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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)
Ryan C. Larrenaga
c/o Columbia Management
Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
Alan Berkshire
Columbia Acorn Trust
227 West Monroe Street, Suite 3000
Chicago, Illinois 60606
Mary C. Moynihan
Perkins Coie LLP
700 13th Street, NW
Suite 600
Washington, DC 20005
(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, 2018
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, 2018
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Average annual total returns (%) (for the period ended June 30, 2018) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger USA | 05/03/95 | 15.60 | 23.99 | 14.30 | 11.32 | 12.28 | |
Russell 2000 Growth Index | 9.70 | 21.86 | 13.65 | 11.24 | - |
Wanger USA | Semiannual Report 2018 | 3 |
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Top ten holdings (%) (at June 30, 2018) | |
First Busey Corp. Multi-bank holding company | 1.6 |
Houlihan Lokey, Inc. Investment bank | 1.6 |
HealthEquity, Inc. Technology-enabled services platforms for consumers to make healthcare saving and spending decisions | 1.6 |
Dave & Buster’s Entertainment, Inc. Venues that combine dining and entertainment for adults and families | 1.5 |
Cabot Microelectronics Corp. Slurries used in chemical mechanical planarization | 1.5 |
ICF International, Inc. Management, technology, policy consulting, and implementation services | 1.5 |
Orion Engineered Carbons SA Global supplier of Carbon Black | 1.5 |
Texas Roadhouse, Inc. Moderately priced, full service restaurant chain | 1.4 |
iRhythm Technologies, Inc. Medical instruments | 1.4 |
Extended Stay America, Inc. Hotels and motels | 1.4 |
Portfolio breakdown (%) (at June 30, 2018) | |
Common Stocks | 92.5 |
Limited Partnerships | 0.5 |
Money Market Funds | 4.4 |
Securities Lending Collateral | 2.6 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2018) | |
Consumer Discretionary | 17.6 |
Consumer Staples | 5.0 |
Energy | 1.5 |
Financials | 14.4 |
Health Care | 26.5 |
Industrials | 10.1 |
Information Technology | 18.1 |
Materials | 2.9 |
Real Estate | 3.4 |
Telecommunication Services | 0.5 |
Total | 100.0 |
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January 1, 2018 — June 30, 2018 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger USA | 1,000.00 | 1,000.00 | 1,156.00 | 1,020.04 | 5.27 | 4.94 | 0.98 |
Wanger USA | Semiannual Report 2018 | 7 |
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June 30, 2018 (Unaudited)
Common Stocks 95.5% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 16.4% | ||
Auto Components 4.1% | ||
Cooper-Standard Holding, Inc.(a) Sealing, fuel and brake delivery, fluid transfer systems, anti-vibration systems components, subsystems, and modules | 66,441 | 8,681,846 |
Dorman Products, Inc.(a) Automotive products and home hardware | 118,714 | 8,109,353 |
LCI Industries Recreational vehicles and equipment | 64,661 | 5,829,189 |
Tenneco, Inc. Emission control and ride control products and systems | 181,895 | 7,996,104 |
Total | 30,616,492 | |
Distributors 0.7% | ||
Pool Corp. Swimming pool supplies, equipment and leisure products | 33,429 | 5,064,494 |
Diversified Consumer Services 2.0% | ||
Adtalem Global Education, Inc.(a) Higher education institutions | 183,785 | 8,840,059 |
Bright Horizons Family Solutions, Inc.(a) Child care and early education services | 57,433 | 5,888,031 |
Total | 14,728,090 | |
Hotels, Restaurants & Leisure 6.4% | ||
Churchill Downs, Inc. Horse racing company, home of the Kentucky Derby | 12,800 | 3,795,200 |
Dave & Buster’s Entertainment, Inc.(a) Venues that combine dining and entertainment for adults and families | 228,142 | 10,859,559 |
Extended Stay America, Inc. Hotels and motels | 466,094 | 10,072,291 |
Red Rock Resorts, Inc., Class A Casino & entertainment properties | 201,344 | 6,745,024 |
Texas Roadhouse, Inc. Moderately priced, full service restaurant chain | 154,519 | 10,122,540 |
Wingstop, Inc. Cooked-to-order chicken wings | 112,885 | 5,883,566 |
Total | 47,478,180 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Household Durables 1.9% | ||
Cavco Industries, Inc.(a) Designs and manufactures systems-built structures | 27,185 | 5,644,966 |
iRobot Corp.(a),(b) Manufactures robots for cleaning | 108,173 | 8,196,268 |
Total | 13,841,234 | |
Leisure Products 1.3% | ||
Brunswick Corp. Consumer products serving the outdoor and indoor active recreation markets | 82,501 | 5,319,664 |
MCBC Holdings, Inc.(a) Sport boats | 142,242 | 4,117,906 |
Total | 9,437,570 | |
Total Consumer Discretionary | 121,166,060 | |
Consumer Staples 4.8% | ||
Beverages 0.7% | ||
MGP Ingredients, Inc. Distillery ingredients and products | 55,405 | 4,920,518 |
Food & Staples Retailing 0.6% | ||
BJ’s Wholesale Club Holdings, Inc.(a) Warehouse club | 184,560 | 4,364,844 |
Food Products 0.7% | ||
Hostess Brands, Inc.(a) Packaged baked sweet goods | 388,486 | 5,283,410 |
Household Products 1.7% | ||
Central Garden & Pet Co.(a) Lawn, garden & pet supply products | 206,319 | 8,970,750 |
WD-40 Co. Multi-purpose lubricant products and heavy-duty hand cleaners | 26,524 | 3,879,135 |
Total | 12,849,885 | |
Personal Products 1.1% | ||
Inter Parfums, Inc. Fragrances and related products | 145,158 | 7,765,953 |
Total Consumer Staples | 35,184,610 | |
Energy 1.5% | ||
Energy Equipment & Services 0.6% | ||
Core Laboratories NV(b) Reservoir description, production enhancement, and reservoir management services | 32,112 | 4,052,855 |
8 | Wanger USA | Semiannual Report 2018 |
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June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Oil, Gas & Consumable Fuels 0.9% | ||
PDC Energy, Inc.(a) Petroleum products | 111,637 | 6,748,457 |
Total Energy | 10,801,312 | |
Financials 13.8% | ||
Banks 5.4% | ||
First Busey Corp. Multi-bank holding company | 352,350 | 11,176,542 |
Great Southern Bancorp, Inc. Real estate, commercial real estate, commercial business, consumer, and construction loans | 107,871 | 6,170,221 |
Lakeland Financial Corp. Bank holding company | 188,313 | 9,074,803 |
Sandy Spring Bancorp, Inc. Holding company for Sandy Spring Bank | 163,851 | 6,719,530 |
Trico Bancshares Holding company for Tri Counties Bank | 168,664 | 6,316,467 |
Total | 39,457,563 | |
Capital Markets 3.9% | ||
Ares Management LP Asset management firm | 344,600 | 7,133,220 |
Hamilton Lane, Inc., Class A Private market investment solutions | 78,439 | 3,762,719 |
Houlihan Lokey, Inc. Investment bank | 216,924 | 11,110,847 |
OM Asset Management Plc Asset management company | 495,376 | 7,064,062 |
Total | 29,070,848 | |
Consumer Finance 1.9% | ||
FirstCash, Inc. Owns and operates pawn stores | 109,168 | 9,808,745 |
PRA Group, Inc.(a) Provides outsourced receivables management | 107,500 | 4,144,125 |
Total | 13,952,870 | |
Thrifts & Mortgage Finance 2.6% | ||
Merchants Bancorp Bank holding company | 201,182 | 5,739,722 |
OceanFirst Financial Corp. New Jersey banks | 244,423 | 7,322,913 |
Walker & Dunlop, Inc. Commercial real estate financial services | 111,245 | 6,190,784 |
Total | 19,253,419 | |
Total Financials | 101,734,700 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care 25.4% | ||
Biotechnology 8.1% | ||
Agios Pharmaceuticals, Inc.(a) Therapeutics in the field of cancer metabolism | 55,839 | 4,703,319 |
Amicus Therapeutics, Inc.(a) Orally-administered, small molecule drugs to treat human genetic diseases | 286,000 | 4,467,320 |
Clovis Oncology, Inc.(a) Pre-commercial Biotech Company | 86,228 | 3,920,787 |
Genomic Health, Inc.(a) Development and commercialization of genomic-based clinical diagnostic tests for cancer | 102,797 | 5,180,969 |
Kiniksa Pharmaceuticals Ltd., Class A(a) Clinical-stage biopharmaceutical company | 399,531 | 6,931,863 |
Ligand Pharmaceuticals, Inc.(a) Drugs that regulate hormone activated intracellular receptors | 45,998 | 9,529,406 |
