 | 5.000% | | 900,000 | 1,095,764 |
| Bentley University |
| Series 2016 |
| 07/01/2035 | 4.000% | | 1,000,000 | 1,118,667 |
| 07/01/2036 | 4.000% | | 1,000,000 | 1,116,782 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Boston University |
| Series 2019DD (Mandatory Put 04/01/24) |
| 10/01/2042 | 5.000% | | 1,000,000 | 1,084,631 |
| Brandeis University |
| Series 2019S-2 |
| 10/01/2033 | 5.000% | | 1,150,000 | 1,431,312 |
| Simmons College |
| Series 2006H |
| 10/01/2033 | 5.250% | | 1,000,000 | 1,290,123 |
| Series 2013J |
| 10/01/2024 | 5.250% | | 500,000 | 545,057 |
| 10/01/2025 | 5.500% | | 450,000 | 491,721 |
| Worcester Polytechnic Institute |
| Series 2019 |
| 09/01/2038 | 5.000% | | 865,000 | 1,072,789 |
| Massachusetts Health & Educational Facilities Authority |
| Revenue Bonds |
| Boston College |
| Series 2008M-1 |
| 06/01/2024 | 5.500% | | 3,000,000 | 3,396,513 |
| Northeastern University |
| Series 2008T-1 |
| 10/01/2028 | 5.000% | | 1,000,000 | 1,042,133 |
| Series 2008T-2 |
| 10/01/2029 | 5.000% | | 4,045,001 | 4,214,666 |
| University of Massachusetts Building Authority |
| Refunding Revenue Bonds |
| Series 2021-1 |
| 11/01/2029 | 5.000% | | 1,200,000 | 1,558,274 |
| Revenue Bonds |
| Senior Lien |
| Series 2020-1 |
| 11/01/2032 | 5.000% | | 2,000,000 | 2,564,381 |
| Total | 48,179,625 |
| Hospital 17.3% |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Berkshire Health System |
| Series 2021 |
| 10/01/2029 | 5.000% | | 250,000 | 321,053 |
| CareGroup |
| Series 2015H-1 |
| 07/01/2030 | 5.000% | | 1,170,000 | 1,340,732 |
| Series 2016I |
| 07/01/2033 | 5.000% | | 3,000,000 | 3,514,868 |
| Lahey Clinic Obligation |
| Series 2015F |
| 08/15/2031 | 5.000% | | 3,000,000 | 3,446,069 |
| 08/15/2034 | 5.000% | | 2,250,000 | 2,576,418 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Partners HealthCare System |
| Series 2016 |
| 07/01/2031 | 5.000% | | 3,000,000 | 3,566,255 |
| Series 2020 |
| 07/01/2037 | 5.000% | | 2,250,000 | 2,839,146 |
| Series 2020 (Mandatory Put 01/31/30) |
| 07/01/2050 | 5.000% | | 4,000,000 | 5,149,194 |
| Series 2019A (AGM) |
| 07/01/2034 | 5.000% | | 1,200,000 | 1,465,133 |
| Series 2019O |
| 12/01/2035 | 5.000% | | 175,000 | 217,030 |
| Series 2021G |
| 07/01/2038 | 5.000% | | 225,000 | 288,389 |
| UMass Memorial Healthcare |
| Series 2016I |
| 07/01/2030 | 5.000% | | 2,295,000 | 2,679,631 |
| Series 2017 |
| 07/01/2031 | 5.000% | | 1,000,000 | 1,194,549 |
| Revenue Bonds |
| Baystate Medical Center |
| Series 2014N |
| 07/01/2028 | 5.000% | | 1,000,000 | 1,106,039 |
| 07/01/2034 | 5.000% | | 1,500,000 | 1,655,712 |
| CareGroup |
| Series 2018J1 |
| 07/01/2036 | 5.000% | | 985,000 | 1,197,672 |
| 07/01/2037 | 5.000% | | 1,035,000 | 1,255,849 |
| Children’s Hospital |
| Series 2014P |
| 10/01/2031 | 5.000% | | 1,200,000 | 1,354,809 |
| Milford Regional Medical Center |
| Series 2014F |
| 07/15/2026 | 5.000% | | 315,000 | 336,119 |
| Southcoast Health System Obligation Group |
| Series 2013 |
| 07/01/2027 | 5.000% | | 1,050,000 | 1,121,047 |
| Total | 36,625,714 |
| Joint Power Authority 1.9% |
| Berkshire Wind Power Cooperative Corp. |
| Refunding Revenue Bonds |
| Berkshire Wind Project |
| Series 2017 |
| 07/01/2029 | 5.000% | | 1,000,000 | 1,207,398 |
| Massachusetts Clean Energy Cooperative Corp. |
| Revenue Bonds |
| Municipal Lighting Plant Cooperative |
| Series 2013 |
| 07/01/2027 | 5.000% | | 2,720,000 | 2,908,266 |
| Total | 4,115,664 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 9 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Local General Obligation 4.8% |
| City of Boston |
| Unlimited General Obligation Bonds |
| Series 2020A |
| 11/01/2028 | 5.000% | | 3,000,000 | 3,825,238 |
| City of Cambridge |
| Limited General Obligation Refunding Bonds |
| Series 2021 |
| 02/15/2031 | 5.000% | | 2,000,000 | 2,667,265 |
| City of Worcester |
| Limited General Obligation Bonds |
| Ballpark Project |
| Series 2020B |
| 02/01/2029 | 4.000% | | 415,000 | 484,716 |
| 02/01/2031 | 4.000% | | 495,000 | 575,545 |
| Town of Sharon |
| Limited General Obligation Bonds |
| Series 2020 |
| 02/15/2029 | 5.000% | | 2,000,000 | 2,554,974 |
| Total | 10,107,738 |
| Multi-Family 1.7% |
| Massachusetts Development Finance Agency |
| Revenue Bonds |
| UMass Boston Student Housing Project |
| Series 2016 |
| 10/01/2033 | 5.000% | | 1,235,000 | 1,394,588 |
| 10/01/2034 | 5.000% | | 2,000,000 | 2,255,461 |
| Total | 3,650,049 |
| Other Bond Issue 5.1% |
| Boston Housing Authority |
| Refunding Revenue Bonds |
| Series 2020A |
| 10/01/2027 | 5.000% | | 455,000 | 557,405 |
| 04/01/2028 | 5.000% | | 800,000 | 989,141 |
| Martha’s Vineyard Land Bank |
| Refunding Revenue Bonds |
| Green Bonds |
| Series 2014 |
| 05/01/2029 | 5.000% | | 1,000,000 | 1,120,001 |
| 05/01/2031 | 5.000% | | 1,000,000 | 1,114,222 |
| Series 2017 (BAM) |
| 05/01/2034 | 5.000% | | 500,000 | 597,168 |
| 05/01/2035 | 5.000% | | 500,000 | 596,327 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Broad Institute |
| Series 2017 |
| 04/01/2034 | 5.000% | | 2,500,000 | 3,028,076 |
| 04/01/2035 | 5.000% | | 2,350,000 | 2,841,847 |
| Total | 10,844,187 |
| Pool / Bond Bank 1.2% |
| Massachusetts Clean Water Trust (The) |
| Revenue Bonds |
| Green Bonds |
| Series 2019 |
| 08/01/2038 | 5.000% | | 2,000,000 | 2,530,341 |
| Prep School 0.5% |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Dexter Southfield |
| Series 2015 |
| 05/01/2030 | 5.000% | | 1,035,000 | 1,165,904 |
| Refunded / Escrowed 5.7% |
| Massachusetts Development Finance Agency |
| Prerefunded 07/01/25 Revenue Bonds |
| Partners HealthCare System |
| Series 2015 |
| 07/01/2032 | 5.000% | | 2,795,000 | 3,254,524 |
| Massachusetts State College Building Authority(b) |
| Revenue Bonds |
| Capital Appreciation |
| Series 1999A Escrowed to Maturity (NPFGC) |
| 05/01/2028 | 0.000% | | 4,000,000 | 3,676,265 |
| Massachusetts Water Resources Authority |
| Prerefunded 08/01/22 Revenue Bonds |
| Series 2012B |
| 08/01/2028 | 5.000% | | 5,000,000 | 5,180,195 |
| Total | 12,110,984 |
| Retirement Communities 2.9% |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| 1st Mortgage-Berkshire Retirement Community |
| Series 2015 |
| 07/01/2031 | 5.000% | | 1,250,000 | 1,416,219 |
| Orchard Cove, Inc. |
| Series 2019 |
| 10/01/2039 | 4.000% | | 985,000 | 1,072,024 |
| 10/01/2039 | 5.000% | | 250,000 | 279,107 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Massachusetts Development Finance Agency(c) |
| Refunding Revenue Bonds |
| Newbridge Charles, Inc. |
| Series 2017 |
| 10/01/2032 | 4.000% | | 1,500,000 | 1,608,747 |
| Revenue Bonds |
| Linden Ponds, Inc. Facility |
| Series 2018 |
| 11/15/2033 | 5.000% | | 1,500,000 | 1,670,228 |
| Total | 6,046,325 |
| Sales Tax 9.7% |
| Massachusetts Bay Transportation Authority |
| Refunding Revenue Bonds |
| Sales Tax Bond |
| Subordinated Series 2020B |
| 07/01/2033 | 5.000% | | 1,250,000 | 1,622,504 |
| Senior Sales Tax Bonds |
| Series 2004B |
| 07/01/2030 | 5.250% | | 1,770,000 | 2,267,023 |
| Revenue Bonds |
| Series 2005B (NPFGC) |
| 07/01/2023 | 5.500% | | 2,890,000 | 3,141,751 |
| Series 2006A |
| 07/01/2022 | 5.250% | | 3,500,000 | 3,618,201 |
| Series 2008B |
| 07/01/2023 | 5.000% | | 910,000 | 981,721 |
| Massachusetts Bay Transportation Authority(b) |
| Refunding Revenue Bonds |
| Series 2016A |
| 07/01/2029 | 0.000% | | 3,000,000 | 2,637,329 |
| 07/01/2032 | 0.000% | | 5,105,000 | 4,051,242 |
| Massachusetts School Building Authority |
| Revenue Bonds |
| Social Bonds |
| Series 2020A |
| 08/15/2033 | 5.000% | | 750,000 | 979,131 |
| Subordinated Series 2019A |
| 02/15/2029 | 5.000% | | 1,000,000 | 1,275,876 |
| Total | 20,574,778 |
| Single Family 0.3% |
| Massachusetts Housing Finance Agency |
| Refunding Revenue Bonds |
| Social Bonds |
| Series 2020-220 (GNMA) |
| 06/01/2027 | 5.000% | | 125,000 | 152,148 |
| 12/01/2027 | 5.000% | | 100,000 | 123,104 |
| 06/01/2028 | 5.000% | | 75,000 | 93,234 |
| 12/01/2028 | 5.000% | | 100,000 | 125,640 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| 06/01/2029 | 5.000% | | 75,000 | 95,088 |
| Total | 589,214 |
| State General Obligation 9.8% |
| Commonwealth of Massachusetts |
| Limited General Obligation Bonds |
| Series 2016I |
| 12/01/2030 | 5.000% | | 3,000,000 | 3,615,726 |
| Series 2019G |
| 09/01/2036 | 4.000% | | 2,000,000 | 2,375,544 |
| Series 2020B |
| 03/01/2032 | 4.000% | | 2,500,000 | 3,026,224 |
| Limited General Obligation Refunding Bonds |
| Series 2006B (AGM) |
| 09/01/2022 | 5.250% | | 2,000,000 | 2,084,198 |
| Series 2020B |
| 07/01/2033 | 5.000% | | 2,000,000 | 2,590,323 |
| Series 2020D |
| 11/01/2036 | 4.000% | | 1,000,000 | 1,210,237 |
| Unlimited General Obligation Refunding Bonds |
| Series 2004C (AMBAC) |
| 12/01/2024 | 5.500% | | 5,000,000 | 5,784,263 |
| Total | 20,686,515 |
| Student Loan 0.9% |
| Massachusetts Educational Financing Authority(a) |
| Revenue Bonds |
| Education Loan |
| Series 2021 |
| 07/01/2029 | 5.000% | | 1,250,000 | 1,561,393 |
| Series 2020B |
| 07/01/2028 | 5.000% | | 250,000 | 307,385 |
| Total | 1,868,778 |
| Transportation 0.8% |
| Commonwealth of Massachusetts Federal Highway Grant Anticipation Note |
| Revenue Bonds |
| Accelerated Bridge Program |
| Series 2019 |
| 06/15/2027 | 5.000% | | 1,400,000 | 1,669,880 |
| Turnpike / Bridge / Toll Road 2.8% |
| Massachusetts Transportation Trust Fund Metropolitan Highway System |
| Refunding Revenue Bonds |
| Series 2019A |
| 01/01/2035 | 5.000% | | 2,000,000 | 2,466,754 |
| Subordinated Series 2019B |
| 01/01/2030 | 5.000% | | 2,825,000 | 3,578,077 |
| Total | 6,044,831 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 11 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Water & Sewer 2.8% |
| Massachusetts Water Resources Authority |
| Refunding Revenue Bonds |
| General |
| Series 2007B (AGM / TCRS) |
| 08/01/2023 | 5.250% | | 5,500,000 | 5,980,505 |
Total Municipal Bonds
(Cost $196,024,509) | 207,860,157 |
| Money Market Funds 0.9% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.010%(d) | 122,391 | 122,379 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.006%(d) | 1,829,132 | 1,829,132 |
Total Money Market Funds
(Cost $1,951,523) | 1,951,511 |
Total Investments in Securities
(Cost: $197,976,032) | 209,811,668 |
| Other Assets & Liabilities, Net | | 1,880,486 |
| Net Assets | 211,692,154 |
Notes to Portfolio of Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Zero coupon bond. |
| (c) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At October 31, 2021, the total value of these securities amounted to $3,278,975, which represents 1.55% of total net assets. |
| (d) | The rate shown is the seven-day current annualized yield at October 31, 2021. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
| TCRS | Transferable Custody Receipts |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
Fair value measurements (continued)
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of the inputs used to value the Fund’s investments at October 31, 2021:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 207,860,157 | — | 207,860,157 |
| Money Market Funds | 1,951,511 | — | — | 1,951,511 |
| Total Investments in Securities | 1,951,511 | 207,860,157 | — | 209,811,668 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 13 |
Statement of Assets and Liabilities
October 31, 2021
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $197,976,032) | $209,811,668 |
| Receivable for: | |
| Capital shares sold | 98,583 |
| Interest | 2,236,097 |
| Expense reimbursement due from Investment Manager | 526 |
| Prepaid expenses | 4,549 |
| Trustees’ deferred compensation plan | 109,634 |
| Total assets | 212,261,057 |
| Liabilities | |
| Due to custodian | 13,685 |
| Payable for: | |
| Capital shares purchased | 33,334 |
| Distributions to shareholders | 363,388 |
| Management services fees | 2,725 |
| Distribution and/or service fees | 267 |
| Transfer agent fees | 20,180 |
| Compensation of board members | 6,246 |
| Compensation of chief compliance officer | 6 |
| Other expenses | 19,438 |
| Trustees’ deferred compensation plan | 109,634 |
| Total liabilities | 568,903 |
| Net assets applicable to outstanding capital stock | $211,692,154 |
| Represented by | |
| Paid in capital | 199,258,282 |
| Total distributable earnings (loss) | 12,433,872 |
| Total - representing net assets applicable to outstanding capital stock | $211,692,154 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Assets and Liabilities (continued)
October 31, 2021
| Class A | |
| Net assets | $27,129,031 |
| Shares outstanding | 2,562,897 |
| Net asset value per share | $10.59 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.92 |
| Advisor Class | |
| Net assets | $3,872,038 |
| Shares outstanding | 366,090 |
| Net asset value per share | $10.58 |
| Class C | |
| Net assets | $1,710,395 |
| Shares outstanding | 161,631 |
| Net asset value per share | $10.58 |
| Institutional Class | |
| Net assets | $167,019,625 |
| Shares outstanding | 15,778,909 |
| Net asset value per share | $10.58 |
| Institutional 2 Class | |
| Net assets | $101,797 |
| Shares outstanding | 9,599 |
| Net asset value per share(a) | $10.61 |
| Institutional 3 Class | |
| Net assets | $158,948 |
| Shares outstanding | 14,943 |
| Net asset value per share | $10.64 |
| Class V | |
| Net assets | $11,700,320 |
| Shares outstanding | 1,105,351 |
| Net asset value per share | $10.59 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $11.12 |
| (a) | 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.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 15 |
Statement of Operations
Year Ended October 31, 2021
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $775 |
| Interest | 6,050,668 |
| Total income | 6,051,443 |
| Expenses: | |
| Management services fees | 1,041,601 |
| Distribution and/or service fees | |
| Class A | 69,720 |
| Class C | 21,144 |
| Class V | 18,450 |
| Transfer agent fees | |
| Class A | 35,870 |
| Advisor Class | 5,116 |
| Class C | 2,720 |
| Institutional Class | 224,981 |
| Institutional 2 Class | 168 |
| Institutional 3 Class | 33 |
| Class V | 15,819 |
| Compensation of board members | 16,662 |
| Custodian fees | 1,700 |
| Printing and postage fees | 14,677 |
| Registration fees | 34,277 |
| Audit fees | 29,500 |
| Legal fees | 11,969 |
| Compensation of chief compliance officer | 59 |
| Other | 14,168 |
| Total expenses | 1,558,634 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (209,244) |
| Fees waived by distributor | |
| Class C | (6,346) |
| Expense reduction | (120) |
| Total net expenses | 1,342,924 |
| Net investment income | 4,708,519 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 522,371 |
| Net realized gain | 522,371 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (1,134,827) |
| Net change in unrealized appreciation (depreciation) | (1,134,827) |
| Net realized and unrealized loss | (612,456) |
| Net increase in net assets resulting from operations | $4,096,063 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Changes in Net Assets
| | Year Ended
October 31, 2021 | Year Ended
October 31, 2020 |
| Operations | | |
| Net investment income | $4,708,519 | $5,595,123 |
| Net realized gain | 522,371 | 32,131 |
| Net change in unrealized appreciation (depreciation) | (1,134,827) | (590,122) |
| Net increase in net assets resulting from operations | 4,096,063 | 5,037,132 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (538,101) | (607,373) |
| Advisor Class | (86,631) | (87,381) |
| Class C | (31,410) | (54,989) |
| Institutional Class | (3,815,010) | (4,649,852) |
| Institutional 2 Class | (5,352) | (7,304) |
| Institutional 3 Class | (3,766) | (4,177) |
| Class V | (249,485) | (296,003) |
| Total distributions to shareholders | (4,729,755) | (5,707,079) |
| Increase (decrease) in net assets from capital stock activity | (17,242,060) | 8,569,308 |
| Total increase (decrease) in net assets | (17,875,752) | 7,899,361 |
| Net assets at beginning of year | 229,567,906 | 221,668,545 |
| Net assets at end of year | $211,692,154 | $229,567,906 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 17 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | October 31, 2021 | October 31, 2020 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 354,630 | 3,803,971 | 510,066 | 5,433,137 |
| Distributions reinvested | 45,037 | 481,701 | 52,804 | 560,859 |
| Redemptions | (473,874) | (5,080,839) | (177,221) | (1,889,957) |
| Net increase (decrease) | (74,207) | (795,167) | 385,649 | 4,104,039 |
| Advisor Class | | | | |
| Subscriptions | 63,640 | 682,517 | 100,929 | 1,060,437 |
| Distributions reinvested | 8,086 | 86,416 | 8,211 | 87,133 |
| Redemptions | (66,876) | (714,779) | (47,585) | (490,564) |
| Net increase | 4,850 | 54,154 | 61,555 | 657,006 |
| Class C | | | | |
| Subscriptions | 9,299 | 99,347 | 19,488 | 207,144 |
| Distributions reinvested | 2,808 | 30,037 | 4,683 | 49,738 |
| Redemptions | (96,891) | (1,038,099) | (104,031) | (1,109,475) |
| Net decrease | (84,784) | (908,715) | (79,860) | (852,593) |
| Institutional Class | | | | |
| Subscriptions | 670,741 | 7,181,132 | 2,998,862 | 31,902,192 |
| Distributions reinvested | 28,289 | 302,500 | 30,524 | 324,242 |
| Redemptions | (2,085,318) | (22,309,685) | (2,552,449) | (26,987,236) |
| Net increase (decrease) | (1,386,288) | (14,826,053) | 476,937 | 5,239,198 |
| Institutional 2 Class | | | | |
| Subscriptions | 4,381 | 47,170 | 20,351 | 216,419 |
| Distributions reinvested | 470 | 5,042 | 661 | 7,039 |
| Redemptions | (16,510) | (177,094) | (38,020) | (402,206) |
| Net decrease | (11,659) | (124,882) | (17,008) | (178,748) |
| Institutional 3 Class | | | | |
| Subscriptions | 117 | 1,270 | 3,929 | 42,117 |
| Distributions reinvested | 329 | 3,533 | 367 | 3,910 |
| Redemptions | (1,680) | (18,118) | (51) | (543) |
| Net increase (decrease) | (1,234) | (13,315) | 4,245 | 45,484 |
| Class V | | | | |
| Subscriptions | 32,988 | 351,723 | 21,356 | 227,156 |
| Distributions reinvested | 13,578 | 145,224 | 15,989 | 169,826 |
| Redemptions | (105,032) | (1,125,029) | (79,541) | (842,060) |
| Net decrease | (58,466) | (628,082) | (42,196) | (445,078) |
| Total net increase (decrease) | (1,611,788) | (17,242,060) | 789,322 | 8,569,308 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
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Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 19 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A |
| Year Ended 10/31/2021 | $10.62 | 0.21 | (0.03) | 0.18 | (0.21) | (0.00)(c) | (0.21) |
| Year Ended 10/31/2020 | $10.65 | 0.24 | (0.03) | 0.21 | (0.23) | (0.01) | (0.24) |
| Year Ended 10/31/2019 | $10.17 | 0.29 | 0.51 | 0.80 | (0.29) | (0.03) | (0.32) |
| Year Ended 10/31/2018 | $10.62 | 0.28 | (0.42) | (0.14) | (0.28) | (0.03) | (0.31) |
| Year Ended 10/31/2017 | $10.88 | 0.29 | (0.19) | 0.10 | (0.29) | (0.07) | (0.36) |
| Advisor Class |
| Year Ended 10/31/2021 | $10.61 | 0.23 | (0.03) | 0.20 | (0.23) | (0.00)(c) | (0.23) |
| Year Ended 10/31/2020 | $10.64 | 0.26 | (0.02) | 0.24 | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2019 | $10.16 | 0.31 | 0.51 | 0.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2018 | $10.61 | 0.31 | (0.43) | (0.12) | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2017 | $10.87 | 0.32 | (0.20) | 0.12 | (0.31) | (0.07) | (0.38) |
| Class C |
| Year Ended 10/31/2021 | $10.62 | 0.16 | (0.04) | 0.12 | (0.16) | (0.00)(c) | (0.16) |
| Year Ended 10/31/2020 | $10.64 | 0.19 | (0.02) | 0.17 | (0.18) | (0.01) | (0.19) |
| Year Ended 10/31/2019 | $10.16 | 0.24 | 0.51 | 0.75 | (0.24) | (0.03) | (0.27) |
| Year Ended 10/31/2018 | $10.62 | 0.24 | (0.44) | (0.20) | (0.23) | (0.03) | (0.26) |
| Year Ended 10/31/2017 | $10.88 | 0.24 | (0.19) | 0.05 | (0.24) | (0.07) | (0.31) |
| Institutional Class |
| Year Ended 10/31/2021 | $10.62 | 0.23 | (0.04) | 0.19 | (0.23) | (0.00)(c) | (0.23) |
| Year Ended 10/31/2020 | $10.65 | 0.26 | (0.02) | 0.24 | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2019 | $10.17 | 0.31 | 0.51 | 0.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2018 | $10.62 | 0.31 | (0.43) | (0.12) | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2017 | $10.88 | 0.32 | (0.20) | 0.12 | (0.31) | (0.07) | (0.38) |
| Institutional 2 Class |
| Year Ended 10/31/2021 | $10.64 | 0.24 | (0.03) | 0.21 | (0.24) | (0.00)(c) | (0.24) |
| Year Ended 10/31/2020 | $10.66 | 0.28 | (0.02) | 0.26 | (0.27) | (0.01) | (0.28) |
| Year Ended 10/31/2019 | $10.18 | 0.32 | 0.51 | 0.83 | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2018 | $10.64 | 0.31 | (0.43) | (0.12) | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2017 | $10.90 | 0.32 | (0.19) | 0.13 | (0.32) | (0.07) | (0.39) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 10/31/2021 | $10.59 | 1.65% | 0.90% | 0.81%(d) | 1.92% | 8% | $27,129 |
| Year Ended 10/31/2020 | $10.62 | 2.02% | 0.90% | 0.81%(d) | 2.23% | 13% | $28,012 |
| Year Ended 10/31/2019 | $10.65 | 7.92% | 0.90% | 0.80%(d) | 2.75% | 15% | $23,968 |
| Year Ended 10/31/2018 | $10.17 | (1.36%) | 0.90% | 0.81%(d) | 2.72% | 13% | $19,046 |
| Year Ended 10/31/2017 | $10.62 | 0.95% | 0.90%(e) | 0.78%(d),(e) | 2.74% | 5% | $18,512 |
| Advisor Class |
| Year Ended 10/31/2021 | $10.58 | 1.91% | 0.65% | 0.56%(d) | 2.17% | 8% | $3,872 |
| Year Ended 10/31/2020 | $10.61 | 2.27% | 0.65% | 0.56%(d) | 2.48% | 13% | $3,834 |
| Year Ended 10/31/2019 | $10.64 | 8.19% | 0.65% | 0.55%(d) | 3.00% | 15% | $3,188 |
| Year Ended 10/31/2018 | $10.16 | (1.12%) | 0.65% | 0.56%(d) | 2.97% | 13% | $2,568 |
| Year Ended 10/31/2017 | $10.61 | 1.20% | 0.66%(e) | 0.54%(d),(e) | 2.98% | 5% | $3,502 |
| Class C |
| Year Ended 10/31/2021 | $10.58 | 1.10% | 1.65% | 1.26%(d) | 1.47% | 8% | $1,710 |
| Year Ended 10/31/2020 | $10.62 | 1.65% | 1.65% | 1.26%(d) | 1.80% | 13% | $2,617 |
| Year Ended 10/31/2019 | $10.64 | 7.44% | 1.65% | 1.25%(d) | 2.32% | 15% | $3,472 |
| Year Ended 10/31/2018 | $10.16 | (1.90%) | 1.65% | 1.26%(d) | 2.27% | 13% | $5,780 |
| Year Ended 10/31/2017 | $10.62 | 0.50% | 1.66%(e) | 1.24%(d),(e) | 2.29% | 5% | $7,470 |
| Institutional Class |
| Year Ended 10/31/2021 | $10.58 | 1.81% | 0.65% | 0.56%(d) | 2.17% | 8% | $167,020 |
| Year Ended 10/31/2020 | $10.62 | 2.27% | 0.65% | 0.56%(d) | 2.49% | 13% | $182,343 |
| Year Ended 10/31/2019 | $10.65 | 8.19% | 0.65% | 0.55%(d) | 3.01% | 15% | $177,665 |
| Year Ended 10/31/2018 | $10.17 | (1.11%) | 0.65% | 0.56%(d) | 2.97% | 13% | $166,289 |
| Year Ended 10/31/2017 | $10.62 | 1.20% | 0.66%(e) | 0.54%(d),(e) | 2.98% | 5% | $199,199 |
| Institutional 2 Class |
| Year Ended 10/31/2021 | $10.61 | 1.96% | 0.59% | 0.50% | 2.23% | 8% | $102 |
| Year Ended 10/31/2020 | $10.64 | 2.43% | 0.59% | 0.49% | 2.61% | 13% | $226 |
| Year Ended 10/31/2019 | $10.66 | 8.25% | 0.59% | 0.49% | 3.03% | 15% | $408 |
| Year Ended 10/31/2018 | $10.18 | (1.15%) | 0.57% | 0.50% | 3.01% | 13% | $41 |
| Year Ended 10/31/2017 | $10.64 | 1.28% | 0.56%(e) | 0.47%(e) | 3.05% | 5% | $10 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 21 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $10.67 | 0.24 | (0.02) | 0.22 | (0.25) | (0.00)(c) | (0.25) |
| Year Ended 10/31/2020 | $10.70 | 0.27 | (0.02) | 0.25 | (0.27) | (0.01) | (0.28) |
| Year Ended 10/31/2019 | $10.22 | 0.33 | 0.50 | 0.83 | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2018 | $10.67 | 0.32 | (0.42) | (0.10) | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2017(f) | $10.56 | 0.22 | 0.11(g) | 0.33 | (0.22) | — | (0.22) |
| Class V |
| Year Ended 10/31/2021 | $10.62 | 0.22 | (0.03) | 0.19 | (0.22) | (0.00)(c) | (0.22) |
| Year Ended 10/31/2020 | $10.65 | 0.25 | (0.03) | 0.22 | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2019 | $10.17 | 0.30 | 0.51 | 0.81 | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2018 | $10.62 | 0.29 | (0.42) | (0.13) | (0.29) | (0.03) | (0.32) |
| Year Ended 10/31/2017 | $10.88 | 0.30 | (0.19) | 0.11 | (0.30) | (0.07) | (0.37) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Rounds to zero. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor
Class | Class C | Institutional
Class | Institutional 2
Class | Class V |
| 10/31/2017 | 0.03% | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% |
| (f) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (g) | 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 subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (h) | Annualized. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $10.64 | 2.02% | 0.55% | 0.45% | 2.28% | 8% | $159 |
| Year Ended 10/31/2020 | $10.67 | 2.38% | 0.54% | 0.45% | 2.58% | 13% | $173 |
| Year Ended 10/31/2019 | $10.70 | 8.28% | 0.54% | 0.44% | 3.12% | 15% | $128 |
| Year Ended 10/31/2018 | $10.22 | (0.99%) | 0.54% | 0.45% | 3.08% | 13% | $108 |
| Year Ended 10/31/2017(f) | $10.67 | 3.10% | 0.55%(h) | 0.45%(h) | 3.21%(h) | 5% | $110 |
| Class V |
| Year Ended 10/31/2021 | $10.59 | 1.76% | 0.80% | 0.71%(d) | 2.02% | 8% | $11,700 |
| Year Ended 10/31/2020 | $10.62 | 2.12% | 0.80% | 0.71%(d) | 2.34% | 13% | $12,363 |
| Year Ended 10/31/2019 | $10.65 | 8.03% | 0.80% | 0.70%(d) | 2.86% | 15% | $12,839 |
| Year Ended 10/31/2018 | $10.17 | (1.26%) | 0.80% | 0.71%(d) | 2.82% | 13% | $15,825 |
| Year Ended 10/31/2017 | $10.62 | 1.05% | 0.81%(e) | 0.69%(d),(e) | 2.83% | 5% | $17,934 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 23 |
Notes to Financial Statements
October 31, 2021
Note 1. Organization
Columbia Massachusetts Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-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 each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Effective April 1, 2021, Class C shares automatically convert to Class A shares after 8 years. Prior to April 1, 2021, Class C shares automatically converted to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
| 24 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 25 |
Notes to Financial Statements (continued)
October 31, 2021
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2021 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| 26 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
For the year ended October 31, 2021, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.13 |
| Advisor Class | 0.13 |
| Class C | 0.13 |
| Institutional Class | 0.13 |
| Institutional 2 Class | 0.07 |
| Institutional 3 Class | 0.02 |
| Class V | 0.13 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2021, these minimum account balance fees reduced total expenses of the Fund by $120.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has contractually agreed to waive a portion of the distribution fee for Class C shares through February 28, 2022 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 at the sole discretion of the Board of Trustees.
Shareholder services fees
The Fund has adopted a shareholder services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40% of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2021, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 8,921 |
| Class C | — | 1.00(b) | 410 |
| Class V | 4.75 | 0.50 - 1.00(c) | — |
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 27 |
Notes to Financial Statements (continued)
October 31, 2021
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
February 28, 2022 |
| Class A | 0.81% |
| Advisor Class | 0.56 |
| Class C | 1.56 |
| Institutional Class | 0.56 |
| Institutional 2 Class | 0.50 |
| Institutional 3 Class | 0.45 |
| Class V | 0.71 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with certain shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. 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 October 31, 2021, these differences were primarily due to differing treatment for trustees’ deferred compensation, principal and/or interest of fixed income securities and distributions. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The Fund did not have any permanent differences; therefore, no reclassifications were made.
| 28 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
The tax character of distributions paid during the years indicated was as follows:
| Year Ended October 31, 2021 | Year Ended October 31, 2020 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 5 | 4,712,321 | 17,429 | 4,729,755 | 552 | 5,571,514 | 135,013 | 5,707,079 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2021, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| — | 391,014 | 517,267 | — | 12,003,730 |
At October 31, 2021, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 197,807,938 | 12,199,457 | (195,727) | 12,003,730 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $16,420,454 and $25,374,573, respectively, for the year ended October 31, 2021. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended October 31, 2021.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 29 |
Notes to Financial Statements (continued)
October 31, 2021
investment manager, severally and not jointly, permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended October 31, 2021.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
| 30 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The COVID-19 pandemic has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and other natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Non-diversification risk
A non-diversified fund is permitted to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 31 |
Notes to Financial Statements (continued)
October 31, 2021
Shareholder concentration risk
At October 31, 2021, one unaffiliated shareholder of record owned 73.1% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates 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 Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 32 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Massachusetts Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Massachusetts Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of October 31, 2021, the related statement of operations for the year ended October 31, 2021, the statement of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian and broker. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 21, 2021
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 33 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended October 31, 2021. Shareholders will be notified in early 2022 of the amounts for use in preparing 2021 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $548,490 | 99.99% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 171 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 34 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney; specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018 | 171 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee - 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; Director, Robina Foundation, 2009-2020 (Chair, 2014-2020) |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 171 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee) since 2019 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 169 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020(a) | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 169 | Director, The Autism Project, since March 2015; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020(a) | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 2001-2004 | 169 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 35 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 171 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2019; Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 171 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 169 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 169 | None |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 169 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
| 36 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, Dean Witter Reynolds, Inc., 1976-1980 | 171 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1946 | Trustee since 2008 | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006; Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 171 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, RenaissanceRe Holdings Ltd. since May 2008; former Director, Citigroup Inc. and Citibank, N.A., 2009-2019; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 171 | Director, BlueCross BlueShield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation |
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 37 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020(a) | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services) since January 2016; Non-executive Member of the Investment Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services) since August 2018; Advisor, Paradigm Asset Management since November 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008 - January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 169 | Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions); Independent Director, Investment Committee, Sarona Asset Management |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 171 | Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Santomero and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as a director of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| (a) | J. Kevin Connaughton was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective March 1, 2016. Natalie A. Trunow was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective September 1, 2016. Olive M. Darragh was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective June 10, 2019. Shareholders of the Funds elected Mr. Connaughton and Mses. Darragh and Trunow as Trustees of CFST, CFST I, CFST II, CET I, CET II, and CFVST II, effective January 1, 2021, and of CFVIT, effective July 1, 2020. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021(a) | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC (since April 2015); officer of Columbia Funds and affiliated funds since 2020. | 171 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
| (a) | Mr. Beckman serves as the President and Principal Executive Officer of the Columbia Funds (since 2021). |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 38 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is the President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June 2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee of Columbia Funds Complex until January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary | Formerly, Trustee of Columbia Funds Complex until November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company September 2010 – September 2020. |
Colin Moore
290 Congress Street
Boston, MA 02210
1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 39 |
TRUSTEES AND OFFICERS (continued)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Approval of Management Agreement
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia Massachusetts Intermediate Municipal Bond Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee in November and December 2020 and March, April and June 2021, including reports providing the results of analyses performed by an independent third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and a comprehensive response to requests for information by independent legal counsels to the Independent Trustees (Independent Legal Counsel) in a letter to the Investment Manager, to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees, such as the Contracts Committee, the Investment Oversight Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 15, 2021 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered 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 Broadridge, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by Broadridge; |
| 40 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
| • | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department’s processes, systems and oversight, over the past several years, as well as planned 2021 initiatives in this regard. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel. The Board also observed that the Investment Manager has been able to effectively manage, operate and distribute the Funds through the COVID-19 pandemic period with no disruptions in services provided.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2020 in the performance of administrative services, and noted the various enhancements anticipated for 2021. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes are proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Funds under the Fund Management Agreements.
After reviewing these and related factors (including investment performance as discussed below), 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 Management Agreement supported the continuation of the Management Agreement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 41 |
Approval of Management Agreement (continued)
Investment performance
In this connection, the Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the performance of a benchmark index, (iii) the percentage ranking of the Fund among its comparison group, (iv) the Fund’s performance relative to peers and benchmarks and (v) the net assets of the Fund. The Board observed that Fund performance was well within the range of that of peers.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the Investment Manager’s profitability.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that in 2020 the Board had considered 2019 profitability and that the 2021 information showed that the profitability generated by the Investment Manager in 2020 increased slightly from 2019 levels. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, 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 Management Agreement.
| 42 | Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
Economies of scale
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 as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 15, 2021, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
Columbia Massachusetts Intermediate Municipal Bond Fund | Annual Report 2021
| 43 |
Columbia Massachusetts Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2021 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2021
Columbia Strategic New York Municipal Income Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified by mail and provided with a website address to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Strategic New York Municipal Income Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
Investment objective
The Fund seeks total return, with a focus on income exempt from federal income tax and New York individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2016
| Average annual total returns (%) (for the period ended October 31, 2021) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 09/26/86 | 5.23 | 3.29 | 4.03 |
| | Including sales charges | | 2.07 | 2.67 | 3.72 |
| Advisor Class* | 03/19/13 | 5.46 | 3.54 | 4.25 |
| Class C | Excluding sales charges | 08/01/97 | 4.72 | 2.81 | 3.56 |
| | Including sales charges | | 3.72 | 2.81 | 3.56 |
| Institutional Class | 09/01/11 | 5.46 | 3.53 | 4.28 |
| Institutional 2 Class* | 11/08/12 | 5.52 | 3.58 | 4.28 |
| Institutional 3 Class* | 03/01/17 | 5.56 | 3.58 | 4.18 |
| Bloomberg New York Municipal Bond Index | | 3.52 | 3.18 | 3.68 |
| Bloomberg Municipal Bond Index | | 2.64 | 3.41 | 3.88 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg New York Municipal Bond Index is a subset of the Bloomberg Municipal Bond Index consisting solely of bonds issued by obligors located in the state of New York. Effective August 24, 2021, the Bloomberg Barclays New York Municipal Bond Index was re-branded as the Bloomberg New York Municipal Bond Index.
