UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-04367
Columbia Funds Series Trust I
(Exact name of registrant as specified in charter)
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: July 31
Date of reporting period: July 31, 2023
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
July 31, 2023
Columbia Large Cap Growth Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Large Cap Growth 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, is available on columbiathreadneedleus.com/investor/ or 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 Large Cap Growth Fund | Annual Report 2023
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
Melda Mergen, CFA, CAIA
Co-Portfolio Manager
Managed Fund since 2019
Tiffany Wade
Co-Portfolio Manager
Managed Fund since 2021
Morningstar style boxTM
The Morningstar Style Box is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2023 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
| Average annual total returns (%) (for the period ended July 31, 2023) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/01/98 | 17.10 | 13.12 | 13.87 |
| | Including sales charges | | 10.38 | 11.79 | 13.20 |
| Advisor Class | 11/08/12 | 17.39 | 13.41 | 14.16 |
| Class C | Excluding sales charges | 11/18/02 | 16.19 | 12.28 | 13.02 |
| | Including sales charges | | 15.19 | 12.28 | 13.02 |
| Class E | Excluding sales charges | 09/22/06 | 16.68 | 12.86 | 13.68 |
| | Including sales charges | | 11.42 | 11.83 | 13.16 |
| Institutional Class | 12/14/90 | 17.40 | 13.41 | 14.16 |
| Institutional 2 Class | 03/07/11 | 17.44 | 13.45 | 14.23 |
| Institutional 3 Class | 07/15/09 | 17.49 | 13.51 | 14.29 |
| Class R | 09/27/10 | 16.80 | 12.84 | 13.59 |
| Class V | Excluding sales charges | 12/14/90 | 17.11 | 13.13 | 13.86 |
| | Including sales charges | | 10.37 | 11.80 | 13.19 |
| Russell 1000 Growth Index | | 17.31 | 15.23 | 15.53 |
Returns for Class A and Class V shares are shown with and without the maximum initial sales charge of 5.75%. 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 E shares are shown with and without the maximum sales charge of 4.50%. 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 Russell 1000 Growth Index, an unmanaged index, measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Large Cap Growth Fund | Annual Report 2023
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (July 31, 2013 — July 31, 2023)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Large Cap Growth Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Portfolio breakdown (%) (at July 31, 2023) |
| Common Stocks | 98.4 |
| Exchange-Traded Equity Funds | 0.7 |
| Money Market Funds | 0.9 |
| Total | 100.0 |
Percentages indicated are based upon total investments excluding investments in derivatives, if any. The Fund’s portfolio composition is subject to change.
| Equity sector breakdown (%) (at July 31, 2023) |
| Communication Services | 9.7 |
| Consumer Discretionary | 14.2 |
| Consumer Staples | 5.2 |
| Financials | 5.7 |
| Health Care | 13.0 |
| Industrials | 5.8 |
| Information Technology | 44.0 |
| Real Estate | 2.4 |
| Total | 100.0 |
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
| Equity sub-industry breakdown (%) (at July 31, 2023) |
| Information Technology | |
| Application Software | 5.4 |
| Electronic Manufacturing Services | 1.2 |
| Semiconductors | 11.9 |
| Systems Software | 13.7 |
| Technology Hardware, Storage & Peripherals | 11.8 |
| Total | 44.0 |
Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
| 4 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended July 31, 2023, Class A shares of Columbia Large Cap Growth Fund returned 17.10% excluding sales charges. The Fund’s benchmark, the Russell 1000 Growth Index, returned 17.31% for the same time period.
Market overview
For the 12 months ended July 31, 2023, the broad U.S. equity market, as measured by the S&P 500 Index, delivered a gain of 13.02%. The period was marked by continued concerns about a future economic slowdown, amplified by a series of rate hikes by the U.S. Federal Reserve (Fed) that tapered from aggressive to more measured by period-end to tame stubborn inflation. Momentum picked up as the period progressed as better-than-feared earnings drove equity gains. The period, however, was far from smooth.
In March, the failure of a pair of U.S. banks and the collapse of European giant Credit Suisse led to fears of a financial crisis. In response, the Fed created a lending facility to support bank liquidity while the market began to price in multiple cuts in the federal funds target rate over the second half of 2023. At its March 2023 meeting the Fed raised the federal funds target rate by another quarter-point to a range of 4.75% to 5.0%. The rate hike was generally welcomed by investors as a signal that the Fed viewed the financial system as remaining on stable footing.
Inflation continued to decline as the period progressed. Through July 2023, the rate of year-over-year U.S. inflation had decelerated to 3.2%, a meaningful reduction from the four decade high of 9.1% in June 2022, though still higher than the Fed’s 2% inflation target. Nonetheless, with the economy displaying surprising resilience and employment remaining historically robust, the Fed implemented additional 25 basis point increases at its early May and late July meetings, bringing the federal funds target rate to the 5.25% to 5.50% range.
Sentiment remained quite positive through the latter months of the period, as the Fed slowed its pace of rate hikes in response to cooling inflation. Investors were further encouraged by the fact that economic growth and corporate earnings — while slowing — did not decline to the extent that the markets had anticipated in late 2022. These factors combined to fuel an impressive gain for equities, but the majority of the positive return was generated by a small group of mega-cap technology-related stocks. Much of the relative strength in this area came from companies expected to benefit from the evolution of artificial intelligence (AI). The growth style strongly outpaced value as a result, with returns of 17.31% and 8.28%, respectively, for the Russell 1000 Growth Index and the Russell 1000 Value Index. The small-cap Russell 2000 Index, which is less influenced by AI-related trends and is more sensitive to concerns about the banking sector, returned 7.91% but was unable to keep pace with the rally in large caps.
The Fund’s notable detractors during the period
| • | Stock selection within the consumer discretionary sector was the largest detractor from Fund performance during the period. |
| • | The communication services sector was also an area in which the Fund lagged the benchmark. |
| • | On a relative basis, cybersecurity software company CrowdStrike Holdings, communication equipment company Zebra Technologies Corp. and specialty coffee retailer Starbucks Corp. weighed most on Fund performance versus the benchmark. We sold the positions in CrowdStrike Holdings and Zebra Technologies. |
The Fund’s notable contributors during the period
| • | The health care, information technology and industrials sectors were the largest areas of contribution, driven by strong stock selection. |
| • | Relative to the benchmark, the Fund’s top contributors included semiconductor companies NVIDIA, Broadcom, Inc. and Advanced Micro Devices, Inc. |
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Growth securities, at times, may not perform as well as value securities or the stock market in general and may be out of favor with investors. Foreign investments subject the Fund to risks, including political, economic, market, social and others within a particular country, as well as to currency instabilities and less stringent financial and accounting standards
Columbia Large Cap Growth Fund | Annual Report 2023
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
generally applicable to U.S. issuers. The Fund may invest significantly in issuers within a particular sector, which may be negatively affected by market, economic or other conditions, making the Fund more vulnerable to unfavorable developments in the sector. 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 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 Large Cap Growth Fund | Annual Report 2023 |
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| February 1, 2023 — July 31, 2023 |
| | Account value at the
beginning of the
period ($) | 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 | 1,243.70 | 1,019.84 | 5.56 | 5.01 | 1.00 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,245.30 | 1,021.08 | 4.18 | 3.76 | 0.75 |
| Class C | 1,000.00 | 1,000.00 | 1,239.10 | 1,016.12 | 9.72 | 8.75 | 1.75 |
| Class E | 1,000.00 | 1,000.00 | 1,241.50 | 1,018.05 | 7.56 | 6.80 | 1.36 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,245.30 | 1,021.08 | 4.18 | 3.76 | 0.75 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,245.60 | 1,021.22 | 4.01 | 3.61 | 0.72 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,245.70 | 1,021.47 | 3.73 | 3.36 | 0.67 |
| Class R | 1,000.00 | 1,000.00 | 1,242.00 | 1,018.60 | 6.95 | 6.26 | 1.25 |
| Class V | 1,000.00 | 1,000.00 | 1,243.70 | 1,019.84 | 5.56 | 5.01 | 1.00 |
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 Large Cap Growth Fund | Annual Report 2023
| 7 |
Portfolio of Investments
July 31, 2023
(Percentages represent value of investments compared to net assets)
Investments in securities
| Common Stocks 99.1% |
| Issuer | Shares | Value ($) |
| Communication Services 9.6% |
| Interactive Media & Services 9.6% |
| Alphabet, Inc., Class A(a) | 1,165,845 | 154,730,949 |
| Alphabet, Inc., Class C(a) | 1,432,793 | 190,719,077 |
| Meta Platforms, Inc., Class A(a) | 325,889 | 103,828,235 |
| Total | | 449,278,261 |
| Total Communication Services | 449,278,261 |
| Consumer Discretionary 14.1% |
| Automobiles 1.9% |
| Tesla, Inc.(a) | 334,975 | 89,582,364 |
| Broadline Retail 6.4% |
| Amazon.com, Inc.(a) | 2,252,674 | 301,137,460 |
| Hotels, Restaurants & Leisure 4.2% |
| DraftKings, Inc., Class A(a) | 1,714,790 | 54,496,026 |
| Hilton Worldwide Holdings, Inc. | 425,569 | 66,171,724 |
| Starbucks Corp. | 732,630 | 74,413,229 |
| Total | | 195,080,979 |
| Textiles, Apparel & Luxury Goods 1.6% |
| NIKE, Inc., Class B | 658,732 | 72,717,426 |
| Total Consumer Discretionary | 658,518,229 |
| Consumer Staples 5.2% |
| Beverages 1.5% |
| Coca-Cola Co. (The) | 1,176,452 | 72,857,672 |
| Consumer Staples Distribution & Retail 2.3% |
| Costco Wholesale Corp. | 188,443 | 105,654,337 |
| Household Products 1.4% |
| Procter & Gamble Co. (The) | 409,431 | 63,994,065 |
| Total Consumer Staples | 242,506,074 |
| Financials 5.6% |
| Capital Markets 1.8% |
| S&P Global, Inc. | 210,474 | 83,034,098 |
| Financial Services 3.8% |
| Visa, Inc., Class A | 759,130 | 180,467,975 |
| Total Financials | 263,502,073 |
| Common Stocks (continued) |
| Issuer | Shares | Value ($) |
| Health Care 12.8% |
| Biotechnology 2.8% |
| Alnylam Pharmaceuticals, Inc.(a) | 160,825 | 31,425,205 |
| BioMarin Pharmaceutical, Inc.(a) | 250,549 | 22,030,774 |
| Exact Sciences Corp.(a) | 304,888 | 29,738,775 |
| Vertex Pharmaceuticals, Inc.(a) | 135,569 | 47,766,381 |
| Total | | 130,961,135 |
| Health Care Equipment & Supplies 4.8% |
| Boston Scientific Corp.(a) | 925,987 | 48,012,426 |
| Cooper Companies, Inc. (The) | 131,871 | 51,595,847 |
| DexCom, Inc.(a) | 432,080 | 53,819,885 |
| Intuitive Surgical, Inc.(a) | 214,390 | 69,548,116 |
| Total | | 222,976,274 |
| Health Care Providers & Services 1.1% |
| Cigna Group (The) | 180,777 | 53,347,293 |
| Pharmaceuticals 4.1% |
| Eli Lilly & Co. | 272,799 | 124,000,785 |
| Zoetis, Inc. | 366,439 | 68,923,512 |
| Total | | 192,924,297 |
| Total Health Care | 600,208,999 |
| Industrials 5.8% |
| Commercial Services & Supplies 1.2% |
| Cintas Corp. | 114,521 | 57,494,123 |
| Construction & Engineering 1.0% |
| MasTec, Inc.(a) | 396,036 | 46,633,239 |
| Electrical Equipment 2.3% |
| AMETEK, Inc. | 321,840 | 51,043,824 |
| Eaton Corp. PLC | 275,858 | 56,639,165 |
| Total | | 107,682,989 |
| Industrial Conglomerates 1.3% |
| Honeywell International, Inc. | 300,695 | 58,373,920 |
| Total Industrials | 270,184,271 |
| Information Technology 43.7% |
| Electronic Equipment, Instruments & Components 1.2% |
| TE Connectivity Ltd. | 387,193 | 55,558,324 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Common Stocks (continued) |
| Issuer | Shares | Value ($) |
| Semiconductors & Semiconductor Equipment 11.8% |
| Advanced Micro Devices, Inc.(a) | 580,473 | 66,406,111 |
| Broadcom, Inc. | 144,495 | 129,850,432 |
| NVIDIA Corp. | 581,299 | 271,635,209 |
| QUALCOMM, Inc. | 625,116 | 82,621,582 |
| Total | | 550,513,334 |
| Software 18.9% |
| Adobe, Inc.(a) | 202,505 | 110,602,156 |
| Dynatrace, Inc.(a) | 988,319 | 54,051,166 |
| Microsoft Corp. | 1,437,990 | 483,049,600 |
| Palo Alto Networks, Inc.(a) | 283,830 | 70,946,147 |
| Salesforce, Inc.(a) | 376,088 | 84,623,561 |
| ServiceNow, Inc.(a) | 140,819 | 82,097,477 |
| Total | | 885,370,107 |
| Technology Hardware, Storage & Peripherals 11.8% |
| Apple, Inc. | 2,797,039 | 549,478,312 |
| Total Information Technology | 2,040,920,077 |
| Real Estate 2.3% |
| Industrial REITs 1.0% |
| Prologis, Inc. | 387,735 | 48,369,941 |
| Common Stocks (continued) |
| Issuer | Shares | Value ($) |
| Specialized REITs 1.3% |
| Equinix, Inc. | 74,492 | 60,332,561 |
| Total Real Estate | 108,702,502 |
Total Common Stocks
(Cost $2,119,075,109) | 4,633,820,486 |
|
| Exchange-Traded Equity Funds 0.7% |
| | Shares | Value ($) |
| U.S. Large Cap 0.7% |
| Columbia Research Enhanced Core ETF(b) | 1,307,578 | 34,923,055 |
Total Exchange-Traded Equity Funds
(Cost $32,972,097) | 34,923,055 |
|
| Money Market Funds 0.9% |
| | |
| Columbia Short-Term Cash Fund, 5.408%(b),(c) | 41,604,588 | 41,587,945 |
Total Money Market Funds
(Cost $41,591,820) | 41,587,945 |
Total Investments in Securities
(Cost: $2,193,639,026) | 4,710,331,486 |
| Other Assets & Liabilities, Net | | (33,685,005) |
| Net Assets | 4,676,646,481 |
Notes to Portfolio of Investments
| (a) | Non-income producing investment. |
| (b) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the year ended July 31, 2023 are as follows: |
| Affiliated issuers | Beginning
of period($) | Purchases($) | Sales($) | Net change in
unrealized
appreciation
(depreciation)($) | End of
period($) | Realized gain
(loss)($) | Dividends($) | End of
period shares |
| Columbia Research Enhanced Core ETF |
| | — | 98,595,542 | (65,623,445) | 1,950,958 | 34,923,055 | 1,360,966 | — | 1,307,578 |
| Columbia Short-Term Cash Fund, 5.408% |
| | 142,242,537 | 558,833,855 | (659,481,093) | (7,354) | 41,587,945 | 6,473 | 2,050,295 | 41,604,588 |
| Total | 142,242,537 | | | 1,943,604 | 76,511,000 | 1,367,439 | 2,050,295 | |
| (c) | The rate shown is the seven-day current annualized yield at July 31, 2023. |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Annual Report 2023
| 9 |
Portfolio of Investments (continued)
July 31, 2023
Fair value measurements (continued)
pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The Fund’s Board of Trustees (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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. Representatives of Columbia Management Investment Advisers, LLC report to 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 July 31, 2023:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Common Stocks | | | | |
| Communication Services | 449,278,261 | — | — | 449,278,261 |
| Consumer Discretionary | 658,518,229 | — | — | 658,518,229 |
| Consumer Staples | 242,506,074 | — | — | 242,506,074 |
| Financials | 263,502,073 | — | — | 263,502,073 |
| Health Care | 600,208,999 | — | — | 600,208,999 |
| Industrials | 270,184,271 | — | — | 270,184,271 |
| Information Technology | 2,040,920,077 | — | — | 2,040,920,077 |
| Real Estate | 108,702,502 | — | — | 108,702,502 |
| Total Common Stocks | 4,633,820,486 | — | — | 4,633,820,486 |
| Exchange-Traded Equity Funds | 34,923,055 | — | �� | 34,923,055 |
| Money Market Funds | 41,587,945 | — | — | 41,587,945 |
| Total Investments in Securities | 4,710,331,486 | — | — | 4,710,331,486 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Statement of Assets and Liabilities
July 31, 2023
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $2,119,075,109) | $4,633,820,486 |
| Affiliated issuers (cost $74,563,917) | 76,511,000 |
| Receivable for: | |
| Capital shares sold | 751,441 |
| Dividends | 638,271 |
| Trustees’ fees | 409,064 |
| Expense reimbursement due from Investment Manager | 431 |
| Prepaid expenses | 45,968 |
| Total assets | 4,712,176,661 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 29,810,617 |
| Capital shares redeemed | 4,600,085 |
| Management services fees | 247,824 |
| Distribution and/or service fees | 58,582 |
| Transfer agent fees | 242,521 |
| Trustees’ fees | 481,964 |
| Other expenses | 88,587 |
| Total liabilities | 35,530,180 |
| Net assets applicable to outstanding capital stock | $4,676,646,481 |
| Represented by | |
| Paid in capital | 1,970,323,163 |
| Total distributable earnings (loss) | 2,706,323,318 |
| Total - representing net assets applicable to outstanding capital stock | $4,676,646,481 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Annual Report 2023
| 11 |
Statement of Assets and Liabilities (continued)
July 31, 2023
| Class A | |
| Net assets | $2,388,322,372 |
| Shares outstanding | 42,854,775 |
| Net asset value per share | $55.73 |
| Maximum sales charge | 5.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $59.13 |
| Advisor Class | |
| Net assets | $21,306,849 |
| Shares outstanding | 347,706 |
| Net asset value per share | $61.28 |
| Class C | |
| Net assets | $41,295,600 |
| Shares outstanding | 1,006,048 |
| Net asset value per share | $41.05 |
| Class E | |
| Net assets | $15,437,152 |
| Shares outstanding | 281,431 |
| Net asset value per share | $54.85 |
| Maximum sales charge | 4.50% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class E shares) | $57.43 |
| Institutional Class | |
| Net assets | $1,184,524,732 |
| Shares outstanding | 19,925,222 |
| Net asset value per share | $59.45 |
| Institutional 2 Class | |
| Net assets | $24,642,208 |
| Shares outstanding | 413,482 |
| Net asset value per share | $59.60 |
| Institutional 3 Class | |
| Net assets | $732,642,730 |
| Shares outstanding | 12,224,717 |
| Net asset value per share | $59.93 |
| Class R | |
| Net assets | $9,149,659 |
| Shares outstanding | 168,028 |
| Net asset value per share | $54.45 |
| Class V | |
| Net assets | $259,325,179 |
| Shares outstanding | 4,713,659 |
| Net asset value per share | $55.02 |
| Maximum sales charge | 5.75% |
| 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) | $58.38 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Statement of Operations
Year Ended July 31, 2023
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $35,233,732 |
| Dividends — affiliated issuers | 2,050,295 |
| Interfund lending | 330 |
| Total income | 37,284,357 |
| Expenses: | |
| Management services fees | 26,682,461 |
| Distribution and/or service fees | |
| Class A | 5,171,012 |
| Class C | 383,729 |
| Class E | 47,544 |
| Class R | 37,717 |
| Class V | 564,491 |
| Transfer agent fees | |
| Class A | 1,793,964 |
| Advisor Class | 15,316 |
| Class C | 33,327 |
| Class E | 47,831 |
| Institutional Class | 875,097 |
| Institutional 2 Class | 22,384 |
| Institutional 3 Class | 40,276 |
| Class R | 6,538 |
| Class V | 195,859 |
| Trustees’ fees | 89,573 |
| Custodian fees | 21,756 |
| Printing and postage fees | 173,902 |
| Registration fees | 179,832 |
| Accounting services fees | 30,767 |
| Legal fees | 67,795 |
| Interest on collateral | 461 |
| Compensation of chief compliance officer | 735 |
| Other | 75,229 |
| Total expenses | 36,557,596 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (14,185) |
| Expense reduction | (13,051) |
| Total net expenses | 36,530,360 |
| Net investment income | 753,997 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 252,201,197 |
| Investments — affiliated issuers | 1,367,439 |
| Futures contracts | (4,124,735) |
| Net realized gain | 249,443,901 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 421,038,707 |
| Investments — affiliated issuers | 1,943,604 |
| Futures contracts | (477,343) |
| Net change in unrealized appreciation (depreciation) | 422,504,968 |
| Net realized and unrealized gain | 671,948,869 |
| Net increase in net assets resulting from operations | $672,702,866 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Annual Report 2023
| 13 |
Statement of Changes in Net Assets
| | Year Ended
July 31, 2023 | Year Ended
July 31, 2022 |
| Operations | | |
| Net investment income (loss) | $753,997 | $(6,466,756) |
| Net realized gain | 249,443,901 | 107,715,703 |
| Net change in unrealized appreciation (depreciation) | 422,504,968 | (1,032,070,931) |
| Net increase (decrease) in net assets resulting from operations | 672,702,866 | (930,821,984) |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | — | (244,133,175) |
| Advisor Class | — | (2,720,087) |
| Class C | — | (7,868,155) |
| Class E | — | (1,646,962) |
| Institutional Class | — | (112,671,169) |
| Institutional 2 Class | — | (8,905,905) |
| Institutional 3 Class | — | (69,227,245) |
| Class R | — | (875,965) |
| Class V | — | (26,358,603) |
| Total distributions to shareholders | — | (474,407,266) |
| Increase (decrease) in net assets from capital stock activity | (379,442,068) | 99,431,405 |
| Total increase (decrease) in net assets | 293,260,798 | (1,305,797,845) |
| Net assets at beginning of year | 4,383,385,683 | 5,689,183,528 |
| Net assets at end of year | $4,676,646,481 | $4,383,385,683 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | July 31, 2023 | July 31, 2022 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Shares sold | 1,043,577 | 48,801,417 | 1,281,703 | 71,064,106 |
| Distributions reinvested | — | — | 3,855,701 | 235,930,336 |
| Shares redeemed | (4,481,192) | (205,610,201) | (5,133,783) | (283,380,156) |
| Net increase (decrease) | (3,437,615) | (156,808,784) | 3,621 | 23,614,286 |
| Advisor Class | | | | |
| Shares sold | 91,419 | 4,740,266 | 275,762 | 18,054,519 |
| Distributions reinvested | — | — | 37,295 | 2,498,765 |
| Shares redeemed | (80,941) | (4,242,183) | (280,142) | (16,225,069) |
| Net increase | 10,478 | 498,083 | 32,915 | 4,328,215 |
| Class C | | | | |
| Shares sold | 222,901 | 7,487,054 | 183,635 | 7,860,947 |
| Distributions reinvested | — | — | 168,255 | 7,677,476 |
| Shares redeemed | (471,316) | (15,821,810) | (805,442) | (33,037,725) |
| Net decrease | (248,415) | (8,334,756) | (453,552) | (17,499,302) |
| Class E | | | | |
| Shares sold | 608 | 28,534 | 2,538 | 138,782 |
| Distributions reinvested | — | — | 27,191 | 1,646,962 |
| Shares redeemed | (38,732) | (1,731,406) | (38,887) | (2,152,800) |
| Net decrease | (38,124) | (1,702,872) | (9,158) | (367,056) |
| Institutional Class | | | | |
| Shares sold | 1,521,236 | 75,716,994 | 1,424,087 | 84,807,393 |
| Distributions reinvested | — | — | 1,613,140 | 104,854,093 |
| Shares redeemed | (2,664,295) | (128,869,590) | (2,479,529) | (144,313,236) |
| Net increase (decrease) | (1,143,059) | (53,152,596) | 557,698 | 45,348,250 |
| Institutional 2 Class | | | | |
| Shares sold | 165,064 | 7,982,548 | 248,736 | 15,191,996 |
| Distributions reinvested | — | — | 136,672 | 8,901,412 |
| Shares redeemed | (1,403,540) | (63,158,189) | (359,667) | (21,334,730) |
| Net increase (decrease) | (1,238,476) | (55,175,641) | 25,741 | 2,758,678 |
| Institutional 3 Class | | | | |
| Shares sold | 1,453,714 | 71,332,532 | 1,793,471 | 99,804,051 |
| Distributions reinvested | — | — | 754,572 | 49,379,219 |
| Shares redeemed | (3,037,886) | (157,733,858) | (1,880,381) | (116,684,279) |
| Net increase (decrease) | (1,584,172) | (86,401,326) | 667,662 | 32,498,991 |
| Class R | | | | |
| Shares sold | 48,704 | 2,178,640 | 36,034 | 2,024,734 |
| Distributions reinvested | — | — | 13,640 | 818,807 |
| Shares redeemed | (53,210) | (2,320,966) | (43,786) | (2,446,653) |
| Net increase (decrease) | (4,506) | (142,326) | 5,888 | 396,888 |
| Class V | | | | |
| Shares sold | 21,576 | 970,980 | 112,136 | 6,547,297 |
| Distributions reinvested | — | — | 325,429 | 19,655,902 |
| Shares redeemed | (419,742) | (19,192,830) | (320,901) | (17,850,744) |
| Net increase (decrease) | (398,166) | (18,221,850) | 116,664 | 8,352,455 |
| Total net increase (decrease) | (8,082,055) | (379,442,068) | 947,479 | 99,431,405 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Annual Report 2023
| 15 |
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 ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income
(loss) | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Class A |
| Year Ended 7/31/2023 | $47.59 | (0.04) | 8.18 | 8.14 | — | — | — |
| Year Ended 7/31/2022 | $62.66 | (0.13) | (9.54) | (9.67) | — | (5.40) | (5.40) |
| Year Ended 7/31/2021 | $50.90 | (0.11) | 18.52 | 18.41 | (0.07) | (6.58) | (6.65) |
| Year Ended 7/31/2020 | $43.43 | (0.01) | 11.15 | 11.14 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.86 | (0.04) | 2.98 | 2.94 | — | (3.37) | (3.37) |
| Advisor Class |
| Year Ended 7/31/2023 | $52.20 | 0.08 | 9.00 | 9.08 | — | — | — |
| Year Ended 7/31/2022 | $68.22 | 0.03 | (10.50) | (10.47) | — | (5.55) | (5.55) |
| Year Ended 7/31/2021 | $54.87 | 0.02 | 20.10 | 20.12 | (0.19) | (6.58) | (6.77) |
| Year Ended 7/31/2020 | $46.43 | 0.10 | 12.01 | 12.11 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $46.53 | 0.07 | 3.20 | 3.27 | — | (3.37) | (3.37) |
| Class C |
| Year Ended 7/31/2023 | $35.33 | (0.29) | 6.01 | 5.72 | — | — | — |
| Year Ended 7/31/2022 | $47.73 | (0.41) | (7.05) | (7.46) | — | (4.94) | (4.94) |
| Year Ended 7/31/2021 | $40.39 | (0.39) | 14.31 | 13.92 | — | (6.58) | (6.58) |
| Year Ended 7/31/2020 | $35.43 | (0.27) | 8.90 | 8.63 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $36.70 | (0.29) | 2.39 | 2.10 | — | (3.37) | (3.37) |
| Class E |
| Year Ended 7/31/2023 | $47.01 | (0.21) | 8.05 | 7.84 | — | — | — |
| Year Ended 7/31/2022 | $61.99 | (0.29) | (9.46) | (9.75) | — | (5.23) | (5.23) |
| Year Ended 7/31/2021 | $50.50 | (0.26) | 18.35 | 18.09 | (0.02) | (6.58) | (6.60) |
| Year Ended 7/31/2020 | $43.15 | (0.06) | 11.08 | 11.02 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.65 | (0.08) | 2.95 | 2.87 | — | (3.37) | (3.37) |
| Institutional Class |
| Year Ended 7/31/2023 | $50.64 | 0.08 | 8.73 | 8.81 | — | — | — |
| Year Ended 7/31/2022 | $66.34 | 0.01 | (10.16) | (10.15) | — | (5.55) | (5.55) |
| Year Ended 7/31/2021 | $53.52 | 0.03 | 19.56 | 19.59 | (0.19) | (6.58) | (6.77) |
| Year Ended 7/31/2020 | $45.38 | 0.10 | 11.71 | 11.81 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $45.56 | 0.06 | 3.13 | 3.19 | — | (3.37) | (3.37) |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $50.75 | 0.17 | 8.68 | 8.85 | — | — | — |
| Year Ended 7/31/2022 | $66.47 | 0.02 | (10.18) | (10.16) | — | (5.56) | (5.56) |
| Year Ended 7/31/2021 | $53.62 | (0.00)(e) | 19.64 | 19.64 | (0.21) | (6.58) | (6.79) |
| Year Ended 7/31/2020 | $45.44 | 0.12 | 11.73 | 11.85 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $45.59 | 0.09 | 3.13 | 3.22 | — | (3.37) | (3.37) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income (loss)
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Class A |
| Year Ended 7/31/2023 | $55.73 | 17.10% | 1.00%(c) | 1.00%(c),(d) | (0.10%) | 45% | $2,388,322 |
| Year Ended 7/31/2022 | $47.59 | (17.35%) | 0.98%(c) | 0.98%(c) | (0.23%) | 46% | $2,203,137 |
| Year Ended 7/31/2021 | $62.66 | 39.24% | 0.99%(c) | 0.99%(c),(d) | (0.21%) | 52% | $2,900,684 |
| Year Ended 7/31/2020 | $50.90 | 27.48% | 1.02% | 1.02%(d) | (0.03%) | 46% | $2,249,478 |
| Year Ended 7/31/2019 | $43.43 | 7.84% | 1.04% | 1.04% | (0.10%) | 35% | $1,932,367 |
| Advisor Class |
| Year Ended 7/31/2023 | $61.28 | 17.39% | 0.75%(c) | 0.75%(c),(d) | 0.15% | 45% | $21,307 |
| Year Ended 7/31/2022 | $52.20 | (17.15%) | 0.73%(c) | 0.73%(c) | 0.05% | 46% | $17,603 |
| Year Ended 7/31/2021 | $68.22 | 39.60% | 0.74%(c) | 0.74%(c),(d) | 0.03% | 52% | $20,760 |
| Year Ended 7/31/2020 | $54.87 | 27.81% | 0.77% | 0.77%(d) | 0.21% | 46% | $11,934 |
| Year Ended 7/31/2019 | $46.43 | 8.11% | 0.79% | 0.79% | 0.15% | 35% | $12,088 |
| Class C |
| Year Ended 7/31/2023 | $41.05 | 16.19% | 1.75%(c) | 1.75%(c),(d) | (0.83%) | 45% | $41,296 |
| Year Ended 7/31/2022 | $35.33 | (17.96%) | 1.73%(c) | 1.73%(c) | (0.96%) | 46% | $44,314 |
| Year Ended 7/31/2021 | $47.73 | 38.22% | 1.74%(c) | 1.74%(c),(d) | (0.93%) | 52% | $81,519 |
| Year Ended 7/31/2020 | $40.39 | 26.54% | 1.77% | 1.77%(d) | (0.78%) | 46% | $86,411 |
| Year Ended 7/31/2019 | $35.43 | 7.03% | 1.79% | 1.79% | (0.86%) | 35% | $78,293 |
| Class E |
| Year Ended 7/31/2023 | $54.85 | 16.68% | 1.37%(c) | 1.36%(c),(d) | (0.45%) | 45% | $15,437 |
| Year Ended 7/31/2022 | $47.01 | (17.61%) | 1.28%(c) | 1.28%(c) | (0.53%) | 46% | $15,022 |
| Year Ended 7/31/2021 | $61.99 | 38.87% | 1.27%(c) | 1.26%(c),(d) | (0.48%) | 52% | $20,376 |
| Year Ended 7/31/2020 | $50.50 | 27.37% | 1.12% | 1.12%(d) | (0.13%) | 46% | $17,216 |
| Year Ended 7/31/2019 | $43.15 | 7.71% | 1.14% | 1.14% | (0.20%) | 35% | $15,875 |
| Institutional Class |
| Year Ended 7/31/2023 | $59.45 | 17.40% | 0.75%(c) | 0.75%(c),(d) | 0.15% | 45% | $1,184,525 |
| Year Ended 7/31/2022 | $50.64 | (17.15%) | 0.73%(c) | 0.73%(c) | 0.02% | 46% | $1,066,894 |
| Year Ended 7/31/2021 | $66.34 | 39.61% | 0.74%(c) | 0.74%(c),(d) | 0.04% | 52% | $1,360,640 |
| Year Ended 7/31/2020 | $53.52 | 27.79% | 0.77% | 0.77%(d) | 0.22% | 46% | $1,062,936 |
| Year Ended 7/31/2019 | $45.38 | 8.11% | 0.79% | 0.79% | 0.15% | 35% | $975,664 |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $59.60 | 17.44% | 0.72%(c) | 0.72%(c) | 0.35% | 45% | $24,642 |
| Year Ended 7/31/2022 | $50.75 | (17.13%) | 0.71%(c) | 0.71%(c) | 0.04% | 46% | $83,838 |
| Year Ended 7/31/2021 | $66.47 | 39.63% | 0.72%(c) | 0.72%(c) | (0.00%)(e) | 52% | $108,093 |
| Year Ended 7/31/2020 | $53.62 | 27.84% | 0.73% | 0.73% | 0.26% | 46% | $17,929 |
| Year Ended 7/31/2019 | $45.44 | 8.17% | 0.74% | 0.74% | 0.20% | 35% | $13,783 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Annual Report 2023
| 17 |
Financial Highlights (continued)
| | Net asset value,
beginning of
period | Net
investment
income
(loss) | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
| Institutional 3 Class |
| Year Ended 7/31/2023 | $51.01 | 0.12 | 8.80 | 8.92 | — | — | — |
| Year Ended 7/31/2022 | $66.78 | 0.05 | (10.23) | (10.18) | — | (5.59) | (5.59) |
| Year Ended 7/31/2021 | $53.84 | 0.05 | 19.70 | 19.75 | (0.23) | (6.58) | (6.81) |
| Year Ended 7/31/2020 | $45.59 | 0.14 | 11.78 | 11.92 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $45.70 | 0.11 | 3.15 | 3.26 | — | (3.37) | (3.37) |
| Class R |
| Year Ended 7/31/2023 | $46.62 | (0.16) | 7.99 | 7.83 | — | — | — |
| Year Ended 7/31/2022 | $61.49 | (0.26) | (9.36) | (9.62) | — | (5.25) | (5.25) |
| Year Ended 7/31/2021 | $50.11 | (0.23) | 18.19 | 17.96 | — | (6.58) | (6.58) |
| Year Ended 7/31/2020 | $42.92 | (0.12) | 10.98 | 10.86 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.49 | (0.14) | 2.94 | 2.80 | — | (3.37) | (3.37) |
| Class V |
| Year Ended 7/31/2023 | $46.98 | (0.04) | 8.08 | 8.04 | — | — | — |
| Year Ended 7/31/2022 | $61.93 | (0.13) | (9.42) | (9.55) | — | (5.40) | (5.40) |
| Year Ended 7/31/2021 | $50.37 | (0.11) | 18.32 | 18.21 | (0.07) | (6.58) | (6.65) |
| Year Ended 7/31/2020 | $43.01 | (0.01) | 11.04 | 11.03 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.47 | (0.04) | 2.95 | 2.91 | — | (3.37) | (3.37) |
| 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) | Ratios include interest on collateral expense which is less than 0.01%. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Rounds to zero. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Financial Highlights (continued)
| | Net
asset
value,
end of
period | Total
return | Total gross
expense
ratio to
average
net assets(a) | Total net
expense
ratio to
average
net assets(a),(b) | Net investment
income (loss)
ratio to
average
net assets | Portfolio
turnover | Net
assets,
end of
period
(000’s) |
| Institutional 3 Class |
| Year Ended 7/31/2023 | $59.93 | 17.49% | 0.67%(c) | 0.67%(c) | 0.24% | 45% | $732,643 |
| Year Ended 7/31/2022 | $51.01 | (17.09%) | 0.66%(c) | 0.66%(c) | 0.09% | 46% | $704,377 |
| Year Ended 7/31/2021 | $66.78 | 39.70% | 0.66%(c) | 0.66%(c) | 0.09% | 52% | $877,535 |
| Year Ended 7/31/2020 | $53.84 | 27.91% | 0.68% | 0.68% | 0.31% | 46% | $526,471 |
| Year Ended 7/31/2019 | $45.59 | 8.24% | 0.69% | 0.69% | 0.26% | 35% | $394,049 |
| Class R |
| Year Ended 7/31/2023 | $54.45 | 16.80% | 1.25%(c) | 1.25%(c),(d) | (0.34%) | 45% | $9,150 |
| Year Ended 7/31/2022 | $46.62 | (17.56%) | 1.23%(c) | 1.23%(c) | (0.48%) | 46% | $8,043 |
| Year Ended 7/31/2021 | $61.49 | 38.92% | 1.24%(c) | 1.24%(c),(d) | (0.44%) | 52% | $10,247 |
| Year Ended 7/31/2020 | $50.11 | 27.14% | 1.27% | 1.27%(d) | (0.28%) | 46% | $11,856 |
| Year Ended 7/31/2019 | $42.92 | 7.57% | 1.29% | 1.29% | (0.35%) | 35% | $13,233 |
| Class V |
| Year Ended 7/31/2023 | $55.02 | 17.11% | 1.00%(c) | 1.00%(c),(d) | (0.09%) | 45% | $259,325 |
| Year Ended 7/31/2022 | $46.98 | (17.36%) | 0.98%(c) | 0.98%(c) | (0.23%) | 46% | $240,158 |
| Year Ended 7/31/2021 | $61.93 | 39.26% | 0.99%(c) | 0.99%(c),(d) | (0.21%) | 52% | $309,330 |
| Year Ended 7/31/2020 | $50.37 | 27.49% | 1.02% | 1.02%(d) | (0.03%) | 46% | $241,606 |
| Year Ended 7/31/2019 | $43.01 | 7.84% | 1.04% | 1.04% | (0.11%) | 35% | $205,528 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Annual Report 2023
| 19 |
Notes to Financial Statements
July 31, 2023
Note 1. Organization
Columbia Large Cap Growth Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class, Institutional 3 Class and Class R 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. Class E shares are trust shares which are held in an irrevocable trust until the specified trust termination date and are closed to new investors and new accounts. 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
Equity securities listed on an exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are valued based on the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available, the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange. Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy approved by the Board of Trustees. Under the policy, the Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the
| 20 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
close of the foreign exchange or market, to determine a good faith estimate that reasonably reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment companies (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 the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if available.
The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, failure of the clearinghouse or CCP may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments’
Columbia Large Cap Growth Fund | Annual Report 2023
| 21 |
Notes to Financial Statements (continued)
July 31, 2023
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 or receive interest income on cash collateral pledged to the broker. 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 maintain appropriate equity market exposure while keeping sufficient cash to accommodate daily redemptions. 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.
| 22 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 July 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Equity risk | (4,124,735) |
| |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Equity risk | (477,343) |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended July 31, 2023:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — long | 12,633,772 |
| * | Based on the ending daily outstanding amounts for the year ended July 31, 2023. |
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of an ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts (REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported. Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a proportionate change in return of capital to shareholders.
Awards from class action litigation are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as realized gains.
Expenses
General expenses of the Trust are allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Columbia Large Cap Growth Fund | Annual Report 2023
| 23 |
Notes to Financial Statements (continued)
July 31, 2023
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 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 and paid annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncement
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will, among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month transition period after the effective date of the amendments.
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 0.77% to 0.57% as the Fund’s net assets increase. The effective management services fee rate for the year ended July 31, 2023 was 0.65% of the Fund’s average daily net assets.
The Investment Manager has contractually agreed to implement a waiver with respect to Fund assets invested in funds that pay a management or advisory fee to the Investment Manager or its affiliate (underlying affiliated funds). Under this arrangement, the Investment Manager waives its net management fee (management fee less reimbursements/waivers) with respect to the Fund in an amount equal to the net management or advisory fee (fee less reimbursement/waivers) payable by an underlying affiliated fund on the assets invested by the Fund in the underlying affiliated fund.
| 24 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. Prior to January 1, 2023, SS&C GIDS was known as DST Asset Manager Solutions, Inc. The Transfer Agent pays the fees of SS&C GIDS for services as sub-transfer agent and SS&C GIDS 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 July 31, 2023, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.09 |
| Advisor Class | 0.09 |
| Class C | 0.09 |
| Class E | 0.35 |
| Institutional Class | 0.09 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class R | 0.09 |
| Class V | 0.09 |
Columbia Large Cap Growth Fund | Annual Report 2023
| 25 |
Notes to Financial Statements (continued)
July 31, 2023
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 July 31, 2023, these minimum account balance fees reduced total expenses of the Fund by $13,051.
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, Class C and Class E shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rates of 0.10%, 0.75%, 0.10% and 0.50% of the average daily net assets attributable to Class A, Class C, Class E and Class R shares of the Fund, respectively.
Although the Fund may pay distribution and service fees up to a maximum annual rate of 0.35% of the Fund’s average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for shareholder services), the Fund currently limits such fees to an aggregate fee of not more than 0.25% of the Fund’s average daily net assets attributable to Class A shares.
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 0.50% of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.25% for shareholder services and up to 0.25% for administrative support services). These fees are currently limited to an aggregate annual rate of not more than 0.25% 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 July 31, 2023, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 5.75 | 0.50 -���1.00(a) | 461,086 |
| Class C | — | 1.00(b) | 2,246 |
| Class E | 4.50 | 1.00(b) | 488 |
| Class V | 5.75 | 0.50 - 1.00(a) | 1,390 |
| (a) | 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. |
| (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.
| 26 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 1, 2022
through
November 30, 2023 | Prior to
December 1, 2022 |
| Class A | 1.09% | 1.10% |
| Advisor Class | 0.84 | 0.85 |
| Class C | 1.84 | 1.85 |
| Class E | 1.44 | 1.36 |
| Institutional Class | 0.84 | 0.85 |
| Institutional 2 Class | 0.81 | 0.83 |
| Institutional 3 Class | 0.76 | 0.79 |
| Class R | 1.34 | 1.35 |
| Class V | 1.09 | 1.10 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At July 31, 2023, these differences were primarily due to differing treatment for deferral/reversal of wash sale losses, late-year ordinary losses, trustees’ deferred compensation and net operating loss reclassification. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Excess of distributions
over net investment
income ($) | Accumulated
net realized
gain ($) | Paid in
capital ($) |
| 1,863,312 | — | (1,863,312) |
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 Large Cap Growth Fund | Annual Report 2023
| 27 |
Notes to Financial Statements (continued)
July 31, 2023
The tax character of distributions paid during the years indicated was as follows:
| Year Ended July 31, 2023 | Year Ended July 31, 2022 |
Ordinary
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Long-term
capital gains ($) | Total ($) |
| — | — | — | 134,078,907 | 340,328,359 | 474,407,266 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
appreciation ($) |
| — | 201,293,795 | — | 2,509,384,580 |
At July 31, 2023, 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) ($) | Net unrealized
appreciation ($) |
| 2,200,946,906 | 2,543,271,504 | (33,886,924) | 2,509,384,580 |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year. As of July 31, 2023, the Fund will elect to treat the following late-year ordinary losses and post-October capital losses as arising on August 1, 2023.
