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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
Louis Mendes
Columbia Acorn Trust
227 West Monroe Street, Suite 3000
Chicago, Illinois 60606
Mary C. Moynihan
Perkins Coie LLP
700 13th Street, NW
Suite 600
Washington, DC 20005
(Name and address of agent for service)
Registrant’s telephone number, including area code: (312)634-9200
Date of fiscal year end: December 31
Date of reporting period: June 30, 2019
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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June 30, 2019
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Average annual total returns (%) (for the period ended June 30, 2019) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger USA | 05/03/95 | 19.73 | 2.06 | 10.06 | 15.31 | 11.84 | |
Russell 2000 Growth Index | 20.36 | -0.49 | 8.63 | 14.41 | - |
Wanger USA | Semiannual Report 2019 | 3 |
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Top ten holdings (%) (at June 30, 2019) | |
Cedar Fair LP Owns and operates amusement parks | 2.1 |
Manhattan Associates, Inc. Information technology solutions for distribution centers | 2.0 |
Chemed Corp. Hospice and palliative care services | 1.9 |
Dorman Products, Inc. Automotive products and home hardware | 1.9 |
Extended Stay America, Inc. Hotels and motels | 1.6 |
ITT, Inc. Engineered components & customized technology solutions | 1.5 |
National Research Corp., Class A Survey-based healthcare performance, analysis and tracking | 1.5 |
WD-40 Co. Multi-purpose lubricant products and heavy-duty hand cleaners | 1.5 |
HealthEquity, Inc. Technology-enabled services platforms for consumers to make healthcare saving and spending decisions | 1.4 |
BWX Technologies, Inc. Nuclear components and fuel | 1.4 |
Portfolio breakdown (%) (at June 30, 2019) | |
Common Stocks | 94.3 |
Limited Partnerships | 2.0 |
Money Market Funds | 3.3 |
Securities Lending Collateral | 0.4 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2019) | |
Communication Services | 0.5 |
Consumer Discretionary | 20.6 |
Consumer Staples | 5.4 |
Energy | 1.3 |
Financials | 11.7 |
Health Care | 24.6 |
Industrials | 12.3 |
Information Technology | 18.0 |
Materials | 2.7 |
Real Estate | 2.9 |
Total | 100.0 |
4 | Wanger USA | Semiannual Report 2019 |
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6 | Wanger USA | Semiannual Report 2019 |
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January 1, 2019 — June 30, 2019 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger USA | 1,000.00 | 1,000.00 | 1,197.30 | 1,019.47 | 5.55 | 5.10 | 1.03 |
Wanger USA | Semiannual Report 2019 | 7 |
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June 30, 2019 (Unaudited)
Common Stocks 95.6% | ||
Issuer | Shares | Value ($) |
Communication Services 0.5% | ||
Interactive Media & Services 0.5% | ||
Care.com, Inc.(a) Child, adult, senior, pet and home care services | 281,476 | 3,090,606 |
Total Communication Services | 3,090,606 | |
Consumer Discretionary 18.0% | ||
Auto Components 3.1% | ||
Dorman Products, Inc.(a) Automotive products and home hardware | 140,077 | 12,206,310 |
LCI Industries Recreational vehicles and equipment | 51,956 | 4,676,040 |
Visteon Corp.(a) Automotive systems, modules and components | 55,700 | 3,262,906 |
Total | 20,145,256 | |
Diversified Consumer Services 1.0% | ||
Adtalem Global Education, Inc.(a) Higher education institutions | 147,924 | 6,663,976 |
Hotels, Restaurants & Leisure 6.8% | ||
Choice Hotels International, Inc. Vacation rental properties, travel tips and other services | 45,473 | 3,956,606 |
Churchill Downs, Inc. Horse racing company, home of the Kentucky Derby | 62,291 | 7,167,825 |
Dave & Buster’s Entertainment, Inc. Venues that combine dining and entertainment for adults and families | 160,550 | 6,497,458 |
Extended Stay America, Inc. Hotels and motels | 613,168 | 10,356,408 |
Red Rock Resorts, Inc., Class A Casino & entertainment properties | 273,015 | 5,864,362 |
Wendy’s Co. (The) Fast-food restaurants | 255,051 | 4,993,899 |
Wingstop, Inc. Cooked-to-order chicken wings | 63,892 | 6,053,767 |
Total | 44,890,325 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Household Durables 3.9% | ||
Cavco Industries, Inc.(a) Designs and manufactures systems-built structures | 21,662 | 3,412,632 |
Helen of Troy Ltd.(a) Brand-name hair and comfort products | 46,844 | 6,117,358 |
iRobot Corp.(a) Manufactures robots for cleaning | 71,110 | 6,516,520 |
Skyline Champion Corp.(a) Factory-built housing | 219,496 | 6,009,801 |
TopBuild Corp.(a) Insulation installation services | 41,399 | 3,426,181 |
Total | 25,482,492 | |
Leisure Products 2.4% | ||
Brunswick Corp. Consumer products serving the outdoor and indoor active recreation markets | 103,373 | 4,743,787 |
Johnson Outdoors, Inc., Class A Outdoor recreational products | 57,308 | 4,273,457 |
MasterCraft Boat Holdings, Inc.(a) Recreational powerboats | 332,493 | 6,513,538 |
Total | 15,530,782 | |
Specialty Retail 0.8% | ||
Boot Barn Holdings, Inc.(a) Western and work gear | 148,758 | 5,301,735 |
Total Consumer Discretionary | 118,014,566 | |
Consumer Staples 5.2% | ||
Beverages 0.6% | ||
Cott Corp. Route based service provider | 293,000 | 3,911,550 |
Food & Staples Retailing 0.7% | ||
BJ’s Wholesale Club Holdings, Inc.(a) Warehouse club | 180,494 | 4,765,042 |
Food Products 0.6% | ||
Calavo Growers, Inc. Avocados and other perishable foods | 43,597 | 4,217,574 |
