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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-08748
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: December 31, 2018
FormN-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 Rule30e-1 under the Investment Company Act of 1940 (17 CFR270.30e-1). The Commission may use the information provided on FormN-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by FormN-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in FormN-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
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Item 1. Reports to Stockholders.
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December 31, 2018
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Average annual total returns (%) (for the period ended December 31, 2018) | ||||||
Inception | 1 Year | 5 Years | 10 Years | Life | ||
Wanger USA | 05/03/95 | -1.46 | 6.89 | 14.26 | 11.25 | |
Russell 2000 Growth Index | -9.31 | 5.13 | 13.52 | - |
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Top ten holdings (%) (at December 31, 2018) | |
Unifirst Corp. Workplace uniforms and protective clothing | 1.9 |
CyberArk Software Ltd. IT security solutions | 1.8 |
Houlihan Lokey, Inc. Investment bank | 1.7 |
Inter Parfums, Inc. Fragrances and related products | 1.7 |
Chemed Corp. Hospice and palliative care services | 1.6 |
Cedar Fair LP Owns and operates amusement parks | 1.6 |
Dave & Buster’s Entertainment, Inc. Venues that combine dining and entertainment for adults and families | 1.6 |
Central Garden & Pet Co. Lawn, garden & pet supply products | 1.5 |
Dorman Products, Inc. Automotive products and home hardware | 1.5 |
Alteryx, Inc., Class A Data storage, retrieval, management, reporting, and analytics solutions | 1.5 |
Portfolio breakdown (%) (at December 31, 2018) | |
Common Stocks | 91.8 |
Limited Partnerships | 1.5 |
Money Market Funds | 4.5 |
Securities Lending Collateral | 2.2 |
Total | 100.0 |
Equity sector breakdown (%) (at December 31, 2018) | |
Communication Services | 0.8 |
Consumer Discretionary | 19.7 |
Consumer Staples | 6.3 |
Energy | 1.1 |
Financials | 13.2 |
Health Care | 20.0 |
Industrials | 11.1 |
Information Technology | 21.3 |
Materials | 2.6 |
Real Estate | 3.9 |
Total | 100.0 |
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(Unaudited)
July 1, 2018 — December 31, 2018 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger USA | 1,000.00 | 1,000.00 | 852.40 | 1,020.22 | 4.74 | 5.17 | 1.01 |
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December 31, 2018
Common Stocks 93.8% | ||
Issuer | Shares | Value ($) |
Communication Services 0.8% | ||
Interactive Media & Services 0.8% | ||
Care.com, Inc.(a) Child, adult, senior, pet and home care services | 234,573 | 4,529,605 |
Total Communication Services | 4,529,605 | |
Consumer Discretionary 17.2% | ||
Auto Components 3.4% | ||
Cooper-Standard Holding, Inc.(a) Sealing, fuel and brake delivery, fluid transfer systems, anti-vibration systems components, subsystems, and modules | 55,749 | 3,463,128 |
Dorman Products, Inc.(a) Automotive products and home hardware | 92,235 | 8,302,995 |
LCI Industries Recreational vehicles and equipment | 84,103 | 5,618,080 |
Visteon Corp.(a) Automotive systems, modules and components | 39,113 | 2,357,732 |
Total | 19,741,935 | |
Distributors 0.9% | ||
Pool Corp. Swimming pool supplies, equipment and leisure products | 32,628 | 4,850,152 |
Diversified Consumer Services 0.8% | ||
Adtalem Global Education, Inc.(a) Higher education institutions | 102,094 | 4,831,088 |
Hotels, Restaurants & Leisure 7.5% | ||
Choice Hotels International, Inc. Vacation rental properties, travel tips and other services | 55,111 | 3,944,845 |
Churchill Downs, Inc. Horse racing company, home of the Kentucky Derby | 25,572 | 6,238,034 |
Dave & Buster’s Entertainment, Inc. Venues that combine dining and entertainment for adults and families | 198,094 | 8,827,069 |
Extended Stay America, Inc. Hotels and motels | 510,899 | 7,918,935 |
Red Rock Resorts, Inc., Class A Casino & entertainment properties | 290,882 | 5,907,814 |
Six Flags Entertainment Corp. Theme parks across North America | 53,137 | 2,956,011 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Texas Roadhouse, Inc. Moderately priced, full service restaurant chain | 68,829 | 4,109,091 |
Wingstop, Inc. Cooked-to-order chicken wings | 56,949 | 3,655,556 |
Total | 43,557,355 | |
Household Durables 2.3% | ||
Cavco Industries, Inc.(a) Designs and manufactures systems-built structures | 24,935 | 3,251,025 |
Helen of Troy Ltd.(a) Brand-name hair and comfort products | 26,967 | 3,537,531 |
iRobot Corp.(a),(b) Manufactures robots for cleaning | 51,580 | 4,319,309 |
Skyline Champion Corp. Factory-built housing | 167,475 | 2,460,208 |
Total | 13,568,073 | |
Leisure Products 1.7% | ||
Brunswick Corp. Consumer products serving the outdoor and indoor active recreation markets | 88,562 | 4,113,705 |
MasterCraft Boat Holdings, Inc.(a) Recreational powerboats | 318,318 | 5,952,546 |
Total | 10,066,251 | |
Specialty Retail 0.6% | ||
Boot Barn Holdings, Inc.(a) Western and work gear | 215,000 | 3,661,450 |
Total Consumer Discretionary | 100,276,304 | |
Consumer Staples 6.0% | ||
Beverages 0.9% | ||
MGP Ingredients, Inc. Distillery ingredients and products | 84,922 | 4,844,800 |
Food & Staples Retailing 0.9% | ||
BJ’s Wholesale Club Holdings, Inc.(a) Warehouse club | 237,289 | 5,258,324 |
Household Products 2.6% | ||
Central Garden & Pet Co.(a) Lawn, garden & pet supply products | 243,823 | 8,399,703 |
WD-40 Co. Multi-purpose lubricant products and heavy-duty hand cleaners | 37,331 | 6,841,279 |
Total | 15,240,982 |
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December 31, 2018
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Personal Products 1.6% | ||
Inter Parfums, Inc. Fragrances and related products | 142,423 | 9,338,676 |
Total Consumer Staples | 34,682,782 | |
Energy 1.0% | ||
Energy Equipment & Services 0.4% | ||
Core Laboratories NV Reservoir description, production enhancement, and reservoir management services | 42,779 | 2,552,195 |
Oil, Gas & Consumable Fuels 0.6% | ||
Callon Petroleum Co.(a) Independent energy company | 515,000 | 3,342,350 |
Total Energy | 5,894,545 | |
Financials 12.6% | ||
Banks 5.7% | ||
First Busey Corp. Multi-bank holding company | 260,419 | 6,390,682 |
Great Southern Bancorp, Inc. Real estate, commercial real estate, commercial business, consumer, and construction loans | 107,537 | 4,949,928 |
Lakeland Financial Corp. Bank holding company | 161,369 | 6,480,579 |
OFG Bancorp Holding company for Oriental Bank | 344,942 | 5,677,745 |
Sandy Spring Bancorp, Inc. Holding company for Sandy Spring Bank | 163,328 | 5,118,700 |
Trico Bancshares Holding company for Tri Counties Bank | 130,375 | 4,405,371 |
Total | 33,023,005 | |
Capital Markets 3.7% | ||
Ares Management Corp., Class A Asset management firm | 262,569 | 4,668,477 |
Hamilton Lane, Inc., Class A Private market investment solutions | 82,788 | 3,063,156 |
Houlihan Lokey, Inc. Investment bank | 258,109 | 9,498,411 |
OM Asset Management Plc Asset management company | 404,287 | 4,317,785 |
Total | 21,547,829 | |
Consumer Finance 0.7% | ||
FirstCash, Inc. Owns and operates pawn stores | 57,271 | 4,143,557 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Thrifts & Mortgage Finance 2.5% | ||
Merchants Bancorp Bank holding company | 200,652 | 4,005,014 |
OceanFirst Financial Corp. New Jersey banks | 241,335 | 5,432,451 |
Walker & Dunlop, Inc. Commercial real estate financial services | 114,104 | 4,934,998 |
Total | 14,372,463 | |
Total Financials | 73,086,854 | |
Health Care 19.1% | ||
Biotechnology 6.8% | ||
Agios Pharmaceuticals, Inc.(a) Therapeutics in the field of cancer metabolism | 93,776 | 4,324,011 |
Amicus Therapeutics, Inc.(a) Orally-administered, small molecule drugs to treat human genetic diseases | 526,360 | 5,042,529 |
Enanta Pharmaceuticals, Inc.(a) Pharmaceutical products | 62,816 | 4,449,257 |
Kiniksa Pharmaceuticals Ltd., Class A(a),(b) Clinical-stage biopharmaceutical company | 165,834 | 4,658,277 |
Ligand Pharmaceuticals, Inc.(a) Drugs that regulate hormone activated intracellular receptors | 39,140 | 5,311,298 |
Loxo Oncology, Inc.(a) Researches and develops cancer drugs | 35,564 | 4,981,450 |
MacroGenics, Inc.(a) Treatments for autoimmune disorders, cancer and infectious diseases | 342,006 | 4,343,476 |
Repligen Corp.(a) Supplier to Biopharma Industry | 61,329 | 3,234,492 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 77,723 | 3,379,396 |
Total | 39,724,186 | |
Health Care Equipment & Supplies 6.6% | ||
Atrion Corp. Medical products and components | 9,303 | 6,894,267 |
AxoGen, Inc.(a) Technologies for peripheral nerve reconstruction and regeneration | 272,223 | 5,561,516 |
Cerus Corp.(a) Systems to enhance the safety of blood transfusions | 593,000 | 3,006,510 |
iRhythm Technologies, Inc.(a) Medical instruments | 66,434 | 4,615,834 |
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December 31, 2018
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Orthofix Medical, Inc.(a) Spine fixation, biological, and other orthopedic and spine solutions | 83,843 | 4,400,919 |
Sientra, Inc.(a) Plastic surgery implantable devices | 214,737 | 2,729,307 |
Tactile Systems Technology, Inc.(a) Technology for treating lymphedema, chronic swelling & venous ulcers | 114,258 | 5,204,452 |
Tandem Diabetes Care, Inc.(a) Produces medical devices | 153,406 | 5,824,826 |
Total | 38,237,631 | |
Health Care Providers & Services 3.7% | ||
AMN Healthcare Services, Inc.(a) Temporary healthcare staffing | 82,571 | 4,678,473 |
Chemed Corp. Hospice and palliative care services | 32,255 | 9,137,197 |
HealthEquity, Inc.(a) Technology-enabled services platforms for consumers to make healthcare saving and spending decisions | 66,856 | 3,987,960 |
Tivity Health, Inc.(a) Health fitness solutions | 137,458 | 3,410,333 |
Total | 21,213,963 | |
Pharmaceuticals 2.0% | ||
GW Pharmaceuticals PLC, ADR(a) Cannabinoid prescription medicines | 40,341 | 3,928,810 |
Optinose, Inc.(a),(b) Health care services | 558,460 | 3,462,452 |
Reata Pharmaceuticals, Inc., Class A(a) Biopharmaceutical company | 79,070 | 4,435,827 |
Total | 11,827,089 | |
Total Health Care | 111,002,869 | |
Industrials 10.6% | ||
Aerospace & Defense 0.8% | ||
BWX Technologies, Inc. Nuclear components and fuel | 115,831 | 4,428,219 |
Commercial Services & Supplies 3.1% | ||
Brink’s Co. (The) Provides security services globally | 50,180 | 3,244,137 |
Healthcare Services Group, Inc.(b) Housekeeping, laundry, linen, facility maintenance, and food services | 117,422 | 4,718,016 |
Unifirst Corp. Workplace uniforms and protective clothing | 72,631 | 10,391,317 |
Total | 18,353,470 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Machinery 2.4% | ||
ITT, Inc. Engineered components & customized technology solutions | 108,601 | 5,242,170 |
Toro Co. (The) Turf equipment | 63,070 | 3,524,352 |
Woodward, Inc. Energy control systems and components for aircraft, industrial engines and turbines | 72,088 | 5,355,417 |
Total | 14,121,939 | |
Professional Services 1.8% | ||
Exponent, Inc. Science and engineering consulting firm | 119,253 | 6,047,320 |
ICF International, Inc. Management, technology, policy consulting, and implementation services | 65,401 | 4,236,677 |
Total | 10,283,997 | |
Road & Rail 1.6% | ||
Landstar System, Inc. Truckload carrier | 40,451 | 3,869,947 |
Saia, Inc.(a) Trucking transportation | 101,808 | 5,682,923 |
Total | 9,552,870 | |
Trading Companies & Distributors 0.9% | ||
SiteOne Landscape Supply, Inc.(a) Landscape supplies | 90,941 | 5,026,309 |
Total Industrials | 61,766,804 | |
Information Technology 20.3% | ||
Electronic Equipment, Instruments & Components 1.7% | ||
ePlus, Inc.(a) Provides IT hardware, software and services | 83,447 | 5,938,923 |
Novanta, Inc.(a) Precision photonics and motion control components and subsystems | 58,877 | 3,709,251 |