Late year
ordinary losses ($) | Post-October
capital losses ($) |
| 3,875,421 | — |
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 $1,834,955,214 and $2,084,143,890, respectively, for the year ended July 31, 2023. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money market fund
The Fund invests in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
| 28 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Note 7. 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’s activity in the Interfund Program during the year ended July 31, 2023 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Lender | 750,000 | 3.35 | 4 |
Interest income earned by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at July 31, 2023.
Note 8. 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 27, 2022 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% 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 27, 2022 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 secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during the year ended July 31, 2023.
Note 9. Significant risks
Information technology sector risk
The Fund is more susceptible to the particular risks that may affect companies in the information technology sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the information technology sector are subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected by factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies’ securities historically have been more volatile than other
Columbia Large Cap Growth Fund | Annual Report 2023
| 29 |
Notes to Financial Statements (continued)
July 31, 2023
securities, especially over the short term. Some companies in the information technology sector are facing increased government and regulatory scrutiny and may be subject to adverse government or regulatory action, which could negatively impact the value of their securities.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter-measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Shareholder concentration risk
At July 31, 2023, affiliated shareholders of record owned 45.0% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 10. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
| 30 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 provide services to the Fund.
Columbia Large Cap Growth Fund | Annual Report 2023
| 31 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Large Cap Growth Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Large Cap Growth Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of July 31, 2023, the related statement of operations for the year ended July 31, 2023, the statement of changes in net assets for each of the two years in the period ended July 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2023 (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 July 31, 2023, 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 July 31, 2023 and the financial highlights for each of the five years in the period ended July 31, 2023 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 July 31, 2023 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 21, 2023
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
| 32 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2023. Shareholders will be notified in early 2024 of the amounts for use in preparing 2023 income tax returns.
Capital
gain
dividend | |
| $211,358,485 | |
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.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 173 | 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; former Board Member, Chase Bank International, 1993-1994 |
Columbia Large Cap Growth Fund | Annual Report 2023
| 33 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
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-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 173 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Richard M. Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Chair since 2023; Trustee since 2007 | President, Springboard – Partners in Cross Cultural Leadership (consulting company), since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 173 | Trustee, New York Presbyterian Hospital Board, since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee), since 2019; Director, Apollo Commercial Real Estate Finance, Inc. (Chair, Nominating and Governance Committee) (financial services), since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 173 | Director, EQT Corporation (natural gas producer), since 2019; former Director, Whiting Petroleum Corporation (independent oil and gas company), 2020-2022 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | CEO and President, RhodeWay Financial (non-profit financial planning firm), since December 2022; Member, FINRA National Adjudicatory Council, since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 171 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios (former mutual fund complex), January 2015-December 2017 |
| 34 | Columbia Large Cap Growth Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm), since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform), since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 171 | Treasurer, Edinburgh University US Trust Board, since January 2023; Member, HBS Community Action Partners Board, since September 2022; former Director, University of Edinburgh Business School (Member of US Board), 2004-2019; former Director, Boston Public Library Foundation, 2008-2017 |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Professor of Economics and Management, Bentley University, since 2002; Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 173 | Former Trustee, MA Taxpayers Foundation, 1997-2022; former Director, The MA Business Roundtable, 2003-2019; former Chairperson, Innovation Index Advisory Committee, MA Technology Collaborative, 1997-2020 |
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 | 173 | Trustee, Catholic Schools Foundation, since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Trustee since 1996 | 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 | 173 | Director, SpartanNash Company since November 2013 (Chair of the Board, since May 2021) (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing), since August 2006; 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 | 171 | None |
Columbia Large Cap Growth Fund | Annual Report 2023
| 35 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; former Chief Executive Officer of Freddie Mac and Chief Financial Officer of U.S. Bank | 171 | Director, CSX Corporation (transportation suppliers); 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; former Senior Adviser to The Carlyle Group (financial services), March 2008-September 2008; former Governance Consultant to Bridgewater Associates, January 2013-December 2015 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2004 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company), since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 173 | Director, Valmont Industries, Inc. (irrigation systems manufacturer), since 2012; Trustee, Carleton College (on the Investment Committee), since 1987; Trustee, Carnegie Endowment for International Peace (on the Investment Committee), since 2009 |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2022; Advisor, Paradigm Asset Management, November 2016-January 2022; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 171 | Independent Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2010-2021; Independent Director, (Executive Committee and Chair, Audit Committee), Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2016; Independent Director, (Investment Committee), Sarona Asset Management, since 2019 |
| 36 | Columbia Large Cap Growth Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 173 | Former Director, NAPE (National Alliance for Partnerships in Equity) Education Foundation, October 2016-October 2020; Advisory Board, Jennersville YMCA, since 2022 |
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 and
other relevant Board experience |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC, since April 2015; President and Principal Executive Officer of the Columbia Funds, since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 173 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since, January 2022; Director, Columbia Threadneedle Canada, Inc., since December 2022 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Funds Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Carrig, Flynn, Paglia, and Yeager serve as directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| ** | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
Columbia Large Cap Growth Fund | Annual Report 2023
| 37 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and North America Head of Operations & Investor Services, Columbia Management Investment Advisers, LLC, since June 2023 (previously Senior Vice President and Head of Global Operations, March 2022 – June 2023, Vice President, Head of North America Operations, and Co-Head of Global Operations, June 2019 - February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds, since 2002. Director, Ameriprise Trust Company, since June 2023. |
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. |
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. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001 - January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc., since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC, since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc., since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl, since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc., since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); formerly, 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; formerly, Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds, since 2005. |
| 38 | Columbia Large Cap Growth Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC, since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5903 Ameriprise Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | Vice President, Global Investment Operations Services, Columbia Management Investment Advisers, LLC, since 2010; Director (since January 2007) and President (since October 2014), Columbia Management Investment Services Corp.; Director (since December 2017) and President (since January 2017), Ameriprise Trust Company. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2022 through December 31, 2022, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Columbia Large Cap Growth Fund | Annual Report 2023
| 39 |
Approval of Management Agreement
(Unaudited)
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 Large Cap Growth 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 (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) 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 (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 22, 2023 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 one or more 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; |
| • | 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). |
| 40 | Columbia Large Cap Growth Fund | Annual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
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. 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.
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 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. 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 were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
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.
Investment performance
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 Fund’s performance relative to peers and benchmarks and (iii) 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
Columbia Large Cap Growth Fund | Annual Report 2023
| 41 |
Approval of Management Agreement (continued)
(Unaudited)
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 the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. 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.
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, 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 22, 2023, 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.
| 42 | Columbia Large Cap Growth Fund | Annual Report 2023 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Large Cap Growth 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.
© 2023 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
July 31, 2023
Columbia Oregon Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Oregon 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, is available on columbiathreadneedleus.com/investor/ or 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 Oregon Intermediate Municipal Bond Fund | Annual Report 2023
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks a high level of income exempt from federal and Oregon income tax by investing at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities issued by the State of Oregon (and its political subdivisions, agencies, authorities and instrumentalities).
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2016
Douglas Rangel, CFA
Portfolio Manager
Managed Fund since 2022
| Average annual total returns (%) (for the period ended July 31, 2023) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/01/02 | 0.08 | 1.13 | 1.76 |
| | Including sales charges | | -2.90 | 0.51 | 1.45 |
| Advisor Class | 03/19/13 | 0.25 | 1.39 | 2.02 |
| Class C | Excluding sales charges | 10/13/03 | -0.37 | 0.68 | 1.30 |
| | Including sales charges | | -1.35 | 0.68 | 1.30 |
| Institutional Class | 07/02/84 | 0.33 | 1.38 | 2.01 |
| Institutional 2 Class | 11/08/12 | 0.35 | 1.41 | 2.04 |
| Institutional 3 Class* | 03/01/17 | 0.33 | 1.47 | 2.05 |
| Bloomberg 3-15 Year Blend Municipal Bond Index | | 0.96 | 1.92 | 2.55 |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
| * | The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products /mutual-funds/appended-performance for more information. |
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (July 31, 2013 — July 31, 2023)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Oregon Intermediate Municipal Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at July 31, 2023) |
| AAA rating | 6.2 |
| AA rating | 71.5 |
| A rating | 14.7 |
| BBB rating | 1.6 |
| BB rating | 0.9 |
| Not rated | 5.1 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended July 31, 2023, Class A shares of Columbia Oregon Intermediate Municipal Bond Fund returned 0.08% excluding sales charges. Institutional Class shares of the Fund returned 0.33%. The Fund’s benchmark, the Bloomberg 3-15 Year Blend Municipal Bond Index, returned 0.96% for the same time period.
Market overview
The municipal bond market experienced significant volatility during the annual period, impacted primarily by efforts of the U.S. Federal Reserve (Fed) to return inflation to its target levels and the resultant dramatic increase in interest rates. As the period began in August 2022, the municipal bond market, as measured by the Bloomberg Municipal Bond Index, saw broad-based negative returns, followed by its worst September monthly return on record. The municipal bond market then delivered a positive performance in the fourth calendar quarter. The Fed’s aggressive hiking campaign showed initial signs of success in cooling down inflation, boosting investor sentiment and driving a long-awaited relief rally that continued into January 2023. Unfortunately, sentiment quickly unwound in February, as the market reconsidered the persistence of inflation and a still too strong labor market. A more hawkish Fed led to a sell-off in U.S. Treasury and municipal bond yields alike. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
Then came March 2023 when, partially driven by higher interest rates, an unforeseen banking crisis unfolded, with three U.S. regional banks and Credit Suisse in need of rescue in quick succession. The weakness in the banking sector led to municipal bond yields moving lower and, in turn, solid positive first calendar quarter returns for the benchmark. Both U.S. Treasury and municipal bond yields then rose during the second quarter of 2023, as the regional banking crisis ebbed and the focus on the Fed’s tightening monetary policy reignited. For the first time since it started hiking in March 2022, the Fed did not raise rates at its June 2023 meeting. However, in late July, the Fed approved another rate hike, its 11th of the current cycle, bringing its targeted federal funds rate to its highest level in more than 22 years. Further, the Fed indicated additional interest rate increases may be implemented before year end. The municipal bond market posted a modestly negative return for the second quarter of 2023 but a moderately positive return for July, as performance was broadly positive across maturities, credit ratings and states for the month amid a consensus shift in favor of a soft landing with a recession no longer imminent. Notably, the municipal bond market outperformed both U.S. Treasuries and the broad U.S. fixed-income market for the last five months of the period and did so even more significantly for the annual period overall.
The Fund’s notable detractors during the period
| • | The reshaping of the municipal yield curve during the period was significant, with short yields spiking and longer yields increasing to a much smaller degree. This led longer term bonds to outperform during a period of rising yields. The portfolio’s underweighting to bonds with maturities of 8 – 17 years detracted from performance as these bonds significantly outperformed shorter maturity bonds. |
| • | An underweighting to lower investment-grade issues detracted as A and BBB rated bonds outperformed their higher rated counterparts. The Oregon municipal market, in general, is of higher quality than the national market, which is represented by the Fund’s benchmark. |
| • | Pre-refunded bonds also performed poorly, as they are very short in maturity and were exposed to the dramatic rise in short-term yields during the period. |
The Fund’s notable contributors during the period
| • | The Fund’s below benchmark duration was beneficial during the period as municipal yields increased over the year. This shorter duration profile helped to limit price declines in the portfolio’s holdings. Negative price returns during the period were offset by income returns, which resulted in a positive contribution to returns. |
| • | At the sector level, overweights to the hospital and special non-property tax sectors were additive as these sectors outperformed the broader market. Strong performance in the special non-property tax sector was driven by transportation highway user tax related issues. |
| • | The Fund’s exposure to non-investment-grade municipal bonds contributed to Fund performance, driven by a variety of positions. The refunding of a continuing care retirement community bond and good performance from several local general obligation bonds led returns in this quality segment. |
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
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 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 Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| February 1, 2023 — July 31, 2023 |
| | Account value at the
beginning of the
period ($) | 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 | 993.60 | 1,020.83 | 3.95 | 4.01 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 994.80 | 1,022.07 | 2.72 | 2.76 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 991.40 | 1,018.60 | 6.17 | 6.26 | 1.25 |
| Institutional Class | 1,000.00 | 1,000.00 | 994.80 | 1,022.07 | 2.72 | 2.76 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 994.90 | 1,022.17 | 2.62 | 2.66 | 0.53 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 995.20 | 1,022.41 | 2.37 | 2.41 | 0.48 |
Expenses paid during the period are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal half year and divided by 365.
Expenses do not include fees and expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 7 |
Portfolio of Investments
July 31, 2023
(Percentages represent value of investments compared to net assets)
Investments in securities
| Floating Rate Notes 2.2% |
| Issue Description | Yield | | Principal
Amount ($) | Value ($) |
| Variable Rate Demand Notes 2.2% |
| City of Murray(a),(b) |
| Revenue Bonds |
| IHC Health Services, Inc. |
| Series 2005A (JPMorgan Chase Bank) |
| 05/15/2037 | 4.550% | | 2,000,000 | 2,000,000 |
| City of New York(a),(b) |
| Unlimited General Obligation Bonds |
| Subordinated Series 2014I-2 (JPMorgan Chase Bank) |
| 03/01/2040 | 4.650% | | 2,000,000 | 2,000,000 |
| New York City Municipal Water Finance Authority(a),(b) |
| Revenue Bonds |
| Series 2011 (JPMorgan Chase Bank) |
| 06/15/2044 | 4.650% | | 700,000 | 700,000 |
| New York City Transitional Finance Authority(a),(b) |
| Revenue Bonds |
| Future Tax Secured |
| Subordinated Series 2016 (JPMorgan Chase Bank) |
| 02/01/2045 | 4.650% | | 1,000,000 | 1,000,000 |
| New York City Water & Sewer System(a),(b) |
| Revenue Bonds |
| 2nd General Resolution |
| Series 2013 (JPMorgan Chase Bank) |
| 06/15/2050 | 4.650% | | 1,000,000 | 1,000,000 |
| Total | 6,700,000 |
Total Floating Rate Notes
(Cost $6,700,000) | 6,700,000 |
|
| Municipal Bonds 97.0% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Airport 5.2% |
| Port of Portland |
| Refunding Revenue Bonds |
| Portland International Airport |
| Series 2015-23 |
| 07/01/2028 | 5.000% | | 1,240,000 | 1,284,647 |
| 07/01/2031 | 5.000% | | 1,750,000 | 1,809,615 |
| 07/01/2032 | 5.000% | | 2,000,000 | 2,063,799 |
| Port of Portland(c) |
| Revenue Bonds |
| Portland International Airport |
| Series 2022 |
| 07/01/2039 | 4.000% | | 5,000,000 | 4,903,702 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Port of Portland Airport(c) |
| Revenue Bonds |
| Portland International Airport |
| Series 2019 |
| 07/01/2035 | 5.000% | | 1,680,000 | 1,792,388 |
| 07/01/2036 | 5.000% | | 650,000 | 688,543 |
| Series 2020A-27 |
| 07/01/2030 | 5.000% | | 3,000,000 | 3,274,441 |
| Total | 15,817,135 |
| Charter Schools 0.2% |
| Oregon State Facilities Authority(d) |
| Revenue Bonds |
| Redmond Proficiency Academy Project |
| Series 2015 |
| 06/15/2025 | 4.750% | | 180,000 | 179,006 |
| 06/15/2035 | 5.500% | | 540,000 | 539,030 |
| Total | 718,036 |
| Higher Education 1.6% |
| City of Forest Grove |
| Refunding Revenue Bonds |
| Campus Improvement Pacific University Project |
| Series 2015 |
| 05/01/2030 | 5.000% | | 550,000 | 561,561 |
| 05/01/2036 | 5.000% | | 1,500,000 | 1,518,037 |
| Oak Tree Foundation Project |
| Series 2017 |
| 03/01/2024 | 5.000% | | 250,000 | 251,384 |
| 03/01/2025 | 5.000% | | 200,000 | 202,293 |
| Pacific University |
| Series 2022 |
| 05/01/2037 | 4.000% | | 635,000 | 596,549 |
| County of Yamhill |
| Refunding Revenue Bonds |
| George Fox University Project |
| Series 2021 |
| 12/01/2036 | 4.000% | | 500,000 | 500,903 |
| Oregon State Facilities Authority |
| Refunding Revenue Bonds |
| University of Portland |
| Series 2015A |
| 04/01/2030 | 5.000% | | 500,000 | 515,561 |
| 04/01/2031 | 5.000% | | 530,000 | 546,168 |
| Total | 4,692,456 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Hospital 12.6% |
| Klamath Falls Intercommunity Hospital Authority |
| Refunding Revenue Bonds |
| Sky Lakes Medical Center Project |
| Series 2016 |
| 09/01/2028 | 5.000% | | 265,000 | 274,816 |
| 09/01/2030 | 5.000% | | 830,000 | 861,464 |
| 09/01/2031 | 5.000% | | 500,000 | 519,021 |
| 09/01/2032 | 5.000% | | 270,000 | 280,142 |
| Medford Hospital Facilities Authority |
| Refunding Revenue Bonds |
| Asante Project |
| Series 2020A |
| 08/15/2033 | 5.000% | | 1,200,000 | 1,321,078 |
| 08/15/2037 | 5.000% | | 2,900,000 | 3,103,000 |
| 08/15/2039 | 4.000% | | 1,100,000 | 1,071,178 |
| Oregon Health & Science University |
| Refunding Revenue Bonds |
| Series 2016B |
| 07/01/2034 | 5.000% | | 7,500,000 | 7,867,957 |
| Series 2019A |
| 07/01/2032 | 5.000% | | 5,175,000 | 5,769,718 |
| Series 2021B-2 (Mandatory Put 02/01/32) |
| 07/01/2046 | 5.000% | | 1,235,000 | 1,397,432 |
| Revenue Bonds |
| Green Bonds |
| Series 2021A |
| 07/01/2038 | 5.000% | | 1,000,000 | 1,108,076 |
| Oregon State Facilities Authority |
| Refunding Revenue Bonds |
| Legacy Health Project |
| Series 2016A |
| 06/01/2033 | 5.000% | | 1,600,000 | 1,659,102 |
| 06/01/2034 | 5.000% | | 3,185,000 | 3,297,691 |
| PeaceHealth Project |
| Series 2014A |
| 11/15/2029 | 5.000% | | 1,600,000 | 1,618,319 |
| Salem Hospital Facility Authority |
| Refunding Revenue Bonds |
| Salem Health Project |
| Series 2016A |
| 05/15/2029 | 5.000% | | 1,000,000 | 1,045,302 |
| 05/15/2030 | 5.000% | | 1,000,000 | 1,045,894 |
| 05/15/2031 | 5.000% | | 1,025,000 | 1,071,771 |
| Series 2019 |
| 05/15/2037 | 5.000% | | 2,305,000 | 2,438,259 |
| Salem Health Projects |
| Series 2016A |
| 05/15/2041 | 4.000% | | 2,500,000 | 2,424,847 |
| Total | 38,175,067 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Local General Obligation 30.2% |
| Benton & Linn Counties Consolidated School District No. 509J & 509A Corvallis(e) |
| Unlimited General Obligation Bonds |
| Series 2018A |
| 06/15/2038 | 5.000% | | 500,000 | 537,108 |
| Blue Mountain Community College District |
| Unlimited General Obligation Bonds |
| Series 2015 |
| 06/15/2029 | 4.000% | | 1,000,000 | 1,016,956 |
| Boardman Park & Recreation District |
| Unlimited General Obligation Bonds |
| Series 2015 |
| 06/15/2035 | 5.250% | | 3,400,000 | 3,463,773 |
| Canyonville South Umpqua Rural Fire Protection District |
| Unlimited General Obligation Bonds |
| Series 2001 |
| 07/01/2031 | 5.400% | | 510,000 | 510,935 |
| Central Oregon Community College |
| Unlimited General Obligation Refunding Bonds |
| Series 2021 |
| 06/15/2028 | 4.000% | | 525,000 | 552,469 |
| Chemeketa Community College District |
| Unlimited General Obligation Refunding Bonds |
| Series 2014 |
| 06/15/2026 | 5.000% | | 1,100,000 | 1,114,828 |
| Series 2015 |
| 06/15/2026 | 4.000% | | 1,745,000 | 1,772,995 |
| City of Lebanon |
| Unlimited General Obligation Refunding Bonds |
| Series 2015 |
| 06/01/2026 | 5.000% | | 1,675,000 | 1,726,802 |
| 06/01/2027 | 5.000% | | 1,715,000 | 1,765,572 |
| City of Portland |
| Limited General Obligation Bonds |
| Limited Tax Sellwood Bridge Project |
| Series 2014 |
| 06/01/2024 | 5.000% | | 1,985,000 | 2,014,390 |
| Unlimited General Obligation Refunding Bonds |
| Public Safety Projects and Emergency Facilities |
| Series 2014 |
| 06/15/2024 | 5.000% | | 1,885,000 | 1,914,306 |
| City of Redmond |
| Limited General Obligation Bonds |
| Series 2014A |
| 06/01/2027 | 5.000% | | 685,000 | 694,578 |
| City of Salem |
| Unlimited General Obligation Bonds |
| Series 2023B |
| 06/01/2039 | 5.000% | | 2,500,000 | 2,832,549 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 9 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Unlimited General Obligation Refunding Bonds |
| Series 2017 |
| 06/01/2030 | 4.000% | | 2,000,000 | 2,076,295 |
| City of Sisters |
| Limited General Obligation Refunding Bonds |
| Series 2016 |
| 12/01/2035 | 4.000% | | 620,000 | 622,088 |
| Clackamas & Washington Counties School District No. 3 |
| Unlimited General Obligation Bonds |
| Series 2020B |
| 06/15/2028 | 5.000% | | 275,000 | 302,994 |
| 06/15/2029 | 5.000% | | 435,000 | 487,996 |
| Clackamas Community College District(e) |
| Unlimited General Obligation Bonds |
| Convertible Deferred Interest |
| Series 2017A |
| 06/15/2038 | 5.000% | | 760,000 | 801,878 |
| Clackamas County School District No. 108 Estacada |
| Unlimited General Obligation Refunding Bonds |
| Series 2005 (AGM) |
| 06/15/2025 | 5.500% | | 2,485,000 | 2,592,956 |
| Clackamas County School District No. 12 North Clackamas |
| Unlimited General Obligation Bonds |
| Series 2017B |
| 06/15/2033 | 5.000% | | 3,500,000 | 3,741,272 |
| Clatsop County School District No. 1-C |
| Unlimited General Obligation Bonds |
| Astoria |
| 06/15/2035 | 5.000% | | 1,000,000 | 1,114,077 |
| Clatsop County School District No. 30 Warrenton-Hammond(f) |
| Unlimited General Obligation Bonds |
| Deferred Interest |
| Series 2019 |
| 06/15/2035 | 0.000% | | 1,000,000 | 627,369 |
| Columbia County School District No. 502(f) |
| Unlimited General Obligation Bonds |
| Deferred Interest |
| Series 2020A |
| 06/15/2033 | 0.000% | | 300,000 | 204,637 |
| Coos County School District No. 9 Coos Bay |
| Unlimited General Obligation Bonds |
| Series 2018 |
| 06/15/2034 | 5.000% | | 500,000 | 551,831 |
| 06/15/2035 | 5.000% | | 1,000,000 | 1,098,345 |
| Deschutes & Jefferson Counties School District No. 2J Redmond |
| Unlimited General Obligation Bonds |
| Series 2021 |
| 06/15/2038 | 4.000% | | 650,000 | 663,844 |
| Deschutes County School District No. 6 Sisters |
| Unlimited General Obligation Bonds |
| Series 2021 |
| 06/15/2033 | 4.000% | | 380,000 | 407,170 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Hillsboro School District No. 1J |
| Unlimited General Obligation Bonds |
| Washington, Yamhill and Multnomah Counties |
| Series 2017 |
| 06/15/2035 | 5.000% | | 2,500,000 | 2,664,815 |
| Series 2020 |
| 06/15/2029 | 5.000% | | 550,000 | 617,007 |
| 06/15/2038 | 4.000% | | 2,500,000 | 2,524,579 |
| Jackson County School District No. 4(f) |
| Unlimited General Obligation Bonds |
| Series 2018A |
| 06/15/2033 | 0.000% | | 1,000,000 | 682,251 |
| Jackson County School District No. 5 Ashland |
| Unlimited General Obligation Bonds |
| Series 2019 |
| 06/15/2036 | 5.000% | | 3,000,000 | 3,284,731 |
| Jackson County School District No. 549C Medford |
| Unlimited General Obligation Refunding Bonds |
| Series 2015 |
| 12/15/2023 | 5.000% | | 1,000,000 | 1,006,179 |
| Jackson County School District No. 6 Central Point |
| Unlimited General Obligation Bonds |
| Series 2019A |
| 06/15/2036 | 4.000% | | 1,145,000 | 1,174,121 |
| Lane Community College |
| Unlimited General Obligation Bonds |
| Series 2020A |
| 06/15/2033 | 4.000% | | 1,000,000 | 1,066,509 |
| 06/15/2037 | 4.000% | | 2,000,000 | 2,042,725 |
| Lane County School District No. 1 Pleasant Hill(f) |
| Unlimited General Obligation Bonds |
| Series 2014B |
| 06/15/2029 | 0.000% | | 1,775,000 | 1,446,419 |
| Lane County School District No. 19 Springfield(f) |
| Unlimited General Obligation Bonds |
| Series 2015B |
| 06/15/2033 | 0.000% | | 3,770,000 | 2,657,726 |
| Unlimited General Obligation Refunding Bonds |
| Series 2015D |
| 06/15/2024 | 0.000% | | 2,305,000 | 2,235,767 |
| 06/15/2028 | 0.000% | | 1,480,000 | 1,266,725 |
| Lane County School District No. 52 Bethel |
| Unlimited General Obligation Bonds |
| Series 2021B |
| 06/15/2035 | 4.000% | | 1,590,000 | 1,674,045 |
| Linn & Benton Counties School District No. 8J Greater Albany |
| Unlimited General Obligation Bonds |
| Series 2017 |
| 06/15/2030 | 5.000% | | 1,000,000 | 1,076,881 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Marion County School District No. 15 North Marion |
| Unlimited General Obligation Bonds |
| Series 2018B |
| 06/15/2032 | 5.000% | | 1,000,000 | 1,103,547 |
| 06/15/2033 | 5.000% | | 240,000 | 265,093 |
| Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow(f) |
| Unlimited General Obligation Bonds |
| Series 2017A |
| 06/15/2033 | 0.000% | | 4,000,000 | 2,694,389 |
| Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow |
| Unlimited General Obligation Bonds |
| Series 2017B |
| 06/15/2031 | 5.000% | | 3,000,000 | 3,216,996 |
| Multnomah County School District No. 1 Portland |
| Unlimited General Obligation Bonds |
| Series 2020 |
| 06/15/2029 | 5.000% | | 1,500,000 | 1,687,074 |
| Multnomah County School District No. 7 Reynolds(f) |
| Unlimited General Obligation Bonds |
| Deferred Interest |
| Series 2015B |
| 06/15/2030 | 0.000% | | 4,000,000 | 3,038,674 |
| Polk Marion & Benton Counties School District No. 13J Central |
| Unlimited General Obligation Refunding Bonds |
| Series 2015 |
| 02/01/2027 | 4.000% | | 750,000 | 759,325 |
| 02/01/2028 | 4.000% | | 1,000,000 | 1,012,708 |
| Portland Community College District |
| Unlimited General Obligation Bonds |
| Series 2018 |
| 06/15/2029 | 5.000% | | 1,000,000 | 1,054,608 |
| Series 2023 |
| 06/15/2038 | 5.000% | | 1,000,000 | 1,142,601 |
| Unlimited General Obligation Refunding Bonds |
| Series 2016 |
| 06/15/2027 | 5.000% | | 2,100,000 | 2,215,862 |
| Salem-Keizer School District No. 24J |
| Unlimited General Obligation Bonds |
| Series 2018 |
| 06/15/2035 | 4.000% | | 1,000,000 | 1,034,932 |
| Series 2020B |
| 06/15/2033 | 5.000% | | 1,450,000 | 1,655,456 |
| 06/15/2034 | 5.000% | | 2,000,000 | 2,278,207 |
| Washington Clackamas & Yamhill Counties School District No. 88J(f) |
| Unlimited General Obligation Bonds |
| Deferred Interest |
| Series 2018A |
| 06/15/2037 | 0.000% | | 3,500,000 | 1,899,612 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Washington Clackamas & Yamhill Counties School District No. 88J |
| Unlimited General Obligation Bonds |
| Sherwood College |
| Series 2017B |
| 06/15/2031 | 5.000% | | 4,500,000 | 4,822,092 |
| Yamhill Clackamas & Washington Counties School District No. 29J Newberg |
| Unlimited General Obligation Bonds |
| Series 2021B |
| 06/15/2029 | 4.000% | | 1,000,000 | 1,059,598 |
| Total | 91,571,267 |
| Multi-Family 1.7% |
| Oregon State Facilities Authority(d) |
| Revenue Bonds |
| College Housing Northwest Project |
| Series 2016A |
| 10/01/2026 | 4.000% | | 300,000 | 290,368 |
| 10/01/2036 | 5.000% | | 1,000,000 | 936,597 |
| State of Oregon Housing & Community Services Department(e) |
| Revenue Bonds |
| Plaza Los Amigos Apartments Project |
| Series 2022 (Mandatory Put 02/01/25) |
| 02/01/2026 | 3.000% | | 2,000,000 | 1,970,163 |
| State of Oregon Housing & Community Services Department |
| Revenue Bonds |
| Susan Emmons Apartment Project (The) |
| Series 2021 (HUD) (Mandatory Put 12/01/23) |
| 06/01/2024 | 0.380% | | 2,000,000 | 1,970,631 |
| Total | 5,167,759 |
| Municipal Power 2.2% |
| Central Lincoln People’s Utility District JATC, Inc. |
| Revenue Bonds |
| Series 2016 |
| 12/01/2033 | 5.000% | | 350,000 | 361,498 |
| 12/01/2034 | 5.000% | | 400,000 | 413,141 |
| 12/01/2035 | 5.000% | | 410,000 | 423,284 |
| 12/01/2036 | 5.000% | | 440,000 | 454,056 |
| City of Eugene Electric Utility System |
| Revenue Bonds |
| Series 2017 |
| 08/01/2029 | 5.000% | | 530,000 | 570,293 |
| 08/01/2030 | 5.000% | | 420,000 | 451,274 |
| 08/01/2031 | 5.000% | | 450,000 | 481,057 |
| 08/01/2032 | 5.000% | | 250,000 | 267,060 |
| Northern Wasco County Peoples Utility District |
| Revenue Bonds |
| Series 2016 |
| 12/01/2031 | 5.000% | | 1,455,000 | 1,533,998 |
| 12/01/2036 | 5.000% | | 1,545,000 | 1,620,914 |
| Total | 6,576,575 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 11 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Other Bond Issue 0.2% |
| Warm Springs Reservation Confederated Tribe(d),(g) |
| Refunding Revenue Bonds |
| Green Bonds - Pelton-Round Butte Project |
| Series 2019 |
| 11/01/2036 | 5.000% | | 590,000 | 640,714 |
| Pool / Bond Bank 0.7% |
| Oregon State Bond Bank |
| Refunding Revenue Bonds |
| Series 2018A |
| 01/01/2028 | 5.000% | | 850,000 | 887,591 |
| 01/01/2029 | 5.000% | | 1,120,000 | 1,169,001 |
| Total | 2,056,592 |
| Ports 0.8% |
| Port of Morrow |
| Limited General Obligation Refunding Bonds |
| Subordinated Series 2021D |
| 12/01/2034 | 4.000% | | 1,250,000 | 1,268,481 |
| 12/01/2035 | 4.000% | | 1,290,000 | 1,301,759 |
| Total | 2,570,240 |
| Refunded / Escrowed 9.6% |
| Clackamas County School District No. 12 North Clackamas |
| Prerefunded 06/15/24 Unlimited General Obligation Bonds |
| Series 2014 |
| 06/15/2029 | 5.000% | | 1,500,000 | 1,522,471 |
| Hospital Facilities Authority of Multnomah County |
| Prerefunded 10/01/24 Revenue Bonds |
| Mirabella at South Waterfront |
| Series 2014A |
| 09/30/2034 | 5.125% | | 4,000,000 | 4,085,268 |
| Klamath Falls City Schools |
| Prerefunded 06/15/25 Unlimited General Obligation Bonds |
| Series 2015A |
| 06/15/2028 | 4.000% | | 500,000 | 508,338 |
| Lane County School District No. 19 Springfield |
| Prerefunded 06/15/25 Unlimited General Obligation Bonds |
| Series 2015A |
| 06/15/2031 | 5.000% | | 2,000,000 | 2,069,402 |
| Medford Hospital Facilities Authority |
| Refunding Revenue Bonds |
| Rogue Valley Manor |
| Series 2013 Escrowed to Maturity |
| 10/01/2023 | 5.000% | | 645,000 | 646,651 |
| Oregon State Facilities Authority |
| Prerefunded 07/01/27 Revenue Bonds |
| Reed College Project |
| Series 2017A |
| 07/01/2032 | 4.000% | | 250,000 | 260,387 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Puerto Rico Public Finance Corp.(g) |
| Unrefunded Revenue Bonds |
| Commonwealth Appropriation |
| Series 2002E Escrowed to Maturity |
| 08/01/2026 | 6.000% | | 5,000,000 | 5,392,945 |
| Tri-County Metropolitan Transportation District of Oregon |
| Prerefunded 09/01/26 Revenue Bonds |
| Senior Lien |
| Series 2016 |
| 09/01/2031 | 4.000% | | 1,000,000 | 1,032,856 |
| 09/01/2032 | 4.000% | | 1,250,000 | 1,291,070 |
| Senior Lien Payroll Tax |
| Series 2017A |
| 09/01/2032 | 5.000% | | 1,595,000 | 1,697,979 |
| Prerefunded 09/01/27 Revenue Bonds |
| Series 2018A |
| 09/01/2034 | 5.000% | | 550,000 | 597,413 |
| 09/01/2035 | 5.000% | | 800,000 | 868,965 |
| Umatilla County School District No. 16R Pendleton |
| Prerefunded 06/15/24 Unlimited General Obligation Bonds |
| Series 2014A |
| 06/15/2030 | 5.000% | | 1,110,000 | 1,126,151 |
| 06/15/2031 | 5.000% | | 2,890,000 | 2,932,050 |
| Union County School District No. 1 La Grande |
| Prerefunded 06/15/25 Unlimited General Obligation Bonds |
| Series 2015 |
| 06/15/2030 | 4.000% | | 1,000,000 | 1,017,770 |
| Washington & Multnomah Counties School District No. 48J Beaverton |
| Prerefunded 06/15/24 Unlimited General Obligation Bonds |
| Series 2014 |
| 06/15/2033 | 5.000% | | 4,000,000 | 4,059,923 |
| Total | 29,109,639 |
| Retirement Communities 1.2% |
| Clackamas County Hospital Facility Authority |
| Revenue Bonds |
| Mary’s Woods at Marylhurst, Inc. |
| Series 2018 |
| 05/15/2038 | 5.000% | | 220,000 | 201,031 |
| Hospital Facilities Authority of Multnomah County |
| Refunding Revenue Bonds |
| Terwilliger Plaza, Inc. |
| Series 2016 |
| 12/01/2030 | 5.000% | | 325,000 | 316,999 |
| 12/01/2036 | 5.000% | | 900,000 | 839,263 |
| Medford Hospital Facilities Authority |
| Refunding Revenue Bonds |
| Rogue Valley Manor |
| Series 2013 |
| 10/01/2024 | 5.000% | | 455,000 | 456,165 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Salem Hospital Facility Authority |
| Refunding Revenue Bonds |
| Capital Manor Project |
| Series 2022 |
| 05/15/2040 | 4.000% | | 800,000 | 664,940 |
| Revenue Bonds |
| Capital Manor Project |
| Series 2018 |
| 05/15/2033 | 5.000% | | 550,000 | 555,317 |
| 05/15/2038 | 5.000% | | 500,000 | 487,908 |
| Total | 3,521,623 |
| Single Family 2.1% |
| State of Oregon Housing & Community Services Department |
| Revenue Bonds |
| Series 2017D |
| 07/01/2032 | 3.150% | | 1,485,000 | 1,450,156 |
| Series 2020A |
| 07/01/2028 | 1.700% | | 1,040,000 | 943,036 |
| 01/01/2029 | 1.750% | | 1,010,000 | 912,513 |
| Series 2020C |
| 07/01/2035 | 2.000% | | 2,000,000 | 1,672,005 |
| Single-Family Mortgage Program |
| Series 2021A |
| 07/01/2027 | 0.950% | | 1,015,000 | 911,067 |
| 01/01/2029 | 1.200% | | 250,000 | 218,062 |
| 01/01/2030 | 1.450% | | 375,000 | 324,456 |
| Total | 6,431,295 |
| Special Non Property Tax 10.5% |
| Metro |
| Revenue Bonds |
| Convention Center Hotel |
| Series 2017 |
| 06/15/2030 | 5.000% | | 435,000 | 464,168 |
| 06/15/2031 | 5.000% | | 725,000 | 771,437 |
| 06/15/2032 | 5.000% | | 780,000 | 827,917 |
| Oregon State Lottery |
| Refunding Revenue Bonds |
| Series 2014B |
| 04/01/2027 | 5.000% | | 1,750,000 | 1,771,878 |
| Series 2015D |
| 04/01/2027 | 5.000% | | 2,500,000 | 2,573,671 |
| Revenue Bonds |
| Series 2019A |
| 04/01/2036 | 5.000% | | 1,000,000 | 1,101,635 |
| Series 2023A |
| 04/01/2040 | 5.000% | | 1,145,000 | 1,290,330 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| State of Oregon Department of Transportation |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2017B |
| 11/15/2026 | 5.000% | | 4,000,000 | 4,269,049 |
| Senior Lien User Tax |
| Series 2017C |
| 11/15/2026 | 5.000% | | 1,000,000 | 1,067,262 |
| Subordinated Series 2019A |
| 11/15/2036 | 5.000% | | 2,000,000 | 2,225,315 |
| 11/15/2038 | 5.000% | | 1,020,000 | 1,124,651 |
| Revenue Bonds |
| Series 2022A |
| 11/15/2040 | 5.000% | | 2,000,000 | 2,269,224 |
| Subordinated Series 2020A |
| 11/15/2037 | 5.000% | | 4,850,000 | 5,435,568 |
| Subordinated Series 2023A |
| 11/15/2039 | 5.000% | | 2,000,000 | 2,291,916 |
| Tri-County Metropolitan Transportation District |
| Revenue Bonds |
| Series 2019A |
| 09/01/2038 | 5.000% | | 1,000,000 | 1,092,639 |
| Tri-County Metropolitan Transportation District of Oregon |
| Revenue Bonds |
| Series 2019A |
| 09/01/2037 | 5.000% | | 1,500,000 | 1,646,553 |
| 09/01/2039 | 4.000% | | 1,460,000 | 1,479,922 |
| Total | 31,703,135 |
| Special Property Tax 0.5% |
| City of Keizer |
| Special Assessment Bonds |
| Keizer Station Area |
| Series 2008A |
| 06/01/2031 | 5.200% | | 1,635,000 | 1,638,420 |
| State General Obligation 6.4% |
| State of Oregon |
| Limited General Obligation Refunding Bonds |
| Veterans Welfare Bonds |
| Series 2020I |
| 12/01/2030 | 1.950% | | 555,000 | 492,987 |
| 12/01/2031 | 2.000% | | 450,000 | 393,926 |
| Unlimited General Obligation Bonds |
| Article XI - Q State Project |
| Series 2017A |
| 05/01/2026 | 5.000% | | 1,250,000 | 1,318,821 |
| Article XI - Q State Projects |
| Series 2023 |
| 05/01/2040 | 5.000% | | 2,000,000 | 2,277,001 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 13 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2015F |
| 05/01/2030 | 5.000% | | 5,565,000 | 5,721,726 |
| Series 2019 |
| 06/01/2038 | 5.000% | | 3,000,000 | 3,284,147 |
| Series 2019G |
| 08/01/2033 | 5.000% | | 1,320,000 | 1,487,456 |
| Series 2023G |
| 08/01/2041 | 5.000% | | 2,320,000 | 2,638,280 |
| Unlimited General Obligation Notes |
| Higher Education |
| Series 2016C |
| 08/01/2033 | 5.000% | | 750,000 | 792,957 |
| Series 2016A |
| 08/01/2031 | 3.500% | | 500,000 | 507,116 |
| 08/01/2032 | 3.500% | | 500,000 | 505,441 |
| Total | 19,419,858 |
| Transportation 3.4% |
| Tri-County Metropolitan Transportation District of Oregon |
| Refunding Revenue Bonds |
| Series 2017 |
| 10/01/2026 | 5.000% | | 1,235,000 | 1,305,667 |
| 10/01/2027 | 5.000% | | 1,485,000 | 1,599,532 |
| Revenue Bonds |
| Series 2018A |
| 10/01/2032 | 5.000% | | 6,800,000 | 7,351,158 |
| Total | 10,256,357 |
| Water & Sewer 7.9% |
| City of Beaverton Water |
| Revenue Bonds |
| Series 2018 |
| 04/01/2034 | 5.000% | | 1,125,000 | 1,237,455 |
| City of Bend Sewer |
| Revenue Bonds |
| Series 2020 |
| 05/01/2039 | 5.000% | | 1,390,000 | 1,523,320 |
| City of Eugene Water Utility System |
| Refunding Revenue Bonds |
| Utility System |
| Series 2016 |
| 08/01/2032 | 4.000% | | 500,000 | 513,262 |
| Revenue Bonds |
| Series 2023 |
| 08/01/2040 | 5.000% | | 190,000 | 213,796 |
| 08/01/2041 | 5.000% | | 525,000 | 588,501 |
| City of Portland Sewer System |
| Refunding Revenue Bonds |
| 2nd Lien |
| Subordinated Series 2023A |
| 12/01/2041 | 5.000% | | 2,000,000 | 2,247,268 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Portland Water System |
| Refunding Revenue Bonds |
| 1st Lien |
| Series 2016A |
| 04/01/2030 | 4.000% | | 7,375,000 | 7,572,793 |
| Revenue Bonds |
| Second Lien |
| Subordinated Series 2019A |
| 05/01/2036 | 5.000% | | 1,500,000 | 1,670,178 |
| Series 2014A |
| 05/01/2028 | 4.000% | | 3,390,000 | 3,410,424 |
| City of Springfield Sewer System |
| Refunding Revenue Bonds |
| Series 2017 |
| 04/01/2025 | 4.000% | | 200,000 | 202,573 |
| 04/01/2026 | 4.000% | | 250,000 | 255,900 |
| 04/01/2027 | 4.000% | | 270,000 | 279,402 |
| Clackamas River Water |
| Revenue Bonds |
| Series 2016 |
| 11/01/2032 | 5.000% | | 200,000 | 204,606 |
| 11/01/2033 | 5.000% | | 265,000 | 270,832 |
| 11/01/2034 | 5.000% | | 250,000 | 255,502 |
| 11/01/2035 | 5.000% | | 225,000 | 229,837 |
| 11/01/2036 | 5.000% | | 200,000 | 204,197 |
| Tualatin Valley Water District |
| Revenue Bonds |
| Series 2023 |
| 06/01/2040 | 5.000% | | 2,560,000 | 2,921,757 |
| Total | 23,801,603 |
Total Municipal Bonds
(Cost $302,172,205) | 293,867,771 |
| Money Market Funds 0.1% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 3.579%(h) | 52,175 | 52,170 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 3.537%(h) | 250,230 | 250,230 |
Total Money Market Funds
(Cost $302,405) | 302,400 |
Total Investments in Securities
(Cost: $309,174,610) | 300,870,171 |
| Other Assets & Liabilities, Net | | 2,106,824 |
| Net Assets | 302,976,995 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
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 July 31, 2023. |
| (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 July 31, 2023, the total value of these securities amounted to $2,585,715, which represents 0.85% of total net assets. |
| (e) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of July 31, 2023. |
| (f) | Zero coupon bond. |
| (g) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At July 31, 2023, the total value of these securities amounted to $6,033,659, which represents 1.99% of total net assets. |
| (h) | The rate shown is the seven-day current annualized yield at July 31, 2023. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| HUD | U.S. Department of Housing and Urban Development |
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.
