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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 811-08748
Wanger Advisors Trust
(Exact name of registrant as specified in charter)
227 W. Monroe Street
Suite 3000
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Mary C. Moynihan
Perkins Coie LLP
700 13th Street, NW
Suite 600
Washington, DC 20005
Paul B. Goucher, Esq.
Columbia Management Investment Advisers, LLC
100 Park Avenue
New York, New York 10017
P. Zachary Egan
Columbia Acorn Trust
227 West Monroe Street, Suite 3000
Chicago, Illinois 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312) 634-9200
Date of fiscal year end: December 31
Date of reporting period: June 30, 2017
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
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Item 1. Reports to Stockholders.
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June 30, 2017
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Average annual total returns (%) (for the period ended June 30, 2017) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger USA | 05/03/95 | 11.49 | 24.59 | 13.93 | 7.48 | 11.78 | |
Russell 2000 Growth Index | 9.97 | 24.40 | 13.98 | 7.82 | 7.63 |
Wanger USA | Semiannual Report 2017 | 3 |
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Top ten holdings (%) (at June 30, 2017) | |
HealthSouth Corp. Inpatient rehabilitative healthcare services | 2.3 |
LCI Industries Recreational vehicles and equipment | 2.2 |
MAXIMUS, Inc. Program management and consulting services to state and local governments | 2.0 |
OM Asset Management PLC Domestic and international equities, fixed income, and alternative investments | 1.7 |
WNS Holdings Ltd., ADR Business process outsourcing services | 1.7 |
Texas Roadhouse, Inc. Moderately priced, full service restaurant chain | 1.6 |
Lakeland Financial Corp. Bank holding company | 1.5 |
LegacyTexas Financial Group, Inc. Bank holding company | 1.5 |
Toro Co. (The) Turf equipment | 1.5 |
Qualys, Inc. Information technology security risk and compliance management solutions | 1.5 |
Portfolio breakdown (%) (at June 30, 2017) | |
Common Stocks | 93.3 |
Money Market Funds | 4.1 |
Securities Lending Collateral | 2.6 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2017) | |
Consumer Discretionary | 23.1 |
Consumer Staples | 1.0 |
Energy | 1.9 |
Financials | 10.9 |
Health Care | 22.1 |
Industrials | 14.7 |
Information Technology | 23.4 |
Materials | 0.7 |
Real Estate | 2.2 |
Total | 100.0 |
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6 | Wanger USA | Semiannual Report 2017 |
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January 1, 2017 — June 30, 2017 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger USA | 1,000.00 | 1,000.00 | 1,114.90 | 1,020.00 | 5.22 | 4.99 | 0.99 |
Wanger USA | Semiannual Report 2017 | 7 |
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June 30, 2017 (Unaudited)
Common Stocks 97.3% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 22.4% | ||
Auto Components 5.3% | ||
Cooper-Standard Holding, Inc.(a) Sealing, fuel and brake delivery, fluid transfer systems, anti-vibration systems components, subsystems, and modules | 48,866 | 4,929,113 |
Dorman Products, Inc.(a) Automotive products and home hardware | 92,158 | 7,627,918 |
Gentex Corp. Products that use electro-optic technology | 183,487 | 3,480,748 |
LCI Industries Recreational vehicles and equipment | 144,694 | 14,816,666 |
Tenneco, Inc. Emission control and ride control products and systems | 93,755 | 5,421,852 |
Total | 36,276,297 | |
Distributors 1.0% | ||
Pool Corp. Wholesale distributor of swimming pool supplies, equipment and leisure products | 57,222 | 6,727,591 |
Diversified Consumer Services 3.5% | ||
Adtalem Global Education, Inc. Higher education institutions | 258,097 | 9,794,781 |
Bright Horizons Family Solutions, Inc.(a) Child care and early education services | 96,459 | 7,447,599 |
Laureate Education, Inc., Class A(a) Provides educational services | 403,982 | 7,081,805 |
Total | 24,324,185 | |
Hotels, Restaurants & Leisure 5.0% | ||
Extended Stay America, Inc. Hotels and motels | 464,049 | 8,983,989 |
Papa John’s International, Inc. Pizza delivery and carry-out restaurants | 97,356 | 6,986,266 |
Texas Roadhouse, Inc. Moderately priced, full service restaurant chain | 215,558 | 10,982,680 |
Vail Resorts, Inc. Operates resorts globally | 18,266 | 3,704,893 |
Wingstop, Inc.(b) Cooked-to-order chicken wings | 116,734 | 3,607,081 |
Total | 34,264,909 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Household Durables 1.4% | ||
Cavco Industries, Inc.(a) Designs and manufactures systems-built structures | 45,240 | 5,865,366 |
iRobot Corp.(a) Manufactures robots for cleaning | 49,060 | 4,127,908 |
Total | 9,993,274 | |
Internet & Direct Marketing Retail 1.1% | ||
Wayfair, Inc., Class A(a),(b) Retails household goods online | 99,975 | 7,686,078 |
Leisure Products 2.2% | ||
Brunswick Corp. Consumer products serving the outdoor and indoor active recreation markets | 140,977 | 8,843,487 |
Polaris Industries, Inc.(b) Off-road and on-road vehicles | 69,611 | 6,420,223 |
Total | 15,263,710 | |
Specialty Retail 2.9% | ||
Camping World Holdings, Inc., Class A Recreational vehicles and accessories | 263,439 | 8,127,093 |
Five Below, Inc.(a) Specialty value retailer | 173,051 | 8,543,528 |
Monro Muffler Brake, Inc. Automotive undercar repair and tire services | 74,782 | 3,122,148 |
Total | 19,792,769 | |
Total Consumer Discretionary | 154,328,813 | |
Consumer Staples 0.9% | ||
Household Products 0.9% | ||
WD-40 Co. Multi-purpose lubricant products and heavy-duty hand cleaners | 56,919 | 6,281,012 |
Total Consumer Staples | 6,281,012 | |
Energy 1.9% | ||
Energy Equipment & Services 1.0% | ||
Core Laboratories NV Reservoir description, production enhancement, and reservoir management services | 38,122 | 3,860,615 |
Oceaneering International, Inc. Services and products for the offshore oil and gas industry | 135,747 | 3,100,461 |
Total | 6,961,076 |
8 | Wanger USA | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Oil, Gas & Consumable Fuels 0.9% | ||
Carrizo Oil & Gas, Inc.(a) Natural gas and crude oil | 176,792 | 3,079,717 |
PDC Energy, Inc.(a) Petroleum products | 64,377 | 2,775,292 |
Total | 5,855,009 | |
Total Energy | 12,816,085 | |
Financials 10.6% | ||
Banks 6.6% | ||
First Busey Corp. Multi-bank holding company | 240,969 | 7,065,211 |
Great Southern Bancorp, Inc. Real estate, commercial real estate, commercial business, consumer, and construction loans | 75,385 | 4,033,097 |
Lakeland Financial Corp. Bank holding company | 223,648 | 10,260,970 |
LegacyTexas Financial Group, Inc. Bank holding company | 267,640 | 10,205,113 |
MB Financial, Inc. Holding company for MB Financial Bank, N.A. | 141,549 | 6,233,818 |
Sandy Spring Bancorp, Inc. Holding company for Sandy Spring Bank | 90,292 | 3,671,273 |
Trico Bancshares Holding company for Tri Counties Bank | 114,604 | 4,028,331 |
Total | 45,497,813 | |
Capital Markets 3.0% | ||
Hamilton Lane, Inc., Class A(b) Private market investment solutions | 190,031 | 4,178,782 |
Houlihan Lokey, Inc. Investment bank | 149,932 | 5,232,627 |
OM Asset Management PLC Domestic and international equities, fixed income, and alternative investments | 764,764 | 11,364,393 |
Total | 20,775,802 | |
Consumer Finance 1.0% | ||
FirstCash, Inc. Owns and operates pawn stores | 113,886 | 6,639,554 |
Total Financials | 72,913,169 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care 21.5% | ||
Biotechnology 5.3% | ||
Agios Pharmaceuticals, Inc.(a) Therapeutics in the field of cancer metabolism | 144,860 | 7,453,047 |
Celldex Therapeutics, Inc.(a),(b) Uses applications of immunology to prevent and treat diseases | 1,125,025 | 2,778,812 |
Exact Sciences Corp.(a) Developing and commercializing a test for the early detection and prevention of colorectal cancer | 119,410 | 4,223,532 |
Genomic Health, Inc.(a) Development and commercialization of genomic-based clinical diagnostic tests for cancer | 115,095 | 3,746,342 |
Intercept Pharmaceuticals, Inc.(a),(b) biopharmaceutical products | 33,122 | 4,010,080 |
Kite Pharma, Inc.(a) Develops and manufacturers pharmaceuticals | 44,589 | 4,622,542 |
Ligand Pharmaceuticals, Inc.(a) Drugs that regulate hormone activated intracellular receptors | 33,449 | 4,060,708 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 88,717 | 5,510,213 |
Total | 36,405,276 | |
Health Care Equipment & Supplies 7.8% | ||
Anika Therapeutics, Inc.(a) Integrated orthopedic medicines company | 123,686 | 6,102,667 |