Total | 9,648,174 |
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Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
IT Services 2.2% | ||
CoreLogic, Inc.(a) Consumer, financial and property information, analytics and services to business and government | 73,787 | 2,465,962 |
Endava PLC, ADR(a) IT services | 151,838 | 3,680,553 |
Hackett Group Business consulting and technology implementation | 218,842 | 3,503,661 |
Science Applications International Corp. Scientific, Engineering and technology consulting services | 49,932 | 3,180,668 |
Total | 12,830,844 | |
Semiconductors & Semiconductor Equipment 3.4% | ||
Advanced Energy Industries, Inc.(a) Engineered precision power conversion, measurement and control solutions | 101,849 | 4,372,377 |
Entegris, Inc. Microelectronics materials management | 130,556 | 3,641,860 |
Inphi Corp.(a) Analog semiconductor solutions | 132,972 | 4,275,050 |
MKS Instruments, Inc. Instruments and components used to control and analyze gases in semiconductor manufacturing | 52,864 | 3,415,543 |
Semtech Corp.(a) Analog and mixed-signal semiconductors | 94,620 | 4,340,219 |
Total | 20,045,049 | |
Software 13.0% | ||
Alteryx, Inc., Class A(a) Data storage, retrieval, management, reporting, and analytics solutions | 138,776 | 8,253,009 |
Anaplan, Inc.(a),(b) Cloud platform for business applications | 143,249 | 3,801,828 |
Blackline, Inc.(a) Develops and markets enterprise software | 142,222 | 5,823,991 |
CyberArk Software Ltd.(a) IT security solutions | 133,456 | 9,894,428 |
j2 Global, Inc. Cloud-based communications and storage messaging services | 72,400 | 5,023,112 |
Manhattan Associates, Inc.(a) Information technology solutions for distribution centers | 137,227 | 5,814,308 |
Mimecast Ltd.(a) Cloud security and risk management services for corporate information and email | 199,399 | 6,705,788 |
MINDBODY, Inc., Class A(a) Business management software | 198,173 | 7,213,497 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Q2 Holdings, Inc.(a) Secure, cloud-based virtual banking solutions | 77,724 | 3,851,224 |
Qualys, Inc.(a) Information technology security risk and compliance management solutions | 106,501 | 7,959,885 |
Zscaler, Inc.(a) Cloud-based internet security platform | 150,857 | 5,915,103 |
Zuora, Inc., Class A(a) Develops cloud based software | 308,311 | 5,592,762 |
Total | 75,848,935 | |
Total Information Technology | 118,373,002 | |
Materials 2.5% | ||
Chemicals 2.5% | ||
Orion Engineered Carbons SA Global supplier of Carbon Black | 255,495 | 6,458,913 |
PolyOne Corp. International polymer services company | 133,247 | 3,810,864 |
Quaker Chemical Corp. Custom-formulated chemical specialty products | 24,763 | 4,400,633 |
Total | 14,670,410 | |
Total Materials | 14,670,410 | |
Real Estate 3.7% | ||
Equity Real Estate Investment Trusts (REITS) 2.1% | ||
Coresite Realty Corp. Develops, owns & operates data centers | 70,553 | 6,154,338 |
UMH Properties, Inc. Real estate investment trust | 508,782 | 6,023,979 |
Total | 12,178,317 | |
Real Estate Management & Development 1.6% | ||
Colliers International Group, Inc. Commercial real estate, residential property management and property services | 82,145 | 4,521,261 |
FirstService Corp. Real estate services | 70,500 | 4,827,840 |
Total | 9,349,101 | |
Total Real Estate | 21,527,418 | |
Total Common Stocks (Cost: $520,022,313) | 545,810,593 | |
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December 31, 2018
Limited Partnerships 1.5% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 1.5% | ||
Hotels, Restaurants & Leisure 1.5% | ||
Cedar Fair LP Owns and operates amusement parks | 187,034 | 8,846,708 |
Total Consumer Discretionary | 8,846,708 | |
Total Limited Partnerships (Cost: $10,466,812) | 8,846,708 | |
Securities Lending Collateral 2.2% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.372%(c),(d) | 13,137,290 | 13,137,290 |
Total Securities Lending Collateral (Cost: $13,137,290) | 13,137,290 | |
Money Market Funds 4.6% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 2.459%(c),(e) | 26,682,465 | 26,679,797 |
Total Money Market Funds (Cost: $26,679,797) | 26,679,797 | |
Total Investments in Securities (Cost $570,306,212) | 594,474,388 | |
Obligation to Return Collateral for Securities Loaned | (13,137,290) | |
Other Assets & Liabilities, Net | 653,464 | |
Net Assets | $581,990,562 |
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at December 31, 2018. The total market value of securities on loan at December 31, 2018 was $13,684,905. |
(c) | The rate shown is the seven-day current annualized yield at December 31, 2018. |
(d) | Investment made with cash collateral received from securities lending activity. |
(e) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the year ended December 31, 2018 are as follows: |
Issuer | Beginning shares | Shares purchased | Shares sold | Ending shares | Realized gain (loss) — affiliated issuers ($) | Net change in unrealized appreciation (depreciation) — affiliated issuers ($) | Dividend — affiliated issuers ($) | Value — affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 2.459% | ||||||||
— | 179,942,424 | (153,259,959) | 26,682,465 | — | — | 167,066 | 26,679,797 |
ADR | American Depositary Receipt |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
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December 31, 2018
foreign currency exchange contracts and short-term investments valued at amortized cost. Additionally, securities fair valued by Columbia Wanger Asset Management’s Valuation Committee (the Committee) that rely on significant observable inputs are also included in Level 2. Typical Level 3 securities include any security fair valued by the Committee that relies on significant unobservable inputs.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Investments measured at net asset value ($) | Total ($) | |
Investments in Securities | |||||
Common Stocks | |||||
Communication Services | 4,529,605 | — | — | — | 4,529,605 |
Consumer Discretionary | 100,276,304 | — | — | — | 100,276,304 |
Consumer Staples | 34,682,782 | — | — | — | 34,682,782 |
Energy | 5,894,545 | — | — | — | 5,894,545 |
Financials | 73,086,854 | — | — | — | 73,086,854 |
Health Care | 111,002,869 | — | — | — | 111,002,869 |
Industrials | 61,766,804 | — | — | — | 61,766,804 |
Information Technology | 118,373,002 | — | — | — | 118,373,002 |
Materials | 14,670,410 | — | — | — | 14,670,410 |
Real Estate | 21,527,418 | — | — | — | 21,527,418 |
Total Common Stocks | 545,810,593 | — | — | — | 545,810,593 |
Limited Partnerships | |||||
Consumer Discretionary | 8,846,708 | — | — | — | 8,846,708 |
Securities Lending Collateral | 13,137,290 | — | — | — | 13,137,290 |
Money Market Funds | — | — | — | 26,679,797 | 26,679,797 |
Total Investments in Securities | 567,794,591 | — | — | 26,679,797 | 594,474,388 |
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December 31, 2018
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $543,626,415) | $567,794,591 |
Affiliated issuers (cost $26,679,797) | 26,679,797 |
Cash | 867,000 |
Receivable for: | |
Capital shares sold | 714,905 |
Dividends | 452,619 |
Securities lending income | 6,108 |
Foreign tax reclaims | 1,362 |
Prepaid expenses | 18,394 |
Trustees’ deferred compensation plan | 204,204 |
Total assets | 596,738,980 |
Liabilities | |
Due upon return of securities on loan | 14,004,290 |
Payable for: | |
Capital shares purchased | 334,642 |
Investment advisory fee | 41,238 |
Service fees | 60,689 |
Administration fees | 2,369 |
Compensation of chief compliance officer | 1,174 |
Other expenses | 99,812 |
Trustees’ deferred compensation plan | 204,204 |
Total liabilities | 14,748,418 |
Net assets applicable to outstanding capital stock | $581,990,562 |
Represented by | |
Paid in capital | 445,552,158 |
Total distributable earnings (loss) (Note 2) | 136,438,404 |
Total - representing net assets applicable to outstanding capital stock | $581,990,562 |
Shares outstanding | 28,113,809 |
Net asset value per share | 20.70 |
* Includes the value of securities on loan | 13,684,905 |
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Year Ended December 31, 2018
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $5,964,320 |
Dividends — affiliated issuers | 167,066 |
Income from securities lending — net | 333,212 |
Foreign taxes withheld | (57,834) |
Total income | 6,406,764 |
Expenses: | |
Investment advisory fee | 6,105,538 |
Service fees | 554,135 |
Administration fees | 352,951 |
Trustees’ fees | 65,401 |
Custodian fees | 11,634 |
Printing and postage fees | 158,392 |
Audit fees | 41,213 |
Legal fees | 110,814 |
Compensation of chief compliance officer | 2,299 |
Other | 38,958 |
Total expenses | 7,441,335 |
Fees waived by transfer agent | (412,152) |
Total net expenses | 7,029,183 |
Net investment loss | (622,419) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 115,134,937 |
Net realized gain | 115,134,937 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (113,466,197) |
Net change in unrealized appreciation (depreciation) | (113,466,197) |
Net realized and unrealized gain | 1,668,740 |
Net increase in net assets resulting from operations | $1,046,321 |
Wanger USA | Annual Report 2018 | 15 |
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Year Ended December 31, 2018 | Year Ended December 31, 2017 | |
Operations | ||
Net investment loss | $(622,419) | $(528,477) |
Net realized gain | 115,134,937 | 163,958,845 |
Net change in unrealized appreciation (depreciation) | (113,466,197) | (42,319,867) |
Net increase in net assets resulting from operations | 1,046,321 | 121,110,501 |
Distributions to shareholders | ||
Net investment income and net realized gains | (161,967,932) | |
Net realized gains | (108,009,366) | |
Total distributions to shareholders (Note 2) | (161,967,932) | (108,009,366) |
Increase in net assets from capital stock activity | 58,200,283 | 7,375,038 |
Total increase (decrease) in net assets | (102,721,328) | 20,476,173 |
Net assets at beginning of year | 684,711,890 | 664,235,717 |
Net assets at end of year | $581,990,562 | $684,711,890 |
Undistributed (excess of distributions over) net investment income | $102,427 | $(152,351) |
Year Ended | Year Ended | |||
December 31, 2018 | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 912,955 | 23,287,444 | 368,297 | 9,709,107 |
Distributions reinvested | 6,526,840 | 161,967,932 | 4,399,567 | 108,009,366 |
Redemptions | (4,929,560) | (127,055,093) | (4,199,383) | (110,343,435) |
Total net increase | 2,510,235 | 58,200,283 | 568,481 | 7,375,038 |
16 | Wanger USA | Annual Report 2018 |
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Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | |
Per share data | |||||
Net asset value, beginning of period | $26.74 | $26.53 | $31.75 | $37.71 | $41.13 |
Income from investment operations: | |||||
Net investment income (loss) | (0.02) | (0.02) | (0.04) | (0.12) | (0.06) |
Net realized and unrealized gain | 0.75 | 4.81 | 3.56 | 0.45 | 1.70 |
Total from investment operations | 0.73 | 4.79 | 3.52 | 0.33 | 1.64 |
Less distributions to shareholders from: | |||||
Net investment income | (0.03) | — | — | — | — |
Net realized gains | (6.74) | (4.58) | (8.74) | (6.29) | (5.06) |
Total distributions to shareholders | (6.77) | (4.58) | (8.74) | (6.29) | (5.06) |
Net asset value, end of period | $20.70 | $26.74 | $26.53 | $31.75 | $37.71 |
Total return | (1.46)%(a) | 19.58%(a) | 13.69% | (0.61)% | 4.78% |
Ratios to average net assets | |||||
Total gross expenses(b) | 1.05% | 1.03% | 1.00% | 1.01% | 0.96% |
Total net expenses(b) | 1.00% | 0.99% | 1.00% | 1.01% | 0.96% |
Net investment loss | (0.09)% | (0.08)% | (0.16)% | (0.34)% | (0.15)% |
Supplemental data | |||||
Portfolio turnover | 81% | 96% | 118% | 45% | 14% |
Net assets, end of period (in thousands) | $581,991 | $684,712 | $664,236 | $692,605 | $800,933 |