The Fund’s Board of Trustees (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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. Representatives of Columbia Management Investment Advisers, LLC report to 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 Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 15 |
Portfolio of Investments (continued)
July 31, 2023
Fair value measurements (continued)
The following table is a summary of the inputs used to value the Fund’s investments at July 31, 2023:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Floating Rate Notes | — | 6,700,000 | — | 6,700,000 |
| Municipal Bonds | — | 293,867,771 | — | 293,867,771 |
| Money Market Funds | 302,400 | — | — | 302,400 |
| Total Investments in Securities | 302,400 | 300,567,771 | — | 300,870,171 |
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 Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Statement of Assets and Liabilities
July 31, 2023
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $309,174,610) | $300,870,171 |
| Cash | 1,479 |
| Receivable for: | |
| Capital shares sold | 555,465 |
| Dividends | 616 |
| Interest | 2,682,762 |
| Trustees’ fees | 113,046 |
| Expense reimbursement due from Investment Manager | 902 |
| Prepaid expenses | 6,142 |
| Total assets | 304,230,583 |
| Liabilities | |
| Payable for: | |
| Capital shares redeemed | 471,232 |
| Distributions to shareholders | 600,244 |
| Management services fees | 11,679 |
| Distribution and/or service fees | 683 |
| Transfer agent fees | 18,383 |
| Trustees’ fees | 130,128 |
| Other expenses | 21,239 |
| Total liabilities | 1,253,588 |
| Net assets applicable to outstanding capital stock | $302,976,995 |
| Represented by | |
| Paid in capital | 313,017,913 |
| Total distributable earnings (loss) | (10,040,918) |
| Total - representing net assets applicable to outstanding capital stock | $302,976,995 |
| Class A | |
| Net assets | $27,181,112 |
| Shares outstanding | 2,357,845 |
| Net asset value per share | $11.53 |
| 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) | $11.89 |
| Advisor Class | |
| Net assets | $4,189,467 |
| Shares outstanding | 363,306 |
| Net asset value per share | $11.53 |
| Class C | |
| Net assets | $2,171,745 |
| Shares outstanding | 188,400 |
| Net asset value per share | $11.53 |
| Institutional Class | |
| Net assets | $198,557,017 |
| Shares outstanding | 17,223,519 |
| Net asset value per share | $11.53 |
| Institutional 2 Class | |
| Net assets | $47,322,856 |
| Shares outstanding | 4,111,897 |
| Net asset value per share | $11.51 |
| Institutional 3 Class | |
| Net assets | $23,554,798 |
| Shares outstanding | 2,040,433 |
| Net asset value per share | $11.54 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 17 |
Statement of Operations
Year Ended July 31, 2023
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $58,726 |
| Interest | 8,536,340 |
| Total income | 8,595,066 |
| Expenses: | |
| Management services fees | 1,455,102 |
| Distribution and/or service fees | |
| Class A | 78,419 |
| Class C | 20,000 |
| Transfer agent fees | |
| Class A | 26,233 |
| Advisor Class | 3,205 |
| Class C | 2,390 |
| Institutional Class | 172,677 |
| Institutional 2 Class | 24,001 |
| Institutional 3 Class | 1,446 |
| Trustees’ fees | 21,256 |
| Custodian fees | 2,077 |
| Printing and postage fees | 23,746 |
| Registration fees | 8,208 |
| Accounting services fees | 30,090 |
| Legal fees | 16,776 |
| Interest on interfund lending | 377 |
| Compensation of chief compliance officer | 60 |
| Other | 14,764 |
| Total expenses | 1,900,827 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (114,035) |
| Expense reduction | (320) |
| Total net expenses | 1,786,472 |
| Net investment income | 6,808,594 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (1,885,599) |
| Net realized loss | (1,885,599) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (4,895,749) |
| Net change in unrealized appreciation (depreciation) | (4,895,749) |
| Net realized and unrealized loss | (6,781,348) |
| Net increase in net assets resulting from operations | $27,246 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Statement of Changes in Net Assets
| | Year Ended
July 31, 2023 | Year Ended
July 31, 2022 |
| Operations | | |
| Net investment income | $6,808,594 | $6,927,136 |
| Net realized loss | (1,885,599) | (200,083) |
| Net change in unrealized appreciation (depreciation) | (4,895,749) | (27,176,242) |
| Net increase (decrease) in net assets resulting from operations | 27,246 | (20,449,189) |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (611,003) | (734,921) |
| Advisor Class | (85,475) | (65,890) |
| Class C | (42,847) | (53,550) |
| Institutional Class | (4,542,306) | (5,138,933) |
| Institutional 2 Class | (949,098) | (698,707) |
| Institutional 3 Class | (528,449) | (252,762) |
| Total distributions to shareholders | (6,759,178) | (6,944,763) |
| Decrease in net assets from capital stock activity | (25,230,119) | (290,003) |
| Total decrease in net assets | (31,962,051) | (27,683,955) |
| Net assets at beginning of year | 334,939,046 | 362,623,001 |
| Net assets at end of year | $302,976,995 | $334,939,046 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 19 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | July 31, 2023 | July 31, 2022 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Shares sold | 340,632 | 3,936,634 | 685,838 | 8,328,148 |
| Distributions reinvested | 50,877 | 583,547 | 57,622 | 699,804 |
| Shares redeemed | (1,150,750) | (13,198,276) | (1,138,898) | (13,602,558) |
| Net decrease | (759,241) | (8,678,095) | (395,438) | (4,574,606) |
| Advisor Class | | | | |
| Shares sold | 163,769 | 1,883,887 | 141,491 | 1,708,751 |
| Distributions reinvested | 7,396 | 84,967 | 5,427 | 65,890 |
| Shares redeemed | (76,293) | (875,320) | (133,414) | (1,599,013) |
| Net increase | 94,872 | 1,093,534 | 13,504 | 175,628 |
| Class C | | | | |
| Shares sold | 32,463 | 374,425 | 32,559 | 400,557 |
| Distributions reinvested | 3,674 | 42,156 | 4,310 | 52,406 |
| Shares redeemed | (123,695) | (1,423,914) | (144,606) | (1,751,482) |
| Net decrease | (87,558) | (1,007,333) | (107,737) | (1,298,519) |
| Institutional Class | | | | |
| Shares sold | 1,998,646 | 23,041,740 | 2,204,837 | 26,856,497 |
| Distributions reinvested | 328,433 | 3,768,607 | 325,614 | 3,950,321 |
| Shares redeemed | (5,634,824) | (64,661,161) | (2,969,253) | (35,759,051) |
| Net decrease | (3,307,745) | (37,850,814) | (438,802) | (4,952,233) |
| Institutional 2 Class | | | | |
| Shares sold | 1,603,651 | 18,433,283 | 1,692,676 | 19,937,658 |
| Distributions reinvested | 82,454 | 945,193 | 57,828 | 698,693 |
| Shares redeemed | (972,710) | (11,146,242) | (983,721) | (11,744,059) |
| Net increase | 713,395 | 8,232,234 | 766,783 | 8,892,292 |
| Institutional 3 Class | | | | |
| Shares sold | 2,325,598 | 26,700,446 | 589,265 | 7,196,027 |
| Distributions reinvested | 13,998 | 160,760 | 12,279 | 148,873 |
| Shares redeemed | (1,210,067) | (13,880,851) | (496,051) | (5,877,465) |
| Net increase | 1,129,529 | 12,980,355 | 105,493 | 1,467,435 |
| Total net decrease | (2,216,748) | (25,230,119) | (56,197) | (290,003) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
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Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 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 ratios of expenses and net investment income are 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 7/31/2023 | $11.75 | 0.23 | (0.22) | 0.01 | (0.23) | — | (0.23) |
| Year Ended 7/31/2022 | $12.70 | 0.21 | (0.95) | (0.74) | (0.21) | — | (0.21) |
| Year Ended 7/31/2021 | $12.79 | 0.23 | (0.06) | 0.17 | (0.23) | (0.03) | (0.26) |
| Year Ended 7/31/2020 | $12.52 | 0.27 | 0.29 | 0.56 | (0.27) | (0.02) | (0.29) |
| Year Ended 7/31/2019 | $12.14 | 0.30 | 0.41 | 0.71 | (0.31) | (0.02) | (0.33) |
| Advisor Class |
| Year Ended 7/31/2023 | $11.76 | 0.26 | (0.23) | 0.03 | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $12.70 | 0.24 | (0.94) | (0.70) | (0.24) | — | (0.24) |
| Year Ended 7/31/2021 | $12.79 | 0.26 | (0.05) | 0.21 | (0.27) | (0.03) | (0.30) |
| Year Ended 7/31/2020 | $12.52 | 0.30 | 0.29 | 0.59 | (0.30) | (0.02) | (0.32) |
| Year Ended 7/31/2019 | $12.14 | 0.33 | 0.41 | 0.74 | (0.34) | (0.02) | (0.36) |
| Class C |
| Year Ended 7/31/2023 | $11.75 | 0.18 | (0.23) | (0.05) | (0.17) | — | (0.17) |
| Year Ended 7/31/2022 | $12.70 | 0.16 | (0.95) | (0.79) | (0.16) | — | (0.16) |
| Year Ended 7/31/2021 | $12.79 | 0.17 | (0.05) | 0.12 | (0.18) | (0.03) | (0.21) |
| Year Ended 7/31/2020 | $12.52 | 0.22 | 0.28 | 0.50 | (0.21) | (0.02) | (0.23) |
| Year Ended 7/31/2019 | $12.14 | 0.25 | 0.40 | 0.65 | (0.25) | (0.02) | (0.27) |
| Institutional Class |
| Year Ended 7/31/2023 | $11.75 | 0.26 | (0.22) | 0.04 | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $12.70 | 0.24 | (0.95) | (0.71) | (0.24) | — | (0.24) |
| Year Ended 7/31/2021 | $12.79 | 0.26 | (0.05) | 0.21 | (0.27) | (0.03) | (0.30) |
| Year Ended 7/31/2020 | $12.52 | 0.30 | 0.29 | 0.59 | (0.30) | (0.02) | (0.32) |
| Year Ended 7/31/2019 | $12.14 | 0.33 | 0.41 | 0.74 | (0.34) | (0.02) | (0.36) |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $11.73 | 0.26 | (0.22) | 0.04 | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $12.68 | 0.25 | (0.95) | (0.70) | (0.25) | — | (0.25) |
| Year Ended 7/31/2021 | $12.77 | 0.26 | (0.05) | 0.21 | (0.27) | (0.03) | (0.30) |
| Year Ended 7/31/2020 | $12.51 | 0.31 | 0.27 | 0.58 | (0.30) | (0.02) | (0.32) |
| Year Ended 7/31/2019 | $12.12 | 0.34 | 0.41 | 0.75 | (0.34) | (0.02) | (0.36) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
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 7/31/2023 | $11.53 | 0.08% | 0.84%(c) | 0.80%(c),(d) | 1.96% | 10% | $27,181 |
| Year Ended 7/31/2022 | $11.75 | (5.83%) | 0.84% | 0.81%(d) | 1.76% | 11% | $36,636 |
| Year Ended 7/31/2021 | $12.70 | 1.38% | 0.84% | 0.81%(d) | 1.81% | 5% | $44,606 |
| Year Ended 7/31/2020 | $12.79 | 4.52% | 0.84% | 0.81%(d) | 2.16% | 9% | $45,868 |
| Year Ended 7/31/2019 | $12.52 | 5.94% | 0.84% | 0.83% | 2.49% | 8% | $44,185 |
| Advisor Class |
| Year Ended 7/31/2023 | $11.53 | 0.25% | 0.59%(c) | 0.55%(c),(d) | 2.23% | 10% | $4,189 |
| Year Ended 7/31/2022 | $11.76 | (5.52%) | 0.59% | 0.56%(d) | 2.01% | 11% | $3,156 |
| Year Ended 7/31/2021 | $12.70 | 1.63% | 0.59% | 0.56%(d) | 2.06% | 5% | $3,238 |
| Year Ended 7/31/2020 | $12.79 | 4.78% | 0.59% | 0.56%(d) | 2.40% | 9% | $2,415 |
| Year Ended 7/31/2019 | $12.52 | 6.21% | 0.59% | 0.57% | 2.73% | 8% | $1,919 |
| Class C |
| Year Ended 7/31/2023 | $11.53 | (0.37%) | 1.29%(c) | 1.25%(c),(d) | 1.51% | 10% | $2,172 |
| Year Ended 7/31/2022 | $11.75 | (6.26%) | 1.40% | 1.26%(d) | 1.30% | 11% | $3,243 |
| Year Ended 7/31/2021 | $12.70 | 0.92% | 1.59% | 1.26%(d),(e) | 1.36% | 5% | $4,873 |
| Year Ended 7/31/2020 | $12.79 | 4.05% | 1.59% | 1.26%(d),(e) | 1.72% | 9% | $6,740 |
| Year Ended 7/31/2019 | $12.52 | 5.46% | 1.59% | 1.28%(e) | 2.05% | 8% | $8,434 |
| Institutional Class |
| Year Ended 7/31/2023 | $11.53 | 0.33% | 0.59%(c) | 0.55%(c),(d) | 2.21% | 10% | $198,557 |
| Year Ended 7/31/2022 | $11.75 | (5.60%) | 0.59% | 0.56%(d) | 2.01% | 11% | $241,308 |
| Year Ended 7/31/2021 | $12.70 | 1.63% | 0.59% | 0.56%(d) | 2.06% | 5% | $266,298 |
| Year Ended 7/31/2020 | $12.79 | 4.78% | 0.59% | 0.56%(d) | 2.41% | 9% | $267,135 |
| Year Ended 7/31/2019 | $12.52 | 6.20% | 0.59% | 0.58% | 2.74% | 8% | $270,831 |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $11.51 | 0.35% | 0.56%(c) | 0.53%(c) | 2.25% | 10% | $47,323 |
| Year Ended 7/31/2022 | $11.73 | (5.58%) | 0.55% | 0.52% | 2.05% | 11% | $39,878 |
| Year Ended 7/31/2021 | $12.68 | 1.67% | 0.56% | 0.53% | 2.10% | 5% | $33,366 |
| Year Ended 7/31/2020 | $12.77 | 4.73% | 0.56% | 0.53% | 2.45% | 9% | $23,286 |
| Year Ended 7/31/2019 | $12.51 | 6.33% | 0.56% | 0.54% | 2.77% | 8% | $25,397 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 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 7/31/2023 | $11.77 | 0.27 | (0.24) | 0.03 | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $12.72 | 0.25 | (0.95) | (0.70) | (0.25) | — | (0.25) |
| Year Ended 7/31/2021 | $12.81 | 0.27 | (0.05) | 0.22 | (0.28) | (0.03) | (0.31) |
| Year Ended 7/31/2020 | $12.54 | 0.31 | 0.29 | 0.60 | (0.31) | (0.02) | (0.33) |
| Year Ended 7/31/2019 | $12.15 | 0.34 | 0.42 | 0.76 | (0.35) | (0.02) | (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) | Ratios include interfund lending expense which is less than 0.01%. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Ratios include the impact of voluntary waivers paid by the Investment Manager. For the periods indicated below, if the Investment Manager had not paid these voluntary waivers, the Fund’s net expense ratio would increase by: |
| | 7/31/2021 | 7/31/2020 | 7/31/2019 |
| Class C | 0.06% | 0.30% | 0.30% |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
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 7/31/2023 | $11.54 | 0.33% | 0.51%(c) | 0.48%(c) | 2.30% | 10% | $23,555 |
| Year Ended 7/31/2022 | $11.77 | (5.51%) | 0.50% | 0.48% | 2.09% | 11% | $10,718 |
| Year Ended 7/31/2021 | $12.72 | 1.72% | 0.51% | 0.48% | 2.14% | 5% | $10,242 |
| Year Ended 7/31/2020 | $12.81 | 4.86% | 0.51% | 0.48% | 2.49% | 9% | $7,945 |
| Year Ended 7/31/2019 | $12.54 | 6.37% | 0.51% | 0.49% | 2.82% | 8% | $6,909 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 25 |
Notes to Financial Statements
July 31, 2023
Note 1. Organization
Columbia Oregon Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued based on prices obtained from pricing services, which are intended to reflect 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 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 Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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. The Fund may also adjust accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. 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.
Recent accounting pronouncement
Tailored Shareholder Reports
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 27 |
Notes to Financial Statements (continued)
July 31, 2023
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will, among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month transition period after the effective date of the amendments.
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 July 31, 2023 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 "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. Prior to January 1, 2023, SS&C GIDS was known as DST Asset Manager Solutions, Inc. The Transfer Agent pays the fees of SS&C GIDS for services as sub-transfer agent and SS&C GIDS 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.
| 28 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 July 31, 2023, 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 July 31, 2023, these minimum account balance fees reduced total expenses of the Fund by $320.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rates of 0.10% and 0.45% of the average daily net assets attributable to Class A and Class C shares of the Fund, respectively.
Although the Fund may pay distribution and service fees up to a maximum annual rate of 0.35% of the Fund’s average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for shareholder services), the Fund currently limits such fees to an aggregate fee of not more than 0.25% of the Fund’s average daily net assets attributable to Class A shares.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended July 31, 2023, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 16,199 |
| Class C | — | 1.00(b) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 29 |
Notes to Financial Statements (continued)
July 31, 2023
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
November 30, 2023 |
| Class A | 0.81% |
| Advisor Class | 0.56 |
| Class C | 1.26 |
| Institutional Class | 0.56 |
| Institutional 2 Class | 0.53 |
| Institutional 3 Class | 0.48 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At July 31, 2023, these differences were primarily due to differing treatment for capital loss carryforwards, trustees’ deferred compensation, distributions and re-characterization of distributions for investments. To the extent these differences were permanent, reclassifications were made among the components of the Fund’s net assets. Temporary differences do not require reclassifications.
The following reclassifications were made:
Undistributed net
investment
income ($) | Accumulated
net realized
(loss) ($) | Paid in
capital ($) |
| (2) | 2 | — |
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.
| 30 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
The tax character of distributions paid during the years indicated was as follows:
| Year Ended July 31, 2023 | Year Ended July 31, 2022 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 2,234 | 6,756,944 | — | 6,759,178 | 1,727 | 6,943,036 | — | 6,944,763 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 1,078,496 | — | (2,085,153) | (8,304,439) |
At July 31, 2023, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 309,174,610 | 612,375 | (8,916,814) | (8,304,439) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at July 31, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended July 31, 2023, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (199,556) | (1,885,597) | (2,085,153) | — |
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 $28,866,314 and $46,461,551, respectively, for the year ended July 31, 2023. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 31 |
Notes to Financial Statements (continued)
July 31, 2023
The Fund’s activity in the Interfund Program during the year ended July 31, 2023 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Borrower | 700,000 | 4.85 | 4 |
Interest expense incurred by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at July 31, 2023.
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 27, 2022 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% 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 27, 2022 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 secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during the year ended July 31, 2023.
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 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.
| 32 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
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 Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 33 |
Notes to Financial Statements (continued)
July 31, 2023
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to the Fund.
| 34 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Oregon 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 Oregon Intermediate Municipal Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of July 31, 2023, the related statement of operations for the year ended July 31, 2023, the statement of changes in net assets for each of the two years in the period ended July 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2023 (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 July 31, 2023, 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 July 31, 2023 and the financial highlights for each of the five years in the period ended July 31, 2023 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 July 31, 2023 by correspondence with the custodian and transfer agents. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 21, 2023
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 35 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2023. Shareholders will be notified in early 2024 of the amounts for use in preparing 2023 income tax returns.
Exempt-
interest
dividends | |
| 99.97% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 173 | 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; former Board Member, Chase Bank International, 1993-1994 |
| 36 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
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-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 173 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Richard M. Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Chair since 2023; Trustee since 2007 | President, Springboard – Partners in Cross Cultural Leadership (consulting company), since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 173 | Trustee, New York Presbyterian Hospital Board, since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee), since 2019; Director, Apollo Commercial Real Estate Finance, Inc. (Chair, Nominating and Governance Committee) (financial services), since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 173 | Director, EQT Corporation (natural gas producer), since 2019; former Director, Whiting Petroleum Corporation (independent oil and gas company), 2020-2022 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | CEO and President, RhodeWay Financial (non-profit financial planning firm), since December 2022; Member, FINRA National Adjudicatory Council, since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 171 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios (former mutual fund complex), January 2015-December 2017 |
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 37 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm), since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform), since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 171 | Treasurer, Edinburgh University US Trust Board, since January 2023; Member, HBS Community Action Partners Board, since September 2022; former Director, University of Edinburgh Business School (Member of US Board), 2004-2019; former Director, Boston Public Library Foundation, 2008-2017 |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Professor of Economics and Management, Bentley University, since 2002; Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 173 | Former Trustee, MA Taxpayers Foundation, 1997-2022; former Director, The MA Business Roundtable, 2003-2019; former Chairperson, Innovation Index Advisory Committee, MA Technology Collaborative, 1997-2020 |
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 | 173 | Trustee, Catholic Schools Foundation, since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Trustee since 1996 | 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 | 173 | Director, SpartanNash Company since November 2013 (Chair of the Board, since May 2021) (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing), since August 2006; 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 | 171 | None |
| 38 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; former Chief Executive Officer of Freddie Mac and Chief Financial Officer of U.S. Bank | 171 | Director, CSX Corporation (transportation suppliers); 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; former Senior Adviser to The Carlyle Group (financial services), March 2008-September 2008; former Governance Consultant to Bridgewater Associates, January 2013-December 2015 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2004 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company), since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 173 | Director, Valmont Industries, Inc. (irrigation systems manufacturer), since 2012; Trustee, Carleton College (on the Investment Committee), since 1987; Trustee, Carnegie Endowment for International Peace (on the Investment Committee), since 2009 |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2022; Advisor, Paradigm Asset Management, November 2016-January 2022; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 171 | Independent Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2010-2021; Independent Director, (Executive Committee and Chair, Audit Committee), Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2016; Independent Director, (Investment Committee), Sarona Asset Management, since 2019 |
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 39 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 173 | Former Director, NAPE (National Alliance for Partnerships in Equity) Education Foundation, October 2016-October 2020; Advisory Board, Jennersville YMCA, since 2022 |
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 and
other relevant Board experience |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC, since April 2015; President and Principal Executive Officer of the Columbia Funds, since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 173 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since, January 2022; Director, Columbia Threadneedle Canada, Inc., since December 2022 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Funds Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Carrig, Flynn, Paglia, and Yeager serve as directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| ** | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 40 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and North America Head of Operations & Investor Services, Columbia Management Investment Advisers, LLC, since June 2023 (previously Senior Vice President and Head of Global Operations, March 2022 – June 2023, Vice President, Head of North America Operations, and Co-Head of Global Operations, June 2019 - February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds, since 2002. Director, Ameriprise Trust Company, since June 2023. |
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. |
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. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001 - January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc., since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC, since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc., since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl, since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc., since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); formerly, 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; formerly, Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds, since 2005. |
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 41 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC, since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5903 Ameriprise Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | Vice President, Global Investment Operations Services, Columbia Management Investment Advisers, LLC, since 2010; Director (since January 2007) and President (since October 2014), Columbia Management Investment Services Corp.; Director (since December 2017) and President (since January 2017), Ameriprise Trust Company. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2022 through December 31, 2022, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
| 42 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Approval of Management Agreement
(Unaudited)
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 the Columbia Oregon 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 (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) 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 (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 22, 2023 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 one or more 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; |
| • | 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 |
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 43 |
Approval of Management Agreement (continued)
(Unaudited)
| • | 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. 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.
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 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. 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 were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
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.
Investment performance
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 Fund’s performance relative to peers and benchmarks and (iii) 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.
| 44 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
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 the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. 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.
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, 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.
Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023
| 45 |
Approval of Management Agreement (continued)
(Unaudited)
On June 22, 2023, 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.
| 46 | Columbia Oregon Intermediate Municipal Bond Fund | Annual Report 2023 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Oregon 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.
© 2023 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
July 31, 2023
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Tax-Exempt 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, is available on columbiathreadneedleus.com/investor/ or 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 Tax-Exempt Fund | Annual Report 2023
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks total return, consisting of current income exempt from federal income tax and of capital appreciation, consistent with moderate fluctuation of principal.
Portfolio management
Catherine Stienstra
Co-Portfolio Manager
Managed Fund since 2018
Douglas J. White, CFA
Co-Portfolio Manager
Managed Fund since 2022
| Average annual total returns (%) (for the period ended July 31, 2023) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A | Excluding sales charges | 11/21/78 | -0.38 | 0.93 | 2.52 |
| | Including sales charges | | -3.40 | 0.32 | 2.21 |
| Advisor Class | 03/19/13 | -0.18 | 1.13 | 2.73 |
| Class C | Excluding sales charges | 08/01/97 | -0.98 | 0.31 | 1.90 |
| | Including sales charges | | -1.94 | 0.31 | 1.90 |
| Institutional Class | 09/16/05 | -0.09 | 1.15 | 2.73 |
| Institutional 2 Class* | 12/11/13 | -0.08 | 1.16 | 2.75 |
| Institutional 3 Class* | 03/01/17 | -0.02 | 1.20 | 2.69 |
| Bloomberg Municipal Bond Index | | 0.93 | 1.87 | 2.81 |
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 Municipal Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Tax-Exempt Fund | Annual Report 2023
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (July 31, 2013 — July 31, 2023)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Tax-Exempt Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Quality breakdown (%) (at July 31, 2023) |
| AAA rating | 6.2 |
| AA rating | 22.1 |
| A rating | 41.0 |
| BBB rating | 16.3 |
| BB rating | 3.6 |
| Not rated | 10.8 |
| 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 July 31, 2023) |
| Texas | 11.8 |
| Illinois | 11.3 |
| Pennsylvania | 9.8 |
| New York | 7.7 |
| Colorado | 4.7 |
| California | 4.5 |
| Florida | 4.1 |
| New Jersey | 3.8 |
| Michigan | 3.6 |
| Puerto Rico | 2.4 |
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 Tax-Exempt Fund | Annual Report 2023 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended July 31, 2023, Class A shares of Columbia Tax-Exempt Fund returned -0.38% excluding sales charges. Institutional Class shares of the Fund returned -0.09%. The Fund’s benchmark, the Bloomberg Municipal Bond Index, returned 0.93%.
Market overview
The municipal bond market experienced significant volatility during the annual period, impacted primarily by efforts of the U.S. Federal Reserve (Fed) to return inflation to its target levels and the resultant dramatic increase in interest rates. As the period began in August 2022, the benchmark saw broad-based negative returns, followed by its worst September monthly return on record. The municipal bond market then delivered positive performance in the fourth calendar quarter. The Fed’s aggressive hiking campaign showed initial signs of cooling, boosting investor sentiment and driving a long-awaited relief rally that continued into January 2023. Unfortunately, sentiment quickly unwound in February, as the market reconsidered the persistence of inflation and a still too strong labor market. A more hawkish Fed led to a sell-off in U.S. Treasury and municipal bond yields alike. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
Then came March 2023 when, partially driven by higher interest rates, an unforeseen banking crisis unfolded, with three U.S. regional banks and Credit Suisse in need of rescue in quick succession. The weakness in the banking sector led to municipal bond yields moving lower and, in turn, solid positive first calendar quarter returns for the benchmark. Both U.S. Treasury and municipal bond yields then rose during the second quarter of 2023, as the regional banking crisis ebbed and the focus on the Fed’s tightening monetary policy reignited. For the first time since it started hiking in March 2022, the Fed did not raise rates at its June 2023 meeting. However, in late July, the Fed approved another rate hike, its 11th of the current cycle, bringing its targeted federal funds rate to its highest level in more than 22 years. Further, the Fed indicated additional interest rate increases may be implemented before year end. The benchmark posted a modestly negative return for the second quarter of 2023 but a moderately positive return for July, as performance was broadly positive across maturities, credit ratings and states for the month amid a consensus shift in favor of a soft landing with a recession no longer imminent. Notably, the municipal bond market outperformed both U.S. Treasuries and the broad U.S. fixed-income market for the last five months of the period and did so even more significantly for the annual period overall.
The Fund’s notable detractors during the period
| • | Detracting most from the Fund’s relative results was a position in the bonds of PREPA, the Puerto Rico Electric Power Authority. |
| ○ | The utility company had entered bankruptcy in July 2017 with just more than $8 billion in outstanding bonds. |
| ○ | In late June 2023, investors were blindsided when the bankruptcy court ruled that bondholders could claim just less than 29% of the value of the utility’s outstanding debt. Bondholders have already begun to work on an appeal. |
| • | From a sector perspective, the Fund’s overweight in the continuing care retirement communities (CCRC) sector detracted from results relative to the benchmark. CCRCs were negatively affected by the lingering effects of the COVID-19 pandemic as well as by some of the labor costs and labor shortages impacting the health care sector broadly. |
| • | Fund overweights in non-rated municipal bonds and in bonds rated below B dampened relative results, as non-rated and B-rated categories posted negative returns for the period, while bonds rated BB and all investment-grade rating categories posted positive returns. |
| • | Issue selection within the CCRC and airport sectors, among BBB-rated bonds and among bonds with maturities of 12 years and longer detracted. |
The Fund’s notable contributors during the period
| • | Having an overweight to BBB-rated bonds contributed positively, as this credit quality segment was the best performing investment-grade rating category during the period, even outperforming some of the higher quality high-yield rating categories. |
Columbia Tax-Exempt Fund | Annual Report 2023
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
| ○ | To a lesser degree, the Fund’s overweight in bonds rated A and its underweights in bonds rated AA and AAA also helped. |
| • | Yield curve positioning proved beneficial. |
| ○ | Having an overweight to bonds with maturities of 17 years and longer and an underweight to bonds with maturities of six years and shorter particularly helped. |
| ○ | While the best performing maturity segment of the municipal bond yield curve during the period was bonds with maturities of 12 to 17 years, longer maturity bonds were the next best. Six year and shorter maturity bonds posted negative returns during the period. |
| • | Security selection in the toll roads, state general obligation and leasing sectors added value. |
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. 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. A rise in interest rates may result in a price decline of fixed-income instruments held by the Fund, negatively impacting its performance and NAV. Falling rates may result in the Fund investing in lower yielding debt instruments, lowering the Fund’s income and yield. These risks may be heightened for longer maturity and duration securities. Federal and state tax rules apply to capital gain distributions and any gains or losses on sales. Income may be subject to state, local or alternative minimum taxes. 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 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 Tax-Exempt Fund | Annual Report 2023 |
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| February 1, 2023 — July 31, 2023 |
| | Account value at the
beginning of the
period ($) | 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 | 1,000.30 | 1,021.08 | 3.72 | 3.76 | 0.75 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,001.30 | 1,022.07 | 2.73 | 2.76 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 997.30 | 1,018.10 | 6.69 | 6.76 | 1.35 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,002.20 | 1,022.07 | 2.73 | 2.76 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,002.20 | 1,022.17 | 2.63 | 2.66 | 0.53 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,001.70 | 1,022.36 | 2.43 | 2.46 | 0.49 |
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 Tax-Exempt Fund | Annual Report 2023
| 7 |
Portfolio of Investments
July 31, 2023
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 100.0% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Alabama 0.2% |
| Black Belt Energy Gas District(a) |
| Refunding Revenue Bonds |
| Gas Project |
| Series 2023D-1 (Mandatory Put 02/01/29) |
| 05/31/2049 | 5.500% | | 3,200,000 | 3,369,287 |
| Alaska 0.1% |
| Northern Tobacco Securitization Corp. |
| Refunding Revenue Bonds |
| Series 2021A Class 1 |
| 06/01/2050 | 4.000% | | 2,500,000 | 2,210,229 |
| Arizona 2.1% |
| Arizona Health Facilities Authority |
| Refunding Revenue Bonds |
| Scottsdale Lincoln Hospital Project |
| Series 2014 |
| 12/01/2042 | 5.000% | | 5,000,000 | 5,013,109 |
| Arizona Industrial Development Authority |
| Revenue Bonds |
| Macombs Facility Project Social Bonds |
| Series 2021A |
| 07/01/2051 | 4.000% | | 850,000 | 711,376 |
| Social Bonds - Macombs Facility Project |
| Series 2021A |
| 07/01/2061 | 4.000% | | 2,500,000 | 2,005,229 |
| Industrial Development Authority of the City of Phoenix (The) |
| Revenue Bonds |
| Downtown Phoenix Student Housing II LLC - Arizona State University Project |
| Series 2019 |
| 07/01/2044 | 5.000% | | 1,000,000 | 1,007,016 |