8 | Wanger USA | Semiannual Report 2019 |
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June 30, 2019 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Household Products 2.3% | ||
Central Garden & Pet Co.(a) Lawn, garden & pet supply products | 208,581 | 5,621,258 |
WD-40 Co. Multi-purpose lubricant products and heavy-duty hand cleaners | 58,106 | 9,241,178 |
Total | 14,862,436 | |
Personal Products 1.0% | ||
Inter Parfums, Inc. Fragrances and related products | 98,680 | 6,561,233 |
Total Consumer Staples | 34,317,835 | |
Energy 1.3% | ||
Energy Equipment & Services 0.6% | ||
Core Laboratories NV Reservoir description, production enhancement, and reservoir management services | 76,869 | 4,018,711 |
Oil, Gas & Consumable Fuels 0.7% | ||
Callon Petroleum Co.(a) Independent energy company | 633,916 | 4,177,507 |
Total Energy | 8,196,218 | |
Financials 11.4% | ||
Banks 3.9% | ||
Bank of NT Butterfield & Son Ltd. (The) Community bank and specialized international financial services | 143,049 | 4,857,944 |
First Busey Corp. Multi-bank holding company | 208,800 | 5,514,408 |
Great Southern Bancorp, Inc. Real estate, commercial real estate, commercial business, consumer, and construction loans | 111,763 | 6,689,015 |
Lakeland Financial Corp. Bank holding company | 99,218 | 4,646,379 |
Trico Bancshares Holding company for Tri Counties Bank | 95,861 | 3,623,546 |
Total | 25,331,292 | |
Capital Markets 2.7% | ||
Ares Management Corp., Class A Asset management firm | 218,530 | 5,718,930 |
Hamilton Lane, Inc., Class A Private market investment solutions | 92,264 | 5,264,584 |
Houlihan Lokey, Inc. Investment bank | 149,092 | 6,639,067 |
Total | 17,622,581 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Consumer Finance 1.1% | ||
FirstCash, Inc. Owns and operates pawn stores | 72,120 | 7,213,443 |
Insurance 0.8% | ||
Palomar Holdings, Inc.(a) Insurance services | 226,725 | 5,450,469 |
Thrifts & Mortgage Finance 2.9% | ||
Merchants Bancorp Bank holding company | 412,562 | 7,025,931 |
OceanFirst Financial Corp. New Jersey banks | 132,302 | 3,287,705 |
Walker & Dunlop, Inc. Commercial real estate financial services | 166,941 | 8,882,930 |
Total | 19,196,566 | |
Total Financials | 74,814,351 | |
Health Care 24.0% | ||
Biotechnology 7.9% | ||
Agios Pharmaceuticals, Inc.(a) Therapeutics in the field of cancer metabolism | 112,679 | 5,620,429 |
Amicus Therapeutics, Inc.(a) Orally-administered, small molecule drugs to treat human genetic diseases | 469,873 | 5,864,015 |
Enanta Pharmaceuticals, Inc.(a) Pharmaceutical products | 74,064 | 6,249,520 |
Fate Therapeutics, Inc.(a) Biotechnology services | 91,430 | 1,856,029 |
Genomic Health, Inc.(a) Development and commercialization of genomic-based clinical diagnostic tests for cancer | 87,815 | 5,108,199 |
Immunomedics, Inc.(a) Diagnostic imaging and therapeutic products | 302,436 | 4,194,787 |
Intercept Pharmaceuticals, Inc.(a) biopharmaceutical products | 49,000 | 3,898,930 |
Kiniksa Pharmaceuticals Ltd., Class A(a) Clinical-stage biopharmaceutical company | 409,335 | 5,542,396 |
MacroGenics, Inc.(a) Treatments for autoimmune disorders, cancer and infectious diseases | 364,005 | 6,177,165 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 114,927 | 7,297,864 |
Total | 51,809,334 |
Wanger USA | Semiannual Report 2019 | 9 |
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June 30, 2019 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care Equipment & Supplies 7.2% | ||
Atrion Corp. Medical products and components | 9,282 | 7,915,133 |
AxoGen, Inc.(a) Technologies for peripheral nerve reconstruction and regeneration | 280,023 | 5,544,455 |
iRhythm Technologies, Inc.(a) Medical instruments | 79,769 | 6,308,132 |
Orthofix Medical, Inc.(a) Spine fixation, biological, and other orthopedic and spine solutions | 139,550 | 7,379,404 |
Penumbra, Inc.(a) Peripheral vascular & neurovascular devices | 42,903 | 6,864,480 |
SI-BONE, Inc.(a) Medical devices | 285,000 | 5,796,900 |
Tactile Systems Technology, Inc.(a) Technology for treating lymphedema, chronic swelling & venous ulcers | 125,965 | 7,169,928 |
Total | 46,978,432 | |
Health Care Providers & Services 5.8% | ||
Chemed Corp. Hospice and palliative care services | 34,444 | 12,428,773 |
Hanger, Inc.(a) Orthotics and prosthetics | 181,489 | 3,475,514 |
HealthEquity, Inc.(a) Technology-enabled services platforms for consumers to make healthcare saving and spending decisions | 139,530 | 9,125,262 |
National Research Corp., Class A Survey-based healthcare performance, analysis and tracking | 166,998 | 9,617,415 |
Tivity Health, Inc.(a) Health fitness solutions | 224,560 | 3,691,767 |
Total | 38,338,731 | |
Life Sciences Tools & Services 0.8% | ||
NanoString Technologies, Inc.(a) Translational research and molecular diagnostics | 169,062 | 5,131,032 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Pharmaceuticals 2.3% | ||
GW Pharmaceuticals PLC, ADR(a) Cannabinoid prescription medicines | 18,245 | 3,145,255 |
Optinose, Inc.(a),(b) Health care services | 583,618 | 4,132,015 |
Reata Pharmaceuticals, Inc., Class A(a) Biopharmaceutical company | 36,842 | 3,476,043 |
Theravance Biopharma, Inc.(a) Small molecule medicines | 252,357 | 4,120,990 |
Total | 14,874,303 | |
Total Health Care | 157,131,832 | |
Industrials 12.0% | ||
Aerospace & Defense 1.4% | ||
BWX Technologies, Inc. Nuclear components and fuel | 171,444 | 8,932,232 |