Atrion Corp. Medical products and components | 9,700 | 6,240,010 |
Endologix, Inc.(a),(b) Minimally invasive treatments for vascular diseases | 508,174 | 2,469,726 |
Haemonetics Corp.(a) Automated blood processing systems | 129,223 | 5,103,016 |
iRhythm Technologies, Inc.(a) Medical instruments | 183,658 | 7,803,628 |
LeMaitre Vascular, Inc. Medical devices for vascular surgeons and interventionists | 120,654 | 3,766,818 |
Masimo Corp.(a) Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 76,677 | 6,991,409 |
Natus Medical, Inc.(a) Medical device company that develops, manufactures, and markets screening products | 156,220 | 5,827,006 |
Wanger USA | Semiannual Report 2017 | 9 |
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June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
OraSure Technologies, Inc.(a) Medical devices and diagnostic products | 296,134 | 5,111,273 |
West Pharmaceutical Services, Inc. Drug therapies and healthcare products | 43,661 | 4,126,838 |
Total | 53,542,391 | |
Health Care Providers & Services 4.0% | ||
AMN Healthcare Services, Inc.(a) Temporary healthcare staffing | 187,769 | 7,332,380 |
HealthEquity, Inc.(a) Technology-enabled services platforms for consumers to make healthcare saving and spending decisions | 95,030 | 4,735,345 |
HealthSouth Corp. Inpatient rehabilitative healthcare services | 322,163 | 15,592,689 |
Total | 27,660,414 | |
Health Care Technology 1.7% | ||
Evolent Health, Inc., Class A(a) Purpose-built platform enables providers to migrate their payment models | 236,067 | 5,984,298 |
Medidata Solutions, Inc.(a) Hosted clinical development solutions | 72,840 | 5,696,088 |
Total | 11,680,386 | |
Life Sciences Tools & Services 2.7% | ||
Bio-Techne Corp. Biotechnology products and clinical diagnostic controls | 79,198 | 9,305,765 |
Cambrex Corp.(a) Products, services, and technologies for the Life Sciences and fine chemicals industry | 149,651 | 8,941,647 |
Total | 18,247,412 | |
Total Health Care | 147,535,879 | |
Industrials 14.3% | ||
Aerospace & Defense 2.3% | ||
Astronics Corp.(a) Specialized lighting, control systems, and electronics for the cockpit, cabin, and exteriors of military, commercial jet, and aviation aircraft | 149,491 | 4,554,991 |
Astronics Corp., Class B(a) Designer & Manufacturer of Aircraft Electrical Components & Testing Equipment | 21,436 | 655,513 |
Axon Enterprise, Inc.(a),(b) Security systems | 154,574 | 3,885,990 |
HEICO Corp., Class A Aerospace products and services | 105,679 | 6,557,382 |
Total | 15,653,876 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Commercial Services & Supplies 4.6% | ||
Brink’s Co. (The) Provides security services globally | 107,509 | 7,203,103 |
Copart, Inc.(a) Services to process and sell salvage vehicles through auctions | 274,417 | 8,723,717 |
Healthcare Services Group, Inc. Housekeeping, laundry, linen, facility maintenance, and food services | 86,922 | 4,070,557 |
Knoll, Inc. Branded office furniture products and textiles | 163,713 | 3,282,446 |
Unifirst Corp. Workplace uniforms and protective clothing | 59,889 | 8,426,382 |
Total | 31,706,205 | |
Machinery 4.8% | ||
Barnes Group, Inc. International industrial and aerospace manufacturer and service provider | 139,883 | 8,187,352 |
ESCO Technologies, Inc. Engineered products and solutions | 67,265 | 4,012,357 |
Nordson Corp. Systems that apply adhesives, sealants, and coatings to products during manufacturing | 27,952 | 3,391,137 |
Oshkosh Corp. Fire and emergency apparatuses and specialty commercial, and military trucks | 50,271 | 3,462,666 |
REV Group, Inc. Specialty vehicles and related aftermarket parts and services | 145,594 | 4,030,042 |
Toro Co. (The) Turf equipment | 145,344 | 10,070,886 |
Total | 33,154,440 | |
Professional Services 2.0% | ||
ICF International, Inc.(a) Management, technology, policy consulting, and implementation services | 121,028 | 5,700,419 |
Wageworks, Inc.(a) Tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits | 121,229 | 8,146,588 |
Total | 13,847,007 | |
Trading Companies & Distributors 0.6% | ||
Watsco, Inc. Air conditioning, heating, and refrigeration equipment | 24,431 | 3,767,260 |
Total Industrials | 98,128,788 |
10 | Wanger USA | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Information Technology 22.8% | ||
Electronic Equipment, Instruments & Components 1.1% | ||
IPG Photonics Corp.(a) High-power fiber lasers and amplifiers | 52,969 | 7,685,802 |
Internet Software & Services 9.5% | ||
Alteryx, Inc., Class A(a),(b) Data storage, retrieval, management, reporting, and analytics solutions | 227,551 | 4,441,796 |
Apptio, Inc., Class A(a) Cloud-based business management solutions | 201,188 | 3,490,612 |
CoStar Group, Inc.(a) Provides building-specific information to the United States commercial real estate industry and related industries | 28,011 | 7,383,700 |
j2 Global, Inc. Cloud-based communications and storage messaging services | 113,366 | 9,646,313 |
LogMeIn, Inc. Remote connectivity services | 49,058 | 5,126,561 |
Mimecast Ltd.(a) Cloud security and risk management services for corporate information and email | 230,008 | 6,159,614 |
MINDBODY, Inc., Class A(a) Business management software | 195,367 | 5,313,982 |
NIC, Inc. Provides eGovernment services | 431,774 | 8,182,117 |
Nutanix, Inc., Class A(a),(b) Enterprise cloud platforms | 297,951 | 6,003,713 |
Q2 Holdings, Inc.(a) Secure, cloud-based virtual banking solutions | 150,996 | 5,579,302 |
SPS Commerce, Inc.(a) On-demand supply chain management solutions through an online hosted software suite | 58,737 | 3,745,071 |
Total | 65,072,781 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
IT Services 5.7% | ||
CoreLogic, Inc.(a) Consumer, financial and property information, analytics and services to business and government | 99,630 | 4,321,949 |
Euronet Worldwide, Inc.(a) Electronic financial transaction solutions | 72,318 | 6,318,424 |
ExlService Holdings, Inc.(a) Offshore business process outsourcing solutions | 74,717 | 4,152,771 |
MAXIMUS, Inc. Program management and consulting services to state and local governments | 218,432 | 13,680,396 |
WNS Holdings Ltd., ADR(a) Business process outsourcing services | 323,037 | 11,099,551 |
Total | 39,573,091 | |
Semiconductors & Semiconductor Equipment 1.1% | ||
Monolithic Power Systems, Inc. Power management solutions | 75,628 | 7,290,539 |
Software 5.4% | ||
Aspen Technology, Inc.(a) Process optimization software, products and services | 88,250 | 4,876,695 |
Blackline, Inc.(a) Develops and markets enterprise software | 138,472 | 4,948,989 |
CyberArk Software Ltd.(a) IT security solutions | 76,266 | 3,809,487 |
Guidewire Software, Inc.(a) Enterprise software for the property and casualty insurance industry | 77,352 | 5,314,856 |
Manhattan Associates, Inc.(a) Information technology solutions for distribution centers | 71,740 | 3,447,825 |
Qualys, Inc.(a) Information technology security risk and compliance management solutions | 242,884 | 9,909,667 |
Tyler Technologies, Inc.(a) End-to-end information management solutions and services for local governments | 26,715 | 4,693,025 |
Total | 37,000,544 | |
Total Information Technology | 156,622,757 | |
Materials 0.7% | ||
Chemicals 0.7% | ||
Scotts Miracle-Gro Co. (The), Class A Lawn and garden products | 54,227 | 4,851,147 |
Total Materials | 4,851,147 |
Wanger USA | Semiannual Report 2017 | 11 |
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June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Real Estate 2.2% | ||
Equity Real Estate Investment Trusts (REITS) 1.5% | ||
CoreCivic, Inc. Detention and corrections services | 234,785 | 6,475,370 |
UMH Properties, Inc. Real estate investment trust | 223,313 | 3,807,487 |
Total | 10,282,857 | |
Real Estate Management & Development 0.7% | ||
Colliers International Group, Inc. Commercial real estate, residential property management and property services | 82,709 | 4,668,923 |
Total Real Estate | 14,951,780 | |
Total Common Stocks (Cost: $502,841,722) | 668,429,430 | |
Securities Lending Collateral 2.7% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 0.910%(c),(d) | 18,747,400 | 18,747,400 |
Total Securities Lending Collateral (Cost: $18,747,400) | 18,747,400 | |
Money Market Funds 4.3% | ||
Shares | Value ($) | |
JPMorgan U.S. Government Money Market Fund, Agency Shares, 0.780%(c) | 29,168,487 | 29,168,487 |
Total Money Market Funds (Cost: $29,168,487) | 29,168,487 | |
Total Investments (Cost $550,757,609) | 716,345,317 | |
Obligation to Return Collateral for Securities Loaned | (18,747,400) | |