| 07/01/2049 | 5.000% | | 1,125,000 | 1,125,521 |
| Industrial Development Authority of the County of Pima (The)(b) |
| Refunding Revenue Bonds |
| American Leadership Academy |
| Series 2022 |
| 06/15/2051 | 4.000% | | 1,300,000 | 965,514 |
| Industrial Development Authority of the County of Yavapai (The) |
| Refunding Revenue Bonds |
| Yavapai Regional Medical Center |
| Series 2019 |
| 08/01/2038 | 4.000% | | 1,000,000 | 972,999 |
| La Paz County Industrial Development Authority |
| Revenue Bonds |
| Charter School Solutions - Harmony Public Schools Project |
| Series 2018 |
| 02/15/2038 | 5.000% | | 825,000 | 828,462 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Salt River Project Agricultural Improvement & Power District |
| Revenue Bonds |
| Series 2023A |
| 01/01/2050 | 5.000% | | 22,500,000 | 24,686,275 |
| Salt Verde Financial Corp. |
| Revenue Bonds |
| Series 2007 |
| 12/01/2032 | 5.000% | | 7,170,000 | 7,597,516 |
| Total | 44,913,017 |
| California 4.5% |
| California Community Choice Financing Authority |
| Revenue Bonds |
| Green Bonds - Clean Energy Project |
| Series 2023 (Mandatory Put 08/01/29) |
| 07/01/2053 | 5.000% | | 5,700,000 | 5,979,451 |
| California Health Facilities Financing Authority |
| Refunding Revenue Bonds |
| Sutter Health |
| Series 2016B |
| 11/15/2041 | 4.000% | | 10,000,000 | 10,014,176 |
| Revenue Bonds |
| Kaiser Permanente |
| Subordinated Series 2017A-2 |
| 11/01/2044 | 4.000% | | 10,000,000 | 9,858,847 |
| California Municipal Finance Authority |
| Refunding Revenue Bonds |
| Community Medical Centers |
| Series 2017A |
| 02/01/2036 | 5.000% | | 1,500,000 | 1,557,474 |
| 02/01/2037 | 5.000% | | 1,000,000 | 1,033,798 |
| California Municipal Finance Authority(b),(c),(d) |
| Revenue Bonds |
| UTS Renewable Energy-Waste Water Facilities |
| Series 2011 |
| 12/01/2032 | 0.000% | | 1,830,000 | 36,600 |
| California Public Finance Authority |
| Refunding Revenue Bonds |
| Sharp Healthcare |
| Series 2017A |
| 08/01/2047 | 4.000% | | 10,000,000 | 9,871,362 |
| California School Finance Authority(b) |
| Prerefunded 07/01/25 Revenue Bonds |
| River Springs Charter School Project |
| Series 2015 |
| 07/01/2046 | 6.375% | | 150,000 | 157,844 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| California State Public Works Board |
| Revenue Bonds |
| Various Correctional Facilities |
| Series 2014A |
| 09/01/2039 | 5.000% | | 7,000,000 | 7,116,101 |
| California Statewide Communities Development Authority(b) |
| Revenue Bonds |
| California Baptist University |
| Series 2014A |
| 11/01/2033 | 6.125% | | 1,560,000 | 1,568,191 |
| 11/01/2043 | 6.375% | | 1,035,000 | 1,039,148 |
| Lancer Plaza Project |
| Series 2013 |
| 11/01/2043 | 5.875% | | 1,875,000 | 1,877,689 |
| California Statewide Communities Development Authority |
| Revenue Bonds |
| Loma Linda University Medical Center |
| Series 2014 |
| 12/01/2044 | 5.250% | | 3,500,000 | 3,490,920 |
| Castaic Lake Water Agency(e) |
| Certificate of Participation |
| Capital Appreciation - Water System Improvement Project |
| Series 1999 (AMBAC) |
| 08/01/2024 | 0.000% | | 9,445,000 | 9,115,621 |
| Golden State Tobacco Securitization Corp.(e) |
| Refunding Revenue Bonds |
| Subordinated Series 2021B-2 |
| 06/01/2066 | 0.000% | | 10,000,000 | 1,073,100 |
| Golden State Tobacco Securitization Corp. |
| Refunding Revenue Bonds |
| Tobacco Settlement |
| Series 2022 |
| 06/01/2051 | 5.000% | | 3,000,000 | 3,124,164 |
| Los Angeles Department of Water & Power Water System |
| Refunding Revenue Bonds |
| Series 2022D |
| 07/01/2052 | 5.000% | | 3,500,000 | 3,832,281 |
| Norwalk-La Mirada Unified School District(e) |
| Unlimited General Obligation Bonds |
| Capital Appreciation |
| Series 2005B (NPFGC) |
| 08/01/2023 | 0.000% | | 9,790,000 | 9,789,127 |
| Palomar Health |
| Refunding Revenue Bonds |
| Series 2016 |
| 11/01/2036 | 5.000% | | 4,605,000 | 4,716,473 |
| San Francisco City & County Airport Commission - San Francisco International Airport(c) |
| Unrefunded Revenue Bonds |
| Series 2014A |
| 05/01/2044 | 5.000% | | 10,000,000 | 10,043,700 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| State of California |
| Unlimited General Obligation Bonds |
| Series 2022 |
| 09/01/2052 | 5.000% | | 3,000,000 | 3,308,737 |
| Unrefunded Unlimited General Obligation Bonds |
| Series 2004 |
| 04/01/2029 | 5.300% | | 6,000 | 6,014 |
| West Contra Costa Unified School District |
| Unlimited General Obligation Refunding Bonds |
| Series 2001B (NPFGC) |
| 08/01/2024 | 6.000% | | 410,000 | 415,667 |
| Total | 99,026,485 |
| Colorado 4.7% |
| City & County of Denver Airport System(c) |
| Refunding Revenue Bonds |
| Series 2022D |
| 11/15/2053 | 5.000% | | 3,000,000 | 3,128,739 |
| Subordinated Series 2018A |
| 12/01/2048 | 4.000% | | 11,500,000 | 10,738,270 |
| Revenue Bonds |
| Series 2022A |
| 11/15/2047 | 5.000% | | 3,750,000 | 3,941,777 |
| 11/15/2053 | 5.500% | | 2,400,000 | 2,635,692 |
| Colorado Bridge Enterprise(c) |
| Revenue Bonds |
| Central 70 Project |
| Series 2017 |
| 06/30/2051 | 4.000% | | 9,240,000 | 8,280,486 |
| Colorado Educational & Cultural Facilities Authority(b) |
| Improvement Refunding Revenue Bonds |
| Skyview Charter School |
| Series 2014 |
| 07/01/2034 | 5.125% | | 1,525,000 | 1,528,233 |
| 07/01/2044 | 5.375% | | 2,100,000 | 2,080,379 |
| 07/01/2049 | 5.500% | | 925,000 | 914,874 |
| Colorado Health Facilities Authority |
| Improvement Refunding Revenue Bonds |
| Bethesda Project |
| Series 2018 |
| 09/15/2048 | 5.000% | | 15,000,000 | 13,277,691 |
| 09/15/2053 | 5.000% | | 10,000,000 | 8,726,005 |
| Refunding Revenue Bonds |
| CommonSpirit Health |
| Series 2019A |
| 08/01/2049 | 4.000% | | 8,640,000 | 7,862,312 |
| Covenant Retirement Communities |
| Series 2015 |
| 12/01/2035 | 5.000% | | 3,800,000 | 3,825,782 |
| Intermountain Healthcare |
| Series 2022 |
| 05/15/2052 | 5.000% | | 14,000,000 | 14,828,206 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 9 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Aberdeen Ridge |
| Series 2021A |
| 05/15/2044 | 5.000% | | 2,250,000 | 1,775,201 |
| CommonSpirit Health Obligation Group |
| Series 2022 |
| 11/01/2052 | 5.250% | | 4,000,000 | 4,166,990 |
| NJH-SJH Center for Outpatient Health |
| Series 2019 |
| 01/01/2050 | 4.000% | | 15,105,000 | 14,269,725 |
| Fiddlers Business Improvement District(b) |
| Unlimited General Obligation Refunding Bonds |
| Series 2022 |
| 12/01/2047 | 5.550% | | 800,000 | 806,472 |
| Total | 102,786,834 |
| Connecticut 0.1% |
| Connecticut State Health & Educational Facilities Authority(b) |
| Revenue Bonds |
| Church Home of Hartford, Inc. |
| Series 2016 |
| 09/01/2046 | 5.000% | | 1,250,000 | 1,019,683 |
| District of Columbia 1.2% |
| District of Columbia |
| Refunding Revenue Bonds |
| Friendship Public Charter School |
| Series 2016 |
| 06/01/2046 | 5.000% | | 1,385,000 | 1,385,282 |
| Revenue Bonds |
| KIPP DC Project |
| Series 2019 |
| 07/01/2044 | 4.000% | | 1,240,000 | 1,075,911 |
| Unlimited General Obligation Bonds |
| Series 2023A |
| 01/01/2045 | 5.000% | | 6,000,000 | 6,694,934 |
| 01/01/2048 | 5.250% | | 5,000,000 | 5,637,579 |
| Metropolitan Washington Airports Authority(c) |
| Refunding Revenue Bonds |
| Series 2023A |
| 10/01/2048 | 5.250% | | 3,000,000 | 3,221,391 |
| Metropolitan Washington Airports Authority Dulles Toll Road |
| Refunding Revenue Bonds |
| Dulles Metrorail |
| Subordinated Series 2019 |
| 10/01/2049 | 4.000% | | 7,950,000 | 7,497,398 |
| Total | 25,512,495 |
| Florida 4.1% |
| Capital Trust Agency, Inc.(b) |
| 04/27/2021 |
| 07/01/2056 | 5.000% | | 2,625,000 | 2,355,338 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Capital Trust Agency, Inc.(b),(d) |
| Revenue Bonds |
| 1st Mortgage Tallahassee Tapestry Senior Housing Project |
| Series 2015 |
| 12/01/2045 | 0.000% | | 3,760,000 | 1,231,400 |
| 12/01/2050 | 0.000% | | 1,000,000 | 327,500 |
| Capital Trust Agency, Inc.(b),(e) |
| Revenue Bonds |
| WFCS Portfolio Project |
| Subordinated Series 2021 |
| 01/01/2061 | 0.000% | | 5,600,000 | 287,079 |
| Central Florida Expressway Authority |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2016B |
| 07/01/2039 | 4.000% | | 10,500,000 | 10,319,560 |
| City of Atlantic Beach |
| Revenue Bonds |
| Fleet Landing Project |
| Series 2018 |
| 11/15/2048 | 5.000% | | 2,500,000 | 2,119,221 |
| County of Broward Airport System(c) |
| Revenue Bonds |
| Series 2015A |
| 10/01/2045 | 5.000% | | 14,000,000 | 14,083,993 |
| County of Miami-Dade Aviation(c) |
| Refunding Revenue Bonds |
| Series 2014A |
| 10/01/2033 | 5.000% | | 5,000,000 | 5,042,874 |
| County of Osceola Transportation(e) |
| Refunding Revenue Bonds |
| Series 2020A-2 |
| 10/01/2040 | 0.000% | | 4,650,000 | 2,033,031 |
| 10/01/2041 | 0.000% | | 2,500,000 | 1,032,620 |
| 10/01/2042 | 0.000% | | 3,250,000 | 1,265,561 |
| 10/01/2043 | 0.000% | | 2,750,000 | 1,012,574 |
| 10/01/2044 | 0.000% | | 3,000,000 | 1,040,899 |
| 10/01/2046 | 0.000% | | 3,000,000 | 926,249 |
| 10/01/2048 | 0.000% | | 4,000,000 | 1,097,158 |
| Florida Development Finance Corp.(b) |
| Revenue Bonds |
| Renaissance Charter School, Inc. Projects |
| Series 2015 |
| 06/15/2035 | 6.000% | | 4,000,000 | 4,027,709 |
| Florida Housing Finance Corp. |
| Revenue Bonds |
| Series 2018 (GNMA) |
| 07/01/2043 | 3.800% | | 1,395,000 | 1,370,828 |
| Hillsborough County Aviation Authority(c) |
| Revenue Bonds |
| Tampa International Airport |
| Series 2022 |
| 10/01/2052 | 4.000% | | 2,645,000 | 2,473,049 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Subordinated Series 2018 |
| 10/01/2048 | 5.000% | | 5,550,000 | 5,669,156 |
| Miami-Dade County Expressway Authority |
| Revenue Bonds |
| Series 2014A |
| 07/01/2044 | 5.000% | | 5,000,000 | 5,008,500 |
| Mid-Bay Bridge Authority |
| Refunding Revenue Bonds |
| Series 2015A |
| 10/01/2035 | 5.000% | | 3,765,000 | 3,816,970 |
| Palm Beach County Health Facilities Authority |
| Refunding Revenue Bonds |
| Toby & Leon Cooperman Sinai |
| Series 2022 |
| 06/01/2041 | 4.000% | | 1,000,000 | 787,413 |
| Polk County Industrial Development Authority |
| Refunding Revenue Bonds |
| Carpenter’s Home Estates |
| Series 2019 |
| 01/01/2039 | 5.000% | | 1,700,000 | 1,585,541 |
| Putnam County Development Authority |
| Refunding Revenue Bonds |
| Seminole Project |
| Series 2018A |
| 03/15/2042 | 5.000% | | 6,665,000 | 6,927,072 |
| Sarasota County Public Hospital District |
| Refunding Revenue Bonds |
| Sarasota Memorial Hospital |
| Series 1998B (NPFGC) |
| 07/01/2028 | 5.500% | | 1,980,000 | 2,104,513 |
| Seminole County Industrial Development Authority |
| Refunding Revenue Bonds |
| Legacy Pointe at UCF Project |
| Series 2019 |
| 11/15/2049 | 5.500% | | 4,200,000 | 3,241,172 |
| Tampa Sports Authority |
| Sales Tax Revenue Bonds |
| Tampa Bay Arena Project |
| Series 1995 (NPFGC) |
| 10/01/2025 | 5.750% | | 1,340,000 | 1,380,543 |
| Tampa-Hillsborough County Expressway Authority |
| Refunding Revenue Bonds |
| Series 2017B |
| 07/01/2042 | 4.000% | | 7,785,000 | 7,639,125 |
| Total | 90,206,648 |
| Georgia 2.2% |
| Fulton County Residential Care Facilities for the Elderly Authority |
| Refunding Revenue Bonds |
| Lenbrook Square Foundation, Inc. |
| Series 2016 |
| 07/01/2036 | 5.000% | | 3,500,000 | 3,470,295 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Georgia State Road & Tollway Authority(b),(e) |
| Revenue Bonds |
| I-75 S Express Lanes Project |
| Series 2014 Escrowed to Maturity |
| 06/01/2024 | 0.000% | | 130,000 | 126,406 |
| Main Street Natural Gas, Inc. |
| Revenue Bonds |
| Series 2022B (Mandatory Put 06/01/29) |
| 12/01/2052 | 5.000% | | 10,000,000 | 10,332,317 |
| Series 2023A (Mandatory Put 06/01/30) |
| 06/01/2053 | 5.000% | | 13,300,000 | 13,757,349 |
| Series 2023C (Mandatory Put 09/01/30) |
| 08/31/2053 | 5.000% | | 4,500,000 | 4,730,352 |
| Metropolitan Atlanta Rapid Transit Authority |
| Refunding Revenue Bonds |
| Series 2007A (AMBAC) |
| 07/01/2026 | 5.250% | | 1,000,000 | 1,062,261 |
| Municipal Electric Authority of Georgia |
| Revenue Bonds |
| Plant Vogtle Units 3&4 Project |
| Series 2022 |
| 07/01/2063 | 5.500% | | 5,300,000 | 5,507,642 |
| Series 2022 (AGM) |
| 07/01/2052 | 5.000% | | 5,300,000 | 5,434,892 |
| Oconee County Industrial Development Authority |
| Revenue Bonds |
| Presbyterian Village Athens Project |
| Series 2018 |
| 12/01/2048 | 6.250% | | 2,945,000 | 2,541,662 |
| Total | 46,963,176 |
| Idaho 1.0% |
| Idaho Health Facilities Authority |
| Refunding Revenue Bonds |
| St. Luke’s Health System Project |
| Series 2018 |
| 03/01/2038 | 4.000% | | 3,650,000 | 3,530,180 |
| Series 2021 |
| 03/01/2040 | 4.000% | | 810,000 | 775,423 |
| 03/01/2041 | 4.000% | | 750,000 | 711,578 |
| 03/01/2051 | 4.000% | | 2,000,000 | 1,764,529 |
| Revenue Bonds |
| Taxable - Terraces of Boise Project |
| Series 2021 |
| 10/01/2039 | 4.250% | | 9,135,000 | 6,960,966 |
| Terraces of Boise Project |
| Series 2021 |
| 10/01/2050 | 4.500% | | 10,000,000 | 7,034,077 |
| Total | 20,776,753 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 11 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Illinois 11.3% |
| Chicago Board of Education(b) |
| Unlimited General Obligation Bonds |
| Dedicated |
| Series 2017A |
| 12/01/2046 | 7.000% | | 10,765,000 | 11,599,956 |
| Chicago Board of Education |
| Unlimited General Obligation Bonds |
| Series 2018 |
| 12/01/2046 | 5.000% | | 5,000,000 | 4,898,328 |
| Series 2022A |
| 12/01/2047 | 5.000% | | 6,875,000 | 6,798,196 |
| Chicago Midway International Airport(c) |
| Refunding Revenue Bonds |
| 2nd Lien |
| Series 2014A |
| 01/01/2041 | 5.000% | | 10,000,000 | 10,001,082 |
| Chicago O’Hare International Airport(c) |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2018A |
| 01/01/2048 | 5.000% | | 7,455,000 | 7,640,070 |
| Revenue Bonds |
| General Senior Lien |
| Series 2017D |
| 01/01/2052 | 5.000% | | 7,620,000 | 7,715,595 |
| Senior Lien |
| Series 2022 |
| 01/01/2048 | 4.500% | | 3,000,000 | 2,965,828 |
| 01/01/2055 | 5.000% | | 11,250,000 | 11,591,935 |
| Series 2015C |
| 01/01/2046 | 5.000% | | 12,525,000 | 12,536,368 |
| TriPs Obligated Group |
| Series 2018 |
| 07/01/2048 | 5.000% | | 2,400,000 | 2,400,131 |
| Chicago O’Hare International Airport |
| Revenue Bonds |
| Series 2015D |
| 01/01/2046 | 5.000% | | 7,310,000 | 7,341,391 |
| City of Chicago Wastewater Transmission |
| Refunding Revenue Bonds |
| 2nd Lien |
| Series 2015C |
| 01/01/2034 | 5.000% | | 1,250,000 | 1,270,198 |
| 01/01/2039 | 5.000% | | 2,970,000 | 2,996,226 |
| Revenue Bonds |
| 2nd Lien |
| Series 2014 |
| 01/01/2044 | 5.000% | | 4,000,000 | 3,989,783 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| City of Chicago Waterworks |
| Revenue Bonds |
| 2nd Lien |
| Series 2014 |
| 11/01/2039 | 5.000% | | 2,000,000 | 2,020,171 |
| 11/01/2044 | 5.000% | | 2,850,000 | 2,871,381 |
| Cook County Community College District No. 508 |
| Unlimited General Obligation Bonds |
| Chicago City Colleges |
| Series 2017 (BAM) |
| 12/01/2047 | 5.000% | | 9,400,000 | 9,722,768 |
| Illinois Finance Authority |
| Refunding Revenue Bonds |
| Northshore University Health System |
| Series 2020A |
| 08/15/2040 | 4.000% | | 1,750,000 | 1,713,080 |
| Silver Cross Hospital & Medical Centers |
| Series 2015C |
| 08/15/2044 | 5.000% | | 9,400,000 | 9,407,041 |
| Illinois Housing Development Authority |
| Revenue Bonds |
| Series 2019D (GNMA) |
| 10/01/2039 | 2.950% | | 515,000 | 513,501 |
| Illinois State Toll Highway Authority |
| Revenue Bonds |
| Series 2019A |
| 01/01/2044 | 4.000% | | 5,000,000 | 4,932,375 |
| Metropolitan Pier & Exposition Authority(e) |
| Refunding Revenue Bonds |
| McCormick Place Expansion |
| Series 2022 |
| 12/15/2039 | 0.000% | | 3,000,000 | 1,446,447 |
| 12/15/2040 | 0.000% | | 3,050,000 | 1,392,752 |
| 12/15/2041 | 0.000% | | 2,200,000 | 952,065 |
| McCormick Place Expansion Project |
| Series 2012 (BAM) |
| 12/15/2051 | 0.000% | | 19,000,000 | 5,069,303 |
| Metropolitan Pier & Exposition Authority |
| Refunding Revenue Bonds |
| McCormick Place Expansion |
| Series 2022 |
| 06/15/2052 | 4.000% | | 3,000,000 | 2,732,837 |
| McCormick Place Expansion Project |
| Series 2020 |
| 06/15/2050 | 4.000% | | 2,400,000 | 2,205,412 |
| Metropolitan Water Reclamation District of Greater Chicago |
| Limited General Obligation Refunding Bonds |
| Series 2007C |
| 12/01/2033 | 5.250% | | 13,210,000 | 16,122,986 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Regional Transportation Authority |
| Revenue Bonds |
| Series 2002A (NPFGC) |
| 07/01/2031 | 6.000% | | 5,400,000 | 6,571,591 |
| State of Illinois |
| Prerefunded 08/08/23 Unlimited General Obligation Bonds |
| Series 2013A |
| 03/31/2036 | 5.000% | | 5,000,000 | 5,001,278 |
| Unlimited General Obligation Bonds |
| 1st Series 2001 (NPFGC) |
| 11/01/2026 | 6.000% | | 3,000,000 | 3,142,695 |
| Rebuild Illinois Program |
| Series 2019B |
| 11/01/2039 | 4.000% | | 7,580,000 | 7,427,581 |
| Series 2019C |
| 11/01/2042 | 4.000% | | 9,925,000 | 9,493,563 |
| 11/01/2043 | 4.000% | | 3,000,000 | 2,856,006 |
| 11/01/2044 | 4.000% | | 2,000,000 | 1,891,145 |
| Series 2014 |
| 02/01/2039 | 5.000% | | 15,000,000 | 15,042,337 |
| Series 2016 |
| 11/01/2030 | 5.000% | | 5,975,000 | 6,238,055 |
| Series 2020 |
| 05/01/2039 | 5.500% | | 2,705,000 | 2,956,398 |
| Series 2020C |
| 05/01/2024 | 5.500% | | 1,000,000 | 1,013,549 |
| Series 2022A |
| 03/01/2047 | 5.500% | | 19,000,000 | 20,690,040 |
| Series 2023B |
| 05/01/2047 | 5.500% | | 1,750,000 | 1,907,533 |
| 05/01/2048 | 4.500% | | 600,000 | 598,250 |
| Unlimited General Obligation Refunding Bonds |
| Series 2018-A |
| 10/01/2033 | 5.000% | | 6,000,000 | 6,413,813 |
| Total | 246,091,040 |
| Indiana 0.0% |
| Indiana Housing & Community Development Authority |
| Refunding Revenue Bonds |
| Series 2020B-1 (GNMA) |
| 07/01/2039 | 2.050% | | 110,000 | 99,861 |
| Iowa 1.3% |
| Iowa Finance Authority |
| Refunding Revenue Bonds |
| Iowa Fertilizer Co. Project |
| Series 2022 |
| 12/01/2050 | 5.000% | | 6,900,000 | 6,966,158 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Lifespace Communities, Inc. |
| Series 2021 |
| 05/15/2046 | 4.000% | | 6,890,000 | 4,443,812 |
| 05/15/2053 | 4.000% | | 12,790,000 | 7,659,130 |
| Revenue Bonds |
| Council Bluffs, Inc. Project |
| Series 2018 |
| 08/01/2033 | 5.000% | | 500,000 | 447,184 |
| 08/01/2038 | 5.000% | | 500,000 | 415,784 |
| Lifespace Communities, Inc. |
| Series 2018A |
| 05/15/2048 | 5.000% | | 9,275,000 | 6,888,201 |
| PEFA, Inc. |
| Revenue Bonds |
| Series 2019 (Mandatory Put 09/01/26) |
| 09/01/2049 | 5.000% | | 2,500,000 | 2,545,792 |
| Total | 29,366,061 |
| Kentucky 0.5% |
| Kentucky Economic Development Finance Authority |
| Refunding Revenue Bonds |
| Owensboro Health System |
| Series 2017A |
| 06/01/2041 | 5.000% | | 1,750,000 | 1,737,232 |
| Kentucky Municipal Power Agency |
| Refunding Revenue Bonds |
| Forward Delivery Prairie State Project |
| Series 2020 |
| 09/01/2035 | 5.000% | | 1,080,000 | 1,148,517 |
| Series 2015A |
| 09/01/2042 | 5.000% | | 6,600,000 | 6,606,392 |
| Kentucky State Property & Building Commission |
| Revenue Bonds |
| Project #119 |
| Series 2018 (BAM) |
| 05/01/2034 | 5.000% | | 2,000,000 | 2,172,252 |
| Total | 11,664,393 |
| Louisiana 2.3% |
| Louisiana Public Facilities Authority |
| Prerefunded 05/15/26 Revenue Bonds |
| Ochsner Clinic Foundation Project |
| Series 2016 |
| 05/15/2035 | 4.000% | | 25,000 | 25,542 |
| 05/15/2041 | 4.000% | | 25,000 | 25,542 |
| 05/15/2047 | 5.000% | | 15,000 | 15,722 |
| Refunding Revenue Bonds |
| Ochsner Clinic Foundation Project |
| Series 2016 |
| 05/15/2047 | 5.000% | | 1,185,000 | 1,200,440 |
| Series 2017 |
| 05/15/2036 | 5.000% | | 1,750,000 | 1,816,414 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 13 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Provident Group - Flagship Properties |
| Series 2017 |
| 07/01/2047 | 5.000% | | 1,400,000 | 1,422,069 |
| 07/01/2052 | 5.000% | | 1,600,000 | 1,617,059 |
| Louisiana Public Facilities Authority(c) |
| Revenue Bonds |
| Impala Warehousing LLC Project |
| Series 2013 |
| 07/01/2036 | 6.500% | | 16,695,000 | 16,711,752 |
| New Orleans Aviation Board(c) |
| Revenue Bonds |
| General Airport-North Terminal |
| Series 2017B |
| 01/01/2048 | 5.000% | | 3,725,000 | 3,762,323 |
| Series 2015B |
| 01/01/2045 | 5.000% | | 21,150,000 | 21,168,493 |
| Parish of St. James(b) |
| Revenue Bonds |
| Nustar Logistics LP Project |
| Series 2011 (Mandatory Put 06/01/25) |
| 08/01/2041 | 5.850% | | 2,500,000 | 2,556,726 |
| Total | 50,322,082 |
| Maryland 0.9% |
| Maryland Community Development Administration |
| Refunding Revenue Bonds |
| Series 2019B |
| 09/01/2034 | 3.000% | | 3,000,000 | 2,772,196 |
| Revenue Bonds |
| Series 2019C |
| 09/01/2034 | 2.700% | | 4,000,000 | 3,605,704 |
| Maryland Economic Development Corp.(c) |
| Revenue Bonds |
| Green Bonds - Purple Line Light Rail Project |
| Series 2022 |
| 06/30/2055 | 5.250% | | 5,000,000 | 5,113,887 |
| Maryland Economic Development Corp. |
| Tax Allocation Bonds |
| Port Covington Project |
| Series 2020 |
| 09/01/2040 | 4.000% | | 875,000 | 782,685 |
| Maryland Health & Higher Educational Facilities Authority |
| Refunding Revenue Bonds |
| Mercy Medical Center |
| Series 2016A |
| 07/01/2042 | 4.000% | | 5,250,000 | 4,830,388 |
| Meritus Medical Center Issue |
| Series 2015 |
| 07/01/2045 | 5.000% | | 3,000,000 | 3,032,470 |
| Total | 20,137,330 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Massachusetts 1.1% |
| Commonwealth of Massachusetts |
| Refunding Revenue Bonds |
| Series 2005 (NPFGC) |
| 01/01/2030 | 5.500% | | 2,500,000 | 2,876,177 |
| Massachusetts Bay Transportation Authority |
| Revenue Bonds |
| Series 2008B |
| 07/01/2027 | 5.250% | | 710,000 | 776,537 |
| Massachusetts Clean Water Trust (The) |
| Refunding Revenue Bonds |
| Pool Program |
| Series 2006 |
| 08/01/2030 | 5.250% | | 1,000,000 | 1,171,581 |
| Massachusetts Development Finance Agency(d) |
| Revenue Bonds |
| Adventcare Project |
| Series 2007A |
| 10/15/2028 | 0.000% | | 3,825,475 | 38,255 |
| Massachusetts Development Finance Agency |
| Revenue Bonds |
| UMass Boston Student Housing Project |
| Series 2016 |
| 10/01/2048 | 5.000% | | 6,360,000 | 6,096,064 |
| WGBH Educational Foundation |
| Series 2002A (AMBAC) |
| 01/01/2042 | 5.750% | | 2,000,000 | 2,483,081 |
| Massachusetts Health & Educational Facilities Authority |
| Revenue Bonds |
| Tufts University |
| Series 2009M |
| 02/15/2028 | 5.500% | | 1,000,000 | 1,114,674 |
| Massachusetts Housing Finance Agency |
| Revenue Bonds |
| Special Obligations |
| Series 2017D |
| 12/01/2047 | 3.850% | | 10,000,000 | 8,835,179 |
| Massachusetts Port Authority(c) |
| Refunding Revenue Bonds |
| BosFuel Project |
| Series 2019A |
| 07/01/2044 | 4.000% | | 1,500,000 | 1,424,416 |
| Total | 24,815,964 |
| Michigan 3.6% |
| Great Lakes Water Authority Water Supply System |
| Revenue Bonds |
| 2nd Lien |
| Series 2016B |
| 07/01/2046 | 5.000% | | 15,385,000 | 15,740,089 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Michigan Finance Authority |
| Prerefunded 12/01/29 Revenue Bonds |
| Trinity Health Group |
| Series 2019 |
| 12/01/2040 | 4.000% | | 380,000 | 408,266 |
| Refunding Revenue Bonds |
| Henry Ford Health System |
| Series 2016 |
| 11/15/2046 | 4.000% | | 9,420,000 | 9,006,935 |
| Senior Lien - Great Lakes Water Authority |
| Series 2014C-6 |
| 07/01/2033 | 5.000% | | 1,070,000 | 1,081,748 |
| Trinity Health Credit Group |
| Series 2019 |
| 12/01/2038 | 4.000% | | 3,250,000 | 3,256,130 |
| Revenue Bonds |
| CHE Trinity Health |
| Series 2019 |
| 12/01/2040 | 4.000% | | 5,620,000 | 5,582,112 |
| Henry Ford Health System |
| Series 2019A |
| 11/15/2050 | 4.000% | | 4,400,000 | 4,132,290 |
| Local Government Loan Program - Great Lakes Water Authority |
| Series 2015 |
| 07/01/2034 | 5.000% | | 2,095,000 | 2,142,361 |
| Michigan State Housing Development Authority |
| Revenue Bonds |
| Series 2018A |
| 10/01/2048 | 4.050% | | 5,000,000 | 4,579,906 |
| Social Bonds |
| Series 2023A |
| 12/01/2048 | 4.900% | | 6,000,000 | 6,082,191 |
| Michigan Strategic Fund(c) |
| Revenue Bonds |
| I-75 Improvement Project |
| Series 2018 |
| 12/31/2043 | 5.000% | | 8,000,000 | 8,062,781 |
| 06/30/2048 | 5.000% | | 3,000,000 | 3,018,561 |
| Paw Paw Public Schools |
| Unlimited General Obligation Refunding Bonds |
| Series 1998 (NPFGC) (Qualified School Board Loan Fund) |
| 05/01/2025 | 5.000% | | 505,000 | 515,664 |
| St. John’s Public Schools |
| Unlimited General Obligation Refunding Bonds |
| Series 1998 (NPFGC) (Qualified School Bond Loan Fund) |
| 05/01/2025 | 5.100% | | 890,000 | 910,201 |
| Wayne County Airport Authority(c) |
| Refunding Revenue Bonds |
| Series 2015F |
| 12/01/2033 | 5.000% | | 11,495,000 | 11,776,262 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Wayne County Airport Authority |
| Revenue Bonds |
| Series 2015D |
| 12/01/2045 | 5.000% | | 1,945,000 | 1,979,004 |
| Williamston Community School District |
| Unlimited General Obligation Bonds |
| Series 1996 (NPFGC) (Qualified School Bond Loan Fund) |
| 05/01/2025 | 5.500% | | 205,000 | 210,634 |
| Total | 78,485,135 |
| Minnesota 1.3% |
| City of Minneapolis |
| Revenue Bonds |
| Fairview Health Services |
| Series 2018A |
| 11/15/2048 | 4.000% | | 5,000,000 | 4,365,984 |
| City of Wayzata |
| Refunding Revenue Bonds |
| Folkstone Senior Living Co. |
| Series 2019 |
| 08/01/2049 | 5.000% | | 1,000,000 | 936,516 |
| Southern Minnesota Municipal Power Agency(e) |
| Revenue Bonds |
| Capital Appreciation |
| Series 1994A (NPFGC) |
| 01/01/2025 | 0.000% | | 17,500,000 | 16,632,698 |
| St. Cloud Housing & Redevelopment Authority(f) |
| Revenue Bonds |
| Sanctuary St. Cloud Project |
| Series 2016A |
| 08/01/2036 | 3.806% | | 7,125,000 | 5,640,324 |
| Total | 27,575,522 |
| Mississippi 0.0% |
| Medical Center Educational Building Corp. |
| Refunding Revenue Bonds |
| University of Mississippi Medical Center |
| Series 1998B (AMBAC) |
| 12/01/2023 | 5.500% | | 890,000 | 895,896 |
| Missouri 2.1% |
| Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Mosaic Health System |
| Series 2019 |
| 02/15/2049 | 4.000% | | 3,200,000 | 2,982,967 |
| Health & Educational Facilities Authority of the State of Missouri |
| Revenue Bonds |
| Lutheran Senior Services |
| Series 2014 |
| 02/01/2035 | 5.000% | | 7,350,000 | 7,318,230 |
| 02/01/2044 | 5.000% | | 12,725,000 | 12,023,281 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 15 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Kansas City Industrial Development Authority(c) |
| Revenue Bonds |
| Kansas City International Airport |
| Series 2020A |
| 03/01/2045 | 4.000% | | 6,000,000 | 5,642,063 |
| Kirkwood Industrial Development Authority |
| Refunding Revenue Bonds |
| Aberdeen Heights Project |
| Series 2017 |
| 05/15/2037 | 5.250% | | 2,205,000 | 1,875,682 |
| 05/15/2042 | 5.250% | | 2,290,000 | 1,841,793 |
| Missouri Housing Development Commission |
| Revenue Bonds |
| First Place Homeownership Loan Program |
| Series 2020A (GNMA) |
| 11/01/2040 | 2.550% | | 1,280,000 | 1,016,081 |
| 11/01/2045 | 2.700% | | 1,045,000 | 835,100 |
| Missouri Joint Municipal Electric Utility Commission |
| Refunding Revenue Bonds |
| Series 2016A |
| 12/01/2041 | 4.000% | | 10,000,000 | 9,790,033 |
| St. Louis County Industrial Development Authority |
| Revenue Bonds |
| Friendship Village Sunset Hills |
| Series 2013A |
| 09/01/2033 | 5.500% | | 2,750,000 | 2,750,104 |
| Total | 46,075,334 |
| Nebraska 2.1% |
| Central Plains Energy Project |
| Revenue Bonds |
| Gas Project No. 5 Series |
| Series 2022-1 (Mandatory Put 10/01/29) |
| 05/01/2053 | 5.000% | | 5,400,000 | 5,599,381 |
| Douglas County Hospital Authority No. 2 |
| Revenue Bonds |
| Madonna Rehabilitation Hospital |
| Series 2014 |
| 05/15/2036 | 5.000% | | 1,000,000 | 1,002,217 |
| 05/15/2044 | 5.000% | | 6,400,000 | 6,350,647 |
| Douglas County Hospital Authority No. 3 |
| Refunding Revenue Bonds |
| Health Facilities - Nebraska Methodist Health System |
| Series 2015 |
| 11/01/2045 | 5.000% | | 7,500,000 | 7,575,268 |
| Nebraska Educational Health Cultural & Social Services Finance Authority |
| Refunding Revenue Bonds |
| Immanuel Obligated Group |
| Series 2019 |
| 01/01/2044 | 4.000% | | 7,500,000 | 7,127,697 |
| 01/01/2049 | 4.000% | | 20,595,000 | 18,820,358 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Nebraska Investment Finance Authority |
| Revenue Bonds |
| Series 2019D |
| 09/01/2042 | 3.050% | | 260,000 | 238,517 |
| Total | 46,714,085 |
| Nevada 0.3% |
| City of Carson City |
| Refunding Revenue Bonds |
| Carson Tahoe Regional Medical Center |
| Series 2017 |
| 09/01/2042 | 5.000% | | 1,120,000 | 1,131,925 |
| Revenue Bonds |
| Carson Tahoe Regional Medical Center |
| Series 2017 |
| 09/01/2047 | 5.000% | | 2,320,000 | 2,332,258 |
| State of Nevada Department of Business & Industry(b) |
| Revenue Bonds |
| Somerset Academy |
| Series 2015A |
| 12/15/2035 | 5.000% | | 1,025,000 | 1,005,490 |
| Series 2018A |
| 12/15/2038 | 5.000% | | 835,000 | 794,503 |
| 12/15/2048 | 5.000% | | 500,000 | 444,004 |
| Total | 5,708,180 |
| New Hampshire 0.5% |
| New Hampshire Business Finance Authority |
| Revenue Bonds |
| Municipal Certificates |
| Series 2020A-1 |
| 01/20/2034 | 4.125% | | 9,293,730 | 9,101,156 |
| New Hampshire Business Finance Authority(b) |
| Revenue Bonds |
| The Vista Project |
| Series 2019A |
| 07/01/2039 | 5.250% | | 1,550,000 | 1,399,388 |
| New Hampshire Health & Education Facilities Authority Act(d) |
| Revenue Bonds |
| Hillside Village |
| Series 2017A |
| 07/01/2037 | 0.000% | | 1,460,876 | 321,393 |
| 07/01/2042 | 0.000% | | 834,787 | 183,653 |
| Total | 11,005,590 |
| New Jersey 3.8% |
| City of Newark Mass Transit Access Tax |
| Revenue Bonds |
| Mulberry Pedestrian Bridge Redevelopment Project |
| Series 2022 (AGM) |
| 11/15/2062 | 6.000% | | 2,000,000 | 2,295,807 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Middlesex County Improvement Authority(d) |
| Revenue Bonds |
| Heldrich Center Hotel |
| Series 2005C |
| 01/01/2037 | 0.000% | | 1,500,000 | 15 |
| New Jersey Economic Development Authority |
| Prerefunded 06/15/25 Revenue Bonds |
| Series 2015WW |
| 06/15/2040 | 5.250% | | 2,600,000 | 2,701,940 |
| Prerefunded 06/15/27 Revenue Bonds |
| Series 2017DDD |
| 06/15/2042 | 5.000% | | 1,250,000 | 1,351,083 |
| Refunding Revenue Bonds |
| School Facilities Construction |
| Series 2005N-1 (AGM) |
| 09/01/2025 | 5.500% | | 14,500,000 | 15,127,505 |
| Series 2005N-1 (NPFGC) |
| 09/01/2027 | 5.500% | | 5,000,000 | 5,424,251 |
| Subordinated Series 2017A |
| 07/01/2034 | 4.000% | | 1,750,000 | 1,757,878 |
| Revenue Bonds |
| Portal North Bridge Project |
| Series 2022 |
| 11/01/2052 | 5.000% | | 16,250,000 | 17,163,391 |
| New Jersey Housing & Mortgage Finance Agency |
| Refunding Revenue Bonds |
| Series 2020E (HUD) |
| 10/01/2040 | 2.250% | | 4,245,000 | 3,111,994 |
| New Jersey Transportation Trust Fund Authority |
| Refunding Revenue Bonds |
| Transportation System |
| Series 2018A |
| 12/15/2034 | 5.000% | | 6,000,000 | 6,469,438 |
| Series 2019 |
| 12/15/2039 | 5.000% | | 1,400,000 | 1,486,336 |
| Revenue Bonds |
| Transportation Program |
| Series 2019 |
| 06/15/2046 | 5.000% | | 3,500,000 | 3,655,492 |
| Series 2022 |
| 06/15/2048 | 5.000% | | 3,750,000 | 4,004,868 |
| New Jersey Turnpike Authority |
| Refunding Revenue Bonds |
| Series 2005A (AGM) |
| 01/01/2030 | 5.250% | | 2,000,000 | 2,289,499 |
| Revenue Bonds |
| Series 2022B |
| 01/01/2048 | 4.500% | | 3,000,000 | 3,117,977 |
| 01/01/2052 | 5.250% | | 6,250,000 | 6,994,236 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Tobacco Settlement Financing Corp. |
| Refunding Revenue Bonds |
| Series 2018A |
| 06/01/2046 | 5.250% | | 2,000,000 | 2,074,893 |
| Subordinated Series 2018B |
| 06/01/2046 | 5.000% | | 3,580,000 | 3,579,656 |
| Total | 82,606,259 |
| New Mexico 0.2% |
| New Mexico Mortgage Finance Authority |
| Revenue Bonds |
| Single Family Mortgage Program |
| Series 2019C Class I (GNMA) |
| 07/01/2034 | 3.050% | | 1,530,000 | 1,401,378 |
| 07/01/2039 | 3.350% | | 1,285,000 | 1,188,292 |
| 07/01/2044 | 3.600% | | 2,675,000 | 2,485,238 |
| Total | 5,074,908 |
| New York 7.7% |
| Build NYC Resource Corp.(b),(c) |
| Refunding Revenue Bonds |
| Pratt Paper, Inc. Project |
| Series 2014 |
| 01/01/2025 | 4.500% | | 100,000 | 100,459 |
| City of New York |
| Unlimited General Obligation Bonds |
| Series 2022A-1 |
| 09/01/2046 | 4.000% | | 2,500,000 | 2,443,963 |
| Subordinated Series 2022B-1 |
| 10/01/2047 | 5.250% | | 2,500,000 | 2,791,590 |
| Subordinated Series 2023E-1 |
| 04/01/2050 | 4.000% | | 5,100,000 | 4,941,728 |
| Housing Development Corp. |
| Revenue Bonds |
| Sustainable Neighborhood |
| Series 2017G |
| 11/01/2042 | 3.600% | | 4,000,000 | 3,582,869 |
| Metropolitan Transportation Authority |
| Revenue Bonds |
| Green Bonds |
| Series 2020C-1 |
| 11/15/2050 | 5.000% | | 4,915,000 | 5,088,987 |
| New York City Housing Development Corp. |
| Revenue Bonds |
| Sustainable Neighborhood |
| Series 2019 |
| 11/01/2044 | 3.150% | | 6,440,000 | 5,243,064 |
| New York City Municipal Water Finance Authority |
| Revenue Bonds |
| Series 2022CC-1 |
| 06/15/2052 | 4.000% | | 19,575,000 | 19,026,824 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 17 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| New York City Transitional Finance Authority |
| Revenue Bonds |
| Future Tax Secured |
| Subordinated Series 2020D |
| 11/01/2040 | 4.000% | | 10,000,000 | 9,981,993 |
| Subordinated Series 2022A-1 |
| 08/01/2044 | 5.000% | | 1,900,000 | 2,075,433 |
| 08/01/2048 | 4.000% | | 2,400,000 | 2,348,813 |
| Subordinated Series 2022F-1 |
| 02/01/2051 | 4.000% | | 2,000,000 | 1,944,068 |
| 02/01/2051 | 5.000% | | 1,375,000 | 1,476,107 |
| New York Counties Tobacco Trust VI |
| Tobacco Settlement Pass-Through Bonds |
| Series 2016 |
| 06/01/2045 | 5.000% | | 1,860,000 | 1,762,854 |
| New York Liberty Development Corp. |
| Refunding Revenue Bonds |
| Series 2021-1WTC |
| 02/15/2042 | 3.000% | | 1,210,000 | 971,560 |
| New York State Dormitory Authority |
| Revenue Bonds |
| Independent School District-Educational Housing Services |
| Series 2005 (AMBAC) |
| 07/01/2030 | 5.250% | | 3,000,000 | 3,148,944 |
| Series 2020A |
| 07/01/2053 | 4.000% | | 4,000,000 | 3,697,331 |
| New York State Thruway Authority |
| Refunding Revenue Bonds |
| Personal Income Tax - Bidding Group |
| Series 2022A |
| 03/15/2050 | 4.000% | | 14,000,000 | 13,566,035 |
| New York Transportation Development Corp.(c) |
| Revenue Bonds |
| Delta Air Lines, Inc. LaGuardia |
| Series 2020 |
| 10/01/2035 | 5.000% | | 8,000,000 | 8,371,627 |
| New York State Thruway Service Areas Project |
| Series 2021 |
| 10/31/2041 | 4.000% | | 1,430,000 | 1,301,300 |
| Terminal 4 John F. Kennedy International Airport Project |
| Series 2022 |
| 12/01/2041 | 5.000% | | 5,750,000 | 5,979,185 |
| 12/01/2042 | 4.000% | | 4,355,000 | 4,081,468 |
| Port Authority of New York & New Jersey(c) |
| Refunding Revenue Bonds |
| Series 2023-238 |
| 07/15/2039 | 5.000% | | 3,000,000 | 3,260,572 |
| Revenue Bonds |
| Consolidated 218th |
| Series 2019 |
| 11/01/2041 | 4.000% | | 1,000,000 | 974,383 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Consolidated Bonds |
| Series 221 |
| 07/15/2040 | 4.000% | | 4,000,000 | 3,915,880 |
| State of New York Mortgage Agency |
| Refunding Revenue Bonds |
| Series 2018-211 |
| 10/01/2043 | 3.750% | | 11,620,000 | 10,511,558 |
| Triborough Bridge & Tunnel Authority |
| Refunding Revenue Bonds |
| MTA Bridges and Tunnels |
| Series 2022 |
| 05/15/2052 | 5.000% | | 6,000,000 | 6,843,634 |
| 05/15/2057 | 5.000% | | 10,500,000 | 11,326,989 |
| Revenue Bonds |
| Senior Lien Green Bonds |
| Series 2022D-2 |
| 05/15/2052 | 5.500% | | 3,000,000 | 3,386,357 |
| Series 2022A |
| 11/15/2052 | 4.000% | | 12,500,000 | 11,963,608 |
| Ulster County Capital Resource Corp.(b) |
| Refunding Revenue Bonds |
| Woodland Pond at New Paltz |
| Series 2017 |
| 09/15/2042 | 5.250% | | 2,480,000 | 1,924,104 |
| 09/15/2047 | 5.250% | | 3,025,000 | 2,241,468 |
| 09/15/2053 | 5.250% | | 6,240,000 | 4,446,866 |
| Westchester County Local Development Corp. |
| Refunding Revenue Bonds |
| Westchester Medical Center |
| Series 2016 |
| 11/01/2046 | 5.000% | | 4,000,000 | 3,871,749 |
| Total | 168,593,370 |
| North Carolina 1.2% |
| North Carolina Department of Transportation(c) |
| Revenue Bonds |
| I-77 Hot Lanes Project |
| Series 2015 |
| 06/30/2054 | 5.000% | | 12,500,000 | 12,324,372 |
| North Carolina Medical Care Commission |
| Refunding Revenue Bonds |
| Series 2021C |
| 03/01/2042 | 4.000% | | 2,500,000 | 1,904,929 |
| Sharon Towers |
| Series 2019A |
| 07/01/2039 | 5.000% | | 1,650,000 | 1,510,741 |
| 07/01/2044 | 5.000% | | 2,260,000 | 1,970,734 |
| Revenue Bonds |
| Lutheran Services for the Aging |
| Series 2021 |
| 03/01/2051 | 4.000% | | 1,000,000 | 688,984 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| North Carolina Turnpike Authority(e) |
| Revenue Bonds |
| Series 2017C |
| 07/01/2030 | 0.000% | | 445,000 | 329,404 |
| 07/01/2034 | 0.000% | | 1,135,000 | 684,849 |
| Series 2019 |
| 01/01/2044 | 0.000% | | 4,000,000 | 1,590,295 |
| Triangle Expressway System |
| Series 2019 |
| 01/01/2042 | 0.000% | | 6,550,000 | 2,881,735 |
| 01/01/2043 | 0.000% | | 3,500,000 | 1,466,132 |
| Total | 25,352,175 |
| North Dakota 0.2% |
| North Dakota Housing Finance Agency |
| Revenue Bonds |
| Home Mortgage Program |
| Series 2019 |
| 07/01/2043 | 3.050% | | 1,405,000 | 1,143,277 |
| Housing Finance Program |
| Series 2017 (FHA) |
| 07/01/2037 | 3.450% | | 700,000 | 691,997 |
| Housing Finance Program-Home Mortgage Finance |
| Series 2018 |
| 07/01/2042 | 3.950% | | 1,845,000 | 1,808,186 |
| Total | 3,643,460 |
| Ohio 2.2% |
| Buckeye Tobacco Settlement Financing Authority |
| Refunding Senior Revenue Bonds |
| Series 2020B-2 |
| 06/01/2055 | 5.000% | | 24,790,000 | 23,040,371 |
| County of Hamilton |
| Revenue Bonds |
| Cincinnati Children’s Hospital Project |
| Series 2019 |
| 11/15/2049 | 5.000% | | 2,000,000 | 2,226,842 |
| County of Marion |
| Refunding Revenue Bonds |
| United Church Homes, Inc. |
| Series 2019 |
| 12/01/2039 | 5.000% | | 325,000 | 268,646 |
| 12/01/2049 | 5.125% | | 1,895,000 | 1,466,427 |
| Lake County Port & Economic Development Authority(b),(d) |
| Revenue Bonds |
| 1st Mortgage - Tapestry Wickliffe LLC |
| Series 2017 |
| 12/01/2037 | 0.000% | | 6,000,000 | 1,740,000 |
| 12/01/2052 | 0.000% | | 1,500,000 | 435,000 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Ohio Air Quality Development Authority(b),(c) |
| Revenue Bonds |
| Pratt Paper LLC Project |
| Series 2017 |
| 01/15/2038 | 4.250% | | 1,000,000 | 989,686 |
| Ohio Turnpike & Infrastructure Commission |
| Refunding Revenue Bonds |
| Series 1998A (NPFGC) |
| 02/15/2026 | 5.500% | | 3,000,000 | 3,145,999 |
| State of Ohio(c) |
| Revenue Bonds |
| Portsmouth Bypass Project |
| Series 2015 |