Loxo Oncology, Inc.(a) Researches and develops cancer drugs | 21,207 | 3,678,990 |
MacroGenics, Inc.(a) Treatments for autoimmune disorders, cancer and infectious diseases | 332,683 | 6,869,904 |
Repligen Corp.(a) Supplier to Biopharma Industry | 206,300 | 9,704,352 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 61,392 | 4,719,203 |
Total | 59,706,113 | |
Health Care Equipment & Supplies 8.9% | ||
Atrion Corp. Medical products and components | 8,932 | 5,353,841 |
AxoGen, Inc.(a) Technologies for peripheral nerve reconstruction and regeneration | 126,561 | 6,359,690 |
Haemonetics Corp.(a) Automated blood processing systems | 49,119 | 4,404,992 |
iRhythm Technologies, Inc.(a) Medical instruments | 124,685 | 10,115,694 |
Masimo Corp.(a) Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 93,758 | 9,155,469 |
Orthofix International NV(a) Spine fixation and other orthopedic & spine solutions | 93,318 | 5,302,329 |
Sientra, Inc.(a) Plastic surgery implantable devices | 337,585 | 6,586,283 |
Wanger USA | Semiannual Report 2018 | 9 |
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June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Tactile Systems Technology, Inc.(a) Technology for treating lymphedema, chronic swelling & venous ulcers | 157,000 | 8,164,000 |
Tandem Diabetes Care, Inc.(a) Produces medical devices | 232,031 | 5,109,323 |
Varex Imaging Corp.(a) X-ray imaging components | 135,159 | 5,013,047 |
Total | 65,564,668 | |
Health Care Providers & Services 6.4% | ||
Amedisys, Inc.(a) Provider of alternate-site health care services | 114,287 | 9,766,967 |
AMN Healthcare Services, Inc.(a) Temporary healthcare staffing | 169,386 | 9,926,020 |
Chemed Corp. Hospice and palliative care services | 19,600 | 6,307,476 |
Encompass Health Corp. Inpatient rehabilitative healthcare services | 56,545 | 3,829,227 |
HealthEquity, Inc.(a) Technology-enabled services platforms for consumers to make healthcare saving and spending decisions | 145,956 | 10,961,295 |
Tivity Health, Inc.(a) Health fitness solutions | 190,548 | 6,707,290 |
Total | 47,498,275 | |
Pharmaceuticals 2.0% | ||
Optinose, Inc.(a) Health care services | 270,906 | 7,579,950 |
Reata Pharmaceuticals, Inc., Class A(a),(b) Biopharmaceutical company | 196,232 | 6,862,233 |
Total | 14,442,183 | |
Total Health Care | 187,211,239 | |
Industrials 9.7% | ||
Building Products 0.7% | ||
American Woodmark Corp.(a) Kitchen cabinets and vanities | 58,593 | 5,364,189 |
Commercial Services & Supplies 2.9% | ||
Brink’s Co. (The) Provides security services globally | 51,879 | 4,137,350 |
Healthcare Services Group, Inc. Housekeeping, laundry, linen, facility maintenance, and food services | 130,527 | 5,637,461 |
Knoll, Inc. Branded office furniture products and textiles | 182,115 | 3,789,813 |
Unifirst Corp. Workplace uniforms and protective clothing | 44,913 | 7,945,110 |
Total | 21,509,734 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Machinery 1.3% | ||
ESCO Technologies, Inc. Engineered products and solutions | 106,469 | 6,143,261 |
Toro Co. (The) Turf equipment | 52,903 | 3,187,406 |
Total | 9,330,667 | |
Professional Services 2.8% | ||
Exponent, Inc. Science and engineering consulting firm | 106,808 | 5,158,827 |
ICF International, Inc. Management, technology, policy consulting, and implementation services | 145,882 | 10,364,916 |
Wageworks, Inc.(a) Tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits | 104,196 | 5,209,800 |
Total | 20,733,543 | |
Road & Rail 1.2% | ||
Saia, Inc.(a) Trucking transportation | 103,397 | 8,359,647 |
Trading Companies & Distributors 0.8% | ||
SiteOne Landscape Supply, Inc.(a) Landscape supplies | 70,950 | 5,957,672 |
Total Industrials | 71,255,452 | |
Information Technology 17.4% | ||
Electronic Equipment, Instruments & Components 2.3% | ||
ePlus, Inc.(a) Provides IT hardware, software and services | 106,643 | 10,035,106 |
II-VI, Inc.(a) Optical and optoelectronic devices | 159,504 | 6,930,449 |
Total | 16,965,555 |
10 | Wanger USA | Semiannual Report 2018 |
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June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Internet Software & Services 4.5% | ||
Alteryx, Inc., Class A(a),(b) Data storage, retrieval, management, reporting, and analytics solutions | 184,302 | 7,032,964 |
Apptio, Inc., Class A(a) Cloud-based business management solutions | 201,888 | 7,308,346 |
Mimecast Ltd.(a) Cloud security and risk management services for corporate information and email | 144,831 | 5,968,486 |
MINDBODY, Inc., Class A(a) Business management software | 192,114 | 7,415,600 |
Q2 Holdings, Inc.(a) Secure, cloud-based virtual banking solutions | 96,516 | 5,506,238 |
Total | 33,231,634 | |
IT Services 0.7% | ||
CoreLogic, Inc.(a) Consumer, financial and property information, analytics and services to business and government | 96,334 | 4,999,735 |
Semiconductors & Semiconductor Equipment 5.8% | ||
Advanced Energy Industries, Inc.(a) Engineered precision power conversion, measurement and control solutions | 136,403 | 7,923,650 |
Brooks Automation, Inc. Automation solutions for the global semiconductor and related industries | 248,139 | 8,094,294 |
Cabot Microelectronics Corp. Slurries used in chemical mechanical planarization | 97,454 | 10,482,152 |
Inphi Corp.(a),(b) Analog semiconductor solutions | 160,222 | 5,224,840 |
Monolithic Power Systems, Inc. Power management solutions | 33,275 | 4,447,869 |
Semtech Corp.(a) Analog and mixed-signal semiconductors | 133,442 | 6,278,446 |
Total | 42,451,251 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Software 4.1% | ||
Blackline, Inc.(a) Develops and markets enterprise software | 143,372 | 6,226,646 |
CyberArk Software Ltd.(a) IT security solutions | 109,631 | 6,902,368 |
Qualys, Inc.(a) Information technology security risk and compliance management solutions | 100,018 | 8,431,518 |
Zscaler, Inc.(a),(b) Cloud-based internet security platform | 110,979 | 3,967,499 |
Zuora, Inc., Class A(a),(b) Develops cloud based software | 172,717 | 4,697,902 |
Total | 30,225,933 | |
Total Information Technology | 127,874,108 | |
Materials 2.7% | ||
Chemicals 2.7% | ||
Orion Engineered Carbons SA Global supplier of Carbon Black | 333,378 | 10,284,711 |
PolyOne Corp. International polymer services company | 87,000 | 3,760,140 |
Quaker Chemical Corp. Custom-formulated chemical specialty products | 39,525 | 6,121,237 |
Total | 20,166,088 | |
Total Materials | 20,166,088 | |
Real Estate 3.3% | ||
Equity Real Estate Investment Trusts (REITS) 2.6% | ||
CoreCivic, Inc. Detention and corrections services | 214,518 | 5,124,835 |
Coresite Realty Corp. Develops, owns & operates data centers | 53,813 | 5,963,557 |
UMH Properties, Inc. Real estate investment trust | 519,198 | 7,969,689 |
Total | 19,058,081 | |
Real Estate Management & Development 0.7% | ||
Colliers International Group, Inc. Commercial real estate, residential property management and property services | 69,142 | 5,234,049 |
Total Real Estate | 24,292,130 |
Wanger USA | Semiannual Report 2018 | 11 |
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June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Telecommunication Services 0.5% | ||
Wireless Telecommunication Services 0.5% | ||
Boingo Wireless, Inc.(a) Mobile internet services | 158,000 | 3,569,220 |
Total Telecommunication Services | 3,569,220 | |
Total Common Stocks (Cost: $523,885,306) | 703,254,919 | |
Limited Partnerships 0.5% | ||
Consumer Discretionary 0.5% | ||
Hotels, Restaurants & Leisure 0.5% | ||
Cedar Fair LP Owns and operates amusement parks | 54,200 | 3,415,142 |
Total Consumer Discretionary | 3,415,142 | |
Total Limited Partnerships (Cost: $3,582,097) | 3,415,142 | |
Securities Lending Collateral 2.7% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 1.810%(c),(d) | 20,098,095 | 20,098,095 |
Total Securities Lending Collateral (Cost: $20,098,095) | 20,098,095 | |
Money Market Funds 4.5% | ||
JPMorgan U.S. Government Money Market Fund, Agency Shares, 1.713%(c) | 33,325,254 | 33,325,254 |