Other Assets & Liabilities, Net | (10,517,376) | |
Net Assets | $687,080,541 |
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at June 30, 2017. The total market value of securities on loan at June 30, 2017 was $18,293,903. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2017. |
(d) | Investment made with cash collateral received from securities lending activity. |
ADR | American Depositary Receipt |
• | Level 1 – quoted prices in active markets for identical securities |
• | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
• | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
12 | Wanger USA | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
The Committee is responsible for applying the Wanger Advisors Trust Portfolio Pricing Policy and the Columbia Wanger Asset Management pricing procedures (the Policies), which are approved by and subject to the oversight of the Board of Trustees.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
Investments | ||||
Common Stocks | ||||
Consumer Discretionary | 154,328,813 | — | — | 154,328,813 |
Consumer Staples | 6,281,012 | — | — | 6,281,012 |
Energy | 12,816,085 | — | — | 12,816,085 |
Financials | 72,913,169 | — | — | 72,913,169 |
Health Care | 147,535,879 | — | — | 147,535,879 |
Industrials | 98,128,788 | — | — | 98,128,788 |
Information Technology | 156,622,757 | — | — | 156,622,757 |
Materials | 4,851,147 | — | — | 4,851,147 |
Real Estate | 14,951,780 | — | — | 14,951,780 |
Total Common Stocks | 668,429,430 | — | — | 668,429,430 |
Securities Lending Collateral | 18,747,400 | — | — | 18,747,400 |
Money Market Funds | 29,168,487 | — | — | 29,168,487 |
Total Investments | 716,345,317 | — | — | 716,345,317 |
Wanger USA | Semiannual Report 2017 | 13 |
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June 30, 2017 (Unaudited)
Assets | |
Investments, at cost | |
Unaffiliated issuers, at cost | $550,757,609 |
Total investments, at cost | 550,757,609 |
Investments, at value | |
Unaffiliated issuers, at value (including securities on loan: $18,293,903) | 716,345,317 |
Total investments, at value | 716,345,317 |
Receivable for: | |
Investments sold | 304,119 |
Dividends | 316,675 |
Securities lending income | 26,185 |
Foreign tax reclaims | 401 |
Prepaid expenses | 4,634 |
Trustees’ deferred compensation plan | 174,177 |
Total assets | 717,171,508 |
Liabilities | |
Due upon return of securities on loan | 18,747,400 |
Payable for: | |
Investments purchased | 9,913,918 |
Capital shares purchased | 1,125,009 |
Investment advisory fee | 16,311 |
Transfer agent fees | 2 |
Administration fees | 942 |
Other expenses | 113,208 |
Trustees’ deferred compensation plan | 174,177 |
Total liabilities | 30,090,967 |
Net assets applicable to outstanding capital stock | $687,080,541 |
Represented by | |
Paid in capital | 437,539,535 |
Excess of distributions over net investment income | (177,523) |
Accumulated net realized gain | 84,130,821 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 165,587,708 |
Total - representing net assets applicable to outstanding capital stock | $687,080,541 |
Shares outstanding | 27,563,993 |
Net asset value per share | 24.93 |
14 | Wanger USA | Semiannual Report 2017 |
Table of Contents
Six Months Ended June 30, 2017 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $2,881,419 |
Income from securities lending — net | 434,433 |
Foreign taxes withheld | (21,377) |
Total income | 3,294,475 |
Expenses: | |
Investment advisory fee | 2,913,427 |
Transfer agent fees | 293 |
Administration fees | 168,224 |
Trustees’ fees | 27,843 |
Custodian fees | 7,131 |
Printing and postage fees | 82,695 |
Audit fees | 19,530 |
Legal fees | 79,243 |
Compensation of chief compliance officer | 1,040 |
Other | 3,896 |
Total expenses | 3,303,322 |
Net investment loss | (8,847) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 87,666,871 |
Net realized gain | 87,666,871 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (14,366,532) |
Net change in unrealized appreciation (depreciation) | (14,366,532) |
Net realized and unrealized gain | 73,300,339 |
Net increase in net assets resulting from operations | $73,291,492 |
Wanger USA | Semiannual Report 2017 | 15 |
Table of Contents
Six Months Ended June 30, 2017 (Unaudited) | Year Ended December 31, 2016 | |
Operations | ||
Net investment loss | $(8,847) | $(1,023,088) |
Net realized gain | 87,666,871 | 107,626,627 |
Net change in unrealized appreciation (depreciation) | (14,366,532) | (26,013,693) |
Net increase in net assets resulting from operations | 73,291,492 | 80,589,846 |
Distributions to shareholders | ||
Net realized gains | (108,009,366) | (177,478,615) |
Total distributions to shareholders | (108,009,366) | (177,478,615) |
Increase in net assets from capital stock activity | 57,562,698 | 68,519,737 |
Total increase (decrease) in net assets | 22,844,824 | (28,369,032) |
Net assets at beginning of period | 664,235,717 | 692,604,749 |
Net assets at end of period | $687,080,541 | $664,235,717 |
Excess of distributions over net investment income | $(177,523) | $(168,676) |
Six Months Ended | Year Ended | |||
June 30, 2017 (Unaudited) | December 31, 2016 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 187,326 | 5,113,344 | 358,725 | 9,663,627 |
Distributions reinvested | 4,399,567 | 108,009,366 | 7,321,725 | 177,478,615 |
Redemptions | (2,057,993) | (55,560,012) | (4,460,294) | (118,622,505) |
Total net increase | 2,528,900 | 57,562,698 | 3,220,156 | 68,519,737 |
16 | Wanger USA | Semiannual Report 2017 |
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Six Months Ended June 30, 2017 (Unaudited) | Year Ended December 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Per share data | ||||||
Net asset value, beginning of period | $26.53 | $31.75 | $37.71 | $41.13 | $33.84 | $29.80 |
Income from investment operations: | ||||||
Net investment income (loss) | 0.00 (a) | (0.04) | (0.12) | (0.06) | (0.05) | 0.15 |
Net realized and unrealized gain | 2.98 | 3.56 | 0.45 | 1.70 | 10.79 | 5.63 |
Total from investment operations | 2.98 | 3.52 | 0.33 | 1.64 | 10.74 | 5.78 |
Less distributions to shareholders from: | ||||||
Net investment income | — | — | — | — | (0.06) | (0.11) |
Net realized gains | (4.58) | (8.74) | (6.29) | (5.06) | (3.39) | (1.63) |
Total distributions to shareholders | (4.58) | (8.74) | (6.29) | (5.06) | (3.45) | (1.74) |
Net asset value, end of period | $24.93 | $26.53 | $31.75 | $37.71 | $41.13 | $33.84 |
Total return | 11.49% | 13.69% | (0.61)% | 4.78% | 33.75% | 20.02% (b) |
Ratios to average net assets | ||||||
Total gross expenses(c) | 0.99% (d) | 1.00% | 1.01% | 0.96% | 0.96% | 0.96% |
Total net expenses(c) | 0.99% (d) | 1.00% | 1.01% | 0.96% | 0.96% | 0.96% (e) |
Net investment income (loss) | 0.00% (a),(d) | (0.16)% | (0.34)% | (0.15)% | (0.12)% | 0.45% |
Supplemental data | ||||||
Portfolio turnover | 48% | 118% | 45% | 14% | 15% | 12% |
Net assets, end of period (in thousands) | $687,081 | $664,236 | $692,605 | $800,933 | $912,143 | $782,222 |
Notes to Financial Highlights | |
(a) | Rounds to zero. |
(b) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(c) | 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, if any. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(d) | Annualized. |
(e) | The benefits derived from custody fees paid indirectly had an impact of less than 0.01%. |
Wanger USA | Semiannual Report 2017 | 17 |
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18 | Wanger USA | Semiannual Report 2017 |
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Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger USA | |||||
Securities lending transactions | |||||
Equity securities | $18,293,903 | $— | $— | $— | $18,293,903 |
Gross amount of recognized liabilities for securities lending (collateral received) | 18,747,400 | ||||
Amounts due to counterparty | $453,497 |
Goldman Sachs ($) | |||||||
Liabilities | |||||||
Collateral on Securities loaned | 18,747,400 | ||||||
Total Liabilities | 18,747,400 | ||||||
Total Financial and Derivative Net Assets | (18,747,400) | ||||||
Financial Instruments | 18,293,903 | ||||||
Net Amount (a) | (453,497) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
Wanger USA | Semiannual Report 2017 | 19 |
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20 | Wanger USA | Semiannual Report 2017 |
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Average daily net assets | Annual fee rate |
Up to $100 million | 0.94% |
$100 million to $250 million | 0.89% |
$250 million to $2 billion | 0.84% |