| 06/30/2053 | 5.000% | | 9,835,000 | 9,595,435 |
| Toledo-Lucas County Port Authority |
| Revenue Bonds |
| University of Toledo Project |
| Series 2014 |
| 07/01/2046 | 5.000% | | 5,000,000 | 4,676,326 |
| Total | 47,584,732 |
| Oklahoma 0.1% |
| Tulsa County Industrial Authority |
| Refunding Revenue Bonds |
| Montereau, Inc. Project |
| Series 2017 |
| 11/15/2045 | 5.250% | | 2,720,000 | 2,646,643 |
| Oregon 2.2% |
| Clackamas County Hospital Facility Authority |
| Refunding Revenue Bonds |
| Rose Villa Project |
| Series 2020A |
| 11/15/2050 | 5.250% | | 1,000,000 | 917,339 |
| Hospital Facilities Authority of Multnomah County |
| Prerefunded 10/01/24 Revenue Bonds |
| Mirabella at South Waterfront |
| Series 2014A |
| 09/30/2044 | 5.400% | | 3,225,000 | 3,303,790 |
| Port of Portland Airport(c) |
| Revenue Bonds |
| Green Bonds |
| Series 2023-29 |
| 07/01/2053 | 5.500% | | 20,000,000 | 22,072,094 |
| Series 2017-24B |
| 07/01/2042 | 5.000% | | 2,000,000 | 2,040,179 |
| State of Oregon |
| Unlimited General Obligation Bonds |
| Article XI - Q State Project |
| Series 2023 |
| 05/01/2048 | 5.000% | | 10,580,000 | 11,762,515 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 19 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| State of Oregon Housing & Community Services Department |
| Revenue Bonds |
| Series 2017D |
| 01/01/2038 | 3.450% | | 2,820,000 | 2,788,935 |
| Washington & Multnomah Counties School District No. 48J Beaverton(e) |
| Unlimited General Obligation Bonds |
| Series 2022A |
| 06/15/2048 | 0.000% | | 20,000,000 | 5,994,210 |
| Total | 48,879,062 |
| Pennsylvania 9.8% |
| Commonwealth Financing Authority |
| Revenue Bonds |
| Tobacco Master Settlement Payment |
| Series 2018 |
| 06/01/2034 | 5.000% | | 1,000,000 | 1,072,031 |
| Commonwealth of Pennsylvania |
| Refunding Certificate of Participation |
| Series 2018A |
| 07/01/2043 | 5.000% | | 2,500,000 | 2,608,947 |
| Cumberland County Municipal Authority |
| Prerefunded 01/01/25 Revenue Bonds |
| Diakon Lutheran Social Ministries |
| Series 2015 |
| 01/01/2038 | 5.000% | | 865,000 | 885,397 |
| Refunding Revenue Bonds |
| Diakon Lutheran |
| Series 2015 |
| 01/01/2038 | 5.000% | | 4,385,000 | 4,388,953 |
| Delaware Valley Regional Finance Authority |
| Revenue Bonds |
| Series 1997C (AMBAC) |
| 07/01/2027 | 7.750% | | 1,000,000 | 1,172,141 |
| Franklin County Industrial Development Authority |
| Refunding Revenue Bonds |
| Menno-Haven, Inc. Project |
| Series 2018 |
| 12/01/2048 | 5.000% | | 1,300,000 | 1,022,932 |
| Geisinger Authority |
| Refunding Revenue Bonds |
| Geisinger Health System |
| Series 2017 |
| 02/15/2039 | 4.000% | | 6,000,000 | 5,933,849 |
| Montgomery County Industrial Development Authority |
| Refunding Revenue Bonds |
| Meadowood Senior Living Project |
| Series 2018 |
| 12/01/2048 | 5.000% | | 2,000,000 | 1,853,739 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Northampton County General Purpose Authority |
| Refunding Revenue Bonds |
| St. Luke’s University Health Network |
| Series 2018 |
| 08/15/2048 | 4.000% | | 20,000,000 | 17,956,470 |
| Pennsylvania Economic Development Financing Authority |
| Refunding Revenue Bonds |
| Series 2017A |
| 11/15/2042 | 4.000% | | 30,000,000 | 29,021,556 |
| Pennsylvania Economic Development Financing Authority(b),(d) |
| Refunding Revenue Bonds |
| Tapestry Moon Senior Housing Project |
| Series 2018 |
| 12/01/2053 | 0.000% | | 5,625,000 | 2,144,531 |
| Pennsylvania Economic Development Financing Authority(c) |
| Revenue Bonds |
| PA Bridges Finco LP |
| Series 2015 |
| 12/31/2038 | 5.000% | | 1,625,000 | 1,642,666 |
| 06/30/2042 | 5.000% | | 24,375,000 | 24,492,409 |
| Proctor & Gamble Paper Project |
| Series 2001 |
| 03/01/2031 | 5.375% | | 1,000,000 | 1,137,949 |
| The PennDOT Major Bridges Package One Project |
| Series 2022 |
| 06/30/2061 | 6.000% | | 3,000,000 | 3,346,888 |
| Series 2022 (AGM) |
| 12/31/2057 | 5.000% | | 5,000,000 | 5,170,995 |
| Pennsylvania Housing Finance Agency |
| Refunding Revenue Bonds |
| Series 2017-124B |
| 10/01/2037 | 3.500% | | 16,000,000 | 15,033,773 |
| Revenue Bonds |
| Series 2019-129 |
| 10/01/2039 | 3.150% | | 7,730,000 | 6,623,207 |
| Pennsylvania Turnpike Commission |
| Refunding Revenue Bonds |
| Subordinated Series 2015A-1 |
| 12/01/2045 | 5.250% | | 25,295,000 | 26,046,173 |
| Subordinated Series 2016A-1 |
| 12/01/2046 | 5.000% | | 5,000,000 | 5,083,243 |
| Revenue Bonds |
| Series 2014B |
| 12/01/2044 | 5.250% | | 10,000,000 | 10,099,057 |
| Subordinated Series 2014A-1 |
| 12/01/2043 | 5.000% | | 16,940,000 | 17,061,831 |
| Subordinated Series 2017B-1 |
| 06/01/2042 | 5.000% | | 15,000,000 | 15,522,145 |
| Subordinated Series 2018B |
| 12/01/2043 | 5.000% | | 7,000,000 | 7,338,627 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Philadelphia Authority for Industrial Development |
| Revenue Bonds |
| First Philadelphia Preparatory Charter School |
| Series 2014 |
| 06/15/2043 | 7.250% | | 5,475,000 | 5,604,857 |
| School District of Philadelphia (The) |
| Limited General Obligation Bonds |
| Series 2018A |
| 09/01/2037 | 5.000% | | 1,000,000 | 1,065,039 |
| Series 2018B |
| 09/01/2043 | 5.000% | | 985,000 | 1,034,349 |
| Total | 214,363,754 |
| Puerto Rico 2.4% |
| Commonwealth of Puerto Rico(e),(g) |
| Revenue Notes |
| Series 2022 |
| 11/01/2051 | 0.000% | | 3,508,841 | 1,793,895 |
| Subordinated Series 2022 |
| 11/01/2043 | 0.000% | | 2,805,420 | 1,437,778 |
| Puerto Rico Commonwealth Aqueduct & Sewer Authority(b),(g) |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2020A |
| 07/01/2047 | 5.000% | | 5,210,000 | 5,138,175 |
| Puerto Rico Electric Power Authority(d),(g) |
| Revenue Bonds |
| Series 2010XX |
| 07/01/2040 | 0.000% | | 7,000,000 | 2,607,500 |
| Series 2012A |
| 07/01/2042 | 0.000% | | 7,000,000 | 2,607,500 |
| Puerto Rico Public Finance Corp.(g) |
| Revenue Bonds |
| Commonwealth Appropriation |
| Series 2002E Escrowed to Maturity (AMBAC) |
| 08/01/2027 | 5.500% | | 450,000 | 491,036 |
| Unrefunded Revenue Bonds |
| Commonwealth Appropriation |
| Series 2002E Escrowed to Maturity |
| 08/01/2026 | 6.000% | | 2,470,000 | 2,664,115 |
| Series 2002E Escrowed to Maturity (AMBAC) |
| 08/01/2027 | 5.500% | | 1,050,000 | 1,145,751 |
| Puerto Rico Sales Tax Financing Corp.(e),(g) |
| Revenue Bonds |
| Series 2018A-1 |
| 07/01/2046 | 0.000% | | 93,959,000 | 26,801,570 |
| Puerto Rico Sales Tax Financing Corp.(g) |
| Revenue Bonds |
| Series 2019A1 |
| 07/01/2058 | 5.000% | | 7,000,000 | 6,812,845 |
| Total | 51,500,165 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| South Carolina 1.6% |
| Piedmont Municipal Power Agency |
| Unrefunded Revenue Bonds |
| Series 1993 (NPFGC) |
| 01/01/2025 | 5.375% | | 10,660,000 | 10,941,034 |
| South Carolina Jobs-Economic Development Authority |
| Prerefunded 11/01/24 Revenue Bonds |
| York Preparatory Academy Project |
| Series 2014A |
| 11/01/2033 | 7.000% | | 910,000 | 947,006 |
| Refunding Revenue Bonds |
| Bon Secours Mercy Health, Inc. |
| Series 2020 |
| 12/01/2046 | 5.000% | | 4,200,000 | 4,420,536 |
| Revenue Bonds |
| York Preparatory Academy Project |
| Series 2014A Escrowed to Maturity |
| 11/01/2023 | 5.750% | | 185,000 | 185,922 |
| South Carolina Ports Authority(c) |
| Revenue Bonds |
| Series 2018 |
| 07/01/2055 | 5.000% | | 1,380,000 | 1,403,345 |
| South Carolina Public Service Authority |
| Revenue Bonds |
| Series 2022A |
| 12/01/2052 | 4.000% | | 18,000,000 | 16,339,165 |
| South Carolina State Housing Finance & Development Authority |
| Revenue Bonds |
| Series 2020A |
| 07/01/2035 | 2.650% | | 890,000 | 754,137 |
| 07/01/2040 | 3.000% | | 890,000 | 718,357 |
| Total | 35,709,502 |
| South Dakota 0.2% |
| South Dakota Health & Educational Facilities Authority |
| Refunding Revenue Bonds |
| Sanford Obligated Group |
| Series 2015 |
| 11/01/2045 | 5.000% | | 4,500,000 | 4,542,288 |
| Tennessee 2.3% |
| Chattanooga Health Educational & Housing Facility Board |
| Refunding Revenue Bonds |
| Student Housing - CDFI Phase I |
| Series 2015 |
| 10/01/2032 | 5.000% | | 1,300,000 | 1,324,460 |
| 10/01/2035 | 5.000% | | 645,000 | 655,130 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 21 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Greeneville Health & Educational Facilities Board |
| Refunding Revenue Bonds |
| Ballad Health Obligation Group |
| Series 2018 |
| 07/01/2035 | 5.000% | | 1,000,000 | 1,052,910 |
| 07/01/2040 | 4.000% | | 7,200,000 | 6,946,965 |
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board |
| Revenue Bonds |
| Vanderbilt University Medical Center |
| Series 2017A |
| 07/01/2048 | 5.000% | | 1,665,000 | 1,698,834 |
| New Memphis Arena Public Building Authority(e) |
| Revenue Bonds |
| City of Memphis Project |
| Series 2021 |
| 04/01/2041 | 0.000% | | 1,500,000 | 648,733 |
| 04/01/2043 | 0.000% | | 1,500,000 | 580,935 |
| 04/01/2045 | 0.000% | | 1,500,000 | 519,823 |
| 04/01/2046 | 0.000% | | 750,000 | 246,001 |
| Shelby County Health Educational & Housing Facilities Board |
| Revenue Bonds |
| The Farms at Bailey Station Project |
| Series 2019 |
| 10/01/2054 | 5.750% | | 12,000,000 | 9,057,620 |
| Tennessee Energy Acquisition Corp. |
| Refunding Revenue Bonds |
| Gas Project |
| Series 2023A-1 (Mandatory Put 05/01/28) |
| 05/01/2053 | 5.000% | | 18,500,000 | 19,057,218 |
| Tennessee Housing Development Agency |
| Revenue Bonds |
| 3rd Issue |
| Series 2017 |
| 07/01/2037 | 3.400% | | 690,000 | 673,019 |
| 07/01/2042 | 3.600% | | 460,000 | 449,604 |
| Issue 3 |
| Series 2018 |
| 01/01/2049 | 3.950% | | 4,855,000 | 4,701,364 |
| Social Bond |
| Series 2022-2 |
| 01/01/2048 | 4.350% | | 3,500,000 | 3,398,473 |
| Total | 51,011,089 |
| Texas 11.8% |
| Arlington Higher Education Finance Corp.(b) |
| Revenue Bonds |
| Legacy Traditional Schools - Texas Project |
| Series 2022 |
| 02/15/2062 | 6.750% | | 5,000,000 | 4,859,747 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Austin Independent School District |
| Unlimited General Obligation Bonds |
| Series 2023 |
| 08/01/2048 | 4.000% | | 4,400,000 | 4,333,134 |
| Central Texas Regional Mobility Authority(e) |
| Revenue Bonds |
| Capital Appreciation |
| Series 2010 |
| 01/01/2025 | 0.000% | | 2,000,000 | 1,881,220 |
| Central Texas Turnpike System |
| Refunding Revenue Bonds |
| Subordinated Series 2015C |
| 08/15/2037 | 5.000% | | 5,000,000 | 5,045,396 |
| 08/15/2042 | 5.000% | | 12,000,000 | 12,079,300 |
| City of Austin Airport System(c) |
| Revenue Bonds |
| Series 2017B |
| 11/15/2041 | 5.000% | | 1,000,000 | 1,013,462 |
| 11/15/2046 | 5.000% | | 3,000,000 | 3,024,213 |
| City of Houston Airport System(c) |
| Refunding Revenue Bonds |
| Subordinated Series 2023A (AGM) |
| 07/01/2053 | 5.250% | | 5,000,000 | 5,354,742 |
| Revenue Bonds |
| Subordinated Series 2020A |
| 07/01/2047 | 4.000% | | 800,000 | 747,919 |
| Clifton Higher Education Finance Corp. |
| Revenue Bonds |
| Idea Public Schools |
| Series 2012 |
| 08/15/2032 | 5.000% | | 2,165,000 | 2,167,504 |
| 08/15/2042 | 5.000% | | 2,350,000 | 2,350,902 |
| Series 2013 |
| 08/15/2033 | 6.000% | | 990,000 | 991,978 |
| International Leadership |
| Series 2015 |
| 08/15/2038 | 5.750% | | 3,000,000 | 3,014,184 |
| International Leadership of Texas |
| Series 2015 |
| 08/15/2045 | 5.750% | | 10,500,000 | 10,409,092 |
| Series 2015A |
| 12/01/2035 | 5.000% | | 2,200,000 | 2,224,554 |
| 12/01/2045 | 5.000% | | 1,100,000 | 1,098,161 |
| Collin County Community College District |
| Limited General Obligation Bonds |
| Series 2020A |
| 08/15/2036 | 4.000% | | 1,250,000 | 1,277,913 |
| Conroe Independent School District |
| Unlimited General Obligation Bonds |
| Series 2022A |
| 02/15/2047 | 4.000% | | 8,475,000 | 8,456,161 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Cypress-Fairbanks Independent School District |
| Unlimited General Obligation Bonds |
| Series 2023 |
| 02/15/2048 | 4.000% | | 5,200,000 | 5,098,469 |
| Dallas Independent School District |
| Unlimited General Obligation Refunding Bonds |
| Series 2023 |
| 02/15/2048 | 5.000% | | 5,000,000 | 5,488,212 |
| Dallas Love Field(c) |
| Revenue Bonds |
| Series 2017 |
| 11/01/2034 | 5.000% | | 750,000 | 773,779 |
| Dallas/Fort Worth International Airport(c) |
| Refunding Revenue Bonds |
| Series 2014A |
| 11/01/2032 | 5.000% | | 3,400,000 | 3,404,115 |
| Deaf Smith County Hospital District |
| Limited General Obligation Refunding Bonds |
| Series 2017 |
| 03/01/2030 | 5.000% | | 1,000,000 | 1,030,105 |
| 03/01/2034 | 5.000% | | 645,000 | 659,385 |
| Denton Independent School District(a) |
| Unlimited General Obligation Bonds |
| Series 2023 |
| 08/15/2053 | 5.000% | | 5,000,000 | 5,447,819 |
| Harris County Toll Road Authority (The) |
| Refunding Revenue Bonds |
| Senior Lien |
| Series 2018A |
| 08/15/2048 | 4.000% | | 4,000,000 | 3,853,596 |
| Humble Independent School District |
| Unlimited General Obligation Bonds |
| Series 2022 |
| 02/15/2052 | 4.000% | | 2,000,000 | 1,915,382 |
| Katy Independent School District |
| Unlimited General Obligation Bonds |
| Series 2022 |
| 02/15/2052 | 4.000% | | 3,300,000 | 3,239,087 |
| Series 2023 |
| 02/15/2048 | 5.000% | | 3,270,000 | 3,571,744 |
| 02/15/2053 | 4.000% | | 8,375,000 | 8,078,612 |
| Lamar Consolidated Independent School District(a) |
| Unlimited General Obligation Bonds |
| Series 2023A |
| 02/15/2058 | 5.000% | | 5,000,000 | 5,371,149 |
| New Hope Cultural Education Facilities Finance Corp. |
| Refunding Revenue Bonds |
| Texas Children’s Health System |
| Series 2017A |
| 08/15/2040 | 4.000% | | 7,015,000 | 6,900,623 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Revenue Bonds |
| Collegiate Housing College Station |
| Series 2014 |
| 04/01/2046 | 5.000% | | 7,250,000 | 6,591,044 |
| New Hope Cultural Education Facilities Finance Corp.(d) |
| Revenue Bonds |
| Bridgemoor Plano Project |
| Series 2018 |
| 12/01/2053 | 0.000% | | 9,000,000 | 9,405,000 |
| Cardinal Bay, Inc. - Village on the Park |
| Series 2016 |
| 07/01/2031 | 0.000% | | 1,000,000 | 500,000 |
| 07/01/2051 | 0.000% | | 6,745,000 | 3,372,500 |
| Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project |
| Series 2016 |
| 07/01/2046 | 0.000% | | 3,335,000 | 1,667,500 |
| North Texas Tollway Authority |
| Refunding Revenue Bonds |
| 2nd Tier |
| Series 2015A |
| 01/01/2038 | 5.000% | | 4,230,000 | 4,275,527 |
| Series 2019A |
| 01/01/2037 | 4.000% | | 5,000,000 | 5,073,527 |
| Plano Independent School District |
| Unlimited General Obligation Bonds |
| Series 2023 |
| 02/15/2043 | 5.000% | | 5,990,000 | 6,640,368 |
| Pottsboro Higher Education Finance Corp. |
| Revenue Bonds |
| Series 2016A |
| 08/15/2036 | 5.000% | | 390,000 | 379,794 |
| Prosper Independent School District |
| Unlimited General Obligation Bonds |
| Series 2022 |
| 02/15/2052 | 4.000% | | 4,800,000 | 4,587,027 |
| Red River Health Facilities Development Corp. |
| Prerefunded 11/15/24 Revenue Bonds |
| MRC Crossings Project |
| Series 2014A |
| 11/15/2034 | 7.500% | | 2,000,000 | 2,104,022 |
| Rockwall Independent School District |
| Unlimited General Obligation Bonds |
| Series 2023 |
| 02/15/2053 | 4.000% | | 2,500,000 | 2,391,153 |
| Sanger Industrial Development Corp.(b),(c),(d) |
| Revenue Bonds |
| Texas Pellets Project |
| Series 2012B |
| 07/01/2038 | 0.000% | | 34,645,000 | 8,661,250 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 23 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Tarrant County College District |
| Limited General Obligation Bonds |
| Series 2022 |
| 08/15/2042 | 4.000% | | 15,600,000 | 15,498,895 |
| Tarrant County Cultural Education Facilities Finance Corp. |
| Refunding Revenue Bonds |
| Trinity Terrace Project |
| Series 2014 |
| 10/01/2044 | 5.000% | | 2,500,000 | 2,445,593 |
| 10/01/2049 | 5.000% | | 1,870,000 | 1,789,193 |
| Revenue Bonds |
| Methodist Hospitals of Dallas |
| Series 2022 |
| 10/01/2052 | 4.000% | | 2,650,000 | 2,490,165 |
| Tarrant County Cultural Education Facilities Finance Corp.(d) |
| Revenue Bonds |
| CC Young Memorial Home |
| Series 2009A |
| 02/15/2038 | 0.000% | | 3,500,000 | 1,925,000 |
| Texas Private Activity Bond Surface Transportation Corp. |
| Refunding Revenue Bonds |
| LBJ Infrastructure Group LLC I-635 Managed Lanes Project |
| Series 2020 |
| 12/31/2039 | 4.000% | | 400,000 | 374,014 |
| Senior Lien - North Tarrant Express |
| Series 2019 |
| 12/31/2038 | 4.000% | | 3,500,000 | 3,450,273 |
| Texas Private Activity Bond Surface Transportation Corp.(c) |
| Revenue Bonds |
| Segment 3C Project |
| Series 2019 |
| 06/30/2058 | 5.000% | | 21,445,000 | 21,651,560 |
| Senior Lien - Blueridge Transportation Group LLC |
| Series 2016 |
| 12/31/2040 | 5.000% | | 2,000,000 | 2,006,032 |
| 12/31/2055 | 5.000% | | 6,250,000 | 6,239,357 |
| Texas Transportation Commission |
| Revenue Bonds |
| State Highway 249 System Toll |
| Series 2019 |
| 08/01/2057 | 5.000% | | 2,000,000 | 2,015,243 |
| Tomball Independent School District |
| Unlimited General Obligation Bonds |
| School Building |
| Series 2020 |
| 02/15/2034 | 3.000% | | 1,750,000 | 1,726,876 |
| 02/15/2035 | 3.000% | | 1,750,000 | 1,701,005 |
| 02/15/2036 | 3.000% | | 1,435,000 | 1,357,132 |
| Series 2023 |
| 02/15/2048 | 5.000% | | 11,750,000 | 12,960,183 |
| Total | 258,440,892 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Utah 0.5% |
| City of Salt Lake City Airport(a),(c) |
| Revenue Bonds |
| Series 2023A |
| 07/01/2053 | 5.250% | | 2,250,000 | 2,407,763 |
| Salt Lake City Corp. Airport(c) |
| Revenue Bonds |
| Series 2017A |
| 07/01/2047 | 5.000% | | 6,500,000 | 6,614,116 |
| UIPA Crossroads Public Infrastructure District(b) |
| Tax Allocation Bonds |
| Series 2021 |
| 06/01/2052 | 4.375% | | 2,740,000 | 2,356,991 |
| Total | 11,378,870 |
| Virginia 1.3% |
| Chesapeake Bay Bridge & Tunnel District |
| Revenue Bonds |
| 1st Tier General Resolution |
| Series 2016 |
| 07/01/2046 | 5.000% | | 3,500,000 | 3,545,292 |
| Fredericksburg Economic Development Authority |
| Refunding Revenue Bonds |
| Mary Washington Healthcare Obligation |
| Series 2014 |
| 06/15/2031 | 5.000% | | 800,000 | 806,864 |
| 06/15/2033 | 5.000% | | 500,000 | 504,191 |
| Virginia Small Business Financing Authority(c) |
| Refunding Revenue Bonds |
| Senior Lien - 95 Express Lanes LLC Project |
| Series 2022 |
| 01/01/2048 | 4.000% | | 3,750,000 | 3,347,121 |
| Revenue Bonds |
| Transform 66 P3 Project |
| Series 2017 |
| 12/31/2052 | 5.000% | | 3,750,000 | 3,782,945 |
| 12/31/2056 | 5.000% | | 16,800,000 | 16,917,622 |
| Total | 28,904,035 |
| Washington 1.4% |
| King County Housing Authority |
| Refunding Revenue Bonds |
| Series 2018 |
| 05/01/2038 | 3.750% | | 2,915,000 | 2,745,598 |
| King County Public Hospital District No. 4 |
| Revenue Bonds |
| Series 2015A |
| 12/01/2035 | 6.000% | | 1,300,000 | 1,332,883 |
| 12/01/2045 | 6.250% | | 2,500,000 | 2,557,138 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 24 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Port of Seattle(c) |
| Revenue Bonds |
| Series 2018A |
| 05/01/2043 | 5.000% | | 8,000,000 | 8,196,653 |
| Washington Health Care Facilities Authority |
| Refunding Revenue Bonds |
| Multicare Health System |
| Series 2017B |
| 08/15/2041 | 4.000% | | 10,500,000 | 9,828,844 |
| Virginia Mason Medical Center |
| Series 2017 |
| 08/15/2042 | 4.000% | | 3,335,000 | 2,936,302 |
| Washington State Housing Finance Commission |
| Prerefunded 07/01/25 Revenue Bonds |
| Heron’s Key |
| Series 2015A |
| 07/01/2030 | 6.500% | | 730,000 | 766,810 |
| 07/01/2035 | 6.750% | | 550,000 | 580,250 |
| Washington State Housing Finance Commission(b) |
| Prerefunded 07/01/25 Revenue Bonds |
| Heron’s Key |
| Series 2015A |
| 07/01/2050 | 7.000% | | 1,250,000 | 1,323,755 |
| Refunding Revenue Bonds |
| Skyline 1st Hill Project |
| Series 2015 |
| 01/01/2025 | 5.000% | | 330,000 | 326,361 |
| Total | 30,594,594 |
| West Virginia 1.0% |
| West Virginia Hospital Finance Authority |
| Refunding Revenue Bonds |
| Cabell Huntington Hospital Obligation |
| Series 2018 |
| 01/01/2047 | 4.125% | | 5,000,000 | 4,105,866 |
| Revenue Bonds |
| West Virginia University Health System Obligation |
| Series 2018 |
| 06/01/2052 | 5.000% | | 16,500,000 | 16,941,918 |
| Total | 21,047,784 |
| Wisconsin 2.3% |
| Public Finance Authority |
| Refunding Revenue Bonds |
| Friends Homes |
| Series 2019 |
| 09/01/2049 | 5.000% | | 4,250,000 | 3,663,068 |
| Revenue Bonds |
| ACTS Retirement - Life Communities |
| Series 2020 |
| 11/15/2041 | 5.000% | | 4,000,000 | 3,851,192 |
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Public Finance Authority(b) |
| Refunding Revenue Bonds |
| Mary’s Woods at Marylhurst |
| Series 2017 |
| 05/15/2042 | 5.250% | | 820,000 | 746,024 |
| 05/15/2047 | 5.250% | | 1,105,000 | 971,468 |
| Mary’s Woods at Marylhurst, Inc. |
| Series 2017 |
| 05/15/2052 | 5.250% | | 500,000 | 431,774 |
| Public Finance Authority(b),(e) |
| Revenue Bonds |
| WFCS Portfolio Project |
| Subordinated Series 2021 |
| 01/01/2061 | 0.000% | | 21,100,000 | 1,081,672 |
| University of Wisconsin Hospitals & Clinics |
| Refunding Revenue Bonds |
| Green Bonds - University of Wisconsin Hospital |
| Series 2021 |
| 04/01/2051 | 4.000% | | 10,000,000 | 9,436,669 |
| Wisconsin Center District(e) |
| Revenue Bonds |
| Senior Dedicated |
| Series 2020 (AGM) |
| 12/15/2060 | 0.000% | | 18,625,000 | 3,129,469 |
| Wisconsin Health & Educational Facilities Authority |
| Prerefunded 08/15/23 Revenue Bonds |
| Beaver Dam Community Hospitals |
| Series 2013A |
| 08/15/2028 | 5.125% | | 5,000,000 | 5,002,996 |
| 08/15/2034 | 5.250% | | 8,000,000 | 8,005,149 |
| Refunding Revenue Bonds |
| St. Camillus Health System, Inc. |
| Series 2019 |
| 11/01/2046 | 5.000% | | 2,100,000 | 1,691,113 |
| Revenue Bonds |
| Covenant Communities, Inc. Project |
| Series 2018A |
| 07/01/2048 | 4.000% | | 2,335,000 | 1,772,041 |
| 07/01/2053 | 4.125% | | 5,000,000 | 3,737,228 |
| Series 2018B |
| 07/01/2038 | 4.375% | | 1,250,000 | 955,920 |
| 07/01/2043 | 4.500% | | 1,375,000 | 988,802 |
| 07/01/2048 | 5.000% | | 500,000 | 371,573 |
| Unrefunded Refunding Revenue Bond |
| Ascension Health |
| Series 2016A |
| 11/15/2046 | 4.000% | | 3,610,000 | 3,411,033 |
| Total | 49,247,191 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 25 |
Portfolio of Investments (continued)
July 31, 2023
| Municipal Bonds (continued) |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Wyoming 0.3% |
| County of Campbell |
| Refunding Revenue Bonds |
| Basin Electric Power Cooperative |
| Series 2019 |
| 07/15/2039 | 3.625% | | 7,600,000 | 6,865,264 |
Total Municipal Bonds
(Cost $2,351,962,574) | 2,183,727,117 |
| Money Market Funds 0.0% |
| | Shares | Value ($) |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 3.579%(h) | 207,230 | 207,210 |
Total Money Market Funds
(Cost $207,224) | 207,210 |
Total Investments in Securities
(Cost $2,352,169,798) | 2,183,934,327 |
| Other Assets & Liabilities, Net | | 154,665 |
| Net Assets | $2,184,088,992 |
Notes to Portfolio of Investments
| (a) | Represents a security purchased on a when-issued basis. |
| (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 July 31, 2023, the total value of these securities amounted to $78,069,457, which represents 3.57% of total net assets. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents a security in default. |
| (e) | Zero coupon bond. |
| (f) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of July 31, 2023. |
| (g) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At July 31, 2023, the total value of these securities amounted to $51,500,165, which represents 2.36% of total net assets. |
| (h) | The rate shown is the seven-day current annualized yield at July 31, 2023. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| FHA | Federal Housing Authority |
| GNMA | Government National Mortgage Association |
| HUD | U.S. Department of Housing and Urban Development |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 26 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
Fair value measurements (continued)
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The Fund’s Board of Trustees (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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. Representatives of Columbia Management Investment Advisers, LLC report to 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 July 31, 2023:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | 2,183,727,117 | — | 2,183,727,117 |
| Money Market Funds | 207,210 | — | — | 207,210 |
| Total Investments in Securities | 207,210 | 2,183,727,117 | — | 2,183,934,327 |
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 Tax-Exempt Fund | Annual Report 2023
| 27 |
Statement of Assets and Liabilities
July 31, 2023
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $2,352,169,798) | $2,183,934,327 |
| Cash | 80,307 |
| Receivable for: | |
| Capital shares sold | 6,930,326 |
| Dividends | 13,051 |
| Interest | 22,147,715 |
| Trustees’ fees | 542,785 |
| Prepaid expenses | 28,009 |
| Total assets | 2,213,676,520 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 16,539,545 |
| Capital shares redeemed | 3,899,972 |
| Distributions to shareholders | 6,918,449 |
| Management services fees | 82,100 |
| Distribution and/or service fees | 29,471 |
| Transfer agent fees | 127,862 |
| Trustees’ fees | 623,485 |
| Interfund lending | 1,300,000 |
| Other expenses | 66,644 |
| Total liabilities | 29,587,528 |
| Net assets applicable to outstanding capital stock | $2,184,088,992 |
| Represented by | |
| Paid in capital | 2,439,871,291 |
| Total distributable earnings (loss) | (255,782,299) |
| Total - representing net assets applicable to outstanding capital stock | $2,184,088,992 |
| Class A | |
| Net assets | $1,694,619,346 |
| Shares outstanding | 144,812,206 |
| Net asset value per share | $11.70 |
| 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) | $12.06 |
| Advisor Class | |
| Net assets | $13,441,462 |
| Shares outstanding | 1,148,951 |
| Net asset value per share | $11.70 |
| Class C | |
| Net assets | $24,894,077 |
| Shares outstanding | 2,127,820 |
| Net asset value per share | $11.70 |
| Institutional Class | |
| Net assets | $327,607,811 |
| Shares outstanding | 27,987,867 |
| Net asset value per share | $11.71 |
| Institutional 2 Class | |
| Net assets | $13,264,347 |
| Shares outstanding | 1,133,148 |
| Net asset value per share | $11.71 |
| Institutional 3 Class | |
| Net assets | $110,261,949 |
| Shares outstanding | 9,392,806 |
| Net asset value per share | $11.74 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 28 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Statement of Operations
Year Ended July 31, 2023
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $177,067 |
| Interest | 97,725,247 |
| Total income | 97,902,314 |
| Expenses: | |
| Management services fees | 10,591,629 |
| Distribution and/or service fees | |
| Class A | 3,607,898 |
| Class C | 224,848 |
| Transfer agent fees | |
| Class A | 1,197,673 |
| Advisor Class | 9,898 |
| Class C | 18,663 |
| Institutional Class | 236,471 |
| Institutional 2 Class | 7,455 |
| Institutional 3 Class | 6,543 |
| Trustees’ fees | 63,423 |
| Custodian fees | 25,704 |
| Printing and postage fees | 99,723 |
| Registration fees | 148,463 |
| Accounting services fees | 40,290 |
| Legal fees | 44,539 |
| Interest on interfund lending | 9,724 |
| Compensation of chief compliance officer | 446 |
| Other | 49,172 |
| Total expenses | 16,382,562 |
| Fees waived by transfer agent | |
| Institutional 3 Class | (2,077) |
| Expense reduction | (2,795) |
| Total net expenses | 16,377,690 |
| Net investment income | 81,524,624 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (55,782,092) |
| Futures contracts | 1,472,672 |
| Net realized loss | (54,309,420) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (52,715,312) |
| Net change in unrealized appreciation (depreciation) | (52,715,312) |
| Net realized and unrealized loss | (107,024,732) |
| Net decrease in net assets resulting from operations | $(25,500,108) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 29 |
Statement of Changes in Net Assets
| | Year Ended
July 31, 2023 | Year Ended
July 31, 2022 |
| Operations | | |
| Net investment income | $81,524,624 | $85,470,212 |
| Net realized loss | (54,309,420) | (24,066,591) |
| Net change in unrealized appreciation (depreciation) | (52,715,312) | (351,639,379) |
| Net decrease in net assets resulting from operations | (25,500,108) | (290,235,758) |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (62,033,693) | (77,176,902) |
| Advisor Class | (539,071) | (950,141) |
| Class C | (798,813) | (1,060,210) |
| Institutional Class | (12,866,698) | (21,249,393) |
| Institutional 2 Class | (503,426) | (661,141) |
| Institutional 3 Class | (4,032,449) | (923,446) |
| Total distributions to shareholders | (80,774,150) | (102,021,233) |
| Decrease in net assets from capital stock activity | (369,877,650) | (245,080,848) |
| Total decrease in net assets | (476,151,908) | (637,337,839) |
| Net assets at beginning of year | 2,660,240,900 | 3,297,578,739 |
| Net assets at end of year | $2,184,088,992 | $2,660,240,900 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 30 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | July 31, 2023 | July 31, 2022 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Shares sold | 15,215,339 | 177,159,699 | 9,708,549 | 123,022,678 |
| Distributions reinvested | 5,040,685 | 58,386,449 | 5,617,395 | 73,011,313 |
| Shares redeemed | (43,013,589) | (497,846,146) | (31,061,870) | (395,297,040) |
| Net decrease | (22,757,565) | (262,299,998) | (15,735,926) | (199,263,049) |
| Advisor Class | | | | |
| Shares sold | 189,669 | 2,225,293 | 356,251 | 4,648,197 |
| Distributions reinvested | 43,642 | 505,241 | 63,243 | 825,224 |
| Shares redeemed | (874,069) | (9,914,238) | (781,887) | (9,969,995) |
| Net decrease | (640,758) | (7,183,704) | (362,393) | (4,496,574) |
| Class C | | | | |
| Shares sold | 629,621 | 7,279,820 | 471,057 | 6,020,898 |
| Distributions reinvested | 66,235 | 766,968 | 77,721 | 1,011,598 |
| Shares redeemed | (1,161,611) | (13,507,005) | (1,189,578) | (15,212,863) |
| Net decrease | (465,755) | (5,460,217) | (640,800) | (8,180,367) |
| Institutional Class | | | | |
| Shares sold | 9,786,080 | 114,120,374 | 10,379,714 | 131,939,975 |
| Distributions reinvested | 899,980 | 10,426,510 | 957,213 | 12,417,286 |
| Shares redeemed | (26,473,713) | (307,156,273) | (13,637,930) | (171,217,167) |
| Net decrease | (15,787,653) | (182,609,389) | (2,301,003) | (26,859,906) |
| Institutional 2 Class | | | | |
| Shares sold | 244,345 | 2,845,670 | 360,125 | 4,703,575 |
| Distributions reinvested | 43,193 | 500,441 | 50,657 | 660,216 |
| Shares redeemed | (410,037) | (4,751,693) | (747,053) | (9,699,446) |
| Net decrease | (122,499) | (1,405,582) | (336,271) | (4,335,655) |
| Institutional 3 Class | | | | |
| Shares sold | 13,832,706 | 161,084,287 | 746,569 | 9,507,614 |
| Distributions reinvested | 69,557 | 809,056 | 67,158 | 874,575 |
| Shares redeemed | (6,299,412) | (72,812,103) | (984,102) | (12,327,486) |
| Net increase (decrease) | 7,602,851 | 89,081,240 | (170,375) | (1,945,297) |
| Total net decrease | (32,171,379) | (369,877,650) | (19,546,768) | (245,080,848) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 31 |
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 ratios of expenses and net investment income are 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 7/31/2023 | $12.16 | 0.41 | (0.47) | (0.06) | (0.40) | — | (0.40) |
| Year Ended 7/31/2022 | $13.84 | 0.36 | (1.61) | (1.25) | (0.36) | (0.07) | (0.43) |
| Year Ended 7/31/2021 | $13.50 | 0.38 | 0.38 | 0.76 | (0.38) | (0.04) | (0.42) |
| Year Ended 7/31/2020 | $13.63 | 0.43 | (0.06) | 0.37 | (0.43) | (0.07) | (0.50) |
| Year Ended 7/31/2019 | $13.35 | 0.50 | 0.34 | 0.84 | (0.55) | (0.01) | (0.56) |
| Advisor Class |
| Year Ended 7/31/2023 | $12.16 | 0.43 | (0.46) | (0.03) | (0.43) | — | (0.43) |
| Year Ended 7/31/2022 | $13.83 | 0.39 | (1.60) | (1.21) | (0.39) | (0.07) | (0.46) |
| Year Ended 7/31/2021 | $13.50 | 0.40 | 0.38 | 0.78 | (0.41) | (0.04) | (0.45) |
| Year Ended 7/31/2020 | $13.63 | 0.45 | (0.05) | 0.40 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.35 | 0.52 | 0.35 | 0.87 | (0.58) | (0.01) | (0.59) |
| Class C |
| Year Ended 7/31/2023 | $12.16 | 0.34 | (0.47) | (0.13) | (0.33) | — | (0.33) |
| Year Ended 7/31/2022 | $13.83 | 0.29 | (1.60) | (1.31) | (0.29) | (0.07) | (0.36) |
| Year Ended 7/31/2021 | $13.50 | 0.29 | 0.38 | 0.67 | (0.30) | (0.04) | (0.34) |
| Year Ended 7/31/2020 | $13.63 | 0.34 | (0.06) | 0.28 | (0.34) | (0.07) | (0.41) |
| Year Ended 7/31/2019 | $13.35 | 0.41 | 0.35 | 0.76 | (0.47) | (0.01) | (0.48) |
| Institutional Class |
| Year Ended 7/31/2023 | $12.16 | 0.43 | (0.45) | (0.02) | (0.43) | — | (0.43) |
| Year Ended 7/31/2022 | $13.84 | 0.39 | (1.61) | (1.22) | (0.39) | (0.07) | (0.46) |
| Year Ended 7/31/2021 | $13.50 | 0.40 | 0.39 | 0.79 | (0.41) | (0.04) | (0.45) |
| Year Ended 7/31/2020 | $13.64 | 0.45 | (0.06) | 0.39 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.35 | 0.52 | 0.36 | 0.88 | (0.58) | (0.01) | (0.59) |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $12.16 | 0.43 | (0.45) | (0.02) | (0.43) | — | (0.43) |
| Year Ended 7/31/2022 | $13.84 | 0.39 | (1.61) | (1.22) | (0.39) | (0.07) | (0.46) |
| Year Ended 7/31/2021 | $13.50 | 0.41 | 0.38 | 0.79 | (0.41) | (0.04) | (0.45) |
| Year Ended 7/31/2020 | $13.64 | 0.45 | (0.06) | 0.39 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.35 | 0.52 | 0.36 | 0.88 | (0.58) | (0.01) | (0.59) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 32 | Columbia Tax-Exempt Fund | Annual Report 2023 |
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 7/31/2023 | $11.70 | (0.38%) | 0.74%(c) | 0.74%(c),(d) | 3.47% | 19% | $1,694,619 |
| Year Ended 7/31/2022 | $12.16 | (9.15%) | 0.73%(c) | 0.72%(c),(d) | 2.80% | 16% | $2,037,502 |
| Year Ended 7/31/2021 | $13.84 | 5.74% | 0.72%(e) | 0.72%(d),(e) | 2.78% | 13% | $2,536,239 |
| Year Ended 7/31/2020 | $13.50 | 2.76% | 0.73%(e) | 0.73%(d),(e) | 3.16% | 29% | $2,550,497 |
| Year Ended 7/31/2019 | $13.63 | 6.51% | 0.73% | 0.73% | 3.74% | 20% | $2,548,777 |
| Advisor Class |
| Year Ended 7/31/2023 | $11.70 | (0.18%) | 0.54%(c) | 0.54%(c),(d) | 3.65% | 19% | $13,441 |
| Year Ended 7/31/2022 | $12.16 | (8.91%) | 0.52%(c) | 0.52%(c),(d) | 2.99% | 16% | $21,757 |
| Year Ended 7/31/2021 | $13.83 | 5.88% | 0.52%(e) | 0.52%(d),(e) | 2.97% | 13% | $29,770 |
| Year Ended 7/31/2020 | $13.50 | 2.96% | 0.53%(e) | 0.53%(d),(e) | 3.36% | 29% | $26,679 |
| Year Ended 7/31/2019 | $13.63 | 6.72% | 0.53% | 0.53% | 3.93% | 20% | $21,407 |
| Class C |
| Year Ended 7/31/2023 | $11.70 | (0.98%) | 1.34%(c) | 1.34%(c),(d) | 2.87% | 19% | $24,894 |
| Year Ended 7/31/2022 | $12.16 | (9.63%) | 1.38%(c) | 1.32%(c),(d) | 2.20% | 16% | $31,541 |
| Year Ended 7/31/2021 | $13.83 | 5.03% | 1.47%(e) | 1.33%(d),(e),(f) | 2.17% | 13% | $44,740 |
| Year Ended 7/31/2020 | $13.50 | 2.09% | 1.48%(e) | 1.38%(d),(e),(f) | 2.51% | 29% | $56,855 |
| Year Ended 7/31/2019 | $13.63 | 5.82% | 1.48% | 1.38%(f) | 3.09% | 20% | $59,114 |
| Institutional Class |
| Year Ended 7/31/2023 | $11.71 | (0.09%) | 0.54%(c) | 0.54%(c),(d) | 3.65% | 19% | $327,608 |
| Year Ended 7/31/2022 | $12.16 | (8.97%) | 0.53%(c) | 0.53%(c),(d) | 3.01% | 16% | $532,342 |
| Year Ended 7/31/2021 | $13.84 | 5.95% | 0.52%(e) | 0.52%(d),(e) | 2.97% | 13% | $637,596 |
| Year Ended 7/31/2020 | $13.50 | 2.89% | 0.53%(e) | 0.53%(d),(e) | 3.37% | 29% | $613,307 |
| Year Ended 7/31/2019 | $13.64 | 6.80% | 0.53% | 0.53% | 3.94% | 20% | $781,834 |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $11.71 | (0.08%) | 0.53%(c) | 0.53%(c) | 3.68% | 19% | $13,264 |
| Year Ended 7/31/2022 | $12.16 | (8.96%) | 0.51%(c) | 0.51%(c) | 3.00% | 16% | $15,272 |
| Year Ended 7/31/2021 | $13.84 | 5.97% | 0.51%(e) | 0.51%(e) | 3.00% | 13% | $22,033 |
| Year Ended 7/31/2020 | $13.50 | 2.90% | 0.52%(e) | 0.52%(e) | 3.36% | 29% | $50,150 |
| Year Ended 7/31/2019 | $13.64 | 6.81% | 0.52% | 0.52% | 3.94% | 20% | $8,978 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 33 |
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 7/31/2023 | $12.19 | 0.44 | (0.45) | (0.01) | (0.44) | — | (0.44) |
| Year Ended 7/31/2022 | $13.88 | 0.40 | (1.62) | (1.22) | (0.40) | (0.07) | (0.47) |
| Year Ended 7/31/2021 | $13.54 | 0.41 | 0.39 | 0.80 | (0.42) | (0.04) | (0.46) |
| Year Ended 7/31/2020 | $13.67 | 0.46 | (0.06) | 0.40 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.39 | 0.53 | 0.35 | 0.88 | (0.59) | (0.01) | (0.60) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Ratios include interfund lending expense which is less than 0.01%. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Ratios include interest and fee expense related to the participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund’s net assets, net asset value per share, total return or net investment income. |
| (f) | Ratios include the impact of voluntary waivers paid by the Investment Manager. For the periods indicated below, if the Investment Manager had not paid these voluntary waivers, the Fund’s net expense ratio would increase by: |
| | 7/31/2021 | 7/31/2020 | 7/31/2019 |
| Class C | 0.01% | 0.10% | 0.10% |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 34 | Columbia Tax-Exempt Fund | Annual Report 2023 |
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 7/31/2023 | $11.74 | (0.02%) | 0.48%(c) | 0.48%(c) | 3.78% | 19% | $110,262 |
| Year Ended 7/31/2022 | $12.19 | (8.96%) | 0.47%(c) | 0.46%(c) | 3.07% | 16% | $21,828 |
| Year Ended 7/31/2021 | $13.88 | 6.01% | 0.47%(e) | 0.47%(e) | 3.03% | 13% | $27,202 |
| Year Ended 7/31/2020 | $13.54 | 3.03% | 0.47%(e) | 0.47%(e) | 3.42% | 29% | $20,467 |
| Year Ended 7/31/2019 | $13.67 | 6.78% | 0.47% | 0.47% | 3.97% | 20% | $17,056 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Annual Report 2023
| 35 |
Notes to Financial Statements
July 31, 2023
Note 1. Organization
Columbia Tax-Exempt Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
Note 2. Summary of significant accounting policies
Basis of preparation
The Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are valued based on prices obtained from pricing services, which are intended to reflect 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 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.
| 36 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, failure of the clearinghouse or CCP may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement) or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
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
Columbia Tax-Exempt Fund | Annual Report 2023
| 37 |
Notes to Financial Statements (continued)
July 31, 2023
broker or receive interest income on cash collateral pledged to the broker. 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 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.