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) | 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. |
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18 | Wanger USA | Annual Report 2018 |
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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 | $13,684,905 | $— | $— | $— | $13,684,905 |
Gross amount of recognized liabilities for securities lending (collateral received) | 14,004,290 | ||||
Amounts due to counterparty in the event of default | $319,385 |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 14,004,290 |
Total Liabilities | 14,004,290 |
Total Financial and Derivative Net Assets | (14,004,290) |
Financial Instruments | 13,684,905 |
Net Amount(a) | (319,385) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
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20 | Wanger USA | Annual Report 2018 |
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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% |
Wanger USA | Annual Report 2018 | 21 |
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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% |
$8 billion and over | 0.02% |
22 | Wanger USA | Annual Report 2018 |
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December 31, 2018
Undistributed net investment income ($) | Accumulated net realized gain ($) | Paid in capital ($) |
1,523,184 | (1,523,184) | — |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | ||||
Ordinary income ($) | Long-term capital gains ($) | Total ($) | Ordinary income ($) | Long-term capital gains ($) | Total ($) |
42,836,331 | 119,131,601 | 161,967,932 | — | 108,009,366 | 108,009,366 |
Undistributed ordinary income ($) | Undistributed long-term capital gains ($) | Capital loss carryforwards ($) | Net unrealized appreciation ($) |
28,331,923 | 87,004,469 | — | 21,269,505 |
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
573,204,883 | 95,378,946 | (74,109,441) | 21,269,505 |
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(Unaudited)
Dividends received deduction | Capital gain dividend |
0.21% | $91,428,242 |
Wanger USA | Annual Report 2018 | 27 |
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Shareholder Services Group
227 W. Monroe, Suite 3000
Chicago, IL 60606
800.922.6769
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
Laura M. Born, 53, Chair | 2007 | Adjunct Associate Professor of Finance, University of Chicago Booth School of Business since 2007; Advisory Board Member, Driehaus Capital Management since 2018; Director, Carlson Inc. (private global hospitalities and travel company) since 2015; Managing Director – Investment Banking, JP Morgan Chase & Co. (broker-dealer) 2002-2007. | 11 | None. |
Maureen M. Culhane, 70 | 2007 | Retired. Formerly, Vice President, Goldman Sachs Asset Management, L.P. (investment adviser), 2005-2007; Vice President (Consultant) – Strategic Relationship Management, Goldman, Sachs & Co., 1999-2005. | 11 | None. |
Margaret M. Eisen, 65 | 2002 | Trustee, Smith College, 2012-2016; Chief Investment Officer, EAM International LLC (corporate finance and asset management), 2003-2013; Managing Director, CFA Institute, 2005-2008. | 11 | Chair, RMB Investors Trust (formerly Burnham Investors Trust) (6 series). |
Eric A. Feldstein, 59 | 2018 | Chief Financial Officer, Health Care Service Corporation (HCSC) since 2016; Executive Vice President, American Express Company, 2010-2016. | 11 | Board Member, Northern Trust Mutual Fund Complex (51 series), 2015-2016. |
John C. Heaton, 59 | 2010 | Deputy Dean for Faculty, University of Chicago Booth School of Business; Joseph L. Gidwitz Professor of Finance, University of Chicago Booth School of Business since July 2000. | 11 | None. |
Charles R. Phillips, 62 | 2015 | Retired. Formerly, Vice Chairman, J.P. Morgan Private Bank, 2011-2014; Managing Director, J.P. Morgan Private Bank, 2001-2011. | 11 | None. |
28 | Wanger USA | Annual Report 2018 |
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Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
David J. Rudis, 65, Vice Chair | 2010 | Consultant, Finger Rock, LLC (strategic consulting business). Formerly, National Checking and Debit Executive, and Illinois President, Bank of America, 2007-2009; President, Consumer Banking Group, LaSalle National Bank, 2004-2007. | 11 | None. |
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
Ralph Wanger, 84 (2) | 1970 (3) | Founder, CWAM. Formerly, President, Chief Investment Officer and portfolio manager, CWAM or its predecessors, July 1992-September 2003; Director, Wanger Investment Company PLC; Consultant to CWAM or its predecessors, September 2003-September 2005. | 11 | None. |
(1) | The Trustees oversee the series of Wanger Advisors Trust and Columbia Acorn Trust. |
(2) | As permitted under the Trust’s Bylaws, Mr. Wanger serves as a non-voting Trustee Emeritus of Columbia Acorn Trust and Wanger Advisors Trust. |
(3) | Dates prior to 1992 relate to the Acorn Fund, Inc., the predecessor trust to Columbia Acorn Trust. |
Name and age at December 31, 2018 | Position held with Columbia Acorn Trust and Wanger Advisors Trust | Year first appointed or elected to office | Principal occupation(s) during the past five years |
Alan G. Berkshire, 58 | President | 2015 | Global Chief Operating Officer - Investments, Columbia Threadneedle Inc. since 2017 and Chief Operating Officer, CWAM since April 2015. Formerly, Independent Director, ValueQuest India Moat Fund Limited (Mauritius), April 2014-March 2015; President – North America, Religare Global Asset Management, Inc., June 2011-November 2013. |
Michael G. Clarke, 49 | Assistant Treasurer | 2004 | Vice President – Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; senior officer of Columbia Funds and affiliated funds since 2002. |
David L. Frank, 55 | Vice President | 2014 | Portfolio manager and/or analyst, CWAM or its predecessors since 2002; Vice President, Columbia Acorn Trust and Wanger Advisors Trust since 2014. |
Wanger USA | Annual Report 2018 | 29 |
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Name and age at December 31, 2018 | Position held with Columbia Acorn Trust and Wanger Advisors Trust | Year first appointed or elected to office | Principal occupation(s) during the past five years |
Paul B. Goucher, 50 | Assistant Secretary | 2015 | Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively; Chief Counsel, January 2010 - January 2013); Vice President, Chief Legal Counsel and Assistant Secretary, Columbia Management Investment Advisers, LLC since May 2010. |
Tae Han (Simon) Kim, 38 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM since 2011. |
John Kunka, 48 | Treasurer | 2006 | Vice President, Treasurer and Principal Accounting and Financial Officer, Columbia Acorn Trust and Wanger Advisors Trust since 2014; Treasurer and Chief Financial Officer, CWAM since 2014; Vice President of Accounting and Operations, CWAM since May 2006; formerly, Assistant Treasurer, Columbia Acorn Trust and Wanger Advisors Trust 2006-2014. |
Stephen Kusmierczak, 51 | Vice President | 2011 | Portfolio manager and/or analyst, CWAM or its predecessors since 2001. |
Joseph C. LaPalm, 49 | Vice President | 2006 | Chief Compliance Officer, CWAM since 2005. |
Ryan C. Larrenaga, 48 | Assistant Secretary | 2015 | Vice President and Group Counsel, Ameriprise Financial, Inc. since August 2011 (previously, Counsel, May 2010-August 2011); officer of Columbia Funds and affiliated funds since 2005. |
Matthew A. Litfin, 47 | Vice President | 2016 | Director of Research (U.S.) and portfolio manager, CWAM since December 2015; formerly, portfolio manager, William Blair & Company 1997-2015. |
Satoshi Matsunaga, 47 | Vice President | 2015 | Portfolio manager and/or analyst, CWAM or its predecessors since 2005. |
Thomas P. McGuire, 46 | Chief Compliance Officer | 2015 | Senior Vice President and Chief Compliance Officer of the Columbia Funds since 2012; Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise Certificate Company since September 2010. |
Louis J. Mendes III, 54 | Vice President | 2005 | Director of International Research, CWAM, since 2015; portfolio manager and/or analyst, CWAM or its predecessors since 2001; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2005. |
Julian Quero, 51 | Assistant Treasurer | 2015 | Vice President – Tax, Columbia Management Investment Advisers, LLC since 2009. |
Martha A. Skinner, 44 | Assistant Treasurer | 2016 | Vice President of Financial Reporting and Administration, Columbia Management since November 2015; Director of Financial Reporting, Columbia Management, April 2013-November 2015; Manager of Financial Reporting, Columbia Management, August 2010-April 2013. |
Richard Watson, 49 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM or its predecessors since 2006. |
Linda Roth-Wiszowaty, 49 | Secretary | 2006 | Business support analyst, CWAM since April 2007; Secretary, Columbia Acorn Trust and Wanger Advisors Trust since 2014; Assistant Secretary, Columbia Acorn Trust and Wanger Advisors Trust, 2006-2014. |
Charles C. Young, 50 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM since 2011. |
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Average annual total returns (%) (for the period ended December 31, 2018) | ||||||
Inception | 1 Year | 5 Years | 10 Years | Life | ||
Wanger International | 05/03/95 | -17.70 | 0.63 | 9.38 | 10.79 | |
MSCI ACWI ex USA Small Cap Index (Net) | -18.20 | 1.96 | 10.02 | - | ||
MSCI ACWI ex USA Small Cap Growth Index (Net) | -18.27 | 2.26 | 10.07 | - |
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Top ten holdings (%) (at December 31, 2018) | |
SimCorp AS (Denmark) Global provider of highly specialised software for the investment management industry | 2.9 |
Unibet Group PLC (Malta) Online gambling services | 2.2 |
Nemetschek SE (Germany) Standard software for designing, constructing and managing buildings and real estate | 2.1 |
Restaurant Brands New Zealand Ltd. (New Zealand) Fast food restaurant chains | 2.0 |
Atea ASA (Norway) Nordic and Baltic supplier of IT infrastructure | 1.8 |
Brembo SpA (Italy) Braking systems and components | 1.8 |
Sweco AB, Class B (Sweden) Consulting company specializing in engineering, environmental technology, and architecture | 1.8 |
Rightmove PLC (United Kingdom) Website that lists properties across Britain | 1.7 |
Seiren Co., Ltd. (Japan) Advertising services | 1.6 |
Ascential PLC (United Kingdom) Media and consultancy services | 1.6 |
Equity sector breakdown (%) (at December 31, 2018) | |
Communication Services | 6.3 |
Consumer Discretionary | 17.9 |
Consumer Staples | 8.1 |
Energy | 1.5 |
Financials | 12.7 |
Health Care | 4.6 |
Industrials | 22.7 |
Information Technology | 17.4 |
Materials | 4.5 |
Real Estate | 4.3 |
Total | 100.0 |
Country breakdown (%) (at December 31, 2018) | |
Australia | 3.1 |
Belgium | 0.7 |
Brazil | 1.3 |
Cambodia | 1.5 |
Canada | 5.7 |
China | 1.8 |
Denmark | 2.8 |
France | 0.9 |
Germany | 6.0 |
Hong Kong | 2.0 |
India | 2.6 |
Indonesia | 1.2 |
Ireland | 1.5 |
Italy | 3.5 |
Japan | 20.6 |
Malta | 2.1 |
Mexico | 0.6 |
Netherlands | 0.7 |
New Zealand | 1.9 |
Norway | 1.8 |
Poland | 0.7 |
Russian Federation | 0.8 |
Singapore | 1.3 |
South Africa | 1.9 |
South Korea | 4.2 |
Spain | 1.4 |
Sweden | 3.8 |
Switzerland | 3.2 |
Taiwan | 5.0 |
Thailand | 0.8 |
Turkey | 0.3 |
United Kingdom | 10.1 |
United States(a) | 4.2 |
Total | 100.0 |
(a) | Includes investments in Money Market Funds. |
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(Unaudited)
July 1, 2018 — December 31, 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 | 834.10 | 1,019.51 | 5.35 | 5.89 | 1.15 |
8 | Wanger International | Annual Report 2018 |
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December 31, 2018
Common Stocks 96.9% | ||
Issuer | Shares | Value ($) |
Australia 3.1% | ||
carsales.com Ltd. Automotive & related industry websites | 438,390 | 3,398,383 |