$2 billion and over | 0.80% |
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
Wanger USA | Semiannual Report 2017 | 21 |
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June 30, 2017 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
550,758,000 | 177,248,000 | (11,661,000) | 165,587,000 |
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Average annual total returns (%) (for the period ended June 30, 2017) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger International | 05/03/95 | 20.13 | 18.62 | 9.19 | 4.07 | 12.04 | |
MSCI ACWI ex USA Small Cap Index (Net) | 15.56 | 20.32 | 10.02 | 2.91 | 6.09 | ||
MSCI ACWI ex USA Small Cap Growth Index (Net) | 16.58 | 17.17 | 9.77 | 2.56 | 4.54 |
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Top ten holdings (%) (at June 30, 2017) | |
SimCorp AS (Denmark) Global provider of highly specialised software for the investment management industry | 1.8 |
Hastings Group Holdings PLC (United Kingdom) General insurance services to the automobile and home insurance products | 1.8 |
Halma PLC (United Kingdom) Products that detect hazards and protect assets and people in public and commercial buildings | 1.8 |
Big Yellow Group PLC (United Kingdom) Self-storage company | 1.8 |
Brembo SpA (Italy) Braking systems and components | 1.6 |
Rightmove PLC (United Kingdom) Website that lists properties across Britain | 1.6 |
Spirax-Sarco Engineering PLC (United Kingdom) Consultation, service and products for the control and efficient management of steam and industrial fluids | 1.5 |
Aeon Mall Co., Ltd. (Japan) Large-scale shopping malls | 1.5 |
Silergy Corp. (Taiwan) High performance analog integrated circuits | 1.5 |
Koh Young Technology, Inc. (South Korea) 3D measurement and inspection equipment for testing various machineries | 1.5 |
4 | Wanger International | Semiannual Report 2017 |
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(Unaudited)
Equity sector breakdown (%) (at June 30, 2017) | |
Consumer Discretionary | 23.7 |
Consumer Staples | 5.6 |
Energy | 1.2 |
Financials | 9.9 |
Health Care | 8.2 |
Industrials | 21.6 |
Information Technology | 16.5 |
Materials | 5.2 |
Real Estate | 7.3 |
Telecommunication Services | 0.8 |
Total | 100.0 |
Country breakdown (%) (at June 30, 2017) | |
Australia | 0.5 |
Belgium | 0.8 |
Brazil | 0.5 |
Cambodia | 0.8 |
Canada | 4.7 |
Cayman Islands | 1.9 |
China | 1.4 |
Denmark | 2.2 |
Finland | 1.6 |
France | 1.6 |
Germany | 7.4 |
Hong Kong | 0.9 |
India | 3.6 |
Indonesia | 1.2 |
Ireland | 0.6 |
Italy | 2.6 |
Japan | 19.2 |
Malta | 1.3 |
Mexico | 1.3 |
Netherlands | 1.3 |
New Zealand | 0.5 |
Norway | 1.3 |
Philippines | 0.9 |
Singapore | 0.7 |
South Africa | 1.5 |
South Korea | 4.7 |
Spain | 3.0 |
Sweden | 4.2 |
Switzerland | 0.9 |
Taiwan | 2.9 |
Thailand | 1.5 |
Turkey | 0.6 |
United Kingdom | 16.8 |
United States | 5.1 |
Total | 100.0 |
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Wanger International | Semiannual Report 2017 | 7 |
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January 1, 2017 — June 30, 2017 | |||||||
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 | |
Wanger International | 1,000.00 | 1,000.00 | 1,201.30 | 1,019.40 | 6.09 | 5.59 | 1.11 |
8 | Wanger International | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
Common Stocks 98.6% | ||
Issuer | Shares | Value ($) |
Australia 0.5% | ||
Domino’s Pizza Enterprises Ltd. Pizza delivery stores | 66,417 | 2,657,721 |
Belgium 0.8% | ||
Melexis NV Advanced integrated semiconductors, sensor ICs, and programmable sensor IC systems | 55,000 | 4,516,631 |
Brazil 0.5% | ||
Odontoprev SA Dental benefits company | 775,600 | 2,725,100 |
Cambodia 0.8% | ||
NagaCorp Ltd. Leisure and tourism company | 8,234,000 | 4,324,722 |
Canada 4.9% | ||
AG Growth International, Inc. Manufacturer of Augers & Grain Handling Equipment | 138,688 | 6,172,942 |
Boardwalk Real Estate Investment Trust(a) Real estate company | 106,969 | 3,922,252 |
CAE, Inc. Training solutions based on simulation technology and integrated training services | 290,267 | 5,004,912 |
ShawCor Ltd. Energy services company | 119,000 | 2,429,920 |
Tahoe Resources, Inc. Mining services | 299,590 | 2,582,832 |
Uni-Select, Inc. Wholesale distribution of automotive replacement parts, equipment, tools, and accessories | 129,872 | 3,136,637 |
Vermilion Energy, Inc.(a) Oil and natural gas | 123,526 | 3,918,769 |
Total | 27,168,264 | |
Cayman Islands 1.9% | ||
Netshoes Cayman Ltd.(b) Online sports goods and apparel | 274,806 | 5,229,558 |
Silicon Motion Technology Corp., ADR Semiconductor products | 113,571 | 5,477,529 |
Total | 10,707,087 | |
China 1.5% | ||
51job, Inc., ADR(a),(b) Integrated human resource services | 94,935 | 4,246,443 |
China Medical System Holdings Ltd. Pharmaceutical and medical products | 2,334,000 | 4,035,639 |
Total | 8,282,082 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Denmark 2.3% | ||
SimCorp AS Global provider of highly specialised software for the investment management industry | 163,945 | 9,931,864 |
William Demant Holding AS(b) Hearing aids, audiometers, tympanometers, diagnostic instruments, and wireless communication equipment | 113,172 | 2,929,102 |
Total | 12,860,966 | |
Finland 1.7% | ||
Munksjo OYJ Industrial paper | 165,130 | 3,357,137 |
Tikkurila OYJ Manufactures paint | 274,109 | 5,926,481 |
Total | 9,283,618 | |
France 1.6% | ||
Akka Technologies High-technology engineering consulting services | 55,232 | 2,858,300 |
Elior Group Provides catering, cleaning, and facility management services | 210,000 | 6,101,821 |
Total | 8,960,121 | |
Germany 7.6% | ||
AURELIUS Equity Opportunities SE & Co. KGaA(a) Loans to distressed companies | 147,722 | 7,935,775 |
CTS Eventim AG & Co. KGaA Online ticket sales | 73,793 | 3,263,424 |
Deutsche Beteiligungs AG Private equity company, investing in domestic medium-sized companies | 172,137 | 7,674,524 |
Nemetschek SE Standard software for designing, constructing and managing buildings and real estate | 106,607 | 7,938,827 |
Norma Group SE Plastic and metal-based components and systems in connecting technology | 97,049 | 5,044,532 |
Stroeer SE & Co. KGaA(a) Digital multi-channel media company | 128,804 | 7,714,629 |
Vapiano SE(b) Chain of restaurants | 105,000 | 2,734,306 |
Total | 42,306,017 | |
Hong Kong 1.0% | ||
Vitasoy International Holdings Ltd. Food and beverages | 2,648,000 | 5,450,491 |
Wanger International | Semiannual Report 2017 | 9 |
Table of Contents
June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
India 3.7% | ||
Amara Raja Batteries Ltd.(b) Industrial and automotive batteries | 299,518 | 3,889,709 |
Care Ratings Ltd. Credit rating services | 129,311 | 3,204,259 |
GRUH Finance Ltd. Provides a range of home loans as well as insurance products | 728,016 | 5,013,589 |
TVS Motor Co., Ltd. Motorcycles, mopeds and scooters | 630,627 | 5,354,182 |
United Breweries Ltd. Alcoholic beverages | 250,689 | 3,030,307 |
Total | 20,492,046 | |
Indonesia 1.3% | ||
PT Link Net Tbk High-speed internet connection through fiber optic lines | 7,468,900 | 2,900,136 |
PT Media Nusantara Citra Tbk(b) Integrated media company in Southeast Asia | 21,754,500 | 2,999,029 |
PT Tower Bersama Infrastructure Tbk Telecommunication infrastructure services to Indonesian wireless carriers | 2,509,950 | 1,273,740 |
Total | 7,172,905 | |
Ireland 0.6% | ||
UDG Healthcare PLC Commercialisation solutions for health care companies | 311,000 | 3,507,835 |
Italy 2.6% | ||
Brembo SpA Braking systems and components | 610,805 | 8,936,650 |
Industria Macchine Automatiche SpA Packaging machinery for the food, pharmaceuticals, and cosmetics industries | 63,500 | 5,834,757 |
Total | 14,771,407 | |
Japan 19.8% | ||
Aeon Credit Service Co., Ltd. Credit card company | 198,300 | 4,208,345 |
Aeon Mall Co., Ltd. Large-scale shopping malls | 420,700 | 8,311,748 |
Aica Kogyo Co., Ltd. Manufactures adhesives, melamine boards, and housing materials | 138,700 | 4,235,247 |
Asahi Intecc Co., Ltd. Manufactures medical tools and stainless wire rope | 96,800 | 4,404,800 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
CyberAgent, Inc. Operates websites, internet advertising agency and creates PC and mobile contents | 155,500 | 4,829,298 |
Daiseki Co., Ltd. Waste Disposal & Recycling | 153,800 | 3,421,991 |
DIP Corp. Matching services through Internet for job agencies and job seekers | 26,100 | 530,947 |
Glory Ltd. Vending machines, coin-operated lockers, money handling machines, and data processing terminals | 127,500 | 4,187,549 |