Total Money Market Funds (Cost: $33,325,254) | 33,325,254 | |
Total Investments in Securities (Cost $580,890,752) | 760,093,410 | |
Obligation to Return Collateral for Securities Loaned | (20,098,095) | |
Other Assets & Liabilities, Net | (3,721,289) | |
Net Assets | $736,274,026 |
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at June 30, 2018. The total market value of securities on loan at June 30, 2018 was $19,716,937. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2018. |
(d) | Investment made with cash collateral received from securities lending activity. |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
12 | Wanger USA | Semiannual Report 2018 |
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June 30, 2018 (Unaudited)
For investments categorized as Level 3, the significant unobservable inputs used in the fair value measurement of the Fund’s securities may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. Significant changes in any of these factors could result in lower or higher fair value measurements. Various factors impact the frequency of monitoring (which may occur as often as daily), however the Committee may determine that changes to inputs, assumptions and models are not required with the same frequency.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Consumer Discretionary | 121,166,060 | — | — | 121,166,060 |
Consumer Staples | 35,184,610 | — | — | 35,184,610 |
Energy | 10,801,312 | — | — | 10,801,312 |
Financials | 101,734,700 | — | — | 101,734,700 |
Health Care | 187,211,239 | — | — | 187,211,239 |
Industrials | 71,255,452 | — | — | 71,255,452 |
Information Technology | 127,874,108 | — | — | 127,874,108 |
Materials | 20,166,088 | — | — | 20,166,088 |
Real Estate | 24,292,130 | — | — | 24,292,130 |
Telecommunication Services | 3,569,220 | — | — | 3,569,220 |
Total Common Stocks | 703,254,919 | — | — | 703,254,919 |
Limited Partnerships | ||||
Consumer Discretionary | 3,415,142 | — | — | 3,415,142 |
Total Limited Partnerships | 3,415,142 | — | — | 3,415,142 |
Securities Lending Collateral | 20,098,095 | — | — | 20,098,095 |
Money Market Funds | 33,325,254 | — | — | 33,325,254 |
Total Investments in Securities | 760,093,410 | — | — | 760,093,410 |
Wanger USA | Semiannual Report 2018 | 13 |
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June 30, 2018 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $580,890,752) | $760,093,410 |
Receivable for: | |
Investments sold | 3,980,817 |
Capital shares sold | 203,727 |
Dividends | 390,468 |
Securities lending income | 21,476 |
Foreign tax reclaims | 346 |
Prepaid expenses | 5,248 |
Trustees’ deferred compensation plan | 231,005 |
Total assets | 764,926,497 |
Liabilities | |
Due upon return of securities on loan | 20,098,095 |
Payable for: | |
Investments purchased | 6,783,171 |
Capital shares purchased | 1,434,867 |
Investment advisory fee | 17,469 |
Administration fees | 1,011 |
Trustees’ fees | 1,476 |
Other expenses | 85,377 |
Trustees’ deferred compensation plan | 231,005 |
Total liabilities | 28,652,471 |
Net assets applicable to outstanding capital stock | $736,274,026 |
Represented by | |
Paid in capital | 498,021,615 |
Excess of distributions over net investment income | (39,592) |
Accumulated net realized gain | 59,089,345 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 179,202,658 |
Total - representing net assets applicable to outstanding capital stock | $736,274,026 |
Shares outstanding | 30,285,434 |
Net asset value per share | 24.31 |
* Value of securities on loan | 19,716,937 |
14 | Wanger USA | Semiannual Report 2018 |
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Six Months Ended June 30, 2018 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $3,382,714 |
Income from securities lending — net | 183,633 |
Foreign taxes withheld | (26,439) |
Total income | 3,539,908 |
Expenses: | |
Investment advisory fee | 3,035,202 |
Service fees | 275,914 |
Administration fees | 175,473 |
Trustees’ fees | 34,802 |
Custodian fees | 4,848 |
Printing and postage fees | 80,290 |
Audit fees | 20,071 |
Legal fees | 53,721 |
Compensation of chief compliance officer | 1,084 |
Other | 21,658 |
Total expenses | 3,703,063 |
Fees waived by transfer agent | (275,914) |
Total net expenses | 3,427,149 |
Net investment income | 112,759 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 60,533,296 |
Net realized gain | 60,533,296 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 41,568,285 |
Net change in unrealized appreciation (depreciation) | 41,568,285 |
Net realized and unrealized gain | 102,101,581 |
Net increase in net assets resulting from operations | $102,214,340 |
Wanger USA | Semiannual Report 2018 | 15 |
Table of Contents
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | |
Operations | ||
Net investment income (loss) | $112,759 | $(528,477) |
Net realized gain | 60,533,296 | 163,958,845 |
Net change in unrealized appreciation (depreciation) | 41,568,285 | (42,319,867) |
Net increase in net assets resulting from operations | 102,214,340 | 121,110,501 |
Distributions to shareholders | ||
Net realized gains | (161,321,944) | (108,009,366) |
Total distributions to shareholders | (161,321,944) | (108,009,366) |
Increase in net assets from capital stock activity | 110,669,740 | 7,375,038 |
Total increase in net assets | 51,562,136 | 20,476,173 |
Net assets at beginning of period | 684,711,890 | 664,235,717 |
Net assets at end of period | $736,274,026 | $684,711,890 |
Excess of distributions over net investment income | $(39,592) | $(152,351) |
Six Months Ended | Year Ended | |||
June 30, 2018 (Unaudited) | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 310,144 | 8,566,760 | 368,297 | 9,709,107 |
Distributions reinvested | 6,497,058 | 161,321,944 | 4,399,567 | 108,009,366 |
Redemptions | (2,125,342) | (59,218,964) | (4,199,383) | (110,343,435) |
Total net increase | 4,681,860 | 110,669,740 | 568,481 | 7,375,038 |
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Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Per share data | ||||||
Net asset value, beginning of period | $26.74 | $26.53 | $31.75 | $37.71 | $41.13 | $33.84 |
Income from investment operations: | ||||||
Net investment income (loss) | 0.00 (a) | (0.02) | (0.04) | (0.12) | (0.06) | (0.05) |
Net realized and unrealized gain | 4.31 | 4.81 | 3.56 | 0.45 | 1.70 | 10.79 |
Total from investment operations | 4.31 | 4.79 | 3.52 | 0.33 | 1.64 | 10.74 |
Less distributions to shareholders from: | ||||||
Net investment income | — | — | — | — | — | (0.06) |
Net realized gains | (6.74) | (4.58) | (8.74) | (6.29) | (5.06) | (3.39) |
Total distributions to shareholders | (6.74) | (4.58) | (8.74) | (6.29) | (5.06) | (3.45) |
Net asset value, end of period | $24.31 | $26.74 | $26.53 | $31.75 | $37.71 | $41.13 |
Total return | 15.60% (b) | 19.58% (b) | 13.69% | (0.61)% | 4.78% | 33.75% |
Ratios to average net assets | ||||||
Total gross expenses(c) | 1.06% (d) | 1.03% | 1.00% | 1.01% | 0.96% | 0.96% |
Total net expenses(c) | 0.98% (d) | 0.99% | 1.00% | 1.01% | 0.96% | 0.96% |
Net investment income (loss) | 0.03% (d) | (0.08)% | (0.16)% | (0.34)% | (0.15)% | (0.12)% |
Supplemental data | ||||||
Portfolio turnover | 35% | 96% | 118% | 45% | 14% | 15% |
Net assets, end of period (in thousands) | $736,274 | $684,712 | $664,236 | $692,605 | $800,933 | $912,143 |
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. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(d) | Annualized. |
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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 | $19,716,937 | $— | $— | $— | $19,716,937 |
Gross amount of recognized liabilities for securities lending (collateral received) | 20,098,095 | ||||
Amounts due to counterparty in the event of default | $381,158 |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities loaned | 20,098,095 |
Total Liabilities | 20,098,095 |