Costa Group Holdings Ltd. Fruits and vegetables | 532,000 | 2,782,336 |
DuluxGroup Ltd. Manufactures and supplies paints and other surface coatings | 780,126 | 3,605,249 |
National Storage REIT Owns self storage facilities | 2,755,176 | 3,406,318 |
Total | 13,192,286 | |
Belgium 0.6% | ||
Melexis NV Advanced integrated semiconductors, sensor ICs, and programmable sensor IC systems | 46,968 | 2,733,361 |
Brazil 1.3% | ||
Localiza Rent a Car SA Rents automobiles | 329,000 | 2,525,382 |
Sul America SA Full service insurance company | 427,400 | 3,153,877 |
Total | 5,679,259 | |
Cambodia 1.5% | ||
NagaCorp Ltd. Leisure and tourism company | 6,070,000 | 6,521,627 |
Canada 5.7% | ||
AG Growth International, Inc. Manufacturer of Augers & Grain Handling Equipment | 140,533 | 4,817,569 |
CAE, Inc. Training solutions based on simulation technology and integrated training services | 287,552 | 5,284,705 |
CES Energy Solutions Corp. Oil and natural gas industry | 1,398,292 | 3,226,355 |
Osisko Gold Royalties Ltd. Precious metal royalty and stream company | 345,776 | 3,031,745 |
ShawCor Ltd. Energy services company | 245,378 | 2,980,052 |
Winpak Ltd. Packaging materials and machines for the protection of perishables | 142,053 | 4,968,525 |
Total | 24,308,951 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
China 1.8% | ||
51job, Inc., ADR(a) Integrated human resource services | 43,000 | 2,684,920 |
Minth Group Ltd. Exterior automobile body parts | 663,000 | 2,139,482 |
Xiabuxiabu Catering Management China Holdings Co., Ltd. Chain of restaurants in China | 1,768,000 | 2,763,932 |
Total | 7,588,334 | |
Denmark 2.8% | ||
SimCorp AS Global provider of highly specialised software for the investment management industry | 175,063 | 12,006,042 |
France 0.8% | ||
Akka Technologies High-technology engineering consulting services | 70,701 | 3,579,218 |
Germany 5.9% | ||
AURELIUS Equity Opportunities SE & Co. KGaA Loans to distressed companies | 74,281 | 2,700,801 |
Deutsche Beteiligungs AG Private equity company, investing in domestic medium-sized companies | 84,807 | 3,266,582 |
Nemetschek SE Standard software for designing, constructing and managing buildings and real estate | 79,739 | 8,772,252 |
Norma Group SE Plastic and metal-based components and systems in connecting technology | 69,688 | 3,454,840 |
Stroeer SE & Co. KGaA Digital multi-channel media company | 82,505 | 3,998,866 |
Varta AG(a) Manufactures and markets a wide range of industrial, commercial and miniaturized batteries | 106,051 | 3,023,116 |
Total | 25,216,457 | |
Hong Kong 2.0% | ||
ASM Pacific Technology Ltd. Machines, tools & materials used in the semiconductor industry | 243,400 | 2,349,829 |
Value Partners Group Ltd. Independent, value oriented asset management group | 3,123,000 | 2,168,466 |
Vitasoy International Holdings Ltd. Food and beverages | 1,014,000 | 3,859,969 |
Total | 8,378,264 |
Wanger International | Annual Report 2018 | 9 |
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December 31, 2018
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
India 2.6% | ||
Care Ratings Ltd. Credit rating services | 152,494 | 2,154,492 |
Cholamandalam Investment and Finance Co., Ltd. Financial services provider | 248,936 | 4,488,643 |
GRUH Finance Ltd. Provides a range of home loans as well as insurance products | 467,856 | 2,116,040 |
PI Industries Ltd. Agricultural and fine chemicals and polymers | 173,572 | 2,143,729 |
Total | 10,902,904 | |
Indonesia 1.2% | ||
PT Link Net Tbk High-speed internet connection through fiber optic lines | 9,352,400 | 3,186,840 |
PT Tower Bersama Infrastructure Tbk Telecommunication infrastructure services to Indonesian wireless carriers | 7,716,900 | 1,928,656 |
Total | 5,115,496 | |
Ireland 1.5% | ||
UDG Healthcare PLC Commercialisation solutions for health care companies | 853,416 | 6,497,242 |
Italy 3.5% | ||
Brembo SpA Braking systems and components | 716,555 | 7,313,009 |
Carel Industries SpA(a) Control solutions for HVAC and humidification systems | 229,709 | 2,373,449 |
Industria Macchine Automatiche SpA Packaging machinery for the food, pharmaceuticals, and cosmetics industries | 80,013 | 4,995,023 |
Total | 14,681,481 | |
Japan 20.5% | ||
Aeon Credit Service Co., Ltd. Credit card company | 250,600 | 4,445,855 |
Aeon Mall Co., Ltd. Large-scale shopping malls | 323,700 | 5,157,101 |
Aica Kogyo Co., Ltd. Manufactures adhesives, melamine boards, and housing materials | 73,300 | 2,451,041 |
Amano Corp. Electronic time recorders and information systems | 122,000 | 2,353,794 |
Azbil Corp. Provides measurement and control technologies | 204,928 | 4,050,153 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
cocokara fine, Inc. Drug chain stores | 117,000 | 5,699,055 |
Daiseki Co., Ltd. Waste Disposal & Recycling | 184,600 | 3,812,247 |
Fuji Oil Holdings, Inc. Specialty vegetable oils and fats | 121,900 | 3,891,435 |
Glory Ltd. Vending machines, coin-operated lockers, money handling machines, and data processing terminals | 162,100 | 3,645,324 |
KH Neochem Co., Ltd. Manufactures and sells petroleum chemical products | 142,400 | 2,995,443 |
Mandom Corp. Cosmetic products for men and women | 180,900 | 4,928,800 |
Milbon Co., Ltd. Hair Products for Salons | 94,900 | 3,863,103 |
Miura Co., Ltd. Industrial boilers and related equipment | 81,300 | 1,846,683 |
Nabtesco Corp. Aircraft and hydraulic products | 84,600 | 1,831,667 |
Nakanishi, Inc. Dental Tools & Machinery | 221,600 | 3,778,745 |
NSD Co., Ltd. Computer software development | 228,300 | 4,393,643 |
Persol Holdings Co., Ltd. Human resource solutions | 121,500 | 1,802,266 |
SCSK Corp. IT services | 65,700 | 2,327,988 |
Seiren Co., Ltd. Advertising services | 405,400 | 6,574,234 |
Seria Co., Ltd. Operates 100 yen chain stores | 185,400 | 6,305,039 |
Sohgo Security Services Co., Ltd. Around the clock security services | 76,900 | 3,592,973 |
TechnoPro Holdings, Inc. Medical & electronic design and IT & software development | 60,900 | 2,501,906 |
Ushio, Inc. Lamps and optical equipment | 285,300 | 3,022,588 |
Valqua Ltd. Rubber, fiber and resin products | 96,200 | 1,933,633 |
Total | 87,204,716 | |
Malta 2.1% | ||
Unibet Group PLC Online gambling services | 976,501 | 8,976,683 |
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December 31, 2018
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Mexico 0.6% | ||
Grupo Aeroportuario del Sureste SAB de CV, ADR Operates airports in Mexico | 18,027 | 2,714,866 |
Netherlands 0.7% | ||
Aalberts Industries NV Industrial services and flow control systems | 89,763 | 2,985,376 |
New Zealand 1.9% | ||
Restaurant Brands New Zealand Ltd. Fast food restaurant chains | 1,450,726 | 8,132,553 |
Norway 1.7% | ||
Atea ASA Nordic and Baltic supplier of IT infrastructure | 577,386 | 7,425,210 |
Poland 0.7% | ||
KRUK SA Debt collection services | 72,602 | 3,043,256 |
Russian Federation 0.8% | ||
TCS Group Holding PLC, GDR Online retail financial services | 217,839 | 3,389,575 |
Singapore 1.3% | ||
Mapletree Commercial Trust Singapore-focused real estate investment trust | 4,466,707 | 5,404,714 |
South Africa 1.9% | ||
Famous Brands Ltd.(a) Food and beverage company | 458,759 | 3,116,532 |
PSG Group Ltd. Diversified financial services | 287,916 | 4,881,964 |
Total | 7,998,496 | |
South Korea 4.1% | ||
GS Retail Co., Ltd. Chain of retail stores | 116,061 | 4,206,049 |
Koh Young Technology, Inc. 3D measurement and inspection equipment for testing various machineries | 75,634 | 5,599,417 |
Korea Investment Holdings Co., Ltd. Financial holding company | 73,233 | 3,916,669 |
Modetour Network, Inc. Travel services | 180,352 | 3,892,733 |
Total | 17,614,868 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Spain 1.4% | ||
Fluidra SA(a) Irrigation and swimming pool equipment | 189,433 | 2,124,849 |
Prosegur Cia de Seguridad SA, Registered Shares Security and transportation services | 726,883 | 3,678,511 |
Total | 5,803,360 | |
Sweden 3.8% | ||
AddTech AB, Class B High-tech industrial components and systems | 190,155 | 3,398,478 |
NetEnt AB Develops and markets computer gaming software | 830,862 | 3,420,580 |
Sweco AB, Class B Consulting company specializing in engineering, environmental technology, and architecture | 326,121 | 7,261,334 |
Trelleborg AB, Class B Manufactures and distributes industrial products | 135,373 | 2,132,887 |
Total | 16,213,279 | |
Switzerland 3.2% | ||
Belimo Holding AG, Registered Shares Manufactures heating, ventilation and air conditioning equipment | 1,073 | 4,303,878 |
Bossard Holding AG, Class A, Registered Shares Fastening devices, industrial adhesives & tools | 21,122 | 3,015,089 |
Inficon Holding AG Vacuum instruments used to monitor and control production processes | 7,157 | 3,628,614 |
Kardex AG Storage, warehouse and materials handling systems | 22,490 | 2,600,548 |
Total | 13,548,129 | |
Taiwan 5.0% | ||
Basso Industry Corp. Pneumatic nailers and staplers | 1,670,000 | 2,468,591 |
Gourmet Master Co., Ltd. Coffee & bakery cafes | 410,960 | 2,751,439 |
Parade Technologies Ltd. Fabless semiconductor company | 208,000 | 2,925,640 |
Silergy Corp. High performance analog integrated circuits | 241,000 | 3,546,478 |
Silicon Motion Technology Corp., ADR Semiconductor products | 48,474 | 1,672,353 |
Sinbon Electronics Co., Ltd. Cable, connectors & modems | 1,228,000 | 3,307,914 |
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Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Voltronic Power Technology Corp. Uninterruptible power supply products, inverters, multiple surface mounted devices and other power products | 266,395 | 4,654,134 |
Total | 21,326,549 | |
Thailand 0.8% | ||
Beauty Community PCL Cosmetic and beauty products | 6,707,400 | 1,351,337 |
Muangthai Capital PCL, Foreign Registered Shares Commercial lending company | 1,367,400 | 2,060,762 |
Total | 3,412,099 | |
Turkey 0.3% | ||
Logo Yazilim Sanayi Ve Ticaret AS(a) Enterprise resource planning software | 230,778 | 1,183,432 |
United Kingdom 10.0% | ||
Ascential PLC Media and consultancy services | 1,362,142 | 6,545,405 |
Dechra Pharmaceuticals PLC International veterinary pharmaceuticals | 87,021 | 2,299,191 |
Domino’s Pizza Group PLC Pizza delivery stores | 873,369 | 2,595,689 |
GW Pharmaceuticals PLC, ADR(a) Cannabinoid prescription medicines | 28,866 | 2,811,260 |
Hastings Group Holdings PLC General insurance services to the automobile and home insurance products | 2,525,621 | 6,010,924 |
Intermediate Capital Group PLC Private equity firm | 402,721 | 4,803,743 |
Renishaw PLC High technology precision measuring and calibration equipment | 25,000 | 1,353,556 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Rightmove PLC Website that lists properties across Britain | 1,276,890 | 7,037,063 |
Safestore Holdings PLC Self storage facilities | 578,204 | 3,732,797 |
WH Smith PLC Retails books, magazines, newspapers, and periodicals | 247,101 | 5,420,549 |
Total | 42,610,177 | |
United States 1.8% | ||
Inter Parfums, Inc. Fragrances and related products | 61,845 | 4,055,177 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 83,363 | 3,624,623 |
Total | 7,679,800 | |
Total Common Stocks (Cost: $395,630,913) | 413,068,060 | |
Money Market Funds 2.4% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 2.459%(b),(c) | 10,107,748 | 10,106,738 |
Total Money Market Funds (Cost: $10,106,738) | 10,106,738 | |
Total Investments in Securities (Cost: $405,737,651) | 423,174,798 | |
Other Assets & Liabilities, Net | 3,184,669 | |
Net Assets | $426,359,467 |
(a) | Non-income producing security. |
(b) | The rate shown is the seven-day current annualized yield at December 31, 2018. |
(c) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the year ended December 31, 2018 are as follows: |
Issuer | Beginning shares | Shares purchased | Shares sold | Ending shares | Realized gain (loss) — affiliated issuers ($) | Net change in unrealized appreciation (depreciation) — affiliated issuers ($) | Dividend — affiliated issuers ($) | Value — affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 2.459% | ||||||||