Hikari Tsushin, Inc. Distribution network, telecommunication, office automation equipment, in-house products and individual insurance plans | 63,800 | 6,721,700 |
Istyle, Inc.(a) Cosmetics Review Portal & Retailer | 543,900 | 4,309,936 |
Milbon Co., Ltd. Hair Products for Salons | 115,450 | 6,491,252 |
MonotaRO Co., Ltd Machine tools, engine parts, and factory consumable goods | 151,500 | 4,896,079 |
Nakanishi, Inc. Dental Tools & Machinery | 78,600 | 3,187,943 |
NGK Spark Plug Co., Ltd. Spark plugs for automobiles, motorcycles, agricultural machinery, ships, and aircrafts | 178,800 | 3,829,988 |
Nihon M&A Center, Inc. Provides M&A advisory services to small and medium-sized enterprises | 71,800 | 2,628,198 |
Nippon Shinyaku Co., Ltd. Pharmaceutical & Orphan Drug Provider | 48,300 | 3,091,889 |
Nissan Chemical Industries Ltd. Variety of chemical products | 113,000 | 3,744,469 |
NOF Corp. Diversified chemical producer | 357,000 | 4,556,640 |
OSG Corp. Manufactures machine tool equipment | 125,800 | 2,568,548 |
Otsuka Corp. Computer information system and software | 67,100 | 4,173,891 |
Persol Holdings Co., Ltd. Human resource solutions | 258,000 | 4,847,355 |
Seria Co., Ltd. Operates 100 yen chain stores | 68,400 | 3,304,545 |
Seven Bank Ltd. Banking services through Automated Teller Machine (ATM) | 1,332,800 | 4,778,696 |
Sohgo Security Services Co., Ltd. Around the clock security services | 121,500 | 5,484,522 |
10 | Wanger International | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Ushio, Inc. Lamps and optical equipment | 263,100 | 3,320,802 |
Yonex Co., Ltd.(a) Branded Sporting Goods Manufacturer | 461,600 | 4,174,946 |
Total | 110,241,324 | |
Malta 1.4% | ||
Kindred Group PLC Online gambling services | 672,727 | 7,609,871 |
Mexico 1.3% | ||
Grupo Aeroportuario del Centro Norte SAB de CV Operates international airports in the northern and central regions of Mexico | 684,600 | 4,123,349 |
Grupo Aeroportuario del Sureste SAB de CV, ADR Operates airports in Mexico | 14,657 | 3,083,833 |
Total | 7,207,182 | |
Netherlands 1.4% | ||
Aalberts Industries NV Industrial services and flow control systems | 190,110 | 7,569,294 |
New Zealand 0.6% | ||
Restaurant Brands New Zealand Ltd. | 671,757 | 3,081,799 |
Norway 1.3% | ||
Atea ASA Nordic and Baltic supplier of IT infrastructure | 554,819 | 7,442,998 |
Philippines 1.0% | ||
Melco Resorts And Entertainment Philippines Corp.(b) Owns and operates casinos | 13,321,800 | 2,308,162 |
Puregold Price Club, Inc. Wholesale and retail stores, including supermarkets | 3,580,200 | 3,160,878 |
Total | 5,469,040 | |
Singapore 0.7% | ||
Mapletree Commercial Trust Singapore-focused real estate investment trust | 3,542,707 | 4,104,316 |
South Africa 1.5% | ||
AECI Ltd. Commercial explosives, synthetic fibers, industry chemicals and fertilizers | 340,357 | 2,765,002 |
Clicks Group Ltd. Owns and operates chains of retail stores | 301,392 | 3,225,292 |
Famous Brands Ltd. Food and beverage company | 248,427 | 2,392,647 |
Total | 8,382,941 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
South Korea 4.8% | ||
GS Retail Co., Ltd. Chain of retail stores | 23,485 | 1,058,947 |
Koh Young Technology, Inc. 3D measurement and inspection equipment for testing various machineries | 154,484 | 8,102,779 |
Korea Investment Holdings Co., Ltd. Financial holding company | 91,812 | 5,626,030 |
Medy-Tox, Inc. Biopharmaceutical products using clostridium botulinum | 11,512 | 5,637,420 |
Modetour Network, Inc. Travel services | 228,504 | 6,320,982 |
Total | 26,746,158 | |
Spain 3.1% | ||
Bolsas y Mercados Españoles SHMSF SA Barcelona, Bilbao, Madrid, and Valencia Stock Exchanges | 85,573 | 3,089,961 |
Hispania Activos Inmobiliarios SOCIMI SA Invests in residential apartments, offices and hotels | 349,313 | 5,775,058 |
Prosegur Cia de Seguridad SA, Registered Shares Security and transportation services | 577,000 | 3,749,826 |
Viscofan SA Artificial casings made of cellulose, collagen, and plastic for use in the meat industry | 81,464 | 4,819,683 |
Total | 17,434,528 | |
Sweden 4.3% | ||
Byggmax Group AB Discount provider of building materials | 639,524 | 4,649,524 |
NetEnt AB Computer gaming software | 349,310 | 3,053,721 |
Recipharm AB, B Shares(b) Contract development and manufacture of pharmaceuticals | 405,917 | 5,926,358 |
Sweco AB, Class B Consulting company specializing in engineering, environmental technology, and architecture | 257,448 | 6,365,380 |
Trelleborg AB, Class B Manufactures and distributes industrial products | 185,741 | 4,239,676 |
Total | 24,234,659 | |
Switzerland 1.0% | ||
Inficon Holding AG Vacuum instruments used to monitor and control production processes | 10,893 | 5,367,549 |
Wanger International | Semiannual Report 2017 | 11 |
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June 30, 2017 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Taiwan 3.0% | ||
Basso Industry Corp. Pneumatic nailers and staplers | 1,428,000 | 3,990,565 |
Silergy Corp. High performance analog integrated circuits | 426,000 | 8,202,594 |
Voltronic Power Technology Corp. Uninterruptible power supply products, inverters, multiple surface mounted devices and other power products | 283,395 | 4,664,474 |
Total | 16,857,633 | |
Thailand 1.5% | ||
Beauty Community PCL(b) Cosmetic and beauty products | 9,168,600 | 2,911,726 |
Home Product Center PCL, Foreign Registered Shares Building materials and home improvement products | 10,108,900 | 2,854,472 |
Tisco Financial Group PCL Bank holding company | 1,285,400 | 2,874,566 |
Total | 8,640,764 | |
Turkey 0.6% | ||
Logo Yazilim Sanayi Ve Ticaret AS(b) Enterprise resource planning software | 189,541 | 3,178,365 |
United Kingdom 17.3% | ||
Assura PLC Primary healthcare property group | 4,923,749 | 4,091,453 |
Big Yellow Group PLC Self-storage company | 939,551 | 9,691,845 |
Connect Group PLC Distribution of newspapers and magazines, and books | 1,746,570 | 2,564,859 |
Domino’s Pizza Group PLC Pizza delivery stores | 1,015,100 | 3,885,701 |
DS Smith PLC Provides corrugated packaging services | 938,422 | 5,788,564 |
Halma PLC Products that detect hazards and protect assets and people in public and commercial buildings | 686,477 | 9,835,119 |
Hastings Group Holdings PLC General insurance services to the automobile and home insurance products | 2,425,975 | 9,918,331 |
JD Sports Fashion PLC Brand-name sports and leisure wear | 546,000 | 2,488,981 |
LivaNova PLC(b) Medical technology focusing on neuromodulation, cardiac surgery and rhythm management | 92,899 | 5,686,348 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Ocado Group PLC(a),(b) Distributes a wide range of retail consumer products | 933,188 | 3,517,455 |
Polypipe Group PLC Plastic piping systems | 1,590,565 | 7,919,845 |
PureCircle Ltd.(a),(b) Natural Sweeteners | 719,896 | 3,562,987 |
Rightmove PLC Website that lists properties across Britain | 154,000 | 8,524,533 |
Shaftesbury PLC Real estate company | 330,621 | 4,187,752 |
Spirax-Sarco Engineering PLC Consultation, service and products for the control and efficient management of steam and industrial fluids | 122,129 | 8,510,078 |
WH Smith PLC Retails books, magazines, newspapers, and periodicals | 277,743 | 6,203,948 |
Total | 96,377,799 | |
United States 0.7% | ||
Ultragenyx Pharmaceutical, Inc.(b) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 65,262 | 4,053,423 |
Total Common Stocks (Cost: $420,678,581) | 549,186,656 | |
Securities Lending Collateral 3.0% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 0.910%(c),(d) | 17,042,345 | 17,042,345 |
Total Securities Lending Collateral (Cost: $17,042,345) | 17,042,345 | |
Money Market Funds 1.5% | ||
JPMorgan U.S. Government Money Market Fund, IM Shares, 0.879% (c) | 8,346,070 | 8,346,070 |
Total Money Market Funds (Cost: $8,346,070) | 8,346,070 | |
Total Investments (Cost: $446,066,996) | 574,575,071 | |
Obligation to Return Collateral for Securities Loaned | (17,042,345) | |
Other Assets & Liabilities, Net | (385,244) | |
Net Assets | $557,147,482 |
12 | Wanger International | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
(a) | All or a portion of this security was on loan at June 30, 2017. The total market value of securities on loan at June 30, 2017 was $16,086,060. |
(b) | Non-income producing security. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2017. |
(d) | Investment made with cash collateral received from securities lending activity. |
ADR | American Depositary Receipt |
• | Level 1 – quoted prices in active markets for identical securities |
• | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
• | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
Investments | ||||
Common Stocks | ||||
Australia | — | 2,657,721 | — | 2,657,721 |
Belgium | — | 4,516,631 | — | 4,516,631 |
Brazil | 2,725,100 | — | — | 2,725,100 |
Cambodia | — | 4,324,722 | — | 4,324,722 |
Canada | 27,168,264 | — | — | 27,168,264 |
Cayman Islands | 10,707,087 | — | — | 10,707,087 |
China | 4,246,443 | 4,035,639 | — | 8,282,082 |
Denmark | — | 12,860,966 | — | 12,860,966 |
Finland | — | 9,283,618 | — | 9,283,618 |
France | — | 8,960,121 | — | 8,960,121 |
Germany | — | 42,306,017 | — | 42,306,017 |
Hong Kong | — | 5,450,491 | — | 5,450,491 |
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Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
India | — | 20,492,046 | — | 20,492,046 |
Indonesia | — | 7,172,905 | — | 7,172,905 |
Ireland | — | 3,507,835 | — | 3,507,835 |
Italy | — | 14,771,407 | — | 14,771,407 |
Japan | — | 110,241,324 | — | 110,241,324 |
Malta | — | 7,609,871 | — | 7,609,871 |
Mexico | 7,207,182 | — | — | 7,207,182 |
Netherlands | — | 7,569,294 | — | 7,569,294 |
New Zealand | — | 3,081,799 | — | 3,081,799 |
Norway | — | 7,442,998 | — | 7,442,998 |
Philippines | — | 5,469,040 | — | 5,469,040 |
Singapore | — | 4,104,316 | — | 4,104,316 |
South Africa | — | 8,382,941 | — | 8,382,941 |
South Korea | — | 26,746,158 | — | 26,746,158 |
Spain | — | 17,434,528 | — | 17,434,528 |
Sweden | — | 24,234,659 | — | 24,234,659 |
Switzerland | — | 5,367,549 | — | 5,367,549 |
Taiwan | — | 16,857,633 | — | 16,857,633 |
Thailand | — | 8,640,764 | — | 8,640,764 |
Turkey | — | 3,178,365 | — | 3,178,365 |
United Kingdom | 5,686,348 | 90,691,451 | — | 96,377,799 |
United States | 4,053,423 | — | — | 4,053,423 |
Total Common Stocks | 61,793,847 | 487,392,809 | — | 549,186,656 |
Securities Lending Collateral | 17,042,345 | — | — | 17,042,345 |
Money Market Funds | 8,346,070 | — | — | 8,346,070 |
Total Investments | 87,182,262 | 487,392,809 | — | 574,575,071 |
14 | Wanger International | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
Assets | |
Investments, at cost | |
Unaffiliated issuers, at cost | $446,066,996 |
Total investments, at cost | 446,066,996 |
Investments, at value | |
Unaffiliated issuers, at value (including securities on loan: $16,086,060) | 574,575,071 |
Total investments, at value | 574,575,071 |
Foreign currency (identified cost $8,959) | 9,025 |
Receivable for: | |
Investments sold | 1,496,588 |
Capital shares sold | 82,444 |
Regulatory settlements (Note 6) | 131,912 |
Dividends | 548,902 |
Securities lending income | 59,026 |
Foreign tax reclaims | 370,160 |
Prepaid expenses | 3,861 |
Trustees’ deferred compensation plan | 180,916 |
Total assets | 577,457,905 |
Liabilities | |
Due to custodian | 8 |
Due upon return of securities on loan | 17,042,345 |
Payable for: | |
Investments purchased | 506,468 |
Capital shares purchased | 2,430,118 |
Investment advisory fee | 14,367 |
Transfer agent fees | 2 |
Administration fees | 765 |
Compensation of chief compliance officer | 23 |
Other expenses | 135,411 |
Trustees’ deferred compensation plan | 180,916 |
Total liabilities | 20,310,423 |
Net assets applicable to outstanding capital stock | $557,147,482 |
Represented by | |
Paid in capital | 391,032,043 |
Undistributed net investment income | 1,770,807 |
Accumulated net realized gain | 35,830,215 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 128,508,075 |
Foreign currency translations | 6,342 |
Total - representing net assets applicable to outstanding capital stock | $557,147,482 |
Shares outstanding | 19,874,639 |
Net asset value per share | 28.03 |
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Six Months Ended June 30, 2017 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $7,147,975 |
Interest | 2 |
Income from securities lending — net | 281,576 |
Foreign taxes withheld | (722,588) |
Total income | 6,706,965 |
Expenses: | |
Investment advisory fee | 2,523,465 |
Transfer agent fees | 320 |
Administration fees | 133,569 |
Trustees’ fees | 21,148 |
Custodian fees | 84,689 |
Printing and postage fees | 97,862 |
Audit fees | 39,359 |
Legal fees | 49,749 |
Compensation of chief compliance officer | 753 |
Other | 4,922 |
Total expenses | 2,955,836 |
Net investment income | 3,751,129 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 38,056,239 |
Foreign currency translations | (60,459) |
Net realized gain | 37,995,780 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 55,738,148 |
Foreign currency translations | 38,410 |
Net change in unrealized appreciation (depreciation) | 55,776,558 |
Net realized and unrealized gain | 93,772,338 |
Net increase in net assets resulting from operations | $97,523,467 |
16 | Wanger International | Semiannual Report 2017 |
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Six Months Ended June 30, 2017 (Unaudited) | Year Ended December 31, 2016 | |
Operations | ||
Net investment income | $3,751,129 | $6,634,683 |
Net realized gain | 37,995,780 | 6,134,947 |
Net change in unrealized appreciation (depreciation) | 55,776,558 | (19,665,305) |
Net increase (decrease) in net assets resulting from operations | 97,523,467 | (6,895,675) |
Distributions to shareholders | ||
Net investment income | (3,418,170) | (6,158,671) |
Net realized gains | (4,004,590) | (44,383,757) |
Total distributions to shareholders | (7,422,760) | (50,542,428) |
Decrease in net assets from capital stock activity | (27,748,039) | (34,395,890) |
Total increase (decrease) in net assets | 62,352,668 | (91,833,993) |
Net assets at beginning of period | 494,794,814 | 586,628,807 |
Net assets at end of period | $557,147,482 | $494,794,814 |
Undistributed net investment income | $1,770,807 | $1,437,848 |
Six Months Ended | Year Ended | |||
June 30, 2017 (Unaudited) | December 31, 2016 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 385,234 | 9,932,697 | 374,135 | 9,287,190 |
Distributions reinvested | 261,273 | 7,422,760 | 2,014,153 | 50,542,428 |
Redemptions | (1,703,640) | (45,103,496) | (3,745,214) | (94,225,508) |
Total net decrease | (1,057,133) | (27,748,039) | (1,356,926) | (34,395,890) |
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Six Months Ended June 30, 2017 (Unaudited) | Year Ended December 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Per share data | ||||||
Net asset value, beginning of period | $23.64 | $26.32 | $29.07 | $34.55 | $31.19 | $28.79 |
Income from investment operations: | ||||||
Net investment income | 0.18 | 0.31 | 0.31 | 0.36 | 0.39 | 0.46 |
Net realized and unrealized gain (loss) | 4.58 | (0.56) | (0.09) | (1.56) | 6.18 | 5.27 |
Total from investment operations | 4.76 | (0.25) | 0.22 | (1.20) | 6.57 | 5.73 |
Less distributions to shareholders from: | ||||||
Net investment income | (0.17) | (0.29) | (0.41) | (0.48) | (0.88) | (0.38) |
Net realized gains | (0.20) | (2.14) | (2.57) | (3.80) | (2.33) | (2.95) |
Total distributions to shareholders | (0.37) | (2.43) | (2.98) | (4.28) | (3.21) | (3.33) |
Proceeds from regulatory settlements | — | — | 0.01 | — | — | — |
Net asset value, end of period | $28.03 | $23.64 | $26.32 | $29.07 | $34.55 | $31.19 |
Total return | 20.13% | (1.41)% | 0.10% (a) | (4.40)% | 22.37% | 21.56% (b) |
Ratios to average net assets | ||||||
Total gross expenses(c) | 1.11% (d) | 1.08% (e) | 1.12% | 1.05% | 1.07% | 1.08% |
Total net expenses(c) | 1.11% (d) | 1.08% (e) | 1.12% | 1.05% | 1.07% | 1.05% (f) |
Net investment income | 1.41% (d) | 1.23% | 1.11% | 1.10% | 1.19% | 1.51% |
Supplemental data | ||||||
Portfolio turnover | 29% | 56% | 53% | 28% | 44% | 34% |
Net assets, end of period (in thousands) | $557,147 | $494,795 | $586,629 | $667,023 | $784,977 | $702,667 |
Notes to Financial Highlights | |
(a) | The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.02%. |
(b) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(c) | 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, if any. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(d) | Annualized. |
(e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by 0.05%. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
(f) | The benefits derived from custody fees paid indirectly had an impact of 0.01%. |
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Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger International | |||||
Securities lending transactions | |||||
Equity securities | $16,086,060 | $— | $— | $— | $16,086,060 |
Gross amount of recognized liabilities for securities lending (collateral received) | 17,042,345 | ||||