Total Financial and Derivative Net Assets | (20,098,095) |
Financial Instruments | 19,716,937 |
Net Amount (a) | (381,158) |
(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 | 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% |
$8 billion and over | 0.02% |
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Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
580,891,000 | 192,054,000 | (12,852,000) | 179,202,000 |
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Average annual total returns (%) (for the period ended June 30, 2018) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger Select | 02/01/99 | 6.33 | 20.50 | 13.56 | 8.94 | 10.88 | |
Russell 2500 Growth Index | 8.04 | 21.53 | 13.87 | 11.38 | - |
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Top ten holdings (%) (at June 30, 2018) | |
Vail Resorts, Inc. Operates resorts globally | 5.5 |
Masimo Corp. Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 5.5 |
VeriSign, Inc. Domain names and Internet security services | 5.2 |
JB Hunt Transport Services, Inc. Logistics services | 5.1 |
ANSYS, Inc. Software solutions for design analysis and optimization | 5.1 |
CDW Corp. IT products and services | 4.6 |
LCI Industries Recreational vehicles and equipment | 4.6 |
GoDaddy, Inc., Class A Cloud-based web platform for small businesses, web design professionals and individuals | 4.5 |
Cavco Industries, Inc. Designs and manufactures systems-built structures | 4.0 |
LKQ Corp. Automotive products and services | 4.0 |
Portfolio breakdown (%) (at June 30, 2018) | |
Common Stocks | 97.7 |
Money Market Funds | 2.3 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2018) | |
Consumer Discretionary | 20.6 |
Financials | 15.6 |
Health Care | 14.5 |
Industrials | 16.5 |
Information Technology | 24.5 |
Materials | 3.3 |
Real Estate | 5.0 |
Total | 100.0 |
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January 1, 2018 — June 30, 2018 | |||||||
Account value at the beginning of the period ($) | 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 | 1,063.30 | 1,021.19 | 3.86 | 3.78 | 0.75 |
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Common Stocks 97.7% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 20.1% | ||
Auto Components 4.5% | ||
LCI Industries Recreational vehicles and equipment | 68,891 | 6,210,524 |
Distributors 3.9% | ||
LKQ Corp.(a) Automotive products and services | 170,225 | 5,430,178 |
Hotels, Restaurants & Leisure 5.4% | ||
Vail Resorts, Inc. Operates resorts globally | 27,100 | 7,430,549 |
Household Durables 3.9% | ||
Cavco Industries, Inc.(a) Designs and manufactures systems-built structures | 26,191 | 5,438,561 |
Media 2.4% | ||
Liberty Global PLC, Class A(a) Broadband, distribution, and content companies | 120,871 | 3,328,787 |
Total Consumer Discretionary | 27,838,599 | |
Financials 15.2% | ||
Banks 3.9% | ||
SVB Financial Group(a) Holding company for Silicon Valley Bank | 18,786 | 5,424,645 |
Capital Markets 8.5% | ||
Ares Management LP Asset management firm | 133,343 | 2,760,200 |
Eaton Vance Corp. Creates, markets, and manages mutual funds | 98,588 | 5,145,308 |
Lazard Ltd., Class A Corporate Advisory & Asset Management | 77,222 | 3,776,928 |
Total | 11,682,436 | |
Consumer Finance 2.8% | ||
FirstCash, Inc. Owns and operates pawn stores | 43,694 | 3,925,906 |
Total Financials | 21,032,987 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care 14.2% | ||
Biotechnology 4.1% | ||
Genomic Health, Inc.(a) Development and commercialization of genomic-based clinical diagnostic tests for cancer | 74,712 | 3,765,485 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 24,422 | 1,877,319 |
Total | 5,642,804 | |
Health Care Equipment & Supplies 6.2% | ||
Anika Therapeutics, Inc.(a) Integrated orthopedic medicines company | 36,100 | 1,155,200 |
Masimo Corp.(a) Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 76,030 | 7,424,329 |
Total | 8,579,529 | |
Health Care Providers & Services 3.9% | ||
Encompass Health Corp. Inpatient rehabilitative healthcare services | 79,587 | 5,389,632 |
Total Health Care | 19,611,965 | |
Industrials 16.1% | ||
Machinery 6.4% | ||
Nordson Corp. Systems that apply adhesives, sealants, and coatings to products during manufacturing | 31,723 | 4,073,550 |
Oshkosh Corp. Fire and emergency apparatuses and specialty commercial, and military trucks | 67,083 | 4,717,277 |
Total | 8,790,827 | |
Professional Services 1.1% | ||
Wageworks, Inc.(a) Tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits | 31,776 | 1,588,800 |
Road & Rail 5.0% | ||
JB Hunt Transport Services, Inc. Logistics services | 56,352 | 6,849,586 |
Trading Companies & Distributors 3.6% | ||
SiteOne Landscape Supply, Inc.(a) Landscape supplies | 59,557 | 5,001,001 |
Total Industrials | 22,230,214 |
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Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Information Technology 23.9% | ||
Electronic Equipment, Instruments & Components 6.1% | ||
CDW Corp. IT products and services | 77,514 | 6,262,356 |
Coherent, Inc.(a) Laser-based photonic products | 14,031 | 2,194,729 |
Total | 8,457,085 | |
Internet Software & Services 12.0% | ||
GoDaddy, Inc., Class A(a) Cloud-based web platform for small businesses, web design professionals and individuals | 85,700 | 6,050,420 |
SPS Commerce, Inc.(a) On-demand supply chain management solutions through an online hosted software suite | 46,363 | 3,406,754 |
VeriSign, Inc.(a) Domain names and Internet security services | 51,360 | 7,057,891 |
Total | 16,515,065 | |
IT Services 0.9% | ||
GreenSky, Inc., Class A(a) Technology company | 56,456 | 1,194,044 |
Software 4.9% | ||
ANSYS, Inc.(a) Software solutions for design analysis and optimization | 39,162 | 6,821,237 |
Total Information Technology | 32,987,431 | |
Materials 3.3% | ||
Chemicals 3.3% | ||
Celanese Corp., Class A Global integrated producer of chemicals and advanced materials | 40,555 | 4,504,038 |
Total Materials | 4,504,038 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Real Estate 4.9% | ||
Equity Real Estate Investment Trusts (REITS) 4.9% | ||
Coresite Realty Corp. Develops, owns & operates data centers | 42,329 | 4,690,900 |
UMH Properties, Inc. Real estate investment trust | 134,338 | 2,062,088 |
Total | 6,752,988 | |
Total Real Estate | 6,752,988 | |
Total Common Stocks (Cost: $99,734,357) | 134,958,222 | |
Money Market Funds 2.3% | ||
Shares | Value ($) | |
JPMorgan U.S. Government Money Market Fund, IM Shares, 1.819%(b) | 3,163,943 | 3,163,943 |
Total Money Market Funds (Cost: $3,163,943) | 3,163,943 | |
Total Investments in Securities (Cost $102,898,300) | 138,122,165 | |
Other Assets & Liabilities, Net | (22,508) | |
Net Assets | $138,099,657 |
(a) | Non-income producing security. |
(b) | The rate shown is the seven-day current annualized yield at June 30, 2018. |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
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Examples of the types of securities in which the Fund would typically invest and how they are classified within this hierarchy are as follows. Typical Level 1 securities include exchange traded domestic equities, mutual funds whose net asset values are published each day and exchange traded foreign equities that are not statistically fair valued. Typical Level 2 securities include exchange traded foreign equities that are statistically fair valued, forward foreign currency exchange contracts and short-term investments valued at amortized cost. Additionally, securities fair valued by Columbia Wanger Asset Management’s Valuation Committee (the Committee) that rely on significant observable inputs are also included in Level 2. Typical Level 3 securities include any security fair valued by the Committee that relies on significant unobservable inputs.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Consumer Discretionary | 27,838,599 | — | — | 27,838,599 |
Financials | 21,032,987 | — | — | 21,032,987 |