— | 75,997,518 | (65,889,770) | 10,107,748 | — | — | 70,739 | 10,106,738 |
12 | Wanger International | Annual Report 2018 |
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ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Investments measured at net asset value ($) | Total ($) | |
Investments in Securities | |||||
Common Stocks | |||||
Australia | — | 13,192,286 | — | — | 13,192,286 |
Belgium | — | 2,733,361 | — | — | 2,733,361 |
Brazil | 5,679,259 | — | — | — | 5,679,259 |
Cambodia | — | 6,521,627 | — | — | 6,521,627 |
Canada | 24,308,951 | — | — | — | 24,308,951 |
China | 2,684,920 | 4,903,414 | — | — | 7,588,334 |
Denmark | — | 12,006,042 | — | — | 12,006,042 |
France | — | 3,579,218 | — | — | 3,579,218 |
Germany | — | 25,216,457 | — | — | 25,216,457 |
Hong Kong | — | 8,378,264 | — | — | 8,378,264 |
India | — | 10,902,904 | — | — | 10,902,904 |
Indonesia | — | 5,115,496 | — | — | 5,115,496 |
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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 ($) | Investments measured at net asset value ($) | Total ($) | |
Ireland | — | 6,497,242 | — | — | 6,497,242 |
Italy | — | 14,681,481 | — | — | 14,681,481 |
Japan | — | 87,204,716 | — | — | 87,204,716 |
Malta | — | 8,976,683 | — | — | 8,976,683 |
Mexico | 2,714,866 | — | — | — | 2,714,866 |
Netherlands | — | 2,985,376 | — | — | 2,985,376 |
New Zealand | — | 8,132,553 | — | — | 8,132,553 |
Norway | — | 7,425,210 | — | — | 7,425,210 |
Poland | — | 3,043,256 | — | — | 3,043,256 |
Russian Federation | — | 3,389,575 | — | — | 3,389,575 |
Singapore | — | 5,404,714 | — | — | 5,404,714 |
South Africa | — | 7,998,496 | — | — | 7,998,496 |
South Korea | — | 17,614,868 | — | — | 17,614,868 |
Spain | — | 5,803,360 | — | — | 5,803,360 |
Sweden | — | 16,213,279 | — | — | 16,213,279 |
Switzerland | — | 13,548,129 | — | — | 13,548,129 |
Taiwan | 1,672,353 | 19,654,196 | — | — | 21,326,549 |
Thailand | — | 3,412,099 | — | — | 3,412,099 |
Turkey | — | 1,183,432 | — | — | 1,183,432 |
United Kingdom | 2,811,260 | 39,798,917 | — | — | 42,610,177 |
United States | 7,679,800 | — | — | — | 7,679,800 |
Total Common Stocks | 47,551,409 | 365,516,651 | — | — | 413,068,060 |
Money Market Funds | — | — | — | 10,106,738 | 10,106,738 |
Total Investments in Securities | 47,551,409 | 365,516,651 | — | 10,106,738 | 423,174,798 |
14 | Wanger International | Annual Report 2018 |
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Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $395,630,913) | $413,068,060 |
Affiliated issuers (cost $10,106,738) | 10,106,738 |
Foreign currency (cost $215,205) | 215,701 |
Receivable for: | |
Investments sold | 1,396,027 |
Capital shares sold | 1,503,084 |
Dividends | 561,095 |
Foreign tax reclaims | 415,433 |
Prepaid expenses | 12,533 |
Trustees’ deferred compensation plan | 204,040 |
Total assets | 427,482,711 |
Liabilities | |
Payable for: | |
Investments purchased | 565,055 |
Capital shares purchased | 128,177 |
Investment advisory fee | 33,517 |
Service fees | 30,462 |
Administration fees | 1,737 |
Compensation of chief compliance officer | 899 |
Other expenses | 158,408 |
Trustees’ deferred compensation plan | 204,040 |
Other liabilities | 949 |
Total liabilities | 1,123,244 |
Net assets applicable to outstanding capital stock | $426,359,467 |
Represented by | |
Paid in capital | 370,136,225 |
Total distributable earnings (loss) (Note 2) | 56,223,242 |
Total - representing net assets applicable to outstanding capital stock | $426,359,467 |
Shares outstanding | 19,202,936 |
Net asset value per share | 22.20 |
Wanger International | Annual Report 2018 | 15 |
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Year Ended December 31, 2018
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $12,337,074 |
Dividends — affiliated issuers | 70,739 |
Interest | 677 |
Income from securities lending — net | 169,025 |
Foreign taxes withheld | (1,031,043) |
Total income | 11,546,472 |
Expenses: | |
Investment advisory fee | 5,048,274 |
Service fees | 387,366 |
Administration fees | 267,529 |
Trustees’ fees | 52,020 |
Custodian fees | 187,913 |
Printing and postage fees | 192,721 |
Audit fees | 93,992 |
Legal fees | 85,779 |
Compensation of chief compliance officer | 1,848 |
Other | 32,008 |
Total expenses | 6,349,450 |
Fees waived by transfer agent | (312,753) |
Total net expenses | 6,036,697 |
Net investment income | 5,509,775 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 42,688,145 |
Foreign currency translations | (257,535) |
Net realized gain | 42,430,610 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (140,734,691) |
Foreign currency translations | (17,142) |
Net change in unrealized appreciation (depreciation) | (140,751,833) |
Net realized and unrealized loss | (98,321,223) |
Net decrease in net assets resulting from operations | $(92,811,448) |
16 | Wanger International | Annual Report 2018 |
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Year Ended December 31, 2018 | Year Ended December 31, 2017 | |
Operations | ||
Net investment income | $5,509,775 | $5,060,397 |
Net realized gain | 42,430,610 | 64,149,569 |
Net change in unrealized appreciation (depreciation) | (140,751,833) | 85,449,197 |
Net increase (decrease) in net assets resulting from operations | (92,811,448) | 154,659,163 |
Distributions to shareholders | ||
Net investment income and net realized gains | (71,062,256) | |
Net investment income | (6,572,360) | |
Net realized gains | (4,004,590) | |
Total distributions to shareholders (Note 2) | (71,062,256) | (10,576,950) |
Increase (decrease) in net assets from capital stock activity | 12,145,365 | (60,789,221) |
Total increase (decrease) in net assets | (151,728,339) | 83,292,992 |
Net assets at beginning of year | 578,087,806 | 494,794,814 |
Net assets at end of year | $426,359,467 | $578,087,806 |
Undistributed (excess of distributions over) net investment income | $(1,979,300) | $2,858,259 |
Year Ended | Year Ended | |||
December 31, 2018 | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 504,907 | 13,396,267 | 501,656 | 13,324,413 |
Distributions reinvested | 2,539,748 | 71,062,256 | 366,553 | 10,576,950 |
Redemptions | (2,583,573) | (72,313,158) | (3,058,127) | (84,690,584) |
Total net increase (decrease) | 461,082 | 12,145,365 | (2,189,918) | (60,789,221) |
Wanger International | Annual Report 2018 | 17 |
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Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | |
Per share data | |||||
Net asset value, beginning of period | $30.84 | $23.64 | $26.32 | $29.07 | $34.55 |
Income from investment operations: | |||||
Net investment income | 0.29 | 0.25 | 0.31 | 0.31 | 0.36 |
Net realized and unrealized gain (loss) | (4.93) | 7.49 | (0.56) | (0.09) | (1.56) |
Total from investment operations | (4.64) | 7.74 | (0.25) | 0.22 | (1.20) |
Less distributions to shareholders from: | |||||
Net investment income | (0.60) | (0.34) | (0.29) | (0.41) | (0.48) |
Net realized gains | (3.40) | (0.20) | (2.14) | (2.57) | (3.80) |
Total distributions to shareholders | (4.00) | (0.54) | (2.43) | (2.98) | (4.28) |
Proceeds from regulatory settlements | — | — | — | 0.01 | — |
Net asset value, end of period | $22.20 | $30.84 | $23.64 | $26.32 | $29.07 |
Total return | (17.70)%(a) | 32.91%(a) | (1.41)% | 0.10%(b) | (4.40)% |
Ratios to average net assets | |||||
Total gross expenses(c) | 1.19% | 1.16% | 1.08%(d) | 1.12% | 1.05% |
Total net expenses(c) | 1.13% | 1.12% | 1.08%(d) | 1.12% | 1.05% |
Net investment income | 1.03% | 0.92% | 1.23% | 1.11% | 1.10% |
Supplemental data | |||||
Portfolio turnover | 47% | 55% | 56% | 53% | 28% |
Net assets, end of period (in thousands) | $426,359 | $578,088 | $494,795 | $586,629 | $667,023 |
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, if any. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(d) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by 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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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% |
$8 billion and over | 0.02% |
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December 31, 2018
Excess of distributions over net investment income ($) | Accumulated net realized gain ($) | Paid in capital ($) |
443,481 | (443,481) | — |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | ||||
Ordinary income ($) | Long-term capital gains ($) | Total ($) | Ordinary income ($) | Long-term capital gains ($) | Total ($) |
15,604,863 | 55,457,394 | 71,062,257 | 6,572,360 | 4,004,590 | 10,576,950 |
Undistributed ordinary income ($) | Undistributed long-term capital gains ($) | Capital loss carryforwards ($) | Net unrealized appreciation ($) |
556,524 | 41,474,451 | — | 14,377,395 |
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
408,797,403 | 67,895,195 | (53,517,800) | 14,377,395 |
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(Unaudited)
Capital gain dividend | Foreign taxes paid to foreign countries | Foreign taxes paid per share to foreign countries | Foreign source income | Foreign source income per share |
$43,590,100 | $934,469 | $0.05 | $11,937,355 | $0.62 |
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Shareholder Services Group
227 W. Monroe, Suite 3000
Chicago, IL 60606
800.922.6769
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
Laura M. Born, 53, Chair | 2007 | Adjunct Associate Professor of Finance, University of Chicago Booth School of Business since 2007; Advisory Board Member, Driehaus Capital Management since 2018; Director, Carlson Inc. (private global hospitalities and travel company) since 2015; Managing Director – Investment Banking, JP Morgan Chase & Co. (broker-dealer) 2002-2007. | 11 | None. |
Maureen M. Culhane, 70 | 2007 | Retired. Formerly, Vice President, Goldman Sachs Asset Management, L.P. (investment adviser), 2005-2007; Vice President (Consultant) – Strategic Relationship Management, Goldman, Sachs & Co., 1999-2005. | 11 | None. |
Margaret M. Eisen, 65 | 2002 | Trustee, Smith College, 2012-2016; Chief Investment Officer, EAM International LLC (corporate finance and asset management), 2003-2013; Managing Director, CFA Institute, 2005-2008. | 11 | Chair, RMB Investors Trust (formerly Burnham Investors Trust) (6 series). |
Eric A. Feldstein, 59 | 2018 | Chief Financial Officer, Health Care Service Corporation (HCSC) since 2016; Executive Vice President, American Express Company, 2010-2016. | 11 | Board Member, Northern Trust Mutual Fund Complex (51 series), 2015-2016. |
John C. Heaton, 59 | 2010 | Deputy Dean for Faculty, University of Chicago Booth School of Business; Joseph L. Gidwitz Professor of Finance, University of Chicago Booth School of Business since July 2000. | 11 | None. |
Charles R. Phillips, 62 | 2015 | Retired. Formerly, Vice Chairman, J.P. Morgan Private Bank, 2011-2014; Managing Director, J.P. Morgan Private Bank, 2001-2011. | 11 | None. |
Wanger International | Annual Report 2018 | 29 |
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Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
David J. Rudis, 65, Vice Chair | 2010 | Consultant, Finger Rock, LLC (strategic consulting business). Formerly, National Checking and Debit Executive, and Illinois President, Bank of America, 2007-2009; President, Consumer Banking Group, LaSalle National Bank, 2004-2007. | 11 | None. |
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
Ralph Wanger, 84 (2) | 1970 (3) | Founder, CWAM. Formerly, President, Chief Investment Officer and portfolio manager, CWAM or its predecessors, July 1992-September 2003; Director, Wanger Investment Company PLC; Consultant to CWAM or its predecessors, September 2003-September 2005. | 11 | None. |
(1) | The Trustees oversee the series of Wanger Advisors Trust and Columbia Acorn Trust. |