The Bloomberg 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. Effective August 24, 2021, the Bloomberg Barclays Municipal Bond Index was re-branded as the Bloomberg Municipal Bond Index.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Fund performance may be significantly negatively impacted by the economic impact of the COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and capital markets around the world in ways that will likely continue and may change in unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate pre-existing political, social and economic risks in certain countries and globally.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 3 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2011 — October 31, 2021)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Strategic New York Municipal Income Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at October 31, 2021) |
| AAA rating | 4.3 |
| AA rating | 27.8 |
| A rating | 37.3 |
| BBB rating | 14.5 |
| BB rating | 2.2 |
| B rating | 1.8 |
| D rating | 0.6 |
| Not rated | 11.5 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Manager Discussion of Fund Performance
For the 12-month period that ended October 31, 2021, the Fund’s Class A shares returned 5.23% excluding sales charges. Institutional Class shares of the Fund returned 5.46%. For the same time period, the Fund’s benchmark, the Bloomberg New York Municipal Bond Index, returned 3.52%, and the national municipal bond market, as measured by the Bloomberg Municipal Bond Index, returned 2.64%.
Market overview
As the period began, there was a significant increase in municipal bond issuance ahead of the November election. The resulting excess supply and upward rate pressure pushed municipal total returns into negative territory. A renewed bid for risk assets, including municipal bonds, was spurred as election volatility failed to materialize and positive COVID-19 vaccination news emerged. Following the pre-election flood of supply, municipal investors were left with limited new issuance to meet demand in November and December, a dynamic that helped end 2020 on a positive note.
The strong municipal performance that closed 2020 continued into the new year. Despite the gradual upward march of U.S. Treasury yields, municipal performance held positive through the first month of the year, as lighter supply and tighter spreads produced positive excess returns versus Treasuries. By mid-February, however, municipals succumbed to the upward pull of Treasury yields, as municipal yields repriced higher between 20 and 40 basis points (bps) across much of the curve, with only the shortest maturities avoiding substantial yield spikes. (A basis point is 1/100 of a percent.) However, negative total returns brought on by higher yields did not spark an outflow cycle. Rather, municipal investors took the opportunity to put cash to work at higher yield levels, and by the end of March 2021, yields had retraced lower 3–6 bps, reviving outperformance versus Treasuries and closing the first quarter on a positive note.
Federal stimulus via the $1.9 trillion American Rescue Plan provided some measure of indirect support for portions of the municipal market. While rates markets focused on the possible inflationary effects of such a large stimulus package, municipal investors chose to weigh the positive credit impacts. Stimulus, combined with tax revenues that have broadly surprised to the upside, continued to support improvement in municipal credit fundamentals.
By mid-2021, credit concerns that arose during COVID-19 shutdowns had diminished, and lower quality segments of the market led positive performance. Though pockets of value remained in certain sectors or issuers, the dramatic post-COVID-19 recovery had resulted in relatively full valuations across much of the market. With the COVID-19 shutdowns lifted, it was evident that most states’ expectations of massive revenue gaps failed to materialize. Tax revenue performance was rather strong even through the depths of the pandemic, with projected deficits turning into actual surpluses for many state and local governments. Surprise revenue outperformance, coupled with direct federal support via the American Rescue Plan, bolstered credit fundamentals for most issuers.
A Delta-variant-driven resurgence in COVID-19 cases weighed on investors’ minds as the third quarter of 2021 began. Initially, the expectation of slower growth pushed Treasury yields lower with 10-year Treasury yields reaching a low of 1.17% in early August. Undeterred by Delta, the Federal Reserve indicated that the tapering of asset purchases would likely begin soon but gave no timeline for the start of interest rate hikes. Supply chain disruptions, energy shortages and transportation bottlenecks all pressured inflation and interest rates higher. Interest rate volatility led most fixed-income sectors to negative returns during the third quarter of 2021. However, despite a negative third quarter, municipal performance remained one of the few positive corners of the domestic fixed-income landscape on a year-to-date basis. Post-COVID-19 tax revenue performance in most locales continued to outpace expectations, improving credit fundamentals and leaving many municipal issuers in healthy fiscal positions.
In the final month of the period, a weaker tone and the continuation of upward rate pressure weighed on municipal returns, as the national muni market ended with another month of negative total returns. Policy negotiations in Washington remained fluid, but by period-end had taken a turn towards removing tax proposals that would have been stimulative for municipal demand. Despite negative returns in the last few months of the reporting period, both the New York and the national municipal bond market returned positive results for the 12-month period that ended October 31, 2021.
Residential real estate prices have been a bright spot for the state economy in both New York City (NYC) and the broader state, experiencing a similar surge in valuations as the broader nation. Higher end residential real estate sales and price points have remained especially robust throughout the year and residential rental rates and vacancy rates in NYC have rebounded to at or near pre-COVID-19 levels – data that pushes back on the notion that the pandemic and social unrest have
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 5 |
Manager Discussion of Fund Performance (continued)
had a permanent negative impact on the economic outlook for New York State and NYC. While commercial & office space lease activity has remained slow, there have been some significant large lease signings from notable tech companies such as Google and Facebook.
The somewhat sluggish, but consistent comeback of the state’s economy, along with a frequent scarcity of new issue supply that kept New York municipal bond prices firm, helped the benchmark outperform the national index for the year.
The broad theme for the New York municipal market for the reporting period was the outperformance by longer maturities and medium to lower quality bonds, and by revenue bonds versus general obligation bonds.
The Fund’s notable contributors during the period
| • | The Fund’s outperformance of its benchmark was driven primarily by sector and maturity allocation, as well as the Fund’s overweight to medium and lower quality bonds. |
| • | The Fund’s selections in the special tax, continuing care retirement communities (CCRCs), transportation and local general obligation (GO) sectors, as well as in the 8-22 and 25 year+ maturity ranges, outperformed those in the benchmark. |
| • | The Fund’s overweights in bonds rated single A and below and in non-rated bonds, along with the Fund’s selections within the AA rating category, also contributed positively to results during the period. |
| • | In addition, the Fund’s duration was longer than that of the benchmark throughout the period, which was also a positive contributor. |
The Fund’s notable detractors during the period
| • | Relative to the benchmark, an overweight in the housing sector and an underweight in airport bonds detracted from Fund results during the period. |
| • | Security selection in water and sewer bonds also weighed on Fund performance. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a Fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. Investing in derivatives is a specialized activity that involves special risks, which may result in significant losses. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2021 — October 31, 2021 |
| | Account value at the
beginning of the
period ($) | 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 | 1,004.20 | 1,021.09 | 3.85 | 3.88 | 0.77 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,005.40 | 1,022.34 | 2.60 | 2.62 | 0.52 |
| Class C | 1,000.00 | 1,000.00 | 1,001.90 | 1,018.85 | 6.09 | 6.14 | 1.22 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,005.40 | 1,022.34 | 2.60 | 2.62 | 0.52 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,005.50 | 1,022.39 | 2.55 | 2.57 | 0.51 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,005.80 | 1,022.64 | 2.30 | 2.32 | 0.46 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 7 |
Portfolio of Investments
October 31, 2021
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 97.7% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Air Transportation 3.6% |
| New York City Industrial Development Agency(a) |
| Refunding Revenue Bonds |
| Trips Obligated Group |
| Series 2012A |
| 07/01/2028 | 5.000% | | 2,000,000 | 2,050,043 |
| New York Transportation Development Corp.(a) |
| Refunding Revenue Bonds |
| American Airlines, Inc. Project |
| Series 2021 |
| 08/01/2031 | 3.000% | | 1,300,000 | 1,386,057 |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2020 |
| 12/01/2040 | 4.000% | | 600,000 | 673,904 |
| 12/01/2041 | 4.000% | | 600,000 | 671,641 |
| Revenue Bonds |
| Delta Air Lines, Inc. Laguardia |
| Series 2020 |
| 10/01/2040 | 5.000% | | 2,000,000 | 2,452,062 |
| Total | 7,233,707 |
| Airport 0.3% |
| Niagara Frontier Transportation Authority(a) |
| Refunding Revenue Bonds |
| Buffalo Niagara International Airport |
| Series 2019 |
| 04/01/2039 | 5.000% | | 525,000 | 637,439 |
| Charter Schools 3.2% |
| Build NYC Resource Corp. |
| Revenue Bonds |
| Academic Leadership Charter School Project |
| Series 2021 |
| 06/15/2036 | 4.000% | | 200,000 | 224,496 |
| Bronx Charter School for Excellence |
| Series 2013 |
| 04/01/2033 | 5.000% | | 1,000,000 | 1,044,061 |
| International Leadership Charter School |
| Series 2013 |
| 07/01/2033 | 5.750% | | 1,500,000 | 1,546,889 |
| New World Preparatory Charter School Project |
| Series 2021 |
| 06/15/2051 | 4.000% | | 690,000 | 732,672 |
| Build NYC Resource Corp.(b) |
| Revenue Bonds |
| International Leadership Charter School |
| Series 2016 |
| 07/01/2046 | 6.250% | | 265,000 | 286,958 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Richmond Preparatory School Project Social Bonds |
| Series 2021 |
| 06/01/2056 | 5.000% | | 1,250,000 | 1,377,360 |
| Monroe County Industrial Development Corp.(b) |
| Revenue Bonds |
| True North Rochester Preparatory Charter School Project |
| Series 2020 |
| 06/01/2059 | 5.000% | | 1,000,000 | 1,148,071 |
| Total | 6,360,507 |
| Disposal 1.0% |
| New York State Environmental Facilities Corp.(a),(b) |
| Revenue Bonds |
| Casella Waste Systems, Inc. |
| Series 2019 (Mandatory Put 12/03/29) |
| 12/01/2044 | 2.875% | | 2,000,000 | 2,099,482 |
| Health Services 0.8% |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Icahn School of Medicine at Mount Sinai |
| Series 2015 |
| 07/01/2040 | 5.000% | | 1,500,000 | 1,695,810 |
| Higher Education 5.4% |
| Build NYC Resource Corp. |
| Refunding Revenue Bonds |
| City University of New York-Queens |
| Series 2014A |
| 06/01/2043 | 5.000% | | 1,000,000 | 1,101,093 |
| Manhattan College Project |
| Series 2017 |
| 08/01/2042 | 4.000% | | 750,000 | 828,624 |
| Dutchess County Local Development Corp. |
| Refunding Revenue Bonds |
| Culinary Institute of America (The) |
| Series 2018 |
| 07/01/2033 | 5.000% | | 230,000 | 271,671 |
| 07/01/2034 | 5.000% | | 500,000 | 589,729 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Fordham University |
| Series 2017 |
| 07/01/2035 | 4.000% | | 1,000,000 | 1,138,466 |
| St. John’s University |
| Series 2015A |
| 07/01/2037 | 5.000% | | 1,000,000 | 1,131,953 |
| Teacher’s College |
| Series 2017 |
| 07/01/2033 | 4.000% | | 500,000 | 570,413 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| New York University |
| Series 2019A |
| 07/01/2042 | 5.000% | | 1,000,000 | 1,255,259 |
| Rochester Institute of Technology |
| Series 2019 |
| 07/01/2049 | 5.000% | | 1,250,000 | 1,531,057 |
| St. John’s University |
| Series 2007C (NPFGC) |
| 07/01/2026 | 5.250% | | 1,205,000 | 1,448,023 |
| St. Lawrence County Industrial Development Agency(c) |
| Refunding Revenue Bonds |
| Clarkson University Project |
| Series 2021 |
| 09/01/2040 | 5.000% | | 200,000 | 245,206 |
| 09/01/2041 | 5.000% | | 225,000 | 275,118 |
| St. Lawrence County Industrial Development Agency |
| Refunding Revenue Bonds |
| Clarkson University Project |
| Series 2021 |
| 09/01/2040 | 5.000% | | 200,000 | 247,526 |
| Troy Capital Resource Corp. |
| Refunding Revenue Bonds |
| Forward Delivery - Rensselaer Polytechnic Institute Project |
| Series 2020 |
| 09/01/2038 | 5.000% | | 250,000 | 314,830 |
| Total | 10,948,968 |
| Hospital 7.4% |
| Monroe County Industrial Development Corp. |
| Refunding Revenue Bonds |
| University of Rochester Project |
| Series 2017 |
| 07/01/2037 | 4.000% | | 500,000 | 570,838 |
| Nassau County Local Economic Assistance Corp. |
| Revenue Bonds |
| Catholic Health Services of Long Island |
| Series 2014 |
| 07/01/2032 | 5.000% | | 750,000 | 831,206 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Catholic Health System Obligation Group |
| Series 2019 |
| 07/01/2040 | 4.000% | | 350,000 | 377,106 |
| 07/01/2041 | 5.000% | | 695,000 | 802,347 |
| Montefiore Obligated Group |
| Series 2020A |
| 09/01/2050 | 4.000% | | 2,000,000 | 2,240,057 |
| Montefiore Obligation Group |
| Series 2018 |
| 08/01/2035 | 5.000% | | 350,000 | 421,683 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| North Shore - Long Island Jewish Obligation Group |
| Series 2015A |
| 05/01/2037 | 5.000% | | 2,000,000 | 2,274,149 |
| NYU Hospitals Center |
| Series 2014 |
| 07/01/2036 | 5.000% | | 1,000,000 | 1,111,639 |
| Series 2016 |
| 07/01/2040 | 4.000% | | 1,000,000 | 1,102,843 |
| Revenue Bonds |
| Memorial Sloan Kettering Cancer Center |
| Series 2019 |
| 07/01/2039 | 5.000% | | 1,000,000 | 1,264,860 |
| NYU Langone Hospitals Obligated Group |
| Series 2020A |
| 07/01/2050 | 4.000% | | 2,000,000 | 2,295,900 |
| New York State Dormitory Authority(b) |
| Refunding Revenue Bonds |
| Orange Regional Medical Center |
| Series 2017 |
| 12/01/2037 | 5.000% | | 400,000 | 473,265 |
| Westchester County Local Development Corp. |
| Refunding Revenue Bonds |
| Westchester Medical Center |
| Series 2016 |
| 11/01/2037 | 3.750% | | 1,000,000 | 1,043,783 |
| Total | 14,809,676 |
| Independent Power 0.2% |
| Suffolk County Industrial Development Agency(a) |
| Revenue Bonds |
| Nissequogue Cogen Partners Facility |
| Series 1998 |
| 01/01/2023 | 5.500% | | 315,000 | 317,791 |
| Joint Power Authority 0.9% |
| New York Power Authority |
| Refunding Revenue Bonds |
| Series 2020A |
| 11/15/2050 | 4.000% | | 1,000,000 | 1,158,663 |
| 11/15/2055 | 4.000% | | 500,000 | 576,761 |
| Total | 1,735,424 |
| Local Appropriation 0.5% |
| Suffolk County Judicial Facilities Agency |
| Revenue Bonds |
| H. Lee Dennison Building |
| Series 2013 |
| 11/01/2025 | 5.000% | | 1,000,000 | 1,075,542 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 9 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Local General Obligation 8.3% |
| City of New York |
| Limited General Obligation Bonds |
| Series 2021L-5 |
| 04/01/2033 | 5.000% | | 1,000,000 | 1,300,300 |
| Unlimited General Obligation Bonds |
| Series 2016B1 |
| 12/01/2032 | 5.000% | | 500,000 | 600,196 |
| Series 2017B-1 |
| 10/01/2041 | 4.000% | | 1,000,000 | 1,135,479 |
| Subordinated Series 2018F-1 |
| 04/01/2043 | 5.000% | | 4,000,000 | 4,811,497 |
| Unlimited General Obligation Refunding Bonds |
| Fiscal 2015 |
| Series 2014A |
| 08/01/2031 | 5.000% | | 500,000 | 560,341 |
| City of Poughkeepsie |
| Limited General Obligation Refunding Bonds |
| Series 2019 |
| 06/01/2031 | 5.000% | | 600,000 | 681,532 |
| County of Erie |
| Limited General Obligation Bonds |
| Public Improvement |
| Series 2015A |
| 09/15/2028 | 5.000% | | 275,000 | 316,618 |
| County of Nassau |
| Limited General Obligation Bonds |
| General Improvement |
| Series 2018B (AGM) |
| 07/01/2034 | 5.000% | | 2,000,000 | 2,456,588 |
| Series 2017B |
| 04/01/2037 | 5.000% | | 2,000,000 | 2,374,120 |
| Limited General Obligation Notes |
| Series 2019A (AGM) |
| 04/01/2046 | 5.000% | | 1,000,000 | 1,220,080 |
| Limited General Obligation Refunding Bonds |
| Series 2016A |
| 01/01/2038 | 5.000% | | 1,000,000 | 1,158,956 |
| Total | 16,615,707 |
| Multi-Family 7.3% |
| Amherst Development Corp. |
| Refunding Revenue Bonds |
| University of Buffalo Student Housing |
| Series 2017 (AGM) |
| 10/01/2045 | 5.000% | | 500,000 | 588,557 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Housing Development Corp. |
| Revenue Bonds |
| Sustainable Neighborhood |
| Series 2017G |
| 11/01/2047 | 3.700% | | 2,000,000 | 2,126,207 |
| New York City Housing Development Corp. |
| Refunding Revenue Bonds |
| Sustainable Neighborhood |
| Series 2019 |
| 11/01/2039 | 3.800% | | 1,500,000 | 1,622,909 |
| 11/01/2049 | 3.650% | | 1,000,000 | 1,061,628 |
| Revenue Bonds |
| Series 2018K |
| 11/01/2048 | 4.000% | | 1,000,000 | 1,075,974 |
| Sustainable Neighborhood |
| Series 2019 |
| 11/01/2049 | 3.250% | | 2,000,000 | 2,055,168 |
| New York State Dormitory Authority |
| Revenue Bonds |
| State University of New York |
| Series 2019 |
| 07/01/2049 | 4.000% | | 500,000 | 566,894 |
| New York State Housing Finance Agency |
| Revenue Bonds |
| Affordable Housing |
| Series 2017M |
| 11/01/2042 | 3.650% | | 750,000 | 795,128 |
| Series 2019D |
| 11/01/2044 | 3.700% | | 1,000,000 | 1,073,869 |
| Climate Bond Certified/Sustainability Bonds |
| Series 2019 |
| 11/01/2044 | 3.150% | | 840,000 | 870,374 |
| Green Bonds |
| Series 2017H |
| 11/01/2047 | 3.650% | | 1,360,000 | 1,425,678 |
| Series 2017L (GNMA) |
| 11/01/2037 | 3.300% | | 540,000 | 569,015 |
| Sustainability Bonds |
| Series 2019I |
| 11/01/2039 | 3.000% | | 800,000 | 836,560 |
| Total | 14,667,961 |
| Municipal Power 2.6% |
| Long Island Power Authority |
| Refunding Revenue Bonds |
| Series 2014A |
| 09/01/2044 | 5.000% | | 1,000,000 | 1,112,706 |
| Revenue Bonds |
| Electric System General Purpose |
| Series 2015B |
| 09/01/2045 | 5.000% | | 1,380,000 | 1,582,117 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2018 |
| 09/01/2038 | 5.000% | | 1,000,000 | 1,244,836 |
| Puerto Rico Electric Power Authority(d),(e) |
| Revenue Bonds |
| Series 2012A |
| 07/01/2042 | 0.000% | | 1,250,000 | 1,221,875 |
| Total | 5,161,534 |
| Nursing Home 0.8% |
| Monroe County Industrial Development Corp. |
| Refunding Revenue Bonds |
| St. Ann’s Community Project |
| Series 2019 |
| 01/01/2050 | 5.000% | | 1,500,000 | 1,665,091 |
| Other Bond Issue 2.2% |
| New York Liberty Development Corp. |
| Refunding Revenue Bonds |
| Green Bonds - 4 World Trade Center Project |
| Series 2021 |
| 11/15/2051 | 3.000% | | 500,000 | 509,931 |
| New York Transportation Development Corp.(a) |
| Revenue Bonds |
| New York State Thruway Service Areas Project |
| Series 2021 |
| 10/31/2046 | 4.000% | | 1,500,000 | 1,690,332 |
| 04/30/2053 | 4.000% | | 2,000,000 | 2,237,287 |
| Total | 4,437,550 |
| Other Industrial Development Bond 0.2% |
| New York Liberty Development Corp. |
| Revenue Bonds |
| Goldman Sachs Headquarters |
| Series 2007 |
| 10/01/2037 | 5.500% | | 260,000 | 378,177 |
| Pool / Bond Bank 0.8% |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| New School |
| Series 2015 |
| 07/01/2050 | 5.000% | | 1,395,000 | 1,581,681 |
| Unrefunded Revenue Bonds |
| School Districts Bond Financing Program |
| Series 2009 (AGM) |
| 10/01/2036 | 5.125% | | 15,000 | 15,055 |
| Total | 1,596,736 |
| Ports 8.3% |
| Port Authority of New York & New Jersey(a) |
| Refunding Revenue Bonds |
| 193rd Series 2015 |
| 10/15/2035 | 5.000% | | 3,135,000 | 3,601,965 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Consolidated 186th |
| Series 2014 |
| 10/15/2044 | 5.000% | | 1,000,000 | 1,102,357 |
| Consolidated 197th |
| Series 2016-197 |
| 11/15/2036 | 5.000% | | 1,000,000 | 1,181,212 |
| Consolidated 206th |
| Series 2017-206 |
| 11/15/2047 | 5.000% | | 1,000,000 | 1,185,535 |
| Series 2018-207 |
| 09/15/2043 | 4.000% | | 1,500,000 | 1,698,398 |
| Port Authority of New York & New Jersey |
| Refunding Revenue Bonds |
| Consolidated 211th |
| Series 2018 |
| 09/01/2043 | 4.000% | | 3,000,000 | 3,461,336 |
| Revenue Bonds |
| Consolidated 85th |
| Series 1993 |
| 03/01/2028 | 5.375% | | 1,640,000 | 1,937,273 |
| Consolidated 93rd |
| Series 1994 |
| 06/01/2094 | 6.125% | | 2,250,000 | 2,530,082 |
| Total | 16,698,158 |
| Power 0.2% |
| Long Island Power Authority |
| Revenue Bonds |
| Series 2021A |
| 09/01/2037 | 5.000% | | 415,000 | 430,793 |
| Prep School 1.0% |
| Build NYC Resource Corp. |
| Refunding Revenue Bonds |
| Series 2015 |
| 06/01/2033 | 5.000% | | 500,000 | 565,033 |
| 06/01/2035 | 5.000% | | 700,000 | 790,493 |
| Rensselaer County Industrial Development Agency |
| Refunding Revenue Bonds |
| Emma Willard School Project |
| Series 2015A |
| 01/01/2036 | 5.000% | | 500,000 | 561,894 |
| Total | 1,917,420 |
| Recreation 1.9% |
| New York City Industrial Development Agency |
| Refunding Revenue Bonds |
| Yankee Stadium Project - Pilot |
| Series 2020 |
| 03/01/2045 | 4.000% | | 500,000 | 560,072 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 11 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New York City Trust for Cultural Resources |
| Refunding Revenue Bonds |
| American Museum of Natural History |
| Series 2014S |
| 07/01/2041 | 5.000% | | 2,000,000 | 2,211,519 |
| Western Regional Off-Track Betting Corp.(b) |
| Refunding Revenue Bonds |
| Series 2021 |
| 12/01/2041 | 4.125% | | 1,000,000 | 976,580 |
| Total | 3,748,171 |
| Refunded / Escrowed 3.0% |
| Build NYC Resource Corp. |
| Prerefunded 07/01/24 Revenue Bonds |
| New York Methodist Hospital Project |
| Series 2014 |
| 07/01/2029 | 5.000% | | 225,000 | 252,279 |
| 07/01/2030 | 5.000% | | 180,000 | 201,823 |
| Prerefunded 08/01/25 Revenue Bonds |
| YMCA of Greater New York Project |
| Series 2015 |
| 08/01/2040 | 5.000% | | 900,000 | 1,046,576 |
| City of Syracuse(a) |
| Prerefunded 11/29/21 Unlimited General Obligation Bonds |
| Airport Terminal Security Access Improvement |
| Series 2011 |
| 11/01/2036 | 5.000% | | 1,750,000 | 1,756,172 |
| Long Island Power Authority |
| Prerefunded 09/01/22 Revenue Bonds |
| Series 2012A |
| 09/01/2037 | 5.000% | | 330,000 | 343,242 |
| 09/01/2037 | 5.000% | | 255,000 | 265,163 |
| New York State Dormitory Authority |
| Prerefunded 07/01/24 Revenue Bonds |
| Pratt Institute |
| Series 2015A |
| 07/01/2044 | 5.000% | | 1,000,000 | 1,121,241 |
| Prerefunded 07/01/25 Revenue Bonds |
| New School |
| Series 2015 |
| 07/01/2050 | 5.000% | | 105,000 | 121,889 |
| Onondaga Civic Development Corp. |
| Prerefunded 12/01/21 Revenue Bonds |
| Upstate Properties Development, Inc. |
| Series 2011 |
| 12/01/2041 | 5.250% | | 945,000 | 948,865 |
| Total | 6,057,250 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Resource Recovery 1.0% |
| Build NYC Resource Corp.(a),(b) |
| Refunding Revenue Bonds |
| Pratt Paper, Inc. Project |
| Series 2014 |
| 01/01/2035 | 5.000% | | 750,000 | 831,293 |
| Jefferson County Industrial Development Agency(a),(b) |
| Revenue Bonds |
| ReEnergy Black River LLC P |
| Series 2019 |
| 01/01/2024 | 5.250% | | 1,280,000 | 1,246,309 |
| Total | 2,077,602 |
| Retirement Communities 5.3% |
| Brookhaven Local Development Corp. |
| Refunding Revenue Bonds |
| Jefferson’s Ferry Project |
| Series 2016 |
| 11/01/2036 | 5.250% | | 750,000 | 885,025 |
| Revenue Bonds |
| Jefferson’s Ferry Project |
| Series 2020 |
| 11/01/2055 | 4.000% | | 1,000,000 | 1,104,894 |
| Huntington Local Development Corp. |
| Revenue Bonds |
| Fountaingate Garden Project |
| Series 2021A |
| 07/01/2056 | 5.250% | | 2,000,000 | 2,176,309 |
| Suffolk County Economic Development Corp. |
| Refunding Revenue Bonds |
| Peconic Landing at Southhold, Inc. |
| Series 2020 |
| 12/01/2040 | 5.000% | | 1,540,000 | 1,768,993 |
| Tompkins County Development Corp. |
| Refunding Revenue Bonds |
| Kendal at Ithaca, Inc. Project |
| Series 2014 |
| 07/01/2044 | 5.000% | | 1,655,000 | 1,795,263 |
| Ulster County Capital Resource Corp.(b) |
| Refunding Revenue Bonds |
| Woodland Pond at New Paltz |
| Series 2017 |
| 09/15/2047 | 5.250% | | 500,000 | 493,696 |
| 09/15/2053 | 5.250% | | 1,000,000 | 977,239 |
| Westchester County Local Development Corp. |
| Refunding Revenue Bonds |
| Miriam Osborn Memorial Home Association Project |
| Series 2019 |
| 07/01/2042 | 5.000% | | 450,000 | 503,348 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Westchester County Local Development Corp.(b),(c) |
| Revenue Bonds |
| Purchase Senior Learning Community |
| Series 2021 |
| 07/01/2056 | 5.000% | | 1,000,000 | 1,038,708 |
| Total | 10,743,475 |
| Sales Tax 0.6% |
| Puerto Rico Sales Tax Financing Corp.(d),(f) |
| Revenue Bonds |
| Series 2018A-1 |
| 07/01/2046 | 0.000% | | 3,850,000 | 1,250,280 |
| Single Family 0.7% |
| State of New York Mortgage Agency |
| Refunding Revenue Bonds |
| Series 2019-217 |
| 04/01/2039 | 3.625% | | 135,000 | 145,857 |
| State of New York Mortgage Agency(a) |
| Refunding Revenue Bonds |
| Series 2019-218 |
| 04/01/2033 | 3.600% | | 1,000,000 | 1,066,764 |
| 04/01/2038 | 3.850% | | 245,000 | 261,948 |
| Total | 1,474,569 |
| Special Non Property Tax 9.1% |
| Metropolitan Transportation Authority(f) |
| Refunding Revenue Bonds |
| Series 2012A |
| 11/15/2032 | 0.000% | | 2,500,000 | 1,994,368 |
| New York City Transitional Finance Authority |
| Refunding Revenue Bonds |
| Building Aid |
| Subordinated Series 2018S-3A |
| 07/15/2037 | 5.000% | | 2,000,000 | 2,469,175 |
| Revenue Bonds |
| Future Tax Secured |
| Subordinated Series 2019 |
| 11/01/2037 | 4.000% | | 2,000,000 | 2,337,863 |
| Subordinated Series 2020 |
| 05/01/2045 | 4.000% | | 1,500,000 | 1,725,045 |
| Subordinated Series 2020D |
| 11/01/2045 | 4.000% | | 1,000,000 | 1,150,030 |
| Subordinated Series 2020D-S |
| 11/01/2035 | 4.000% | | 1,500,000 | 1,772,859 |
| New York Convention Center Development Corp. |
| Refunding Revenue Bonds |
| Hotel Unit Fee Secured |
| Series 2015 |
| 11/15/2045 | 5.000% | | 1,500,000 | 1,706,236 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Series 2018A |
| 03/15/2038 | 5.250% | | 2,000,000 | 2,526,666 |
| New York State Urban Development Corp. |
| Revenue Bonds |
| Series 2020A |
| 03/15/2049 | 4.000% | | 2,000,000 | 2,307,662 |
| Puerto Rico Highways & Transportation Authority(d),(e) |
| Refunding Revenue Bonds |
| Series 2007N |
| 07/01/2021 | 0.000% | | 415,000 | 231,363 |
| Total | 18,221,267 |
| Special Property Tax 1.4% |
| Glen Cove Local Economic Assistance Corp. |
| Refunding Revenue Bonds |
| Garview Point Public Improvement Project |
| Series 2016 |
| 01/01/2056 | 5.000% | | 1,000,000 | 1,087,973 |
| Hudson Yards Infrastructure Corp. |
| Refunding Revenue Bonds |
| Green Bonds |
| Series 2021 |
| 02/15/2044 | 4.000% | | 1,000,000 | 1,181,750 |
| New York Liberty Development Corp. |
| Refunding Revenue Bonds |
| Bank of America Tower at One Bryant Park Project |
| Series 2019 |
| 09/15/2069 | 2.800% | | 500,000 | 507,358 |
| Total | 2,777,081 |
| State General Obligation 0.4% |
| Commonwealth of Puerto Rico(d),(e) |
| Unlimited General Obligation Refunding & Public Improvement Bonds |
| Series 2014A |
| 07/01/2035 | 0.000% | | 1,000,000 | 880,000 |
| Tobacco 4.4% |
| Chautauqua Tobacco Asset Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2014 |
| 06/01/2034 | 5.000% | | 1,000,000 | 1,047,634 |
| New York Counties Tobacco Trust VI |
| Refunding Revenue Bonds |
| Tobacco Settlement Pass-Through |
| Series 2016 |
| 06/01/2051 | 5.000% | | 2,000,000 | 2,208,707 |
| Suffolk Tobacco Asset Securitization Corp.(f) |
| Refunding Revenue Bonds |
| Subordinated Series 2021B-2 |
| 06/01/2066 | 0.000% | | 3,000,000 | 489,155 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 13 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Suffolk Tobacco Asset Securitization Corp. |
| Refunding Revenue Bonds |
| Tobacco Settlement Asset-Backed Bonds |
| Subordinated Series 2021 |
| 06/01/2050 | 4.000% | | 1,500,000 | 1,673,414 |
| TSASC, Inc. |
| Refunding Revenue Bonds |
| Series 2017A |
| 06/01/2041 | 5.000% | | 3,000,000 | 3,450,717 |
| Total | 8,869,627 |
| Transportation 7.0% |
| Metropolitan Transportation Authority |
| Refunding Revenue Bonds |
| Series 2017D |
| 11/15/2035 | 5.000% | | 1,330,000 | 1,576,434 |
| 11/15/2042 | 4.000% | | 2,000,000 | 2,182,846 |
| Revenue Bonds |
| Green Bonds |
| Series 2016A-1 |
| 11/15/2041 | 5.000% | | 1,000,000 | 1,138,584 |
| Series 2020A-1 |
| 11/15/2048 | 5.000% | | 2,000,000 | 2,380,437 |
| Series 2020C-1 |
| 11/15/2050 | 5.000% | | 2,000,000 | 2,376,668 |
| Series 2005B (AMBAC) |
| 11/15/2023 | 5.250% | | 1,250,000 | 1,373,388 |
| Transportation |
| Series 2015B |
| 11/15/2040 | 5.000% | | 1,675,000 | 1,874,216 |
| Transportation Program |
| Subordinated Series 2015A-1 |
| 11/15/2045 | 5.000% | | 1,000,000 | 1,111,706 |
| Total | 14,014,279 |
| Turnpike / Bridge / Toll Road 1.5% |
| New York State Bridge Authority |
| Revenue Bonds |
| Series 2021A |
| 01/01/2041 | 4.000% | | 200,000 | 237,192 |
| New York State Thruway Authority |
| Revenue Bonds |
| Series 2019B |
| 01/01/2045 | 4.000% | | 2,415,000 | 2,752,388 |
| Total | 2,989,580 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Water & Sewer 6.4% |
| New York City Water & Sewer System |
| Revenue Bonds |
| 2nd General Resolution |
| Series 2020GG |
| 06/15/2050 | 4.000% | | 1,805,000 | 2,069,276 |
| Series 2017 |
| 06/15/2048 | 5.000% | | 2,000,000 | 2,391,649 |
| Series 2019DD-1 |
| 06/15/2049 | 5.000% | | 2,000,000 | 2,467,789 |
| Subordinated Series 2021AA-1 |
| 06/15/2051 | 4.000% | | 4,000,000 | 4,642,958 |
| Niagara Falls Public Water Authority |
| Revenue Bonds |
| Series 2013A |
| 07/15/2029 | 5.000% | | 1,000,000 | 1,075,075 |
| Western Nassau County Water Authority |
| Revenue Bonds |
| Green Bonds |
| Series 2021A |
| 04/01/2051 | 4.000% | | 225,000 | 261,511 |
| Total | 12,908,258 |
Total Municipal Bonds
(Cost $184,628,386) | 196,494,912 |
| Money Market Funds 1.3% |
| | Shares | Value ($) |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.006%(g) | 2,657,439 | 2,657,439 |
Total Money Market Funds
(Cost $2,657,439) | 2,657,439 |
Total Investments in Securities
(Cost: $187,285,825) | 199,152,351 |
| Other Assets & Liabilities, Net | | 1,983,416 |
| Net Assets | 201,135,767 |
At October 31, 2021, securities and/or cash totaling $147,000 were pledged as collateral.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
Investments in derivatives
| Short futures contracts |
| Description | Number of
contracts | Expiration
date | Trading
currency | Notional
amount | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
| U.S. Treasury 10-Year Note | (50) | 12/2021 | USD | (6,535,156) | 18,668 | — |
| U.S. Treasury 10-Year Note | (55) | 12/2021 | USD | (7,188,672) | — | (13,001) |
| Total | | | | | 18,668 | (13,001) |
Notes to Portfolio of Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At October 31, 2021, the total value of these securities amounted to $10,948,961, which represents 5.44% of total net assets. |
| (c) | Represents a security purchased on a when-issued basis. |
| (d) | 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 October 31, 2021, the total value of these securities amounted to $3,583,518, which represents 1.78% of total net assets. |
| (e) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At October 31, 2021, the total value of these securities amounted to $2,333,238, which represents 1.16% of total net assets. |
| (f) | Zero coupon bond. |
| (g) | The rate shown is the seven-day current annualized yield at October 31, 2021. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 15 |
Portfolio of Investments (continued)
October 31, 2021
Fair value measurements (continued)
methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of the inputs used to value the Fund’s investments at October 31, 2021:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 196,494,912 | — | 196,494,912 |
| Money Market Funds | 2,657,439 | — | — | 2,657,439 |
| Total Investments in Securities | 2,657,439 | 196,494,912 | — | 199,152,351 |
| Investments in Derivatives | | | | |
| Asset | | | | |
| Futures Contracts | 18,668 | — | — | 18,668 |
| Liability | | | | |
| Futures Contracts | (13,001) | — | — | (13,001) |
| Total | 2,663,106 | 196,494,912 | — | 199,158,018 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
Derivative instruments are valued at unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Statement of Assets and Liabilities
October 31, 2021
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $187,285,825) | $199,152,351 |
| Cash | 3,635 |
| Margin deposits on: | |
| Futures contracts | 147,000 |
| Receivable for: | |
| Investments sold | 1,124,386 |
| Capital shares sold | 461,415 |
| Interest | 2,455,280 |
| Variation margin for futures contracts | 4,922 |
| Expense reimbursement due from Investment Manager | 368 |
| Prepaid expenses | 4,216 |
| Trustees’ deferred compensation plan | 95,295 |
| Total assets | 203,448,868 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,573,266 |
| Capital shares purchased | 194,556 |
| Distributions to shareholders | 407,072 |
| Management services fees | 2,586 |
| Distribution and/or service fees | 1,040 |
| Transfer agent fees | 11,000 |
| Compensation of board members | 6,148 |
| Compensation of chief compliance officer | 5 |
| Other expenses | 22,133 |
| Trustees’ deferred compensation plan | 95,295 |
| Total liabilities | 2,313,101 |
| Net assets applicable to outstanding capital stock | $201,135,767 |
| Represented by | |
| Paid in capital | 187,919,828 |
| Total distributable earnings (loss) | 13,215,939 |
| Total - representing net assets applicable to outstanding capital stock | $201,135,767 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 17 |
Statement of Assets and Liabilities (continued)
October 31, 2021
| Class A | |
| Net assets | $117,874,438 |
| Shares outstanding | 3,888,101 |
| Net asset value per share | $30.32 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $31.26 |
| Advisor Class | |
| Net assets | $12,373,363 |
| Shares outstanding | 408,769 |
| Net asset value per share | $30.27 |
| Class C | |
| Net assets | $12,202,857 |
| Shares outstanding | 402,688 |
| Net asset value per share | $30.30 |
| Institutional Class | |
| Net assets | $55,958,565 |
| Shares outstanding | 1,847,442 |
| Net asset value per share | $30.29 |
| Institutional 2 Class | |
| Net assets | $1,859,547 |
| Shares outstanding | 61,544 |
| Net asset value per share(a) | $30.22 |
| Institutional 3 Class | |
| Net assets | $866,997 |
| Shares outstanding | 28,605 |
| Net asset value per share | $30.31 |
| (a) | 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.