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 July 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 1,472,672 |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended July 31, 2023:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — short | 45,168,976 |
| 38 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
| * | Based on the ending daily outstanding amounts for the year ended July 31, 2023. |
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. The Fund may also adjust accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. 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 Tax-Exempt Fund | Annual Report 2023
| 39 |
Notes to Financial Statements (continued)
July 31, 2023
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncement
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will, among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month transition period after the effective date of the amendments.
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 July 31, 2023 was 0.46% 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 "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to
| 40 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
serve as sub-transfer agent. Prior to January 1, 2023, SS&C GIDS was known as DST Asset Manager Solutions, Inc. The Transfer Agent pays the fees of SS&C GIDS for services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the Board of Trustees from time to time.
The Transfer Agent also receives compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, prior to December 1, 2022, Institutional 3 Class shares were subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the average daily net assets attributable to that share class.
For the year ended July 31, 2023, 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 | 0.07 |
| Advisor Class | 0.07 |
| Class C | 0.07 |
| Institutional Class | 0.07 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
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 July 31, 2023, these minimum account balance fees reduced total expenses of the Fund by $2,795.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.20% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.60% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended July 31, 2023, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 242,701 |
| Class C | — | 1.00(b) | 2,881 |
Columbia Tax-Exempt Fund | Annual Report 2023
| 41 |
Notes to Financial Statements (continued)
July 31, 2023
| (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:
| | December 1, 2022
through
November 30, 2023 | Prior to
December 1, 2022 |
| Class A | 0.76% | 0.77% |
| Advisor Class | 0.56 | 0.57 |
| Class C | 1.36 | 1.37 |
| Institutional Class | 0.56 | 0.57 |
| Institutional 2 Class | 0.55 | 0.55 |
| Institutional 3 Class | 0.50 | 0.51 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Reflected in the contractual cap commitment, prior to December 1, 2022, is the Transfer Agent’s contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.00% for Institutional 3 Class of the average daily net assets attributable to that share class. 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 July 31, 2023, these differences were primarily due to differing treatment for tax straddles, investments in partnerships and/or grantor trusts, principal and/or interest from fixed income securities, defaulted securities/troubled debt, capital loss carryforwards, trustees’ deferred compensation, distributions, re-characterization of distributions for investments and miscellaneous adjustments. 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) ($) | Paid in
capital ($) |
| 261,840 | (267,452) | 5,612 |
| 42 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended July 31, 2023 | Year Ended July 31, 2022 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 154,077 | 80,620,073 | — | 80,774,150 | 67,934 | 85,442,905 | 16,510,394 | 102,021,233 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed tax-
exempt income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| — | 40,192,862 | — | (91,766,573) | (196,668,070) |
At July 31, 2023, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 2,380,602,397 | 19,451,383 | (216,119,453) | (196,668,070) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at July 31, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended July 31, 2023, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (18,448,065) | (73,318,508) | (91,766,573) | — |
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 $445,156,816 and $793,085,309, respectively, for the year ended July 31, 2023. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Columbia Tax-Exempt Fund | Annual Report 2023
| 43 |
Notes to Financial Statements (continued)
July 31, 2023
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the Interfund Program during the year ended July 31, 2023 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Borrower | 2,454,286 | 4.06 | 35 |
Interest expense incurred by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had an outstanding interfund loan balance at July 31, 2023 as shown in the Statement of Assets and Liabilities. The loans are unsecured.
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 27, 2022 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% 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 27, 2022 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 secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during the year ended July 31, 2023.
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 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.
| 44 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Liquidity risk
Liquidity risk is the risk associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another, more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Securities issued by a particular state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Columbia Tax-Exempt Fund | Annual Report 2023
| 45 |
Notes to Financial Statements (continued)
July 31, 2023
Shareholder concentration risk
At July 31, 2023, affiliated shareholders of record owned 37.8% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to the Fund.
| 46 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Tax-Exempt Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Tax-Exempt Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of July 31, 2023, the related statement of operations for the year ended July 31, 2023, the statement of changes in net assets for each of the two years in the period ended July 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2023 (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 July 31, 2023, 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 July 31, 2023 and the financial highlights for each of the five years in the period ended July 31, 2023 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 July 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 21, 2023
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
Columbia Tax-Exempt Fund | Annual Report 2023
| 47 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2023. Shareholders will be notified in early 2024 of the amounts for use in preparing 2023 income tax returns.
Exempt-
interest
dividends | |
| 99.81% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 173 | 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; former Board Member, Chase Bank International, 1993-1994 |
| 48 | Columbia Tax-Exempt Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
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-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 173 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Richard M. Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Chair since 2023; Trustee since 2007 | President, Springboard – Partners in Cross Cultural Leadership (consulting company), since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 173 | Trustee, New York Presbyterian Hospital Board, since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee), since 2019; Director, Apollo Commercial Real Estate Finance, Inc. (Chair, Nominating and Governance Committee) (financial services), since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 173 | Director, EQT Corporation (natural gas producer), since 2019; former Director, Whiting Petroleum Corporation (independent oil and gas company), 2020-2022 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | CEO and President, RhodeWay Financial (non-profit financial planning firm), since December 2022; Member, FINRA National Adjudicatory Council, since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 171 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios (former mutual fund complex), January 2015-December 2017 |
Columbia Tax-Exempt Fund | Annual Report 2023
| 49 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm), since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform), since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 171 | Treasurer, Edinburgh University US Trust Board, since January 2023; Member, HBS Community Action Partners Board, since September 2022; former Director, University of Edinburgh Business School (Member of US Board), 2004-2019; former Director, Boston Public Library Foundation, 2008-2017 |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Professor of Economics and Management, Bentley University, since 2002; Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 173 | Former Trustee, MA Taxpayers Foundation, 1997-2022; former Director, The MA Business Roundtable, 2003-2019; former Chairperson, Innovation Index Advisory Committee, MA Technology Collaborative, 1997-2020 |
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 | 173 | Trustee, Catholic Schools Foundation, since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Trustee since 1996 | 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 | 173 | Director, SpartanNash Company since November 2013 (Chair of the Board, since May 2021) (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing), since August 2006; 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 | 171 | None |
| 50 | Columbia Tax-Exempt Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; former Chief Executive Officer of Freddie Mac and Chief Financial Officer of U.S. Bank | 171 | Director, CSX Corporation (transportation suppliers); 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; former Senior Adviser to The Carlyle Group (financial services), March 2008-September 2008; former Governance Consultant to Bridgewater Associates, January 2013-December 2015 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2004 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company), since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 173 | Director, Valmont Industries, Inc. (irrigation systems manufacturer), since 2012; Trustee, Carleton College (on the Investment Committee), since 1987; Trustee, Carnegie Endowment for International Peace (on the Investment Committee), since 2009 |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2022; Advisor, Paradigm Asset Management, November 2016-January 2022; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 171 | Independent Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2010-2021; Independent Director, (Executive Committee and Chair, Audit Committee), Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2016; Independent Director, (Investment Committee), Sarona Asset Management, since 2019 |
Columbia Tax-Exempt Fund | Annual Report 2023
| 51 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 173 | Former Director, NAPE (National Alliance for Partnerships in Equity) Education Foundation, October 2016-October 2020; Advisory Board, Jennersville YMCA, since 2022 |
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 and
other relevant Board experience |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC, since April 2015; President and Principal Executive Officer of the Columbia Funds, since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 173 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since, January 2022; Director, Columbia Threadneedle Canada, Inc., since December 2022 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Funds Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Carrig, Flynn, Paglia, and Yeager serve as directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| ** | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
| 52 | Columbia Tax-Exempt Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and North America Head of Operations & Investor Services, Columbia Management Investment Advisers, LLC, since June 2023 (previously Senior Vice President and Head of Global Operations, March 2022 – June 2023, Vice President, Head of North America Operations, and Co-Head of Global Operations, June 2019 - February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds, since 2002. Director, Ameriprise Trust Company, since June 2023. |
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. |
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. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001 - January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc., since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC, since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc., since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl, since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc., since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); formerly, 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; formerly, Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds, since 2005. |
Columbia Tax-Exempt Fund | Annual Report 2023
| 53 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC, since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5903 Ameriprise Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | Vice President, Global Investment Operations Services, Columbia Management Investment Advisers, LLC, since 2010; Director (since January 2007) and President (since October 2014), Columbia Management Investment Services Corp.; Director (since December 2017) and President (since January 2017), Ameriprise Trust Company. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2022 through December 31, 2022, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
| 54 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Approval of Management Agreement
(Unaudited)
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 Tax-Exempt 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 (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) 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 (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 22, 2023 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 one or more 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; |
| • | 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). |
Columbia Tax-Exempt Fund | Annual Report 2023
| 55 |
Approval of Management Agreement (continued)
(Unaudited)
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. 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.
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 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. 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 were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
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.
Investment performance
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 Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that Fund performance was well within the range of that of its 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.
| 56 | Columbia Tax-Exempt Fund | Annual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
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 the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. 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.
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, 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 22, 2023, 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 Tax-Exempt Fund | Annual Report 2023
| 57 |
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Columbia Tax-Exempt 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.
© 2023 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
July 31, 2023
Columbia Ultra Short Term Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Ultra Short Term 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, is available on columbiathreadneedleus.com/investor/ or 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 Ultra Short Term Bond Fund | Annual Report 2023
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital.
Portfolio management
Gregory Liechty
Co-Portfolio Manager
Managed Fund since 2016
Ronald Stahl, CFA
Co-Portfolio Manager
Managed Fund since 2015
| Average annual total returns (%) (for the period ended July 31, 2023) |
| | | Inception | 1 Year | 5 Years | 10 Years |
| Class A* | 02/20/19 | 4.48 | 1.77 | 1.18 |
| Advisor Class* | 12/03/18 | 4.63 | 1.94 | 1.34 |
| Institutional Class* | 12/03/18 | 4.64 | 1.95 | 1.34 |
| Institutional 3 Class | 03/08/04 | 4.69 | 2.02 | 1.43 |
| Bloomberg U.S. Short-Term Government/Corporate Index | | 3.58 | 1.68 | 1.17 |
Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions. The table does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of shares.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting 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 U.S. Short-Term Government/Corporate Index tracks the performance of U.S. Government and corporate bonds rated investment grade or better, with maturities of less than one year.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (July 31, 2013 — July 31, 2023)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia Ultra Short Term Bond Fund during the stated time period, and does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares.
| Portfolio breakdown (%) (at July 31, 2023) |
| Asset-Backed Securities — Non-Agency | 32.0 |
| Commercial Mortgage-Backed Securities - Non-Agency | 4.3 |
| Corporate Bonds & Notes | 48.6 |
| Foreign Government Obligations | 0.9 |
| Money Market Funds | 1.6 |
| Residential Mortgage-Backed Securities - Agency | 0.0(a) |
| Residential Mortgage-Backed Securities - Non-Agency | 10.5 |
| U.S. Government & Agency Obligations | 1.0 |
| U.S. Treasury Obligations | 1.1 |
| Total | 100.0 |
Percentages indicated are based upon total investments excluding investments in derivatives, if any. The Fund’s portfolio composition is subject to change.
| Quality breakdown (%) (at July 31, 2023) |
| AAA rating | 34.1 |
| AA rating | 9.4 |
| A rating | 23.9 |
| BBB rating | 25.5 |
| Not rated | 7.1 |
| Total | 100.0 |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Manager Discussion of Fund Performance
(Unaudited)
For the 12-month period that ended July 31, 2023, Class A shares of Columbia Ultra Short Term Bond Fund returned 4.48%. The Fund’s benchmark, the Bloomberg U.S. Short-Term Government/Corporate Index returned 3.58%.
Market overview
Investor sentiment during the period was focused on the U.S. Federal Reserve’s (Fed’s) ongoing battle against inflation and the possibility of that fight triggering a recession. In an effort to tame historically elevated inflation, the Fed raised the federal funds target rate from 2.50% in August 2022 to 5.50% by July 2023.
March 2023 saw the failure of three U.S. regional banks and the collapse of European giant Credit Suisse, which raised concerns of a looming financial crisis. The Fed responded by initiating the Bank Term Funding Program to support liquidity, while the market began to price in multiple Fed rate cuts before year end. The outlook for easier monetary policy, and the flight to safety brought about by the specter of a banking crisis, led U.S.Treasury yields sharply lower, supporting bond market performance. At its March 23 meeting, the Fed raised the target for its benchmark overnight lending rate by a quarter-point to a range of 4.75%-5.0%. The rate hike was well-received by financial markets as a signal that the Fed believed the financial system remained on generally sound footing.
Ultimately, Fed intervention brought stability to the banking sector. After another quarter-point hike in May, the Fed opted out of a rate increase in mid-June for the first time in ten consecutive meetings dating back to March 2022. However, given surprisingly resilient growth data and continued strength in employment, the central bank signaled the likelihood of two more increases in the federal funds target rate before the end of 2023 in its continued fight to drive inflation down. The rate of year-over-year U.S. inflation had decelerated to end the period at 3.8% (measured by the Core Personal Consumption Expenditures (PCE) Price Index), a meaningful reduction from the four decade high of 9.1% in June 2022, though still nearly double the Fed’s 2% inflation target. The message that rates may stay higher for longer remains with investors.
Most credit-related sectors in the aggregate fixed-income market produced negative absolute returns but positive excess returns, relative to U.S. Treasuries, during the period. In securitized bonds, agency mortgage-backed securities (MBS) produced both negative absolute and excess returns, but asset-backed securities (ABS) produced positive absolute returns and excess returns over the period. On an excess return basis, emerging market bonds performed the best, followed by high-yield bonds and lower rated investment-grade corporate bonds. Shorter duration bonds outperformed longer duration bonds. Within the short-term investment grade corporate market, lower rated securities generated positive excess returns relative to Treasuries and outperformed higher quality securities over the last year.
The Fund’s notable contributors during the period
| • | The largest positive contributor to the Fund’s performance relative to its benchmark came from sector allocation decisions. |
| • | The Fund’s overweight allocation to investment-grade corporates and exposure to out-of-benchmark sectors, namely ABS and non-agency collateralized mortgage obligations (CMOs), were additive to relative performance as these sectors outperformed the benchmark during the period. |
| • | Sector weightings were continuously evaluated throughout the period and fine-tuned according to our outlook. We increased the Fund’s allocation to non-agency CMOs and non-agency commercial MBS as we saw that valuations were relatively attractive in 2023. |
The Fund’s notable detractors during the period
| • | The Fund began the reporting period with a shorter duration positioning than the benchmark. We slightly added duration during the period and reduced our floating rate exposure which had a modestly negative impact to performance. |
Derivatives usage
During the period, the Fund used U.S. Treasury futures to help maintain its targeted duration and yield curve exposures. The use of these derivatives had a positive impact on Fund performance.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Mortgage- and asset-backed securities are affected by interest rates, financial health of issuers/originators, creditworthiness of entities providing credit enhancements and the value of underlying assets. Fixed-income securities present issuer default risk. 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. 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. Investing in derivatives is a specialized activity involves special risks, which may result in significant losses. Market or other (e.g., interest rate) environments may adversely affect the liquidity of Fund investments, negatively impacting their price. Generally, the less liquid the market at the time the Fund sells a holding, the greater the risk of loss or decline of value to the Fund. 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 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 Ultra Short Term Bond Fund | Annual Report 2023 |
Understanding Your Fund’s Expenses
(Unaudited)
As an investor, you incur two types of costs. There are shareholder transaction costs, which 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| February 1, 2023 — July 31, 2023 |
| | Account value at the
beginning of the
period ($) | 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 | 1,025.10 | 1,022.61 | 2.21 | 2.21 | 0.44 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,025.80 | 1,023.36 | 1.46 | 1.45 | 0.29 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,025.80 | 1,023.36 | 1.46 | 1.45 | 0.29 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,027.30 | 1,023.65 | 1.16 | 1.15 | 0.23 |
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 Ultra Short Term Bond Fund | Annual Report 2023
| 7 |
Portfolio of Investments
July 31, 2023
(Percentages represent value of investments compared to net assets)
Investments in securities
| Asset-Backed Securities — Non-Agency 31.8% |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| ACC Auto Trust(a) |
| Series 2021-A Class A |
| 04/15/2027 | 1.080% | | 47,300 | 47,149 |
| ACC Trust(a) |
| Series 2022-1 Class A |
| 09/20/2024 | 1.190% | | 1,149,843 | 1,143,412 |
| American Credit Acceptance Receivables Trust(a) |
| Series 2022-3 Class A |
| 02/13/2026 | 4.120% | | 860,272 | 858,995 |
| Subordinated Series 2020-3 Class C |
| 06/15/2026 | 1.850% | | 309,920 | 309,145 |
| Subordinated Series 2021-1 Class C |
| 03/15/2027 | 0.830% | | 502,807 | 497,820 |
| Subordinated Series 2021-3 Class C |
| 11/15/2027 | 0.980% | | 8,442,550 | 8,300,819 |
| AmeriCredit Automobile Receivables Trust |
| Series 2021-3 Class A3 |
| 08/18/2026 | 0.760% | | 14,385,133 | 13,933,988 |
| Arivo Acceptance Auto Loan Receivables Trust(a) |
| Series 2021-1A Class A |
| 01/15/2027 | 1.190% | | 2,644,152 | 2,585,361 |
| Atalaya Equipment Leasing Trust(a) |
| Series 2021-1A Class A2 |
| 05/15/2026 | 1.230% | | 2,401,588 | 2,358,112 |
| Carvana Auto Receivables Trust |
| Series 2021-N1 Class A |
| 01/10/2028 | 0.700% | | 5,206,149 | 4,917,026 |
| Series 2021-N2 Class A1 |
| 03/10/2028 | 0.320% | | 265,211 | 264,467 |
| Series 2021-N3 Class A1 |
| 06/12/2028 | 0.350% | | 1,597,377 | 1,578,064 |
| CCG Receivables Trust(a) |
| Series 2020-1 Class A2 |
| 12/14/2027 | 0.540% | | 2,927,601 | 2,894,759 |
| Series 2021-1 Class A2 |
| 06/14/2027 | 0.300% | | 1,729,672 | 1,692,672 |
| Chase Auto Credit Linked Notes(a) |
| Subordinated Series 2020-2 Class B |
| 02/25/2028 | 0.840% | | 1,939,738 | 1,911,632 |
| Subordinated Series 2020-2 Class C |
| 02/25/2028 | 1.139% | | 300,198 | 295,819 |
| Chase Auto Credit-Linked Notes(a) |
| Subordinated Series 2020-1 Class B |
| 01/25/2028 | 0.991% | | 130,932 | 130,322 |
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Commercial Equipment Finance LLC(a) |
| Series 2021-A Class A |
| 02/16/2027 | 2.050% | | 7,574,815 | 7,338,329 |
| CPS Auto Receivables Trust(a) |
| Series 2022-A Class A |
| 04/16/2029 | 0.980% | | 540,892 | 539,206 |
| Credito Real USA Auto Receivables Trust(a) |
| Series 2021-1A Class A |
| 02/16/2027 | 1.350% | | 1,009,064 | 996,011 |
| Dext ABS LLC(a) |
| Series 2020-1 Class A |
| 02/16/2027 | 1.460% | | 3,339 | 3,333 |
| Dext Asset-Backed Security LLC(a) |
| Series 2021-1 Class A |
| 02/15/2028 | 1.120% | | 10,028,900 | 9,646,128 |
| Dllmt LLC(a) |
| Series 2021-1A Class A3 |
| 07/21/2025 | 1.000% | | 6,868,528 | 6,652,570 |
| Drive Auto Receivables Trust |
| Subordinated Series 2020-2 Class C |
| 08/17/2026 | 2.280% | | 796,841 | 795,070 |
| DT Auto Owner Trust(a) |
| Series 2020-2A Class C |
| 03/16/2026 | 3.280% | | 1,006,077 | 998,989 |
| Series 2022-3A Class A |
| 10/15/2026 | 6.050% | | 15,776,411 | 15,773,186 |
| Subordinated Series 2019-3A Class E |
| 08/17/2026 | 3.850% | | 19,375,000 | 19,226,578 |
| Subordinated Series 2020-1A Class D |
| 11/17/2025 | 2.550% | | 7,790,192 | 7,637,847 |
| Enterprise Fleet Financing LLC(a) |
| Series 2023-1 Class A1 |
| 03/20/2024 | 5.330% | | 3,342,320 | 3,338,308 |
| Exeter Automobile Receivables Trust |
| Series 2023-1A Class A2 |
| 06/16/2025 | 5.610% | | 10,669,478 | 10,660,141 |
| Subordinated Series 2021-1A Class C |
| 01/15/2026 | 0.740% | | 4,568,526 | 4,517,622 |
| FHF Trust(a) |
| Series 2021-1A Class A |
| 03/15/2027 | 1.270% | | 2,860,687 | 2,753,756 |
| Series 2021-2A Class A |
| 12/15/2026 | 0.830% | | 6,505,540 | 6,284,406 |
| First Investors Auto Owner Trust(a) |
| Series 2021-2A Class A |
| 03/15/2027 | 0.480% | | 6,705,744 | 6,517,950 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Flagship Credit Auto Trust(a) |
| Series 2021-3 Class A |
| 07/15/2027 | 0.360% | | 7,351,997 | 7,178,687 |
| Ford Credit Auto Lease Trust |
| Series 2022-A Class A3 |
| 05/15/2025 | 3.230% | | 675,000 | 668,112 |
| Foursight Capital Automobile Receivables Trust(a) |
| Series 2022-1 Class A2 |
| 09/15/2025 | 1.150% | | 499,497 | 497,189 |
| FREED ABS Trust(a) |
| Series 2022-4FP Class A |
| 12/18/2029 | 6.490% | | 576,916 | 576,971 |
| GLS Auto Receivables Issuer Trust(a) |
| Subordinated Series 2020-4A Class C |
| 11/17/2025 | 1.140% | | 1,369,904 | 1,358,503 |
| Subordinated Series 2021-1A Class C |
| 01/15/2027 | 1.200% | | 535,473 | 529,462 |
| GM Financial Consumer Automobile Receivables Trust |
| Series 2023-1 Class A2A |
| 03/16/2026 | 5.190% | | 2,989,000 | 2,983,899 |
| GreatAmerica Leasing Receivables(a) |
| Series 2023-1 Class A1 |
| 06/14/2024 | 5.519% | | 16,861,520 | 16,855,799 |
| Hyundai Auto Receivables Trust |
| Series 2021-B Class A3 |
| 01/15/2026 | 0.380% | | 4,848,609 | 4,696,149 |
| JPMorgan Chase Bank NA(a) |
| Subordinated Series 2021-1 Class C |
| 09/25/2028 | 1.024% | | 3,031,700 | 2,941,792 |
| Subordinated Series 2021-2 Class C |
| 12/26/2028 | 0.969% | | 1,112,831 | 1,073,790 |
| JPMorgan Chase Bank NA - CACLN(a) |
| Series 2021-3 Class B |
| 02/26/2029 | 0.760% | | 4,477,170 | 4,267,008 |
| Series 2021-3 Class C |
| 02/26/2029 | 0.860% | | 1,826,550 | 1,738,288 |
| LAD Auto Receivables Trust(a) |
| Series 2021-1A Class A |
| 08/17/2026 | 1.300% | | 1,580,695 | 1,543,368 |
| Lendbuzz Securitization Trust(a) |
| Series 2021-1A Class A |
| 06/15/2026 | 1.460% | | 8,457,889 | 8,130,713 |
| LendingPoint Asset Securitization Trust(a) |
| Series 2020-REV1 Class A |
| 10/15/2028 | 2.731% | | 649,379 | 647,133 |
| LL ABS Trust(a) |
| Series 2021-1A Class A |
| 05/15/2029 | 1.070% | | 1,537,390 | 1,498,047 |
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Mercedes-Benz Auto Receivables Trust |
| Series 2020-1 Class A4 |
| 10/15/2026 | 0.770% | | 5,575,000 | 5,387,929 |
| MMAF Equipment Finance LLC(a) |
| Series 2020-A Class A2 |
| 04/09/2024 | 0.740% | | 2,237 | 2,235 |
| MVW Owner Trust(a) |
| Series 2017-1A Class A |
| 12/20/2034 | 2.420% | | 1,914,508 | 1,909,680 |
| NMEF Funding LLC(a) |
| Series 2021-A Class A2 |
| 12/15/2027 | 0.810% | | 620,425 | 619,284 |
| Octane Receivables Trust(a) |
| Series 2020-1A Class A |
| 02/20/2025 | 1.710% | | 1,199,244 | 1,196,364 |
| Series 2021-2A Class A |
| 09/20/2028 | 1.210% | | 12,221,118 | 11,792,092 |
| Oportun Issuance Trust(a) |
| Series 2022-3 Class A |
| 01/08/2030 | 7.451% | | 6,467,474 | 6,477,708 |
| Pagaya AI Debt Selection Trust(a) |
| Series 2021-1 Class A |
| 11/15/2027 | 1.180% | | 219,835 | 219,346 |
| Series 2021-3 Class A |
| 05/15/2029 | 1.150% | | 4,958,940 | 4,923,579 |
| Series 2021-5 Class A |
| 08/15/2029 | 1.530% | | 3,792,236 | 3,733,488 |
| Pagaya AI Debt Trust(a) |
| Series 2022-1 Class A |
| 10/15/2029 | 2.030% | | 16,205,408 | 15,796,850 |
| Santander Drive Auto Receivables Trust |
| Series 2022-1 Class A3 |
| 11/17/2025 | 1.940% | | 705,610 | 703,033 |
| Series 2022-2 Class A3 |
| 10/15/2026 | 2.980% | | 6,452,108 | 6,385,777 |
| Series 2022-3 Class A3 |
| 12/15/2026 | 3.400% | | 14,285,651 | 14,125,683 |
| Series 2023-3 Class A2 |
| 08/17/2026 | 6.080% | | 3,800,000 | 3,799,340 |
| Subordinated Series 2020-4 Class C |
| 01/15/2026 | 1.010% | | 1,076,716 | 1,074,648 |
| SoFi Consumer Loan Program Trust(a) |
| Series 2022-1S Class A |
| 04/15/2031 | 6.210% | | 5,328,911 | 5,324,516 |
| Theorem Funding Trust(a) |
| Series 2021-1A Class A |
| 12/15/2027 | 1.210% | | 579,988 | 577,675 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 9 |
Portfolio of Investments (continued)
July 31, 2023
| Asset-Backed Securities — Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Series 2022-1A Class A |
| 02/15/2028 | 1.850% | | 6,776,530 | 6,684,566 |
| Toyota Auto Loan Extended Note Trust(a) |
| Series 2019-1A Class A |
| 11/25/2031 | 2.560% | | 31,813,000 | 31,052,434 |
| Tricolor Auto Securitization Trust(a) |
| Series 2022-1A Class A |
| 02/18/2025 | 3.300% | | 826,655 | 822,569 |
| Upstart Pass-Through Trust(a) |
| Series 2020-ST6 Class A |
| 01/20/2027 | 3.000% | | 1,076,163 | 1,049,520 |
| Series 2021-ST2 Class A |
| 04/20/2027 | 2.500% | | 751,374 | 723,810 |
| Series 2021-ST6 Class A |
| 08/20/2027 | 1.850% | | 2,214,076 | 2,102,966 |
| Upstart Securitization Trust(a) |
| Series 2021-3 Class A |
| 07/20/2031 | 0.830% | | 2,708,990 | 2,687,387 |
| Verizon Master Trust |
| Series 2021-1 Class A |
| 05/20/2027 | 0.500% | | 17,805,000 | 17,106,344 |
| VFI ABS LLC(a) |
| Series 2022-1A Class A |
| 03/24/2028 | 2.230% | | 5,522,727 | 5,384,455 |
| Volkswagen Auto Loan Enhanced Trust |
| Series 2020-1 Class A4 |
| 08/20/2026 | 1.260% | | 5,835,000 | 5,739,992 |
| Westlake Automobile Receivables Trust(a) |
| Series 2022-3A Class A2 |
| 07/15/2025 | 5.240% | | 5,525,168 | 5,514,263 |
| Series 2023-2A Class A1 |
| 03/15/2024 | 5.266% | | 6,090,178 | 6,088,707 |
| Subordinated Series 2021-2A Class B |
| 07/15/2026 | 0.620% | | 26,395,294 | 26,117,336 |
| World Omni Auto Receivables Trust |
| Series 2021-A Class A3 |
| 01/15/2026 | 0.300% | | 558,174 | 542,617 |
| Series 2022-A Class A3 |
| 05/17/2027 | 1.660% | | 3,575,000 | 3,435,562 |
| World Omni Select Auto Trust |
| Series 2021-A Class A3 |
| 03/15/2027 | 0.530% | | 14,917,095 | 14,482,081 |
Total Asset-Backed Securities — Non-Agency
(Cost $421,167,012) | 418,167,738 |
|
| Commercial Mortgage-Backed Securities - Non-Agency 4.3% |
| | | | |
| Commercial Mortgage Trust |
| Series 2014-CR16 Class A4 |
| 04/10/2047 | 4.051% | | 1,123,000 | 1,103,293 |
| Commercial Mortgage-Backed Securities - Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| GS Mortgage Securities Corp. Trust(a),(b) |
| Series 2022-SHIP Class A |
1-month Term SOFR + 0.731%
Floor 0.731%
08/15/2036 | 5.953% | | 13,725,000 | 13,673,943 |
| JPMBB Commercial Mortgage Securities Trust |
| Series 2014-C18 Class A5 |
| 02/15/2047 | 4.079% | | 3,500,000 | 3,432,710 |
| JPMorgan Chase Commercial Mortgage Securities Trust |
| Subordinated Series 2013-C16 Class AS |
| 12/15/2046 | 4.517% | | 9,315,000 | 9,142,971 |
| Morgan Stanley Bank of America Merrill Lynch Trust |
| Series 2013-C13 Class A4 |
| 11/15/2046 | 4.039% | | 4,885,000 | 4,843,155 |
| Morgan Stanley Bank of America Merrill Lynch Trust(c) |
| Subordinated Series 2014-C14 Class AS |
| 02/15/2047 | 4.384% | | 14,198,500 | 13,998,872 |
| Wells Fargo Commercial Mortgage Trust(a),(b) |
| Series 2017-SMP Class A |
1-month Term SOFR + 1.114%
Floor 0.875%
12/15/2034 | 6.336% | | 11,000,000 | 10,350,045 |
Total Commercial Mortgage-Backed Securities - Non-Agency
(Cost $56,895,558) | 56,544,989 |
|
| Corporate Bonds & Notes 48.3% |
| | | | |
| Aerospace & Defense 1.6% |
| BAE Systems Holdings, Inc.(a) |
| 12/15/2025 | 3.850% | | 5,350,000 | 5,154,989 |
| Boeing Co. (The) |
| 05/01/2025 | 4.875% | | 7,000,000 | 6,915,246 |
| Harris Corp. |
| 04/27/2025 | 3.832% | | 2,005,000 | 1,946,912 |
| United Technologies Corp. |
| 08/16/2025 | 3.950% | | 7,000,000 | 6,831,326 |
| Total | 20,848,473 |
| Automotive 1.0% |
| Daimler Trucks Finance North America LLC(a),(b) |
SOFR + 1.000%
04/05/2024 | 6.300% | | 7,000,000 | 7,008,292 |
| Toyota Motor Credit Corp. |
| 06/14/2024 | 0.500% | | 7,040,000 | 6,714,195 |
| Total | 13,722,487 |
| Banking 14.8% |
| American Express Co.(b) |
SOFR + 0.720%
05/03/2024 | 6.020% | | 5,647,000 | 5,652,260 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Bank of America Corp.(b) |
SOFR + 1.100%
04/25/2025 | 6.400% | | 12,325,000 | 12,358,410 |
| Bank of Montreal |
| 06/07/2025 | 3.700% | | 6,063,000 | 5,868,840 |
| Bank of New York Mellon Corp. (The)(b) |
SOFR + 0.260%
04/26/2024 | 5.560% | | 1,047,000 | 1,044,764 |
| Bank of Nova Scotia (The)(b) |
SOFR + 1.090%
06/12/2025 | 6.390% | | 6,500,000 | 6,518,586 |
| BBVA USA |
| 08/27/2024 | 2.500% | | 6,500,000 | 6,278,541 |
| Canadian Imperial Bank of Commerce(b) |
3-month USD LIBOR + 0.660%
09/13/2023 | 6.204% | | 6,395,000 | 6,397,320 |
| Citigroup, Inc.(d) |
| 04/24/2025 | 3.352% | | 12,660,000 | 12,411,587 |
| Commonwealth Bank of Australia(a),(b) |
3-month USD LIBOR + 0.820%
06/04/2024 | 6.319% | | 6,383,000 | 6,400,902 |
| Cooperatieve Rabobank UA(b) |
SOFR + 0.700%
07/18/2025 | 6.000% | | 6,375,000 | 6,388,354 |
| Credit Suisse AG |
| 08/09/2024 | 4.750% | | 6,750,000 | 6,633,237 |
| Goldman Sachs Group, Inc. (The)(b) |
3-month USD LIBOR + 1.600%
11/29/2023 | 7.063% | | 11,500,000 | 11,542,144 |
| HSBC Holdings PLC(d) |
| 08/17/2024 | 0.732% | | 6,887,000 | 6,868,002 |
| JPMorgan Chase & Co.(d) |
| 12/15/2025 | 5.546% | | 13,000,000 | 12,968,967 |
| Morgan Stanley(d) |
| 10/21/2025 | 1.164% | | 12,550,000 | 11,797,881 |
| National Australia Bank Ltd. |
| 05/13/2025 | 5.200% | | 6,325,000 | 6,309,795 |
| Royal Bank of Canada(b) |
3-month Term SOFR + 0.922%
10/05/2023 | 6.190% | | 6,389,000 | 6,392,354 |
| Skandinaviska Enskilda Banken AB(a) |
| 11/19/2025 | 1.400% | | 7,000,000 | 6,347,182 |
| State Street Corp.(d) |
| 12/03/2024 | 3.776% | | 6,804,000 | 6,753,559 |
| Svenska Handelsbanken AB(a) |
| 06/10/2025 | 3.650% | | 5,965,000 | 5,760,537 |
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Toronto-Dominion Bank (The)(b) |
SOFR + 0.910%
03/08/2024 | 6.210% | | 6,575,000 | 6,580,807 |
| Truist Bank(b) |
SOFR + 0.200%
01/17/2024 | 5.500% | | 6,600,000 | 6,550,862 |
| UBS Group AG(a),(d) |
| 08/05/2025 | 4.490% | | 6,500,000 | 6,377,304 |
| US Bancorp |
| 11/17/2025 | 3.950% | | 7,000,000 | 6,783,636 |
| Wells Fargo & Co.(d) |
| 05/19/2025 | 0.805% | | 12,000,000 | 11,501,709 |
| Westpac Banking Corp.(b) |
SOFR + 0.300%
11/18/2024 | 5.600% | | 6,500,000 | 6,479,317 |
| Total | 194,966,857 |
| Cable and Satellite 1.0% |
| Charter Communications Operating LLC/Capital(b) |
3-month USD LIBOR + 1.650%
02/01/2024 | 6.949% | | 6,552,000 | 6,576,617 |
| Comcast Corp. |
| 10/15/2025 | 3.950% | | 7,000,000 | 6,836,233 |
| Total | 13,412,850 |
| Chemicals 0.5% |
| DuPont de Nemours, Inc.(b) |
3-month USD LIBOR + 1.110%
11/15/2023 | 6.431% | | 6,389,000 | 6,393,065 |
| Construction Machinery 1.0% |
| Caterpillar Financial Services Corp. |
| 05/15/2025 | 1.450% | | 7,000,000 | 6,556,426 |
| John Deere Capital Corp. |
| 09/08/2025 | 4.050% | | 6,500,000 | 6,361,908 |
| Total | 12,918,334 |
| Consumer Products 0.5% |
| Kenvue, Inc.(a) |
| 03/22/2025 | 5.500% | | 6,275,000 | 6,304,876 |
| Diversified Manufacturing 0.7% |
| Carrier Global Corp. |
| 02/15/2025 | 2.242% | | 2,512,000 | 2,386,817 |
| Siemens Financieringsmaatschappij NV(a) |
| 05/27/2025 | 3.250% | | 6,500,000 | 6,288,250 |
| Total | 8,675,067 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 11 |
Portfolio of Investments (continued)
July 31, 2023
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Electric 3.9% |
| CenterPoint Energy, Inc.(b) |
SOFR + 0.650%
05/13/2024 | 5.950% | | 6,422,000 | 6,415,753 |
| Dominion Energy, Inc.(b) |
3-month USD LIBOR + 0.530%
09/15/2023 | 6.082% | | 6,000,000 | 6,000,478 |
| DTE Energy Co. |
| 11/01/2024 | 4.220% | | 6,000,000 | 5,893,548 |
| Duke Energy Corp. |
| 09/15/2025 | 0.900% | | 5,651,000 | 5,157,694 |
| Eversource Energy(b) |
SOFR + 0.250%
08/15/2023 | 5.550% | | 6,000,000 | 5,998,880 |
| Mississippi Power Co.(b) |
SOFR + 0.300%
06/28/2024 | 5.600% | | 5,286,000 | 5,250,901 |
| NextEra Energy Capital Holdings, Inc. |
| 03/01/2025 | 6.051% | | 6,445,000 | 6,496,123 |
| Public Service Enterprise Group, Inc. |
| 11/08/2023 | 0.841% | | 4,262,000 | 4,204,759 |
| WEC Energy Group, Inc. |
| 09/27/2025 | 5.000% | | 5,000,000 | 4,972,557 |
| Xcel Energy, Inc. |
| 06/01/2025 | 3.300% | | 1,184,000 | 1,138,663 |
| Total | 51,529,356 |
| Food and Beverage 1.5% |
| Bacardi Ltd.(a) |
| 05/15/2025 | 4.450% | | 7,000,000 | 6,818,406 |
| Mondelez International, Inc. |
| 05/04/2025 | 1.500% | | 7,000,000 | 6,548,625 |
| Tyson Foods, Inc. |
| 08/15/2024 | 3.950% | | 6,000,000 | 5,892,496 |
| Total | 19,259,527 |
| Health Care 2.9% |
| Becton Dickinson and Co. |
| 06/06/2024 | 3.363% | | 6,208,000 | 6,085,235 |
| Cigna Corp. |
| 11/15/2025 | 4.125% | | 6,500,000 | 6,345,164 |
| CVS Health Corp. |
| 07/20/2025 | 3.875% | | 7,000,000 | 6,801,913 |
| GE HealthCare Technologies, Inc. |
| 11/15/2025 | 5.600% | | 6,500,000 | 6,521,309 |
| HCA, Inc. |
| 02/15/2026 | 5.875% | | 6,575,000 | 6,593,962 |
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Thermo Fisher Scientific, Inc. |
| 10/18/2024 | 1.215% | | 6,500,000 | 6,171,515 |
| Total | 38,519,098 |
| Healthcare Insurance 0.9% |
| UnitedHealth Group, Inc. |
| 07/15/2025 | 3.750% | | 6,300,000 | 6,140,754 |
| Wellpoint, Inc. |
| 08/15/2024 | 3.500% | | 6,003,000 | 5,870,005 |
| Total | 12,010,759 |
| Independent Energy 0.8% |
| Pioneer Natural Resources Co. |
| 03/29/2026 | 5.100% | | 5,834,000 | 5,816,764 |
| Woodside Finance Ltd.(a) |
| 03/05/2025 | 3.650% | | 4,537,000 | 4,380,297 |
| Total | 10,197,061 |
| Integrated Energy 0.9% |
| Chevron USA, Inc.(b) |
3-month USD LIBOR + 0.200%
08/11/2023 | 5.539% | | 6,020,000 | 6,019,836 |
| Shell International Finance BV(b) |
3-month USD LIBOR + 0.400%
11/13/2023 | 5.721% | | 6,029,000 | 6,028,748 |
| Total | 12,048,584 |
| Life Insurance 2.0% |
| Corebridge Financial, Inc. |
| 04/04/2025 | 3.500% | | 7,000,000 | 6,726,649 |
| Five Corners Funding Trust(a) |
| 11/15/2023 | 4.419% | | 6,605,000 | 6,570,291 |
| Metropolitan Life Global Funding I(a) |
| 09/27/2024 | 0.700% | | 7,139,000 | 6,730,375 |
| New York Life Global Funding(a) |
| 06/24/2025 | 0.950% | | 1,836,000 | 1,689,589 |
| Principal Life Global Funding II(a) |
| 06/23/2025 | 1.250% | | 4,771,000 | 4,371,355 |
| Total | 26,088,259 |
| Media and Entertainment 0.9% |
| Discovery Communications LLC |
| 03/11/2026 | 4.900% | | 6,750,000 | 6,650,505 |
| Walt Disney Co. (The) |
| 09/15/2024 | 3.700% | | 4,649,000 | 4,560,115 |
| Total | 11,210,620 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Midstream 2.8% |
| Enable Midstream Partners LP |
| 05/15/2024 | 3.900% | | 4,300,000 | 4,225,977 |
| Enbridge, Inc. |
| 02/16/2024 | 2.150% | | 6,208,000 | 6,078,537 |
| Enterprise Products Operating LLC |
| 02/15/2024 | 3.900% | | 6,169,000 | 6,101,395 |
| Kinder Morgan Energy Partners LP |
| 02/01/2024 | 4.150% | | 6,083,000 | 6,028,134 |
| 05/01/2024 | 4.300% | | 1,710,000 | 1,689,428 |
| Plains All American Pipeline LP/Finance Corp. |
| 10/15/2025 | 4.650% | | 6,600,000 | 6,443,910 |
| Williams Companies, Inc. (The) |
| 09/15/2025 | 4.000% | | 6,500,000 | 6,292,681 |
| Total | 36,860,062 |
| Natural Gas 0.5% |
| NiSource, Inc. |
| 08/15/2025 | 0.950% | | 7,000,000 | 6,413,480 |
| Pharmaceuticals 3.3% |
| AbbVie, Inc. |
| 03/15/2025 | 3.800% | | 7,000,000 | 6,818,582 |
| Amgen, Inc. |
| 05/01/2025 | 3.125% | | 7,000,000 | 6,727,398 |
| AstraZeneca PLC |
| 11/16/2025 | 3.375% | | 6,700,000 | 6,458,192 |
| Bristol-Myers Squibb Co. |
| 11/13/2023 | 0.537% | | 6,500,000 | 6,407,075 |
| Gilead Sciences, Inc. |
| 02/01/2025 | 3.500% | | 4,100,000 | 3,993,774 |
| Pfizer Investment Enterprises Pte., Ltd. |
| 05/19/2026 | 4.450% | | 7,725,000 | 7,627,810 |
| Roche Holdings, Inc.(a),(b) |
SOFR + 0.240%
03/05/2024 | 5.540% | | 5,250,000 | 5,240,058 |
| Total | 43,272,889 |
| Property & Casualty 0.9% |
| Chubb INA Holdings, Inc. |
| 03/15/2025 | 3.150% | | 6,000,000 | 5,803,653 |
| Loews Corp. |
| 04/01/2026 | 3.750% | | 6,755,000 | 6,535,000 |
| Total | 12,338,653 |
| Railroads 0.9% |
| CSX Corp. |
| 11/01/2025 | 3.350% | | 6,000,000 | 5,785,423 |
| Corporate Bonds & Notes (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Union Pacific Corp. |
| 01/15/2025 | 3.250% | | 6,000,000 | 5,832,730 |
| Total | 11,618,153 |
| Retailers 0.4% |
| Lowe’s Companies, Inc. |
| 09/08/2025 | 4.400% | | 5,736,000 | 5,629,378 |
| Technology 2.2% |
| Broadcom, Inc. |
| 11/15/2025 | 3.150% | | 7,000,000 | 6,677,823 |
| International Business Machines Corp. |
| 02/12/2024 | 3.625% | | 3,525,000 | 3,486,741 |
| Microchip Technology, Inc. |
| 02/15/2024 | 0.972% | | 6,129,000 | 5,964,513 |
| NXP BV/Funding LLC |
| 03/01/2026 | 5.350% | | 6,500,000 | 6,477,830 |
| Oracle Corp. |
| 04/01/2025 | 2.500% | | 6,400,000 | 6,103,870 |
| Total | 28,710,777 |
| Transportation Services 0.3% |
| ERAC USA Finance LLC(a) |
| 11/01/2025 | 3.800% | | 4,800,000 | 4,624,178 |
| Wireless 1.0% |
| American Tower Corp. |
| 01/15/2025 | 2.950% | | 7,000,000 | 6,730,212 |
| T-Mobile USA, Inc. |
| 04/15/2025 | 3.500% | | 7,000,000 | 6,769,855 |
| Total | 13,500,067 |
| Wirelines 1.1% |
| AT&T, Inc.(b) |
3-month USD LIBOR + 1.180%
06/12/2024 | 6.720% | | 7,025,000 | 7,054,309 |
| Verizon Communications, Inc.(b) |
SOFR + 0.500%
03/22/2024 | 5.800% | | 7,035,000 | 7,038,210 |
| Total | 14,092,519 |
Total Corporate Bonds & Notes
(Cost $639,599,421) | 635,165,429 |
|
| Foreign Government Obligations(e) 0.9% |
| | | | |
| Canada 0.9% |
| Province of Ontario |
| 01/29/2024 | 3.050% | | 6,000,000 | 5,924,742 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 13 |
Portfolio of Investments (continued)
July 31, 2023
| Foreign Government Obligations(e) (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Province of Quebec |
| 10/16/2024 | 2.875% | | 6,500,000 | 6,301,364 |
| Total | 12,226,106 |
Total Foreign Government Obligations
(Cost $12,333,358) | 12,226,106 |
|
| Residential Mortgage-Backed Securities - Agency 0.0% |
| | | | |
| Federal Home Loan Mortgage Corp.(b) |
1-year CMT + 2.255%
Cap 11.180%
02/01/2036 | 4.380% | | 24,025 | 23,699 |
Total Residential Mortgage-Backed Securities - Agency
(Cost $24,010) | 23,699 |
|
| Residential Mortgage-Backed Securities - Non-Agency 10.4% |
| | | | |
| Bellemeade Re Ltd.(a),(b) |
| CMO Series 2021-1A Class M1A |
30-day Average SOFR + 1.750%
Floor 1.750%
03/25/2031 | 6.819% | | 1,842,346 | 1,844,079 |
| CMO Series 2021-3A Class M1A |
30-day Average SOFR + 1.000%
Floor 1.000%
09/25/2031 | 6.069% | | 4,343,705 | 4,306,927 |
| BVRT Financing Trust(a),(b),(f) |
| CMO Series 2021-3F Class M1 |
30-day Average SOFR + 1.750%
Floor 1.750%
07/12/2033 | 3.608% | | 3,164,586 | 3,164,586 |
| CFMT LLC(a),(c) |
| CMO Series 2021-EBO1 Class A |
| 11/25/2050 | 0.985% | | 7,281,725 | 6,707,851 |
| Connecticut Avenue Securities Trust(a),(b) |
| CMO Series 2022-R05 Class 2M1 |
30-day Average SOFR + 1.900%
04/25/2042 | 6.969% | | 9,768,081 | 9,819,678 |
| Freddie Mac STACR REMIC Trust(a),(b) |
| CMO Series 2022-HQA1 Class M1A |
30-day Average SOFR + 2.100%
03/25/2042 | 7.167% | | 6,923,621 | 6,967,047 |
| Lakeview Trust(a) |
| CMO Series 2022-1 Class A |
| 04/25/2052 | 2.389% | | 7,447,741 | 7,132,736 |
| MFA Trust(a),(c) |
| CMO Series 2020-NQM3 Class A3 |
| 01/26/2065 | 1.632% | | 1,119,196 | 1,000,801 |
| NRZ Excess Spread-Collateralized Notes(a) |
| Series 2020-PLS1 Class A |
| 12/25/2025 | 3.844% | | 2,964,702 | 2,755,724 |
| Residential Mortgage-Backed Securities - Non-Agency (continued) |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Oceanview Trust(a),(c) |
| CMO Series 2021-1 Class A |
| 12/29/2051 | 1.219% | | 2,786,588 | 2,720,555 |
| Pretium Mortgage Credit Partners LLC(a),(c) |
| CMO Series 2021-RN2 Class A1 |
| 07/25/2051 | 1.744% | | 8,618,925 | 7,759,782 |
| Towd Point Mortgage Trust(a),(c) |
| CMO Series 2021-SJ1 Class A1 |
| 07/25/2068 | 2.250% | | 9,820,506 | 9,140,799 |
| CMO Series 2022-EBO1 Class A |
| 01/25/2052 | 2.161% | | 3,188,900 | 3,129,552 |
| CMO Series 2022-SJ1 Class A1B |
| 03/25/2062 | 3.612% | | 17,254,219 | 16,308,928 |
| VCAT Asset Securitization LLC(a),(c) |
| CMO Series 2021-NPL6 Class A1 |
| 09/25/2051 | 1.917% | | 13,914,753 | 12,779,448 |
| VCAT LLC(a),(c) |
| CMO Series 2021-NPL1 Class A1 |
| 12/26/2050 | 2.289% | | 956,109 | 919,367 |
| CMO Series 2021-NPL4 Class A1 |
| 08/25/2051 | 1.868% | | 23,015,179 | 21,106,121 |
| CMO Series 2021-NPL5 Class A1 |
| 08/25/2051 | 1.868% | | 11,167,663 | 10,357,466 |
| Vericrest Opportunity Loan Transferee XCIII LLC(a),(c) |
| CMO Series 2021-NPL2 Class A1 |
| 02/27/2051 | 1.893% | | 9,479,146 | 8,867,219 |
| Verus Securitization Trust(a),(c) |
| CMO Series 2020-1 Class A1 |
| 01/25/2060 | 2.417% | | 357,988 | 335,628 |
Total Residential Mortgage-Backed Securities - Non-Agency
(Cost $145,376,201) | 137,124,294 |
|
| U.S. Government & Agency Obligations 1.0% |
| | | | |
| Federal Farm Credit Banks Funding Corp.(b) |
SOFR + 0.050%
08/22/2023 | 5.350% | | 350,000 | 349,975 |
1-month Term SOFR + 0.514%
12/08/2023 | 5.679% | | 2,000,000 | 2,002,542 |
SOFR + 0.060%
12/27/2023 | 5.360% | | 2,575,000 | 2,575,099 |
SOFR + 0.040%
02/09/2024 | 5.340% | | 2,900,000 | 2,899,142 |
| Federal Home Loan Banks(b) |
SOFR + 0.070%
12/14/2023 | 5.370% | | 5,950,000 | 5,949,775 |
Total U.S. Government & Agency Obligations
(Cost $13,777,573) | 13,776,533 |
|
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
| U.S. Treasury Obligations 1.1% |
| Issuer | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| U.S. Treasury |
| 10/31/2023 | 0.375% | | 14,200,000 | 14,024,719 |
Total U.S. Treasury Obligations
(Cost $14,045,408) | 14,024,719 |
| Money Market Funds 1.6% |
| | Shares | Value ($) |
| Columbia Short-Term Cash Fund, 5.408%(g),(h) | 20,604,389 | 20,596,147 |
Total Money Market Funds
(Cost $20,593,739) | 20,596,147 |
Total Investments in Securities
(Cost: $1,323,812,280) | 1,307,649,654 |
| Other Assets & Liabilities, Net | | 7,352,189 |
| Net Assets | 1,315,001,843 |
At July 31, 2023, securities and/or cash totaling $1,512,250 were pledged as collateral.