(2) | As permitted under the Trust’s Bylaws, Mr. Wanger serves as a non-voting Trustee Emeritus of Columbia Acorn Trust and Wanger Advisors Trust. |
(3) | Dates prior to 1992 relate to the Acorn Fund, Inc., the predecessor trust to Columbia Acorn Trust. |
Name and age at December 31, 2018 | Position held with Columbia Acorn Trust and Wanger Advisors Trust | Year first appointed or elected to office | Principal occupation(s) during the past five years |
Alan G. Berkshire, 58 | President | 2015 | Global Chief Operating Officer - Investments, Columbia Threadneedle Inc. since 2017 and Chief Operating Officer, CWAM since April 2015. Formerly, Independent Director, ValueQuest India Moat Fund Limited (Mauritius), April 2014-March 2015; President – North America, Religare Global Asset Management, Inc., June 2011-November 2013. |
Michael G. Clarke, 49 | Assistant Treasurer | 2004 | Vice President – Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; senior officer of Columbia Funds and affiliated funds since 2002. |
David L. Frank, 55 | Vice President | 2014 | Portfolio manager and/or analyst, CWAM or its predecessors since 2002; Vice President, Columbia Acorn Trust and Wanger Advisors Trust since 2014. |
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Name and age at December 31, 2018 | Position held with Columbia Acorn Trust and Wanger Advisors Trust | Year first appointed or elected to office | Principal occupation(s) during the past five years |
Paul B. Goucher, 50 | Assistant Secretary | 2015 | Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively; Chief Counsel, January 2010 - January 2013); Vice President, Chief Legal Counsel and Assistant Secretary, Columbia Management Investment Advisers, LLC since May 2010. |
Tae Han (Simon) Kim, 38 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM since 2011. |
John Kunka, 48 | Treasurer | 2006 | Vice President, Treasurer and Principal Accounting and Financial Officer, Columbia Acorn Trust and Wanger Advisors Trust since 2014; Treasurer and Chief Financial Officer, CWAM since 2014; Vice President of Accounting and Operations, CWAM since May 2006; formerly, Assistant Treasurer, Columbia Acorn Trust and Wanger Advisors Trust 2006-2014. |
Stephen Kusmierczak, 51 | Vice President | 2011 | Portfolio manager and/or analyst, CWAM or its predecessors since 2001. |
Joseph C. LaPalm, 49 | Vice President | 2006 | Chief Compliance Officer, CWAM since 2005. |
Ryan C. Larrenaga, 48 | Assistant Secretary | 2015 | Vice President and Group Counsel, Ameriprise Financial, Inc. since August 2011 (previously, Counsel, May 2010-August 2011); officer of Columbia Funds and affiliated funds since 2005. |
Matthew A. Litfin, 47 | Vice President | 2016 | Director of Research (U.S.) and portfolio manager, CWAM since December 2015; formerly, portfolio manager, William Blair & Company 1997-2015. |
Satoshi Matsunaga, 47 | Vice President | 2015 | Portfolio manager and/or analyst, CWAM or its predecessors since 2005. |
Thomas P. McGuire, 46 | Chief Compliance Officer | 2015 | Senior Vice President and Chief Compliance Officer of the Columbia Funds since 2012; Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise Certificate Company since September 2010. |
Louis J. Mendes III, 54 | Vice President | 2005 | Director of International Research, CWAM, since 2015; portfolio manager and/or analyst, CWAM or its predecessors since 2001; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2005. |
Julian Quero, 51 | Assistant Treasurer | 2015 | Vice President – Tax, Columbia Management Investment Advisers, LLC since 2009. |
Martha A. Skinner, 44 | Assistant Treasurer | 2016 | Vice President of Financial Reporting and Administration, Columbia Management since November 2015; Director of Financial Reporting, Columbia Management, April 2013-November 2015; Manager of Financial Reporting, Columbia Management, August 2010-April 2013. |
Richard Watson, 49 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM or its predecessors since 2006. |
Linda Roth-Wiszowaty, 49 | Secretary | 2006 | Business support analyst, CWAM since April 2007; Secretary, Columbia Acorn Trust and Wanger Advisors Trust since 2014; Assistant Secretary, Columbia Acorn Trust and Wanger Advisors Trust, 2006-2014. |
Charles C. Young, 50 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM since 2011. |
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Average annual total returns (%) (for the period ended December 31, 2018) | ||||||
Inception | 1 Year | 5 Years | 10 Years | Life | ||
Wanger Select | 02/01/99 | -12.41 | 5.39 | 13.63 | 9.52 | |
Russell 2500 Growth Index | -7.47 | 6.19 | 14.76 | - |
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Top ten holdings (%) (at December 31, 2018) | |
Masimo Corp. Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 6.0 |
GoDaddy, Inc., Class A Cloud-based web platform for small businesses, web design professionals and individuals | 5.4 |
ANSYS, Inc. Software solutions for design analysis and optimization | 5.4 |
JB Hunt Transport Services, Inc. Logistics services | 5.1 |
Encompass Health Corp. Inpatient rehabilitative healthcare services | 4.7 |
VeriSign, Inc. Domain names and Internet security services | 4.6 |
SVB Financial Group Holding company for Silicon Valley Bank | 4.5 |
Vail Resorts, Inc. Operates resorts globally | 4.5 |
LCI Industries Recreational vehicles and equipment | 4.4 |
LKQ Corp. Automotive products and services | 3.9 |
Portfolio breakdown (%) (at December 31, 2018) | |
Common Stocks | 95.0 |
Limited Partnerships | 1.8 |
Money Market Funds | 3.2 |
Total | 100.0 |
Equity sector breakdown (%) (at December 31, 2018) | |
Consumer Discretionary | 18.2 |
Financials | 14.2 |
Health Care | 20.1 |
Industrials | 10.8 |
Information Technology | 22.0 |
Materials | 7.4 |
Real Estate | 7.3 |
Total | 100.0 |
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July 1, 2018 — December 31, 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 | 823.70 | 1,021.19 | 3.79 | 4.20 | 0.82 |
8 | Wanger Select | Annual Report 2018 |
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December 31, 2018
Common Stocks 95.0% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 17.6% | ||
Auto Components 4.3% | ||
LCI Industries Recreational vehicles and equipment | 68,562 | 4,579,942 |
Distributors 3.8% | ||
LKQ Corp.(a) Automotive products and services | 169,368 | 4,019,103 |
Hotels, Restaurants & Leisure 4.3% | ||
Vail Resorts, Inc. Operates resorts globally | 21,992 | 4,636,353 |
Household Durables 4.3% | ||
Cavco Industries, Inc.(a) Designs and manufactures systems-built structures | 18,454 | 2,406,032 |
NVR, Inc.(a) Builds and markets homes and conducts mortgage banking activities | 900 | 2,193,291 |
Total | 4,599,323 | |
Specialty Retail 0.9% | ||
Boot Barn Holdings, Inc.(a) Western and work gear | 53,710 | 914,681 |
Total Consumer Discretionary | 18,749,402 | |
Financials 12.0% | ||
Banks 4.4% | ||
SVB Financial Group(a) Holding company for Silicon Valley Bank | 24,549 | 4,662,346 |
Capital Markets 5.0% | ||
Ares Management Corp., Class A(b) Asset management firm | 132,672 | 2,358,908 |
Raymond James Financial, Inc. Financial services to individuals, corporations, and municipalities | 39,298 | 2,924,164 |
Total | 5,283,072 | |
Thrifts & Mortgage Finance 2.6% | ||
OceanFirst Financial Corp. New Jersey banks | 125,772 | 2,831,128 |
Total Financials | 12,776,546 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care 19.4% | ||
Biotechnology 2.5% | ||
Seattle Genetics, Inc.(a) Monoclonal antibody-based drugs to treat cancer and related diseases | 29,227 | 1,656,002 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 24,299 | 1,056,520 |
Total | 2,712,522 | |
Health Care Equipment & Supplies 7.0% | ||
Anika Therapeutics, Inc.(a) Integrated orthopedic medicines company | 36,388 | 1,223,001 |
Masimo Corp.(a) Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 57,784 | 6,204,268 |
Total | 7,427,269 | |
Health Care Providers & Services 7.9% | ||
Encompass Health Corp. Inpatient rehabilitative healthcare services | 79,185 | 4,885,715 |
Premier, Inc.(a) Healthcare services | 95,246 | 3,557,438 |
Total | 8,443,153 | |
Life Sciences Tools & Services 2.0% | ||
Pra Health Sciences, Inc.(a) Global contract research organization | 22,700 | 2,087,492 |
Total Health Care | 20,670,436 | |
Industrials 10.5% | ||
Machinery 5.6% | ||
Gardner Denver Holdings, Inc.(a) Vacuum systems, bottle blowers, pumps and air & gas compressors | 104,735 | 2,141,831 |
Nordson Corp. Systems that apply adhesives, sealants, and coatings to products during manufacturing | 31,563 | 3,767,044 |
Total | 5,908,875 | |
Road & Rail 4.9% | ||
JB Hunt Transport Services, Inc. Logistics services | 56,069 | 5,216,659 |
Total Industrials | 11,125,534 |
Wanger Select | Annual Report 2018 | 9 |
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December 31, 2018
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Information Technology 21.3% | ||
Electronic Equipment, Instruments & Components 5.7% | ||
CDW Corp. IT products and services | 43,567 | 3,531,106 |
Coherent, Inc.(a) Laser-based photonic products | 24,244 | 2,562,833 |
Total | 6,093,939 | |
IT Services 10.4% | ||
GoDaddy, Inc., Class A(a) Cloud-based web platform for small businesses, web design professionals and individuals | 85,269 | 5,595,352 |
GreenSky, Inc., Class A(a) Technology company | 78,551 | 751,733 |
VeriSign, Inc.(a) Domain names and Internet security services | 31,587 | 4,684,036 |
Total | 11,031,121 | |
Software 5.2% | ||
ANSYS, Inc.(a) Software solutions for design analysis and optimization | 38,965 | 5,569,657 |
Total Information Technology | 22,694,717 | |
Materials 7.1% | ||
Chemicals 7.1% | ||
Celanese Corp., Class A Global integrated producer of chemicals and advanced materials | 40,350 | 3,630,290 |
Orion Engineered Carbons SA Global supplier of Carbon Black | 157,058 | 3,970,426 |
Total | 7,600,716 | |
Total Materials | 7,600,716 | |
Real Estate 7.1% | ||
Equity Real Estate Investment Trusts (REITS) 7.1% | ||
Coresite Realty Corp. Develops, owns & operates data centers | 42,438 | 3,701,867 |
UMH Properties, Inc. Real estate investment trust | 326,000 | 3,859,840 |
Total | 7,561,707 | |
Total Real Estate | 7,561,707 | |
Total Common Stocks (Cost: $96,361,520) | 101,179,058 | |
Limited Partnerships 1.8% | ||
Issuer | Shares | Value ($) |
Financials 1.8% | ||
Capital Markets 1.8% | ||
Oaktree Capital Group LLC Investment management firm focused on alternative markets | 47,220 | 1,876,995 |
Total Financials | 1,876,995 | |
Total Limited Partnerships (Cost: $2,009,316) | 1,876,995 | |
Money Market Funds 3.2% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 2.459%(c),(d) | 3,395,951 | 3,395,612 |
Total Money Market Funds (Cost: $3,395,612) | 3,395,612 | |
Total Investments in Securities (Cost $101,766,448) | 106,451,665 | |
Other Assets & Liabilities, Net | 17,064 | |
Net Assets | $106,468,729 |
10 | Wanger Select | Annual Report 2018 |
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December 31, 2018
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at December 31, 2018. The total market value of securities on loan at December 31, 2018 was $620,522. |
(c) | The rate shown is the seven-day current annualized yield at December 31, 2018. |
(d) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the year ended December 31, 2018 are as follows: |
Issuer | Beginning shares | Shares purchased | Shares sold | Ending shares | Realized gain (loss) — affiliated issuers ($) | Net change in unrealized appreciation (depreciation) — affiliated issuers ($) | Dividend — affiliated issuers ($) | Value — affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 2.459% | ||||||||
— | 27,857,903 | (24,461,952) | 3,395,951 | — | — | 26,537 | 3,395,612 |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
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December 31, 2018