Commercial Services & Supplies 2.7% | ||
Brink’s Co. (The) Provides security services globally | 53,149 | 4,314,636 |
Knoll, Inc. Branded office furniture products and textiles | 229,475 | 5,273,336 |
Unifirst Corp. Workplace uniforms and protective clothing | 42,685 | 8,049,110 |
Total | 17,637,082 | |
Construction & Engineering 1.1% | ||
Comfort Systems U.S.A., Inc. Heating, ventilation and air conditioning systems | 141,797 | 7,230,229 |
Electrical Equipment 0.8% | ||
Atkore International Group, Inc.(a) Metal products and electrical raceway solutions | 201,094 | 5,202,302 |
Machinery 1.5% | ||
ITT, Inc. Engineered components & customized technology solutions | 150,445 | 9,851,139 |
Professional Services 1.8% | ||
Exponent, Inc. Science and engineering consulting firm | 108,950 | 6,377,933 |
ICF International, Inc. Management, technology, policy consulting, and implementation services | 74,843 | 5,448,570 |
Total | 11,826,503 | |
Road & Rail 1.0% | ||
Saia, Inc.(a) Trucking transportation | 100,434 | 6,495,067 |
10 | Wanger USA | Semiannual Report 2019 |
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June 30, 2019 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Trading Companies & Distributors 1.7% | ||
Air Lease Corp. Aircraft leasing company | 163,884 | 6,774,965 |
SiteOne Landscape Supply, Inc.(a) Landscape supplies | 67,654 | 4,688,422 |
Total | 11,463,387 | |
Total Industrials | 78,637,941 | |
Information Technology 17.6% | ||
Electronic Equipment, Instruments & Components 2.4% | ||
Badger Meter, Inc. Flow measurement and control solutions | 102,150 | 6,097,333 |
ePlus, Inc.(a) Provides IT hardware, software and services | 65,318 | 4,503,023 |
Rogers Corp.(a) Specialty materials and components for applications | 28,700 | 4,953,046 |
Total | 15,553,402 | |
IT Services 2.7% | ||
Endava PLC, ADR(a) IT services | 159,998 | 6,438,319 |
Hackett Group Business consulting and technology implementation | 297,428 | 4,993,816 |
Science Applications International Corp. Scientific, Engineering and technology consulting services | 71,201 | 6,163,159 |
Total | 17,595,294 | |
Semiconductors & Semiconductor Equipment 4.3% | ||
Advanced Energy Industries, Inc.(a) Engineered precision power conversion, measurement and control solutions | 127,431 | 7,170,542 |
Inphi Corp.(a) Analog semiconductor solutions | 95,171 | 4,768,067 |
MKS Instruments, Inc. Instruments and components used to control and analyze gases in semiconductor manufacturing | 52,973 | 4,126,067 |
Rudolph Technologies, Inc.(a) Systems and software used by semiconductor device manufacturers worldwide | 166,153 | 4,590,808 |
Semtech Corp.(a) Analog and mixed-signal semiconductors | 154,396 | 7,418,728 |
Total | 28,074,212 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Software 8.2% | ||
Alteryx, Inc., Class A(a) Data storage, retrieval, management, reporting, and analytics solutions | 61,273 | 6,686,110 |
Blackline, Inc.(a) Develops and markets enterprise software | 90,449 | 4,839,926 |
CyberArk Software Ltd.(a) IT security solutions | 58,626 | 7,494,748 |
j2 Global, Inc. Cloud-based communications and storage messaging services | 52,050 | 4,626,724 |
Manhattan Associates, Inc.(a) Information technology solutions for distribution centers | 186,549 | 12,933,442 |
Mimecast Ltd.(a) Cloud security and risk management services for corporate information and email | 124,996 | 5,838,563 |
Q2 Holdings, Inc.(a) Secure, cloud-based virtual banking solutions | 62,466 | 4,769,904 |
Qualys, Inc.(a) Information technology security risk and compliance management solutions | 73,500 | 6,400,380 |
Total | 53,589,797 | |
Total Information Technology | 114,812,705 | |
Materials 2.7% | ||
Chemicals 2.7% | ||
Ingevity Corp.(a) Specialty chemicals | 31,100 | 3,270,787 |
Orion Engineered Carbons SA Global supplier of Carbon Black | 180,911 | 3,873,304 |
PolyOne Corp. International polymer services company | 127,402 | 3,999,149 |
Quaker Chemical Corp. Custom-formulated chemical specialty products | 31,268 | 6,343,652 |
Total | 17,486,892 | |
Total Materials | 17,486,892 | |
Real Estate 2.9% | ||
Equity Real Estate Investment Trusts (REITS) 1.5% | ||
Coresite Realty Corp. Develops, owns & operates data centers | 33,290 | 3,834,009 |
UMH Properties, Inc. Real estate investment trust | 482,657 | 5,989,774 |
Total | 9,823,783 |
Wanger USA | Semiannual Report 2019 | 11 |
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June 30, 2019 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Real Estate Management & Development 1.4% | ||
Colliers International Group, Inc.(b) Commercial real estate, residential property management and property services | 57,779 | 4,138,132 |
FirstService Corp. Real estate services | 50,920 | 4,884,246 |
Total | 9,022,378 | |
Total Real Estate | 18,846,161 | |
Total Common Stocks (Cost: $531,543,751) | 625,349,107 | |
Limited Partnerships 2.0% | ||
Consumer Discretionary 2.0% | ||
Hotels, Restaurants & Leisure 2.0% | ||
Cedar Fair LP Owns and operates amusement parks | 280,235 | 13,364,406 |
Total Consumer Discretionary | 13,364,406 | |
Total Limited Partnerships (Cost: $15,325,779) | 13,364,406 | |
Securities Lending Collateral 0.4% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.250%(c),(d) | 2,317,950 | 2,317,950 |
Total Securities Lending Collateral (Cost: $2,317,950) | 2,317,950 | |
Money Market Funds 3.4% | ||
Columbia Short-Term Cash Fund, 2.433%(c),(e) | 22,019,192 | 22,016,991 |