Health Care | 19,611,965 | — | — | 19,611,965 |
Industrials | 22,230,214 | — | — | 22,230,214 |
Information Technology | 32,987,431 | — | — | 32,987,431 |
Materials | 4,504,038 | — | — | 4,504,038 |
Real Estate | 6,752,988 | — | — | 6,752,988 |
Total Common Stocks | 134,958,222 | — | — | 134,958,222 |
Money Market Funds | 3,163,943 | — | — | 3,163,943 |
Total Investments in Securities | 138,122,165 | — | — | 138,122,165 |
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Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $102,898,300) | $138,122,165 |
Receivable for: | |
Investments sold | 614,936 |
Capital shares sold | 1,501 |
Dividends | 103,333 |
Prepaid expenses | 1,008 |
Total assets | 138,842,943 |
Liabilities | |
Payable for: | |
Investments purchased | 563,307 |
Capital shares purchased | 83,274 |
Investment advisory fee | 2,269 |
Administration fees | 189 |
Trustees’ fees | 45,548 |
Other expenses | 48,699 |
Total liabilities | 743,286 |
Net assets applicable to outstanding capital stock | $138,099,657 |
Represented by | |
Paid in capital | 95,195,603 |
Undistributed net investment income | 312,746 |
Accumulated net realized gain | 7,367,443 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 35,223,865 |
Total - representing net assets applicable to outstanding capital stock | $138,099,657 |
Shares outstanding | 6,955,554 |
Net asset value per share | 19.85 |
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Six Months Ended June 30, 2018 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $862,722 |
Income from securities lending — net | 758 |
Total income | 863,480 |
Expenses: | |
Investment advisory fee | 553,933 |
Service fees | 103,498 |
Administration fees | 34,621 |
Trustees’ fees | 7,449 |
Custodian fees | 1,930 |
Printing and postage fees | 23,052 |
Audit fees | 14,666 |
Legal fees | 10,819 |
Compensation of chief compliance officer | 224 |
Other | 10,212 |
Total expenses | 760,404 |
Fees waived by transfer agent | (103,498) |
Advisory fee waiver | (138,483) |
Total net expenses | 518,423 |
Net investment income | 345,057 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 7,500,141 |
Net realized gain | 7,500,141 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 660,115 |
Net change in unrealized appreciation (depreciation) | 660,115 |
Net realized and unrealized gain | 8,160,256 |
Net increase in net assets resulting from operations | $8,505,313 |
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Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | |
Operations | ||
Net investment income | $345,057 | $247,316 |
Net realized gain | 7,500,141 | 15,047,757 |
Net change in unrealized appreciation (depreciation) | 660,115 | 15,936,463 |
Net increase in net assets resulting from operations | 8,505,313 | 31,231,536 |
Distributions to shareholders | ||
Net investment income | — | (229,911) |
Net realized gains | (15,021,272) | (17,779,427) |
Total distributions to shareholders | (15,021,272) | (18,009,338) |
Increase in net assets from capital stock activity | 3,402,643 | 2,491,048 |
Total increase (decrease) in net assets | (3,113,316) | 15,713,246 |
Net assets at beginning of period | 141,212,973 | 125,499,727 |
Net assets at end of period | $138,099,657 | $141,212,973 |
Undistributed (excess of distributions over) net investment income | $312,746 | $(32,311) |
Six Months Ended | Year Ended | |||
June 30, 2018 (Unaudited) | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 133,830 | 2,853,107 | 229,255 | 4,453,222 |
Distributions reinvested | 727,070 | 15,021,272 | 990,881 | 18,009,338 |
Redemptions | (679,806) | (14,471,736) | (1,016,605) | (19,971,512) |
Total net increase | 181,094 | 3,402,643 | 203,531 | 2,491,048 |
Wanger Select | Semiannual Report 2018 | 13 |
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Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Per share data | ||||||
Net asset value, beginning of period | $20.84 | $19.10 | $24.18 | $32.99 | $36.41 | $27.54 |
Income from investment operations: | ||||||
Net investment income (loss) | 0.05 | 0.04 | 0.03 | (0.02) | (0.07) | (0.05) |
Net realized and unrealized gain | 1.36 | 4.62 | 2.48 | 0.69 | 1.07 | 9.46 |
Total from investment operations | 1.41 | 4.66 | 2.51 | 0.67 | 1.00 | 9.41 |
Less distributions to shareholders from: | ||||||
Net investment income | — | (0.03) | (0.03) | (0.00) (a) | — | (0.09) |
Net realized gains | (2.40) | (2.89) | (7.56) | (9.48) | (4.42) | (0.45) |
Total distributions to shareholders | (2.40) | (2.92) | (7.59) | (9.48) | (4.42) | (0.54) |
Net asset value, end of period | $19.85 | $20.84 | $19.10 | $24.18 | $32.99 | $36.41 |
Total return | 6.33% (b) | 26.67% (b) | 13.31% (b) | 0.26% (b) | 3.17% | 34.58% |
Ratios to average net assets | ||||||
Total gross expenses(c) | 1.10% (d) | 1.05% | 0.93% (e) | 0.98% | 0.93% (f) | 0.93% |
Total net expenses(c) | 0.75% (d) | 0.77% | 0.73% (e) | 0.85% | 0.93% (f) | 0.93% |
Net investment income (loss) | 0.50% (d) | 0.19% | 0.17% | (0.06)% | (0.20)% | (0.15)% |
Supplemental data | ||||||
Portfolio turnover | 33% | 52% | 93% | 59% | 18% | 24% |
Net assets, end of period (in thousands) | $138,100 | $141,213 | $125,500 | $135,841 | $191,647 | $257,911 |
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%. |
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Average daily net assets | Annual fee rate |
Up to $500 million | 0.80% |
$500 million and over | 0.78% |
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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 ($) |
102,898,000 | 37,190,000 | (1,966,000) | 35,224,000 |
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Average annual total returns (%) (for the period ended June 30, 2018) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger International | 05/03/95 | -1.33 | 9.17 | 7.44 | 5.84 | 11.91 | |
MSCI ACWI ex USA Small Cap Index (Net) | -2.94 | 10.57 | 8.98 | 5.77 | - | ||
MSCI ACWI ex USA Small Cap Growth Index (Net) | -0.84 | 13.67 | 9.73 | 5.40 | - |
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Top ten holdings (%) (at June 30, 2018) | |
SimCorp AS (Denmark) Global provider of highly specialised software for the investment management industry | 2.8 |
Nemetschek SE (Germany) Standard software for designing, constructing and managing buildings and real estate | 2.7 |
Brembo SpA (Italy) Braking systems and components | 1.7 |
Unibet Group PLC (Malta) Online gambling services | 1.7 |
WH Smith PLC (United Kingdom) Retails books, magazines, newspapers, and periodicals | 1.7 |
Vitasoy International Holdings Ltd. (Hong Kong) Food and beverages | 1.6 |
Rightmove PLC (United Kingdom) Website that lists properties across Britain | 1.6 |
NagaCorp Ltd. (Cambodia) Leisure and tourism company | 1.6 |
Atea ASA (Norway) Nordic and Baltic supplier of IT infrastructure | 1.5 |
Hastings Group Holdings PLC (United Kingdom) General insurance services to the automobile and home insurance products | 1.5 |
Equity sector breakdown (%) (at June 30, 2018) | |
Consumer Discretionary | 22.0 |
Consumer Staples | 6.9 |
Energy | 1.2 |
Financials | 11.5 |
Health Care | 5.7 |
Industrials | 25.1 |
Information Technology | 20.6 |
Materials | 2.0 |
Real Estate | 4.0 |
Telecommunication Services | 1.0 |
Total | 100.0 |
Country breakdown (%) (at June 30, 2018) | |
Australia | 2.0 |
Belgium | 0.7 |
Brazil | 0.6 |
Cambodia | 1.5 |
Canada | 4.3 |
Cayman Islands | 3.1 |
China | 0.8 |
Denmark | 2.7 |
Finland | 0.7 |
France | 1.3 |
Germany | 8.7 |
Hong Kong | 2.6 |
India | 2.0 |
Indonesia | 1.0 |
Ireland | 1.1 |
Italy | 2.9 |
Japan | 21.3 |
Malta | 1.7 |
Mexico | 0.5 |
Netherlands | 1.2 |
New Zealand | 1.3 |
Norway | 2.0 |
Poland | 0.4 |
Russian Federation | 0.8 |
Singapore | 0.9 |
South Africa | 1.9 |
South Korea | 4.3 |
Spain | 0.8 |
Sweden | 3.1 |
Switzerland | 2.9 |
Taiwan | 3.1 |
Thailand | 1.3 |
Turkey | 0.4 |
United Kingdom | 12.9 |
United States(a) | 3.2 |
Total | 100.0 |
(a) | Includes investments in Money Market Funds. |