| 18 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Statement of Operations
Year Ended October 31, 2021
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $579 |
| Interest | 6,297,571 |
| Total income | 6,298,150 |
| Expenses: | |
| Management services fees | 933,745 |
| Distribution and/or service fees | |
| Class A | 295,267 |
| Class C | 136,336 |
| Transfer agent fees | |
| Class A | 89,849 |
| Advisor Class | 8,428 |
| Class C | 10,382 |
| Institutional Class | 40,415 |
| Institutional 2 Class | 1,102 |
| Institutional 3 Class | 108 |
| Compensation of board members | 16,322 |
| Custodian fees | 7,717 |
| Printing and postage fees | 18,625 |
| Registration fees | 18,746 |
| Audit fees | 29,500 |
| Legal fees | 11,629 |
| Compensation of chief compliance officer | 52 |
| Other | 13,973 |
| Total expenses | 1,632,196 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (140,543) |
| Fees waived by distributor | |
| Class C | (40,915) |
| Expense reduction | (100) |
| Total net expenses | 1,450,638 |
| Net investment income | 4,847,512 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 1,264,400 |
| Futures contracts | (235,282) |
| Net realized gain | 1,029,118 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 4,178,797 |
| Futures contracts | 2,516 |
| Net change in unrealized appreciation (depreciation) | 4,181,313 |
| Net realized and unrealized gain | 5,210,431 |
| Net increase in net assets resulting from operations | $10,057,943 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 19 |
Statement of Changes in Net Assets
| | Year Ended
October 31, 2021 | Year Ended
October 31, 2020 |
| Operations | | |
| Net investment income | $4,847,512 | $5,242,242 |
| Net realized gain | 1,029,118 | 1,267,380 |
| Net change in unrealized appreciation (depreciation) | 4,181,313 | (4,099,035) |
| Net increase in net assets resulting from operations | 10,057,943 | 2,410,587 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (3,501,106) | (4,138,805) |
| Advisor Class | (350,444) | (275,752) |
| Class C | (352,513) | (576,783) |
| Institutional Class | (1,705,752) | (2,026,365) |
| Institutional 2 Class | (60,839) | (123,489) |
| Institutional 3 Class | (27,385) | (29,043) |
| Total distributions to shareholders | (5,998,039) | (7,170,237) |
| Increase (decrease) in net assets from capital stock activity | 3,885,625 | (2,968,280) |
| Total increase (decrease) in net assets | 7,945,529 | (7,727,930) |
| Net assets at beginning of year | 193,190,238 | 200,918,168 |
| Net assets at end of year | $201,135,767 | $193,190,238 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | October 31, 2021 | October 31, 2020 |
| | Shares | Dollars ($) | Shares(a) | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 348,256 | 10,644,602 | 422,916 | 12,672,896 |
| Distributions reinvested | 95,819 | 2,917,413 | 116,953 | 3,489,501 |
| Redemptions | (426,551) | (13,004,856) | (534,228) | (15,820,061) |
| Net increase | 17,524 | 557,159 | 5,641 | 342,336 |
| Advisor Class | | | | |
| Subscriptions | 136,465 | 4,155,951 | 209,041 | 6,186,571 |
| Distributions reinvested | 11,508 | 350,104 | 9,242 | 275,335 |
| Redemptions | (47,995) | (1,459,024) | (123,380) | (3,539,100) |
| Net increase | 99,978 | 3,047,031 | 94,903 | 2,922,806 |
| Class C | | | | |
| Subscriptions | 48,086 | 1,466,017 | 42,109 | 1,254,123 |
| Distributions reinvested | 9,726 | 295,664 | 14,678 | 438,106 |
| Redemptions | (164,179) | (5,014,579) | (198,188) | (5,882,829) |
| Net decrease | (106,367) | (3,252,898) | (141,401) | (4,190,600) |
| Institutional Class | | | | |
| Subscriptions | 396,425 | 12,118,408 | 447,925 | 13,390,822 |
| Distributions reinvested | 36,584 | 1,113,190 | 46,458 | 1,386,415 |
| Redemptions | (315,309) | (9,608,582) | (507,541) | (14,892,044) |
| Net increase (decrease) | 117,700 | 3,623,016 | (13,158) | (114,807) |
| Institutional 2 Class | | | | |
| Subscriptions | 8,071 | 247,558 | — | — |
| Distributions reinvested | 1,994 | 60,499 | 4,125 | 123,089 |
| Redemptions | (15,344) | (466,433) | (76,658) | (2,101,812) |
| Net decrease | (5,279) | (158,376) | (72,533) | (1,978,723) |
| Institutional 3 Class | | | | |
| Subscriptions | 6,222 | 189,093 | 2,947 | 85,595 |
| Distributions reinvested | 888 | 27,044 | 960 | 28,647 |
| Redemptions | (4,806) | (146,444) | (2,076) | (63,534) |
| Net increase | 2,304 | 69,693 | 1,831 | 50,708 |
| Total net increase (decrease) | 125,860 | 3,885,625 | (124,717) | (2,968,280) |
| (a) | Share activity has been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 21 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A(c) |
| Year Ended 10/31/2021 | $29.68 | 0.73 | 0.81 | 1.54 | (0.72) | (0.18) | (0.90) |
| Year Ended 10/31/2020 | $30.29 | 0.78 | (0.32) | 0.46 | (0.78) | (0.29) | (1.07) |
| Year Ended 10/31/2019 | $28.51 | 0.88 | 1.78 | 2.66 | (0.88) | — | (0.88) |
| Year Ended 10/31/2018 | $29.81 | 0.92 | (1.22) | (0.30) | (0.96) | (0.04) | (1.00) |
| Year Ended 10/31/2017 | $30.33 | 0.96 | (0.52) | 0.44 | (0.92) | (0.04) | (0.96) |
| Advisor Class(c) |
| Year Ended 10/31/2021 | $29.64 | 0.80 | 0.81 | 1.61 | (0.80) | (0.18) | (0.98) |
| Year Ended 10/31/2020 | $30.25 | 0.85 | (0.32) | 0.53 | (0.85) | (0.29) | (1.14) |
| Year Ended 10/31/2019 | $28.47 | 0.96 | 1.78 | 2.74 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.77 | 1.00 | (1.26) | (0.26) | (1.00) | (0.04) | (1.04) |
| Year Ended 10/31/2017 | $30.27 | 1.04 | (0.50) | 0.54 | (1.00) | (0.04) | (1.04) |
| Class C(c) |
| Year Ended 10/31/2021 | $29.67 | 0.59 | 0.81 | 1.40 | (0.59) | (0.18) | (0.77) |
| Year Ended 10/31/2020 | $30.28 | 0.65 | (0.33) | 0.32 | (0.64) | (0.29) | (0.93) |
| Year Ended 10/31/2019 | $28.50 | 0.76 | 1.78 | 2.54 | (0.76) | — | (0.76) |
| Year Ended 10/31/2018 | $29.80 | 0.80 | (1.26) | (0.46) | (0.80) | (0.04) | (0.84) |
| Year Ended 10/31/2017 | $30.31 | 0.80 | (0.47) | 0.33 | (0.80) | (0.04) | (0.84) |
| Institutional Class(c) |
| Year Ended 10/31/2021 | $29.66 | 0.80 | 0.81 | 1.61 | (0.80) | (0.18) | (0.98) |
| Year Ended 10/31/2020 | $30.26 | 0.85 | (0.31) | 0.54 | (0.85) | (0.29) | (1.14) |
| Year Ended 10/31/2019 | $28.49 | 0.96 | 1.77 | 2.73 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.79 | 1.00 | (1.26) | (0.26) | (1.00) | (0.04) | (1.04) |
| Year Ended 10/31/2017 | $30.30 | 1.04 | (0.51) | 0.53 | (1.00) | (0.04) | (1.04) |
| Institutional 2 Class(c) |
| Year Ended 10/31/2021 | $29.58 | 0.81 | 0.81 | 1.62 | (0.80) | (0.18) | (0.98) |
| Year Ended 10/31/2020 | $30.19 | 0.86 | (0.32) | 0.54 | (0.86) | (0.29) | (1.15) |
| Year Ended 10/31/2019 | $28.42 | 0.96 | 1.77 | 2.73 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.72 | 1.00 | (1.26) | (0.26) | (1.00) | (0.04) | (1.04) |
| Year Ended 10/31/2017 | $30.22 | 1.04 | (0.50) | 0.54 | (1.00) | (0.04) | (1.04) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A(c) |
| Year Ended 10/31/2021 | $30.32 | 5.23% | 0.85% | 0.78%(d) | 2.39% | 18% | $117,874 |
| Year Ended 10/31/2020 | $29.68 | 1.59% | 0.85%(e) | 0.80%(d),(e) | 2.63% | 26% | $114,883 |
| Year Ended 10/31/2019 | $30.29 | 9.37% | 0.85% | 0.80%(d) | 3.00% | 46% | $117,062 |
| Year Ended 10/31/2018 | $28.51 | (1.02%) | 0.85% | 0.80%(d) | 3.21% | 19% | $120,625 |
| Year Ended 10/31/2017 | $29.81 | 1.59% | 0.85% | 0.79%(d) | 3.21% | 7% | $134,602 |
| Advisor Class(c) |
| Year Ended 10/31/2021 | $30.27 | 5.46% | 0.61% | 0.53%(d) | 2.63% | 18% | $12,373 |
| Year Ended 10/31/2020 | $29.64 | 1.84% | 0.60%(e) | 0.55%(d),(e) | 2.88% | 26% | $9,151 |
| Year Ended 10/31/2019 | $30.25 | 9.66% | 0.60% | 0.55%(d) | 3.23% | 46% | $6,470 |
| Year Ended 10/31/2018 | $28.47 | (0.78%) | 0.60% | 0.55%(d) | 3.48% | 19% | $4,821 |
| Year Ended 10/31/2017 | $29.77 | 1.84% | 0.59% | 0.55%(d) | 3.46% | 7% | $2,518 |
| Class C(c) |
| Year Ended 10/31/2021 | $30.30 | 4.72% | 1.60% | 1.23%(d) | 1.94% | 18% | $12,203 |
| Year Ended 10/31/2020 | $29.67 | 1.10% | 1.60%(e) | 1.25%(d),(e) | 2.18% | 26% | $15,103 |
| Year Ended 10/31/2019 | $30.28 | 9.04% | 1.60% | 1.25%(d) | 2.56% | 46% | $19,693 |
| Year Ended 10/31/2018 | $28.50 | (1.60%) | 1.60% | 1.25%(d) | 2.76% | 19% | $21,111 |
| Year Ended 10/31/2017 | $29.80 | 1.13% | 1.60% | 1.24%(d) | 2.76% | 7% | $27,972 |
| Institutional Class(c) |
| Year Ended 10/31/2021 | $30.29 | 5.46% | 0.60% | 0.53%(d) | 2.63% | 18% | $55,959 |
| Year Ended 10/31/2020 | $29.66 | 1.77% | 0.60%(e) | 0.55%(d),(e) | 2.88% | 26% | $51,296 |
| Year Ended 10/31/2019 | $30.26 | 9.80% | 0.60% | 0.55%(d) | 3.24% | 46% | $52,745 |
| Year Ended 10/31/2018 | $28.49 | (0.91%) | 0.60% | 0.55%(d) | 3.46% | 19% | $41,072 |
| Year Ended 10/31/2017 | $29.79 | 1.84% | 0.60% | 0.55%(d) | 3.48% | 7% | $46,257 |
| Institutional 2 Class(c) |
| Year Ended 10/31/2021 | $30.22 | 5.52% | 0.59% | 0.52% | 2.65% | 18% | $1,860 |
| Year Ended 10/31/2020 | $29.58 | 1.78% | 0.58%(e) | 0.53%(e) | 2.89% | 26% | $1,977 |
| Year Ended 10/31/2019 | $30.19 | 9.84% | 0.58% | 0.53% | 3.28% | 46% | $4,207 |
| Year Ended 10/31/2018 | $28.42 | (0.91%) | 0.58% | 0.54% | 3.46% | 19% | $5,457 |
| Year Ended 10/31/2017 | $29.72 | 1.98% | 0.59% | 0.54% | 3.46% | 7% | $6,497 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 23 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class(c) |
| Year Ended 10/31/2021 | $29.67 | 0.82 | 0.82 | 1.64 | (0.82) | (0.18) | (1.00) |
| Year Ended 10/31/2020 | $30.28 | 0.87 | (0.32) | 0.55 | (0.87) | (0.29) | (1.16) |
| Year Ended 10/31/2019 | $28.50 | 0.96 | 1.78 | 2.74 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.80 | 1.04 | (1.26) | (0.22) | (1.04) | (0.04) | (1.08) |
| Year Ended 10/31/2017(f) | $29.32 | 0.68 | 0.48(g) | 1.16 | (0.68) | — | (0.68) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Per share amounts have been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Ratios include interfund lending expense which is less than 0.01%. |
| (f) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (g) | 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 subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (h) | Annualized. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class(c) |
| Year Ended 10/31/2021 | $30.31 | 5.56% | 0.54% | 0.47% | 2.70% | 18% | $867 |
| Year Ended 10/31/2020 | $29.67 | 1.87% | 0.54%(e) | 0.49%(e) | 2.95% | 26% | $780 |
| Year Ended 10/31/2019 | $30.28 | 9.71% | 0.54% | 0.49% | 3.17% | 46% | $741 |
| Year Ended 10/31/2018 | $28.50 | (0.72%) | 0.54% | 0.50% | 3.49% | 19% | $38 |
| Year Ended 10/31/2017(f) | $29.80 | 4.00% | 0.54%(h) | 0.50%(h) | 3.62%(h) | 7% | $105 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 25 |
Notes to Financial Statements
October 31, 2021
Note 1. Organization
Columbia Strategic New York Municipal Income Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-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.
The Fund’s Board of Trustees approved reverse stock splits of the issued and outstanding shares of the Fund (the Reverse Stock Split). The Reverse Stock Split was completed after the close of business on September 11, 2020. The impact of the Reverse Stock Split was to decrease the number of shares outstanding and increase the net asset value per share for each share class of the Fund by the ratio of 4 to 1, resulting in no effect on the net assets of each share class or the value of each affected shareholder’s investment. Capital stock share activity reflected in the Statement of Changes in Net Assets and per share data in the Financial Highlights have been adjusted on a retroactive basis to reflect the impact of the Reverse Stock Split.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Effective April 1, 2021, Class C shares automatically convert to Class A shares after 8 years. Prior to April 1, 2021, Class C shares automatically converted to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
| 26 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
Futures and options on futures contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 27 |
Notes to Financial Statements (continued)
October 31, 2021
Collateral (margin) requirements differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense paid by the Fund is shown on the Statement of Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| 28 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
| | Asset derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 18,668* |
| | Liability derivatives | |
Risk exposure
category | Statement
of assets and liabilities
location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 13,001* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the year ended October 31, 2021:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | (235,282) |
| |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 2,516 |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended October 31, 2021:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — short | 9,888,309 |
| * | Based on the ending quarterly outstanding amounts for the year ended October 31, 2021. |
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 29 |
Notes to Financial Statements (continued)
October 31, 2021
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2021 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
| 30 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the year ended October 31, 2021, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2021, these minimum account balance fees reduced total expenses of the Fund by $100.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 31 |
Notes to Financial Statements (continued)
October 31, 2021
The Distributor has contractually agreed to waive a portion of the distribution fee for Class C shares through February 28, 2022 so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be modified or terminated at the sole discretion of the Board of Trustees.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2021, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 24,396 |
| Class C | — | 1.00(b) | 257 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | March 1, 2021
through
February 28, 2022 | Prior to
March 1, 2021 |
| Class A | 0.78% | 0.80% |
| Advisor Class | 0.53 | 0.55 |
| Class C | 1.53 | 1.55 |
| Institutional Class | 0.53 | 0.55 |
| Institutional 2 Class | 0.51 | 0.53 |
| Institutional 3 Class | 0.46 | 0.49 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with certain shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. 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.
| 32 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
At October 31, 2021, these differences were primarily due to differing treatment for deferral/reversal of wash sale losses, trustees’ deferred compensation, tax straddles, distributions and principal and/or interest of fixed income securities. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The Fund did not have any permanent differences; therefore, no reclassifications were made.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended October 31, 2021 | Year Ended October 31, 2020 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 114,447 | 4,842,993 | 1,040,599 | 5,998,039 | 678,743 | 5,060,447 | 1,431,047 | 7,170,237 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2021, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| 675,411 | 1,191,230 | 840,045 | — | 11,016,640 |
At October 31, 2021, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 188,141,378 | 11,446,399 | (429,759) | 11,016,640 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $40,197,983 and $35,182,383, respectively, for the year ended October 31, 2021. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended October 31, 2021.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 33 |
Notes to Financial Statements (continued)
October 31, 2021
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended October 31, 2021.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the
| 34 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The COVID-19 pandemic has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and other natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 35 |
Notes to Financial Statements (continued)
October 31, 2021
Non-diversification risk
A non-diversified fund is permitted to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2021, one unaffiliated shareholder of record owned 16.4% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of record owned 24.2% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates 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 Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 36 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Strategic New York Municipal Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Strategic New York Municipal Income Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of October 31, 2021, the related statement of operations for the year ended October 31, 2021, the statement of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 21, 2021
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 37 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended October 31, 2021. Shareholders will be notified in early 2022 of the amounts for use in preparing 2021 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $913,542 | 99.66% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 171 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 38 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney; specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018 | 171 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee - 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; Director, Robina Foundation, 2009-2020 (Chair, 2014-2020) |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 171 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee) since 2019 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 169 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020(a) | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 169 | Director, The Autism Project, since March 2015; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020(a) | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 2001-2004 | 169 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 39 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 171 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2019; Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 171 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 169 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 169 | None |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 169 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
| 40 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, Dean Witter Reynolds, Inc., 1976-1980 | 171 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1946 | Trustee since 2008 | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006; Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 171 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, RenaissanceRe Holdings Ltd. since May 2008; former Director, Citigroup Inc. and Citibank, N.A., 2009-2019; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 171 | Director, BlueCross BlueShield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation |
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 41 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020(a) | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services) since January 2016; Non-executive Member of the Investment Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services) since August 2018; Advisor, Paradigm Asset Management since November 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008 - January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 169 | Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions); Independent Director, Investment Committee, Sarona Asset Management |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 171 | Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Santomero and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as a director of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| (a) | J. Kevin Connaughton was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective March 1, 2016. Natalie A. Trunow was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective September 1, 2016. Olive M. Darragh was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective June 10, 2019. Shareholders of the Funds elected Mr. Connaughton and Mses. Darragh and Trunow as Trustees of CFST, CFST I, CFST II, CET I, CET II, and CFVST II, effective January 1, 2021, and of CFVIT, effective July 1, 2020. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021(a) | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC (since April 2015); officer of Columbia Funds and affiliated funds since 2020. | 171 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
| (a) | Mr. Beckman serves as the President and Principal Executive Officer of the Columbia Funds (since 2021). |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 42 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is the President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June 2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee of Columbia Funds Complex until January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary | Formerly, Trustee of Columbia Funds Complex until November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company September 2010 – September 2020. |
Colin Moore
290 Congress Street
Boston, MA 02210
1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 43 |
TRUSTEES AND OFFICERS (continued)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Approval of Management Agreement
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia Strategic New York Municipal Income Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee in November and December 2020 and March, April and June 2021, including reports providing the results of analyses performed by an independent third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and a comprehensive response to requests for information by independent legal counsels to the Independent Trustees (Independent Legal Counsel) in a letter to the Investment Manager, to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees, such as the Contracts Committee, the Investment Oversight Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 15, 2021 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered 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 Broadridge, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by Broadridge; |
| 44 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
| • | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department’s processes, systems and oversight, over the past several years, as well as planned 2021 initiatives in this regard. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel. The Board also observed that the Investment Manager has been able to effectively manage, operate and distribute the Funds through the COVID-19 pandemic period with no disruptions in services provided.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2020 in the performance of administrative services, and noted the various enhancements anticipated for 2021. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes are proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Funds under the Fund Management Agreements.
After reviewing these and related factors (including investment performance as discussed below), 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 Management Agreement supported the continuation of the Management Agreement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 45 |
Approval of Management Agreement (continued)
Investment performance
In this connection, the Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the performance of a benchmark index, (iii) the percentage ranking of the Fund among its comparison group, (iv) the Fund’s performance relative to peers and benchmarks and (v) the net assets of the Fund. The Board observed that the Fund’s performance for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the Investment Manager’s profitability.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that in 2020 the Board had considered 2019 profitability and that the 2021 information showed that the profitability generated by the Investment Manager in 2020 increased slightly from 2019 levels. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, 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 Management Agreement.
| 46 | Columbia Strategic New York Municipal Income Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
Economies of scale
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 as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 15, 2021, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
Columbia Strategic New York Municipal Income Fund | Annual Report 2021
| 47 |
Columbia Strategic New York Municipal Income Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2021 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2021
Columbia New York Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified by mail and provided with a website address to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia New York Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
Investment objective
The Fund seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from New York individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Average annual total returns (%) (for the period ended October 31, 2021) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/25/02 | 2.84 | 2.43 | 2.71 |
| | Including sales charges | | -0.24 | 1.82 | 2.40 |
| Advisor Class* | 03/19/13 | 3.09 | 2.69 | 2.97 |
| Class C | Excluding sales charges | 11/25/02 | 2.37 | 1.99 | 2.27 |
| | Including sales charges | | 1.37 | 1.99 | 2.27 |
| Institutional Class | 12/31/91 | 3.09 | 2.69 | 2.97 |
| Institutional 2 Class* | 03/01/16 | 3.16 | 2.76 | 3.00 |
| Institutional 3 Class* | 03/01/17 | 3.29 | 2.79 | 3.02 |
| Class V | Excluding sales charges | 12/31/91 | 2.94 | 2.53 | 2.81 |
| | Including sales charges | | -1.97 | 1.55 | 2.32 |
| Bloomberg New York 3-15 Year Blend Municipal Bond Index | | 2.76 | 2.83 | 3.22 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | 1.93 | 3.11 | 3.46 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. Since the Fund launched more than one share class at its inception, Institutional Class shares were used. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg New York 3-15 Year Blend Municipal Bond Index tracks investment grade bonds from the state of New York and its municipalities. Effective August 24, 2021, the Bloomberg Barclays New York 3-15 Year Blend Municipal Bond Index was re-branded as the Bloomberg New York 3-15 Year Blend Municipal Bond Index.
The Bloomberg 3-15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3-15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3-15 Year Blend Municipal Bond Index.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Fund performance may be significantly negatively impacted by the economic impact of the COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and capital markets around the world in ways that will likely continue and may change in unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate pre-existing political, social and economic risks in certain countries and globally.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 3 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2011 — October 31, 2021)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia New York Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at October 31, 2021) |
| AAA rating | 6.4 |
| AA rating | 26.3 |
| A rating | 51.5 |
| BBB rating | 9.6 |
| BB rating | 1.1 |
| B rating | 0.3 |
| Not rated | 4.8 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Manager Discussion of Fund Performance
For the 12-month period that ended October 31, 2021, the Fund’s Class A shares returned 2.84% excluding sales charges. Institutional Class shares of the Fund returned 3.09%. For the same time period, the Fund’s benchmark, the Bloomberg New York 3-15 Year Blend Municipal Bond Index, returned 2.76%, and the national intermediate municipal bond market, as measured by the Bloomberg 3-15 Year Blend Municipal Bond Index, returned 1.93%.
Market overview
As the period began, there was a significant increase in municipal bond issuance ahead of the November election. The resulting excess supply and upward rate pressure pushed municipal total returns into negative territory. A renewed bid for risk assets, including municipal bonds, was spurred as election volatility failed to materialize and positive COVID-19 vaccination news emerged. Following the pre-election flood of supply, municipal investors were left with limited new issuance to meet demand in November and December, a dynamic that helped end 2020 on a positive note.
The strong municipal performance that closed 2020 continued into the new year. Despite the gradual upward march of U.S. Treasury yields, municipal performance held positive through the first month of the year, as lighter supply and tighter spreads produced positive excess returns versus Treasuries. By mid-February, however, municipals succumbed to the upward pull of Treasury yields, as municipal yields repriced higher between 20 and 40 basis points (bps) across much of the curve, with only the shortest maturities avoiding substantial yield spikes. (A basis point is 1/100 of a percent.) However, negative total returns brought on by higher yields did not spark an outflow cycle. Rather, municipal investors took the opportunity to put cash to work at higher yield levels, and by the end of March 2021, yields had retraced lower 3–6 bps, reviving outperformance versus Treasuries and closing the first quarter on a positive note.
Federal stimulus via the $1.9 trillion American Rescue Plan provided some measure of indirect support for portions of the municipal market. While rates markets focused on the possible inflationary effects of such a large stimulus package, municipal investors chose to weigh the positive credit impacts. Stimulus, combined with tax revenues that have broadly surprised to the upside, continued to support improvement in municipal credit fundamentals.
By mid-2021, credit concerns that arose during COVID-19 shutdowns had diminished, and lower quality segments of the market led positive performance. Though pockets of value remained in certain sectors or issuers, the dramatic post-COVID-19 recovery had resulted in relatively full valuations across much of the market. With the COVID-19 shutdowns lifted, it was evident that most states’ expectations of massive revenue gaps failed to materialize. Tax revenue performance was rather strong even through the depths of the pandemic, with projected deficits turning into actual surpluses for many state and local governments. Surprise revenue outperformance, coupled with direct federal support via the American Rescue Plan, bolstered credit fundamentals for most issuers.
A Delta-variant-driven resurgence in COVID-19 cases weighed on investors’ minds as the third quarter of 2021 began. Initially, the expectation of slower growth pushed Treasury yields lower with 10-year Treasury yields reaching a low of 1.17% in early August. Undeterred by Delta, the Federal Reserve indicated that the tapering of asset purchases would likely begin soon but gave no timeline for the start of interest rate hikes. Supply chain disruptions, energy shortages and transportation bottlenecks all pressured inflation and interest rates higher. Interest rate volatility led most fixed-income sectors to negative returns during the third quarter of 2021. However, despite a negative third quarter, municipal performance remained one of the few positive corners of the domestic fixed-income landscape on a year-to-date basis. Post-COVID-19 tax revenue performance in most locales continued to outpace expectations, improving credit fundamentals and leaving many municipal issuers in healthy fiscal positions.
In the final month of the period, a weaker tone and the continuation of upward rate pressure weighed on municipal returns, as the national muni market ended with another month of negative total returns. Policy negotiations in Washington remained fluid, but by period-end had taken a turn towards removing tax proposals that would have been stimulative for municipal demand.
Despite the trend of a slower economic recovery relative to the nation, New York State has rebounded with continued improvement to employment, the beginning of ‘Return to Office’ for many employers this fall, and business travel beginning to re-emerge. Residential real estate prices have been a bright spot for the state economy in both New York City (NYC) and the broader state, experiencing a similar surge in valuations as the broader nation. Higher end residential real estate sales and price points have remained especially robust throughout the year and residential rental rates and vacancy rates in NYC have
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 5 |
Manager Discussion of Fund Performance (continued)
rebounded to at or near pre-COVID-19 levels – data that pushes back on the notion that the pandemic and social unrest have had a permanent negative impact on the economic outlook for New York State and NYC. While commercial & office space lease activity has remained slow, there have been some significant large lease signings from notable tech companies such as Google and Facebook.
The somewhat sluggish, but consistent comeback of the state’s economy, along with a frequent scarcity of new issue supply that kept New York municipal bond prices firm, helped the benchmark outperform the national index for the year. The broad theme for the New York municipal market for the reporting period was the outperformance by longer maturities and medium to lower quality bonds, and by revenue bonds versus general obligation bonds.
All in all, the environment for municipal bonds was favorable during the reporting period. Relentless investor demand, restrained supply, federal support, COVID-19 vaccinations and the re-opening of the economy made for an opportune environment, in our view. Investors were paid for taking and being exposed to risk. The least risky areas of the market still produced positive returns, just less positive than the riskier areas.