Total Money Market Funds (Cost: $22,016,991) | 22,016,991 | |
Total Investments in Securities (Cost $571,204,471) | 663,048,454 | |
Obligation to Return Collateral for Securities Loaned | (2,317,950) | |
Other Assets & Liabilities, Net | (6,952,694) | |
Net Assets | $653,777,810 |
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at June 30, 2019. The total market value of securities on loan at June 30, 2019 was $2,408,796. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2019. |
(d) | Investment made with cash collateral received from securities lending activity. |
(e) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended June 30, 2019 are as follows: |
Issuer | Beginning shares | Shares purchased | Shares sold | Ending shares | Realized gain (loss) — affiliated issuers ($) | Net change in unrealized appreciation (depreciation) — affiliated issuers ($) | Dividend — affiliated issuers ($) | Value — affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 2.433% | ||||||||
26,682,465 | 164,066,030 | (168,729,303) | 22,019,192 | (506) | — | 186,979 | 22,016,991 |
ADR | American Depositary Receipt |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
12 | Wanger USA | Semiannual Report 2019 |
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June 30, 2019 (Unaudited)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Level 1 quoted prices in active markets for identical assets ($) | 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 | 3,090,606 | — | — | — | 3,090,606 |
Consumer Discretionary | 118,014,566 | — | — | — | 118,014,566 |
Consumer Staples | 34,317,835 | — | — | — | 34,317,835 |
Energy | 8,196,218 | — | — | — | 8,196,218 |
Financials | 74,814,351 | — | — | — | 74,814,351 |
Health Care | 157,131,832 | — | — | — | 157,131,832 |
Industrials | 78,637,941 | — | — | — | 78,637,941 |
Information Technology | 114,812,705 | — | — | — | 114,812,705 |
Materials | 17,486,892 | — | — | — | 17,486,892 |
Real Estate | 18,846,161 | — | — | — | 18,846,161 |
Total Common Stocks | 625,349,107 | — | — | — | 625,349,107 |
Limited Partnerships | |||||
Consumer Discretionary | 13,364,406 | — | — | — | 13,364,406 |
Securities Lending Collateral | 2,317,950 | — | — | — | 2,317,950 |
Money Market Funds | — | — | — | 22,016,991 | 22,016,991 |
Total Investments in Securities | 641,031,463 | — | — | 22,016,991 | 663,048,454 |
Wanger USA | Semiannual Report 2019 | 13 |
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June 30, 2019 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $549,187,480) | $641,031,463 |
Affiliated issuers (cost $22,016,991) | 22,016,991 |
Receivable for: | |
Investments sold | 2,680,094 |
Capital shares sold | 35,394 |
Dividends | 391,611 |
Securities lending income | 2,077 |
Foreign tax reclaims | 1,053 |
Prepaid expenses | 6,333 |
Trustees’ deferred compensation plan | 238,828 |
Total assets | 666,403,844 |
Liabilities | |
Due to custodian | 5,427 |
Due upon return of securities on loan | 2,317,950 |
Payable for: | |
Investments purchased | 9,465,256 |
Capital shares purchased | 457,563 |
Investment advisory fee | 15,355 |
Service fees | 29,003 |
Administration fees | 885 |
Trustees’ fees | 504 |
Other expenses | 95,263 |
Trustees’ deferred compensation plan | 238,828 |
Total liabilities | 12,626,034 |
Net assets applicable to outstanding capital stock | $653,777,810 |
Represented by | |
Paid in capital | 519,068,723 |
Total distributable earnings (loss) | 134,709,087 |
Total - representing net assets applicable to outstanding capital stock | $653,777,810 |
Shares outstanding | 32,153,019 |
Net asset value per share | 20.33 |
* Includes the value of securities on loan | 2,408,796 |
14 | Wanger USA | Semiannual Report 2019 |
Table of Contents
Six Months Ended June 30, 2019 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $3,306,354 |
Dividends — affiliated issuers | 186,979 |
Income from securities lending — net | 20,593 |
Foreign taxes withheld | (28,730) |
Total income | 3,485,196 |
Expenses: | |
Investment advisory fee | 2,782,064 |
Service fees | 290,065 |
Administration fees | 160,491 |
Trustees’ fees | 37,306 |
Custodian fees | 6,767 |
Printing and postage fees | 69,394 |
Audit fees | 18,714 |
Legal fees | 64,645 |
Compensation of chief compliance officer | 1,320 |
Other | 25,725 |
Total expenses | 3,456,491 |
Fees waived by transfer agent | (161,673) |
Total net expenses | 3,294,818 |
Net investment income | 190,378 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 45,881,313 |
Investments — affiliated issuers | (506) |
Net realized gain | 45,880,807 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 67,675,807 |
Net change in unrealized appreciation (depreciation) | 67,675,807 |
Net realized and unrealized gain | 113,556,614 |
Net increase in net assets resulting from operations | $113,746,992 |
Wanger USA | Semiannual Report 2019 | 15 |
Table of Contents
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |
Operations | ||
Net investment income (loss) | $190,378 | $(622,419) |
Net realized gain | 45,880,807 | 115,134,937 |
Net change in unrealized appreciation (depreciation) | 67,675,807 | (113,466,197) |
Net increase in net assets resulting from operations | 113,746,992 | 1,046,321 |
Distributions to shareholders | ||
Net investment income and net realized gains | (115,476,309) | (161,967,932) |
Total distributions to shareholders | (115,476,309) | (161,967,932) |
Increase in net assets from capital stock activity | 73,516,565 | 58,200,283 |