Investments in derivatives
| Short futures contracts |
| Description | Number of
contracts | Expiration
date | Trading
currency | Notional
amount | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
| U.S. Treasury 2-Year Note | (1,315) | 09/2023 | USD | (266,986,094) | 3,722,733 | — |
Notes to Portfolio of Investments
| (a) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At July 31, 2023, the total value of these securities amounted to $551,585,357, which represents 41.95% of total net assets. |
| (b) | Variable rate security. The interest rate shown was the current rate as of July 31, 2023. |
| (c) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The interest rate shown was the current rate as of July 31, 2023. |
| (d) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of July 31, 2023. |
| (e) | Principal and interest may not be guaranteed by a governmental entity. |
| (f) | Valuation based on significant unobservable inputs. |
| (g) | The rate shown is the seven-day current annualized yield at July 31, 2023. |
| (h) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the year ended July 31, 2023 are as follows: |
| Affiliated issuers | Beginning
of period($) | Purchases($) | Sales($) | Net change in
unrealized
appreciation
(depreciation)($) | End of
period($) | Realized gain
(loss)($) | Dividends($) | End of
period shares |
| Columbia Short-Term Cash Fund, 5.408% |
| | 94,045,164 | 1,376,544,437 | (1,449,986,011) | (7,443) | 20,596,147 | 17,428 | 2,016,055 | 20,604,389 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 15 |
Portfolio of Investments (continued)
July 31, 2023
Abbreviation Legend
| CMO | Collateralized Mortgage Obligation |
| CMT | Constant Maturity Treasury |
| LIBOR | London Interbank Offered Rate |
| SOFR | Secured Overnight Financing Rate |
Currency Legend
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | 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.
The Fund’s Board of Trustees (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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. Representatives of Columbia Management Investment Advisers, LLC report to 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 July 31, 2023:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Asset-Backed Securities — Non-Agency | — | 418,167,738 | — | 418,167,738 |
| Commercial Mortgage-Backed Securities - Non-Agency | — | 56,544,989 | — | 56,544,989 |
| Corporate Bonds & Notes | — | 635,165,429 | — | 635,165,429 |
| Foreign Government Obligations | — | 12,226,106 | — | 12,226,106 |
| Residential Mortgage-Backed Securities - Agency | — | 23,699 | — | 23,699 |
| Residential Mortgage-Backed Securities - Non-Agency | — | 133,959,708 | 3,164,586 | 137,124,294 |
| U.S. Government & Agency Obligations | — | 13,776,533 | — | 13,776,533 |
| U.S. Treasury Obligations | — | 14,024,719 | — | 14,024,719 |
| Money Market Funds | 20,596,147 | — | — | 20,596,147 |
| Total Investments in Securities | 20,596,147 | 1,283,888,921 | 3,164,586 | 1,307,649,654 |
| Investments in Derivatives | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
Fair value measurements (continued)
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Asset | | | | |
| Futures Contracts | 3,722,733 | — | — | 3,722,733 |
| Total | 24,318,880 | 1,283,888,921 | 3,164,586 | 1,311,372,387 |
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 Fund does not hold any significant investments (greater than one percent of net assets) categorized as Level 3.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 17 |
Statement of Assets and Liabilities
July 31, 2023
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,303,218,541) | $1,287,053,507 |
| Affiliated issuers (cost $20,593,739) | 20,596,147 |
| Margin deposits on: | |
| Futures contracts | 1,512,250 |
| Receivable for: | |
| Investments sold | 6,925,274 |
| Capital shares sold | 4,335,121 |
| Dividends | 111,389 |
| Interest | 6,976,646 |
| Foreign tax reclaims | 103,543 |
| Trustees’ fees | 176,854 |
| Prepaid expenses | 24,442 |
| Total assets | 1,327,815,173 |
| Liabilities | |
| Due to custodian | 408 |
| Payable for: | |
| Investments purchased | 3,386,426 |
| Capital shares redeemed | 4,538,199 |
| Distributions to shareholders | 4,464,217 |
| Variation margin for futures contracts | 82,188 |
| Management services fees | 22,763 |
| Distribution and/or service fees | 4,389 |
| Transfer agent fees | 49,239 |
| Trustees’ fees | 229,190 |
| Other expenses | 36,311 |
| Total liabilities | 12,813,330 |
| Net assets applicable to outstanding capital stock | $1,315,001,843 |
| Represented by | |
| Paid in capital | 1,336,834,120 |
| Total distributable earnings (loss) | (21,832,277) |
| Total - representing net assets applicable to outstanding capital stock | $1,315,001,843 |
| Class A | |
| Net assets | $356,980,651 |
| Shares outstanding | 39,341,715 |
| Net asset value per share | $9.07 |
| Advisor Class | |
| Net assets | $86,478,124 |
| Shares outstanding | 9,522,179 |
| Net asset value per share | $9.08 |
| Institutional Class | |
| Net assets | $379,278,674 |
| Shares outstanding | 41,763,905 |
| Net asset value per share | $9.08 |
| Institutional 3 Class | |
| Net assets | $492,264,394 |
| Shares outstanding | 54,182,472 |
| Net asset value per share | $9.09 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 18 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Statement of Operations
Year Ended July 31, 2023
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $2,016,055 |
| Interest | 59,546,103 |
| Interfund lending | 9,520 |
| Foreign taxes withheld | (10,371) |
| Total income | 61,561,307 |
| Expenses: | |
| Management services fees | 4,248,451 |
| Distribution and/or service fees | |
| Class A | 750,640 |
| Transfer agent fees | |
| Class A | 288,994 |
| Advisor Class | 46,676 |
| Institutional Class | 252,922 |
| Institutional 3 Class | 63,412 |
| Trustees’ fees | 57,644 |
| Custodian fees | 20,298 |
| Printing and postage fees | 49,713 |
| Registration fees | 152,757 |
| Accounting services fees | 30,090 |
| Legal fees | 40,475 |
| Compensation of chief compliance officer | 428 |
| Other | 49,183 |
| Total expenses | 6,051,683 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (24,972) |
| Total net expenses | 6,026,711 |
| Net investment income | 55,534,596 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (15,655,360) |
| Investments — affiliated issuers | 17,428 |
| Foreign currency translations | 2 |
| Futures contracts | 11,810,516 |
| Net realized loss | (3,827,414) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 30,716,179 |
| Investments — affiliated issuers | (7,443) |
| Futures contracts | 2,401,140 |
| Net change in unrealized appreciation (depreciation) | 33,109,876 |
| Net realized and unrealized gain | 29,282,462 |
| Net increase in net assets resulting from operations | $84,817,058 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 19 |
Statement of Changes in Net Assets
| | Year Ended
July 31, 2023 | Year Ended
July 31, 2022 |
| Operations | | |
| Net investment income | $55,534,596 | $19,350,402 |
| Net realized gain (loss) | (3,827,414) | 4,070,945 |
| Net change in unrealized appreciation (depreciation) | 33,109,876 | (47,781,055) |
| Net increase (decrease) in net assets resulting from operations | 84,817,058 | (24,359,708) |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (13,378,409) | (3,424,548) |
| Advisor Class | (2,440,261) | (252,722) |
| Institutional Class | (12,749,678) | (2,283,532) |
| Institutional 3 Class | (27,921,971) | (13,885,936) |
| Total distributions to shareholders | (56,490,319) | (19,846,738) |
| Decrease in net assets from capital stock activity | (1,521,631,205) | (1,122,950,875) |
| Total decrease in net assets | (1,493,304,466) | (1,167,157,321) |
| Net assets at beginning of year | 2,808,306,309 | 3,975,463,630 |
| Net assets at end of year | $1,315,001,843 | $2,808,306,309 |
| | Year Ended | Year Ended |
| | July 31, 2023 | July 31, 2022 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Shares sold | 15,457,815 | 138,623,929 | 35,534,103 | 320,107,044 |
| Distributions reinvested | 1,485,766 | 13,363,745 | 381,031 | 3,420,523 |
| Shares redeemed | (53,204,617) | (477,380,995) | (68,576,118) | (616,728,239) |
| Net decrease | (36,261,036) | (325,393,321) | (32,660,984) | (293,200,672) |
| Advisor Class | | | | |
| Shares sold | 13,111,839 | 117,943,975 | 9,179,795 | 82,733,447 |
| Distributions reinvested | 270,253 | 2,438,382 | 28,141 | 252,653 |
| Shares redeemed | (10,003,365) | (90,219,974) | (5,271,360) | (47,488,719) |
| Net increase | 3,378,727 | 30,162,383 | 3,936,576 | 35,497,381 |
| Institutional Class | | | | |
| Shares sold | 35,573,330 | 319,242,062 | 42,987,099 | 386,589,900 |
| Distributions reinvested | 1,406,108 | 12,666,384 | 251,521 | 2,259,993 |
| Shares redeemed | (42,454,538) | (381,807,169) | (40,880,635) | (368,018,292) |
| Net increase (decrease) | (5,475,100) | (49,898,723) | 2,357,985 | 20,831,601 |
| Institutional 3 Class | | | | |
| Shares sold | 8,988,427 | 80,562,950 | 114,442,793 | 1,033,394,227 |
| Distributions reinvested | 744,357 | 6,688,069 | 261,517 | 2,350,277 |
| Shares redeemed | (140,614,701) | (1,263,752,563) | (213,614,865) | (1,921,823,689) |
| Net decrease | (130,881,917) | (1,176,501,544) | (98,910,555) | (886,079,185) |
| Total net decrease | (169,239,326) | (1,521,631,205) | (125,276,978) | (1,122,950,875) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 20 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
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Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 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 ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| | Net asset value,
beginning of
period | Net
investment
income | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
| Class A |
| Year Ended 7/31/2023 | $8.93 | 0.24 | 0.15 | 0.39 | (0.25) | (0.25) |
| Year Ended 7/31/2022 | $9.04 | 0.03 | (0.10) | (0.07) | (0.04) | (0.04) |
| Year Ended 7/31/2021 | $9.05 | 0.05 | 0.00(c) | 0.05 | (0.06) | (0.06) |
| Year Ended 7/31/2020 | $9.03 | 0.16 | 0.03 | 0.19 | (0.17) | (0.17) |
| Year Ended 7/31/2019(d) | $9.01 | 0.09 | 0.02 | 0.11 | (0.09) | (0.09) |
| Advisor Class |
| Year Ended 7/31/2023 | $8.94 | 0.28 | 0.13 | 0.41 | (0.27) | (0.27) |
| Year Ended 7/31/2022 | $9.05 | 0.05 | (0.11) | (0.06) | (0.05) | (0.05) |
| Year Ended 7/31/2021 | $9.06 | 0.06 | 0.00(c) | 0.06 | (0.07) | (0.07) |
| Year Ended 7/31/2020 | $9.04 | 0.16 | 0.05 | 0.21 | (0.19) | (0.19) |
| Year Ended 7/31/2019(e) | $8.99 | 0.14 | 0.05 | 0.19 | (0.14) | (0.14) |
| Institutional Class |
| Year Ended 7/31/2023 | $8.94 | 0.26 | 0.15 | 0.41 | (0.27) | (0.27) |
| Year Ended 7/31/2022 | $9.05 | 0.05 | (0.11) | (0.06) | (0.05) | (0.05) |
| Year Ended 7/31/2021 | $9.06 | 0.06 | 0.00(c) | 0.06 | (0.07) | (0.07) |
| Year Ended 7/31/2020 | $9.04 | 0.17 | 0.04 | 0.21 | (0.19) | (0.19) |
| Year Ended 7/31/2019(f) | $8.99 | 0.15 | 0.04 | 0.19 | (0.14) | (0.14) |
| Institutional 3 Class |
| Year Ended 7/31/2023 | $8.95 | 0.24 | 0.17 | 0.41 | (0.27) | (0.27) |
| Year Ended 7/31/2022 | $9.05 | 0.05 | (0.09) | (0.04) | (0.06) | (0.06) |
| Year Ended 7/31/2021 | $9.06 | 0.07 | 0.00(c) | 0.07 | (0.08) | (0.08) |
| Year Ended 7/31/2020 | $9.04 | 0.18 | 0.03 | 0.21 | (0.19) | (0.19) |
| Year Ended 7/31/2019 | $9.00 | 0.22 | 0.04 | 0.26 | (0.22) | (0.22) |
| 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) | Class A shares commenced operations on February 20, 2019. Per share data and total return reflect activity from that date. |
| (e) | Advisor Class shares commenced operations on December 3, 2018. Per share data and total return reflect activity from that date. |
| (f) | Institutional Class shares commenced operations on December 3, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 22 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
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 7/31/2023 | $9.07 | 4.48% | 0.44% | 0.44% | 2.62% | 76% | $356,981 |
| Year Ended 7/31/2022 | $8.93 | (0.80%) | 0.42% | 0.42% | 0.38% | 76% | $675,383 |
| Year Ended 7/31/2021 | $9.04 | 0.56% | 0.43% | 0.43% | 0.55% | 87% | $978,846 |
| Year Ended 7/31/2020 | $9.05 | 2.17% | 0.43% | 0.43% | 1.79% | 100% | $446,211 |
| Year Ended 7/31/2019(d) | $9.03 | 1.27% | 0.42% | 0.42% | 2.43% | 95% | $118,625 |
| Advisor Class |
| Year Ended 7/31/2023 | $9.08 | 4.63% | 0.29% | 0.29% | 3.14% | 76% | $86,478 |
| Year Ended 7/31/2022 | $8.94 | (0.65%) | 0.27% | 0.27% | 0.61% | 76% | $54,946 |
| Year Ended 7/31/2021 | $9.05 | 0.71% | 0.28% | 0.28% | 0.63% | 87% | $19,969 |
| Year Ended 7/31/2020 | $9.06 | 2.32% | 0.27% | 0.27% | 1.81% | 100% | $2,522 |
| Year Ended 7/31/2019(e) | $9.04 | 2.16% | 0.27% | 0.27% | 2.52% | 95% | $12 |
| Institutional Class |
| Year Ended 7/31/2023 | $9.08 | 4.64% | 0.29% | 0.29% | 2.92% | 76% | $379,279 |
| Year Ended 7/31/2022 | $8.94 | (0.65%) | 0.27% | 0.27% | 0.56% | 76% | $422,413 |
| Year Ended 7/31/2021 | $9.05 | 0.71% | 0.28% | 0.28% | 0.71% | 87% | $406,157 |
| Year Ended 7/31/2020 | $9.06 | 2.32% | 0.28% | 0.28% | 1.94% | 100% | $221,636 |
| Year Ended 7/31/2019(f) | $9.04 | 2.18% | 0.30% | 0.30% | 2.63% | 95% | $61,044 |
| Institutional 3 Class |
| Year Ended 7/31/2023 | $9.09 | 4.69% | 0.24% | 0.24% | 2.70% | 76% | $492,264 |
| Year Ended 7/31/2022 | $8.95 | (0.50%) | 0.23% | 0.23% | 0.57% | 76% | $1,655,564 |
| Year Ended 7/31/2021 | $9.05 | 0.75% | 0.24% | 0.24% | 0.75% | 87% | $2,570,491 |
| Year Ended 7/31/2020 | $9.06 | 2.35% | 0.25% | 0.25% | 2.00% | 100% | $1,568,020 |
| Year Ended 7/31/2019 | $9.04 | 2.91% | 0.25% | 0.25% | 2.40% | 95% | $780,430 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 23 |
Notes to Financial Statements
July 31, 2023
Note 1. Organization
Columbia Ultra Short Term Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Columbia Ultra Short Term Bond Fund must be purchased through financial intermediaries that, by written agreement with Columbia Management Investment Distributors, Inc., are specifically authorized to sell the Fund’s shares.
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 shares are offered to the general public for investment. Advisor Class, Institutional 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 based on prices obtained from pricing services, which are intended to reflect 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, 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.
| 24 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 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.
Foreign currency transactions and translations
The values of all assets and liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains (losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund invests in certain derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract; therefore, failure of the clearinghouse or CCP may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 25 |
Notes to Financial Statements (continued)
July 31, 2023
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.
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 or receive interest income on cash collateral pledged to the broker. 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
| 26 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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.
The following table is a summary of the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at July 31, 2023:
| | 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 | 3,722,733* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin for futures and centrally cleared swaps, if any, 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 July 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 11,810,516 |
| |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Risk exposure category | Futures
contracts
($) |
| Interest rate risk | 2,401,140 |
The following table is a summary of the average outstanding volume by derivative instrument for the year ended July 31, 2023:
| Derivative instrument | Average notional
amounts ($)* |
| Futures contracts — short | 322,570,713 |
| * | Based on the ending quarterly outstanding amounts for the year ended July 31, 2023. |
Asset- and mortgage-backed securities
The Fund may invest in asset-backed and mortgage-backed securities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. All, or a portion, of the obligation may be prepaid at any time because the underlying asset may be prepaid. As a result, decreasing market interest rates could result in an increased level of prepayment. An increased prepayment rate will have the effect of shortening the maturity of the security. Unless otherwise noted, the coupon rates presented are fixed rates.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 27 |
Notes to Financial Statements (continued)
July 31, 2023
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 classifies gains and losses realized on prepayments received on mortgage-backed securities as adjustments to interest income.
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. The Fund may also adjust accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. 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 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.
Foreign taxes
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.
Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
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.
| 28 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Guarantees and indemnifications
Under the Trust’s organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncement
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will, among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month transition period after the effective date of the amendments.
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 0.21% of the Fund’s 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 "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. Prior to January 1, 2023, SS&C GIDS was known as DST Asset Manager Solutions, Inc. The Transfer Agent pays the fees of SS&C GIDS for services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 29 |
Notes to Financial Statements (continued)
July 31, 2023
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.
For the year ended July 31, 2023, 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 | 0.06 |
| Advisor Class | 0.06 |
| Institutional Class | 0.06 |
| Institutional 3 Class | 0.01 |
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.15% of the average daily net assets attributable to Class A shares of the Fund.
Expenses waived/reimbursed by the Investment Manager and its affiliates
The Investment Manager and certain of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole discretion of the Board of Trustees for Class A, Advisor Class and Institutional Class and permanently for as long as the Investment Manager manages the Fund for Institutional 3 Class, 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 1, 2022
through
November 30, 2023 | Prior to
December 1, 2022 |
| Class A | 0.49% | 0.43% |
| Advisor Class | 0.34 | 0.28 |
| Institutional Class | 0.34 | 0.28 |
| Institutional 3 Class | 0.25 | 0.25 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is
| 30 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At July 31, 2023, these differences were primarily due to differing treatment for deferral/reversal of wash sale losses, derivative investments, tax straddles, principal and/or interest from fixed income securities, capital loss carryforwards, trustees’ deferred compensation, distributions and foreign currency transactions. 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) ($) | Paid in
capital ($) |
| 607,111 | (607,110) | (1) |
Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by this reclassification.
The tax character of distributions paid during the years indicated was as follows:
| Year Ended July 31, 2023 | Year Ended July 31, 2022 |
Ordinary
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Long-term
capital gains ($) | Total ($) |
| 56,490,319 | — | 56,490,319 | 19,846,738 | — | 19,846,738 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2023, the components of distributable earnings on a tax basis were as follows:
Undistributed
ordinary income ($) | Undistributed
long-term
capital gains ($) | Capital loss
carryforwards ($) | Net unrealized
(depreciation) ($) |
| 4,921,826 | — | (6,319,172) | (15,742,612) |
At July 31, 2023, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| 1,327,114,999 | 2,519,719 | (18,262,331) | (15,742,612) |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 31 |
Notes to Financial Statements (continued)
July 31, 2023
The following capital loss carryforwards, determined at July 31, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended July 31, 2023, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| — | (6,319,172) | (6,319,172) | — |
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 $1,488,140,705 and $2,932,757,617, respectively, for the year ended July 31, 2023, of which $53,483,653 and $84,300,296, 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. Affiliated money market fund
The Fund invests in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. 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’s activity in the Interfund Program during the year ended July 31, 2023 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Lender | 15,800,000 | 4.18 | 6 |
Interest income earned by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at July 31, 2023.
Note 8. 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 27, 2022 amendment and restatement, the credit facility, which is
| 32 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% 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 27, 2022 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 secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during the year ended July 31, 2023.
Note 9. Significant risks
Credit risk
Credit risk is the risk that the value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency, index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund. Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging risk, leverage risk, liquidity risk and pricing risk.
Interest rate risk
Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if 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.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 33 |
Notes to Financial Statements (continued)
July 31, 2023
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of Russian currency. The extent and duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter-measures or responses thereto (including international sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Mortgage- and other asset-backed securities risk
The value of any mortgage-backed and other asset-backed securities including collateralized debt obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements; or the market’s assessment of the quality of underlying assets. Payment of principal and interest on some mortgage-backed securities (but not the market value of the securities themselves) may be guaranteed by the full faith and credit of a particular U.S. Government agency, authority, enterprise or instrumentality, and some, but not all, are also insured or guaranteed by the U.S. Government. Mortgage-backed securities issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may entail greater risk than obligations guaranteed by the U.S. Government. Mortgage- and other asset-backed securities are subject to liquidity risk and prepayment risk. A decline or flattening of housing values may cause delinquencies in mortgages (especially sub-prime or non-prime mortgages) underlying mortgage-backed securities and thereby adversely affect the ability of the mortgage-backed securities issuer to make principal and/or interest payments to mortgage-backed securities holders, including the Fund. Rising or high interest rates tend to extend the duration of mortgage- and other asset-backed securities, making their prices more volatile and more sensitive to changes in interest rates.
Shareholder concentration risk
At July 31, 2023, one unaffiliated shareholder of record owned 35.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of record owned 46.0% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed 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.
| 34 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Note 10. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to the Fund.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 35 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia Ultra Short Term Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia Ultra Short Term Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of July 31, 2023, the related statement of operations for the year ended July 31, 2023, the statement of changes in net assets for each of the two years in the period ended July 31, 2023, 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 July 31, 2023, 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 July 31, 2023 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 July 31, 2023 by correspondence with the custodian, transfer agent and brokers. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 21, 2023
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
| 36 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2023. Shareholders will be notified in early 2024 of the amounts for use in preparing 2023 income tax returns.
Section
163(j)
Interest
Dividends | |
| 99.94% | |
Section 163(j) Interest Dividends. The percentage of ordinary income distributed during the fiscal year that shareholders may treat as interest income for purposes of IRC Section 163(j), subject to holding period requirements and other limitations.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 173 | 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; former Board Member, Chase Bank International, 1993-1994 |
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 37 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
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-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 173 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Richard M. Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Chair since 2023; Trustee since 2007 | President, Springboard – Partners in Cross Cultural Leadership (consulting company), since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 173 | Trustee, New York Presbyterian Hospital Board, since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee), since 2019; Director, Apollo Commercial Real Estate Finance, Inc. (Chair, Nominating and Governance Committee) (financial services), since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 173 | Director, EQT Corporation (natural gas producer), since 2019; former Director, Whiting Petroleum Corporation (independent oil and gas company), 2020-2022 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | CEO and President, RhodeWay Financial (non-profit financial planning firm), since December 2022; Member, FINRA National Adjudicatory Council, since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 171 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios (former mutual fund complex), January 2015-December 2017 |
| 38 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm), since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform), since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 171 | Treasurer, Edinburgh University US Trust Board, since January 2023; Member, HBS Community Action Partners Board, since September 2022; former Director, University of Edinburgh Business School (Member of US Board), 2004-2019; former Director, Boston Public Library Foundation, 2008-2017 |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Professor of Economics and Management, Bentley University, since 2002; Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 173 | Former Trustee, MA Taxpayers Foundation, 1997-2022; former Director, The MA Business Roundtable, 2003-2019; former Chairperson, Innovation Index Advisory Committee, MA Technology Collaborative, 1997-2020 |
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 | 173 | Trustee, Catholic Schools Foundation, since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Trustee since 1996 | 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 | 173 | Director, SpartanNash Company since November 2013 (Chair of the Board, since May 2021) (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing), since August 2006; 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 | 171 | None |
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 39 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; former Chief Executive Officer of Freddie Mac and Chief Financial Officer of U.S. Bank | 171 | Director, CSX Corporation (transportation suppliers); 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; former Senior Adviser to The Carlyle Group (financial services), March 2008-September 2008; former Governance Consultant to Bridgewater Associates, January 2013-December 2015 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2004 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company), since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 173 | Director, Valmont Industries, Inc. (irrigation systems manufacturer), since 2012; Trustee, Carleton College (on the Investment Committee), since 1987; Trustee, Carnegie Endowment for International Peace (on the Investment Committee), since 2009 |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2022; Advisor, Paradigm Asset Management, November 2016-January 2022; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 171 | Independent Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2010-2021; Independent Director, (Executive Committee and Chair, Audit Committee), Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2016; Independent Director, (Investment Committee), Sarona Asset Management, since 2019 |
| 40 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 173 | Former Director, NAPE (National Alliance for Partnerships in Equity) Education Foundation, October 2016-October 2020; Advisory Board, Jennersville YMCA, since 2022 |
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 and
other relevant Board experience |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC, since April 2015; President and Principal Executive Officer of the Columbia Funds, since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 173 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since, January 2022; Director, Columbia Threadneedle Canada, Inc., since December 2022 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Funds Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Carrig, Flynn, Paglia, and Yeager serve as directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| ** | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 41 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and North America Head of Operations & Investor Services, Columbia Management Investment Advisers, LLC, since June 2023 (previously Senior Vice President and Head of Global Operations, March 2022 – June 2023, Vice President, Head of North America Operations, and Co-Head of Global Operations, June 2019 - February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds, since 2002. Director, Ameriprise Trust Company, since June 2023. |
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. |
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. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001 - January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc., since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC, since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc., since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl, since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc., since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); formerly, 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; formerly, Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds, since 2005. |
| 42 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC, since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5903 Ameriprise Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | Vice President, Global Investment Operations Services, Columbia Management Investment Advisers, LLC, since 2010; Director (since January 2007) and President (since October 2014), Columbia Management Investment Services Corp.; Director (since December 2017) and President (since January 2017), Ameriprise Trust Company. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2022 through December 31, 2022, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 43 |
Approval of Management Agreement
(Unaudited)
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 Ultra Short Term 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 (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) 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 (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Management Agreement.
The Board, at its June 22, 2023 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 one or more 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; |
| • | 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). |
| 44 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
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. 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.
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 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. 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 were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
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.
Investment performance
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 Fund’s performance relative to peers and benchmarks and (iii) 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.
Columbia Ultra Short Term Bond Fund | Annual Report 2023
| 45 |
Approval of Management Agreement (continued)
(Unaudited)
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 the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. 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.
Economies of scale
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. The Board took into account, however, that the Management Agreement already provides for a relatively low flat fee regardless of the Fund’s asset level, and requires Columbia Threadneedle to provide investment advice, as well as administrative, accounting and other services to the Fund.
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 22, 2023, 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.
| 46 | Columbia Ultra Short Term Bond Fund | Annual Report 2023 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Ultra Short Term 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.
© 2023 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Annual Report
July 31, 2023
Columbia U.S. Social Bond Fund
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia U.S. Social 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, is available on columbiathreadneedleus.com/investor/ or 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 U.S. Social Bond Fund | Annual Report 2023
Fund at a Glance
(Unaudited)
Investment objective
The Fund seeks total return, consisting of current income and capital appreciation, through investments that seek to support and fund socially beneficial activities and developments, primarily in the U.S.
Portfolio management
Catherine Stienstra
Lead Portfolio Manager
Managed Fund since February 2022
Tom Murphy, CFA
Portfolio Manager
Managed Fund since 2015
| Average annual total returns (%) (for the period ended July 31, 2023) |
| | | Inception | 1 Year | 5 Years | Life |
| Class A | Excluding sales charges | 03/26/15 | -0.92 | 1.07 | 1.46 |
| | Including sales charges | | -3.87 | 0.46 | 1.09 |
| Advisor Class | 03/26/15 | -0.68 | 1.30 | 1.70 |
| Class C | Excluding sales charges | 03/26/15 | -1.67 | 0.31 | 0.71 |
| | Including sales charges | | -2.63 | 0.31 | 0.71 |
| Institutional Class | 03/26/15 | -0.68 | 1.32 | 1.71 |
| Institutional 2 Class | 03/26/15 | -0.75 | 1.32 | 1.72 |
| Institutional 3 Class* | 03/01/17 | -0.59 | 1.37 | 1.70 |
| Bloomberg Municipal Bond Index | | 0.93 | 1.87 | 2.06 |
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 applicable contingent deferred sales charge of 1.00% in the first year. 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. Since the Fund launched more than one share class at its inception, Class A shares were used. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information. |
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.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 3 |
Fund at a Glance (continued)
(Unaudited)
Performance of a hypothetical $10,000 investment (March 26, 2015 — July 31, 2023)
The chart above shows the change in value of a hypothetical $10,000 investment in Class A shares of Columbia U.S. Social 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.
| Portfolio breakdown (%) (at July 31, 2023) |
| Money Market Funds | 99.7 |
| Municipal Bonds | 0.3 |
| Total | 100.0 |
Percentages indicated are based upon total investments excluding investments in derivatives, if any. The Fund’s portfolio composition is subject to change.
| 4 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Manager Discussion of Fund Performance
(Unaudited)
Columbia U.S. Social Bond Fund was liquidated on August 4, 2023, just after the close of the annual period.
For the 12-month period that ended July 31, 2023, Class A shares of Columbia U.S. Social Bond Fund returned -0.92% excluding sales charges. Institutional Class shares of the Fund returned -0.68%. The Fund’s benchmark, the Bloomberg Municipal Bond Index, returned 0.93%.
Market overview
The municipal bond market experienced significant volatility during the annual period, impacted primarily by the efforts of the U.S. Federal Reserve (Fed) to return inflation to its target levels and the resultant dramatic increase in interest rates. As the period began in August 2022, the benchmark saw broad-based negative returns, followed by its worst September monthly return on record. The municipal bond market then delivered positive performance in the fourth calendar quarter. The Fed’s aggressive hiking campaign showed initial signs of cooling, boosting investor sentiment and driving a long-awaited relief rally that continued into January 2023. Unfortunately, sentiment quickly unwound in February, as the market reconsidered the persistence of inflation and a still too strong labor market. A more hawkish Fed led to a sell-off in U.S. Treasury and municipal bond yields alike. (Hawkish tends to suggest higher interest rates; opposite of dovish.)
Then came March 2023 when, partially driven by higher interest rates, an unforeseen banking crisis unfolded, with three U.S. regional banks and Credit Suisse in need of rescue in quick succession. The weakness in the banking sector led to municipal bond yields moving lower and, in turn, solid positive first calendar quarter returns for the benchmark. Both U.S. Treasury and municipal bond yields then rose during the second quarter of 2023, as the regional banking crisis ebbed and the focus on the Fed’s tightening monetary policy reignited. For the first time since it started hiking in March 2022, the Fed did not raise rates at its June 2023 meeting. However, in late July, the Fed approved another rate hike, its 11th of the current cycle, bringing its targeted federal funds rate to its highest level in more than 22 years. Further, the Fed indicated additional interest rate increases may be implemented before year end. The benchmark posted a modestly negative return for the second quarter of 2023 but a moderately positive return for July, as performance was broadly positive across maturities, credit ratings and states for the month amid a consensus shift in favor of a soft landing with a recession no longer imminent. Notably, the municipal bond market outperformed both U.S. Treasuries and the broad U.S. fixed-income market for the last five months of the period and did so even more significantly for the annual period overall.
The Fund experienced an increased level of portfolio turnover during the period as a result of the planned liquidation of the Fund.
The Fund’s notable detractors during the period
| • | The Fund’s duration positioning detracted from the Fund’s relative results during the period. |
| ○ | The Fund had a longer duration profile than that of the benchmark during the first four months of the period, which hurt as municipal yields rose significantly during that time. |
| ○ | We shortened the Fund’s relative duration stance after the announcement of the Fund’s liquidation was made in mid-March 2023, but in so doing, the Fund did not fully participate in the municipal bond market’s subsequent rally. |
| • | Given their comparatively greater propensity to have a high score when analyzing positive social and environmental impact, the Fund had overweighted allocations to the charter schools, local general obligation bonds and housing sectors. However, these exposures hurt, as each underperformed the benchmark during the period. The Fund’s underweighted allocations to the stronger tolls and education sectors also dampened results. |
| • | Security selection detracted most in the housing and assisted living sectors. |
| • | From a credit quality perspective, the Fund’s exposure to below-investment-grade bonds, which are not components of the benchmark, detracted, as high yield underperformed higher quality bonds overall during the period. Security selection among AA-rated bonds also hurt. |
| • | Having a larger position than usual in cash given the Fund’s gradual unwinding ahead of its liquidation detracted from relative results, as the benchmark posted a positive absolute return for the period from mid-March through July 2023 as a whole. |
Columbia U.S. Social Bond Fund | Annual Report 2023
| 5 |
Manager Discussion of Fund Performance (continued)
(Unaudited)
The Fund’s notable contributors during the period
| • | Having an overweight to the hospital sector, with a focus on providers of health care services that serve disadvantaged populations who rely on government programs such as Medicaid for their coverage, contributed positively to the Fund’s relative results. |
| • | Issue selection within the charter schools, toll roads, transportation, and water and sewer sectors boosted relative results. |
| • | From a credit quality perspective, the Fund’s overweight to A-rated bonds helped most, as lower quality investment-grade bonds outpaced their higher quality counterparts during the period. Security selection among BBB-rated bonds also added value. |
| • | Yield curve positioning overall contributed positively, especially the Fund’s overweight to municipal bonds with maturities of 10 to 20 years, as bonds with longer maturities outperformed those with shorter maturities during the period. |
Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. Social impact investing may increase risk due to the limitations and constraints involved in investment selection and, as a result, the Fund may under perform other funds that do not consider the social impact. Fixed-income securities present issuer default risk. 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. 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. 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 Fund may invest significantly in issuers within a particular sector, which may be negatively affected by market, economic or other conditions, making the Fund more vulnerable to unfavorable developments in the sector. Market or other (e.g., interest rate) environments may adversely affect the liquidity of fund investments, negatively impacting their price. Generally, the less liquid the market at the time the Fund sells a holding, the greater the risk of loss or decline of value to the Fund. As a non-diversified fund, fewer investments could have a greater effect on performance. 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 U.S. Social Bond Fund | Annual Report 2023 |
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| February 1, 2023 — July 31, 2023 |
| | Account value at the
beginning of the
period ($) | 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 | 989.60 | 1,021.32 | 3.45 | 3.51 | 0.70 |
| Advisor Class | 1,000.00 | 1,000.00 | 989.80 | 1,022.56 | 2.22 | 2.26 | 0.45 |
| Class C | 1,000.00 | 1,000.00 | 985.90 | 1,017.60 | 7.14 | 7.25 | 1.45 |
| Institutional Class | 1,000.00 | 1,000.00 | 990.80 | 1,022.56 | 2.22 | 2.26 | 0.45 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 989.90 | 1,022.71 | 2.07 | 2.11 | 0.42 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 991.30 | 1,022.96 | 1.83 | 1.86 | 0.37 |
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 U.S. Social Bond Fund | Annual Report 2023
| 7 |
Portfolio of Investments
July 31, 2023
(Percentages represent value of investments compared to net assets)
Investments in securities
| Municipal Bonds 0.4% |
| Issue Description | Coupon
Rate | | Principal
Amount ($) | Value ($) |
| Minnesota 0.4% |
| St. Cloud Housing & Redevelopment Authority(a),(b),(c) |
| Revenue Bonds |
| Sanctuary St. Cloud Project |
| Series 2016 |
| 08/01/2036 | 4.350% | | 240,000 | 132,000 |
Total Municipal Bonds
(Cost $132,049) | 132,000 |
| Money Market Funds 100.0% |
| | Shares | Value ($) |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 3.537%(d) | 37,575,878 | 37,583,196 |
Total Money Market Funds
(Cost $37,583,196) | 37,583,196 |
Total Investments in Securities
(Cost $37,715,245) | 37,715,196 |
| Other Assets & Liabilities, Net | | (146,790) |
| Net Assets | $37,568,406 |
Notes to Portfolio of Investments
| (a) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At July 31, 2023, the total value of these securities amounted to $132,000, which represents 0.35% of total net assets. |
| (b) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of July 31, 2023. |
| (c) | Valuation based on significant unobservable inputs. |
| (d) | The rate shown is the seven-day current annualized yield at July 31, 2023. |
Fair value measurements
The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
The accompanying Notes to Financial Statements are an integral part of this statement.
| 8 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Portfolio of Investments (continued)
July 31, 2023
Fair value measurements (continued)
Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.