The Fund’s notable contributors during the period
| • | The Fund benefited from its meaningful overweight to lower investment grade rated issues across several sectors as lower quality and longer maturity outperformed during the period. |
| ○ | The top sector return of 6% was generated in transportation which was propelled by New York City’s Metropolitan Transportation Authority issues. |
| ○ | Holdings in the Port Authority of New York & New Jersey rebounded strongly as well. |
| ○ | Transportation represented the Fund’s largest sector exposure. We believe the outlook for both issuers improved dramatically as the economy continued to reopen, vaccinations progressed and the federal government provided stimulus aid. |
| • | Holdings in the Fund’s second largest sector exposure, special non-property tax, did similarly well. Largely related to personal income taxes and sales tax in New York City, these issues benefited from the positive COVID-19 recovery forces previously mentioned. |
| • | The Fund’s third largest sector weight, hospitals, was a positive contributor as well. Hospitals resumed elective surgeries and patient volumes increased as postponed procedures were attended to. |
| • | Yield curve positioning was another bright spot for the Fund as longer intermediate maturities outperformed. The Fund was more than 6% overweight bonds maturing in 6 years and longer versus the benchmark. |
| • | Lastly, exposure to bonds with 4% coupons was a plus during the period as they outperformed. We believe 4% coupon bonds offer additional yield and income versus traditional 5% coupon bonds. Over 60% of Fund purchases during the period were in 4% or lower coupons and we continued to work toward establishing a weighting in line with the benchmark. |
The Fund’s notable detractors during the period
| • | The Fund’s holdings of bonds inside of two years and pre-refunded bonds produced modest total returns that underperformed the benchmark. We do not believe there is anything inherently wrong with these holdings. They are just very short and/or very high-quality holdings that are low yielding. In our view, they are natural reinvestment candidates and are excellent sources of liquidity. |
| • | The timing of a few purchases detracted from performance. Rates bottomed out during late July and into August. We were intentionally not very active during these periods as we believed the strong supply/demand technical environment was driving municipal bonds to potentially rich levels. However, we did purchase a few positions that we felt were attractive. As rates drifted up during the remainder of the period, these positions became performance detractors. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more
| 6 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Manager Discussion of Fund Performance (continued)
broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and net asset value. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 7 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2021 — October 31, 2021 |
| | Account value at the
beginning of the
period ($) | 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 | 1,001.10 | 1,021.19 | 3.74 | 3.78 | 0.75 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,003.20 | 1,022.44 | 2.50 | 2.52 | 0.50 |
| Class C | 1,000.00 | 1,000.00 | 999.70 | 1,018.95 | 5.98 | 6.04 | 1.20 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,002.40 | 1,022.44 | 2.50 | 2.52 | 0.50 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,002.80 | 1,022.79 | 2.15 | 2.17 | 0.43 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,003.80 | 1,023.04 | 1.90 | 1.92 | 0.38 |
| Class V | 1,000.00 | 1,000.00 | 1,001.60 | 1,021.69 | 3.24 | 3.28 | 0.65 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| 8 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments
October 31, 2021
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 98.0% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Air Transportation 1.5% |
| New York Transportation Development Corp.(a) |
| Refunding Revenue Bonds |
| American Airlines, Inc. Project |
| Series 2021 |
| 08/01/2031 | 3.000% | | 650,000 | 693,028 |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2020 |
| 12/01/2036 | 5.000% | | 800,000 | 988,343 |
| 12/01/2038 | 4.000% | | 300,000 | 338,192 |
| New York Transportation Development Corp. |
| Refunding Revenue Bonds |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2020 |
| 12/01/2038 | 5.000% | | 1,000,000 | 1,239,620 |
| Total | 3,259,183 |
| Charter Schools 1.2% |
| Build NYC Resource Corp. |
| Revenue Bonds |
| Academic Leadership Charter School Project |
| Series 2021 |
| 06/15/2036 | 4.000% | | 200,000 | 224,496 |
| International Leadership Charter School |
| Series 2013 |
| 07/01/2023 | 5.000% | | 765,000 | 789,118 |
| Build NYC Resource Corp.(b) |
| Revenue Bonds |
| International Leadership Charter School |
| Series 2016 |
| 07/01/2046 | 6.250% | | 420,000 | 454,801 |
| Monroe County Industrial Development Corp.(b) |
| Revenue Bonds |
| True North Rochester Preparatory Charter School Project |
| Series 2020 |
| 06/01/2040 | 5.000% | | 900,000 | 1,051,978 |
| Total | 2,520,393 |
| Health Services 1.8% |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Icahn School of Medicine at Mount Sinai |
| Series 2015 |
| 07/01/2030 | 5.000% | | 3,400,000 | 3,875,395 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Higher Education 7.1% |
| Albany Capital Resource Corp. |
| Refunding Revenue Bonds |
| Albany College of Pharmacy & Health Services |
| Series 2014 |
| 12/01/2031 | 5.000% | | 500,000 | 550,039 |
| Build NYC Resource Corp. |
| Refunding Revenue Bonds |
| City University of New York-Queens |
| Series 2014A |
| 06/01/2029 | 5.000% | | 225,000 | 250,187 |
| 06/01/2030 | 5.000% | | 300,000 | 333,582 |
| Manhattan College Project |
| Series 2017 |
| 08/01/2033 | 5.000% | | 400,000 | 475,190 |
| County of Saratoga |
| Revenue Bonds |
| Skidmore College Project |
| Series 2018 |
| 07/01/2033 | 5.000% | | 165,000 | 203,439 |
| 07/01/2034 | 5.000% | | 200,000 | 246,088 |
| 07/01/2035 | 5.000% | | 200,000 | 245,728 |
| Dutchess County Local Development Corp. |
| Refunding Revenue Bonds |
| Culinary Institute of America (The) |
| Series 2018 |
| 07/01/2032 | 5.000% | | 220,000 | 260,754 |
| Vassar College Project |
| Series 2017 |
| 07/01/2034 | 5.000% | | 500,000 | 605,571 |
| Revenue Bonds |
| Marist College Project |
| Series 2015A |
| 07/01/2029 | 5.000% | | 1,000,000 | 1,143,887 |
| Series 2018 |
| 07/01/2031 | 5.000% | | 170,000 | 209,983 |
| 07/01/2032 | 5.000% | | 210,000 | 258,914 |
| 07/01/2033 | 5.000% | | 205,000 | 252,316 |
| Hempstead Town Local Development Corp. |
| Revenue Bonds |
| Hofstra University Project |
| Series 2013 |
| 07/01/2028 | 5.000% | | 1,170,000 | 1,249,994 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Barnard College |
| Series 2015A |
| 07/01/2030 | 5.000% | | 700,000 | 799,775 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 9 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Rochester Institute |
| Series 2019A |
| 07/01/2036 | 5.000% | | 750,000 | 940,962 |
| St. John’s University |
| Series 2015A |
| 07/01/2030 | 5.000% | | 2,340,000 | 2,669,903 |
| Teacher’s College |
| Series 2017 |
| 07/01/2029 | 5.000% | | 175,000 | 212,578 |
| 07/01/2030 | 5.000% | | 150,000 | 181,890 |
| Revenue Bonds |
| New York University |
| Series 2019A |
| 07/01/2037 | 5.000% | | 2,000,000 | 2,543,124 |
| St. Lawrence County Industrial Development Agency(c) |
| Refunding Revenue Bonds |
| Clarkson University Project |
| Series 2021 |
| 09/01/2038 | 5.000% | | 200,000 | 246,727 |
| 09/01/2039 | 5.000% | | 200,000 | 246,115 |
| Tompkins County Development Corp. |
| Refunding Revenue Bonds |
| Ithaca College Project |
| Series 2018 |
| 07/01/2034 | 5.000% | | 575,000 | 699,733 |
| Troy Capital Resource Corp. |
| Refunding Revenue Bonds |
| Forward Delivery - Rensselaer Polytechnic Institute Project |
| Series 2020 |
| 09/01/2037 | 5.000% | | 250,000 | 315,508 |
| Total | 15,141,987 |
| Hospital 11.9% |
| Buffalo & Erie County Industrial Land Development Corp. |
| Revenue Bonds |
| Catholic Health System |
| Series 2015 |
| 07/01/2027 | 5.000% | | 400,000 | 449,671 |
| 07/01/2028 | 5.000% | | 360,000 | 402,941 |
| County of Saratoga |
| Revenue Bonds |
| Saratoga Hospital Project |
| Series 2013A |
| 12/01/2024 | 5.000% | | 1,085,000 | 1,187,526 |
| 12/01/2025 | 5.000% | | 1,115,000 | 1,219,628 |
| 12/01/2027 | 5.000% | | 1,225,000 | 1,338,341 |
| Dutchess County Local Development Corp. |
| Refunding Revenue Bonds |
| Nuvance Health Issue |
| Series 2019B |
| 07/01/2033 | 5.000% | | 1,250,000 | 1,563,092 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Monroe County Industrial Development Corp. |
| Refunding Revenue Bonds |
| Highland Hospital Rochester Project |
| Series 2015 |
| 07/01/2025 | 5.000% | | 450,000 | 515,491 |
| 07/01/2026 | 5.000% | | 350,000 | 399,577 |
| University of Rochester Project |
| Series 2017 |
| 07/01/2035 | 4.000% | | 1,285,000 | 1,472,721 |
| Revenue Bonds |
| Rochester General Hospital (The) |
| Series 2017 |
| 12/01/2035 | 5.000% | | 1,000,000 | 1,159,763 |
| Nassau County Local Economic Assistance Corp. |
| Revenue Bonds |
| Catholic Health Services of Long Island |
| Series 2014 |
| 07/01/2032 | 5.000% | | 1,250,000 | 1,385,343 |
| 07/01/2033 | 5.000% | | 675,000 | 747,142 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Catholic Health System Obligation Group |
| Series 2019 |
| 07/01/2035 | 5.000% | | 300,000 | 356,496 |
| 07/01/2036 | 5.000% | | 1,000,000 | 1,185,292 |
| Memorial Sloan-Kettering Cancer Center |
| Series 2017 |
| 07/01/2034 | 4.000% | | 1,000,000 | 1,148,746 |
| Montefiore Obligated Group |
| Series 2020A |
| 09/01/2037 | 4.000% | | 300,000 | 343,597 |
| North Shore - Long Island Jewish Obligation Group |
| Series 2015A |
| 05/01/2031 | 5.000% | | 3,000,000 | 3,424,573 |
| NYU Hospitals Center |
| Series 2014 |
| 07/01/2030 | 5.000% | | 1,000,000 | 1,115,017 |
| 07/01/2031 | 5.000% | | 1,000,000 | 1,114,453 |
| Revenue Bonds |
| Memorial Sloan Kettering Cancer Center |
| Series 2019 |
| 07/01/2035 | 5.000% | | 2,000,000 | 2,555,731 |
| 07/01/2036 | 5.000% | | 1,000,000 | 1,275,407 |
| New York State Dormitory Authority(b) |
| Refunding Revenue Bonds |
| Orange Regional Medical Center |
| Series 2017 |
| 12/01/2031 | 5.000% | | 1,000,000 | 1,191,766 |
| Total | 25,552,314 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Local General Obligation 17.5% |
| City of New York |
| Unlimited General Obligation Bonds |
| Fiscal 2020 |
| Series 2019B-1 |
| 10/01/2038 | 5.000% | | 1,000,000 | 1,248,487 |
| Subordinated Series 2019H-A |
| 01/01/2035 | 5.000% | | 1,500,000 | 1,853,503 |
| Unlimited General Obligation Refunding Bonds |
| Series 2014J |
| 08/01/2030 | 5.000% | | 1,500,000 | 1,681,462 |
| Series 2019E |
| 08/01/2025 | 5.000% | | 1,000,000 | 1,164,319 |
| Series 2020A-1 |
| 08/01/2033 | 5.000% | | 1,000,000 | 1,282,436 |
| Series 2020D |
| 08/01/2031 | 5.000% | | 2,000,000 | 2,581,689 |
| Unlimited General Obligation Refunding Notes |
| Series 2016C |
| 08/01/2032 | 5.000% | | 2,000,000 | 2,346,756 |
| City of Syracuse |
| Limited General Obligation Refunding & Public Improvement Bonds |
| Series 2014 |
| 08/15/2023 | 5.000% | | 405,000 | 438,430 |
| Limited General Obligation Refunding Bonds |
| Series 2015A |
| 03/01/2024 | 5.000% | | 1,000,000 | 1,105,941 |
| City of Yonkers |
| Limited General Obligation Bonds |
| Series 2016A (AGM) |
| 11/15/2028 | 5.000% | | 1,780,000 | 2,130,425 |
| Series 2017A (BAM) |
| 09/01/2028 | 5.000% | | 2,090,000 | 2,550,236 |
| County of Allegany |
| Limited General Obligation Refunding Bonds |
| Public Improvement |
| Series 2014 (BAM) |
| 09/15/2028 | 5.000% | | 1,375,000 | 1,545,247 |
| County of Monroe(a) |
| Limited General Obligation Public Improvement Bonds |
| Series 2019B (BAM) |
| 06/01/2027 | 5.000% | | 1,350,000 | 1,621,249 |
| County of Nassau |
| Limited General Obligation Bonds |
| Series 2017B |
| 04/01/2033 | 5.000% | | 2,000,000 | 2,389,337 |
| County of Rockland |
| Limited General Obligation Bonds |
| Series 2014A (AGM) |
| 03/01/2024 | 5.000% | | 1,450,000 | 1,607,555 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Monroe County Industrial Development Agency |
| Revenue Bonds |
| Rochester Schools Modernization Program |
| Series 2018 |
| 05/01/2034 | 5.000% | | 750,000 | 920,624 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| School Districts Bond Financing |
| Series 2013E (AGM) |
| 10/01/2031 | 5.000% | | 500,000 | 561,870 |
| School Districts Financing Program |
| Series 2015B (AGM) |
| 10/01/2027 | 5.000% | | 2,010,000 | 2,344,864 |
| Revenue Bonds |
| School District Building Financing Program |
| Series 2018 |
| 10/01/2032 | 5.000% | | 2,000,000 | 2,395,878 |
| Ramapo Local Development Corp. |
| Refunding Revenue Bonds |
| Guaranteed |
| Series 2013 |
| 03/15/2028 | 5.000% | | 2,180,000 | 2,261,280 |
| Syracuse Industrial Development Agency |
| Revenue Bonds |
| Syracuse City School District Project |
| Series 2020A |
| 05/01/2029 | 5.000% | | 1,000,000 | 1,248,821 |
| Town of Oyster Bay |
| Limited General Obligation Refunding & Public Improvement Bonds |
| Series 2014B |
| 08/15/2023 | 5.000% | | 1,850,000 | 2,003,053 |
| Limited General Obligation Refunding Bonds |
| Series 2020 (BAM) |
| 11/01/2027 | 4.000% | | 250,000 | 292,342 |
| Total | 37,575,804 |
| Multi-Family 1.6% |
| Amherst Development Corp. |
| Refunding Revenue Bonds |
| University of Buffalo Student Housing |
| Series 2017 (AGM) |
| 10/01/2028 | 5.000% | | 730,000 | 892,536 |
| 10/01/2029 | 5.000% | | 1,290,000 | 1,570,571 |
| Onondaga County Trust for Cultural Resources |
| Refunding Revenue Bonds |
| Abby Lane Housing Corp. Project |
| Series 2017 |
| 05/01/2030 | 5.000% | | 420,000 | 494,861 |
| 05/01/2031 | 5.000% | | 400,000 | 469,455 |
| Total | 3,427,423 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 11 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Municipal Power 6.6% |
| Long Island Power Authority |
| Refunding Revenue Bonds |
| Series 2014A |
| 09/01/2034 | 5.000% | | 2,000,000 | 2,246,347 |
| Series 2016B |
| 09/01/2025 | 5.000% | | 2,500,000 | 2,926,742 |
| 09/01/2027 | 5.000% | | 1,000,000 | 1,201,538 |
| 09/01/2030 | 5.000% | | 2,750,000 | 3,273,960 |
| Series 2020A |
| 09/01/2033 | 5.000% | | 500,000 | 650,523 |
| Revenue Bonds |
| Electric System General Purpose |
| Series 2015B |
| 09/01/2032 | 5.000% | | 765,000 | 885,156 |
| General |
| Series 2017 |
| 09/01/2035 | 5.000% | | 1,200,000 | 1,464,509 |
| Series 2012B |
| 09/01/2026 | 5.000% | | 1,510,000 | 1,569,403 |
| Total | 14,218,178 |
| Nursing Home 0.7% |
| Monroe County Industrial Development Corp. |
| Refunding Revenue Bonds |
| St. Ann’s Community Project |
| Series 2019 |
| 01/01/2030 | 4.000% | | 1,415,000 | 1,544,981 |
| Other Bond Issue 1.0% |
| Build NYC Resource Corp. |
| Revenue Bonds |
| Children’s Aid Society Project (The) |
| Series 2019 |
| 07/01/2036 | 4.000% | | 100,000 | 116,116 |
| Series 2015 |
| 07/01/2029 | 5.000% | | 545,000 | 618,568 |
| 07/01/2031 | 5.000% | | 715,000 | 809,803 |
| New York Transportation Development Corp.(a) |
| Revenue Bonds |
| New York State Thruway Service Areas Project |
| Series 2021 |
| 10/31/2034 | 4.000% | | 500,000 | 582,191 |
| Total | 2,126,678 |
| Other Industrial Development Bond 1.2% |
| Chautauqua County Capital Resource Corp. |
| Refunding Revenue Bonds |
| NRG Energy Project |
| Series 2020 (Mandatory Put 04/03/23) |
| 04/01/2042 | 1.300% | | 2,500,000 | 2,513,142 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Other Revenue 0.2% |
| New York City Trust for Cultural Resources |
| Refunding Revenue Bonds |
| Carnegie Hall |
| Series 2019 |
| 12/01/2037 | 5.000% | | 275,000 | 345,133 |
| Pool / Bond Bank 2.0% |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| New School |
| Series 2015 |
| 07/01/2029 | 5.000% | | 420,000 | 479,291 |
| Revenue Bonds |
| School District Financing Program |
| Series 2012B |
| 10/01/2026 | 5.000% | | 3,000,000 | 3,125,834 |
| New York State Environmental Facilities Corp. |
| Refunding Revenue Bonds |
| Subordinated Series 2019B |
| 06/15/2029 | 5.000% | | 500,000 | 643,578 |
| Total | 4,248,703 |
| Ports 6.5% |
| Port Authority of New York & New Jersey |
| Refunding Revenue Bonds |
| Consolidated 184th |
| Series 2014 |
| 09/01/2030 | 5.000% | | 2,000,000 | 2,253,579 |
| Consolidated 211th |
| Series 2018 |
| 09/01/2038 | 4.000% | | 1,400,000 | 1,635,406 |
| Series 2018-209 |
| 07/15/2034 | 5.000% | | 2,500,000 | 3,097,081 |
| Series 2018-211 |
| 09/01/2036 | 5.000% | | 1,000,000 | 1,238,558 |
| Port Authority of New York & New Jersey(a) |
| Refunding Revenue Bonds |
| Series 2015-188 |
| 05/01/2023 | 5.000% | | 1,055,000 | 1,127,733 |
| Series 2018-207 |
| 09/15/2024 | 5.000% | | 1,985,000 | 2,235,015 |
| Revenue Bonds |
| Consolidated |
| Series 2019 |
| 09/01/2033 | 5.000% | | 1,000,000 | 1,236,934 |
| Consolidated Bonds |
| Series 221 |
| 07/15/2037 | 4.000% | | 1,000,000 | 1,163,345 |
| Total | 13,987,651 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Prep School 1.4% |
| Build NYC Resource Corp. |
| Refunding Revenue Bonds |
| Horace Mann School Project |
| Series 2014 |
| 07/01/2026 | 5.000% | | 475,000 | 533,264 |
| 07/01/2027 | 5.000% | | 600,000 | 671,044 |
| Series 2015 |
| 06/01/2026 | 5.000% | | 225,000 | 257,509 |
| 06/01/2028 | 5.000% | | 250,000 | 283,734 |
| Rensselaer County Industrial Development Agency |
| Refunding Revenue Bonds |
| Emma Willard School Project |
| Series 2015A |
| 01/01/2034 | 5.000% | | 450,000 | 507,119 |
| 01/01/2035 | 5.000% | | 590,000 | 663,985 |
| Total | 2,916,655 |
| Refunded / Escrowed 5.2% |
| Build NYC Resource Corp. |
| Prerefunded 07/01/24 Revenue Bonds |
| New York Methodist Hospital Project |
| Series 2014 |
| 07/01/2028 | 5.000% | | 150,000 | 168,186 |
| 07/01/2029 | 5.000% | | 175,000 | 196,217 |
| Prerefunded 08/01/25 Revenue Bonds |
| YMCA of Greater New York Project |
| Series 2015 |
| 08/01/2029 | 5.000% | | 430,000 | 500,031 |
| Dutchess County Local Development Corp. |
| Prerefunded 07/01/24 Revenue Bonds |
| Series 2014A |
| 07/01/2034 | 5.000% | | 300,000 | 336,372 |
| Metropolitan Transportation Authority |
| Prerefunded 11/15/24 Revenue Bonds |
| Series 2014C |
| 11/15/2029 | 5.000% | | 3,000,000 | 3,422,931 |
| New York State Dormitory Authority |
| Prerefunded 07/01/22 Revenue Bonds |
| Culinary Institute of America |
| Series 2012 |
| 07/01/2028 | 5.000% | | 500,000 | 515,681 |
| Prerefunded 07/01/24 Revenue Bonds |
| Pratt Institute |
| Series 2015A |
| 07/01/2034 | 5.000% | | 2,000,000 | 2,242,482 |
| Prerefunded 07/01/25 Revenue Bonds |
| New School |
| Series 2015 |
| 07/01/2029 | 5.000% | | 30,000 | 34,825 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New York State Dormitory Authority(d) |
| Revenue Bonds |
| Capital Appreciation-Memorial Sloan-Kettering Cancer Center |
| Series 2003-1 Escrowed to Maturity (NPFGC) |
| 07/01/2025 | 0.000% | | 3,750,000 | 3,675,742 |
| Total | 11,092,467 |
| Retirement Communities 2.6% |
| Brookhaven Local Development Corp. |
| Refunding Revenue Bonds |
| Jefferson’s Ferry Project |
| Series 2016 |
| 11/01/2036 | 5.250% | | 750,000 | 885,024 |
| Buffalo & Erie County Industrial Land Development Corp. |
| Refunding Revenue Bonds |
| Orchard Park |
| Series 2015 |
| 11/15/2029 | 5.000% | | 550,000 | 622,114 |
| 11/15/2030 | 5.000% | | 650,000 | 732,512 |
| Suffolk County Economic Development Corp. |
| Refunding Revenue Bonds |
| Peconic Landing at Southhold, Inc. |
| Series 2020 |
| 12/01/2034 | 5.000% | | 1,000,000 | 1,158,179 |
| Tompkins County Development Corp. |
| Refunding Revenue Bonds |
| Kendal at Ithaca, Inc. Project |
| Series 2014 |
| 07/01/2029 | 5.000% | | 1,000,000 | 1,100,982 |
| 07/01/2034 | 5.000% | | 1,000,000 | 1,093,242 |
| Total | 5,592,053 |
| Single Family 0.0% |
| State of New York Mortgage Agency |
| Refunding Revenue Bonds |
| Series 2018-211 |
| 10/01/2038 | 3.625% | | 110,000 | 117,441 |
| Special Non Property Tax 11.7% |
| New York City Transitional Finance Authority |
| Refunding Revenue Bonds |
| Building Aid |
| Series 2018S-2A |
| 07/15/2036 | 5.000% | | 2,000,000 | 2,471,469 |
| Future Tax Secured |
| Subordinated Series 2020 |
| 11/01/2035 | 4.000% | | 500,000 | 590,953 |
| Revenue Bonds |
| Building Aid |
| Series 2018S-3 |
| 07/15/2034 | 5.000% | | 1,000,000 | 1,237,383 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 13 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Future Tax Bonds |
| Subordinated Series 2020C |
| 05/01/2037 | 4.000% | | 500,000 | 586,465 |
| Future Tax Secured |
| Subordinated Series 2016E-1 |
| 02/01/2032 | 5.000% | | 3,000,000 | 3,518,762 |
| Subordinated Series 2019 |
| 11/01/2034 | 5.000% | | 3,500,000 | 4,407,211 |
| New York Convention Center Development Corp. |
| Refunding Revenue Bonds |
| Hotel Unit Fee Secured |
| Series 2015 |
| 11/15/2027 | 5.000% | | 4,120,000 | 4,784,828 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Education |
| Series 2005B (AMBAC) |
| 03/15/2026 | 5.500% | | 1,000,000 | 1,206,804 |
| Series 2019A-2 |
| 03/15/2035 | 5.000% | | 2,000,000 | 2,507,299 |
| New York State Urban Development Corp. |
| Refunding Revenue Bonds |
| State Personal Income Tax |
| Series 2020C |
| 03/15/2037 | 4.000% | | 1,000,000 | 1,180,493 |
| 03/15/2039 | 4.000% | | 1,130,000 | 1,327,847 |
| Revenue Bonds |
| Series 2020A |
| 03/15/2037 | 5.000% | | 1,000,000 | 1,269,675 |
| Total | 25,089,189 |
| Special Property Tax 0.6% |
| Hudson Yards Infrastructure Corp. |
| Refunding Revenue Bonds |
| Series 2017A |
| 02/15/2033 | 5.000% | | 1,000,000 | 1,194,355 |
| Tobacco 2.7% |
| Chautauqua Tobacco Asset Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2014 |
| 06/01/2029 | 5.000% | | 2,165,000 | 2,169,438 |
| Suffolk Tobacco Asset Securitization Corp. |
| Refunding Revenue Bonds |
| Tobacco Settlement Asset-Backed Bonds |
| Series 2021 |
| 06/01/2038 | 4.000% | | 1,000,000 | 1,172,048 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| TSASC, Inc. |
| Refunding Revenue Bonds |
| Series 2017A |
| 06/01/2031 | 5.000% | | 2,000,000 | 2,375,262 |
| Total | 5,716,748 |
| Transportation 6.0% |
| Metropolitan Transportation Authority |
| Refunding Revenue Bonds |
| Climate Bond Certified - Green |
| Series 2018 |
| 11/15/2026 | 5.000% | | 2,590,000 | 3,089,584 |
| Revenue Bonds |
| BAN Series 2019B-1 |
| 05/15/2022 | 5.000% | | 2,100,000 | 2,152,645 |
| BAN Series 2019D-1 |
| 09/01/2022 | 5.000% | | 2,000,000 | 2,077,583 |
| Series 2005B (AMBAC) |
| 11/15/2024 | 5.250% | | 750,000 | 857,458 |
| Series 2016C-1 |
| 11/15/2036 | 5.000% | | 3,000,000 | 3,486,892 |
| Metropolitan Transportation Authority(d) |
| Refunding Revenue Bonds |
| Green Bonds |
| Series 2017C-2 |
| 11/15/2029 | 0.000% | | 1,500,000 | 1,281,850 |
| Total | 12,946,012 |
| Turnpike / Bridge / Toll Road 5.9% |
| New York State Bridge Authority |
| Revenue Bonds |
| Series 2021A |
| 01/01/2038 | 4.000% | | 200,000 | 238,896 |
| 01/01/2039 | 4.000% | | 275,000 | 327,680 |
| New York State Thruway Authority |
| Refunding Revenue Bonds |
| Series 2014K |
| 01/01/2029 | 5.000% | | 1,850,000 | 2,100,497 |
| 01/01/2032 | 5.000% | | 1,000,000 | 1,130,693 |
| Revenue Bonds |
| Junior Lien |
| Series 2016A |
| 01/01/2033 | 5.000% | | 1,000,000 | 1,166,675 |
| Series 2019B |
| 01/01/2036 | 5.000% | | 2,000,000 | 2,522,964 |
| Triborough Bridge & Tunnel Authority |
| Refunding Revenue Bonds |
| Series 2018-B |
| 11/15/2031 | 5.000% | | 2,000,000 | 2,680,244 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Series 2020D |
| 11/15/2037 | 4.000% | | 2,050,000 | 2,450,984 |
| Total | 12,618,633 |
| Water & Sewer 1.1% |
| Buffalo Municipal Water Finance Authority |
| Refunding Revenue Bonds |
| Series 2015A |
| 07/01/2028 | 5.000% | | 700,000 | 807,898 |
| New York City Water & Sewer System |
| Refunding Revenue Bonds |
| Series 2019AA |
| 06/15/2032 | 5.000% | | 1,000,000 | 1,290,142 |
| Western Nassau County Water Authority |
| Revenue Bonds |
| Series 2015A |
| 04/01/2027 | 5.000% | | 145,000 | 166,218 |
| 04/01/2028 | 5.000% | | 175,000 | 200,225 |
| Total | 2,464,483 |
Total Municipal Bonds
(Cost $197,575,359) | 210,085,001 |
| Money Market Funds 1.3% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.010%(e) | 200,206 | 200,186 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.006%(e) | 2,701,405 | 2,701,405 |
Total Money Market Funds
(Cost $2,901,611) | 2,901,591 |
Total Investments in Securities
(Cost: $200,476,970) | 212,986,592 |
| Other Assets & Liabilities, Net | | 1,472,030 |
| Net Assets | 214,458,622 |
Notes to Portfolio of Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At October 31, 2021, the total value of these securities amounted to $2,698,545, which represents 1.26% of total net assets. |
| (c) | Represents a security purchased on a when-issued basis. |
| (d) | Zero coupon bond. |
| (e) | The rate shown is the seven-day current annualized yield at October 31, 2021. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 15 |
Portfolio of Investments (continued)
October 31, 2021
Fair value measurements (continued)
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of the inputs used to value the Fund’s investments at October 31, 2021:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 210,085,001 | — | 210,085,001 |
| Money Market Funds | 2,901,591 | — | — | 2,901,591 |
| Total Investments in Securities | 2,901,591 | 210,085,001 | — | 212,986,592 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Assets and Liabilities
October 31, 2021
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $200,476,970) | $212,986,592 |
| Receivable for: | |
| Capital shares sold | 115,671 |
| Interest | 2,583,613 |
| Expense reimbursement due from Investment Manager | 765 |
| Prepaid expenses | 4,543 |
| Trustees’ deferred compensation plan | 99,151 |
| Total assets | 215,790,335 |
| Liabilities | |
| Due to custodian | 5,235 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 505,982 |
| Capital shares purchased | 300,880 |
| Distributions to shareholders | 370,549 |
| Management services fees | 2,762 |
| Distribution and/or service fees | 238 |
| Transfer agent fees | 21,289 |
| Compensation of board members | 6,247 |
| Compensation of chief compliance officer | 6 |
| Other expenses | 19,374 |
| Trustees’ deferred compensation plan | 99,151 |
| Total liabilities | 1,331,713 |
| Net assets applicable to outstanding capital stock | $214,458,622 |
| Represented by | |
| Paid in capital | 201,489,478 |
| Total distributable earnings (loss) | 12,969,144 |
| Total - representing net assets applicable to outstanding capital stock | $214,458,622 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 17 |
Statement of Assets and Liabilities (continued)
October 31, 2021
| Class A | |
| Net assets | $20,314,976 |
| Shares outstanding | 1,679,769 |
| Net asset value per share | $12.09 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $12.46 |
| Advisor Class | |
| Net assets | $6,108,914 |
| Shares outstanding | 505,874 |
| Net asset value per share | $12.08 |
| Class C | |
| Net assets | $4,061,667 |
| Shares outstanding | 335,784 |
| Net asset value per share | $12.10 |
| Institutional Class | |
| Net assets | $173,347,094 |
| Shares outstanding | 14,334,857 |
| Net asset value per share | $12.09 |
| Institutional 2 Class | |
| Net assets | $4,283,878 |
| Shares outstanding | 353,704 |
| Net asset value per share | $12.11 |
| Institutional 3 Class | |
| Net assets | $1,259,262 |
| Shares outstanding | 103,767 |
| Net asset value per share | $12.14 |
| Class V | |
| Net assets | $5,082,831 |
| Shares outstanding | 420,329 |
| Net asset value per share | $12.09 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $12.69 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Operations
Year Ended October 31, 2021
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $395 |
| Interest | 5,870,311 |
| Total income | 5,870,706 |
| Expenses: | |
| Management services fees | 1,044,472 |
| Distribution and/or service fees | |
| Class A | 50,580 |
| Class C | 50,766 |
| Class V | 7,935 |
| Transfer agent fees | |
| Class A | 25,986 |
| Advisor Class | 6,855 |
| Class C | 6,531 |
| Institutional Class | 233,221 |
| Institutional 2 Class | 2,120 |
| Institutional 3 Class | 154 |
| Class V | 6,798 |
| Compensation of board members | 16,665 |
| Custodian fees | 1,692 |
| Printing and postage fees | 14,483 |
| Registration fees | 22,553 |
| Audit fees | 29,500 |
| Legal fees | 11,979 |
| Compensation of chief compliance officer | 59 |
| Other | 14,589 |
| Total expenses | 1,546,938 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (331,343) |
| Fees waived by distributor | |
| Class C | (15,236) |
| Expense reduction | (120) |
| Total net expenses | 1,200,239 |
| Net investment income | 4,670,467 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 411,451 |
| Net realized gain | 411,451 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 1,823,798 |
| Net change in unrealized appreciation (depreciation) | 1,823,798 |
| Net realized and unrealized gain | 2,235,249 |
| Net increase in net assets resulting from operations | $6,905,716 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 19 |
Statement of Changes in Net Assets
| | Year Ended
October 31, 2021 | Year Ended
October 31, 2020 |
| Operations | | |
| Net investment income | $4,670,467 | $5,308,482 |
| Net realized gain | 411,451 | 55,729 |
| Net change in unrealized appreciation (depreciation) | 1,823,798 | (1,689,731) |
| Net increase in net assets resulting from operations | 6,905,716 | 3,674,480 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (399,260) | (435,260) |
| Advisor Class | (118,391) | (70,536) |
| Class C | (77,803) | (142,386) |
| Institutional Class | (4,035,527) | (4,487,096) |
| Institutional 2 Class | (84,123) | (88,328) |
| Institutional 3 Class | (26,504) | (20,088) |
| Class V | (109,630) | (124,102) |
| Total distributions to shareholders | (4,851,238) | (5,367,796) |
| Increase (decrease) in net assets from capital stock activity | (18,739,579) | 367,301 |
| Total decrease in net assets | (16,685,101) | (1,326,015) |
| Net assets at beginning of year | 231,143,723 | 232,469,738 |
| Net assets at end of year | $214,458,622 | $231,143,723 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | October 31, 2021 | October 31, 2020 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 348,558 | 4,260,555 | 525,042 | 6,273,123 |
| Distributions reinvested | 21,303 | 259,677 | 26,928 | 323,854 |
| Redemptions | (528,646) | (6,430,053) | (309,519) | (3,699,143) |
| Net increase (decrease) | (158,785) | (1,909,821) | 242,451 | 2,897,834 |
| Advisor Class | | | | |
| Subscriptions | 199,900 | 2,437,253 | 292,545 | 3,496,582 |
| Distributions reinvested | 9,707 | 118,166 | 5,861 | 70,298 |
| Redemptions | (50,639) | (617,372) | (53,864) | (635,846) |
| Net increase | 158,968 | 1,938,047 | 244,542 | 2,931,034 |
| Class C | | | | |
| Subscriptions | 39,109 | 476,677 | 72,543 | 870,408 |
| Distributions reinvested | 5,177 | 63,111 | 8,174 | 98,319 |
| Redemptions | (235,292) | (2,874,573) | (381,829) | (4,589,929) |
| Net decrease | (191,006) | (2,334,785) | (301,112) | (3,621,202) |
| Institutional Class | | | | |
| Subscriptions | 562,131 | 6,853,396 | 2,173,205 | 26,104,364 |
| Distributions reinvested | 56,273 | 685,922 | 58,372 | 701,951 |
| Redemptions | (2,011,197) | (24,512,912) | (2,382,265) | (28,436,761) |
| Net decrease | (1,392,793) | (16,973,594) | (150,688) | (1,630,446) |
| Institutional 2 Class | | | | |
| Subscriptions | 93,240 | 1,138,193 | 31,024 | 371,719 |
| Distributions reinvested | 6,872 | 83,895 | 7,309 | 88,088 |
| Redemptions | (36,868) | (448,169) | (71,688) | (851,545) |
| Net increase (decrease) | 63,244 | 773,919 | (33,355) | (391,738) |
| Institutional 3 Class | | | | |
| Subscriptions | 21,852 | 268,366 | 39,641 | 474,530 |
| Distributions reinvested | 1,806 | 22,090 | 1,280 | 15,453 |
| Redemptions | (8,370) | (102,238) | (8,399) | (103,615) |
| Net increase | 15,288 | 188,218 | 32,522 | 386,368 |
| Class V | | | | |
| Subscriptions | 2,290 | 27,897 | 1,798 | 21,604 |
| Distributions reinvested | 5,784 | 70,504 | 6,300 | 75,767 |
| Redemptions | (42,567) | (519,964) | (25,150) | (301,920) |
| Net decrease | (34,493) | (421,563) | (17,052) | (204,549) |
| Total net increase (decrease) | (1,539,577) | (18,739,579) | 17,308 | 367,301 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 21 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A |
| Year Ended 10/31/2021 | $11.99 | 0.23 | 0.11 | 0.34 | (0.24) | (0.00)(c) | (0.24) |
| Year Ended 10/31/2020 | $12.07 | 0.25 | (0.07) | 0.18 | (0.26) | (0.00)(c) | (0.26) |
| Year Ended 10/31/2019 | $11.46 | 0.29 | 0.61 | 0.90 | (0.29) | — | (0.29) |
| Year Ended 10/31/2018 | $11.91 | 0.31 | (0.44) | (0.13) | (0.31) | (0.01) | (0.32) |
| Year Ended 10/31/2017 | $12.09 | 0.32 | (0.18) | 0.14 | (0.32) | (0.00)(c) | (0.32) |
| Advisor Class |
| Year Ended 10/31/2021 | $11.98 | 0.26 | 0.11 | 0.37 | (0.27) | (0.00)(c) | (0.27) |
| Year Ended 10/31/2020 | $12.06 | 0.28 | (0.07) | 0.21 | (0.29) | (0.00)(c) | (0.29) |
| Year Ended 10/31/2019 | $11.45 | 0.32 | 0.61 | 0.93 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $11.90 | 0.34 | (0.44) | (0.10) | (0.34) | (0.01) | (0.35) |
| Year Ended 10/31/2017 | $12.08 | 0.35 | (0.18) | 0.17 | (0.35) | (0.00)(c) | (0.35) |
| Class C |
| Year Ended 10/31/2021 | $12.00 | 0.18 | 0.10 | 0.28 | (0.18) | (0.00)(c) | (0.18) |
| Year Ended 10/31/2020 | $12.07 | 0.20 | (0.07) | 0.13 | (0.20) | (0.00)(c) | (0.20) |
| Year Ended 10/31/2019 | $11.46 | 0.24 | 0.61 | 0.85 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $11.91 | 0.26 | (0.44) | (0.18) | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2017 | $12.09 | 0.27 | (0.18) | 0.09 | (0.27) | (0.00)(c) | (0.27) |
| Institutional Class |
| Year Ended 10/31/2021 | $11.99 | 0.26 | 0.11 | 0.37 | (0.27) | (0.00)(c) | (0.27) |
| Year Ended 10/31/2020 | $12.07 | 0.28 | (0.07) | 0.21 | (0.29) | (0.00)(c) | (0.29) |
| Year Ended 10/31/2019 | $11.46 | 0.32 | 0.61 | 0.93 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $11.91 | 0.34 | (0.44) | (0.10) | (0.34) | (0.01) | (0.35) |
| Year Ended 10/31/2017 | $12.09 | 0.35 | (0.18) | 0.17 | (0.35) | (0.00)(c) | (0.35) |
| Institutional 2 Class |
| Year Ended 10/31/2021 | $12.01 | 0.27 | 0.11 | 0.38 | (0.28) | (0.00)(c) | (0.28) |
| Year Ended 10/31/2020 | $12.09 | 0.29 | (0.08) | 0.21 | (0.29) | (0.00)(c) | (0.29) |
| Year Ended 10/31/2019 | $11.48 | 0.33 | 0.61 | 0.94 | (0.33) | — | (0.33) |
| Year Ended 10/31/2018 | $11.93 | 0.35 | (0.44) | (0.09) | (0.35) | (0.01) | (0.36) |
| Year Ended 10/31/2017 | $12.11 | 0.36 | (0.18) | 0.18 | (0.36) | (0.00)(c) | (0.36) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 10/31/2021 | $12.09 | 2.84% | 0.90% | 0.75%(d) | 1.89% | 3% | $20,315 |
| Year Ended 10/31/2020 | $11.99 | 1.47% | 0.89% | 0.75%(d) | 2.10% | 7% | $22,051 |
| Year Ended 10/31/2019 | $12.07 | 7.96% | 0.90% | 0.75%(d) | 2.46% | 19% | $19,270 |
| Year Ended 10/31/2018 | $11.46 | (1.11%) | 0.89% | 0.75%(d) | 2.68% | 15% | $13,368 |
| Year Ended 10/31/2017 | $11.91 | 1.24% | 0.91%(e) | 0.74%(d),(e) | 2.70% | 9% | $15,639 |
| Advisor Class |
| Year Ended 10/31/2021 | $12.08 | 3.09% | 0.65% | 0.50%(d) | 2.14% | 3% | $6,109 |
| Year Ended 10/31/2020 | $11.98 | 1.72% | 0.65% | 0.50%(d) | 2.34% | 7% | $4,155 |
| Year Ended 10/31/2019 | $12.06 | 8.23% | 0.65% | 0.50%(d) | 2.71% | 19% | $1,234 |
| Year Ended 10/31/2018 | $11.45 | (0.87%) | 0.64% | 0.50%(d) | 2.91% | 15% | $745 |
| Year Ended 10/31/2017 | $11.90 | 1.49% | 0.66%(e) | 0.49%(d),(e) | 2.96% | 9% | $1,296 |
| Class C |
| Year Ended 10/31/2021 | $12.10 | 2.37% | 1.65% | 1.20%(d) | 1.45% | 3% | $4,062 |
| Year Ended 10/31/2020 | $12.00 | 1.09% | 1.64% | 1.20%(d) | 1.66% | 7% | $6,319 |
| Year Ended 10/31/2019 | $12.07 | 7.47% | 1.65% | 1.20%(d) | 2.05% | 19% | $9,996 |
| Year Ended 10/31/2018 | $11.46 | (1.56%) | 1.64% | 1.20%(d) | 2.23% | 15% | $12,491 |
| Year Ended 10/31/2017 | $11.91 | 0.78% | 1.66%(e) | 1.19%(d),(e) | 2.25% | 9% | $17,015 |
| Institutional Class |
| Year Ended 10/31/2021 | $12.09 | 3.09% | 0.65% | 0.50%(d) | 2.14% | 3% | $173,347 |
| Year Ended 10/31/2020 | $11.99 | 1.72% | 0.64% | 0.50%(d) | 2.36% | 7% | $188,611 |
| Year Ended 10/31/2019 | $12.07 | 8.23% | 0.65% | 0.50%(d) | 2.72% | 19% | $191,680 |
| Year Ended 10/31/2018 | $11.46 | (0.87%) | 0.64% | 0.50%(d) | 2.93% | 15% | $169,671 |
| Year Ended 10/31/2017 | $11.91 | 1.49% | 0.66%(e) | 0.49%(d),(e) | 2.95% | 9% | $197,180 |
| Institutional 2 Class |
| Year Ended 10/31/2021 | $12.11 | 3.16% | 0.58% | 0.43% | 2.21% | 3% | $4,284 |
| Year Ended 10/31/2020 | $12.01 | 1.79% | 0.57% | 0.43% | 2.43% | 7% | $3,489 |
| Year Ended 10/31/2019 | $12.09 | 8.29% | 0.58% | 0.43% | 2.77% | 19% | $3,916 |
| Year Ended 10/31/2018 | $11.48 | (0.77%) | 0.58% | 0.44% | 3.03% | 15% | $1,472 |
| Year Ended 10/31/2017 | $11.93 | 1.56% | 0.58%(e) | 0.42%(e) | 3.02% | 9% | $215 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 23 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $12.03 | 0.28 | 0.12 | 0.40 | (0.29) | (0.00)(c) | (0.29) |
| Year Ended 10/31/2020 | $12.12 | 0.29 | (0.08) | 0.21 | (0.30) | (0.00)(c) | (0.30) |
| Year Ended 10/31/2019 | $11.50 | 0.33 | 0.63 | 0.96 | (0.34) | — | (0.34) |
| Year Ended 10/31/2018 | $11.95 | 0.36 | (0.45) | (0.09) | (0.35) | (0.01) | (0.36) |
| Year Ended 10/31/2017(f) | $11.81 | 0.24 | 0.14(g) | 0.38 | (0.24) | — | (0.24) |
| Class V |
| Year Ended 10/31/2021 | $11.99 | 0.24 | 0.11 | 0.35 | (0.25) | (0.00)(c) | (0.25) |
| Year Ended 10/31/2020 | $12.07 | 0.26 | (0.07) | 0.19 | (0.27) | (0.00)(c) | (0.27) |
| Year Ended 10/31/2019 | $11.46 | 0.31 | 0.61 | 0.92 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $11.91 | 0.33 | (0.45) | (0.12) | (0.32) | (0.01) | (0.33) |
| Year Ended 10/31/2017 | $12.09 | 0.33 | (0.17) | 0.16 | (0.34) | (0.00)(c) | (0.34) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Rounds to zero. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor
Class | Class C | Institutional
Class | Institutional 2
Class | Class V |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (f) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (g) | 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 subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (h) | Annualized. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $12.14 | 3.29% | 0.53% | 0.38% | 2.26% | 3% | $1,259 |
| Year Ended 10/31/2020 | $12.03 | 1.75% | 0.53% | 0.39% | 2.45% | 7% | $1,065 |
| Year Ended 10/31/2019 | $12.12 | 8.41% | 0.54% | 0.39% | 2.80% | 19% | $678 |
| Year Ended 10/31/2018 | $11.50 | (0.73%) | 0.54% | 0.38% | 3.05% | 15% | $190 |
| Year Ended 10/31/2017(f) | $11.95 | 3.24% | 0.52%(h) | 0.39%(h) | 3.06%(h) | 9% | $335 |
| Class V |
| Year Ended 10/31/2021 | $12.09 | 2.94% | 0.80% | 0.65%(d) | 1.99% | 3% | $5,083 |
| Year Ended 10/31/2020 | $11.99 | 1.57% | 0.79% | 0.65%(d) | 2.21% | 7% | $5,454 |
| Year Ended 10/31/2019 | $12.07 | 8.07% | 0.80% | 0.65%(d) | 2.59% | 19% | $5,696 |
| Year Ended 10/31/2018 | $11.46 | (1.01%) | 0.79% | 0.65%(d) | 2.78% | 15% | $6,077 |
| Year Ended 10/31/2017 | $11.91 | 1.33% | 0.81%(e) | 0.64%(d),(e) | 2.80% | 9% | $6,533 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 25 |
Notes to Financial Statements
October 31, 2021
Note 1. Organization
Columbia New York Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-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 each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Effective April 1, 2021, Class C shares automatically convert to Class A shares after 8 years. Prior to April 1, 2021, Class C shares automatically converted to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
| 26 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 27 |
Notes to Financial Statements (continued)
October 31, 2021
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2021 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| 28 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
For the year ended October 31, 2021, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.13 |
| Advisor Class | 0.13 |
| Class C | 0.13 |
| Institutional Class | 0.13 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class V | 0.13 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2021, these minimum account balance fees reduced total expenses of the Fund by $120.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has contractually agreed to waive a portion of the distribution fee for Class C shares through February 28, 2022 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 at the sole discretion of the Board of Trustees.