Total increase (decrease) in net assets | 71,787,248 | (102,721,328) |
Net assets at beginning of period | 581,990,562 | 684,711,890 |
Net assets at end of period | $653,777,810 | $581,990,562 |
Six Months Ended | Year Ended | |||
June 30, 2019 (Unaudited) | December 31, 2018 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 269,194 | 6,421,560 | 912,955 | 23,287,444 |
Distributions reinvested | 5,823,313 | 115,476,309 | 6,526,840 | 161,967,932 |
Redemptions | (2,053,297) | (48,381,304) | (4,929,560) | (127,055,093) |
Total net increase | 4,039,210 | 73,516,565 | 2,510,235 | 58,200,283 |
16 | Wanger USA | Semiannual Report 2019 |
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Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Per share data | ||||||
Net asset value, beginning of period | $20.70 | $26.74 | $26.53 | $31.75 | $37.71 | $41.13 |
Income from investment operations: | ||||||
Net investment income (loss) | 0.01 | (0.02) | (0.02) | (0.04) | (0.12) | (0.06) |
Net realized and unrealized gain | 3.97 | 0.75 | 4.81 | 3.56 | 0.45 | 1.70 |
Total from investment operations | 3.98 | 0.73 | 4.79 | 3.52 | 0.33 | 1.64 |
Less distributions to shareholders from: | ||||||
Net investment income | (0.07) | (0.03) | — | — | — | — |
Net realized gains | (4.28) | (6.74) | (4.58) | (8.74) | (6.29) | (5.06) |
Total distributions to shareholders | (4.35) | (6.77) | (4.58) | (8.74) | (6.29) | (5.06) |
Net asset value, end of period | $20.33 | $20.70 | $26.74 | $26.53 | $31.75 | $37.71 |
Total return | 19.73%(a) | (1.46)%(a) | 19.58%(a) | 13.69% | (0.61)% | 4.78% |
Ratios to average net assets | ||||||
Total gross expenses(b) | 1.08%(c) | 1.05% | 1.03% | 1.00% | 1.01% | 0.96% |
Total net expenses(b) | 1.03%(c) | 1.00% | 0.99% | 1.00% | 1.01% | 0.96% |
Net investment income (loss) | 0.06%(c) | (0.09)% | (0.08)% | (0.16)% | (0.34)% | (0.15)% |
Supplemental data | ||||||
Portfolio turnover | 55% | 81% | 96% | 118% | 45% | 14% |
Net assets, end of period (in thousands) | $653,778 | $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. |
(c) | Annualized. |
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Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger USA | |||||
Securities lending transactions | |||||
Equity securities | $2,408,796 | $— | $— | $— | $2,408,796 |
Gross amount of recognized liabilities for securities lending (collateral received) | 2,317,950 | ||||
Amounts due to counterparty in the event of default | $(90,846) |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 2,317,950 |
Total Liabilities | 2,317,950 |
Total Financial and Derivative Net Assets | (2,317,950) |
Financial Instruments | 2,408,796 |
Net Amount(a) | 90,846 |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
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Average daily net assets | Annual fee rate |
Up to $100 million | 0.94% |
$100 million to $250 million | 0.89% |
$250 million to $2 billion | 0.84% |
$2 billion and over | 0.80% |
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
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June 30, 2019 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
571,204,000 | 124,712,000 | (32,868,000) | 91,844,000 |
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Average annual total returns (%) (for the period ended June 30, 2019) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger Select | 02/01/99 | 16.79 | -3.80 | 8.40 | 12.93 | 10.11 | |
Russell 2500 Growth Index | 23.92 | 6.13 | 9.98 | 15.67 | - |
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(Unaudited)
Top ten holdings (%) (at June 30, 2019) | |
Masimo Corp. Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 4.4 |
Bright Horizons Family Solutions, Inc. Child care and early education services | 4.4 |
Black Knight, Inc. Integrated technology, work flow automation, data and analytic solutions | 4.4 |
Encompass Health Corp. Inpatient rehabilitative healthcare services | 4.2 |
Gartner, Inc. Research and analysis on computer hardware, software, communications, and information technology | 4.0 |
Toro Co. (The) Turf equipment | 3.9 |
SVB Financial Group Holding company for Silicon Valley Bank | 3.8 |
GoDaddy, Inc., Class A Cloud-based web platform for small businesses, web design professionals and individuals | 3.7 |
Dorman Products, Inc. Automotive products and home hardware | 3.5 |
BWX Technologies, Inc. Nuclear components and fuel | 3.3 |
Portfolio breakdown (%) (at June 30, 2019) | |
Common Stocks | 97.9 |
Money Market Funds | 1.9 |
Securities Lending Collateral | 0.2 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2019) | |
Communication Services | 4.8 |
Consumer Discretionary | 16.2 |
Financials | 9.3 |
Health Care | 24.7 |
Industrials | 16.2 |
Information Technology | 26.2 |
Real Estate | 2.6 |
Total | 100.0 |
4 | Wanger Select | Semiannual Report 2019 |
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January 1, 2019 — June 30, 2019 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger Select | 1,000.00 | 1,000.00 | 1,167.90 | 1,020.35 | 4.52 | 4.21 | 0.85 |
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Common Stocks 98.1% | ||
Issuer | Shares | Value ($) |
Communication Services 4.7% | ||
Entertainment 4.7% | ||
Madison Square Garden Co. (The), Class A(a) Sports, entertainment and media | 10,142 | 2,839,151 |
Zynga, Inc., Class A(a) Social gaming company | 418,750 | 2,566,938 |