The following table is a summary of the inputs used to value the Fund’s investments at December 31, 2018:
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Investments measured at net asset value ($) | Total ($) | |
Investments in Securities | |||||
Common Stocks | |||||
Consumer Discretionary | 18,749,402 | — | — | — | 18,749,402 |
Financials | 12,776,546 | — | — | — | 12,776,546 |
Health Care | 20,670,436 | — | — | — | 20,670,436 |
Industrials | 11,125,534 | — | — | — | 11,125,534 |
Information Technology | 22,694,717 | — | — | — | 22,694,717 |
Materials | 7,600,716 | — | — | — | 7,600,716 |
Real Estate | 7,561,707 | — | — | — | 7,561,707 |
Total Common Stocks | 101,179,058 | — | — | — | 101,179,058 |
Limited Partnerships | |||||
Financials | 1,876,995 | — | — | — | 1,876,995 |
Money Market Funds | — | — | — | 3,395,612 | 3,395,612 |
Total Investments in Securities | 103,056,053 | — | — | 3,395,612 | 106,451,665 |
12 | Wanger Select | Annual Report 2018 |
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December 31, 2018
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $98,370,836) | $103,056,053 |
Affiliated issuers (cost $3,395,612) | 3,395,612 |
Cash | 645,650 |
Receivable for: | |
Capital shares sold | 42,642 |
Dividends | 118,383 |
Securities lending income | 215 |
Prepaid expenses | 3,515 |
Total assets | 107,262,070 |
Liabilities | |
Due upon return of securities on loan | 645,650 |
Payable for: | |
Capital shares purchased | 3,077 |
Investment advisory fee | 5,211 |
Service fees | 36,515 |
Administration fees | 434 |
Trustees’ fees | 46,473 |
Compensation of chief compliance officer | 229 |
Other expenses | 55,752 |
Total liabilities | 793,341 |
Net assets applicable to outstanding capital stock | $106,468,729 |
Represented by | |
Paid in capital | 86,982,931 |
Total distributable earnings (loss) (Note 2) | 19,485,798 |
Total - representing net assets applicable to outstanding capital stock | $106,468,729 |
Shares outstanding | 6,523,086 |
Net asset value per share | 16.32 |
* Includes the value of securities on loan | 620,522 |
Wanger Select | Annual Report 2018 | 13 |
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Year Ended December 31, 2018
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $1,512,772 |
Dividends — affiliated issuers | 26,537 |
Income from securities lending — net | 1,036 |
Foreign taxes withheld | (7,364) |
Total income | 1,532,981 |
Expenses: | |
Investment advisory fee | 1,091,765 |
Service fees | 203,339 |
Administration fees | 68,235 |
Trustees’ fees | 12,643 |
Custodian fees | 4,289 |
Printing and postage fees | 39,598 |
Audit fees | 39,321 |
Legal fees | 21,803 |
Compensation of chief compliance officer | 472 |
Other | 15,381 |
Total expenses | 1,496,846 |
Fees waived by transfer agent | (156,279) |
Advisory fee waiver | (272,941) |
Total net expenses | 1,067,626 |
Net investment income | 465,355 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 14,719,330 |
Net realized gain | 14,719,330 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (29,878,533) |
Net change in unrealized appreciation (depreciation) | (29,878,533) |
Net realized and unrealized loss | (15,159,203) |
Net decrease in net assets resulting from operations | $(14,693,848) |
14 | Wanger Select | Annual Report 2018 |
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Year Ended December 31, 2018 | Year Ended December 31, 2017 | |
Operations | ||
Net investment income | $465,355 | $247,316 |
Net realized gain | 14,719,330 | 15,047,757 |
Net change in unrealized appreciation (depreciation) | (29,878,533) | 15,936,463 |
Net increase (decrease) in net assets resulting from operations | (14,693,848) | 31,231,536 |
Distributions to shareholders | ||
Net investment income and net realized gains | (15,240,367) | |
Net investment income | (229,911) | |
Net realized gains | (17,779,427) | |
Total distributions to shareholders (Note 2) | (15,240,367) | (18,009,338) |
Increase (decrease) in net assets from capital stock activity | (4,810,029) | 2,491,048 |
Total increase (decrease) in net assets | (34,744,244) | 15,713,246 |
Net assets at beginning of year | 141,212,973 | 125,499,727 |
Net assets at end of year | $106,468,729 | $141,212,973 |
Undistributed (excess of distributions over) net investment income | $236,963 | $(32,311) |
Year Ended | Year Ended | |||
December 31, 2018 | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 252,736 | 5,232,746 | 229,255 | 4,453,222 |
Distributions reinvested | 739,801 | 15,240,367 | 990,881 | 18,009,338 |
Redemptions | (1,243,911) | (25,283,142) | (1,016,605) | (19,971,512) |
Total net increase (decrease) | (251,374) | (4,810,029) | 203,531 | 2,491,048 |
Wanger Select | Annual Report 2018 | 15 |
Table of Contents
Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | |
Per share data | |||||
Net asset value, beginning of period | $20.84 | $19.10 | $24.18 | $32.99 | $36.41 |
Income from investment operations: | |||||
Net investment income (loss) | 0.07 | 0.04 | 0.03 | (0.02) | (0.07) |
Net realized and unrealized gain (loss) | (2.15) | 4.62 | 2.48 | 0.69 | 1.07 |
Total from investment operations | (2.08) | 4.66 | 2.51 | 0.67 | 1.00 |
Less distributions to shareholders from: | |||||
Net investment income | (0.04) | (0.03) | (0.03) | (0.00)(a) | — |
Net realized gains | (2.40) | (2.89) | (7.56) | (9.48) | (4.42) |
Total distributions to shareholders | (2.44) | (2.92) | (7.59) | (9.48) | (4.42) |
Net asset value, end of period | $16.32 | $20.84 | $19.10 | $24.18 | $32.99 |
Total return | (12.41)%(b) | 26.67%(b) | 13.31%(b) | 0.26%(b) | 3.17% |
Ratios to average net assets | |||||
Total gross expenses(c) | 1.10% | 1.05% | 0.93%(d) | 0.98% | 0.93%(e) |
Total net expenses(c) | 0.78% | 0.77% | 0.73%(d) | 0.85% | 0.93%(e) |
Net investment income (loss) | 0.34% | 0.19% | 0.17% | (0.06)% | (0.20)% |
Supplemental data | |||||
Portfolio turnover | 66% | 52% | 93% | 59% | 18% |
Net assets, end of period (in thousands) | $106,469 | $141,213 | $125,500 | $135,841 | $191,647 |
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) | 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. |
(e) | Ratios include line of credit interest expense which is less than 0.01%. |
16 | Wanger Select | Annual Report 2018 |
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December 31, 2018
Wanger Select | Annual Report 2018 | 17 |
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December 31, 2018
Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger Select | |||||
Securities lending transactions | |||||
Equity securities | $620,522 | $— | $— | $— | $620,522 |
Gross amount of recognized liabilities for securities lending (collateral received) | 645,650 | ||||
Amounts due to counterparty in the event of default | $25,128 |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 645,650 |
Total Liabilities | 645,650 |
Total Financial and Derivative Net Assets | (645,650) |
Financial Instruments | 620,522 |
Net Amount(a) | (25,128) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
18 | Wanger Select | Annual Report 2018 |
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December 31, 2018
Wanger Select | Annual Report 2018 | 19 |
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December 31, 2018
Average daily net assets | Annual fee rate |
Up to $500 million | 0.80% |
$500 million and over | 0.78% |
20 | Wanger Select | Annual Report 2018 |
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December 31, 2018
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% |
$8 billion and over | 0.02% |
Wanger Select | Annual Report 2018 | 21 |
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December 31, 2018
Undistributed net investment income ($) | Accumulated net realized gain ($) | Paid in capital ($) |
23,013 | (23,013) | — |
Year Ended December 31, 2018 | Year Ended December 31, 2017 | ||||
Ordinary income ($) | Long-term capital gains ($) | Total ($) | Ordinary income ($) | Long-term capital gains ($) | Total ($) |
3,605,848 | 11,634,519 | 15,240,367 | 229,911 | 17,779,427 | 18,009,338 |
Undistributed ordinary income ($) | Undistributed long-term capital gains ($) | Capital loss carryforwards ($) | Net unrealized appreciation ($) |
2,040,400 | 12,913,749 | — | 4,482,349 |
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
101,969,316 | 16,864,018 | (12,381,669) | 4,482,349 |
22 | Wanger Select | Annual Report 2018 |
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December 31, 2018
Wanger Select | Annual Report 2018 | 23 |
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December 31, 2018
24 | Wanger Select | Annual Report 2018 |
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Wanger Select | Annual Report 2018 | 25 |
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(Unaudited)
Dividends received deduction | Capital gain dividend |
25.17% | $13,575,155 |
26 | Wanger Select | Annual Report 2018 |
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Shareholder Services Group
227 W. Monroe, Suite 3000
Chicago, IL 60606
800.922.6769
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
Laura M. Born, 53, Chair | 2007 | Adjunct Associate Professor of Finance, University of Chicago Booth School of Business since 2007; Advisory Board Member, Driehaus Capital Management since 2018; Director, Carlson Inc. (private global hospitalities and travel company) since 2015; Managing Director – Investment Banking, JP Morgan Chase & Co. (broker-dealer) 2002-2007. | 11 | None. |
Maureen M. Culhane, 70 | 2007 | Retired. Formerly, Vice President, Goldman Sachs Asset Management, L.P. (investment adviser), 2005-2007; Vice President (Consultant) – Strategic Relationship Management, Goldman, Sachs & Co., 1999-2005. | 11 | None. |
Margaret M. Eisen, 65 | 2002 | Trustee, Smith College, 2012-2016; Chief Investment Officer, EAM International LLC (corporate finance and asset management), 2003-2013; Managing Director, CFA Institute, 2005-2008. | 11 | Chair, RMB Investors Trust (formerly Burnham Investors Trust) (6 series). |
Eric A. Feldstein, 59 | 2018 | Chief Financial Officer, Health Care Service Corporation (HCSC) since 2016; Executive Vice President, American Express Company, 2010-2016. | 11 | Board Member, Northern Trust Mutual Fund Complex (51 series), 2015-2016. |
John C. Heaton, 59 | 2010 | Deputy Dean for Faculty, University of Chicago Booth School of Business; Joseph L. Gidwitz Professor of Finance, University of Chicago Booth School of Business since July 2000. | 11 | None. |
Charles R. Phillips, 62 | 2015 | Retired. Formerly, Vice Chairman, J.P. Morgan Private Bank, 2011-2014; Managing Director, J.P. Morgan Private Bank, 2001-2011. | 11 | None. |
Wanger Select | Annual Report 2018 | 27 |
Table of Contents
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
David J. Rudis, 65, Vice Chair | 2010 | Consultant, Finger Rock, LLC (strategic consulting business). Formerly, National Checking and Debit Executive, and Illinois President, Bank of America, 2007-2009; President, Consumer Banking Group, LaSalle National Bank, 2004-2007. | 11 | None. |
Name and age at December 31, 2018 | Year first appointed or elected to a Board in the Columbia Funds Complex | Principal occupation(s) during the past five years | Number of Funds in the Columbia Funds Complex overseen (1) | Other directorships held by the Trustee during the past five years in addition to Columbia Acorn Trust and Wanger Advisors Trust |
Ralph Wanger, 84 (2) | 1970 (3) | Founder, CWAM. Formerly, President, Chief Investment Officer and portfolio manager, CWAM or its predecessors, July 1992-September 2003; Director, Wanger Investment Company PLC; Consultant to CWAM or its predecessors, September 2003-September 2005. | 11 | None. |
(1) | The Trustees oversee the series of Wanger Advisors Trust and Columbia Acorn Trust. |
(2) | As permitted under the Trust’s Bylaws, Mr. Wanger serves as a non-voting Trustee Emeritus of Columbia Acorn Trust and Wanger Advisors Trust. |