4 | Wanger International | Semiannual Report 2018 |
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6 | Wanger International | Semiannual Report 2018 |
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January 1, 2018 — June 30, 2018 | |||||||
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 | 986.70 | 1,019.40 | 5.50 | 5.59 | 1.11 |
Wanger International | Semiannual Report 2018 | 7 |
Table of Contents
June 30, 2018 (Unaudited)
Common Stocks 98.3% | ||
Issuer | Shares | Value ($) |
Australia 2.0% | ||
carsales.com Ltd. Automotive & related industry websites | 473,353 | 5,291,089 |
DuluxGroup Ltd. Manufactures and supplies paints and other surface coatings | 491,000 | 2,776,320 |
National Storage REIT Owns self storage facilities | 2,367,000 | 2,881,912 |
Total | 10,949,321 | |
Belgium 0.7% | ||
Melexis NV Advanced integrated semiconductors, sensor ICs, and programmable sensor IC systems | 39,423 | 3,649,649 |
Brazil 0.6% | ||
Odontoprev SA Dental benefits company | 937,200 | 3,191,909 |
Cambodia 1.5% | ||
NagaCorp Ltd. Leisure and tourism company | 9,118,000 | 8,269,550 |
Canada 4.3% | ||
AG Growth International, Inc. Manufacturer of Augers & Grain Handling Equipment | 132,266 | 5,569,730 |
CAE, Inc. Training solutions based on simulation technology and integrated training services | 350,871 | 7,288,850 |
CES Energy Solutions Corp. Oil and natural gas industry | 642,000 | 2,192,660 |
ShawCor Ltd. Energy services company | 231,817 | 4,500,034 |
Winpak Ltd. Packaging materials and machines for the protection of perishables | 106,070 | 3,550,055 |
Total | 23,101,329 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Cayman Islands 3.1% | ||
Gourmet Master Co., Ltd. Coffee & bakery cafes | 402,960 | 3,893,101 |
Parade Technologies Ltd. Fabless semiconductor company | 237,000 | 3,964,226 |
Silicon Motion Technology Corp., ADR Semiconductor products | 77,269 | 4,086,757 |
Xiabuxiabu Catering Management China Holdings Co., Ltd. Chain of restaurants in China | 2,187,500 | 4,776,776 |
Total | 16,720,860 | |
China 0.8% | ||
51job, Inc., ADR(a) Integrated human resource services | 19,005 | 1,855,648 |
China Medical System Holdings Ltd. Pharmaceutical and medical products | 1,167,000 | 2,324,486 |
Total | 4,180,134 | |
Denmark 2.7% | ||
SimCorp AS Global provider of highly specialised software for the investment management industry | 180,521 | 14,579,964 |
Finland 0.8% | ||
Ahlstrom-Munksjo Oyj Industrial paper | 224,115 | 4,042,475 |
France 1.3% | ||
Akka Technologies High-technology engineering consulting services | 66,764 | 4,763,232 |
Elior Group SA Provides catering, cleaning, and facility management services | 158,438 | 2,283,564 |
Total | 7,046,796 | |
Germany 8.8% | ||
AURELIUS Equity Opportunities SE & Co. KGaA Loans to distressed companies | 83,582 | 4,947,079 |
CTS Eventim AG & Co. KGaA Online ticket sales | 120,709 | 5,926,536 |
Deutsche Beteiligungs AG Private equity company, investing in domestic medium-sized companies | 139,308 | 5,515,731 |
Nemetschek SE Standard software for designing, constructing and managing buildings and real estate | 117,822 | 14,121,748 |
8 | Wanger International | Semiannual Report 2018 |
Table of Contents
June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Norma Group SE Plastic and metal-based components and systems in connecting technology | 65,839 | 4,498,344 |
Stroeer SE & Co. KGaA Digital multi-channel media company | 77,888 | 4,702,479 |
Vapiano SE(a) Chain of restaurants | 234,276 | 5,530,266 |
Varta AG(a) Manufactures and markets a wide range of industrial, commercial and miniaturized batteries | 68,784 | 1,865,169 |
Total | 47,107,352 | |
Hong Kong 2.6% | ||
ASM Pacific Technology Ltd. Machines, tools & materials used in the semiconductor industry | 243,900 | 3,074,000 |
Value Partners Group Ltd. Independent, value oriented asset management group | 3,049,000 | 2,397,401 |
Vitasoy International Holdings Ltd. Food and beverages | 2,724,000 | 8,703,751 |
Total | 14,175,152 | |
India 2.0% | ||
Care Ratings Ltd. Credit rating services | 294,494 | 5,392,200 |
GRUH Finance Ltd. Provides a range of home loans as well as insurance products | 1,183,856 | 5,260,734 |
Total | 10,652,934 | |
Indonesia 1.0% | ||
PT Link Net Tbk High-speed internet connection through fiber optic lines | 9,028,300 | 2,767,760 |
PT Tower Bersama Infrastructure Tbk Telecommunication infrastructure services to Indonesian wireless carriers | 7,299,900 | 2,541,053 |
Total | 5,308,813 | |
Ireland 1.1% | ||
UDG Healthcare PLC Commercialisation solutions for health care companies | 553,820 | 6,018,548 |
Italy 2.9% | ||
Brembo SpA Braking systems and components | 675,554 | 9,111,039 |
Industria Macchine Automatiche SpA Packaging machinery for the food, pharmaceuticals, and cosmetics industries | 75,600 | 6,559,910 |
Total | 15,670,949 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Japan 21.3% | ||
Aeon Credit Service Co., Ltd. Credit card company | 194,000 | 4,134,922 |
Aeon Mall Co., Ltd. Large-scale shopping malls | 306,700 | 5,501,906 |
Aica Kogyo Co., Ltd. Manufactures adhesives, melamine boards, and housing materials | 167,400 | 5,868,834 |
Amano Corp. Electronic time recorders and information systems | 138,500 | 3,271,592 |
Asahi Intecc Co., Ltd. Manufactures medical tools and stainless wire rope | 163,600 | 6,176,895 |
Azbil Corp. Provides measurement and control technologies | 57,000 | 2,480,149 |
cocokara fine, Inc. Drug chain stores | 98,700 | 6,068,516 |
Daiseki Co., Ltd. Waste Disposal & Recycling | 175,100 | 5,133,688 |
Fuji Oil Holdings, Inc. Specialty vegetable oils and fats | 203,400 | 7,311,791 |
Glory Ltd. Vending machines, coin-operated lockers, money handling machines, and data processing terminals | 153,700 | 4,294,509 |
Istyle, Inc. Cosmetics Review Portal & Retailer | 270,800 | 2,971,524 |
KH Neochem Co., Ltd. Manufactures and sells petroleum chemical products | 3,500 | 105,899 |
LIXIL VIVA Corp. Operates home center chain stores and retails home improvement products | 161,000 | 2,496,582 |
Mandom Corp. Cosmetic products for men and women | 170,600 | 5,305,849 |
Milbon Co., Ltd. Hair Products for Salons | 68,400 | 3,063,036 |
Miura Co., Ltd. Industrial boilers and related equipment | 135,300 | 3,283,035 |
MonotaRO Co., Ltd Machine tools, engine parts, and factory consumable goods | 69,800 | 3,083,460 |
Nabtesco Corp. Aircraft and hydraulic products | 80,200 | 2,464,137 |
Nakanishi, Inc. Dental Tools & Machinery | 275,200 | 6,242,430 |
OSG Corp. Manufactures machine tool equipment | 151,600 | 3,118,205 |
Otsuka Corp. Computer information system and software | 63,000 | 2,466,283 |
Wanger International | Semiannual Report 2018 | 9 |
Table of Contents
June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Persol Holdings Co., Ltd. Human resource solutions | 115,300 | 2,567,777 |
Seiren Co., Ltd. Advertising services | 383,000 | 5,958,732 |
Seria Co., Ltd. Operates 100 yen chain stores | 152,900 | 7,327,652 |
Sohgo Security Services Co., Ltd. Around the clock security services | 73,000 | 3,434,480 |
TechnoPro Holdings, Inc. Medical & electronic design and IT & software development | 73,100 | 4,488,702 |
Ushio, Inc. Lamps and optical equipment | 476,100 | 6,046,325 |
Total | 114,666,910 | |
Malta 1.7% | ||
Unibet Group PLC Online gambling services | 715,872 | 8,968,276 |
Mexico 0.5% | ||
Grupo Aeroportuario del Sureste SAB de CV, ADR(b) Operates airports in Mexico | 17,015 | 2,708,107 |
Netherlands 1.2% | ||
Aalberts Industries NV Industrial services and flow control systems | 139,338 | 6,656,242 |
New Zealand 1.4% | ||
Restaurant Brands New Zealand Ltd. Fast food restaurant chains | 1,370,685 | 7,239,340 |
Norway 2.0% | ||
Atea ASA Nordic and Baltic supplier of IT infrastructure | 546,167 | 7,865,359 |
XXL ASA(b) Multi-sports retail store | 332,894 | 2,690,981 |
Total | 10,556,340 | |
Poland 0.5% | ||
KRUK SA Debt collection services | 45,550 | 2,427,439 |