Shareholder services fees
The Fund has adopted a shareholder services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40% of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2021, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 473 |
| Class C | — | 1.00(b) | 7 |
| Class V | 4.75 | 0.50 - 1.00(c) | 502 |
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 29 |
Notes to Financial Statements (continued)
October 31, 2021
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | Fee rate(s) contractual
through
February 28, 2022 |
| Class A | 0.75% |
| Advisor Class | 0.50 |
| Class C | 1.50 |
| Institutional Class | 0.50 |
| Institutional 2 Class | 0.43 |
| Institutional 3 Class | 0.39 |
| Class V | 0.65 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with certain shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. 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 October 31, 2021, these differences were primarily due to differing treatment for trustees’ deferred compensation, and distributions. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The Fund did not have any permanent differences; therefore, no reclassifications were made.
| 30 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
The tax character of distributions paid during the years indicated was as follows:
| Year Ended October 31, 2021 | Year Ended October 31, 2020 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 3 | 4,794,423 | 56,812 | 4,851,238 | 141 | 5,330,458 | 37,197 | 5,367,796 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2021, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| — | 525,885 | 408,456 | — | 12,509,622 |
At October 31, 2021, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 200,476,970 | 12,580,988 | (71,366) | 12,509,622 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $6,307,817 and $21,411,849, respectively, for the year ended October 31, 2021. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended October 31, 2021.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 31 |
Notes to Financial Statements (continued)
October 31, 2021
investment manager, severally and not jointly, permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended October 31, 2021.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
| 32 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The COVID-19 pandemic has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and other natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Non-diversification risk
A non-diversified fund is permitted to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 33 |
Notes to Financial Statements (continued)
October 31, 2021
Shareholder concentration risk
At October 31, 2021, one unaffiliated shareholder of record owned 67.7% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates 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 Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 34 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia New York Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia New York Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of October 31, 2021, the related statement of operations for the year ended October 31, 2021, the statement of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 21, 2021
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 35 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended October 31, 2021. Shareholders will be notified in early 2022 of the amounts for use in preparing 2021 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $432,024 | 99.99% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 171 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 36 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney; specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018 | 171 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee - 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; Director, Robina Foundation, 2009-2020 (Chair, 2014-2020) |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 171 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee) since 2019 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 169 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020(a) | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 169 | Director, The Autism Project, since March 2015; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020(a) | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 2001-2004 | 169 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 37 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 171 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2019; Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 171 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 169 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 169 | None |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 169 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
| 38 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, Dean Witter Reynolds, Inc., 1976-1980 | 171 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1946 | Trustee since 2008 | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006; Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 171 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, RenaissanceRe Holdings Ltd. since May 2008; former Director, Citigroup Inc. and Citibank, N.A., 2009-2019; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 171 | Director, BlueCross BlueShield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation |
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 39 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020(a) | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services) since January 2016; Non-executive Member of the Investment Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services) since August 2018; Advisor, Paradigm Asset Management since November 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008 - January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 169 | Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions); Independent Director, Investment Committee, Sarona Asset Management |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 171 | Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Santomero and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as a director of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| (a) | J. Kevin Connaughton was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective March 1, 2016. Natalie A. Trunow was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective September 1, 2016. Olive M. Darragh was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective June 10, 2019. Shareholders of the Funds elected Mr. Connaughton and Mses. Darragh and Trunow as Trustees of CFST, CFST I, CFST II, CET I, CET II, and CFVST II, effective January 1, 2021, and of CFVIT, effective July 1, 2020. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021(a) | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC (since April 2015); officer of Columbia Funds and affiliated funds since 2020. | 171 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
| (a) | Mr. Beckman serves as the President and Principal Executive Officer of the Columbia Funds (since 2021). |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 40 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is the President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June 2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee of Columbia Funds Complex until January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary | Formerly, Trustee of Columbia Funds Complex until November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company September 2010 – September 2020. |
Colin Moore
290 Congress Street
Boston, MA 02210
1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 41 |
TRUSTEES AND OFFICERS (continued)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Approval of Management Agreement
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia New York Intermediate Municipal Bond Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee in November and December 2020 and March, April and June 2021, including reports providing the results of analyses performed by an independent third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and a comprehensive response to requests for information by independent legal counsels to the Independent Trustees (Independent Legal Counsel) in a letter to the Investment Manager, to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees, such as the Contracts Committee, the Investment Oversight Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 15, 2021 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered 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 Broadridge, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by Broadridge; |
| 42 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
| • | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department’s processes, systems and oversight, over the past several years, as well as planned 2021 initiatives in this regard. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel. The Board also observed that the Investment Manager has been able to effectively manage, operate and distribute the Funds through the COVID-19 pandemic period with no disruptions in services provided.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2020 in the performance of administrative services, and noted the various enhancements anticipated for 2021. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes are proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Funds under the Fund Management Agreements.
After reviewing these and related factors (including investment performance as discussed below), 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 Management Agreement supported the continuation of the Management Agreement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
| 43 |
Approval of Management Agreement (continued)
Investment performance
In this connection, the Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the performance of a benchmark index, (iii) the percentage ranking of the Fund among its comparison group, (iv) the Fund’s performance relative to peers and benchmarks and (v) the net assets of the Fund. The Board observed that the Fund’s performance for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the Investment Manager’s profitability.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that in 2020 the Board had considered 2019 profitability and that the 2021 information showed that the profitability generated by the Investment Manager in 2020 increased slightly from 2019 levels. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, 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 Management Agreement.
| 44 | Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
Economies of scale
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 as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 15, 2021, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
Columbia New York Intermediate Municipal Bond Fund | Annual Report 2021
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Columbia New York Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2021 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2021
Columbia Connecticut Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified by mail and provided with a website address to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Connecticut Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
Investment objective
The Fund seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Connecticut individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2016
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Average annual total returns (%) (for the period ended October 31, 2021) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/18/02 | 1.39 | 2.26 | 2.50 |
| | Including sales charges | | -1.63 | 1.63 | 2.18 |
| Advisor Class* | 03/19/13 | 1.74 | 2.54 | 2.76 |
| Class C | Excluding sales charges | 11/18/02 | 0.94 | 1.80 | 2.05 |
| | Including sales charges | | -0.06 | 1.80 | 2.05 |
| Institutional Class | 08/01/94 | 1.74 | 2.51 | 2.75 |
| Institutional 3 Class* | 03/01/17 | 1.84 | 2.63 | 2.81 |
| Class V | Excluding sales charges | 06/26/00 | 1.59 | 2.36 | 2.60 |
| | Including sales charges | | -3.20 | 1.37 | 2.10 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | 1.93 | 3.11 | 3.46 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Fund performance may be significantly negatively impacted by the economic impact of the COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and capital markets around the world in ways that will likely continue and may change in unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate pre-existing political, social and economic risks in certain countries and globally.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 3 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2011 — October 31, 2021)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Connecticut Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at October 31, 2021) |
| AAA rating | 14.5 |
| AA rating | 48.6 |
| A rating | 30.0 |
| BBB rating | 4.6 |
| BB rating | 2.3 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Manager Discussion of Fund Performance
For the 12-month period that ended October 31, 2021, the Fund’s Class A shares returned 1.39% excluding sales charges. Institutional Class shares of the Fund returned 1.74%. For the same time period, the Fund’s benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, which is national in scope, returned 1.93%.
Market overview
As the period began, there was a significant increase in municipal bond issuance ahead of the November election. The resulting excess supply and upward rate pressure pushed municipal total returns into negative territory. A renewed bid for risk assets, including municipal bonds, was spurred as election volatility failed to materialize and positive COVID-19 vaccination news emerged. Following the pre-election flood of supply, municipal investors were left with limited new issuance to meet demand in November and December, a dynamic that helped end 2020 on a positive note.
The strong municipal performance that closed 2020 continued into the new year. Despite the gradual upward march of U.S. Treasury yields, municipal performance held positive through the first month of the year, as lighter supply and tighter spreads produced positive excess returns versus Treasuries. By mid-February, however, municipals succumbed to the upward pull of Treasury yields, as municipal yields repriced higher between 20 and 40 basis points (bps) across much of the curve, with only the shortest maturities avoiding substantial yield spikes. (A basis point is 1/100 of a percent.) However, negative total returns brought on by higher yields did not spark an outflow cycle. Rather, municipal investors took the opportunity to put cash to work at higher yield levels, and by the end of March 2021, yields had retraced lower 3–6 bps, reviving outperformance versus Treasuries and closing the first quarter on a positive note.
Federal stimulus via the $1.9 trillion American Rescue Plan provided some measure of indirect support for portions of the municipal market. While rates markets focused on the possible inflationary effects of such a large stimulus package, municipal investors chose to weigh the positive credit impacts. Stimulus, combined with tax revenues that have broadly surprised to the upside, continued to support improvement in municipal credit fundamentals.
By mid-2021, credit concerns that arose during COVID-19 shutdowns had diminished, and lower quality segments of the market led positive performance. Though pockets of value remained in certain sectors or issuers, the dramatic post-COVID-19 recovery had resulted in relatively full valuations across much of the market. With the COVID-19 shutdowns lifted, it was evident that most states’ expectations of massive revenue gaps failed to materialize. Tax revenue performance was rather strong even through the depths of the pandemic, with projected deficits turning into actual surpluses for many state and local governments. Surprise revenue outperformance, coupled with direct federal support via the American Rescue Plan, bolstered credit fundamentals for most issuers.
A Delta-variant-driven resurgence in COVID-19 cases weighed on investors’ minds as the third quarter of 2021 began. Initially, the expectation of slower growth pushed Treasury yields lower with 10-year Treasury yields reaching a low of 1.17% in early August. Undeterred by Delta, the Federal Reserve indicated that the tapering of asset purchases would likely begin soon but gave no timeline for the start of interest rate hikes. Supply chain disruptions, energy shortages and transportation bottlenecks all pressured inflation and interest rates higher. Interest rate volatility led most fixed-income sectors to negative returns during the third quarter of 2021. However, despite a negative third quarter, municipal performance remained one of the few positive corners of the domestic fixed-income landscape on a year-to-date basis. Post-COVID-19 tax revenue performance in most locales continued to outpace expectations, improving credit fundamentals and leaving many municipal issuers in healthy fiscal positions.
In the final month of the period, a weaker tone and the continuation of upward rate pressure weighed on municipal returns, as the national muni market ended with another month of negative total returns. Policy negotiations in Washington remained fluid, but by period-end had taken a turn towards removing tax proposals that would have been stimulative for municipal demand.
Within the Connecticut municipal market, the intermediate portion slightly underperformed the corresponding national marketplace during the reporting period. There were slightly fewer BBB-rated bonds in the Connecticut market than in the national municipal market, which created a slight lag as lower quality municipal bonds outperformed higher quality municipal bonds during the period. In addition, performance in the Connecticut market was curtailed by a larger component of its municipal market being dedicated to state general obligation debt, which didn’t keep up with the rest of the market. Further, there were a small handful of non-Connecticut bond issuers within the benchmark that saw outsized positive performance
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 5 |
Manager Discussion of Fund Performance (continued)
during the period in which the Connecticut market was unable to participate. Conversely, as risk was generally rewarded during the 12-month reporting period, the Connecticut municipal market benefited from having less AAA and AA rated issuers, which tended to lag the overall national market. Having more single-A bonds in its makeup, which outperformed the national market, gave a boost to the Connecticut market. Additionally, a greater exposure to the transportation sector, which did well as we moved through the COVID-19 pandemic and began to return-to-normal, benefited municipal bond returns in Connecticut.
All in all, the environment for municipal bonds was favorable during the reporting period. Relentless investor demand, restrained supply, federal support, COVID-19 vaccinations and the re-opening of the economy made for an opportune environment, in our view. Investors were paid for taking and being exposed to risk. The least risky areas of the market still produced positive returns, just less positive than the riskier areas.
The Fund’s notable detractors during the period
| • | Fund performance during the period was held back slightly due to an underweight in BBB-rated credits. |
| • | Additionally, as compared to the benchmark, the Fund had a larger allocation to pre-refunded bonds which lagged the overall market. |
| • | A few selections within the housing sector detracted somewhat due to portions of premium-priced bonds getting called away at par ($100). |
| • | Additionally, the Fund’s underweight in transportation detracted from relative results as the sector generally outperformed. |
| • | Lastly, there was superior performance in some select non-Connecticut issuers that greatly benefited the national municipal marketplace at the expense of in-state investors. |
The Fund’s notable contributors during the period
| • | Duration, as well as yield curve positioning, contributed positively to Fund performance during the period. |
| ○ | The Fund was generally underweight 3-7 year maturity bonds and overweight 12-15 year maturities, both of which aided performance as the longer end of the yield curve generally outperformed shorter maturity bonds. |
| • | Regarding credit quality allocations, an underweight to municipal bonds rated AA and an overweight to municipal bonds rated A added to Fund returns. |
| • | With lower quality municipal bonds generally besting higher quality during the period, the Fund’s small exposure to non-investment grade bonds was also additive. |
| • | The Fund’s positioning in state general obligation (GO) bonds contributed to results relative to the benchmark. The Fund was generally underweight the benchmark in GOs, which was beneficial, and the individual bonds that the Fund owned in this space outperformed the national cohort. |
| • | The Fund benefited from both an overweight allocation to, as well as security selection within, the hospital sector. The hospital sector broadly outperformed while at the same time many of the Fund’s holdings within the sector rallied nicely (e.g., Church Home CCRC, Nuvance Health, McLean CCRC). |
| • | Lastly, there were additional situations of individual credit outperformance in local GOs (Bridgeport, Hartford Metropolitan District, Hamden) and the education sector (University of New Haven) that helped propel the Fund’s return during the period. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of the Fund’s portfolio may be more volatile than a more geographically diversified fund. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield.
| 6 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Manager Discussion of Fund Performance (continued)
These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state or local taxes. Liquidity risk is associated with the difficulty of selling underlying investments at a desirable time or price. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 7 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2021 — October 31, 2021 |
| | Account value at the
beginning of the
period ($) | 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 | 998.20 | 1,020.89 | 4.04 | 4.08 | 0.81 |
| Advisor Class | 1,000.00 | 1,000.00 | 999.40 | 1,022.14 | 2.79 | 2.82 | 0.56 |
| Class C | 1,000.00 | 1,000.00 | 995.90 | 1,018.65 | 6.27 | 6.34 | 1.26 |
| Institutional Class | 1,000.00 | 1,000.00 | 999.40 | 1,022.14 | 2.79 | 2.82 | 0.56 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 999.90 | 1,022.64 | 2.29 | 2.32 | 0.46 |
| Class V | 1,000.00 | 1,000.00 | 998.70 | 1,021.39 | 3.54 | 3.58 | 0.71 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| 8 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments
October 31, 2021
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 95.9% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Higher Education 10.5% |
| Connecticut State Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Fairfield University |
| Series 2017R |
| 07/01/2034 | 4.000% | | 1,000,000 | 1,126,576 |
| Quinnipiac University |
| Series 2016M |
| 07/01/2029 | 5.000% | | 1,000,000 | 1,168,326 |
| Sacred Heart University Issue |
| Series 2017 |
| 07/01/2033 | 5.000% | | 300,000 | 356,546 |
| Series 2021S |
| 06/01/2037 | 5.000% | | 370,000 | 480,684 |
| Trinity College |
| Series 2020R |
| 06/01/2032 | 5.000% | | 265,000 | 339,854 |
| University of New Haven |
| Series 2018 |
| 07/01/2033 | 5.000% | | 500,000 | 591,614 |
| 07/01/2034 | 5.000% | | 500,000 | 590,070 |
| Revenue Bonds |
| Sacred Heart University |
| Series 2020K |
| 07/01/2035 | 5.000% | | 475,000 | 599,690 |
| 07/01/2036 | 5.000% | | 150,000 | 188,836 |
| Wesleyan University - Green Bonds |
| Series 2021 |
| 07/01/2031 | 4.000% | | 915,000 | 1,133,669 |
| University of Connecticut |
| Revenue Bonds |
| Series 2018A |
| 11/15/2035 | 5.000% | | 2,700,000 | 3,324,260 |
| Total | 9,900,125 |
| Hospital 11.6% |
| Connecticut State Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Nuvance Health Issue |
| Series 2019A |
| 07/01/2033 | 5.000% | | 400,000 | 495,295 |
| Revenue Bonds |
| Bridgeport Hospital |
| Series 2012D |
| 07/01/2022 | 5.000% | | 1,000,000 | 1,031,772 |
| Hartford Healthcare |
| Series 2014E |
| 07/01/2034 | 5.000% | | 2,360,000 | 2,622,806 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2020A |
| 07/01/2036 | 4.000% | | 1,045,000 | 1,210,717 |
| Trinity Health Corp. |
| Series 2016 |
| 12/01/2032 | 5.000% | | 2,000,000 | 2,375,972 |
| Yale-New Haven Health |
| Series 2014A |
| 07/01/2031 | 5.000% | | 2,500,000 | 2,789,657 |
| Connecticut State Health & Educational Facilities Authority(a) |
| Refunding Revenue Bonds |
| Stamford Hospital Issue |
| Series 2022 |
| 07/01/2028 | 5.000% | | 300,000 | 360,481 |
| Total | 10,886,700 |
| Local General Obligation 19.8% |
| City of Bridgeport |
| Unlimited General Obligation Bonds |
| Series 2014A (AGM) |
| 07/01/2031 | 5.000% | | 1,350,000 | 1,493,719 |
| Series 2019-A (BAM) |
| 02/01/2036 | 5.000% | | 1,000,000 | 1,229,142 |
| Series 2021A |
| 08/01/2029 | 5.000% | | 175,000 | 220,935 |
| City of Middletown |
| Unlimited General Obligation Bonds |
| Series 2015 |
| 04/01/2026 | 5.000% | | 1,000,000 | 1,190,965 |
| City of Milford |
| Unlimited General Obligation Refunding Bonds |
| Series 2017B |
| 11/01/2030 | 4.000% | | 450,000 | 513,571 |
| City of New Haven |
| Unlimited General Obligation Bonds |
| Series 2015 (AGM) |
| 09/01/2027 | 5.000% | | 1,200,000 | 1,385,041 |
| Unlimited General Obligation Refunding Bonds |
| Series 2015B (BAM) |
| 08/15/2027 | 5.000% | | 750,000 | 864,542 |
| Series 2019B AGM |
| 02/01/2030 | 5.000% | | 450,000 | 574,731 |
| City of Norwalk |
| Unlimited General Obligation Refunding Bonds |
| Series 2017B |
| 07/01/2026 | 4.000% | | 750,000 | 842,209 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 9 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Waterbury |
| Unlimited General Obligation Bonds |
| Lot A |
| Series 2015 (BAM) |
| 08/01/2031 | 5.000% | | 500,000 | 575,520 |
| 08/01/2032 | 5.000% | | 500,000 | 575,121 |
| Series 2020A |
| 02/01/2030 | 5.000% | | 500,000 | 643,078 |
| Metropolitan District (The) |
| Unlimited General Obligation Bonds |
| Series 2018 |
| 07/15/2034 | 5.000% | | 500,000 | 615,084 |
| Series 2019A |
| 07/15/2033 | 5.000% | | 2,500,000 | 3,151,735 |
| Town of Guilford |
| Unlimited General Obligation Refunding Bonds |
| Series 2016A |
| 08/15/2029 | 4.000% | | 450,000 | 513,702 |
| Town of Hamden |
| Unlimited General Obligation Refunding Bonds |
| Series 2018A (BAM) |
| 08/15/2030 | 5.000% | | 1,000,000 | 1,223,718 |
| Town of North Haven |
| Unlimited General Obligation Bonds |
| Series 2007 |
| 07/15/2024 | 4.750% | | 1,150,000 | 1,286,912 |
| 07/15/2025 | 4.750% | | 1,150,000 | 1,330,678 |
| Town of Trumbull |
| Unlimited General Obligation Refunding Bonds |
| Series 2017B |
| 09/01/2030 | 4.000% | | 350,000 | 399,001 |
| Total | 18,629,404 |
| Pool / Bond Bank 2.6% |
| State of Connecticut Clean Water Fund - State Revolving Fund |
| Revenue Bonds |
| Green Bonds |
| Series 2017A |
| 05/01/2034 | 5.000% | | 1,500,000 | 1,809,177 |
| Series 2019A |
| 02/01/2035 | 4.000% | | 565,000 | 668,148 |
| Total | 2,477,325 |
| Prep School 4.3% |
| Connecticut State Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Choate Rosemary Hall Issue |
| Series 2020 |
| 07/01/2037 | 4.000% | | 300,000 | 355,100 |
| 07/01/2038 | 4.000% | | 310,000 | 366,140 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Taft School Issue |
| Series 2018K |
| 07/01/2035 | 4.000% | | 1,115,000 | 1,285,411 |
| Revenue Bonds |
| Loomis Chaffe School |
| Series 2005F (AMBAC) |
| 07/01/2027 | 5.250% | | 1,670,000 | 2,054,342 |
| Total | 4,060,993 |
| Refunded / Escrowed 9.2% |
| City of New Britain |
| Prerefunded 09/01/28 Unlimited General Obligation Bonds |
| Series 2018B (AGM) |
| 09/01/2036 | 5.250% | | 720,000 | 917,870 |
| Unlimited General Obligation Refunding Bonds |
| Series 2016A Escrowed to Maturity (BAM) |
| 03/01/2025 | 5.000% | | 10,000 | 11,476 |
| Connecticut Municipal Electric Energy Cooperative |
| Prerefunded 01/01/22 Revenue Bonds |
| Series 2012A |
| 01/01/2027 | 5.000% | | 1,000,000 | 1,007,852 |
| Connecticut State Health & Educational Facilities Authority |
| Revenue Bonds |
| Greenwich Academy |
| Series 2007E Escrowed to Maturity (AGM) |
| 03/01/2026 | 5.250% | | 2,370,000 | 2,635,407 |
| Greater New Haven Water Pollution Control Authority |
| Prerefunded 08/15/24 Revenue Bonds |
| Series 2014B |
| 08/15/2031 | 5.000% | | 1,000,000 | 1,129,216 |
| Puerto Rico Highway & Transportation Authority(b) |
| Refunding Revenue Bonds |
| Series 2005BB Escrowed to Maturity (AGM) |
| 07/01/2022 | 5.250% | | 895,000 | 924,345 |
| South Central Connecticut Regional Water Authority |
| Prerefunded 08/01/22 Revenue Bonds |
| 27th Series 2012 |
| 08/01/2029 | 5.000% | | 1,945,000 | 2,014,946 |
| Total | 8,641,112 |
| Retirement Communities 3.2% |
| Connecticut State Health & Educational Facilities Authority(c) |
| Revenue Bonds |
| Church Home of Hartford, Inc. |
| Series 2016 |
| 09/01/2046 | 5.000% | | 1,000,000 | 1,098,716 |
| McLean Issue |
| Series 2020A |
| 01/01/2030 | 5.000% | | 425,000 | 480,395 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| McLean Issue - TEMPS-50 |
| Series 2020B-2 |
| 01/01/2026 | 2.750% | | 500,000 | 503,445 |
| Connecticut State Health & Educational Facilities Authority |
| Revenue Bonds |
| Covenant Home, Inc. |
| Series 2018 |
| 12/01/2031 | 5.000% | | 750,000 | 887,616 |
| Total | 2,970,172 |
| Single Family 9.1% |
| Connecticut Housing Finance Authority(d) |
| Refunding Revenue Bonds |
| Home Mortgage |
| Series 2019D-2 |
| 05/15/2033 | 3.000% | | 880,000 | 925,002 |
| Series 2020A-2 |
| 11/15/2030 | 2.150% | | 1,000,000 | 1,009,738 |
| 05/15/2031 | 2.200% | | 1,000,000 | 1,016,975 |
| Series 2020C |
| 05/15/2027 | 5.000% | | 790,000 | 935,755 |
| 11/15/2028 | 5.000% | | 575,000 | 693,753 |
| Connecticut Housing Finance Authority |
| Refunding Revenue Bonds |
| Series 2019B1 |
| 11/15/2033 | 3.000% | | 1,000,000 | 1,058,249 |
| Social Bonds |
| Series 2021D-1 |
| 05/15/2029 | 5.000% | | 700,000 | 881,591 |
| Subordinated Series 2017D-1 |
| 11/15/2032 | 3.200% | | 775,000 | 818,272 |
| Subordinated Series 2018C-1 |
| 11/15/2038 | 3.625% | | 1,145,000 | 1,238,160 |
| Total | 8,577,495 |
| Special Non Property Tax 7.1% |
| State of Connecticut |
| Refunding Revenue Bonds |
| Series 2021C |
| 01/01/2032 | 5.000% | | 1,000,000 | 1,341,396 |
| Revenue Bonds |
| Special Tax Obligation Bonds |
| Series 2020A |
| 05/01/2037 | 5.000% | | 1,000,000 | 1,270,951 |
| State of Connecticut Special Tax |
| Revenue Bonds |
| Series 2018B |
| 10/01/2035 | 5.000% | | 1,000,000 | 1,247,683 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Transportation Infrastructure |
| Series 2014A |
| 09/01/2025 | 5.000% | | 2,500,000 | 2,824,535 |
| Total | 6,684,565 |
| State Appropriated 4.5% |
| Connecticut State Health & Educational Facilities Authority |
| Revenue Bonds |
| Connecticut State University System |
| Series 2019 |
| 11/01/2032 | 5.000% | | 1,000,000 | 1,270,006 |
| University of Connecticut |
| Revenue Bonds |
| Series 2015A |
| 02/15/2029 | 5.000% | | 1,500,000 | 1,705,569 |
| Series 2020A |
| 02/15/2037 | 5.000% | | 1,000,000 | 1,259,316 |
| Total | 4,234,891 |
| State General Obligation 5.4% |
| State of Connecticut |
| Unlimited General Obligation Bonds |
| Series 2018A |
| 04/15/2031 | 5.000% | | 1,000,000 | 1,237,914 |
| Series 2018-E |
| 09/15/2033 | 5.000% | | 1,000,000 | 1,246,856 |
| Series 2019A |
| 04/15/2036 | 5.000% | | 1,000,000 | 1,246,393 |
| Series 2020A |
| 01/15/2030 | 5.000% | | 1,000,000 | 1,292,263 |
| Total | 5,023,426 |
| Water & Sewer 8.6% |
| Greater New Haven Water Pollution Control Authority |
| Refunding Revenue Bonds |
| Series 2016A |
| 11/15/2029 | 4.000% | | 500,000 | 567,031 |
| 11/15/2030 | 4.000% | | 400,000 | 451,646 |
| 11/15/2031 | 4.000% | | 100,000 | 112,639 |
| 11/15/2032 | 4.000% | | 440,000 | 494,801 |
| Hartford County Metropolitan District(a) |
| Refunding Revenue Bonds |
| Clean Water Project |
| Series 2021A |
| 02/01/2028 | 5.000% | | 750,000 | 930,401 |
| Mattabassett District |
| Revenue Bonds |
| Green Bonds |
| Series 2021 (BAM) |
| 08/01/2029 | 5.000% | | 500,000 | 630,824 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 11 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Metropolitan District (The) |
| Revenue Bonds |
| Clean Water Project |
| Series 2020A |
| 10/01/2029 | 5.000% | | 1,000,000 | 1,281,606 |
| South Central Connecticut Regional Water Authority |
| Refunding Revenue Bonds |
| 20th Series 2007A (NPFGC) |
| 08/01/2022 | 5.250% | | 1,370,000 | 1,421,401 |
| 08/01/2023 | 5.250% | | 500,000 | 543,406 |
| 29th Series 2014 |
| 08/01/2025 | 5.000% | | 500,000 | 539,854 |
| 32nd Series 2016B |
| 08/01/2035 | 4.000% | | 1,000,000 | 1,132,461 |
| Total | 8,106,070 |
Total Municipal Bonds
(Cost $84,944,344) | 90,192,278 |
| Money Market Funds 4.5% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.010%(e) | 229,732 | 229,709 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.006%(e) | 4,014,636 | 4,014,636 |
Total Money Market Funds
(Cost $4,244,368) | 4,244,345 |
Total Investments in Securities
(Cost: $89,188,712) | 94,436,623 |
| Other Assets & Liabilities, Net | | (421,603) |
| Net Assets | 94,015,020 |
Notes to Portfolio of Investments
| (a) | Represents a security purchased on a when-issued basis. |
| (b) | 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 October 31, 2021, the total value of these securities amounted to $924,345, which represents 0.98% of total net assets. |
| (c) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At October 31, 2021, the total value of these securities amounted to $2,082,556, which represents 2.22% of total net assets. |
| (d) | Income from this security may be subject to alternative minimum tax. |
| (e) | The rate shown is the seven-day current annualized yield at October 31, 2021. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
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 overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of the inputs used to value the Fund’s investments at October 31, 2021:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 90,192,278 | — | 90,192,278 |
| Money Market Funds | 4,244,345 | — | — | 4,244,345 |
| Total Investments in Securities | 4,244,345 | 90,192,278 | — | 94,436,623 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 13 |
Statement of Assets and Liabilities
October 31, 2021
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $89,188,712) | $94,436,623 |
| Receivable for: | |
| Capital shares sold | 48,223 |
| Interest | 1,026,588 |
| Expense reimbursement due from Investment Manager | 271 |
| Prepaid expenses | 3,211 |
| Trustees’ deferred compensation plan | 91,794 |
| Total assets | 95,606,710 |
| Liabilities | |
| Due to custodian | 1,110 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,298,277 |
| Capital shares purchased | 13,373 |
| Distributions to shareholders | 153,091 |
| Management services fees | 1,211 |
| Distribution and/or service fees | 120 |
| Transfer agent fees | 8,544 |
| Compensation of board members | 5,734 |
| Compensation of chief compliance officer | 2 |
| Other expenses | 18,434 |
| Trustees’ deferred compensation plan | 91,794 |
| Total liabilities | 1,591,690 |
| Net assets applicable to outstanding capital stock | $94,015,020 |
| Represented by | |
| Paid in capital | 88,803,791 |
| Total distributable earnings (loss) | 5,211,229 |
| Total - representing net assets applicable to outstanding capital stock | $94,015,020 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Assets and Liabilities (continued)
October 31, 2021
| Class A | |
| Net assets | $7,627,146 |
| Shares outstanding | 714,508 |
| Net asset value per share | $10.67 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $11.00 |
| Advisor Class | |
| Net assets | $1,463,255 |
| Shares outstanding | 137,256 |
| Net asset value per share | $10.66 |
| Class C | |
| Net assets | $1,673,977 |
| Shares outstanding | 156,818 |
| Net asset value per share | $10.67 |
| Institutional Class | |
| Net assets | $74,625,952 |
| Shares outstanding | 6,993,954 |
| Net asset value per share | $10.67 |
| Institutional 3 Class | |
| Net assets | $10,139 |
| Shares outstanding | 948 |
| Net asset value per share | $10.70 |
| Class V | |
| Net assets | $8,614,551 |
| Shares outstanding | 808,209 |
| Net asset value per share | $10.66 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $11.19 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 15 |
Statement of Operations
Year Ended October 31, 2021
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $478 |
| Interest | 2,649,149 |
| Total income | 2,649,627 |
| Expenses: | |
| Management services fees | 452,491 |
| Distribution and/or service fees | |
| Class A | 19,796 |
| Class C | 16,843 |
| Class V | 13,360 |
| Transfer agent fees | |
| Class A | 9,541 |
| Advisor Class | 1,458 |
| Class C | 2,029 |
| Institutional Class | 92,054 |
| Institutional 3 Class | 31 |
| Class V | 10,732 |
| Compensation of board members | 15,043 |
| Custodian fees | 1,135 |
| Printing and postage fees | 13,578 |
| Registration fees | 16,459 |
| Audit fees | 29,500 |
| Legal fees | 10,340 |
| Compensation of chief compliance officer | 25 |
| Other | 11,236 |
| Total expenses | 715,651 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (127,769) |
| Fees waived by distributor | |
| Class C | (5,054) |
| Expense reduction | (20) |
| Total net expenses | 582,808 |
| Net investment income | 2,066,819 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 41,894 |
| Net realized gain | 41,894 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (485,902) |
| Net change in unrealized appreciation (depreciation) | (485,902) |
| Net realized and unrealized loss | (444,008) |
| Net increase in net assets resulting from operations | $1,622,811 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Changes in Net Assets
| | Year Ended
October 31, 2021 | Year Ended
October 31, 2020 |
| Operations | | |
| Net investment income | $2,066,819 | $2,451,450 |
| Net realized gain | 41,894 | 154,608 |
| Net change in unrealized appreciation (depreciation) | (485,902) | 186,331 |
| Net increase in net assets resulting from operations | 1,622,811 | 2,792,389 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (161,918) | (177,500) |
| Advisor Class | (27,595) | (23,246) |
| Class C | (26,785) | (33,323) |
| Institutional Class | (1,753,952) | (2,005,380) |
| Institutional 3 Class | (3,699) | (3,567) |
| Class V | (190,930) | (217,200) |
| Total distributions to shareholders | (2,164,879) | (2,460,216) |
| Decrease in net assets from capital stock activity | (2,758,010) | (4,306,391) |
| Total decrease in net assets | (3,300,078) | (3,974,218) |
| Net assets at beginning of year | 97,315,098 | 101,289,316 |
| Net assets at end of year | $94,015,020 | $97,315,098 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 17 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | October 31, 2021 | October 31, 2020 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 73,223 | 792,051 | 65,115 | 698,673 |
| Distributions reinvested | 10,295 | 111,102 | 11,294 | 120,957 |
| Redemptions | (101,450) | (1,094,544) | (84,339) | (903,163) |
| Net decrease | (17,932) | (191,391) | (7,930) | (83,533) |
| Advisor Class | | | | |
| Subscriptions | 45,117 | 487,069 | 24,968 | 267,640 |
| Distributions reinvested | 2,541 | 27,367 | 2,151 | 22,997 |
| Redemptions | (3,673) | (39,693) | (8,877) | (94,189) |
| Net increase | 43,985 | 474,743 | 18,242 | 196,448 |
| Class C | | | | |
| Subscriptions | 49,497 | 533,718 | 17,515 | 188,235 |
| Distributions reinvested | 2,273 | 24,531 | 2,862 | 30,640 |
| Redemptions | (48,406) | (522,369) | (57,674) | (615,595) |
| Net increase (decrease) | 3,364 | 35,880 | (37,297) | (396,720) |
| Institutional Class | | | | |
| Subscriptions | 554,611 | 5,992,959 | 1,056,843 | 11,276,540 |
| Distributions reinvested | 21,149 | 228,078 | 20,955 | 224,322 |
| Redemptions | (818,726) | (8,834,335) | (1,459,769) | (15,440,660) |
| Net decrease | (242,966) | (2,613,298) | (381,971) | (3,939,798) |
| Institutional 3 Class | | | | |
| Subscriptions | — | — | 14,019 | 150,000 |
| Distributions reinvested | 311 | 3,362 | 307 | 3,299 |
| Redemptions | (14,330) | (153,732) | (307) | (3,299) |
| Net increase (decrease) | (14,019) | (150,370) | 14,019 | 150,000 |
| Class V | | | | |
| Subscriptions | 1,790 | 19,287 | 2,120 | 22,671 |
| Distributions reinvested | 10,191 | 109,819 | 11,682 | 124,933 |
| Redemptions | (41,297) | (442,680) | (35,583) | (380,392) |
| Net decrease | (29,316) | (313,574) | (21,781) | (232,788) |
| Total net decrease | (256,884) | (2,758,010) | (416,718) | (4,306,391) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
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Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 19 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A |
| Year Ended 10/31/2021 | $10.74 | 0.21 | (0.06) | 0.15 | (0.21) | (0.01) | (0.22) |
| Year Ended 10/31/2020 | $10.68 | 0.24 | 0.06 | 0.30 | (0.24) | — | (0.24) |
| Year Ended 10/31/2019 | $10.16 | 0.27 | 0.53 | 0.80 | (0.28) | — | (0.28) |
| Year Ended 10/31/2018 | $10.56 | 0.27 | (0.37) | (0.10) | (0.28) | (0.02) | (0.30) |
| Year Ended 10/31/2017 | $10.86 | 0.29 | (0.26) | 0.03 | (0.29) | (0.04) | (0.33) |
| Advisor Class |
| Year Ended 10/31/2021 | $10.72 | 0.23 | (0.04) | 0.19 | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2020 | $10.67 | 0.27 | 0.05 | 0.32 | (0.27) | — | (0.27) |
| Year Ended 10/31/2019 | $10.15 | 0.30 | 0.53 | 0.83 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $10.54 | 0.30 | (0.37) | (0.07) | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2017 | $10.84 | 0.31 | (0.26) | 0.05 | (0.31) | (0.04) | (0.35) |
| Class C |
| Year Ended 10/31/2021 | $10.74 | 0.16 | (0.06) | 0.10 | (0.16) | (0.01) | (0.17) |
| Year Ended 10/31/2020 | $10.68 | 0.19 | 0.06 | 0.25 | (0.19) | — | (0.19) |
| Year Ended 10/31/2019 | $10.16 | 0.23 | 0.52 | 0.75 | (0.23) | — | (0.23) |
| Year Ended 10/31/2018 | $10.55 | 0.23 | (0.37) | (0.14) | (0.23) | (0.02) | (0.25) |
| Year Ended 10/31/2017 | $10.86 | 0.24 | (0.27) | (0.03) | (0.24) | (0.04) | (0.28) |
| Institutional Class |
| Year Ended 10/31/2021 | $10.73 | 0.24 | (0.05) | 0.19 | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2020 | $10.68 | 0.27 | 0.05 | 0.32 | (0.27) | — | (0.27) |
| Year Ended 10/31/2019 | $10.16 | 0.30 | 0.53 | 0.83 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $10.55 | 0.30 | (0.37) | (0.07) | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2017 | $10.86 | 0.31 | (0.27) | 0.04 | (0.31) | (0.04) | (0.35) |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $10.76 | 0.25 | (0.05) | 0.20 | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2020 | $10.70 | 0.28 | 0.06 | 0.34 | (0.28) | — | (0.28) |
| Year Ended 10/31/2019 | $10.18 | 0.31 | 0.53 | 0.84 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $10.58 | 0.31 | (0.37) | (0.06) | (0.32) | (0.02) | (0.34) |
| Year Ended 10/31/2017(e) | $10.55 | 0.21 | 0.03(f) | 0.24 | (0.21) | — | (0.21) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 10/31/2021 | $10.67 | 1.39% | 0.94% | 0.81%(c) | 1.94% | 9% | $7,627 |
| Year Ended 10/31/2020 | $10.74 | 2.87% | 0.93% | 0.80%(c) | 2.27% | 17% | $7,864 |
| Year Ended 10/31/2019 | $10.68 | 7.95% | 0.93% | 0.80%(c) | 2.59% | 12% | $7,910 |
| Year Ended 10/31/2018 | $10.16 | (0.97%) | 0.92% | 0.81%(c) | 2.63% | 13% | $6,967 |
| Year Ended 10/31/2017 | $10.56 | 0.28% | 0.93%(d) | 0.77%(c),(d) | 2.71% | 6% | $6,424 |
| Advisor Class |
| Year Ended 10/31/2021 | $10.66 | 1.74% | 0.69% | 0.56%(c) | 2.19% | 9% | $1,463 |
| Year Ended 10/31/2020 | $10.72 | 3.03% | 0.68% | 0.55%(c) | 2.52% | 17% | $1,000 |
| Year Ended 10/31/2019 | $10.67 | 8.23% | 0.68% | 0.55%(c) | 2.84% | 12% | $801 |
| Year Ended 10/31/2018 | $10.15 | (0.63%) | 0.67% | 0.56%(c) | 2.89% | 13% | $357 |
| Year Ended 10/31/2017 | $10.54 | 0.54% | 0.66%(d) | 0.51%(c),(d) | 2.96% | 6% | $511 |
| Class C |
| Year Ended 10/31/2021 | $10.67 | 0.94% | 1.69% | 1.26%(c) | 1.49% | 9% | $1,674 |
| Year Ended 10/31/2020 | $10.74 | 2.41% | 1.68% | 1.25%(c) | 1.82% | 17% | $1,647 |
| Year Ended 10/31/2019 | $10.68 | 7.47% | 1.68% | 1.25%(c) | 2.15% | 12% | $2,038 |
| Year Ended 10/31/2018 | $10.16 | (1.32%) | 1.67% | 1.26%(c) | 2.17% | 13% | $2,312 |
| Year Ended 10/31/2017 | $10.55 | (0.27%) | 1.68%(d) | 1.23%(c),(d) | 2.26% | 6% | $3,914 |
| Institutional Class |
| Year Ended 10/31/2021 | $10.67 | 1.74% | 0.69% | 0.56%(c) | 2.19% | 9% | $74,626 |
| Year Ended 10/31/2020 | $10.73 | 3.03% | 0.68% | 0.55%(c) | 2.52% | 17% | $77,664 |
| Year Ended 10/31/2019 | $10.68 | 8.22% | 0.68% | 0.55%(c) | 2.83% | 12% | $81,364 |
| Year Ended 10/31/2018 | $10.16 | (0.63%) | 0.67% | 0.56%(c) | 2.87% | 13% | $80,804 |
| Year Ended 10/31/2017 | $10.55 | 0.44% | 0.68%(d) | 0.53%(c),(d) | 2.95% | 6% | $100,370 |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $10.70 | 1.84% | 0.59% | 0.46% | 2.30% | 9% | $10 |
| Year Ended 10/31/2020 | $10.76 | 3.23% | 0.58% | 0.45% | 2.62% | 17% | $161 |
| Year Ended 10/31/2019 | $10.70 | 8.32% | 0.57% | 0.45% | 2.94% | 12% | $10 |
| Year Ended 10/31/2018 | $10.18 | (0.61%) | 0.57% | 0.45% | 2.99% | 13% | $10 |
| Year Ended 10/31/2017(e) | $10.58 | 2.31% | 0.56%(g) | 0.45%(g) | 3.02%(g) | 6% | $10 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 21 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class V |
| Year Ended 10/31/2021 | $10.72 | 0.22 | (0.05) | 0.17 | (0.22) | (0.01) | (0.23) |
| Year Ended 10/31/2020 | $10.67 | 0.25 | 0.05 | 0.30 | (0.25) | — | (0.25) |
| Year Ended 10/31/2019 | $10.15 | 0.28 | 0.53 | 0.81 | (0.29) | — | (0.29) |
| Year Ended 10/31/2018 | $10.54 | 0.28 | (0.36) | (0.08) | (0.29) | (0.02) | (0.31) |
| Year Ended 10/31/2017 | $10.85 | 0.30 | (0.27) | 0.03 | (0.30) | (0.04) | (0.34) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (d) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor
Class | Class C | Institutional
Class | Class V |
| 10/31/2017 | 0.04% | 0.05% | 0.03% | 0.03% | 0.03% |
| (e) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (f) | 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 subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (g) | Annualized. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class V |
| Year Ended 10/31/2021 | $10.66 | 1.59% | 0.84% | 0.71%(c) | 2.04% | 9% | $8,615 |
| Year Ended 10/31/2020 | $10.72 | 2.88% | 0.83% | 0.70%(c) | 2.37% | 17% | $8,979 |
| Year Ended 10/31/2019 | $10.67 | 8.06% | 0.83% | 0.70%(c) | 2.69% | 12% | $9,167 |
| Year Ended 10/31/2018 | $10.15 | (0.78%) | 0.82% | 0.71%(c) | 2.73% | 13% | $9,477 |
| Year Ended 10/31/2017 | $10.54 | 0.28% | 0.83%(d) | 0.68%(c),(d) | 2.80% | 6% | $10,456 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 23 |
Notes to Financial Statements
October 31, 2021
Note 1. Organization
Columbia Connecticut Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-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 each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Effective April 1, 2021, Class C shares automatically convert to Class A shares after 8 years. Prior to April 1, 2021, Class C shares automatically converted to Class A shares after 10 years. Advisor Class, Institutional Class and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
| 24 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 25 |
Notes to Financial Statements (continued)
October 31, 2021
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2021 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 3 Class shares are subject to an annual limitation of not more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
| 26 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
For the year ended October 31, 2021, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.12 |
| Advisor Class | 0.12 |
| Class C | 0.12 |
| Institutional Class | 0.12 |
| Institutional 3 Class | 0.02 |
| Class V | 0.12 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2021, these minimum account balance fees reduced total expenses of the Fund by $20.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has contractually agreed to waive a portion of the distribution fee for Class C shares through February 28, 2022 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 at the sole discretion of the Board of Trustees.