The Fund’s Board of Trustees (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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. Representatives of Columbia Management Investment Advisers, LLC report to 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 July 31, 2023:
| | Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) |
| Investments in Securities | | | | |
| Municipal Bonds | — | — | 132,000 | 132,000 |
| Money Market Funds | 37,583,196 | — | — | 37,583,196 |
| Total Investments in Securities | 37,583,196 | — | 132,000 | 37,715,196 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund does not hold any significant investments (greater than one percent of net assets) categorized as Level 3.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 9 |
Statement of Assets and Liabilities
July 31, 2023
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $37,715,245) | $37,715,196 |
| Receivable for: | |
| Capital shares sold | 100,065 |
| Dividends | 68,469 |
| Interest | 10,440 |
| Trustees’ fees | 39,018 |
| Expense reimbursement due from Investment Manager | 1,920 |
| Prepaid expenses | 12 |
| Total assets | 37,935,120 |
| Liabilities | |
| Payable for: | |
| Capital shares redeemed | 178,319 |
| Distributions to shareholders | 112,212 |
| Management services fees | 1,537 |
| Distribution and/or service fees | 307 |
| Transfer agent fees | 3,260 |
| Trustees’ fees | 52,655 |
| Other expenses | 18,424 |
| Total liabilities | 366,714 |
| Net assets applicable to outstanding capital stock | $37,568,406 |
| Represented by | |
| Paid in capital | 43,397,751 |
| Total distributable earnings (loss) | (5,829,345) |
| Total - representing net assets applicable to outstanding capital stock | $37,568,406 |
| Class A | |
| Net assets | $12,280,359 |
| Shares outstanding | 1,299,512 |
| Net asset value per share | $9.45 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $9.74 |
| Advisor Class | |
| Net assets | $471,566 |
| Shares outstanding | 49,938 |
| Net asset value per share | $9.44 |
| Class C | |
| Net assets | $675,546 |
| Shares outstanding | 71,501 |
| Net asset value per share | $9.45 |
| Institutional Class | |
| Net assets | $22,191,957 |
| Shares outstanding | 2,348,224 |
| Net asset value per share | $9.45 |
| Institutional 2 Class | |
| Net assets | $1,582,428 |
| Shares outstanding | 167,370 |
| Net asset value per share | $9.45 |
| Institutional 3 Class | |
| Net assets | $366,550 |
| Shares outstanding | 38,660 |
| Net asset value per share | $9.48 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 10 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Statement of Operations
Year Ended July 31, 2023
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $139,482 |
| Interest | 1,800,813 |
| Total income | 1,940,295 |
| Expenses: | |
| Management services fees | 291,764 |
| Distribution and/or service fees | |
| Class A | 33,283 |
| Class C | 8,646 |
| Transfer agent fees | |
| Class A | 12,402 |
| Advisor Class | 3,620 |
| Class C | 808 |
| Institutional Class | 32,058 |
| Institutional 2 Class | 1,753 |
| Institutional 3 Class | 463 |
| Trustees’ fees | 16,730 |
| Custodian fees | 1,895 |
| Printing and postage fees | 19,481 |
| Registration fees | 97,019 |
| Accounting services fees | 30,090 |
| Legal fees | 13,346 |
| Line of credit interest | 115 |
| Interest on interfund lending | 1,008 |
| Compensation of chief compliance officer | 13 |
| Other | 11,028 |
| Total expenses | 575,522 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (264,375) |
| Total net expenses | 311,147 |
| Net investment income | 1,629,148 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (5,481,020) |
| Net realized loss | (5,481,020) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 2,995,818 |
| Net change in unrealized appreciation (depreciation) | 2,995,818 |
| Net realized and unrealized loss | (2,485,202) |
| Net decrease in net assets resulting from operations | $(856,054) |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 11 |
Statement of Changes in Net Assets
| | Year Ended
July 31, 2023 | Year Ended
July 31, 2022 |
| Operations | | |
| Net investment income | $1,629,148 | $1,496,987 |
| Net realized gain (loss) | (5,481,020) | 67,119 |
| Net change in unrealized appreciation (depreciation) | 2,995,818 | (7,687,105) |
| Net decrease in net assets resulting from operations | (856,054) | (6,122,999) |
| Distributions to shareholders | | |
| Net investment income and net realized gains | | |
| Class A | (329,701) | (270,527) |
| Advisor Class | (103,239) | (63,564) |
| Class C | (14,995) | (14,809) |
| Institutional Class | (929,893) | (904,206) |
| Institutional 2 Class | (77,936) | (82,050) |
| Institutional 3 Class | (156,766) | (162,197) |
| Total distributions to shareholders | (1,612,530) | (1,497,353) |
| Increase (decrease) in net assets from capital stock activity | (34,979,113) | 11,353,597 |
| Total increase (decrease) in net assets | (37,447,697) | 3,733,245 |
| Net assets at beginning of year | 75,016,103 | 71,282,858 |
| Net assets at end of year | $37,568,406 | $75,016,103 |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 12 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Statement of Changes in Net Assets (continued)
| | Year Ended | Year Ended |
| | July 31, 2023 | July 31, 2022 |
| | Shares | Dollars ($) | Shares | Dollars ($) |
| Capital stock activity |
| Class A | | | | |
| Shares sold | 550,404 | 5,258,720 | 242,765 | 2,483,677 |
| Distributions reinvested | 23,837 | 224,610 | 18,530 | 189,906 |
| Shares redeemed | (667,448) | (6,304,504) | (234,701) | (2,386,161) |
| Net increase (decrease) | (93,207) | (821,174) | 26,594 | 287,422 |
| Advisor Class | | | | |
| Shares sold | 79,459 | 766,689 | 462,295 | 4,536,212 |
| Distributions reinvested | 10,975 | 102,957 | 6,239 | 63,333 |
| Shares redeemed | (630,201) | (5,980,788) | (113,955) | (1,154,640) |
| Net increase (decrease) | (539,767) | (5,111,142) | 354,579 | 3,444,905 |
| Class C | | | | |
| Shares sold | 3,155 | 30,034 | 22,549 | 228,483 |
| Distributions reinvested | 1,275 | 12,006 | 986 | 10,117 |
| Shares redeemed | (36,603) | (347,898) | (53,926) | (536,467) |
| Net decrease | (32,173) | (305,858) | (30,391) | (297,867) |
| Institutional Class | | | | |
| Shares sold | 1,949,231 | 18,398,384 | 2,035,390 | 20,719,858 |
| Distributions reinvested | 69,497 | 654,625 | 65,810 | 672,843 |
| Shares redeemed | (4,015,412) | (37,938,608) | (1,608,917) | (16,173,421) |
| Net increase (decrease) | (1,996,684) | (18,885,599) | 492,283 | 5,219,280 |
| Institutional 2 Class | | | | |
| Shares sold | 82,303 | 770,260 | 218,005 | 2,191,834 |
| Distributions reinvested | 8,265 | 77,670 | 8,018 | 81,827 |
| Shares redeemed | (371,562) | (3,522,756) | (95,988) | (959,281) |
| Net increase (decrease) | (280,994) | (2,674,826) | 130,035 | 1,314,380 |
| Institutional 3 Class | | | | |
| Shares sold | 61,388 | 588,013 | 258,588 | 2,599,714 |
| Distributions reinvested | 13,119 | 123,853 | 14,634 | 150,406 |
| Shares redeemed | (826,168) | (7,892,380) | (135,497) | (1,364,643) |
| Net increase (decrease) | (751,661) | (7,180,514) | 137,725 | 1,385,477 |
| Total net increase (decrease) | (3,694,486) | (34,979,113) | 1,110,825 | 11,353,597 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 13 |
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 ratios of expenses and net investment income are 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 7/31/2023 | $9.78 | 0.24 | (0.33) | (0.09) | (0.24) | — | (0.24) |
| Year Ended 7/31/2022 | $10.86 | 0.19 | (1.08) | (0.89) | (0.19) | — | (0.19) |
| Year Ended 7/31/2021 | $10.75 | 0.21 | 0.11 | 0.32 | (0.21) | — | (0.21) |
| Year Ended 7/31/2020 | $10.51 | 0.25 | 0.25 | 0.50 | (0.25) | (0.01) | (0.26) |
| Year Ended 7/31/2019 | $10.05 | 0.27 | 0.45 | 0.72 | (0.26) | — | (0.26) |
| Advisor Class |
| Year Ended 7/31/2023 | $9.77 | 0.26 | (0.33) | (0.07) | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $10.86 | 0.22 | (1.09) | (0.87) | (0.22) | — | (0.22) |
| Year Ended 7/31/2021 | $10.75 | 0.24 | 0.11 | 0.35 | (0.24) | — | (0.24) |
| Year Ended 7/31/2020 | $10.51 | 0.28 | 0.25 | 0.53 | (0.28) | (0.01) | (0.29) |
| Year Ended 7/31/2019 | $10.05 | 0.29 | 0.46 | 0.75 | (0.29) | — | (0.29) |
| Class C |
| Year Ended 7/31/2023 | $9.78 | 0.17 | (0.33) | (0.16) | (0.17) | — | (0.17) |
| Year Ended 7/31/2022 | $10.86 | 0.12 | (1.08) | (0.96) | (0.12) | — | (0.12) |
| Year Ended 7/31/2021 | $10.74 | 0.13 | 0.12 | 0.25 | (0.13) | — | (0.13) |
| Year Ended 7/31/2020 | $10.51 | 0.17 | 0.24 | 0.41 | (0.17) | (0.01) | (0.18) |
| Year Ended 7/31/2019 | $10.05 | 0.19 | 0.46 | 0.65 | (0.19) | — | (0.19) |
| Institutional Class |
| Year Ended 7/31/2023 | $9.78 | 0.26 | (0.33) | (0.07) | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $10.86 | 0.22 | (1.08) | (0.86) | (0.22) | — | (0.22) |
| Year Ended 7/31/2021 | $10.75 | 0.24 | 0.11 | 0.35 | (0.24) | — | (0.24) |
| Year Ended 7/31/2020 | $10.51 | 0.28 | 0.25 | 0.53 | (0.28) | (0.01) | (0.29) |
| Year Ended 7/31/2019 | $10.05 | 0.29 | 0.46 | 0.75 | (0.29) | — | (0.29) |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $9.79 | 0.26 | (0.34) | (0.08) | (0.26) | — | (0.26) |
| Year Ended 7/31/2022 | $10.87 | 0.22 | (1.08) | (0.86) | (0.22) | — | (0.22) |
| Year Ended 7/31/2021 | $10.76 | 0.24 | 0.11 | 0.35 | (0.24) | — | (0.24) |
| Year Ended 7/31/2020 | $10.52 | 0.28 | 0.25 | 0.53 | (0.28) | (0.01) | (0.29) |
| Year Ended 7/31/2019 | $10.06 | 0.29 | 0.46 | 0.75 | (0.29) | — | (0.29) |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 14 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
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 7/31/2023 | $9.45 | (0.92%) | 1.15%(c),(d) | 0.70%(c),(d) | 2.50% | 43% | $12,280 |
| Year Ended 7/31/2022 | $9.78 | (8.22%) | 1.05% | 0.70% | 1.90% | 7% | $13,616 |
| Year Ended 7/31/2021 | $10.86 | 3.03% | 1.08% | 0.70% | 1.98% | 13% | $14,841 |
| Year Ended 7/31/2020 | $10.75 | 4.87% | 1.12% | 0.70% | 2.39% | 14% | $14,709 |
| Year Ended 7/31/2019 | $10.51 | 7.33% | 1.14% | 0.70% | 2.63% | 11% | $11,797 |
| Advisor Class |
| Year Ended 7/31/2023 | $9.44 | (0.68%) | 0.84%(c),(d) | 0.45%(c),(d) | 2.71% | 43% | $472 |
| Year Ended 7/31/2022 | $9.77 | (8.08%) | 0.80% | 0.45% | 2.19% | 7% | $5,764 |
| Year Ended 7/31/2021 | $10.86 | 3.29% | 0.83% | 0.45% | 2.23% | 13% | $2,554 |
| Year Ended 7/31/2020 | $10.75 | 5.13% | 0.87% | 0.45% | 2.64% | 14% | $2,010 |
| Year Ended 7/31/2019 | $10.51 | 7.60% | 0.89% | 0.45% | 2.86% | 11% | $629 |
| Class C |
| Year Ended 7/31/2023 | $9.45 | (1.67%) | 1.89%(c),(d) | 1.45%(c),(d) | 1.76% | 43% | $676 |
| Year Ended 7/31/2022 | $9.78 | (8.91%) | 1.80% | 1.45% | 1.14% | 7% | $1,013 |
| Year Ended 7/31/2021 | $10.86 | 2.36% | 1.83% | 1.45% | 1.23% | 13% | $1,456 |
| Year Ended 7/31/2020 | $10.74 | 3.99% | 1.87% | 1.45% | 1.64% | 14% | $1,763 |
| Year Ended 7/31/2019 | $10.51 | 6.53% | 1.89% | 1.45% | 1.88% | 11% | $1,803 |
| Institutional Class |
| Year Ended 7/31/2023 | $9.45 | (0.68%) | 0.89%(c),(d) | 0.45%(c),(d) | 2.74% | 43% | $22,192 |
| Year Ended 7/31/2022 | $9.78 | (7.99%) | 0.80% | 0.45% | 2.15% | 7% | $42,482 |
| Year Ended 7/31/2021 | $10.86 | 3.29% | 0.83% | 0.45% | 2.23% | 13% | $41,856 |
| Year Ended 7/31/2020 | $10.75 | 5.13% | 0.86% | 0.45% | 2.64% | 14% | $36,426 |
| Year Ended 7/31/2019 | $10.51 | 7.60% | 0.90% | 0.45% | 2.88% | 11% | $31,708 |
| Institutional 2 Class |
| Year Ended 7/31/2023 | $9.45 | (0.75%) | 0.85%(c),(d) | 0.42%(c),(d) | 2.74% | 43% | $1,582 |
| Year Ended 7/31/2022 | $9.79 | (7.95%) | 0.77% | 0.42% | 2.19% | 7% | $4,387 |
| Year Ended 7/31/2021 | $10.87 | 3.31% | 0.80% | 0.43% | 2.25% | 13% | $3,461 |
| Year Ended 7/31/2020 | $10.76 | 5.14% | 0.84% | 0.44% | 2.66% | 14% | $2,920 |
| Year Ended 7/31/2019 | $10.52 | 7.60% | 0.87% | 0.44% | 2.89% | 11% | $3,018 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 15 |
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 7/31/2023 | $9.81 | 0.27 | (0.33) | (0.06) | (0.27) | — | (0.27) |
| Year Ended 7/31/2022 | $10.90 | 0.23 | (1.09) | (0.86) | (0.23) | — | (0.23) |
| Year Ended 7/31/2021 | $10.78 | 0.25 | 0.12 | 0.37 | (0.25) | — | (0.25) |
| Year Ended 7/31/2020 | $10.55 | 0.28 | 0.25 | 0.53 | (0.29) | (0.01) | (0.30) |
| Year Ended 7/31/2019 | $10.09 | 0.30 | 0.45 | 0.75 | (0.29) | — | (0.29) |
| Notes to Financial Highlights |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Ratios include interfund lending expense which is less than 0.01%. |
| (d) | Ratios include line of credit interest expense which is less than 0.01%. |
The accompanying Notes to Financial Statements are an integral part of this statement.
| 16 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
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 7/31/2023 | $9.48 | (0.59%) | 0.78%(c),(d) | 0.37%(c),(d) | 2.83% | 43% | $367 |
| Year Ended 7/31/2022 | $9.81 | (7.97%) | 0.72% | 0.37% | 2.23% | 7% | $7,754 |
| Year Ended 7/31/2021 | $10.90 | 3.46% | 0.75% | 0.38% | 2.30% | 13% | $7,115 |
| Year Ended 7/31/2020 | $10.78 | 5.08% | 0.79% | 0.40% | 2.69% | 14% | $5,202 |
| Year Ended 7/31/2019 | $10.55 | 7.61% | 0.84% | 0.42% | 2.91% | 11% | $3,515 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 17 |
Notes to Financial Statements
July 31, 2023
Note 1. Organization
Columbia U.S. Social 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. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
The Board of Trustees of the Fund approved a Plan of Liquidation and Termination pursuant to which the Fund was liquidated and terminated. Effective at the open of business on April 14, 2023, the Fund was closed to new investors, and any applicable contingent deferred sales charges were waived on redemptions and exchanges out of the Fund. The Fund was liquidated on August 4, 2023, at which time the Fund’s shareholders received a liquidating distribution in an amount equal to the net asset value of their Fund shares.
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 based on prices obtained from pricing services, which are intended to reflect 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 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.
| 18 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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.
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. The Fund may also adjust accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. 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 U.S. Social Bond Fund | Annual Report 2023
| 19 |
Notes to Financial Statements (continued)
July 31, 2023
Recent accounting pronouncement
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will, among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month transition period after the effective date of the amendments.
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 July 31, 2023 was 0.48% of the Fund’s average daily net assets.
Subadvisory agreement
The Fund’s Board of Trustees has approved a Subadvisory Agreement between the Investment Manager and Threadneedle International Limited (Threadneedle), an affiliate of the Investment Manager and an indirect wholly-owned subsidiary of Ameriprise Financial. As of July 31, 2023, Threadneedle is not providing services to the Fund pursuant to the Subadvisory Agreement.
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 "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Trustees has appointed a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. Prior to January 1, 2023, SS&C GIDS was known as DST Asset Manager Solutions, Inc. The Transfer Agent pays the fees of SS&C GIDS for services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
| 20 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
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 July 31, 2023, the Fund’s effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| | Effective rate (%) |
| Class A | 0.09 |
| Advisor Class | 0.09 |
| Class C | 0.09 |
| Institutional Class | 0.09 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the year ended July 31, 2023, no minimum account balance fees were charged by the Fund.
Distribution and service fees
The Fund has entered into an agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges (unaudited)
Sales charges, including front-end charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the year ended July 31, 2023, if any, are listed below:
| | Front End (%) | CDSC (%) | Amount ($) |
| Class A | 3.00 | 0.75(a) | 2,565 |
| Class C | — | 1.00(b) | 56 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share classes are not subject to sales charges.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 21 |
Notes to Financial Statements (continued)
July 31, 2023
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
November 30, 2023 |
| Class A | 0.70% |
| Advisor Class | 0.45 |
| Class C | 1.45 |
| Institutional Class | 0.45 |
| Institutional 2 Class | 0.42 |
| Institutional 3 Class | 0.37 |
Under the agreement governing these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes (including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At July 31, 2023, these differences were primarily due to differing treatment for principal and/or interest from fixed income securities, capital loss carryforwards, trustees’ deferred compensation, non-deductible expenses, distributions, investments in partnerships and/or grantor trusts and defaulted securities/troubled debt. 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) ($) | Paid in
capital ($) |
| 18,228 | (18,228) | — |
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.
| 22 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
The tax character of distributions paid during the years indicated was as follows:
| Year Ended July 31, 2023 | Year Ended July 31, 2022 |
Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) | Ordinary
income ($) | Tax-exempt
income ($) | Long-term
capital gains ($) | Total ($) |
| 176,798 | 1,435,732 | — | 1,612,530 | 221,078 | 1,276,275 | — | 1,497,353 |
Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.
At July 31, 2023, 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 ($) |
| — | 238,363 | — | (5,901,472) | — |
At July 31, 2023, the cost of all investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:
Federal
tax cost ($) | Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| 37,715,196 | — | — | — |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at July 31, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code. In addition, for the year ended July 31, 2023, capital loss carryforwards utilized, if any, were as follows:
No expiration
short-term ($) | No expiration
long-term ($) | Total ($) | Utilized ($) |
| (323,748) | (5,577,724) | (5,901,472) | — |
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 $22,816,192 and $87,347,068, respectively, for the year ended July 31, 2023. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and, except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject to certain restrictions.
Interfund loans are subject to the risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 23 |
Notes to Financial Statements (continued)
July 31, 2023
The Fund’s activity in the Interfund Program during the year ended July 31, 2023 was as follows:
| Borrower or lender | Average loan
balance ($) | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| Borrower | 955,556 | 3.99 | 9 |
Interest expense incurred by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at July 31, 2023.
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 27, 2022 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% 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 27, 2022 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 $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
For the year ended July 31, 2023, the Fund’s borrowing activity was as follows:
Average loan
balance ($) | Weighted average
interest rate (%) | Days
outstanding |
| 1,000,000 | 4.15 | 1 |
Interest expense incurred by the Fund is recorded as a line of credit interest expense in the Statement of Operations. The Fund had no outstanding borrowings at July 31, 2023.
Note 8. Significant risks
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
| 24 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Notes to Financial Statements (continued)
July 31, 2023
Money market fund investment risk
An investment in a money market fund is not a bank deposit and is not insured or guaranteed by any bank, the FDIC or any other government agency. Certain money market funds float their net asset value while others seek to preserve the value of investments at a stable net asset value (typically, $1.00 per share). An investment in a money market fund, even an investment in a fund seeking to maintain a stable net asset value per share, is not guaranteed and it is possible for the Fund to lose money by investing in these and other types of money market funds. If the liquidity of a money market fund’s portfolio deteriorates below certain levels, the money market fund may suspend redemptions (i.e., impose a redemption gate) and thereby prevent the Fund from selling its investment in the money market fund or impose a fee of up to 2% on amounts the Fund redeems from the money market fund (i.e., impose a liquidity fee). These measures may result in an investment loss or prohibit the Fund from redeeming shares when the Investment Manager would otherwise redeem shares. In addition to the fees and expenses that the Fund directly bears, the Fund indirectly bears the fees and expenses of any money market funds in which it invests, including affiliated money market funds. By investing in a money market fund, the Fund will be exposed to the investment risks of the money market fund in direct proportion to such investment. To the extent the Fund invests in instruments such as derivatives, the Fund may hold investments, which may be significant, in money market fund shares to cover its obligations resulting from the Fund’s investments in such instruments. Money market funds and the securities they invest in are subject to comprehensive regulations. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operation, performance and/or yield of money market funds.
Social impact risk
The Investment Manager’s consideration of social impact may limit the Fund’s investment opportunities and, as a result, the Fund may underperform funds that do not consider social impact or consider it but make different investment decisions based thereon.
Note 9. Subsequent events
Management has evaluated the events and transactions that have occurred through the date the financial statements were issued. Other than as noted in Note 1 above, there were no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information regarding pending and settled legal proceedings
Ameriprise Financial and certain of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to the Fund.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 25 |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Columbia Funds Series Trust I and Shareholders of Columbia U.S. Social Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of Columbia U.S. Social Bond Fund (one of the funds constituting Columbia Funds Series Trust I, referred to hereafter as the "Fund") as of July 31, 2023, the related statement of operations for the year ended July 31, 2023, the statement of changes in net assets for each of the two years in the period ended July 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2023 (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 July 31, 2023, 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 July 31, 2023 and the financial highlights for each of the five years in the period ended July 31, 2023 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 July 31, 2023 by correspondence with the custodian and transfer agent. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
September 21, 2023
We have served as the auditor of one or more investment companies within the Columbia Funds Complex since 1977.
| 26 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Federal Income Tax Information
(Unaudited)
The Fund hereby designates the following tax attributes for the fiscal year ended July 31, 2023. Shareholders will be notified in early 2024 of the amounts for use in preparing 2023 income tax returns.
Exempt-
interest
dividends | |
| 89.04% | |
Exempt-interest dividends. The percentage of net investment income distributed during the fiscal year that qualifies as exempt-interest dividends for federal income tax purposes. A portion of the income may be subject to federal alternative minimum tax.
TRUSTEES AND OFFICERS
(Unaudited)
The Board oversees the Fund’s operations and appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Fund’s Trustees as of the printing of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. The year set forth beneath Length of Service in the table below is the year in which the Trustee was first appointed or elected as Trustee to any Fund currently in the Columbia Funds Complex or a predecessor thereof. Under current Board policy, each Trustee generally serves until December 31 of the year such Trustee turns seventy-five (75).
Independent trustees
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Trustee since 2017 | Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016 | 173 | 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; former Board Member, Chase Bank International, 1993-1994 |
Columbia U.S. Social Bond Fund | Annual Report 2023
| 27 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
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-July 2017; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance), February-July 2018, April-October 2021 | 173 | Former Trustee, Blue Cross and Blue Shield of Minnesota, 2009-2021 (Chair of the Business Development Committee, 2014-2017; Chair of the Governance Committee, 2017-2019); former Member and Chair of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017; former Director, Robina Foundation, 2009-2020 (Chair, 2014-2020); Director, Richard M. Schulze Family Foundation, since 2021 |
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1954 | Chair since 2023; Trustee since 2007 | President, Springboard – Partners in Cross Cultural Leadership (consulting company), since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, 1982-1991, Morgan Stanley; Attorney, Cleary Gottlieb Steen & Hamilton LLP, 1980-1982 | 173 | Trustee, New York Presbyterian Hospital Board, since 1996; Director, DR Bank (Audit Committee) since 2017; Director, Evercore Inc. (Audit Committee, Nominating and Governance Committee), since 2019; Director, Apollo Commercial Real Estate Finance, Inc. (Chair, Nominating and Governance Committee) (financial services), since 2021; the Governing Council of the Independent Directors Council (IDC), since 2021 |
Janet Langford Carrig
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1957 | Trustee since 1996 | Senior Vice President, General Counsel and Corporate Secretary, ConocoPhillips (independent energy company), September 2007-October 2018 | 173 | Director, EQT Corporation (natural gas producer), since 2019; former Director, Whiting Petroleum Corporation (independent oil and gas company), 2020-2022 |
J. Kevin Connaughton
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2020 | CEO and President, RhodeWay Financial (non-profit financial planning firm), since December 2022; Member, FINRA National Adjudicatory Council, since January 2020; Adjunct Professor of Finance, Bentley University since January 2018; Consultant to Independent Trustees of CFVIT and CFST I from March 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Managing Director and General Manager of Mutual Fund Products, Columbia Management Investment Advisers, LLC, May 2010-February 2015; President, Columbia Funds, 2008-2015; and senior officer of Columbia Funds and affiliated funds, 2003-2015 | 171 | Former Director, The Autism Project, March 2015-December 2021; former Member of the Investment Committee, St. Michael’s College, November 2015-February 2020; former Trustee, St. Michael’s College, June 2017-September 2019; former Trustee, New Century Portfolios (former mutual fund complex), January 2015-December 2017 |
| 28 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Olive M. Darragh
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since 2020 | Managing Director of Darragh Inc. (strategy and talent management consulting firm), since 2010; Founder and CEO, Zolio, Inc. (investment management talent identification platform), since 2004; Consultant to Independent Trustees of CFVIT and CFST I from June 2019 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Partner, Tudor Investments, 2004-2010; Senior Partner, McKinsey & Company (consulting), 1990-2004; Touche Ross CPA, 1985-1988 | 171 | Treasurer, Edinburgh University US Trust Board, since January 2023; Member, HBS Community Action Partners Board, since September 2022; former Director, University of Edinburgh Business School (Member of US Board), 2004-2019; former Director, Boston Public Library Foundation, 2008-2017 |
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1950 | Trustee since 2004 | Professor of Economics and Management, Bentley University, since 2002; Dean, McCallum Graduate School of Business, Bentley University, 1992-2002 | 173 | Former Trustee, MA Taxpayers Foundation, 1997-2022; former Director, The MA Business Roundtable, 2003-2019; former Chairperson, Innovation Index Advisory Committee, MA Technology Collaborative, 1997-2020 |
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 | 173 | Trustee, Catholic Schools Foundation, since 2004 |
Douglas A. Hacker
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1955 | Trustee since 1996 | 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 | 173 | Director, SpartanNash Company since November 2013 (Chair of the Board, since May 2021) (food distributor); Director, Aircastle Limited (Chair of Audit Committee) (aircraft leasing), since August 2006; 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 | 171 | None |
Columbia U.S. Social Bond Fund | Annual Report 2023
| 29 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
David M. Moffett
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2011 | Retired; former Chief Executive Officer of Freddie Mac and Chief Financial Officer of U.S. Bank | 171 | Director, CSX Corporation (transportation suppliers); 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; former Senior Adviser to The Carlyle Group (financial services), March 2008-September 2008; former Governance Consultant to Bridgewater Associates, January 2013-December 2015 |
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1952 | Trustee since 2004 | Director, Enterprise Asset Management, Inc. (private real estate and asset management company), since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Vice President, 1982-1985, Principal, 1985-1987, Managing Director, 1987-1989, Morgan Stanley; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc. | 173 | Director, Valmont Industries, Inc. (irrigation systems manufacturer), since 2012; Trustee, Carleton College (on the Investment Committee), since 1987; Trustee, Carnegie Endowment for International Peace (on the Investment Committee), since 2009 |
Natalie A. Trunow
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1967 | Trustee since 2020 | Chief Executive Officer, Millennial Portfolio Solutions LLC (asset management and consulting services), January 2016-January 2021; Non-executive Member of the Investment Committee and Valuation Committee, Sarona Asset Management Inc. (private equity firm) since September 2019; Advisor, Horizon Investments (asset management and consulting services), August 2018-January 2022; Advisor, Paradigm Asset Management, November 2016-January 2022; Consultant to Independent Trustees of CFVIT and CFST I from September 2016 to June 2020 with respect to CFVIT and to December 2020 with respect to CFST I; Director of Investments/Consultant, Casey Family Programs, April 2016-November 2016; Senior Vice President and Chief Investment Officer, Calvert Investments, August 2008-January 2016; Section Head and Portfolio Manager, General Motors Asset Management, June 1997-August 2008 | 171 | Independent Director, Investment Committee, Health Services for Children with Special Needs, Inc., 2010-2021; Independent Director, (Executive Committee and Chair, Audit Committee), Consumer Credit Counseling Services (formerly Guidewell Financial Solutions), since 2016; Independent Director, (Investment Committee), Sarona Asset Management, since 2019 |
| 30 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Independent trustees (continued)
Name,
address,
year of birth | Position held
with the Columbia Funds and
length of service | Principal occupation(s)
during past five years
and other relevant
professional experience | Number of
Funds in the
Columbia Funds
Complex*
overseen | Other directorships
held by Trustee
during the past five years
and other relevant Board experience |
Sandra L. Yeager
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1964 | Trustee since 2017 | Retired; President and founder, Hanoverian Capital, LLC (SEC registered investment advisor firm), 2008-2016; Managing Director, DuPont Capital, 2006-2008; Managing Director, Morgan Stanley Investment Management, 2004-2006; Senior Vice President, Alliance Bernstein, 1990-2004 | 173 | Former Director, NAPE (National Alliance for Partnerships in Equity) Education Foundation, October 2016-October 2020; Advisory Board, Jennersville YMCA, since 2022 |
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 and
other relevant Board experience |
Daniel J. Beckman
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
1962 | Trustee since November 2021 and President since June 2021 | Vice President – Head of North America Product, Columbia Management Investment Advisers, LLC, since April 2015; President and Principal Executive Officer of the Columbia Funds, since June 2021; officer of Columbia Funds and affiliated funds, 2020-2021 | 173 | Director, Ameriprise Trust Company, since October 2016; Director, Columbia Management Investment Distributors, Inc. since November 2018; Board of Governors, Columbia Wanger Asset Management, LLC since, January 2022; Director, Columbia Threadneedle Canada, Inc., since December 2022 |
| * | The term “Columbia Funds Complex” as used herein includes Columbia Seligman Premium Technology Growth Fund, Tri-Continental Corporation and each series of Columbia Funds Series Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds Series Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II (CET II), Columbia Funds Variable Insurance Trust (CFVIT) and Columbia Funds Variable Series Trust II (CFVST II). Messrs. Batejan, Beckman, Gallagher and Hacker and Mses. Blatz, Carlton, Carrig, Flynn, Paglia, and Yeager serve as directors of Columbia Seligman Premium Technology Growth Fund and Tri-Continental Corporation. |
| ** | Interested person (as defined under the 1940 Act) by reason of being an officer, director, security holder and/or employee of the Investment Manager or Ameriprise Financial. |
The Statement of Additional Information has additional information about the Fund’s Board members and is available, without charge, upon request by calling 800.345.6611, visiting columbiathreadneedleus.com/investor/ or contacting your financial intermediary.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 31 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
The Board has appointed officers who are responsible for day-to-day business decisions based on policies it has established. The officers serve at the pleasure of the Board. The following table provides basic information about the Officers of the Fund as of the printing of this report, including principal occupations during the past five years, although their specific titles may have varied over the period. In addition to Mr. Beckman, who is President and Principal Executive Officer, the Fund’s other officers are:
Fund officers
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael G. Clarke
290 Congress Street
Boston, MA 02210
1969 | Chief Financial Officer and Principal Financial Officer (2009) and Senior Vice President (2019) | Senior Vice President and North America Head of Operations & Investor Services, Columbia Management Investment Advisers, LLC, since June 2023 (previously Senior Vice President and Head of Global Operations, March 2022 – June 2023, Vice President, Head of North America Operations, and Co-Head of Global Operations, June 2019 - February 2022 and Vice President – Accounting and Tax, May 2010 - May 2019); senior officer of Columbia Funds and affiliated funds, since 2002. Director, Ameriprise Trust Company, since June 2023. |
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. |
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. |
William F. Truscott
290 Congress Street
Boston, MA 02210
1960 | Senior Vice President (2001) | Formerly, Trustee/Director of Columbia Funds Complex or legacy funds, November 2001 - January 1, 2021; Chief Executive Officer, Global Asset Management, Ameriprise Financial, Inc., since September 2012; Chairman of the Board and President, Columbia Management Investment Advisers, LLC, since July 2004 and February 2012, respectively; Chairman of the Board and Chief Executive Officer, Columbia Management Investment Distributors, Inc., since November 2008 and February 2012, respectively; Chairman of the Board and Director, Threadneedle Asset Management Holdings, Sàrl, since March 2013 and December 2008, respectively; senior executive of various entities affiliated with Columbia Threadneedle. |
Christopher O. Petersen
5228 Ameriprise Financial Center
Minneapolis, MN 55474
1970 | Senior Vice President and Assistant Secretary (2021) | Formerly, Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020 - November 22, 2021; Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc., since September 2021 (previously Vice President and Lead Chief Counsel, January 2015 - September 2021); formerly, 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; formerly, Chief Compliance Officer, Ameriprise Certificate Company, September 2010 – September 2020. |
Ryan C. Larrenaga
290 Congress Street
Boston, MA 02210
1970 | Senior Vice President (2017), Chief Legal Officer (2017), and Secretary (2015) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since August 2018 (previously Vice President and Group Counsel, August 2011 - August 2018); Chief Legal Officer, Columbia Acorn/Wanger Funds, since September 2020; officer of Columbia Funds and affiliated funds, since 2005. |
| 32 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
TRUSTEES AND OFFICERS (continued)
(Unaudited)
Fund officers (continued)
Name,
address and
year of birth | Position and year
first appointed to
position for any Fund
in the Columbia
Funds Complex or a
predecessor thereof | Principal occupation(s) during past five years |
Michael E. DeFao
290 Congress Street
Boston, MA 02210
1968 | Vice President (2011) and Assistant Secretary (2010) | Vice President and Chief Counsel, Ameriprise Financial, Inc., since May 2010; Vice President, Chief Legal Officer and Assistant Secretary, Columbia Management Investment Advisers, LLC, since October 2021 (previously Vice President and Assistant Secretary, May 2010 – September 2021). |
Lyn Kephart-Strong
5903 Ameriprise Financial Center
Minneapolis, MN 55474
1960 | Vice President (2015) | Vice President, Global Investment Operations Services, Columbia Management Investment Advisers, LLC, since 2010; Director (since January 2007) and President (since October 2014), Columbia Management Investment Services Corp.; Director (since December 2017) and President (since January 2017), Ameriprise Trust Company. |
Liquidity Risk Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2022 through December 31, 2022, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 33 |
Approval of Management and SubadvisoryAgreements
(Unaudited)
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 U.S. Social 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). In addition, under a Subadvisory Agreement (the Subadvisory Agreement) between the Investment Manager and Threadneedle International Limited (the Subadviser), an affiliate of the Investment Manager, the Investment Manager has retained the Subadviser to perform portfolio management and related services for the Fund. Although the Subadviser is not currently providing such services, the Investment Manager may in the future reallocate Fund assets to be managed by the Subadviser.
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 and the Subadvisory Agreement (together, the Advisory Agreements). The Investment Manager prepared detailed reports for the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) 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 (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Advisory Agreements.
The Board, at its June 22, 2023 Board meeting (the June Meeting), considered the renewal of each of the Advisory Agreements for additional one-year terms. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various factors relevant to the Board’s consideration of advisory and subadvisory 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 each of the Advisory Agreements. 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 one or more 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; |
| • | 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 Advisory Agreements; |
| • | Subadvisory fees payable by the Investment Manager under the Subadvisory 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 and the Subadviser under the Advisory Agreements, 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; |
| 34 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Approval of Management and Subadvisory
Agreements (continued)
(Unaudited)
| • | Information regarding the resources of the Investment Manager and the Subadviser, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager and the Subadviser 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 and the Subadvisory Agreement.
Nature, extent and quality of services provided by the Investment Manager and the Subadviser
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment Manager and the Subadviser, as well as their history, expertise, resources and relative capabilities, and the qualifications of their personnel.
The Board specifically considered the many developments during recent years concerning the services provided by the Investment Manager, including, in particular, detailed information regarding the process employed for selecting and overseeing affiliated and unaffiliated subadvisers. With respect to the Investment Manager, the Board also 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. The Board also took into account the broad scope of services provided by the Investment Manager to each subadvised 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.
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 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the Advisory Agreements, 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 (including the relatively broad scope of services required to be performed by the Investment Manager in addition to monitoring the Subadviser), noting that no changes were proposed from the forms of agreements previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
The Board considered the Subadviser’s organizational strength and resources, portfolio management team depth and capabilities and investment process. The Board also considered the Subadviser’s capability and wherewithal to carry out its responsibilities under the Subadvisory Agreement. In addition, the Board discussed the acceptability of the terms of the Subadvisory Agreement, including the scope of services required to be performed. The Board noted that the terms of the Subadvisory Agreement are generally consistent with the terms of other subadvisory agreements for subadvisers who manage other funds managed by the Investment Manager. It was observed that no changes were recommended to the Subadvisory Agreement. The Board took into account the Investment Manager’s representation that the Subadviser was in a position to provide quality services to the Fund. In this regard, the Board further observed the various services provided by the Investment Manager’s subadvisory oversight team.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 35 |
Approval of Management and Subadvisory
Agreements (continued)
(Unaudited)
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 Advisory Agreements supported the continuation of the Management Agreement and the Subadvisory Agreement.
Investment performance
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 Fund’s performance relative to peers and benchmarks and (iii) 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 and Subadviser’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, the Investment Manager and the Subadviser, in light of other considerations, supported the continuation of the Management Agreement and the Subadvisory 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 each of the Advisory Agreements. 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.
Additionally, the Board reviewed the level of subadvisory fees paid to the Subadviser, noting that the fees are paid by the Investment Manager and do not impact the fees paid by the Fund. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees, subadvisory fees and expenses of the Fund, in light of other considerations, supported the continuation of each of the Management Agreement and the Subadvisory 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. 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 the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. 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
| 36 | Columbia U.S. Social Bond Fund | Annual Report 2023 |
Approval of Management and Subadvisory
Agreements (continued)
(Unaudited)
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 and the Subadvisory Agreement.
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, 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 and the Subadvisory Agreement. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board, including all of the Independent Trustees, determined that fees payable under each of the Advisory Agreements were fair and reasonable in light of the extent and quality of services provided and approved the renewal of each of the Advisory Agreements.
Columbia U.S. Social Bond Fund | Annual Report 2023
| 37 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia U.S. Social 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.
© 2023 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, Sandra L. Yeager, and Douglas A. Hacker, 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, Ms. Yeager, and Mr. Hacker are each independent trustees, as defined in paragraph (a)(2) of this item’s instructions.
Item 4. Principal Accountant Fees and Services.
Fee information below is disclosed for the five series of the registrant whose reports to stockholders are included in this annual filing.
(a) Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended July 31, 2023 and July 31, 2022 are approximately as follows:
| |
2023 | 2022 |
$160,700 | $157,500 |
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 July 31, 2023 and July 31, 2022 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 July 31, 2023 and July 31, 2022, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(c) Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended July 31, 2023 and July 31, 2022 are approximately as follows:
| |
2023 | 2022 |
$62,500 | $66,800 |
Tax Fees include amounts for the review of annual tax returns, the review of required shareholder distribution calculations and typically include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning.
During the fiscal years ended July 31, 2023 and July 31, 2022, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(d) All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended July 31, 2023 and July 31, 2022 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 July 31, 2023 and July 31, 2022 are approximately as follows:
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2023 | 2022 |
$557,000 | $535,000 |
In fiscal years 2023 and 2022, 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 July 31, 2023 and July 31, 2022 are approximately as follows:
| |
2023 | 2022 |
$619,500 | $601,800 |
(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. |
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. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | Columbia Funds Series Trust I |
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By (Signature and Title) | /s/ Daniel J. Beckman |
| Daniel J. Beckman, President and Principal Executive Officer |
| |
Date | September 21, 2023 |
| |
| |
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 | September 21, 2023 |
By (Signature and Title) | /s/ Michael G. Clarke |
| Michael G. Clarke, Chief Financial Officer, |
| Principal Financial Officer and Senior Vice President |
| |
Date | September 21, 2023 |
By (Signature and Title) | /s/ Joseph Beranek |
| Joseph Beranek, Treasurer, Chief Accounting |
| Officer and Principal Financial Officer |
| |
Date | September 21, 2023 |