Russian Federation 0.8% | ||
TCS Group Holding PLC, GDR Online retail financial services | 197,259 | 4,083,261 |
Singapore 0.9% | ||
Mapletree Commercial Trust Singapore-focused real estate investment trust | 4,219,407 | 4,862,045 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
South Africa 1.9% | ||
Clicks Group Ltd. Owns and operates chains of retail stores | 179,746 | 2,566,488 |
Famous Brands Ltd.(a) Food and beverage company | 433,255 | 3,581,762 |
PSG Group Ltd. Diversified financial services | 272,568 | 4,287,569 |
Total | 10,435,819 | |
South Korea 4.3% | ||
CJ Logistics Corp.(a) Logistics services | 32,958 | 4,970,459 |
GS Retail Co., Ltd. Chain of retail stores | 83,291 | 3,286,809 |
Koh Young Technology, Inc. 3D measurement and inspection equipment for testing various machineries | 71,532 | 6,539,432 |
Korea Investment Holdings Co., Ltd. Financial holding company | 58,220 | 4,389,765 |
Modetour Network, Inc. Travel services | 161,582 | 3,940,841 |
Total | 23,127,306 | |
Spain 0.8% | ||
Prosegur Cia de Seguridad SA, Registered Shares Security and transportation services | 685,661 | 4,466,566 |
Sweden 3.1% | ||
AddTech AB, Class B High-tech industrial components and systems | 120,400 | 2,654,624 |
Byggmax Group AB Discount provider of building materials | 652,246 | 2,835,072 |
NetEnt AB Develops and markets computer gaming software | 784,997 | 4,169,608 |
Sweco AB, Class B Consulting company specializing in engineering, environmental technology, and architecture | 307,991 | 7,251,027 |
Total | 16,910,331 |
10 | Wanger International | Semiannual Report 2018 |
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June 30, 2018 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Switzerland 2.9% | ||
Belimo Holding AG, Registered Shares Manufactures heating, ventilation and air conditioning equipment | 572 | 2,489,468 |
Bossard Holding AG, Class A, Registered Shares Fastening devices, industrial adhesives & tools | 27,727 | 5,139,989 |
Inficon Holding AG Vacuum instruments used to monitor and control production processes | 9,840 | 5,001,775 |
Kardex AG Storage, warehouse and materials handling systems | 21,293 | 2,946,453 |
Total | 15,577,685 | |
Taiwan 3.1% | ||
Basso Industry Corp. Pneumatic nailers and staplers | 1,862,000 | 3,969,884 |
Silergy Corp. High performance analog integrated circuits | 229,000 | 5,564,546 |
Sinbon Electronics Co., Ltd. Cable, connectors & modems | 981,000 | 2,677,240 |
Voltronic Power Technology Corp. Uninterruptible power supply products, inverters, multiple surface mounted devices and other power products | 260,395 | 4,446,274 |
Total | 16,657,944 | |
Thailand 1.3% | ||
Beauty Community PCL Cosmetic and beauty products | 6,344,000 | 2,332,794 |
Muangthai Leasing PCL, Foreign Registered Shares Commercial lending company | 1,299,500 | 1,295,031 |
Tisco Financial Group PCL Bank holding company | 1,305,600 | 3,307,159 |
Total | 6,934,984 | |
Turkey 0.4% | ||
Logo Yazilim Sanayi Ve Ticaret AS(a) Enterprise resource planning software | 217,994 | 1,995,892 |
United Kingdom 12.9% | ||
Ascential PLC Media and consultancy services | 1,286,925 | 7,660,928 |
Assura PLC Primary healthcare property group | 6,121,522 | 4,649,501 |
Big Yellow Group PLC Self-storage company | 266,407 | 3,339,578 |
Domino’s Pizza Group PLC Pizza delivery stores | 859,955 | 3,924,775 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Halma PLC Products that detect hazards and protect assets and people in public and commercial buildings | 371,552 | 6,690,279 |
Hastings Group Holdings PLC General insurance services to the automobile and home insurance products | 2,324,929 | 7,790,946 |
Intermediate Capital Group PLC Private equity firm | 374,073 | 5,419,161 |
Polypipe Group PLC Plastic piping systems | 1,086,763 | 5,506,705 |
Rightmove PLC Website that lists properties across Britain | 120,649 | 8,433,664 |
Spirax-Sarco Engineering PLC Consultation, service and products for the control and efficient management of steam and industrial fluids | 82,749 | 7,096,026 |
WH Smith PLC Retails books, magazines, newspapers, and periodicals | 334,071 | 8,793,442 |
Total | 69,305,005 | |
United States 1.1% | ||
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 78,887 | 6,064,044 |
Total Common Stocks (Cost: $409,510,310) | 528,309,271 | |
Securities Lending Collateral 0.6% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 1.810%(c),(d) | 2,839,250 | 2,839,250 |
Total Securities Lending Collateral (Cost: $2,839,250) | 2,839,250 | |
Wanger International | Semiannual Report 2018 | 11 |
Table of Contents
June 30, 2018 (Unaudited)
Money Market Funds 1.5% | ||
Shares | Value ($) | |
JPMorgan U.S. Government Money Market Fund, Agency Shares, 1.713%(c) | 142,916 | 142,916 |
JPMorgan U.S. Government Money Market Fund, IM Shares, 1.819%(c) | 7,975,018 | 7,975,018 |
Total Money Market Funds (Cost: $8,117,934) | 8,117,934 | |
Total Investments in Securities (Cost: $420,467,494) | 539,266,455 | |
Obligation to Return Collateral for Securities Loaned | (2,839,250) | |
Other Assets & Liabilities, Net | 863,428 | |
Net Assets | $537,290,633 |
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at June 30, 2018. The total market value of securities on loan at June 30, 2018 was $2,770,527. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2018. |
(d) | Investment made with cash collateral received from securities lending activity. |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
12 | Wanger International | Semiannual Report 2018 |
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June 30, 2018 (Unaudited)
For investments categorized as Level 3, the significant unobservable inputs used in the fair value measurement of the Fund’s securities may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. Significant changes in any of these factors could result in lower or higher fair value measurements. Various factors impact the frequency of monitoring (which may occur as often as daily), however the Committee may determine that changes to inputs, assumptions and models are not required with the same frequency.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Australia | — | 10,949,321 | — | 10,949,321 |
Belgium | — | 3,649,649 | — | 3,649,649 |
Brazil | 3,191,909 | — | — | 3,191,909 |
Cambodia | — | 8,269,550 | — | 8,269,550 |
Canada | 23,101,329 | — | — | 23,101,329 |
Cayman Islands | 4,086,757 | 12,634,103 | — | 16,720,860 |
China | 1,855,648 | 2,324,486 | — | 4,180,134 |
Denmark | — | 14,579,964 | — | 14,579,964 |
Finland | — | 4,042,475 | — | 4,042,475 |
France | — | 7,046,796 | — | 7,046,796 |
Germany | — | 47,107,352 | — | 47,107,352 |
Hong Kong | — | 14,175,152 | — | 14,175,152 |
India | — | 10,652,934 | — | 10,652,934 |
Indonesia | — | 5,308,813 | — | 5,308,813 |
Ireland | — | 6,018,548 | — | 6,018,548 |
Italy | — | 15,670,949 | — | 15,670,949 |
Japan | — | 114,666,910 | — | 114,666,910 |
Malta | — | 8,968,276 | — | 8,968,276 |
Mexico | 2,708,107 | — | — | 2,708,107 |
Netherlands | — | 6,656,242 | — | 6,656,242 |
New Zealand | — | 7,239,340 | — | 7,239,340 |
Norway | — | 10,556,340 | — | 10,556,340 |
Poland | — | 2,427,439 | — | 2,427,439 |
Russian Federation | — | 4,083,261 | — | 4,083,261 |
Singapore | — | 4,862,045 | — | 4,862,045 |
South Africa | — | 10,435,819 | — | 10,435,819 |
South Korea | — | 23,127,306 | — | 23,127,306 |
Spain | — | 4,466,566 | — | 4,466,566 |
Sweden | — | 16,910,331 | — | 16,910,331 |
Switzerland | — | 15,577,685 | — | 15,577,685 |
Taiwan | — | 16,657,944 | — | 16,657,944 |
Thailand | — | 6,934,984 | — | 6,934,984 |
Turkey | — | 1,995,892 | — | 1,995,892 |
United Kingdom | — | 69,305,005 | — | 69,305,005 |
United States | 6,064,044 | — | — | 6,064,044 |
Total Common Stocks | 41,007,794 | 487,301,477 | — | 528,309,271 |
Securities Lending Collateral | 2,839,250 | — | — | 2,839,250 |
Money Market Funds | 8,117,934 | — | — | 8,117,934 |
Total Investments in Securities | 51,964,978 | 487,301,477 | — | 539,266,455 |