Shareholder services fees
The Fund has adopted a shareholder services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40% of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2021, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 7,542 |
| Class C | — | 1.00(b) | 962 |
| Class V | 4.75 | 0.50 - 1.00(c) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 27 |
Notes to Financial Statements (continued)
October 31, 2021
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | March 1, 2021
through
February 28, 2022 | Prior to
March 1, 2021 |
| Class A | 0.81% | 0.81% |
| Advisor Class | 0.56 | 0.56 |
| Class C | 1.56 | 1.56 |
| Institutional Class | 0.56 | 0.56 |
| Institutional 3 Class | 0.46 | 0.45 |
| Class V | 0.71 | 0.71 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with certain shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. 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 October 31, 2021, these differences were primarily due to differing treatment for trustees’ deferred compensation, and distributions. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The Fund did not have any permanent differences; therefore, no reclassifications were made.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended October 31, 2021 | Year Ended October 31, 2020 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 3 | 2,101,811 | 63,065 | 2,164,879 | 75 | 2,460,141 | — | 2,460,216 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
| 28 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
At October 31, 2021, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| — | 183,424 | 29,393 | — | 5,247,911 |
At October 31, 2021, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 89,188,712 | 5,418,079 | (170,168) | 5,247,911 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $8,658,019 and $9,972,120, respectively, for the year ended October 31, 2021. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended October 31, 2021.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 29 |
Notes to Financial Statements (continued)
October 31, 2021
permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended October 31, 2021.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The COVID-19 pandemic has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by
| 30 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and other natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Non-diversification risk
A non-diversified fund is permitted to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At October 31, 2021, one unaffiliated shareholder of record owned 69.6% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 31 |
Notes to Financial Statements (continued)
October 31, 2021
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates 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 Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 32 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Connecticut Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Connecticut Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of October 31, 2021, the related statement of operations for the year ended October 31, 2021, the statement of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 21, 2021
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 33 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended October 31, 2021. Shareholders will be notified in early 2022 of the amounts for use in preparing 2021 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $43,989 | 99.99% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 171 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 34 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney; specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018 | 171 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee - 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; Director, Robina Foundation, 2009-2020 (Chair, 2014-2020) |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 171 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee) since 2019 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 169 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020(a) | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 169 | Director, The Autism Project, since March 2015; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020(a) | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 2001-2004 | 169 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 35 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 171 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2019; Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 171 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 169 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 169 | None |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 169 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
| 36 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, Dean Witter Reynolds, Inc., 1976-1980 | 171 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1946 | Trustee since 2008 | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006; Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 171 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, RenaissanceRe Holdings Ltd. since May 2008; former Director, Citigroup Inc. and Citibank, N.A., 2009-2019; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 171 | Director, BlueCross BlueShield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation |
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 37 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020(a) | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services) since January 2016; Non-executive Member of the Investment Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services) since August 2018; Advisor, Paradigm Asset Management since November 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008 - January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 169 | Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions); Independent Director, Investment Committee, Sarona Asset Management |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 171 | Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Santomero and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as a director of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| (a) | J. Kevin Connaughton was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective March 1, 2016. Natalie A. Trunow was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective September 1, 2016. Olive M. Darragh was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective June 10, 2019. Shareholders of the Funds elected Mr. Connaughton and Mses. Darragh and Trunow as Trustees of CFST, CFST I, CFST II, CET I, CET II, and CFVST II, effective January 1, 2021, and of CFVIT, effective July 1, 2020. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021(a) | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC (since April 2015); officer of Columbia Funds and affiliated funds since 2020. | 171 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
| (a) | Mr. Beckman serves as the President and Principal Executive Officer of the Columbia Funds (since 2021). |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 38 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is the President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June 2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee of Columbia Funds Complex until January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary | Formerly, Trustee of Columbia Funds Complex until November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company September 2010 – September 2020. |
Colin Moore
290 Congress Street
Boston, MA 02210
1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 39 |
TRUSTEES AND OFFICERS (continued)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Approval of Management Agreement
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia Connecticut Intermediate Municipal Bond Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee in November and December 2020 and March, April and June 2021, including reports providing the results of analyses performed by an independent third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and a comprehensive response to requests for information by independent legal counsels to the Independent Trustees (Independent Legal Counsel) in a letter to the Investment Manager, to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees, such as the Contracts Committee, the Investment Oversight Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 15, 2021 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered 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 Broadridge, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by Broadridge; |
| 40 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
| • | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department’s processes, systems and oversight, over the past several years, as well as planned 2021 initiatives in this regard. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel. The Board also observed that the Investment Manager has been able to effectively manage, operate and distribute the Funds through the COVID-19 pandemic period with no disruptions in services provided.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2020 in the performance of administrative services, and noted the various enhancements anticipated for 2021. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes are proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Funds under the Fund Management Agreements.
After reviewing these and related factors (including investment performance as discussed below), 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 Management Agreement supported the continuation of the Management Agreement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 41 |
Approval of Management Agreement (continued)
Investment performance
In this connection, the Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the performance of a benchmark index, (iii) the percentage ranking of the Fund among its comparison group, (iv) the Fund’s performance relative to peers and benchmarks and (v) the net assets of the Fund. The Board observed that the Fund’s performance for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the Investment Manager’s profitability.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that in 2020 the Board had considered 2019 profitability and that the 2021 information showed that the profitability generated by the Investment Manager in 2020 increased slightly from 2019 levels. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, 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 Management Agreement.
| 42 | Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
Economies of scale
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 as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 15, 2021, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
Columbia Connecticut Intermediate Municipal Bond Fund | Annual Report 2021
| 43 |
Columbia Connecticut Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2021 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
October 31, 2021
Columbia Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified by mail and provided with a website address to access the report.
If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and procedures
The policy of the Board of Trustees is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of investments
The Fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors, Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
Investment objective
The Fund seeks current income exempt from federal income tax, consistent with preservation of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Average annual total returns (%) (for the period ended October 31, 2021) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/25/02 | 2.61 | 2.58 | 3.04 |
| | Including sales charges | | -0.51 | 1.96 | 2.73 |
| Advisor Class* | 03/19/13 | 2.81 | 2.77 | 3.23 |
| Class C | Excluding sales charges | 11/25/02 | 1.99 | 1.91 | 2.49 |
| | Including sales charges | | 1.00 | 1.91 | 2.49 |
| Institutional Class | 06/14/93 | 2.81 | 2.77 | 3.24 |
| Institutional 2 Class* | 11/08/12 | 2.98 | 2.86 | 3.32 |
| Institutional 3 Class* | 03/01/17 | 2.93 | 2.87 | 3.29 |
| Class V | Excluding sales charges | 06/26/00 | 2.76 | 2.63 | 3.10 |
| | Including sales charges | | -2.09 | 1.65 | 2.59 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | 1.93 | 3.11 | 3.46 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class V shares are shown with and without the maximum initial sales charge of 4.75%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding. Effective August 24, 2021, the Bloomberg Barclays 3–15 Year Blend Municipal Bond Index was re-branded as the Bloomberg 3–15 Year Blend Municipal Bond Index.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Fund performance may be significantly negatively impacted by the economic impact of the COVID-19 pandemic. The COVID-19 pandemic has adversely impacted economies and capital markets around the world in ways that will likely continue and may change in unforeseen ways for an indeterminate period. The COVID-19 pandemic may exacerbate pre-existing political, social and economic risks in certain countries and globally.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 3 |
Fund at a Glance (continued)
Performance of a hypothetical $10,000 investment (October 31, 2011 — October 31, 2021)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at October 31, 2021) |
| AAA rating | 2.3 |
| AA rating | 25.3 |
| A rating | 48.2 |
| BBB rating | 15.5 |
| BB rating | 2.9 |
| CCC rating | 1.0 |
| Not rated | 4.8 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
Top Ten States/Territories (%)
(at October 31, 2021) |
| California | 16.6 |
| Texas | 14.3 |
| Illinois | 10.1 |
| New York | 5.7 |
| Florida | 5.7 |
| Massachusetts | 4.3 |
| District of Columbia | 4.2 |
| New Jersey | 3.9 |
| South Carolina | 3.5 |
| Colorado | 3.1 |
Percentages indicated are based upon total investments excluding Money Market Funds and investments in derivatives, if any.
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments.”
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
| 4 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Manager Discussion of Fund Performance
For the 12-month period that ended October 31, 2021, the Fund’s Class A shares returned 2.61% excluding sales charges. Institutional Class shares of the Fund returned 2.81%. For the same time period, the Fund’s benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, which is national in scope, returned 1.93%.
Market overview
As the period began, there was a significant increase in municipal bond issuance ahead of the November election. The resulting excess supply and upward rate pressure pushed municipal total returns into negative territory. A renewed bid for risk assets, including municipal bonds, was spurred as election volatility failed to materialize and positive COVID-19 vaccination news emerged. Following the pre-election flood of supply, municipal investors were left with limited new issuance to meet demand in November and December, a dynamic that helped end 2020 on a positive note.
The strong municipal performance that closed 2020 continued into the new year. Despite the gradual upward march of U.S. Treasury yields, municipal performance held positive through the first month of the year, as lighter supply and tighter spreads produced positive excess returns versus Treasuries. By mid-February, however, municipals succumbed to the upward pull of Treasury yields, as municipal yields repriced higher between 20 and 40 basis points (bps) across much of the curve, with only the shortest maturities avoiding substantial yield spikes. (A basis point is 1/100 of a percent.) However, negative total returns brought on by higher yields did not spark an outflow cycle. Rather, municipal investors took the opportunity to put cash to work at higher yield levels, and by the end of March 2021, yields had retraced lower 3–6 bps, reviving outperformance versus Treasuries and closing the first quarter on a positive note.
Federal stimulus via the $1.9 trillion American Rescue Plan provided some measure of indirect support for portions of the municipal market. While rates markets focused on the possible inflationary effects of such a large stimulus package, municipal investors chose to weigh the positive credit impacts. Stimulus, combined with tax revenues that have broadly surprised to the upside, continued to support improvement in municipal credit fundamentals.
By mid-2021, credit concerns that arose during COVID-19 shutdowns had diminished, and lower quality segments of the market led positive performance. Though pockets of value remained in certain sectors or issuers, the dramatic post-COVID-19 recovery resulted in relatively full valuations across much of the market. With the COVID-19 shutdowns lifted, it was evident that most states’ expectations of massive revenue gaps failed to materialize. Tax revenue performance was rather strong even through the depths of the pandemic, with projected deficits turning into actual surpluses for many state and local governments. Surprise revenue outperformance, coupled with direct federal support via the American Rescue Plan, bolstered credit fundamentals for most issuers.
A Delta-variant-driven resurgence in COVID-19 cases weighed on investors’ minds as the third quarter of 2021 began. Initially, the expectation of slower growth pushed Treasury yields lower with 10-year Treasury yields reaching a low of 1.17% in early August. Undeterred by Delta, the Federal Reserve indicated that the tapering of asset purchases would likely begin soon but gave no timeline for the start of interest rate hikes. Supply chain disruptions, energy shortages and transportation bottlenecks all pressured inflation and interest rates higher. Interest rate volatility led most fixed-income sectors to negative returns during the third quarter of 2021. However, despite a negative third quarter, municipal performance remained one of the few positive corners of the domestic fixed-income landscape on a year-to-date basis. Post-COVID-19 tax revenue performance in most locales continued to outpace expectations, improving credit fundamentals and leaving many municipal issuers in healthy fiscal positions.
In the final month of the period, a weaker tone and the continuation of upward rate pressure weighed on municipal returns, as the national muni market ended with another month of negative total returns. Policy negotiations in Washington remained fluid, but by period-end had taken a turn towards removing tax proposals that would have been stimulative for municipal demand.
All in all, the environment for municipal bonds was favorable during the reporting period. Relentless investor demand, restrained supply, federal support, COVID-19 vaccinations and the re-opening of the economy made for an opportune environment. Investors were paid for taking and being exposed to risk. The least risky areas of the market still produced positive returns, just less positive than the riskier areas.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 5 |
Manager Discussion of Fund Performance (continued)
The Fund’s notable contributors during the period
| • | The Fund benefited from its meaningful overweight to lower investment grade rated issues across several sectors during the period as lower quality and longer maturity bonds outperformed. |
| • | The top sector return of over 10% was generated in student housing as students returned to campuses across the nation. |
| • | Holdings in continuing care retirement communities (CCRCs) did similarly well as vaccinations were administered and operations returned to a more normal state, including a resumption in family member visits. |
| • | The Fund’s two largest sector weights, hospitals and transportation, were positive contributors as well. Hospitals resumed elective surgeries and volumes increased across toll roads and harbor ports. |
| • | Yield curve positioning was another bright spot for the Fund as longer intermediate maturities outperformed. The Fund was more than 10% overweight to bonds maturing in 8 years and longer versus its benchmark. |
| • | Lastly, the Fund’s exposure to bonds with 4% coupons was a plus during the period as they outperformed. We believe 4% coupon bonds offer additional yield and income versus traditional 5% coupon bonds. We nearly doubled the Fund’s exposure to this area during the year as we worked toward establishing a weighting in line with the benchmark. |
The Fund’s notable detractors during the period
| • | The Fund’s holdings of bonds with maturities of inside of two years and pre-refunded bonds produced modest total returns during the period that underperformed the benchmark. While we do not believe that there is anything inherently wrong with these holdings, they are just very short and/or very high-quality holdings that are low yielding. In our view, they are natural reinvestment candidates and are excellent sources of liquidity. |
| • | Timing of a few Fund purchases detracted from performance. Rates bottomed out in mid-February 2021 and again during late July. We were intentionally not very active during these periods as we believed the strong supply/demand technical environment was driving municipal bonds to potentially rich levels. However, we did purchase a few positions for the Fund that we felt were attractive. As rates drifted up during the remainder of the period, these positions became performance detractors. |
Fixed-income securities present issuer default risk. The Fund invests substantially in municipal securities and will be affected by tax, legislative, regulatory, demographic or political changes, as well as changes impacting a state’s financial, economic or other conditions. A relatively small number of tax-exempt issuers may necessitate the Fund investing more heavily in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. Prepayment and extension risk exists because the timing of payments on a loan, bond or other investment may accelerate when interest rates fall or decelerate when interest rates rise which may reduce investment opportunities and potential returns. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Non-investment-grade (high-yield or junk) securities present greater price volatility and more risk to principal and income than higher rated securities. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state, local or alternative minimum taxes. See the Fund’s prospectus for more information on these and other risks.
The views expressed in this report reflect the current views of the respective parties who have contributed to this report. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia fund. References to specific securities should not be construed as a recommendation or investment advice.
| 6 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s expenses
To illustrate these ongoing costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2021 — October 31, 2021 |
| | Account value at the
beginning of the
period ($) | 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 | 1,001.60 | 1,021.59 | 3.34 | 3.38 | 0.67 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,002.60 | 1,022.59 | 2.35 | 2.37 | 0.47 |
| Class C | 1,000.00 | 1,000.00 | 998.60 | 1,018.60 | 6.33 | 6.39 | 1.27 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,002.60 | 1,022.59 | 2.35 | 2.37 | 0.47 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,003.90 | 1,022.89 | 2.05 | 2.07 | 0.41 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,003.20 | 1,023.09 | 1.85 | 1.87 | 0.37 |
| Class V | 1,000.00 | 1,000.00 | 1,001.90 | 1,021.84 | 3.09 | 3.13 | 0.62 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Management Investment Advisers, LLC and/or certain of its affiliates have contractually agreed to waive certain fees and/or to reimburse certain expenses until February 29, 2024, unless sooner terminated at the sole discretion of the Fund’s Board, such that net expenses, subject to applicable exclusions, will not exceed 0.61% for Class A, 0.41% for Advisor Class, 1.21% for Class C, 0.41% for Institutional Class, 0.33% for Institutional 2 Class, 0.28% for Institutional 3 Class and 0.56% for Class V. Any amounts waived will not be reimbursed by the Fund. This change was effective December 11, 2021. If this change had been in place for the entire six month period ended October 31, 2021, the actual expenses paid would have been $3.04 for Class A, $2.05 for Advisor Class, $6.03 for Class C, $2.05 for Institutional Class, $1.65 for Institutional 2 Class, $1.40 for Institutional 3 Class and $2.79 for Class V; the hypothetical expenses paid would have been $3.07 for Class A, $2.07 for Advisor Class, $6.09 for Class C, $2.07 for Institutional Class, $1.66 for Institutional 2 Class, $1.41 for Institutional 3 Class and $2.82 for Class V.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 7 |
Portfolio of Investments
October 31, 2021
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 98.5% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Alabama 0.4% |
| Southeast Energy Authority A Cooperative District |
| Revenue Bonds |
| Project #2 |
| Series 2021B (Mandatory Put 12/01/31) |
| 12/01/2051 | 4.000% | | 4,000,000 | 4,786,783 |
| Alaska 0.2% |
| Northern Tobacco Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2021A Class 1 |
| 06/01/2038 | 4.000% | | 1,000,000 | 1,169,827 |
| 06/01/2039 | 4.000% | | 1,000,000 | 1,165,059 |
| Total | 2,334,886 |
| Arizona 1.6% |
| Arizona State University |
| Revenue Bonds |
| Green Bonds |
| Series 2019A |
| 07/01/2037 | 5.000% | | 7,800,000 | 9,833,763 |
| City of Phoenix Civic Improvement Corp.(a) |
| Revenue Bonds |
| Junior Lien |
| Series 2019B |
| 07/01/2036 | 5.000% | | 3,500,000 | 4,300,026 |
| La Paz County Industrial Development Authority |
| Revenue Bonds |
| Charter School Solutions - Harmony Public Schools Project |
| Series 2016 |
| 02/15/2036 | 5.000% | | 2,800,000 | 3,122,065 |
| Total | 17,255,854 |
| California 16.4% |
| California Educational Facilities Authority |
| Revenue Bonds |
| Chapman University |
| Series 2015 |
| 04/01/2028 | 5.000% | | 1,000,000 | 1,143,207 |
| 04/01/2029 | 5.000% | | 1,650,000 | 1,884,067 |
| 04/01/2030 | 5.000% | | 1,700,000 | 1,938,634 |
| California Health Facilities Financing Authority |
| Prerefunded 11/15/25 Revenue Bonds |
| Sutter Health Obligation Group |
| Series 2016A |
| 11/15/2033 | 5.000% | | 5,000,000 | 5,912,971 |
| Refunding Revenue Bonds |
| El Camino Hospital |
| Series 2015A |
| 02/01/2029 | 5.000% | | 1,485,000 | 1,695,256 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| El Camino Hospital |
| Series 2017 |
| 02/01/2034 | 5.000% | | 1,750,000 | 2,112,599 |
| California Municipal Finance Authority |
| Revenue Bonds |
| National University |
| Series 2019A |
| 04/01/2037 | 5.000% | | 1,470,000 | 1,797,385 |
| California School Finance Authority(b) |
| Prerefunded 08/01/25 Revenue Bonds |
| Aspire Public School |
| Series 2016 |
| 08/01/2036 | 5.000% | | 175,000 | 204,139 |
| Refunding Revenue Bonds |
| Aspire Public School |
| Series 2016 |
| 08/01/2036 | 5.000% | | 1,910,000 | 2,153,107 |
| California State Public Works Board |
| Prerefunded 11/01/22 Revenue Bonds |
| Various Capital Projects |
| Series 2012G |
| 11/01/2028 | 5.000% | | 5,510,000 | 5,774,979 |
| Revenue Bonds |
| Various Capital Projects |
| Series 2013I |
| 11/01/2028 | 5.250% | | 9,225,000 | 10,101,561 |
| 11/01/2029 | 5.000% | | 5,000,000 | 5,449,231 |
| 11/01/2031 | 5.500% | | 2,930,000 | 3,222,954 |
| Various Correctional Facilities |
| Series 2014A |
| 09/01/2031 | 5.000% | | 15,350,000 | 17,259,190 |
| California State Public Works Board(c) |
| Refunding Revenue Bonds |
| Various Purpose |
| Series 2022A |
| 08/01/2036 | 5.000% | | 1,040,000 | 1,331,592 |
| California Statewide Communities Development Authority |
| Prerefunded 10/01/24 Revenue Bonds |
| Henry Mayo Newhall Memorial Hospital |
| Series 2014A (AGM) |
| 10/01/2034 | 5.000% | | 5,000,000 | 5,643,174 |
| Revenue Bonds |
| Methodist Hospital of Southern California |
| Series 2018 |
| 01/01/2038 | 5.000% | | 3,000,000 | 3,573,262 |
| Series 2017 |
| 05/15/2033 | 5.000% | | 1,350,000 | 1,611,989 |
| 05/15/2034 | 5.000% | | 1,000,000 | 1,192,300 |
| 05/15/2035 | 5.000% | | 2,200,000 | 2,619,180 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Tulare Sewer |
| Refunding Revenue Bonds |
| Series 2015 (AGM) |
| 11/15/2030 | 5.000% | | 1,910,000 | 2,227,299 |
| 11/15/2031 | 5.000% | | 1,000,000 | 1,164,392 |
| 11/15/2032 | 5.000% | | 1,610,000 | 1,875,368 |
| City of Upland |
| Refunding Certificate of Participation |
| San Antonio Regional Hospital |
| Series 2017 |
| 01/01/2035 | 4.000% | | 1,000,000 | 1,118,143 |
| Del Mar Race Track Authority |
| Refunding Revenue Bonds |
| Series 2015 |
| 10/01/2035 | 5.000% | | 2,665,000 | 2,757,767 |
| Golden State Tobacco Securitization Corp. |
| Prerefunded 06/01/25 Asset-Backed Revenue Bonds |
| Series 2015A |
| 06/01/2033 | 5.000% | | 5,250,000 | 6,106,626 |
| Refunding Revenue Bonds |
| Series 2017A-1 |
| 06/01/2024 | 5.000% | | 5,000,000 | 5,551,527 |
| Hartnell Community College District(d) |
| Unlimited General Obligation Refunding Bonds |
| Capital Appreciation Serial Bonds |
| Series 2015A |
| 08/01/2035 | 0.000% | | 2,650,000 | 1,682,605 |
| La Quinta Redevelopment Agency Successor Agency |
| Prerefunded 09/01/23 Tax Allocation Bonds |
| Redevelopment Project |
| Subordinated Series 2013A |
| 09/01/2029 | 5.000% | | 5,000,000 | 5,431,318 |
| Los Angeles County Sanitation Districts Financing Authority |
| Refunding Revenue Bonds |
| Capital Projects - District #14 |
| Subordinated Series 2015 |
| 10/01/2033 | 5.000% | | 4,000,000 | 4,647,864 |
| Manteca Unified School District(d) |
| Unlimited General Obligation Bonds |
| Capital Appreciation-Election of 2004 |
| Series 2006 (NPFGC) |
| 08/01/2024 | 0.000% | | 5,000,000 | 4,888,006 |
| Pico Rivera Water Authority |
| Revenue Bonds |
| Water System Project |
| Series 1999A (NPFGC) |
| 05/01/2029 | 5.500% | | 2,520,000 | 2,953,127 |
| Rancho Santiago Community College District(d) |
| Unlimited General Obligation Bonds |
| Capital Appreciation-Election of 2002 |
| Series 2006C (AGM) |
| 09/01/2031 | 0.000% | | 28,000,000 | 23,381,294 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| San Francisco City & County Airport Commission - San Francisco International Airport(a) |
| Revenue Bonds |
| Series 2019E |
| 05/01/2037 | 5.000% | | 450,000 | 553,053 |
| San Joaquin Hills Transportation Corridor Agency(d) |
| Revenue Bonds |
| Senior Lien |
| Series 1993 Escrowed to Maturity |
| 01/01/2025 | 0.000% | | 22,405,000 | 22,132,217 |
| San Jose Financing Authority |
| Prerefunded 06/01/23 Revenue Bonds |
| Civic Center Project |
| Series 2013A |
| 06/01/2029 | 5.000% | | 5,000,000 | 5,374,059 |
| Southern California Public Power Authority |
| Revenue Bonds |
| Project No. 1 |
| Series 2007A |
| 11/01/2022 | 5.250% | | 2,500,000 | 2,622,579 |
| State of California |
| Unlimited General Obligation Bonds |
| Series 2015 |
| 03/01/2033 | 5.000% | | 2,500,000 | 2,854,533 |
| Tustin Community Facilities District |
| Refunding Special Tax Bonds |
| Legacy Villages of Columbus #06-1 |
| Series 2015 |
| 09/01/2031 | 5.000% | | 1,000,000 | 1,149,447 |
| 09/01/2033 | 5.000% | | 1,250,000 | 1,435,964 |
| Total | 176,527,965 |
| Colorado 3.0% |
| City & County of Denver Airport System |
| Prerefunded 11/15/22 Revenue Bonds |
| Series 2012B |
| 11/15/2032 | 5.000% | | 10,000,000 | 10,492,126 |
| Colorado Health Facilities Authority |
| Prerefunded 06/01/27 Revenue Bonds |
| Evangelical Lutheran Good Samaritan Society |
| Series 2017 |
| 06/01/2030 | 5.000% | | 2,000,000 | 2,439,225 |
| Prerefunded 12/01/22 Revenue Bonds |
| Covenant Retirement Communities |
| Series 2012A |
| 12/01/2027 | 5.000% | | 4,000,000 | 4,207,246 |
| Refunding Revenue Bonds |
| Covenant Retirement Communities |
| Series 2015 |
| 12/01/2026 | 5.000% | | 1,860,000 | 2,118,894 |
| 12/01/2028 | 5.000% | | 1,000,000 | 1,128,636 |
| 12/01/2030 | 5.000% | | 1,400,000 | 1,569,543 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 9 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| E-470 Public Highway Authority |
| Refunding Revenue Bonds |
| Series 2020A |
| 09/01/2036 | 5.000% | | 1,200,000 | 1,529,726 |
| Park Creek Metropolitan District |
| Refunding Tax Allocation Bonds |
| Limited Property Tax |
| Series 2015 |
| 12/01/2032 | 5.000% | | 1,500,000 | 1,719,617 |
| Regional Transportation District |
| Certificate of Participation |
| Series 2015 |
| 06/01/2027 | 5.000% | | 2,925,000 | 3,344,914 |
| University of Colorado Hospital Authority |
| Revenue Bonds |
| Series 2012A |
| 11/15/2027 | 5.000% | | 3,750,000 | 3,932,817 |
| Total | 32,482,744 |
| Connecticut 0.3% |
| State of Connecticut |
| Unlimited General Obligation Bonds |
| Series 2019A |
| 04/15/2036 | 5.000% | | 2,200,000 | 2,742,064 |
| District of Columbia 4.1% |
| District of Columbia |
| Refunding Revenue Bonds |
| Children’s Hospital |
| Series 2015 |
| 07/15/2030 | 5.000% | | 3,000,000 | 3,504,733 |
| Friendship Public Charter School |
| Series 2016 |
| 06/01/2036 | 5.000% | | 3,700,000 | 4,170,679 |
| Metropolitan Washington Airports Authority(a) |
| Refunding Revenue Bonds |
| Forward Delivery |
| Series 2020A |
| 10/01/2030 | 5.000% | | 2,500,000 | 3,184,422 |
| Metropolitan Washington Airports Authority Dulles Toll Road |
| Refunding Revenue Bonds |
| Dulles Metrorail |
| Subordinated Series 2019 |
| 10/01/2034 | 5.000% | | 1,000,000 | 1,237,567 |
| Metropolitan Washington Airports Authority Dulles Toll Road(d) |
| Revenue Bonds |
| Capital Appreciation-2nd Senior Lien |
| Series 2009B (AGM) |
| 10/01/2024 | 0.000% | | 20,980,000 | 20,496,233 |
| 10/01/2025 | 0.000% | | 7,500,000 | 7,173,854 |
| 10/01/2026 | 0.000% | | 5,000,000 | 4,685,696 |
| Total | 44,453,184 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Florida 5.6% |
| City of Tampa(d) |
| Revenue Bonds |
| Capital Appreciation |
| Series 2020A |
| 09/01/2034 | 0.000% | | 650,000 | 459,405 |
| County of Broward Airport System(a) |
| Revenue Bonds |
| Series 2019A |
| 10/01/2038 | 5.000% | | 2,250,000 | 2,767,821 |
| County of Miami-Dade Aviation |
| Refunding Revenue Bonds |
| Series 2014B |
| 10/01/2032 | 5.000% | | 6,620,000 | 7,461,699 |
| County of Miami-Dade Rickenbacker Causeway |
| Revenue Bonds |
| Series 2014 |
| 10/01/2033 | 5.000% | | 1,215,000 | 1,352,695 |
| County of Osceola Transportation(d) |
| Refunding Revenue Bonds |
| Series 2020A-2 |
| 10/01/2034 | 0.000% | | 1,850,000 | 1,307,875 |
| Series 2020A-2 (AGM) |
| 10/01/2030 | 0.000% | | 1,200,000 | 992,387 |
| Florida Development Finance Corp.(b) |
| Refunding Revenue Bonds |
| Renaissance Charter School, Inc. Projects |
| Series 2020 |
| 09/15/2030 | 4.000% | | 470,000 | 505,328 |
| Florida Municipal Power Agency |
| Refunding Revenue Bonds |
| Series 2016A |
| 10/01/2030 | 5.000% | | 2,750,000 | 3,281,987 |
| Hillsborough County Aviation Authority |
| Revenue Bonds |
| Tampa International Airport |
| Subordinated Series 2015B |
| 10/01/2031 | 5.000% | | 1,600,000 | 1,809,897 |
| 10/01/2032 | 5.000% | | 2,300,000 | 2,598,863 |
| Mid-Bay Bridge Authority |
| Refunding Revenue Bonds |
| Series 2015A |
| 10/01/2030 | 5.000% | | 2,150,000 | 2,434,977 |
| Orange County School Board |
| Prerefunded 08/01/22 Certificate of Participation |
| Series 2012B |
| 08/01/2026 | 5.000% | | 6,500,000 | 6,733,752 |
| Refunding Certificate of Participation |
| Series 2016C |
| 08/01/2033 | 5.000% | | 5,000,000 | 5,931,768 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Palm Beach County Health Facilities Authority |
| Revenue Bonds |
| Lifespace Communities, Inc. |
| Series 2018 |
| 05/15/2036 | 5.000% | | 1,550,000 | 1,782,010 |
| 05/15/2037 | 5.000% | | 1,500,000 | 1,721,991 |
| Pasco County School Board |
| Refunding Certificate of Participation |
| Series 2015A |
| 08/01/2026 | 5.000% | | 4,620,000 | 5,345,589 |
| 08/01/2027 | 5.000% | | 2,500,000 | 2,887,613 |
| School Board of Miami-Dade County (The) |
| Refunding Certificate of Participation |
| Series 2015A |
| 05/01/2030 | 5.000% | | 2,500,000 | 2,860,324 |
| Seminole County Industrial Development Authority |
| Refunding Revenue Bonds |
| Legacy Pointe at UCF Project |
| Series 2019 |
| 11/15/2025 | 3.750% | | 3,000,000 | 3,012,486 |
| Southeast Overtown Park West Community Redevelopment Agency(b) |
| Tax Allocation Bonds |
| Series 2014A-1 |
| 03/01/2030 | 5.000% | | 2,925,000 | 3,168,830 |
| Sterling Hill Community Development District(e) |
| Special Assessment Bonds |
| Series 2003B |
| 11/01/2010 | 0.000% | | 137,787 | 82,672 |
| Volusia County Educational Facility Authority |
| Revenue Bonds |
| Series 2015B |
| 10/15/2030 | 5.000% | | 1,510,000 | 1,716,476 |
| Total | 60,216,445 |
| Georgia 1.4% |
| City of Atlanta Department of Aviation |
| Refunding Revenue Bonds |
| General - Subordinated Lien |
| Series 2014 |
| 01/01/2032 | 5.000% | | 2,000,000 | 2,193,873 |
| City of Atlanta Department of Aviation(a) |
| Refunding Revenue Bonds |
| Series 2021C |
| 07/01/2039 | 4.000% | | 3,400,000 | 3,978,406 |
| Fulton County Development Authority |
| Refunding Revenue Bonds |
| Spelman College |
| Series 2015 |
| 06/01/2032 | 5.000% | | 3,630,000 | 4,121,297 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Gainesville & Hall County Development Authority |
| Refunding Revenue Bonds |
| Riverside Military Academy |
| Series 2017 |
| 03/01/2037 | 5.000% | | 2,000,000 | 2,008,217 |
| Georgia State Road & Tollway Authority(b),(d) |