Amounts due to counterparty | $956,285 |
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Goldman Sachs ($) | |||||||
Liabilities | |||||||
Collateral on Securities loaned | 17,042,345 | ||||||
Total Liabilities | 17,042,345 | ||||||
Total Financial and Derivative Net Assets | (17,042,345) | ||||||
Financial Instruments | 16,086,060 | ||||||
Net Amount (a) | (956,285) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
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Average daily net assets | Annual fee rate |
Up to $100 million | 1.10% |
$100 million to $250 million | 0.95% |
$250 million to $500 million | 0.90% |
$500 million to $1 billion | 0.80% |
$1 billion and over | 0.72% |
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
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Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
446,067,000 | 135,322,000 | (6,814,000) | 128,508,000 |
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Average annual total returns (%) (for the period ended June 30, 2017) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger Select | 02/01/99 | 11.78 | 26.91 | 13.97 | 5.64 | 10.38 | |
Russell 2500 Growth Index | 10.63 | 21.44 | 14.33 | 8.18 | 7.80 |
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Top ten holdings (%) (at June 30, 2017) | |
HealthSouth Corp. Inpatient rehabilitative healthcare services | 5.3 |
Wabtec Corp. Technology products and services for the rail industry | 4.6 |
JB Hunt Transport Services, Inc. Logistics services | 4.5 |
Vail Resorts, Inc. Operates resorts globally | 4.4 |
Snap-On, Inc. Tool and equipment solutions | 4.4 |
Align Technology, Inc. Designs, manufactures, and markets the Invisalign System | 4.4 |
GoDaddy, Inc., Class A Cloud-based web platform for small businesses, web design professionals and individuals | 4.3 |
AMERCO Rental of trucks, trailers, and self storage space, as well as property and casualty and life insurance products | 4.0 |
Oshkosh Corp. Fire and emergency apparatuses and specialty commercial, and military trucks | 3.8 |
LKQ Corp. Automotive products and services | 3.8 |
Portfolio breakdown (%) (at June 30, 2017) | |
Common Stocks | 97.4 |
Money Market Funds | 2.6 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2017) | |
Consumer Discretionary | 18.3 |
Financials | 13.1 |
Health Care | 17.2 |
Industrials | 26.9 |
Information Technology | 14.4 |
Materials | 3.4 |
Real Estate | 6.7 |
Total | 100.0 |
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January 1, 2017 — June 30, 2017 | |||||||
Account value at the beginning of the period ($) | 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 | |
Wanger Select | 1,000.00 | 1,000.00 | 1,117.80 | 1,021.14 | 4.01 | 3.83 | 0.76 |
Wanger Select | Semiannual Report 2017 | 7 |
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June 30, 2017 (Unaudited)
Common Stocks 96.9% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 17.8% | ||
Auto Components 2.3% | ||
LCI Industries Recreational vehicles and equipment | 29,055 | 2,975,233 |
Distributors 3.7% | ||
LKQ Corp.(a) Automotive products and services | 144,500 | 4,761,275 |
Hotels, Restaurants & Leisure 6.9% | ||
Papa John’s International, Inc. Pizza delivery and carry-out restaurants | 47,728 | 3,424,961 |
Vail Resorts, Inc. Operates resorts globally | 27,740 | 5,626,504 |
Total | 9,051,465 | |
Household Durables 1.4% | ||
iRobot Corp.(a) Manufactures robots for cleaning | 21,113 | 1,776,448 |
Media 3.5% | ||
Liberty Global PLC, Class A(a) Broadband, distribution, and content companies | 141,840 | 4,555,901 |
Total Consumer Discretionary | 23,120,322 | |
Financials 12.6% | ||
Banks 3.4% | ||
SVB Financial Group(a) Holding company for Silicon Valley Bank | 24,894 | 4,376,116 |
Capital Markets 6.8% | ||
Eaton Vance Corp. Creates, markets, and manages mutual funds | 95,153 | 4,502,640 |
Lazard Ltd., Class A Corporate Advisory & Asset Management | 95,382 | 4,419,048 |
Total | 8,921,688 | |
Consumer Finance 2.4% | ||
FirstCash, Inc. Owns and operates pawn stores | 54,242 | 3,162,309 |
Total Financials | 16,460,113 | |
Health Care 16.6% | ||
Biotechnology 0.6% | ||
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 14,154 | 879,105 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care Equipment & Supplies 10.8% | ||
Align Technology, Inc.(a) Designs, manufactures, and markets the Invisalign System | 36,651 | 5,502,048 |
LivaNova PLC(a) Medical technology focusing on neuromodulation, cardiac surgery and rhythm management | 63,345 | 3,877,347 |
Natus Medical, Inc.(a) Medical device company that develops, manufactures, and markets screening products | 125,109 | 4,666,566 |
Total | 14,045,961 | |
Health Care Providers & Services 5.2% | ||
HealthSouth Corp. Inpatient rehabilitative healthcare services | 139,197 | 6,737,135 |
Total Health Care | 21,662,201 | |
Industrials 26.1% | ||
Machinery 17.9% | ||
Middleby Corp. (The)(a) Equipment for use in cooking and preparing food | 35,972 | 4,370,958 |
Nordson Corp. Systems that apply adhesives, sealants, and coatings to products during manufacturing | 22,531 | 2,733,461 |
Oshkosh Corp. Fire and emergency apparatuses and specialty commercial, and military trucks | 70,105 | 4,828,832 |
Snap-On, Inc. Tool and equipment solutions | 34,859 | 5,507,722 |
Wabtec Corp. Technology products and services for the rail industry | 63,656 | 5,824,524 |
Total | 23,265,497 | |
Road & Rail 8.2% | ||
AMERCO Rental of trucks, trailers, and self storage space, as well as property and casualty and life insurance products | 13,686 | 5,009,897 |
JB Hunt Transport Services, Inc. Logistics services | 62,019 | 5,667,296 |
Total | 10,677,193 | |
Total Industrials | 33,942,690 |
8 | Wanger Select | Semiannual Report 2017 |
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Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Information Technology 14.0% | ||
Internet Software & Services 10.9% | ||
GoDaddy, Inc., Class A(a) Cloud-based web platform for small businesses, web design professionals and individuals | 127,034 | 5,388,782 |
SPS Commerce, Inc.(a) On-demand supply chain management solutions through an online hosted software suite | 64,885 | 4,137,068 |
VeriSign, Inc.(a) Domain names and Internet security services | 49,531 | 4,604,402 |
Total | 14,130,252 | |
Software 3.1% | ||
ANSYS, Inc.(a) Software solutions for design analysis and optimization | 33,430 | 4,067,762 |
Total Information Technology | 18,198,014 | |
Materials 3.3% | ||
Chemicals 3.3% | ||
Axalta Coating Systems Ltd.(a) Coating systems | 51,091 | 1,636,956 |
Celanese Corp., Class A Global integrated producer of chemicals and advanced materials | 27,800 | 2,639,332 |
Total | 4,276,288 | |
Total Materials | 4,276,288 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Real Estate 6.5% | ||
Equity Real Estate Investment Trusts (REITS) 3.0% | ||
Education Realty Trust, Inc. Self-managed and self-advised real estate investment trust | 100,810 | 3,906,387 |
Real Estate Management & Development 3.5% | ||
Jones Lang LaSalle, Inc. Real estate and investment management services | 36,107 | 4,513,375 |
Total Real Estate | 8,419,762 | |
Total Common Stocks (Cost: $100,182,982) | 126,079,390 | |
Money Market Funds 2.6% | ||
Shares | Value ($) | |
JPMorgan U.S. Government Money Market Fund, IM Shares, 0.879% (b) | 3,341,679 | 3,341,679 |
Total Money Market Funds (Cost: $3,341,679) | 3,341,679 | |
Total Investments (Cost $103,524,661) | 129,421,069 | |
Other Assets & Liabilities, Net | 645,962 | |
Net Assets | $130,067,031 |
(a) | Non-income producing security. |
(b) | The rate shown is the seven-day current annualized yield at June 30, 2017. |
• | Level 1 – quoted prices in active markets for identical securities |
• | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
• | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
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other things: circumstances under which market quotations will be deemed readily available; selection of third party pricing vendors; appropriate pricing methodologies; events that require fair valuation and fair value techniques; circumstances under which securities will be deemed to pose a potential for stale pricing, including when securities are illiquid, restricted, or in default; and certain delegations of authority to determine fair values to the Fund’s investment manager. The Committee may also meet to discuss additional valuation matters, which may include review of back-testing results, review of time-sensitive information or approval of other valuation related actions, and to review the appropriateness of the Policies.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