Total | 5,406,089 | |
Total Communication Services | 5,406,089 | |
Consumer Discretionary 15.9% | ||
Auto Components 6.3% | ||
Dorman Products, Inc.(a) Automotive products and home hardware | 44,666 | 3,892,195 |
LCI Industries Recreational vehicles and equipment | 37,165 | 3,344,850 |
Total | 7,237,045 | |
Diversified Consumer Services 7.2% | ||
Bright Horizons Family Solutions, Inc.(a) Child care and early education services | 32,567 | 4,913,383 |
Grand Canyon Education, Inc.(a) Online post secondary education | 29,270 | 3,425,176 |
Total | 8,338,559 | |
Hotels, Restaurants & Leisure 2.4% | ||
Extended Stay America, Inc. Hotels and motels | 161,000 | 2,719,290 |
Total Consumer Discretionary | 18,294,894 | |
Financials 9.2% | ||
Banks 3.7% | ||
SVB Financial Group(a) Holding company for Silicon Valley Bank | 18,988 | 4,264,515 |
Capital Markets 3.0% | ||
Ares Management Corp., Class A Asset management firm | 129,927 | 3,400,189 |
Thrifts & Mortgage Finance 2.5% | ||
Walker & Dunlop, Inc. Commercial real estate financial services | 54,000 | 2,873,340 |
Total Financials | 10,538,044 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care 24.2% | ||
Biotechnology 3.5% | ||
Seattle Genetics, Inc.(a) Monoclonal antibody-based drugs to treat cancer and related diseases | 36,644 | 2,536,131 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 23,797 | 1,511,110 |
Total | 4,047,241 | |
Health Care Equipment & Supplies 9.2% | ||
Masimo Corp.(a) Medical signal processing and sensor technology for non-invasive monitoring of physiological parameters | 33,511 | 4,987,107 |
Penumbra, Inc.(a) Peripheral vascular & neurovascular devices | 18,168 | 2,906,880 |
Tactile Systems Technology, Inc.(a) Technology for treating lymphedema, chronic swelling & venous ulcers | 47,602 | 2,709,506 |
Total | 10,603,493 | |
Health Care Providers & Services 7.4% | ||
Chemed Corp. Hospice and palliative care services | 10,260 | 3,702,219 |
Encompass Health Corp. Inpatient rehabilitative healthcare services | 75,448 | 4,780,385 |
Total | 8,482,604 | |
Life Sciences Tools & Services 3.0% | ||
Pra Health Sciences, Inc.(a) Global contract research organization | 34,321 | 3,402,927 |
Pharmaceuticals 1.1% | ||
Optinose, Inc.(a),(b) Health care services | 179,129 | 1,268,233 |
Total Health Care | 27,804,498 | |
Industrials 15.9% | ||
Aerospace & Defense 3.3% | ||
BWX Technologies, Inc. Nuclear components and fuel | 72,238 | 3,763,600 |
Construction & Engineering 2.9% | ||
Comfort Systems U.S.A., Inc. Heating, ventilation and air conditioning systems | 65,000 | 3,314,350 |
8 | Wanger Select | Semiannual Report 2019 |
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June 30, 2019 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Machinery 7.0% | ||
ITT, Inc. Engineered components & customized technology solutions | 56,107 | 3,673,887 |
Toro Co. (The) Turf equipment | 65,459 | 4,379,207 |
Total | 8,053,094 | |
Trading Companies & Distributors 2.7% | ||
Air Lease Corp. Aircraft leasing company | 75,145 | 3,106,494 |
Total Industrials | 18,237,538 | |
Information Technology 25.7% | ||
Electronic Equipment, Instruments & Components 3.1% | ||
Cognex Corp. Machine vision systems | 73,910 | 3,546,202 |
IT Services 14.3% | ||
Black Knight, Inc.(a) Integrated technology, work flow automation, data and analytic solutions | 81,539 | 4,904,571 |
Booz Allen Hamilton Holdings Corp. Technology consulting services to the U.S. government in the defense, intelligence, and civil markets | 42,200 | 2,794,062 |
Gartner, Inc.(a) Research and analysis on computer hardware, software, communications, and information technology | 28,250 | 4,546,555 |
GoDaddy, Inc., Class A(a) Cloud-based web platform for small businesses, web design professionals and individuals | 58,856 | 4,128,748 |
Total | 16,373,936 | |
Semiconductors & Semiconductor Equipment 3.1% | ||
MKS Instruments, Inc. Instruments and components used to control and analyze gases in semiconductor manufacturing | 45,816 | 3,568,608 |
Software 5.2% | ||
Cadence Design Systems, Inc.(a) Software technology, design and consulting services and technology | 51,981 | 3,680,775 |
New Relic, Inc.(a) Cloud based application performance management solutions | 26,700 | 2,309,817 |
Total | 5,990,592 | |
Total Information Technology | 29,479,338 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Real Estate 2.5% | ||
Equity Real Estate Investment Trusts (REITS) 2.5% | ||
UMH Properties, Inc. Real estate investment trust | 232,687 | 2,887,646 |
Total Real Estate | 2,887,646 | |
Total Common Stocks (Cost: $99,816,445) | 112,648,047 | |
Securities Lending Collateral 0.2% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.250%(c),(d) | 258,525 | 258,525 |
Total Securities Lending Collateral (Cost: $258,525) | 258,525 | |
Money Market Funds 2.0% | ||
Columbia Short-Term Cash Fund, 2.433%(c),(e) | 2,211,591 | 2,211,370 |
Total Money Market Funds (Cost: $2,211,370) | 2,211,370 | |
Total Investments in Securities (Cost $102,286,340) | 115,117,942 | |
Obligation to Return Collateral for Securities Loaned | (258,525) | |
Other Assets & Liabilities, Net | (38,736) | |
Net Assets | $114,820,681 |
Wanger Select | Semiannual Report 2019 | 9 |
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June 30, 2019 (Unaudited)
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at June 30, 2019. The total market value of securities on loan at June 30, 2019 was $271,164. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2019. |