(3) | Dates prior to 1992 relate to the Acorn Fund, Inc., the predecessor trust to Columbia Acorn Trust. |
Name and age at December 31, 2018 | Position held with Columbia Acorn Trust and Wanger Advisors Trust | Year first appointed or elected to office | Principal occupation(s) during the past five years |
Alan G. Berkshire, 58 | President | 2015 | Global Chief Operating Officer - Investments, Columbia Threadneedle Inc. since 2017 and Chief Operating Officer, CWAM since April 2015. Formerly, Independent Director, ValueQuest India Moat Fund Limited (Mauritius), April 2014-March 2015; President – North America, Religare Global Asset Management, Inc., June 2011-November 2013. |
Michael G. Clarke, 49 | Assistant Treasurer | 2004 | Vice President – Mutual Fund Administration, Columbia Management Investment Advisers, LLC since May 2010; senior officer of Columbia Funds and affiliated funds since 2002. |
David L. Frank, 55 | Vice President | 2014 | Portfolio manager and/or analyst, CWAM or its predecessors since 2002; Vice President, Columbia Acorn Trust and Wanger Advisors Trust since 2014. |
28 | Wanger Select | Annual Report 2018 |
Table of Contents
Name and age at December 31, 2018 | Position held with Columbia Acorn Trust and Wanger Advisors Trust | Year first appointed or elected to office | Principal occupation(s) during the past five years |
Paul B. Goucher, 50 | Assistant Secretary | 2015 | Senior Vice President and Assistant General Counsel, Ameriprise Financial, Inc. since January 2017 (previously Vice President and Lead Chief Counsel, November 2008 - January 2017 and January 2013 - January 2017, respectively; Chief Counsel, January 2010 - January 2013); Vice President, Chief Legal Counsel and Assistant Secretary, Columbia Management Investment Advisers, LLC since May 2010. |
Tae Han (Simon) Kim, 38 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM since 2011. |
John Kunka, 48 | Treasurer | 2006 | Vice President, Treasurer and Principal Accounting and Financial Officer, Columbia Acorn Trust and Wanger Advisors Trust since 2014; Treasurer and Chief Financial Officer, CWAM since 2014; Vice President of Accounting and Operations, CWAM since May 2006; formerly, Assistant Treasurer, Columbia Acorn Trust and Wanger Advisors Trust 2006-2014. |
Stephen Kusmierczak, 51 | Vice President | 2011 | Portfolio manager and/or analyst, CWAM or its predecessors since 2001. |
Joseph C. LaPalm, 49 | Vice President | 2006 | Chief Compliance Officer, CWAM since 2005. |
Ryan C. Larrenaga, 48 | Assistant Secretary | 2015 | Vice President and Group Counsel, Ameriprise Financial, Inc. since August 2011 (previously, Counsel, May 2010-August 2011); officer of Columbia Funds and affiliated funds since 2005. |
Matthew A. Litfin, 47 | Vice President | 2016 | Director of Research (U.S.) and portfolio manager, CWAM since December 2015; formerly, portfolio manager, William Blair & Company 1997-2015. |
Satoshi Matsunaga, 47 | Vice President | 2015 | Portfolio manager and/or analyst, CWAM or its predecessors since 2005. |
Thomas P. McGuire, 46 | Chief Compliance Officer | 2015 | Senior Vice President and Chief Compliance Officer of the Columbia Funds since 2012; Vice President – Asset Management Compliance, Ameriprise Financial, Inc., since May 2010; Chief Compliance Officer, Ameriprise Certificate Company since September 2010. |
Louis J. Mendes III, 54 | Vice President | 2005 | Director of International Research, CWAM, since 2015; portfolio manager and/or analyst, CWAM or its predecessors since 2001; Vice President, Columbia Acorn Trust since 2003 and Wanger Advisors Trust since 2005. |
Julian Quero, 51 | Assistant Treasurer | 2015 | Vice President – Tax, Columbia Management Investment Advisers, LLC since 2009. |
Martha A. Skinner, 44 | Assistant Treasurer | 2016 | Vice President of Financial Reporting and Administration, Columbia Management since November 2015; Director of Financial Reporting, Columbia Management, April 2013-November 2015; Manager of Financial Reporting, Columbia Management, August 2010-April 2013. |
Richard Watson, 49 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM or its predecessors since 2006. |
Linda Roth-Wiszowaty, 49 | Secretary | 2006 | Business support analyst, CWAM since April 2007; Secretary, Columbia Acorn Trust and Wanger Advisors Trust since 2014; Assistant Secretary, Columbia Acorn Trust and Wanger Advisors Trust, 2006-2014. |
Charles C. Young, 50 | Vice President | 2018 | Portfolio manager and/or analyst, CWAM since 2011. |
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![](https://capedge.com/proxy/N-CSR/0001193125-19-066622/g655973imga0c2082a2.jpg)
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Item 2. Code of Ethics.
(a) | The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
(b) | During the period covered by this report, there were not any amendments to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. |
(c) | During the period covered by this report, there were no waivers, including any implicit waivers, from a provision of the code of ethics to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party that relates to one or more of the items set forth in paragraph (b) of this Item. |
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees has determined that Eric Feldstein, a member of the registrant’s Board of Trustees and Audit Committee, qualifies as an audit committee financial expert. Mr. Feldstein is an independent trustee, as defined in paragraph (a)(2) of this item’s instructions
Item 4. Principal Accountant Fees and Services.
Fee information below is disclosed for the three series of the registrant whose reports to stockholders are included in this annual filing.
(a)Audit Fees. Aggregate Audit Fees billed by the principal accountant for professional services rendered during the fiscal years ended December 31, 2018 and December 31, 2017 are approximately as follows:
2018 | 2017 | |||
$95,000 | $ | 84,100 |
Audit Fees include amounts related to the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
(b)Audit-Related Fees. Aggregate Audit-Related Fees billed to the registrant by the principal accountant for professional services rendered during the fiscal years ended December 31, 2018 and December 31, 2017 are approximately as follows:
2018 | 2017 | |||
$6,900 | $ | 6,700 |
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Audit-Related Fees include amounts for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported in Audit Fees above. In both fiscal years 2018 and 2017, Audit-Related Fees consist of agreed-upon procedures performed for other audit-related additional testing.
During the fiscal years ended December 31, 2018 and December 31, 2017, there were no Audit-Related Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(c)Tax Fees. Aggregate Tax Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended December 31, 2018 and December 31, 2017 are approximately as follows:
2018 | 2017 | |||
$25,400 | $ | 24,000 |
Tax Fees incurred in both fiscal years 2018 and 2017 relate to the review of annual tax returns, the review of required shareholder distribution calculations and include amounts for professional services by the principal accountant for tax compliance, tax advice and tax planning. Fiscal year 2017 also includes Tax Fees for agreed upon procedures related to a fund merger and review of a final tax return.
During the fiscal years ended December 31, 2018 and December 31, 2017, there were no Tax Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant.
(d)All Other Fees. Aggregate All Other Fees billed by the principal accountant to the registrant for professional services rendered during the fiscal years ended December 31, 2018 and December 31, 2017 are as follows:
2018 | 2017 | |||
$0 | $ | 0 |
All Other Fees include amounts for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) above.
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Aggregate All Other Fees billed by the registrant’s principal accountant to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for an engagement that related directly to the operations and financial reporting of the registrant during the fiscal years ended December 31, 2018 and December 31, 2017 are approximately as follows:
2018 | 2017 | |||
$225,000 | $ | 225,000 |
In both fiscal years 2018 and 2017, All Other Fees primarily consist of professional services rendered for internal control reviews.
(e)(1) Audit CommitteePre-Approval Policies and Procedures
The policy of the registrant’s Audit Committee is to specificallypre-approve (i) all audit andnon-audit (including audit related, tax and all other) services provided by the registrant’s independent auditor to the registrant and individual funds (collectively “Fund Services”) and (ii) allnon-audit services provided by the registrant’s independent auditor to the funds’ adviser or a control affiliate of the adviser, that relate directly to the funds’ operations and financial reporting (collectively “Fund-related Adviser Services”). A “control affiliate” is an entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the funds, and the term “adviser” is deemed to exclude any unaffiliatedsub-adviser whose role is primarily portfolio management and issub-contracted or overseen by another investment adviser.
If such Fund Services or Fund-related Adviser Services are required during the period between the Audit Committee’s regularly scheduled meetings, the Chairman of the Audit Committee has the authority topre-approve the service, with reporting to the full Audit Committee at the next regularly scheduled meeting.
The Audit Committee will waivepre-approval of Fund Services or Fund-related Adviser Services provided that the requirements under paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X are met.
(e)(2) The percentage of services described in paragraphs (b) through (d) of this Item approved pursuant to the “de minimis” exception under paragraph (c)(7)(i)(C) of Rule2-01 of RegulationS-X during both fiscal years ended December 31, 2018 and December 31, 2017 was zero.
(f) Not applicable.
(g) The aggregatenon-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for the fiscal years ended December 31, 2018 and December 31, 2017 are approximately as follows:
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2018 | 2017 | |||
$257,300 | $ | 255,700 |
(h) The registrant’s Audit Committee of the Board of Directors has considered whether the provision ofnon-audit services that were rendered to the registrant’s adviser (not including anysub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were notpre-approved pursuant to paragraph (c)(7)(ii) of Rule2-01 of RegulationS-X, is compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a) | The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR210.12-12) is included in Item 1 of this FormN-CSR. |
(b) | Not applicable |
Item 7. Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers ofClosed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities byClosed-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 officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in FormN-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. |
(b) | There was no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities forClosed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of FormN-CSR attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Rule30a-2(a) under the Investment Company Act of 1940 (17 CFR270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(a)(3) Not applicable.
(b) Certification pursuant to Rule30a-2(b) under the Investment Company Act of 1940 (17 CFR270.30a-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 February 21, 2019 |
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 February 21, 2019 |
By (Signature and Title) /s/ John M. Kunka | ||||
John M. Kunka, Treasurer and Principal Accounting and Financial Officer |
Date February 21, 2019 |