| Prerefunded 06/01/24 Revenue Bonds |
| I-75 S Express Lanes Project |
| Series 2014 |
| 06/01/2034 | 0.000% | | 3,750,000 | 1,999,226 |
| Revenue Bonds |
| I-75 S Express Lanes Project |
| Series 2014 Escrowed to Maturity |
| 06/01/2024 | 0.000% | | 435,000 | 406,517 |
| Total | 14,707,536 |
| Idaho 0.2% |
| Idaho Health Facilities Authority |
| Revenue Bonds |
| Terraces of Boise Project |
| Series 2021 |
| 10/01/2031 | 3.800% | | 2,100,000 | 2,084,560 |
| Illinois 9.9% |
| Chicago Board of Education |
| Unlimited General Obligation Bonds |
| Series 2021A |
| 12/01/2038 | 5.000% | | 1,200,000 | 1,466,496 |
| Chicago Midway International Airport |
| Refunding Revenue Bonds |
| 2nd Lien |
| Series 2014B |
| 01/01/2029 | 5.000% | | 6,150,000 | 6,727,963 |
| Chicago O’Hare International Airport |
| General Obligation Refunding Bonds |
| Senior Lien |
| Series 2016B |
| 01/01/2033 | 5.000% | | 2,000,000 | 2,331,565 |
| Refunding Revenue Bonds |
| General Senior Lien |
| Series 2013B |
| 01/01/2028 | 5.250% | | 11,180,000 | 11,812,508 |
| City of Chicago |
| Unlimited General Obligation Bonds |
| Series 2015A |
| 01/01/2023 | 5.000% | | 5,000,000 | 5,255,008 |
| City of Chicago Wastewater Transmission |
| Refunding Revenue Bonds |
| 2nd Lien |
| Series 2017B |
| 01/01/2033 | 5.000% | | 2,500,000 | 2,971,322 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 11 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Chicago Waterworks |
| Refunding Revenue Bonds |
| 2nd Lien |
| Series 2016 |
| 11/01/2027 | 5.000% | | 1,250,000 | 1,503,536 |
| Illinois Finance Authority |
| Refunding Revenue Bonds |
| Rush University Medical Center |
| Series 2015A |
| 11/15/2032 | 5.000% | | 10,000,000 | 11,416,971 |
| University of Chicago |
| Series 2021A |
| 10/01/2038 | 5.000% | | 1,400,000 | 2,066,462 |
| Illinois Municipal Electric Agency |
| Refunding Revenue Bonds |
| Series 2015A |
| 02/01/2030 | 5.000% | | 12,060,000 | 13,949,222 |
| Illinois State Toll Highway Authority |
| Revenue Bonds |
| Series 2014C |
| 01/01/2032 | 5.000% | | 9,600,000 | 10,896,638 |
| Unrefunded Revenue Bonds |
| Series 2016A |
| 12/01/2031 | 4.000% | | 5,000,000 | 5,615,878 |
| Kane Cook & DuPage Counties School District No. U-46 Elgin |
| Unlimited General Obligation Refunding Bonds |
| Series 2015D |
| 01/01/2032 | 5.000% | | 1,800,000 | 1,972,435 |
| 01/01/2033 | 5.000% | | 2,000,000 | 2,190,684 |
| Metropolitan Pier & Exposition Authority(c) |
| Refunding Revenue Bonds |
| McCormick Place Expansion |
| Series 2022 |
| 12/15/2042 | 4.000% | | 2,000,000 | 2,249,451 |
| Railsplitter Tobacco Settlement Authority |
| Revenue Bonds |
| Series 2017 |
| 06/01/2027 | 5.000% | | 2,185,000 | 2,566,767 |
| State of Illinois |
| Unlimited General Obligation Bonds |
| Series 2013 |
| 07/01/2026 | 5.500% | | 10,100,000 | 10,918,929 |
| Series 2014 |
| 02/01/2031 | 5.250% | | 5,000,000 | 5,487,422 |
| Series 2020C |
| 05/01/2030 | 5.500% | | 1,500,000 | 1,917,820 |
| Series 2021A |
| 03/01/2038 | 4.000% | | 3,000,000 | 3,401,941 |
| Total | 106,719,018 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Indiana 1.1% |
| City of Indianapolis Thermal Energy System |
| Refunding Revenue Bonds |
| 1st Lien |
| Series 2014A |
| 10/01/2032 | 5.000% | | 1,400,000 | 1,572,726 |
| City of Whiting(a) |
| Refunding Revenue Bonds |
| BP Products North America |
| Series 2019 (Mandatory Put 06/05/26) |
| 12/01/2044 | 5.000% | | 1,600,000 | 1,899,969 |
| Indiana Municipal Power Agency |
| Revenue Bonds |
| Series 2019A |
| 01/01/2037 | 5.000% | | 6,990,000 | 8,667,228 |
| Total | 12,139,923 |
| Iowa 0.3% |
| PEFA, Inc. |
| Revenue Bonds |
| Series 2019 (Mandatory Put 09/01/26) |
| 09/01/2049 | 5.000% | | 3,000,000 | 3,546,128 |
| Kentucky 0.4% |
| Kentucky Municipal Power Agency |
| Refunding Revenue Bonds |
| Series 2015A |
| 09/01/2029 | 5.000% | | 4,000,000 | 4,617,536 |
| Maryland 1.7% |
| County of Anne Arundel |
| Limited General Obligation Bonds |
| Consolidated General Improvements |
| Series 2019 |
| 10/01/2031 | 5.000% | | 3,500,000 | 4,517,518 |
| Maryland Economic Development Corp. |
| Tax Allocation Bonds |
| Port Covington Project |
| Series 2020 |
| 09/01/2030 | 3.250% | | 500,000 | 546,961 |
| Maryland Health & Higher Educational Facilities Authority |
| Refunding Revenue Bonds |
| Meritus Medical Center Issue |
| Series 2015 |
| 07/01/2028 | 5.000% | | 1,300,000 | 1,485,982 |
| State of Maryland |
| Unlimited General Obligation Refunding Bonds |
| Series 2017B |
| 08/01/2026 | 5.000% | | 10,000,000 | 12,033,682 |
| Total | 18,584,143 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Massachusetts 4.3% |
| Commonwealth of Massachusetts |
| Limited General Obligation Bonds |
| Series 2018A |
| 01/01/2035 | 5.000% | | 10,000,000 | 12,273,935 |
| Massachusetts Bay Transportation Authority(d) |
| Refunding Revenue Bonds |
| Series 2016A |
| 07/01/2029 | 0.000% | | 3,500,000 | 3,076,884 |
| Massachusetts Development Finance Agency |
| Refunding Revenue Bonds |
| Emerson College |
| Series 2017A |
| 01/01/2034 | 5.000% | | 1,000,000 | 1,190,391 |
| Lahey Clinic Obligation |
| Series 2015F |
| 08/15/2031 | 5.000% | | 2,490,000 | 2,860,237 |
| 08/15/2032 | 5.000% | | 4,120,000 | 4,727,630 |
| 08/15/2033 | 5.000% | | 3,000,000 | 3,438,834 |
| Simmons University |
| Series 2018L |
| 10/01/2034 | 5.000% | | 2,390,000 | 2,876,532 |
| 10/01/2035 | 5.000% | | 2,000,000 | 2,404,297 |
| Revenue Bonds |
| UMass Boston Student Housing Project |
| Series 2016 |
| 10/01/2032 | 5.000% | | 1,300,000 | 1,471,225 |
| 10/01/2036 | 5.000% | | 4,600,000 | 5,171,599 |
| Massachusetts Development Finance Agency(b) |
| Refunding Revenue Bonds |
| Newbridge Charles, Inc. |
| Series 2017 |
| 10/01/2032 | 4.000% | | 2,000,000 | 2,144,996 |
| Revenue Bonds |
| Linden Ponds, Inc. Facility |
| Series 2018 |
| 11/15/2033 | 5.000% | | 975,000 | 1,085,648 |
| Massachusetts Health & Educational Facilities Authority |
| Revenue Bonds |
| Boston College |
| Series 2008M-1 |
| 06/01/2024 | 5.500% | | 2,670,000 | 3,022,896 |
| Total | 45,745,104 |
| Michigan 2.0% |
| City of Detroit |
| Unlimited General Obligation Bonds |
| Social Bonds |
| Series 2021A |
| 04/01/2038 | 5.000% | | 750,000 | 911,375 |
| 04/01/2039 | 5.000% | | 600,000 | 727,345 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Michigan Finance Authority |
| Refunding Revenue Bonds |
| Senior Lien - Great Lakes Water Authority |
| Series 2014C-6 |
| 07/01/2033 | 5.000% | | 800,000 | 892,464 |
| Series 2014H-1 |
| 10/01/2026 | 5.000% | | 3,300,000 | 3,722,302 |
| Revenue Bonds |
| Local Government Loan Program - Great Lakes Water Authority |
| Series 2015 |
| 07/01/2033 | 5.000% | | 5,000,000 | 5,745,231 |
| Senior Lien - Great Lakes Water Authority |
| Series 2014C-3 (AGM) |
| 07/01/2032 | 5.000% | | 1,000,000 | 1,116,145 |
| Royal Oak Hospital Finance Authority |
| Refunding Revenue Bonds |
| William Beaumont Hospital |
| Series 2014D |
| 09/01/2032 | 5.000% | | 4,075,000 | 4,494,663 |
| Wayne County Airport Authority |
| Revenue Bonds |
| Detroit Metro |
| Series 2018 |
| 12/01/2036 | 5.000% | | 3,205,000 | 3,981,608 |
| Total | 21,591,133 |
| Minnesota 2.0% |
| City of Maple Grove |
| Refunding Revenue Bonds |
| Maple Grove Hospital Corp. |
| Series 2017 |
| 05/01/2029 | 5.000% | | 2,720,000 | 3,250,541 |
| City of St. Cloud |
| Refunding Revenue Bonds |
| CentraCare Health System |
| Series 2016A |
| 05/01/2027 | 5.000% | | 1,785,000 | 2,110,339 |
| City of Wayzata |
| Refunding Revenue Bonds |
| Folkstone Senior Living Co. |
| Series 2019 |
| 08/01/2033 | 5.000% | | 150,000 | 161,898 |
| 08/01/2034 | 5.000% | | 125,000 | 134,811 |
| 08/01/2035 | 5.000% | | 140,000 | 150,872 |
| County of Rice(b) |
| Revenue Bonds |
| Shattuck-St. Mary’s School |
| Series 2015A Escrowed to Maturity |
| 08/01/2022 | 5.000% | | 720,000 | 745,504 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 13 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Duluth Economic Development Authority |
| Revenue Bonds |
| Benedictine Health System |
| Series 2021 |
| 07/01/2036 | 4.000% | | 3,000,000 | 3,218,841 |
| Housing & Redevelopment Authority of The City of St. Paul |
| Refunding Revenue Bonds |
| Fairview Health Services |
| Series 2017 |
| 11/15/2029 | 5.000% | | 1,050,000 | 1,274,473 |
| HealthPartners Obligation Group |
| Series 2015 |
| 07/01/2028 | 5.000% | | 6,400,000 | 7,373,939 |
| Watertown-Mayer Independent School District No. 111(d) |
| Unlimited General Obligation Bonds |
| Series 2020A |
| 02/01/2030 | 0.000% | | 2,475,000 | 2,153,262 |
| Woodbury Housing & Redevelopment Authority |
| Revenue Bonds |
| St. Therese of Woodbury |
| Series 2014 |
| 12/01/2034 | 5.000% | | 1,000,000 | 1,044,011 |
| Total | 21,618,491 |
| Mississippi 0.5% |
| County of Warren |
| Refunding Revenue Bonds |
| International Paper Co. Project |
| Series 2020 (Mandatory Put 06/16/25) |
| 05/01/2034 | 1.375% | | 1,625,000 | 1,662,805 |
| State of Mississippi |
| Revenue Bonds |
| Series 2015E |
| 10/15/2029 | 5.000% | | 3,500,000 | 4,021,268 |
| Total | 5,684,073 |
| Missouri 2.3% |
| Health & Educational Facilities Authority of the State of Missouri |
| Refunding Revenue Bonds |
| CoxHealth |
| Series 2015A |
| 11/15/2028 | 5.000% | | 6,210,000 | 7,129,557 |
| Revenue Bonds |
| Lutheran Senior Services |
| Series 2014 |
| 02/01/2026 | 5.000% | | 1,300,000 | 1,410,998 |
| 02/01/2029 | 5.000% | | 5,975,000 | 6,444,945 |
| Kansas City Industrial Development Authority(a) |
| Revenue Bonds |
| Kansas City International Airport |
| Series 2019 (AGM) |
| 03/01/2035 | 5.000% | | 3,000,000 | 3,663,645 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Kirkwood Industrial Development Authority |
| Refunding Revenue Bonds |
| Aberdeen Heights Project |
| Series 2017 |
| 05/15/2037 | 5.250% | | 2,695,000 | 2,997,793 |
| Missouri Joint Municipal Electric Utility Commission |
| Refunding Revenue Bonds |
| Prairie State Project |
| Series 2015A |
| 12/01/2029 | 5.000% | | 2,000,000 | 2,302,850 |
| St. Louis County Industrial Development Authority |
| Refunding Revenue Bonds |
| St. Andrew’s Resources for Seniors Obligated Group |
| Series 2015 |
| 12/01/2025 | 5.000% | | 1,005,000 | 1,073,887 |
| Total | 25,023,675 |
| Nebraska 1.3% |
| Public Power Generation Agency |
| Refunding Revenue Bonds |
| Whelan Energy Center Unit |
| Series 2015 |
| 01/01/2027 | 5.000% | | 11,865,000 | 13,425,251 |
| Nevada 0.6% |
| City of Carson City |
| Prerefunded 09/01/22 Revenue Bonds |
| Carson Tahoe Regional Medical Center |
| Series 2012 |
| 09/01/2027 | 5.000% | | 3,250,000 | 3,373,738 |
| Refunding Revenue Bonds |
| Carson Tahoe Regional Medical Center |
| Series 2017 |
| 09/01/2031 | 5.000% | | 1,000,000 | 1,190,853 |
| 09/01/2033 | 5.000% | | 1,000,000 | 1,186,768 |
| State of Nevada Department of Business & Industry(b) |
| Revenue Bonds |
| Somerset Academy |
| Series 2018A |
| 12/15/2029 | 4.500% | | 660,000 | 722,456 |
| Total | 6,473,815 |
| New Jersey 3.8% |
| Essex County Improvement Authority |
| Refunding Revenue Bonds |
| County Guaranteed Project Consolidation |
| Series 2004 (NPFGC) |
| 10/01/2026 | 5.500% | | 750,000 | 925,404 |
| Hudson County Improvement Authority |
| Refunding Revenue Bonds |
| Hudson County Lease Project |
| Series 2010 (AGM) |
| 10/01/2024 | 5.375% | | 2,000,000 | 2,283,426 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New Jersey Economic Development Authority |
| Revenue Bonds |
| Self-Designated Social Bonds |
| Series 2021 |
| 06/15/2038 | 4.000% | | 600,000 | 691,300 |
| Transportation Project |
| Series 2020 |
| 11/01/2036 | 5.000% | | 5,000,000 | 6,154,531 |
| New Jersey Transportation Trust Fund Authority(d) |
| Capital Appreciation Revenue Bonds |
| Transportation System |
| Series 2006C (AGM) |
| 12/15/2029 | 0.000% | | 3,060,000 | 2,662,057 |
| New Jersey Transportation Trust Fund Authority(c) |
| Refunding Revenue Bonds |
| Series 2022AA |
| 06/15/2038 | 5.000% | | 1,000,000 | 1,243,509 |
| New Jersey Transportation Trust Fund Authority |
| Refunding Revenue Bonds |
| Transportation System |
| Series 2018A |
| 12/15/2034 | 5.000% | | 1,500,000 | 1,830,430 |
| Revenue Bonds |
| Series 2020AA |
| 06/15/2038 | 4.000% | | 1,000,000 | 1,152,167 |
| Transportation Program |
| Series 2019 |
| 06/15/2037 | 5.000% | | 4,465,000 | 5,418,010 |
| Transportation System |
| Series 2006A (AGM) |
| 12/15/2022 | 5.250% | | 4,000,000 | 4,222,940 |
| New Jersey Turnpike Authority |
| Refunding Revenue Bonds |
| Series 2017E |
| 01/01/2029 | 5.000% | | 1,500,000 | 1,856,722 |
| Series 2017G |
| 01/01/2035 | 5.000% | | 6,000,000 | 7,360,356 |
| Robbinsville Board of Education |
| Unlimited General Obligation Refunding Bonds |
| Series 2005 (AGM) |
| 01/01/2028 | 5.250% | | 500,000 | 626,877 |
| State of New Jersey |
| Unlimited General Obligation Bonds |
| COVID-19 Emergency Bonds |
| Series 2020 |
| 06/01/2030 | 4.000% | | 2,000,000 | 2,403,326 |
| Tobacco Settlement Financing Corp. |
| Refunding Revenue Bonds |
| Series 2018A |
| 06/01/2034 | 5.000% | | 2,000,000 | 2,401,248 |
| Total | 41,232,303 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New Mexico 0.3% |
| County of Bernalillo |
| Refunding Revenue Bonds |
| Series 1998 |
| 04/01/2027 | 5.250% | | 3,000,000 | 3,402,372 |
| New York 5.6% |
| Buffalo & Erie County Industrial Land Development Corp. |
| Revenue Bonds |
| Catholic Health System |
| Series 2015 |
| 07/01/2025 | 5.000% | | 1,000,000 | 1,129,318 |
| County of Nassau |
| Prerefunded 04/01/24 Limited General Obligation Bonds |
| Series 2014A |
| 04/01/2027 | 5.000% | | 8,000,000 | 8,904,779 |
| Hudson Yards Infrastructure Corp. |
| Refunding Revenue Bonds |
| Series 2017A |
| 02/15/2034 | 5.000% | | 5,000,000 | 5,963,211 |
| Long Island Power Authority |
| Revenue Bonds |
| Series 2012B |
| 09/01/2026 | 5.000% | | 5,000,000 | 5,196,699 |
| New York City Transitional Finance Authority |
| Refunding Revenue Bonds |
| Future Tax Secured |
| Subordinated Series 2020 |
| 11/01/2038 | 4.000% | | 1,000,000 | 1,170,303 |
| Revenue Bonds |
| Future Tax Secured |
| Subordinated Series 2020 |
| 05/01/2039 | 4.000% | | 2,000,000 | 2,334,996 |
| Subordinated Series 2020D |
| 11/01/2039 | 4.000% | | 3,500,000 | 4,086,243 |
| New York State Dormitory Authority |
| Refunding Revenue Bonds |
| Group 2 |
| Series 2020A |
| 03/15/2037 | 4.000% | | 5,000,000 | 5,902,466 |
| Memorial Sloan-Kettering Cancer Center |
| Series 2017 |
| 07/01/2035 | 4.000% | | 1,500,000 | 1,720,895 |
| North Shore - Long Island Jewish Obligation Group |
| Series 2015A |
| 05/01/2031 | 5.000% | | 9,830,000 | 11,221,184 |
| Revenue Bonds |
| St. John’s University |
| Series 2007C (NPFGC) |
| 07/01/2023 | 5.250% | | 3,245,000 | 3,514,215 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 15 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New York State Urban Development Corp. |
| Revenue Bonds |
| Series 2020A |
| 03/15/2038 | 4.000% | | 2,000,000 | 2,355,756 |
| New York Transportation Development Corp.(a) |
| Revenue Bonds |
| New York State Thruway Service Areas Project |
| Series 2021 |
| 10/31/2041 | 4.000% | | 570,000 | 650,610 |
| Port Authority of New York & New Jersey(a) |
| Refunding Revenue Bonds |
| Series 2021-226 |
| 10/15/2039 | 5.000% | | 2,500,000 | 3,171,145 |
| Revenue Bonds |
| Consolidated Bonds |
| Series 221 |
| 07/15/2038 | 4.000% | | 2,000,000 | 2,321,628 |
| Troy Capital Resource Corp. |
| Refunding Revenue Bonds |
| Forward Delivery - Rensselaer Polytechnic Institute Project |
| Series 2020 |
| 09/01/2030 | 5.000% | | 500,000 | 642,223 |
| Total | 60,285,671 |
| North Carolina 1.9% |
| North Carolina Capital Facilities Finance Agency |
| Refunding Revenue Bonds |
| The Arc of North Carolina |
| Series 2017 |
| 10/01/2034 | 5.000% | | 2,325,000 | 2,734,868 |
| North Carolina Medical Care Commission |
| Refunding Revenue Bonds |
| Presbyterian Homes |
| Series 2016C |
| 10/01/2031 | 4.000% | | 1,000,000 | 1,090,457 |
| Sharon Towers |
| Series 2019A |
| 07/01/2029 | 4.000% | | 1,970,000 | 2,164,818 |
| United Methodist Retirement |
| Series 2017 |
| 10/01/2037 | 5.000% | | 1,100,000 | 1,194,067 |
| North Carolina Municipal Power Agency No. 1 |
| Refunding Revenue Bonds |
| Series 2015A |
| 01/01/2031 | 5.000% | | 2,000,000 | 2,305,396 |
| State of North Carolina |
| Refunding Revenue Bonds |
| Series 2014B |
| 06/01/2025 | 5.000% | | 5,000,000 | 5,804,199 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| University of North Carolina at Greensboro |
| Refunding Revenue Bonds |
| General |
| Series 2017 |
| 04/01/2035 | 4.000% | | 1,200,000 | 1,374,072 |
| 04/01/2036 | 4.000% | | 1,000,000 | 1,138,927 |
| University of North Carolina at Wilmington |
| Refunding Revenue Bonds |
| Student Housing Projects |
| Series 2016 |
| 06/01/2031 | 4.000% | | 2,040,000 | 2,298,790 |
| Total | 20,105,594 |
| Ohio 0.2% |
| Buckeye Tobacco Settlement Financing Authority |
| Refunded Revenue Bonds |
| Series 2020A-2 Class 1 |
| 06/01/2038 | 4.000% | | 1,875,000 | 2,138,499 |
| Oklahoma 0.5% |
| Norman Regional Hospital Authority |
| Refunding Revenue Bonds |
| Series 2016 |
| 09/01/2027 | 5.000% | | 2,000,000 | 2,371,136 |
| Oklahoma Development Finance Authority(a) |
| Revenue Bonds |
| Gilcrease Expressway West Project |
| Series 2020 |
| 07/06/2023 | 1.625% | | 3,000,000 | 3,020,422 |
| Total | 5,391,558 |
| Oregon 0.6% |
| Hospital Facilities Authority of Multnomah County |
| Refunding Revenue Bonds |
| Mirabella at South Waterfront |
| Series 2014A |
| 10/01/2034 | 5.125% | | 1,000,000 | 1,074,182 |
| Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow(d) |
| Unlimited General Obligation Bonds |
| Series 2017A |
| 06/15/2033 | 0.000% | | 7,160,000 | 5,154,724 |
| Total | 6,228,906 |
| Pennsylvania 2.9% |
| Commonwealth Financing Authority |
| Revenue Bonds |
| Tobacco Master Settlement Payment |
| Series 2018 |
| 06/01/2029 | 5.000% | | 1,500,000 | 1,848,837 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Cumberland County Municipal Authority |
| Prerefunded 01/01/25 Revenue Bonds |
| Diakon Lutheran Social Ministries Project |
| Series 2015 |
| 01/01/2027 | 5.000% | | 310,000 | 353,191 |
| 01/01/2028 | 5.000% | | 495,000 | 563,966 |
| Refunding Revenue Bonds |
| Diakon Lutheran Social Ministries Project |
| Series 2015 |
| 01/01/2027 | 5.000% | | 2,190,000 | 2,450,471 |
| 01/01/2028 | 5.000% | | 3,345,000 | 3,717,446 |
| Delaware River Joint Toll Bridge Commission |
| Revenue Bonds |
| Series 2017 |
| 07/01/2033 | 5.000% | | 2,250,000 | 2,713,438 |
| Delaware River Port Authority |
| Refunding Revenue Bonds |
| Port District Project |
| Series 2012 |
| 01/01/2027 | 5.000% | | 1,835,000 | 1,931,504 |
| Revenue Bonds |
| Series 2018A |
| 01/01/2036 | 5.000% | | 2,000,000 | 2,480,795 |
| Lancaster County Solid Waste Management Authority |
| Revenue Bonds |
| Series 2013A |
| 12/15/2029 | 5.250% | | 3,100,000 | 3,421,398 |
| Northampton County General Purpose Authority |
| Refunding Revenue Bonds |
| St. Luke’s University Health Network |
| Series 2016 |
| 08/15/2026 | 5.000% | | 3,770,000 | 4,508,353 |
| Pennsylvania Economic Development Financing Authority |
| Refunding Revenue Bonds |
| Philadelphia Biosolids Facility Project |
| Series 2020 |
| 01/01/2030 | 4.000% | | 1,275,000 | 1,467,474 |
| Pennsylvania Turnpike Commission |
| Refunding Revenue Bonds |
| Series 2021A |
| 12/01/2038 | 4.000% | | 2,660,000 | 3,124,477 |
| Revenue Bonds |
| Series 2018A-2 |
| 12/01/2036 | 5.000% | | 2,500,000 | 3,111,499 |
| Total | 31,692,849 |
| Rhode Island 0.1% |
| Rhode Island Turnpike & Bridge Authority |
| Refunding Revenue Bonds |
| Series 2016A |
| 10/01/2033 | 5.000% | | 1,300,000 | 1,524,525 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| South Carolina 3.5% |
| Beaufort-Jasper Water & Sewer Authority |
| Refunding Revenue Bonds |
| Series 2016B |
| 03/01/2025 | 5.000% | | 1,000,000 | 1,150,072 |
| County of Florence |
| Refunding Revenue Bonds |
| McLeod Regional Medical Center Project |
| Series 2014 |
| 11/01/2031 | 5.000% | | 3,250,000 | 3,651,343 |
| 11/01/2032 | 5.000% | | 5,000,000 | 5,609,535 |
| South Carolina Jobs-Economic Development Authority |
| Prerefunded 11/01/24 Revenue Bonds |
| York Preparatory Academy Project |
| Series 2014A |
| 11/01/2033 | 7.000% | | 590,000 | 702,006 |
| Refunding Revenue Bonds |
| Prisma Health Obligated Group |
| Series 2018 |
| 05/01/2036 | 5.000% | | 7,000,000 | 8,461,188 |
| Revenue Bonds |
| Lutheran Homes of South Carolina Obligation Group |
| Series 2013 |
| 05/01/2028 | 5.000% | | 3,500,000 | 3,602,777 |
| Wofford College Project |
| Series 2019 |
| 04/01/2038 | 5.000% | | 930,000 | 1,127,114 |
| South Carolina Jobs-Economic Development Authority(b) |
| Revenue Bonds |
| Series 2015A |
| 08/15/2025 | 4.500% | | 345,000 | 368,255 |
| South Carolina Public Service Authority |
| Refunding Revenue Bonds |
| Series 2015A |
| 12/01/2026 | 5.000% | | 7,000,000 | 8,054,364 |
| Series 2016A |
| 12/01/2030 | 5.000% | | 4,000,000 | 4,698,436 |
| Total | 37,425,090 |
| South Dakota 0.6% |
| South Dakota Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Sanford Obligated Group |
| Series 2015 |
| 11/01/2026 | 5.000% | | 1,000,000 | 1,167,373 |
| Revenue Bonds |
| Regional Health |
| Series 2017 |
| 09/01/2029 | 5.000% | | 1,700,000 | 2,035,033 |
| 09/01/2030 | 5.000% | | 2,250,000 | 2,672,552 |
| Total | 5,874,958 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 17 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Tennessee 0.1% |
| Chattanooga Health Educational & Housing Facility Board |
| Refunding Revenue Bonds |
| Student Housing - CDFI Phase I |
| Series 2015 |
| 10/01/2029 | 5.000% | | 1,000,000 | 1,118,386 |
| Texas 14.1% |
| Central Texas Regional Mobility Authority |
| Prerefunded 07/01/25 Revenue Bonds |
| Senior Lien |
| Series 2015A |
| 01/01/2030 | 5.000% | | 1,550,000 | 1,799,919 |
| Revenue Bonds |
| Senior Lien |
| Series 2020E |
| 01/01/2039 | 4.000% | | 2,140,000 | 2,448,677 |
| Series 2021B |
| 01/01/2038 | 5.000% | | 800,000 | 1,007,730 |
| Central Texas Turnpike System |
| Refunding Revenue Bonds |
| Subordinated Series 2015C |
| 08/15/2031 | 5.000% | | 7,500,000 | 8,386,008 |
| 08/15/2032 | 5.000% | | 6,000,000 | 6,707,123 |
| 08/15/2034 | 5.000% | | 10,240,000 | 11,439,242 |
| City of Austin Airport System |
| Revenue Bonds |
| Series 2017A |
| 11/15/2035 | 5.000% | | 1,000,000 | 1,188,269 |
| City of Austin Airport System(a) |
| Revenue Bonds |
| Series 2019B |
| 11/15/2035 | 5.000% | | 2,650,000 | 3,296,989 |
| City of Garland Electric Utility System |
| Refunding Revenue Bonds |
| Series 2019 |
| 03/01/2037 | 5.000% | | 1,700,000 | 2,079,841 |
| City of Houston |
| Refunding Revenue Bonds |
| Convention & Entertainment Facilities |
| Series 2014 |
| 09/01/2030 | 5.000% | | 1,000,000 | 1,105,665 |
| Series 2015 |
| 09/01/2027 | 5.000% | | 1,215,000 | 1,351,014 |
| 09/01/2029 | 5.000% | | 1,500,000 | 1,658,974 |
| City of Houston Airport System |
| Refunding Revenue Bonds |
| Subordinated Series 2018D |
| 07/01/2035 | 5.000% | | 2,500,000 | 3,078,758 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Houston Airport System(a) |
| Revenue Bonds |
| Subordinated Series 2020A |
| 07/01/2037 | 4.000% | | 3,000,000 | 3,459,600 |
| 07/01/2038 | 4.000% | | 3,250,000 | 3,739,789 |
| City of Houston Combined Utility System |
| Refunding Revenue Bonds |
| 1st Lien |
| Series 2016B |
| 11/15/2034 | 5.000% | | 10,000,000 | 12,039,652 |
| Clifton Higher Education Finance Corp. |
| Revenue Bonds |
| International Leadership |
| Series 2015 |
| 08/15/2035 | 5.500% | | 11,500,000 | 13,072,860 |
| Dallas/Fort Worth International Airport |
| Refunding Revenue Bonds |
| Series 2020A |
| 11/01/2034 | 4.000% | | 2,000,000 | 2,358,025 |
| Series 2020B |
| 11/01/2034 | 4.000% | | 2,500,000 | 2,947,531 |
| Love Field Airport Modernization Corp.(a) |
| Refunding Revenue Bonds |
| Series 2021 (AGM) |
| 11/01/2038 | 4.000% | | 8,000,000 | 9,372,853 |
| Lower Colorado River Authority |
| Refunding Revenue Bonds |
| Forward Delivery |
| Series 2020 |
| 05/15/2035 | 5.000% | | 5,825,000 | 7,376,726 |
| Revenue Bonds |
| LCRA Transmission Services Corp. Project |
| Series 2019 |
| 05/15/2038 | 5.000% | | 1,500,000 | 1,859,620 |
| New Hope Cultural Education Facilities Finance Corp. |
| Revenue Bonds |
| Cardinal Bay, Inc. - Village on the Park |
| Series 2016 |
| 07/01/2036 | 4.000% | | 2,250,000 | 2,005,050 |
| NCCD-College Station Properties LLC |
| Series 2015 |
| 07/01/2035 | 5.000% | | 4,000,000 | 3,440,000 |
| Series 2015A |
| 07/01/2030 | 5.000% | | 7,800,000 | 6,708,000 |
| New Hope Cultural Education Facilities Finance Corp.(b) |
| Revenue Bonds |
| Jubilee Academic Center Project |
| Series 2017 |
| 08/15/2027 | 4.250% | | 615,000 | 607,948 |
| 08/15/2037 | 5.000% | | 530,000 | 521,511 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| North Texas Tollway Authority |
| Refunding Revenue Bonds |
| 1st Tier |
| Series 2017A |
| 01/01/2034 | 5.000% | | 1,000,000 | 1,194,695 |
| 2nd Tier |
| Series 2015A |
| 01/01/2032 | 5.000% | | 16,800,000 | 19,040,816 |
| System-2nd Tier |
| Series 2014 |
| 01/01/2031 | 5.000% | | 1,415,000 | 1,549,265 |
| North Texas Tollway Authority(d) |
| Refunding Revenue Bonds |
| Series 2008D (AGM) |
| 01/01/2029 | 0.000% | | 7,770,000 | 6,946,267 |
| Port Beaumont Navigation District(a),(b) |
| Refunding Revenue Bonds |
| Jefferson Gulf Coast Energy LLC |
| Series 2020 |
| 01/01/2035 | 3.625% | | 1,500,000 | 1,542,015 |
| Revenue Bonds |
| Jefferson Gulf Coast Energy Project |
| Series 2021 |
| 01/01/2036 | 2.750% | | 1,275,000 | 1,255,806 |
| Texas Municipal Gas Acquisition & Supply Corp. III |
| Refunding Revenue Bonds |
| Senior |
| Series 2021 |
| 12/15/2030 | 5.000% | | 500,000 | 635,715 |
| Texas Private Activity Bond Surface Transportation Corp. |
| Refunding Revenue Bonds |
| LBJ Infrastructure Group LLC I-635 Managed Lanes Project |
| Series 2020 |
| 06/30/2039 | 4.000% | | 300,000 | 347,548 |
| Senior Lien - North Tarrant Express |
| Series 2019 |
| 12/31/2034 | 5.000% | | 3,000,000 | 3,719,150 |
| Texas Transportation Commission(d) |
| Revenue Bonds |
| First Tier Toll |
| Series 2019 |
| 08/01/2038 | 0.000% | | 550,000 | 296,574 |
| Total | 151,585,225 |
| Utah 0.8% |
| City of Salt Lake City Airport(a) |
| Revenue Bonds |
| Series 2021A |
| 07/01/2038 | 4.000% | | 5,000,000 | 5,836,855 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Salt Lake City Corp. Airport |
| Revenue Bonds |
| Series 2017B |
| 07/01/2032 | 5.000% | | 1,000,000 | 1,208,375 |
| 07/01/2033 | 5.000% | | 1,000,000 | 1,205,365 |
| Total | 8,250,595 |
| Vermont 1.1% |
| Vermont Educational & Health Buildings Financing Agency |
| Refunding Revenue Bonds |
| University of Vermont Medical Center |
| Series 2016A |
| 12/01/2033 | 5.000% | | 10,000,000 | 11,756,580 |
| Virginia 0.2% |
| Dulles Town Center Community Development Authority |
| Refunding Special Assessment Bonds |
| Dulles Town Center Project |
| Series 2012 |
| 03/01/2026 | 4.250% | | 1,000,000 | 1,003,756 |
| Virginia Gateway Community Development Authority |
| Refunding Special Assessment Bonds |
| Series 2012 |
| 03/01/2030 | 5.000% | | 1,500,000 | 1,505,669 |
| Total | 2,509,425 |
| Washington 1.7% |
| Energy Northwest |
| Refunding Revenue Bonds |
| Columbia Generating Station |
| Series 2020 |
| 07/01/2039 | 4.000% | | 2,500,000 | 2,963,516 |
| King County Public Hospital District No. 4 |
| Revenue Bonds |
| Series 2015A |
| 12/01/2025 | 5.000% | | 2,960,000 | 3,123,969 |
| 12/01/2030 | 5.750% | | 2,820,000 | 3,088,178 |
| Port of Seattle(a) |
| Revenue Bonds |
| Intermediate Lien |
| Series 2019 |
| 04/01/2036 | 5.000% | | 5,000,000 | 6,127,517 |
| Washington State Housing Finance Commission |
| Revenue Bonds |
| Heron’s Key |
| Series 2015A |
| 07/01/2030 | 6.500% | | 570,000 | 618,277 |
| 07/01/2035 | 6.750% | | 1,090,000 | 1,189,587 |
| Transforming Age Projects |
| Series 2019 |
| 01/01/2026 | 2.375% | | 1,500,000 | 1,501,000 |
| Total | 18,612,044 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 19 |
Portfolio of Investments (continued)
October 31, 2021
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| West Virginia 0.4% |
| West Virginia Hospital Finance Authority |
| Revenue Bonds |
| Charleston Area Medical Center, Inc. |
| Series 1993A Escrowed to Maturity |
| 09/01/2023 | 6.500% | | 1,325,000 | 1,428,654 |
| West Virginia University(d) |
| Revenue Bonds |
| University System Project |
| Series 2019A (AMBAC) |
| 04/01/2030 | 0.000% | | 3,460,000 | 2,958,043 |
| Total | 4,386,697 |
| Wisconsin 0.5% |
| Public Finance Authority(b) |
| Refunding Revenue Bonds |
| Mary’s Woods at Marylhurst |
| Series 2017 |
| 05/15/2037 | 5.250% | | 1,000,000 | 1,089,057 |
| Wisconsin Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| ProHealth Care, Inc. Obligated Group |
| Series 2015 |
| 08/15/2031 | 5.000% | | 1,000,000 | 1,122,264 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Rogers Memorial Hospital, Inc. |
| Series 2014A |
| 07/01/2034 | 5.000% | | 2,500,000 | 2,778,397 |
| Total | 4,989,718 |
Total Municipal Bonds
(Cost $985,399,301) | 1,061,271,306 |
| Money Market Funds 0.1% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.010%(f) | 71,556 | 71,548 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.006%(f) | 940,275 | 940,275 |
Total Money Market Funds
(Cost $1,011,830) | 1,011,823 |
Total Investments in Securities
(Cost $986,411,131) | 1,062,283,129 |
| Other Assets & Liabilities, Net | | 15,110,995 |
| Net Assets | $1,077,394,124 |
Notes to Portfolio of Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At October 31, 2021, the total value of these securities amounted to $18,520,343, which represents 1.72% of total net assets. |
| (c) | Represents a security purchased on a when-issued basis. |
| (d) | Zero coupon bond. |
| (e) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At October 31, 2021, the total value of these securities amounted to $82,672, which represents 0.01% of total net assets. |
| (f) | The rate shown is the seven-day current annualized yield at October 31, 2021. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Portfolio of Investments (continued)
October 31, 2021
Fair value measurements (continued)
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of the inputs used to value the Fund’s investments at October 31, 2021:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 1,061,271,306 | — | 1,061,271,306 |
| Money Market Funds | 1,011,823 | — | — | 1,011,823 |
| Total Investments in Securities | 1,011,823 | 1,061,271,306 | — | 1,062,283,129 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 21 |
Statement of Assets and Liabilities
October 31, 2021
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $986,411,131) | $1,062,283,129 |
| Receivable for: | |
| Investments sold | 10,444,606 |
| Capital shares sold | 1,055,442 |
| Interest | 12,258,479 |
| Expense reimbursement due from Investment Manager | 6,257 |
| Prepaid expenses | 13,621 |
| Trustees’ deferred compensation plan | 386,447 |
| Total assets | 1,086,447,981 |
| Liabilities | |
| Due to custodian | 25,719 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 4,823,642 |
| Capital shares purchased | 759,875 |
| Distributions to shareholders | 2,543,771 |
| Management services fees | 14,096 |
| Distribution and/or service fees | 1,349 |
| Transfer agent fees | 94,014 |
| Compensation of board members | 376,999 |
| Compensation of chief compliance officer | 27 |
| Other expenses | 27,918 |
| Trustees’ deferred compensation plan | 386,447 |
| Total liabilities | 9,053,857 |
| Net assets applicable to outstanding capital stock | $1,077,394,124 |
| Represented by | |
| Paid in capital | 997,836,914 |
| Total distributable earnings (loss) | 79,557,210 |
| Total - representing net assets applicable to outstanding capital stock | $1,077,394,124 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Assets and Liabilities (continued)
October 31, 2021
| Class A | |
| Net assets | $171,414,947 |
| Shares outstanding | 16,388,590 |
| Net asset value per share | $10.46 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.78 |
| Advisor Class | |
| Net assets | $6,615,017 |
| Shares outstanding | 632,802 |
| Net asset value per share | $10.45 |
| Class C | |
| Net assets | $16,754,286 |
| Shares outstanding | 1,601,620 |
| Net asset value per share | $10.46 |
| Institutional Class | |
| Net assets | $843,760,711 |
| Shares outstanding | 80,633,173 |
| Net asset value per share | $10.46 |
| Institutional 2 Class | |
| Net assets | $25,496,393 |
| Shares outstanding | 2,440,970 |
| Net asset value per share | $10.45 |
| Institutional 3 Class | |
| Net assets | $2,896,830 |
| Shares outstanding | 276,574 |
| Net asset value per share | $10.47 |
| Class V | |
| Net assets | $10,455,940 |
| Shares outstanding | 999,682 |
| Net asset value per share | $10.46 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.98 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 23 |
Statement of Operations
Year Ended October 31, 2021
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $1,041 |
| Interest | 35,991,002 |
| Total income | 35,992,043 |
| Expenses: | |
| Management services fees | 5,258,981 |
| Distribution and/or service fees | |
| Class A | 334,902 |
| Class C | 158,124 |
| Class V | 15,880 |
| Transfer agent fees | |
| Class A | 198,925 |
| Advisor Class | 7,706 |
| Class C | 22,333 |
| Institutional Class | 1,039,967 |
| Institutional 2 Class | 15,686 |
| Institutional 3 Class | 268 |
| Class V | 12,584 |
| Compensation of board members | 128,401 |
| Custodian fees | 10,772 |
| Printing and postage fees | 26,991 |
| Registration fees | 137,092 |
| Audit fees | 29,500 |
| Legal fees | 23,386 |
| Compensation of chief compliance officer | 289 |
| Other | 34,246 |
| Total expenses | 7,456,033 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (1,456,804) |
| Fees waived by distributor | |
| Class C | (8,005) |
| Expense reduction | (360) |
| Total net expenses | 5,990,864 |
| Net investment income | 30,001,179 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 2,478,782 |
| Net realized gain | 2,478,782 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (1,306,017) |
| Net change in unrealized appreciation (depreciation) | (1,306,017) |
| Net realized and unrealized gain | 1,172,765 |
| Net increase in net assets resulting from operations | $31,173,944 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Statement of Changes in Net Assets
| | Year Ended
October 31, 2021 | Year Ended
October 31, 2020 |
| Operations | | |
| Net investment income | $30,001,179 | $33,446,999 |
| Net realized gain | 2,478,782 | 4,807,471 |
| Net change in unrealized appreciation (depreciation) | (1,306,017) | (11,848,821) |
| Net increase in net assets resulting from operations | 31,173,944 | 26,405,649 |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (5,097,345) | (4,707,382) |
| Advisor Class | (211,361) | (200,952) |
| Class C | (474,038) | (570,089) |
| Institutional Class | (28,632,229) | (31,204,877) |
| Institutional 2 Class | (943,115) | (1,350,901) |
| Institutional 3 Class | (92,953) | (90,301) |
| Class V | (330,141) | (354,228) |
| Total distributions to shareholders | (35,781,182) | (38,478,730) |
| Decrease in net assets from capital stock activity | (46,659,482) | (103,458,912) |
| Total decrease in net assets | (51,266,720) | (115,531,993) |
| Net assets at beginning of year | 1,128,660,844 | 1,244,192,837 |
| Net assets at end of year | $1,077,394,124 | $1,128,660,844 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 25 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | October 31, 2021 | October 31, 2020 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Subscriptions | 3,590,256 | 38,025,004 | 2,586,579 | 27,150,318 |
| Distributions reinvested | 418,945 | 4,428,423 | 390,025 | 4,096,422 |
| Redemptions | (2,552,880) | (26,990,697) | (2,447,488) | (25,426,158) |
| Net increase | 1,456,321 | 15,462,730 | 529,116 | 5,820,582 |
| Advisor Class | | | | |
| Subscriptions | 144,951 | 1,536,076 | 112,982 | 1,190,568 |
| Distributions reinvested | 19,977 | 211,036 | 19,081 | 200,295 |
| Redemptions | (127,353) | (1,343,291) | (96,725) | (1,000,205) |
| Net increase | 37,575 | 403,821 | 35,338 | 390,658 |
| Class C | | | | |
| Subscriptions | 387,986 | 4,106,394 | 631,585 | 6,614,557 |
| Distributions reinvested | 43,653 | 461,575 | 46,312 | 486,507 |
| Redemptions | (873,307) | (9,252,987) | (854,723) | (8,970,813) |
| Net decrease | (441,668) | (4,685,018) | (176,826) | (1,869,749) |
| Institutional Class | | | | |
| Subscriptions | 5,497,647 | 58,228,372 | 5,466,330 | 57,173,942 |
| Distributions reinvested | 531,186 | 5,617,499 | 498,443 | 5,237,575 |
| Redemptions | (11,089,869) | (117,227,760) | (15,780,931) | (164,511,056) |
| Net decrease | (5,061,036) | (53,381,889) | (9,816,158) | (102,099,539) |
| Institutional 2 Class | | | | |
| Subscriptions | 130,766 | 1,382,805 | 1,549,645 | 16,298,646 |
| Distributions reinvested | 89,315 | 943,115 | 128,809 | 1,350,725 |
| Redemptions | (643,990) | (6,819,315) | (2,200,424) | (22,767,572) |
| Net decrease | (423,909) | (4,493,395) | (521,970) | (5,118,201) |
| Institutional 3 Class | | | | |
| Subscriptions | 97,746 | 1,036,989 | 56,427 | 594,551 |
| Distributions reinvested | 6,662 | 70,519 | 6,502 | 68,369 |
| Redemptions | (64,961) | (685,910) | (65,419) | (683,847) |
| Net increase (decrease) | 39,447 | 421,598 | (2,490) | (20,927) |
| Class V | | | | |
| Subscriptions | 8,149 | 86,535 | 14,680 | 155,628 |
| Distributions reinvested | 23,602 | 249,503 | 25,184 | 264,515 |
| Redemptions | (68,390) | (723,367) | (95,033) | (981,879) |
| Net decrease | (36,639) | (387,329) | (55,169) | (561,736) |
| Total net decrease | (4,429,909) | (46,659,482) | (10,008,159) | (103,458,912) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 26 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