Wanger International | Semiannual Report 2018 | 13 |
Table of Contents
June 30, 2018 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $420,467,494) | $539,266,455 |
Foreign currency (cost $155,359) | 155,381 |
Receivable for: | |
Investments sold | 415,550 |
Capital shares sold | 137,386 |
Dividends | 683,411 |
Securities lending income | 9,923 |
Foreign tax reclaims | 514,093 |
Prepaid expenses | 4,253 |
Trustees’ deferred compensation plan | 234,740 |
Total assets | 541,421,192 |
Liabilities | |
Due to custodian | 92,589 |
Due upon return of securities on loan | 2,839,250 |
Payable for: | |
Investments purchased | 553,149 |
Capital shares purchased | 220,495 |
Investment advisory fee | 13,773 |
Administration fees | 728 |
Trustees’ fees | 239 |
Other expenses | 175,596 |
Trustees’ deferred compensation plan | 234,740 |
Total liabilities | 4,130,559 |
Net assets applicable to outstanding capital stock | $537,290,633 |
Represented by | |
Paid in capital | 394,014,128 |
Excess of distributions over net investment income | (2,655,293) |
Accumulated net realized gain | 27,129,396 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 118,798,961 |
Foreign currency translations | 3,441 |
Total - representing net assets applicable to outstanding capital stock | $537,290,633 |
Shares outstanding | 20,152,326 |
Net asset value per share | 26.66 |
* Value of securities on loan | 2,770,527 |
14 | Wanger International | Semiannual Report 2018 |
Table of Contents
Six Months Ended June 30, 2018 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $8,304,428 |
Interest | 677 |
Income from securities lending — net | 145,075 |
Foreign taxes withheld | (711,869) |
Total income | 7,738,311 |
Expenses: | |
Investment advisory fee | 2,677,210 |
Service fees | 208,123 |
Administration fees | 143,174 |
Trustees’ fees | 28,420 |
Custodian fees | 105,261 |
Printing and postage fees | 101,164 |
Audit fees | 52,177 |
Legal fees | 45,030 |
Compensation of chief compliance officer | 907 |
Other | 20,000 |
Total expenses | 3,381,466 |
Fees waived by transfer agent | (208,123) |
Total net expenses | 3,173,343 |
Net investment income | 4,564,968 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 28,500,769 |
Foreign currency translations | (151,563) |
Net realized gain | 28,349,206 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (39,372,877) |
Foreign currency translations | (11,777) |
Net change in unrealized appreciation (depreciation) | (39,384,654) |
Net realized and unrealized loss | (11,035,448) |
Net decrease in net assets resulting from operations | $(6,470,480) |
Wanger International | Semiannual Report 2018 | 15 |
Table of Contents
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, 2017 | |
Operations | ||
Net investment income | $4,564,968 | $5,060,397 |
Net realized gain | 28,349,206 | 64,149,569 |
Net change in unrealized appreciation (depreciation) | (39,384,654) | 85,449,197 |
Net increase (decrease) in net assets resulting from operations | (6,470,480) | 154,659,163 |
Distributions to shareholders | ||
Net investment income | (10,078,520) | (6,572,360) |
Net realized gains | (60,271,441) | (4,004,590) |
Total distributions to shareholders | (70,349,961) | (10,576,950) |
Increase (decrease) in net assets from capital stock activity | 36,023,268 | (60,789,221) |
Total increase (decrease) in net assets | (40,797,173) | 83,292,992 |
Net assets at beginning of period | 578,087,806 | 494,794,814 |
Net assets at end of period | $537,290,633 | $578,087,806 |
Undistributed (excess of distributions over) net investment income | $(2,655,293) | $2,858,259 |
Six Months Ended | Year Ended | |||
June 30, 2018 (Unaudited) | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 145,271 | 4,478,960 | 501,656 | 13,324,413 |
Distributions reinvested | 2,508,020 | 70,349,961 | 366,553 | 10,576,950 |
Redemptions | (1,242,819) | (38,805,653) | (3,058,127) | (84,690,584) |
Total net increase (decrease) | 1,410,472 | 36,023,268 | (2,189,918) | (60,789,221) |
16 | Wanger International | Semiannual Report 2018 |
Table of Contents
Six Months Ended June 30, 2018 (Unaudited) | Year Ended December 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Per share data | ||||||
Net asset value, beginning of period | $30.84 | $23.64 | $26.32 | $29.07 | $34.55 | $31.19 |
Income from investment operations: | ||||||
Net investment income | 0.25 | 0.25 | 0.31 | 0.31 | 0.36 | 0.39 |
Net realized and unrealized gain (loss) | (0.46) | 7.49 | (0.56) | (0.09) | (1.56) | 6.18 |
Total from investment operations | (0.21) | 7.74 | (0.25) | 0.22 | (1.20) | 6.57 |
Less distributions to shareholders from: | ||||||
Net investment income | (0.57) | (0.34) | (0.29) | (0.41) | (0.48) | (0.88) |
Net realized gains | (3.40) | (0.20) | (2.14) | (2.57) | (3.80) | (2.33) |
Total distributions to shareholders | (3.97) | (0.54) | (2.43) | (2.98) | (4.28) | (3.21) |
Proceeds from regulatory settlements | — | — | — | 0.01 | — | — |
Net asset value, end of period | $26.66 | $30.84 | $23.64 | $26.32 | $29.07 | $34.55 |
Total return | (1.33)% (a) | 32.91% (a) | (1.41)% | 0.10% (b) | (4.40)% | 22.37% |
Ratios to average net assets | ||||||
Total gross expenses(c) | 1.18% (d) | 1.16% | 1.08% (e) | 1.12% | 1.05% | 1.07% |
Total net expenses(c) | 1.11% (d) | 1.12% | 1.08% (e) | 1.12% | 1.05% | 1.07% |
Net investment income | 1.59% (d) | 0.92% | 1.23% | 1.11% | 1.10% | 1.19% |
Supplemental data | ||||||
Portfolio turnover | 22% | 55% | 56% | 53% | 28% | 44% |
Net assets, end of period (in thousands) | $537,291 | $578,088 | $494,795 | $586,629 | $667,023 | $784,977 |
Notes to Financial Highlights | |
(a) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(b) | The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.02%. |
(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. 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. |
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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 | $2,770,527 | $— | $— | $— | $2,770,527 |
Gross amount of recognized liabilities for securities lending (collateral received) | 2,839,250 | ||||
Amounts due to counterparty in the event of default | $68,723 |
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June 30, 2018 (Unaudited)
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities loaned | 2,839,250 |
Total Liabilities | 2,839,250 |
Total Financial and Derivative Net Assets | (2,839,250) |
Financial Instruments | 2,770,527 |
Net Amount (a) | (68,723) |
(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% |
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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% |
$8 billion and over | 0.02% |
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June 30, 2018 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
420,467,000 | 141,062,000 | (22,263,000) | 118,799,000 |
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![](https://capedge.com/proxy/N-CSRS/0001193125-18-264660/g574300img2b5dd9822.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.
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Item 11. Controls and Procedures.
(a) | The registrant’s principal executive officer and principal financial officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that material information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
(b) | There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable for semiannual reports.
(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/ Alan Berkshire | |||||||
Alan Berkshire, President and Principal Executive Officer |
Date | August 17, 2018 |
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/ Alan Berkshire | |||||||
Alan Berkshire, President and Principal Executive Officer |
Date | August 17, 2018 |
By (Signature and Title) | /s/ John M. Kunka | |||||||
John M. Kunka, Treasurer and Principal Accounting and Financial Officer |
Date | August 17, 2018 |