(d) | Investment made with cash collateral received from securities lending activity. |
(e) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended June 30, 2019 are as follows: |
Issuer | Beginning shares | Shares purchased | Shares sold | Ending shares | Realized gain (loss) — affiliated issuers ($) | Net change in unrealized appreciation (depreciation) — affiliated issuers ($) | Dividend — affiliated issuers ($) | Value — affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 2.433% | ||||||||
3,395,951 | 49,461,249 | (50,645,609) | 2,211,591 | (299) | — | 31,099 | 2,211,370 |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
10 | Wanger Select | Semiannual Report 2019 |
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The following table is a summary of the inputs used to value the Fund’s investments at June 30, 2019:
Level 1 quoted prices in active markets for identical assets ($) | 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 | 5,406,089 | — | — | — | 5,406,089 |
Consumer Discretionary | 18,294,894 | — | — | — | 18,294,894 |
Financials | 10,538,044 | — | — | — | 10,538,044 |
Health Care | 27,804,498 | — | — | — | 27,804,498 |
Industrials | 18,237,538 | — | — | — | 18,237,538 |
Information Technology | 29,479,338 | — | — | — | 29,479,338 |
Real Estate | 2,887,646 | — | — | — | 2,887,646 |
Total Common Stocks | 112,648,047 | — | — | — | 112,648,047 |
Securities Lending Collateral | 258,525 | — | — | — | 258,525 |
Money Market Funds | — | — | — | 2,211,370 | 2,211,370 |
Total Investments in Securities | 112,906,572 | — | — | 2,211,370 | 115,117,942 |
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June 30, 2019 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $100,074,970) | $112,906,572 |
Affiliated issuers (cost $2,211,370) | 2,211,370 |
Receivable for: | |
Capital shares sold | 44,146 |
Dividends | 57,202 |
Securities lending income | 241 |
Prepaid expenses | 1,210 |
Total assets | 115,220,741 |
Liabilities | |
Due upon return of securities on loan | 258,525 |
Payable for: | |
Capital shares purchased | 8,108 |
Investment advisory fee | 1,863 |
Service fees | 28,559 |
Administration fees | 155 |
Trustees’ fees | 56,397 |
Audit fees | 20,995 |
Printing and postage fees | 24,834 |
Other expenses | 624 |
Total liabilities | 400,060 |
Net assets applicable to outstanding capital stock | $114,820,681 |
Represented by | |
Paid in capital | 92,857,959 |
Total distributable earnings (loss) | 21,962,722 |
Total - representing net assets applicable to outstanding capital stock | $114,820,681 |
Shares outstanding | 6,951,777 |
Net asset value per share | 16.52 |
* Includes the value of securities on loan | 271,164 |
12 | Wanger Select | Semiannual Report 2019 |
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Six Months Ended June 30, 2019 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $604,063 |
Dividends — affiliated issuers | 31,099 |
Income from securities lending — net | 774 |
Foreign taxes withheld | (4,872) |
Total income | 631,064 |
Expenses: | |
Investment advisory fee | 454,791 |
Service fees | 92,107 |
Administration fees | 28,424 |
Trustees’ fees | 17,374 |
Custodian fees | 2,159 |
Printing and postage fees | 18,948 |
Audit fees | 17,085 |
Legal fees | 11,575 |
Compensation of chief compliance officer | 239 |
Other | 5,664 |
Total expenses | 648,366 |
Fees waived by transfer agent | (52,313) |
Advisory fee waiver | (113,698) |
Total net expenses | 482,355 |
Net investment income | 148,709 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 9,298,903 |
Investments — affiliated issuers | (299) |
Net realized gain | 9,298,604 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 8,146,385 |
Net change in unrealized appreciation (depreciation) | 8,146,385 |
Net realized and unrealized gain | 17,444,989 |
Net increase in net assets resulting from operations | $17,593,698 |
Wanger Select | Semiannual Report 2019 | 13 |
Table of Contents
Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |
Operations | ||
Net investment income | $148,709 | $465,355 |
Net realized gain | 9,298,604 | 14,719,330 |
Net change in unrealized appreciation (depreciation) | 8,146,385 | (29,878,533) |
Net increase (decrease) in net assets resulting from operations | 17,593,698 | (14,693,848) |
Distributions to shareholders | ||
Net investment income and net realized gains | (15,116,774) | (15,240,367) |
Total distributions to shareholders | (15,116,774) | (15,240,367) |
Increase (decrease) in net assets from capital stock activity | 5,875,028 | (4,810,029) |
Total increase (decrease) in net assets | 8,351,952 | (34,744,244) |
Net assets at beginning of period | 106,468,729 | 141,212,973 |
Net assets at end of period | $114,820,681 | $106,468,729 |
Six Months Ended | Year Ended | |||
June 30, 2019 (Unaudited) | December 31, 2018 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 66,283 | 1,197,266 | 252,736 | 5,232,746 |
Distributions reinvested | 934,288 | 15,116,774 | 739,801 | 15,240,367 |
Redemptions | (571,880) | (10,439,012) | (1,243,911) | (25,283,142) |
Total net increase (decrease) | 428,691 | 5,875,028 | (251,374) | (4,810,029) |
14 | Wanger Select | Semiannual Report 2019 |
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Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Per share data | ||||||
Net asset value, beginning of period | $16.32 | $20.84 | $19.10 | $24.18 | $32.99 | $36.41 |