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Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 27 |
The following table is intended to help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A |
| Year Ended 10/31/2021 | $10.51 | 0.27 | 0.00(c) | 0.27 | (0.27) | (0.05) | (0.32) |
| Year Ended 10/31/2020 | $10.59 | 0.28 | (0.03) | 0.25 | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2019 | $10.11 | 0.31 | 0.48 | 0.79 | (0.31) | (0.00)(c) | (0.31) |
| Year Ended 10/31/2018 | $10.54 | 0.31 | (0.43) | (0.12) | (0.31) | — | (0.31) |
| Year Ended 10/31/2017 | $10.71 | 0.31 | (0.17) | 0.14 | (0.31) | — | (0.31) |
| Advisor Class |
| Year Ended 10/31/2021 | $10.50 | 0.29 | 0.00(c) | 0.29 | (0.29) | (0.05) | (0.34) |
| Year Ended 10/31/2020 | $10.59 | 0.30 | (0.04) | 0.26 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2019 | $10.11 | 0.33 | 0.48 | 0.81 | (0.33) | (0.00)(c) | (0.33) |
| Year Ended 10/31/2018 | $10.53 | 0.33 | (0.42) | (0.09) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.71 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Class C |
| Year Ended 10/31/2021 | $10.51 | 0.21 | 0.00(c) | 0.21 | (0.21) | (0.05) | (0.26) |
| Year Ended 10/31/2020 | $10.59 | 0.21 | (0.03) | 0.18 | (0.22) | (0.04) | (0.26) |
| Year Ended 10/31/2019 | $10.12 | 0.24 | 0.48 | 0.72 | (0.25) | (0.00)(c) | (0.25) |
| Year Ended 10/31/2018 | $10.54 | 0.24 | (0.42) | (0.18) | (0.24) | — | (0.24) |
| Year Ended 10/31/2017 | $10.72 | 0.25 | (0.19) | 0.06 | (0.24) | — | (0.24) |
| Institutional Class |
| Year Ended 10/31/2021 | $10.51 | 0.29 | 0.00(c) | 0.29 | (0.29) | (0.05) | (0.34) |
| Year Ended 10/31/2020 | $10.60 | 0.30 | (0.04) | 0.26 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2019 | $10.12 | 0.33 | 0.48 | 0.81 | (0.33) | (0.00)(c) | (0.33) |
| Year Ended 10/31/2018 | $10.54 | 0.33 | (0.42) | (0.09) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.72 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Institutional 2 Class |
| Year Ended 10/31/2021 | $10.49 | 0.30 | 0.01 | 0.31 | (0.30) | (0.05) | (0.35) |
| Year Ended 10/31/2020 | $10.58 | 0.31 | (0.05) | 0.26 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2019 | $10.10 | 0.34 | 0.48 | 0.82 | (0.34) | (0.00)(c) | (0.34) |
| Year Ended 10/31/2018 | $10.53 | 0.34 | (0.44) | (0.10) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.70 | 0.34 | (0.17) | 0.17 | (0.34) | — | (0.34) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 28 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 10/31/2021 | $10.46 | 2.61% | 0.83% | 0.70%(d) | 2.55% | 5% | $171,415 |
| Year Ended 10/31/2020 | $10.51 | 2.36% | 0.82% | 0.73%(d) | 2.70% | 9% | $156,865 |
| Year Ended 10/31/2019 | $10.59 | 7.94% | 0.82%(e) | 0.76%(d),(e) | 2.97% | 14% | $152,575 |
| Year Ended 10/31/2018 | $10.11 | (1.18%) | 0.81%(f) | 0.76%(d),(f) | 2.98% | 8% | $157,597 |
| Year Ended 10/31/2017 | $10.54 | 1.39% | 0.84%(g) | 0.77%(d),(g) | 2.99% | 11% | $189,260 |
| Advisor Class |
| Year Ended 10/31/2021 | $10.45 | 2.81% | 0.63% | 0.50%(d) | 2.75% | 5% | $6,615 |
| Year Ended 10/31/2020 | $10.50 | 2.47% | 0.62% | 0.53%(d) | 2.90% | 9% | $6,249 |
| Year Ended 10/31/2019 | $10.59 | 8.15% | 0.62%(e) | 0.56%(d),(e) | 3.22% | 14% | $5,927 |
| Year Ended 10/31/2018 | $10.11 | (0.89%) | 0.61%(f) | 0.56%(d),(f) | 3.18% | 8% | $20,349 |
| Year Ended 10/31/2017 | $10.53 | 1.50% | 0.63% | 0.58%(d) | 3.16% | 11% | $17,306 |
| Class C |
| Year Ended 10/31/2021 | $10.46 | 1.99% | 1.47% | 1.30%(d) | 1.94% | 5% | $16,754 |
| Year Ended 10/31/2020 | $10.51 | 1.71% | 1.47% | 1.38%(d) | 2.06% | 9% | $21,469 |
| Year Ended 10/31/2019 | $10.59 | 7.14% | 1.47%(e) | 1.41%(d),(e) | 2.33% | 14% | $23,522 |
| Year Ended 10/31/2018 | $10.12 | (1.72%) | 1.46%(f) | 1.41%(d),(f) | 2.32% | 8% | $29,097 |
| Year Ended 10/31/2017 | $10.54 | 0.64% | 1.49%(g) | 1.42%(d),(g) | 2.34% | 11% | $44,951 |
| Institutional Class |
| Year Ended 10/31/2021 | $10.46 | 2.81% | 0.63% | 0.50%(d) | 2.75% | 5% | $843,761 |
| Year Ended 10/31/2020 | $10.51 | 2.47% | 0.62% | 0.53%(d) | 2.90% | 9% | $900,641 |
| Year Ended 10/31/2019 | $10.60 | 8.15% | 0.62%(e) | 0.56%(d),(e) | 3.17% | 14% | $1,012,229 |
| Year Ended 10/31/2018 | $10.12 | (0.88%) | 0.61%(f) | 0.56%(d),(f) | 3.17% | 8% | $1,232,944 |
| Year Ended 10/31/2017 | $10.54 | 1.50% | 0.63%(g) | 0.57%(d),(g) | 3.18% | 11% | $1,679,211 |
| Institutional 2 Class |
| Year Ended 10/31/2021 | $10.45 | 2.98% | 0.56% | 0.44% | 2.81% | 5% | $25,496 |
| Year Ended 10/31/2020 | $10.49 | 2.54% | 0.55% | 0.47% | 2.98% | 9% | $30,056 |
| Year Ended 10/31/2019 | $10.58 | 8.24% | 0.55%(e) | 0.49%(e) | 3.21% | 14% | $35,836 |
| Year Ended 10/31/2018 | $10.10 | (0.92%) | 0.55%(f) | 0.50%(f) | 3.25% | 8% | $15,697 |
| Year Ended 10/31/2017 | $10.53 | 1.67% | 0.54%(g) | 0.50%(g) | 3.26% | 11% | $12,401 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 29 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $10.52 | 0.30 | 0.01 | 0.31 | (0.31) | (0.05) | (0.36) |
| Year Ended 10/31/2020 | $10.61 | 0.32 | (0.05) | 0.27 | (0.32) | (0.04) | (0.36) |
| Year Ended 10/31/2019 | $10.13 | 0.34 | 0.49 | 0.83 | (0.35) | (0.00)(c) | (0.35) |
| Year Ended 10/31/2018 | $10.55 | 0.34 | (0.42) | (0.08) | (0.34) | — | (0.34) |
| Year Ended 10/31/2017(h) | $10.43 | 0.22 | 0.13(i) | 0.35 | (0.23) | — | (0.23) |
| Class V |
| Year Ended 10/31/2021 | $10.50 | 0.27 | 0.02 | 0.29 | (0.28) | (0.05) | (0.33) |
| Year Ended 10/31/2020 | $10.59 | 0.29 | (0.05) | 0.24 | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2019 | $10.11 | 0.32 | 0.48 | 0.80 | (0.32) | (0.00)(c) | (0.32) |
| Year Ended 10/31/2018 | $10.54 | 0.31 | (0.43) | (0.12) | (0.31) | — | (0.31) |
| Year Ended 10/31/2017 | $10.71 | 0.32 | (0.17) | 0.15 | (0.32) | — | (0.32) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Rounds to zero. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Ratios include line of credit interest expense which is less than 0.01%. |
| (f) | Ratios include interfund lending expense which is less than 0.01%. |
| (g) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Class C | Institutional
Class | Institutional 2
Class | Class V |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (h) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (i) | 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 subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (j) | Annualized. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 30 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 10/31/2021 | $10.47 | 2.93% | 0.52% | 0.39% | 2.86% | 5% | $2,897 |
| Year Ended 10/31/2020 | $10.52 | 2.59% | 0.51% | 0.42% | 3.01% | 9% | $2,495 |
| Year Ended 10/31/2019 | $10.61 | 8.27% | 0.51%(e) | 0.44%(e) | 3.28% | 14% | $2,542 |
| Year Ended 10/31/2018 | $10.13 | (0.76%) | 0.50%(f) | 0.45%(f) | 3.31% | 8% | $1,836 |
| Year Ended 10/31/2017(h) | $10.55 | 3.35% | 0.51%(j) | 0.47%(j) | 3.25%(j) | 11% | $1,865 |
| Class V |
| Year Ended 10/31/2021 | $10.46 | 2.76% | 0.78% | 0.65%(d) | 2.60% | 5% | $10,456 |
| Year Ended 10/31/2020 | $10.50 | 2.31% | 0.77% | 0.68%(d) | 2.75% | 9% | $10,887 |
| Year Ended 10/31/2019 | $10.59 | 7.99% | 0.77%(e) | 0.71%(d),(e) | 3.02% | 14% | $11,562 |
| Year Ended 10/31/2018 | $10.11 | (1.13%) | 0.76%(f) | 0.71%(d),(f) | 3.03% | 8% | $12,260 |
| Year Ended 10/31/2017 | $10.54 | 1.44% | 0.79%(g) | 0.72%(d),(g) | 3.03% | 11% | $13,371 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 31 |
Notes to Financial Statements
October 31, 2021
Note 1. Organization
Columbia 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 each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Effective April 1, 2021, Class C shares automatically convert to Class A shares after 8 years. Prior to April 1, 2021, Class C shares automatically converted to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
| 32 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the ex-dividend date.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset value
All income, expenses (other than class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 33 |
Notes to Financial Statements (continued)
October 31, 2021
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other transactions with affiliates
Management services fees
The Fund has entered into a Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.48% to 0.29% as the Fund’s net assets increase. The effective management services fee rate for the year ended October 31, 2021 was 0.47% of the Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| 34 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
For the year ended October 31, 2021, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.12 |
| Advisor Class | 0.12 |
| Class C | 0.12 |
| Institutional Class | 0.12 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class V | 0.12 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended October 31, 2021, these minimum account balance fees reduced total expenses of the Fund by $360.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.20% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.65% of the average daily net assets attributable to Class C shares of the Fund.
Effective September 1, 2021, the Distributor has reduced the distribution fee for Class C shares to 0.60% annually of the average daily net assets attributable to Class C shares. Prior to September 1, 2021, the Distributor contractually waived a portion of the distribution fee for Class C shares so that the distribution fee did not exceed 0.60% annually of the average daily net assets attributable to Class C shares. This arrangement could have been modified or terminated at the sole discretion of the Board of Trustees.
Shareholder services fees
The Fund has adopted a shareholder services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40% of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended October 31, 2021, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 42,053 |
| Class C | — | 1.00(b) | 2,094 |
| Class V | 4.75 | 0.50 - 1.00(c) | 213 |
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 35 |
Notes to Financial Statements (continued)
October 31, 2021
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| | December 11, 2021
through
February 29, 2024 | September 1, 2021
through
December 10, 2021 | March 1, 2021
through
August 31, 2021 | Prior to
March 1, 2021 |
| Class A | 0.61% | 0.61% | 0.71% | 0.73% |
| Advisor Class | 0.41 | 0.41 | 0.51 | 0.53 |
| Class C | 1.21 | 1.21 | 1.36 | 1.38 |
| Institutional Class | 0.41 | 0.41 | 0.51 | 0.53 |
| Institutional 2 Class | 0.33 | 0.35 | 0.45 | 0.46 |
| Institutional 3 Class | 0.28 | 0.30 | 0.40 | 0.41 |
| Class V | 0.56 | 0.56 | 0.66 | 0.68 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with certain shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Prior to September 1, 2021, Class C distribution fees waived by the Distributor, as discussed above, were in addition to the waiver/reimbursement commitment under the agreement. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At October 31, 2021, these differences were primarily due to differing treatment for trustees’ deferred compensation, tax straddles and distributions. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The Fund did not have any permanent differences; therefore, no reclassifications were made.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended October 31, 2021 | Year Ended October 31, 2020 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 133,886 | 30,779,774 | 4,867,522 | 35,781,182 | 135,318 | 33,414,412 | 4,929,000 | 38,478,730 |
| 36 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At October 31, 2021, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| — | 4,624,860 | 2,369,007 | — | 75,869,354 |
At October 31, 2021, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 986,413,775 | 78,971,604 | (3,102,250) | 75,869,354 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio information
The cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $60,060,381 and $115,081,824, respectively, for the year ended October 31, 2021. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend money under the Interfund Program during the year ended October 31, 2021.
Note 7. Line of credit
The Fund has access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 37 |
Notes to Financial Statements (continued)
October 31, 2021
unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during the year ended October 31, 2021.
Note 8. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The COVID-19 pandemic has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines
| 38 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Notes to Financial Statements (continued)
October 31, 2021
and travel restrictions, workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and other natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Securities issued by a particular state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At October 31, 2021, one unaffiliated shareholder of record owned 61.6% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of record owned 10.8% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 39 |
Notes to Financial Statements (continued)
October 31, 2021
Note 10. Information regarding pending and settled legal proceedings
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 Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to the Fund.
| 40 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Intermediate Municipal Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of October 31, 2021, the related statement of operations for the year ended October 31, 2021, the statement of changes in net assets for each of the two years in the period ended October 31, 2021, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2021, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2021 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2021 by correspondence with the custodian and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
December 21, 2021
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 41 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended October 31, 2021. Shareholders will be notified in early 2022 of the amounts for use in preparing 2021 income tax returns.
Capital
gain
dividend | Exempt-
interest
dividends |
| $2,602,721 | 99.57% |
Capital gain dividend. The Fund designates as a capital gain dividend the amount reflected above, or if subsequently determined to be different, the net capital gain of such fiscal period.
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1953 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 171 | Former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2015-2016; former Advisory Board Member, University of Colorado Business School, 2015-2018 |
| 42 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2006 | Attorney; specializing in arbitration and mediation; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Member and Interim Chair, Minnesota Sports Facilities Authority, January 2017-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018 | 171 | Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee - 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; Director, Robina Foundation, 2009-2020 (Chair, 2014-2020) |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2007 | President, Springboard — Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 171 | Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of People Committee) since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee) since 2019 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 169 | Director, EQT Corporation (natural gas producer) since 2019; Director, Whiting Petroleum Corporation (independent oil and gas company) since 2020 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020(a) | Member, FINRA National Adjudicatory Council since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 169 | Director, The Autism Project, since March 2015; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios, January 2015-December 2017 |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020(a) | Managing Director of Darragh Inc. (strategy and talent management consulting firm) since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform) since 2004; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 2001-2004 | 169 | Former Director, University of Edinburgh Business School (Member of US Board); former Director, Boston Public Library Foundation |
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 43 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 171 | Trustee, MA Taxpayers Foundation since 1997; Board of Governors, Innovation Institute, MA Technology Collaborative, 2010-2019; Board of Directors, The MA Business Roundtable, 2003-2019 |
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016 | 171 | Trustee, Catholic Schools Foundation since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Co-Chair since 2021; Chair of CFST I and CFVIT since 2014; Trustee of CFST I and CFVIT since 1996 and CFST, CFST II, CFVST II, CET I and CET II since 2021 | Independent business executive since May 2006; Executive Vice President – Strategy of United Airlines, December 2002 - May 2006; President of UAL Loyalty Services (airline marketing company), September 2001-December 2002; Executive Vice President and Chief Financial Officer of United Airlines, July 1999-September 2001 | 169 | Director, Spartan Nash Company (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing); former Director, Nash Finch Company (food distributor), 2005-2013; former Director, SeaCube Container Leasing Ltd. (container leasing), 2010-2013; and former Director, Travelport Worldwide Limited (travel information technology), 2014-2019 |
Nancy T. Lukitsh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1956 | Trustee since 2011 | Senior Vice President, Partner and Director of Marketing, Wellington Management Company, LLP (investment adviser), 1997-2010; Chair, Wellington Management Portfolios (commingled non-U.S. investment pools), 2007 -2010; Director, Wellington Trust Company, NA and other Wellington affiliates, 1997-2010 | 169 | None |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; Consultant to Bridgewater and Associates | 169 | Director, CSX Corporation (transportation suppliers); Director, Genworth Financial, Inc. (financial and insurance products and services); Director, PayPal Holdings Inc. (payment and data processing services); Trustee, University of Oklahoma Foundation; former Director, eBay Inc. (online trading community), 2007-2015; and former Director, CIT Bank, CIT Group Inc. (commercial and consumer finance), 2010-2016 |
| 44 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Co-Chair since 2021; Chair of CFST, CFST II, CFVST II, CET I and CET II since 2020; Trustee of CFST, CFST II and CFVST II since 2004 and CFST I and CFVIT since 2021 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, Dean Witter Reynolds, Inc., 1976-1980 | 171 | Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee) |
Anthony M. Santomero
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1946 | Trustee since 2008 | Richard K. Mellon Professor Emeritus of Finance, The Wharton School, University of Pennsylvania, since 2002; Senior Advisor, McKinsey & Company (consulting), 2006-2008; President, Federal Reserve Bank of Philadelphia, 2000-2006; Professor of Finance, The Wharton School, University of Pennsylvania, 1972-2002 | 171 | Trustee, Penn Mutual Life Insurance Company since March 2008; Director, RenaissanceRe Holdings Ltd. since May 2008; former Director, Citigroup Inc. and Citibank, N.A., 2009-2019; former Trustee, BofA Funds Series Trust (11 funds), 2008-2011 |
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1947 | Trustee since 2003 | President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011 | 171 | Director, BlueCross BlueShield of South Carolina (Chair of Compensation Committee) since April 2008; Trustee, Hollingsworth Funds (on the Investment Committee) since 2016 (previously Board Chair from 2016-2019); Former Advisory Board member, Duke Energy Corp., 2016-2020; Chair of the Duke Endowment; Chair of Greenville – Spartanburg Airport Commission; former Trustee, BofA Funds Series Trust (11 funds), 2003-2011; former Director, Piedmont Natural Gas, 2004-2016; former Director, National Association of Corporate Directors, Carolinas Chapter, 2013-2018; Chair, Daniel-Mickel Foundation |
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 45 |
TRUSTEES AND OFFICERS (continued)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past
five years |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020(a) | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services) since January 2016; Non-executive Member of the Investment Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services) since August 2018; Advisor, Paradigm Asset Management since November 2016; Director of Investments, Casey Family Programs, April 2016-September 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008 - January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 169 | Director, Health Services for Children with Special Needs, Inc.; Director, Consumer Credit Counseling Services (formerly Guidewell Financial Solutions); Independent Director, Investment Committee, Sarona Asset Management |
Sandra Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 171 | Director, NAPE Education Foundation, October 2016-October 2020 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Fund Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Santomero and Mses. Blatz, Carlton, Flynn, Paglia, Shaw and Yeager serve as a director of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| (a) | J. Kevin Connaughton was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective March 1, 2016. Natalie A. Trunow was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective September 1, 2016. Olive M. Darragh was appointed a consultant to the Independent Trustees of CFST I and CFVIT effective June 10, 2019. Shareholders of the Funds elected Mr. Connaughton and Mses. Darragh and Trunow as Trustees of CFST, CFST I, CFST II, CET I, CET II, and CFVST II, effective January 1, 2021, and of CFVIT, effective July 1, 2020. |
Interested trustee affiliated with Investment Manager*
Name,
address,
year of birth | Position held with the Columbia Funds and length of service | Principal occupation(s) during the
past five years and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex overseen | Other directorships
held by Trustee
during the past
five years |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021(a) | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC (since April 2015); officer of Columbia Funds and affiliated funds since 2020. | 171 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018 |
| * | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
| (a) | Mr. Beckman serves as the President and Principal Executive Officer of the Columbia Funds (since 2021). |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 46 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
TRUSTEES AND OFFICERS (continued)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is the President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Vice President, Head of North American Operations, and Co-Head of Global Operations, Columbia Management Investment Advisers, LLC, since June 2019 (previously Vice President – Accounting and Tax, May 2010 – May 2019); senior officer of Columbia Funds and affiliated funds since 2002. |
Joseph Beranek
5890 Ameriprise
Financial Center
Minneapolis, MN 55474
1965 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) (2019) and Principal Financial Officer (2020), CFST, CFST I, CFST II, CFVIT and CFVST II; Assistant Treasurer, CET I and CET II | Vice President – Mutual Fund Accounting and Financial Reporting, Columbia Management Investment Advisers, LLC, since December 2018 and March 2017, respectively (previously Vice President – Pricing and Corporate Actions, May 2010 - March 2017). |
Marybeth Pilat
290 Congress Street
Boston, MA 02210
1968 | Treasurer and Chief Accounting Officer (Principal Accounting Officer) and Principal Financial Officer (2020) for CET I and CET II; Assistant Treasurer, CFST, CFST I, CFST II, CFVIT and CFVST II | Vice President – Product Pricing and Administration, Columbia Management Investment Advisers, LLC, since May 2017; Director - Fund Administration, Calvert Investments, August 2015 – March 2017; Vice President - Fund Administration, Legg Mason, May 2015 - July 2015; Vice President - Fund Administration, Columbia Management Investment Advisers, LLC, May 2010 - April 2015. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee of Columbia Funds Complex until January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc. since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc. since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary | Formerly, Trustee of Columbia Funds Complex until November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); President and Principal Executive Officer of the Columbia Funds 2015 - 2021; officer of Columbia Funds and affiliated funds since 2007. |
Thomas P. McGuire
290 Congress Street
Boston, MA 02210
1972 | Senior Vice President and Chief Compliance Officer (2012) | Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Columbia Acorn/Wanger Funds since December 2015; Chief Compliance Officer, Ameriprise Certificate Company September 2010 – September 2020. |
Colin Moore
290 Congress Street
Boston, MA 02210
1958 | Senior Vice President (2010) | Executive Vice President and Global Chief Investment Officer, Ameriprise Financial, Inc., since July 2013; Executive Vice President and Global Chief Investment Officer, Columbia Management Investment Advisers, LLC since July 2013. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds since 2005. |
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 47 |
TRUSTEES AND OFFICERS (continued)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc. since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5228 Ameriprise
Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | President, Columbia Management Investment Services Corp. since October 2014; Vice President & Resolution Officer, Ameriprise Trust Company since August 2009. |
Approval of Management Agreement
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves as the investment manager to Columbia Intermediate Municipal Bond Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the Board and its Contracts Committee in November and December 2020 and March, April and June 2021, including reports providing the results of analyses performed by an independent third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and a comprehensive response to requests for information by independent legal counsels to the Independent Trustees (Independent Legal Counsel) in a letter to the Investment Manager, to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees, such as the Contracts Committee, the Investment Oversight Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 15, 2021 Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors considered 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 Broadridge, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by Broadridge; |
| 48 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
| • | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The Board further observed the enhancements to the investment risk management department’s processes, systems and oversight, over the past several years, as well as planned 2021 initiatives in this regard. The Board also took into account the broad scope of services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel. The Board also observed that the Investment Manager has been able to effectively manage, operate and distribute the Funds through the COVID-19 pandemic period with no disruptions in services provided.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as well as the achievements in 2020 in the performance of administrative services, and noted the various enhancements anticipated for 2021. In evaluating the quality of services provided under the Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes are proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Funds under the Fund Management Agreements.
After reviewing these and related factors (including investment performance as discussed below), 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 Management Agreement supported the continuation of the Management Agreement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 49 |
Approval of Management Agreement (continued)
Investment performance
In this connection, the Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including since manager inception): (i) the performance of the Fund, (ii) the performance of a benchmark index, (iii) the percentage ranking of the Fund among its comparison group, (iv) the Fund’s performance relative to peers and benchmarks and (v) the net assets of the Fund. The Board observed that Fund performance was well within the range of that of peers.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current "pricing philosophy" such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board considered that in 2020 the Board had considered 2019 profitability and that the 2021 information showed that the profitability generated by the Investment Manager in 2020 increased slightly from 2019 levels. It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, 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 Management Agreement.
| 50 | Columbia Intermediate Municipal Bond Fund | Annual Report 2021 |
Approval of Management Agreement (continued)
Economies of scale
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 as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 15, 2021, the Board, including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the Management Agreement.
Columbia Intermediate Municipal Bond Fund | Annual Report 2021
| 51 |
Columbia Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2021 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Item 2. Code of Ethics.
(a)The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.
(b)During the period covered by this report, there were not any amendments to a provision of the code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item.
(c)During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party that relates to one or more of the items set forth in paragraph (b) of this Item.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Trustees has determined that David M. Moffett, Brian J. Gallagher, J. Kevin Connaughton, and Sandra L. Yeager, each of whom are members of the registrant's Board of Trustees and Audit Committee, each qualify as an audit committee financial expert. Mr. Moffett, Mr. Gallagher, Mr. Connaughton, and Ms. Yeager are each independent trustees, as defined in paragraph (a)(2) of this item's instructions.
Item 4. Principal Accountant Fees and Services.
Fee information below is disclosed for the six 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 October 31, 2021 and October 31, 2020 are approximately as follows:
20212020
$177,000 $177,000
Audit Fees include amounts related to the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b)Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended October 31, 2021 and October 31, 2020 are approximately as follows:
Audit-Related Fees, if any, include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported in Audit Fees above.
During the fiscal years ended October 31, 2021 and October 31, 2020, 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 October 31, 2021 and October 31, 2020 are approximately as follows:
Tax Fees, if any, include amounts for the review of annual tax returns, the review of required shareholder distribution calculations and typically include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.
During the fiscal years ended October 31, 2021 and October 31, 2020, 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 October 31,
2021 and October 31, 2020 are approximately as follows:
All Other Fees, if any, include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
Aggregate All Other Fees billed by the registrant's principal accountant to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended October 31, 2021 and October 31, 2020 are approximately as follows:
20212020
$520,000 $520,000
In fiscal years 2021 and 2020, All Other Fees primarily consists of fees billed for internal control examinations of the registrant's transfer agent and investment adviser.
(e)(1) Audit Committee Pre-Approval Policies and Procedures
The registrant's Audit Committee is required to pre-approve the engagement of the
registrant's independent auditors to provide audit and non-audit services to the registrant and non-audit services to its investment adviser (excluding any sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser (the "Adviser") or any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund (a "Control Affiliate") if the engagement relates directly to the operations and financial reporting of the registrant.
The Audit Committee has adopted a Policy for Engagement of Independent Auditors for Audit and Non-Audit Services (the "Policy"). The Policy sets forth the understanding of the Audit Committee regarding the engagement of the registrant's independent accountants to provide (i) audit and permissible audit-related, tax and other services to the registrant ("Fund Services"); (ii) non-audit services to the registrant's Adviser and any Control Affiliates, that relates directly to the operations and financial reporting of a Fund ("Fund-related Adviser Services"); and (iii) certain other audit and non-audit services to the registrant's Adviser and its Control Affiliates. A service will require specific pre-approval by the Audit Committee if it is to be provided by the Fund's independent auditor; provided, however, that pre-approval of non-audit services to the Fund, the Adviser or Control Affiliates may be waived if certain de minimis requirements set forth in the SEC's rules are met.
Under the Policy, the Audit Committee may delegate pre-approval authority to any pre- designated member or members who are independent board members. The member(s) to whom such authority is delegated must report, for informational purposes only, any pre- approval decisions to the Audit Committee at its next regular meeting. The Audit Committee's responsibilities with respect to the pre-approval of services performed by the independent auditor may not be delegated to management.
On an annual basis, at a regularly scheduled Audit Committee meeting, the Fund's Treasurer or other Fund officer shall submit to the Audit Committee a schedule of the types of Fund Services and Fund-related Adviser Services that are subject to specific pre- approval. This schedule will provide a description of each type of service that is subject to specific pre-approval, along with total projected fees for each service. The pre- approval will generally cover a one-year period. The Audit Committee will review and approve the types of services and the projected fees for the next one-year period and may add to, or subtract from, the list of pre-approved services from time to time, based on subsequent determinations. This specific approval acknowledges that the Audit Committee is in agreement with the specific types of services that the independent auditor will be permitted to perform and the projected fees for each service.
The Fund's Treasurer or other Fund officer shall report to the Audit Committee at each of its regular meetings regarding all Fund Services or Fund-related Adviser Services provided since the last such report was rendered, including a description of the services, by category, with forecasted fees for the annual reporting period, proposed changes requiring specific pre-approval and a description of services provided by the independent auditor, by category, with actual fees during the current reporting period.
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(e)(2) None, or 0%, of the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund or affiliated entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
(f)Not applicable.
(g)The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal years ended October 31, 2021 and October 31, 2020 are approximately as follows:
20212020
$520,000 $520,000
(h)The registrant's Audit Committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a)The registrant's "Schedule I – Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.
(b)Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 11. Controls and Procedures.
(a)The registrant's principal executive officer and principal financial officer, based on their evaluation of the registrant's disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b)There was no change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
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 | |
By (Signature and Title) | /s/ Daniel J. Beckman | |
| | | Daniel J. Beckman, President and Principal Executive Officer | |
Date | | December 21, 2021 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Daniel J. Beckman |
| | Daniel J. Beckman, President and Principal Executive Officer |
Date | | December 21, 2021 | |
By (Signature and Title) | /s/ Michael G. Clarke |
| | Michael G. Clarke, Chief Financial Officer, Principal Financial Officer |
| | and Senior Vice President |
Date | | December 21, 2021 | |
By (Signature and Title) | /s/ Joseph Beranek |
| | Joseph Beranek, Treasurer, Chief Accounting Officer and Principal |
| | Financial Officer |
Date | | December 21, 2021 | |