Investments | ||||
Common Stocks | ||||
Consumer Discretionary | 23,120,322 | — | — | 23,120,322 |
Financials | 16,460,113 | — | — | 16,460,113 |
Health Care | 21,662,201 | — | — | 21,662,201 |
Industrials | 33,942,690 | — | — | 33,942,690 |
Information Technology | 18,198,014 | — | — | 18,198,014 |
Materials | 4,276,288 | — | — | 4,276,288 |
Real Estate | 8,419,762 | — | — | 8,419,762 |
Total Common Stocks | 126,079,390 | — | — | 126,079,390 |
Money Market Funds | 3,341,679 | — | — | 3,341,679 |
Total Investments | 129,421,069 | — | — | 129,421,069 |
10 | Wanger Select | Semiannual Report 2017 |
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June 30, 2017 (Unaudited)
Assets | |
Investments, at cost | |
Unaffiliated issuers, at cost | $103,524,661 |
Total investments, at cost | 103,524,661 |
Investments, at value | |
Unaffiliated issuers, at value | 129,421,069 |
Total investments, at value | 129,421,069 |
Receivable for: | |
Investments sold | 639,848 |
Capital shares sold | 51,754 |
Dividends | 62,618 |
Prepaid expenses | 883 |
Total assets | 130,176,172 |
Liabilities | |
Payable for: | |
Capital shares purchased | 18,872 |
Investment advisory fee | 2,129 |
Transfer agent fees | 1 |
Administration fees | 177 |
Trustees’ fees | 40,758 |
Audit fees | 16,299 |
Printing and postage fees | 19,340 |
Other expenses | 11,565 |
Total liabilities | 109,141 |
Net assets applicable to outstanding capital stock | $130,067,031 |
Represented by | |
Paid in capital | 97,318,323 |
Undistributed net investment income | 120,030 |
Accumulated net realized gain | 6,732,270 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 25,896,408 |
Total - representing net assets applicable to outstanding capital stock | $130,067,031 |
Shares outstanding | 7,060,662 |
Net asset value per share | 18.42 |
Wanger Select | Semiannual Report 2017 | 11 |
Table of Contents
Six Months Ended June 30, 2017 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $653,608 |
Income from securities lending — net | 264 |
Total income | 653,872 |
Expenses: | |
Investment advisory fee | 514,189 |
Transfer agent fees | 115 |
Administration fees | 32,137 |
Trustees’ fees | 6,090 |
Custodian fees | 1,843 |
Printing and postage fees | 20,907 |
Audit fees | 15,034 |
Legal fees | 15,159 |
Compensation of chief compliance officer | 198 |
Other | 6,824 |
Total expenses | 612,496 |
Advisory fee waiver | (128,547) |
Total net expenses | 483,949 |
Net investment income | 169,923 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 6,891,276 |
Net realized gain | 6,891,276 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 7,269,121 |
Net change in unrealized appreciation (depreciation) | 7,269,121 |
Net realized and unrealized gain | 14,160,397 |
Net increase in net assets resulting from operations | $14,330,320 |
12 | Wanger Select | Semiannual Report 2017 |
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Six Months Ended June 30, 2017 (Unaudited) | Year Ended December 31, 2016 | |
Operations | ||
Net investment income | $169,923 | $213,763 |
Net realized gain | 6,891,276 | 17,763,750 |
Net change in unrealized appreciation (depreciation) | 7,269,121 | (2,720,919) |
Net increase in net assets resulting from operations | 14,330,320 | 15,256,594 |
Distributions to shareholders | ||
Net investment income | — | (209,776) |
Net realized gains | (17,779,427) | (39,392,500) |
Total distributions to shareholders | (17,779,427) | (39,602,276) |
Increase in net assets from capital stock activity | 8,016,411 | 14,004,583 |
Total increase (decrease) in net assets | 4,567,304 | (10,341,099) |
Net assets at beginning of period | 125,499,727 | 135,840,826 |
Net assets at end of period | $130,067,031 | $125,499,727 |
Undistributed (excess of distributions over) net investment income | $120,030 | $(49,893) |
Six Months Ended | Year Ended | |||
June 30, 2017 (Unaudited) | December 31, 2016 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 87,072 | 1,721,436 | 122,251 | 2,468,559 |
Distributions reinvested | 979,583 | 17,779,427 | 2,263,039 | 39,602,276 |
Redemptions | (576,922) | (11,484,452) | (1,433,386) | (28,066,252) |
Total net increase | 489,733 | 8,016,411 | 951,904 | 14,004,583 |
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Six Months Ended June 30, 2017 (Unaudited) | Year Ended December 31, | |||||
2016 | 2015 | 2014 | 2013 | 2012 | ||
Per share data | ||||||
Net asset value, beginning of period | $19.10 | $24.18 | $32.99 | $36.41 | $27.54 | $23.35 |
Income from investment operations: | ||||||
Net investment income | 0.03 | 0.03 | (0.02) | (0.07) | (0.05) | 0.16 |
Net realized and unrealized gain | 2.18 | 2.48 | 0.69 | 1.07 | 9.46 | 4.15 |
Total from investment operations | 2.21 | 2.51 | 0.67 | 1.00 | 9.41 | 4.31 |
Less distributions to shareholders from: | ||||||
Net investment income | — | (0.03) | (0.00) (a) | — | (0.09) | (0.12) |
Net realized gains | (2.89) | (7.56) | (9.48) | (4.42) | (0.45) | — |
Total distributions to shareholders | (2.89) | (7.59) | (9.48) | (4.42) | (0.54) | (0.12) |
Net asset value, end of period | $18.42 | $19.10 | $24.18 | $32.99 | $36.41 | $27.54 |
Total return | 11.78% (b) | 13.31% (b) | 0.26% (b) | 3.17% | 34.58% | 18.46% |
Ratios to average net assets | ||||||
Total gross expenses(c) | 0.96% (d) | 0.93% (e) | 0.98% | 0.93% (f) | 0.93% | 0.92% |
Total net expenses(c) | 0.76% (d) | 0.73% (e) | 0.85% | 0.93% (f) | 0.93% | 0.91% (g) |
Net investment income | 0.27% (d) | 0.17% | (0.06)% | (0.20)% | (0.15)% | 0.60% |
Supplemental data | ||||||
Portfolio turnover | 31% | 93% | 59% | 18% | 24% | 20% |
Net assets, end of period (in thousands) | $130,067 | $125,500 | $135,841 | $191,647 | $257,911 | $235,155 |
Notes to Financial Highlights | |
(a) | Rounds to zero. |
(b) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(c) | 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, if any. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(d) | Annualized. |
(e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by 0.03%. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
(f) | Ratios include line of credit interest expense which is less than 0.01%. |
(g) | The benefits derived from custody fees paid indirectly had an impact of less than 0.01%. |
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June 30, 2017 (Unaudited)
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June 30, 2017 (Unaudited)
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June 30, 2017 (Unaudited)
Average daily net assets | Annual fee rate |
Up to $500 million | 0.80% |
$500 million and over | 0.78% |
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June 30, 2017 (Unaudited)
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
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June 30, 2017 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
103,525,000 | 26,508,000 | (612,000) | 25,896,000 |
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June 30, 2017 (Unaudited)
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![](https://capedge.com/proxy/N-CSRS/0001193125-17-274263/g437936img345910fd2.jpg)
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Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a) | The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. |
(b) | Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11. Controls and Procedures.
(a) | The registrant’s principal executive officer and principal financial officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a |
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date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that material information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
(b) | There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable for semiannual reports.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
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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) | Wanger Advisors Trust |
By (Signature and Title) | /s/ P. Zachary Egan | |
P. Zachary Egan, President and Principal Executive Officer |
Date | August 18, 2017 |
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/ P. Zachary Egan | |
P. Zachary Egan, President and Principal Executive Officer |
Date | August 18, 2017 |
By (Signature and Title) | /s/ John M. Kunka | |
John M. Kunka, Treasurer and Principal Accounting and Financial Officer |
Date | August 18, 2017 |