Income from investment operations: | ||||||
Net investment income (loss) | 0.02 | 0.07 | 0.04 | 0.03 | (0.02) | (0.07) |
Net realized and unrealized gain (loss) | 2.67 | (2.15) | 4.62 | 2.48 | 0.69 | 1.07 |
Total from investment operations | 2.69 | (2.08) | 4.66 | 2.51 | 0.67 | 1.00 |
Less distributions to shareholders from: | ||||||
Net investment income | (0.02) | (0.04) | (0.03) | (0.03) | (0.00)(a) | — |
Net realized gains | (2.47) | (2.40) | (2.89) | (7.56) | (9.48) | (4.42) |
Total distributions to shareholders | (2.49) | (2.44) | (2.92) | (7.59) | (9.48) | (4.42) |
Net asset value, end of period | $16.52 | $16.32 | $20.84 | $19.10 | $24.18 | $32.99 |
Total return | 16.79%(b) | (12.41)%(b) | 26.67%(b) | 13.31%(b) | 0.26%(b) | 3.17% |
Ratios to average net assets | ||||||
Total gross expenses(c) | 1.14%(d) | 1.10% | 1.05% | 0.93%(e) | 0.98% | 0.93%(f) |
Total net expenses(c) | 0.85%(d) | 0.78% | 0.77% | 0.73%(e) | 0.85% | 0.93%(f) |
Net investment income (loss) | 0.26%(d) | 0.34% | 0.19% | 0.17% | (0.06)% | (0.20)% |
Supplemental data | ||||||
Portfolio turnover | 92% | 66% | 52% | 93% | 59% | 18% |
Net assets, end of period (in thousands) | $114,821 | $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) | Annualized. |
(e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by 0.03%. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
(f) | Ratios include line of credit interest expense which is less than 0.01%. |
Wanger Select | Semiannual Report 2019 | 15 |
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June 30, 2019 (Unaudited)
Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger Select | |||||
Securities lending transactions | |||||
Equity securities | $271,164 | $— | $— | $— | $271,164 |
Gross amount of recognized liabilities for securities lending (collateral received) | 258,525 | ||||
Amounts due to counterparty in the event of default | $(12,639) |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 258,525 |
Total Liabilities | 258,525 |
Total Financial and Derivative Net Assets | (258,525) |
Financial Instruments | 271,164 |
Net Amount | 12,639 |
Wanger Select | Semiannual Report 2019 | 17 |
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June 30, 2019 (Unaudited)
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June 30, 2019 (Unaudited)
Average daily net assets | Annual fee rate |
Up to $500 million | 0.80% |
$500 million and over | 0.78% |
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
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Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
102,286,000 | 15,856,000 | (3,024,000) | 12,832,000 |
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Average annual total returns (%) (for the period ended June 30, 2019) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life | ||
Wanger International | 05/03/95 | 16.96 | -2.44 | 2.65 | 9.09 | 11.28 | |
MSCI ACWI ex USA Small Cap Growth Index (Net) | 13.59 | -6.37 | 3.53 | 8.79 | - | ||
MSCI ACWI ex USA Small Cap Index (Net) | 11.60 | -5.94 | 2.77 | 8.48 | - |
Wanger International | Semiannual Report 2019 | 3 |
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Top ten holdings (%) (at June 30, 2019) | |
Nemetschek SE (Germany) Standard software for designing, constructing and managing buildings and real estate | 2.3 |
SimCorp AS (Denmark) Global provider of highly specialised software for the investment management industry | 2.3 |
Sweco AB, Class B (Sweden) Consulting company specializing in engineering, environmental technology, and architecture | 1.9 |
Rightmove PLC (United Kingdom) Website that lists properties across Britain | 1.8 |
Kindred Group PLC (Malta) Online gambling services | 1.8 |
Dechra Pharmaceuticals PLC (United Kingdom) International veterinary pharmaceuticals | 1.6 |
Akka Technologies (France) High-technology engineering consulting services | 1.6 |
Intermediate Capital Group PLC (United Kingdom) Private equity firm | 1.5 |
Mapletree Commercial Trust (Singapore) Singapore-focused real estate investment trust | 1.5 |
Industria Macchine Automatiche SpA (Italy) Packaging machinery for the food, pharmaceuticals, and cosmetics industries | 1.4 |
Equity sector breakdown (%) (at June 30, 2019) | |
Communication Services | 7.1 |
Consumer Discretionary | 12.7 |
Consumer Staples | 5.2 |
Energy | 1.4 |
Financials | 12.1 |
Health Care | 8.0 |
Industrials | 24.5 |
Information Technology | 16.7 |
Materials | 6.9 |
Real Estate | 5.4 |
Total | 100.0 |
Country breakdown (%) (at June 30, 2019) | |
Australia | 5.6 |
Belgium | 0.6 |
Brazil | 1.8 |
Cambodia | 1.0 |
Canada | 4.8 |
China | 0.4 |
Cyprus | 0.2 |
Denmark | 2.2 |
France | 2.0 |
Germany | 6.0 |
Hong Kong | 2.3 |
India | 2.6 |
Indonesia | 0.9 |
Ireland | 1.2 |
Italy | 4.1 |
Japan | 20.0 |
Malta | 1.7 |
Mexico | 0.9 |
Netherlands | 1.6 |
New Zealand | 0.7 |
Norway | 0.5 |
Poland | 1.2 |
Russian Federation | 0.9 |
Singapore | 1.4 |
South Africa | 1.0 |
South Korea | 3.3 |
Spain | 0.5 |
Sweden | 4.5 |
Switzerland | 3.2 |
Taiwan | 5.1 |
Thailand | 0.8 |
Turkey | 0.3 |
United Kingdom | 12.5 |
United States(a) | 4.2 |
Total | 100.0 |
(a) | Includes investments in Money Market Funds. |
4 | Wanger International | Semiannual Report 2019 |
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January 1, 2019 — June 30, 2019 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger International | 1,000.00 | 1,000.00 | 1,169.60 | 1,018.78 | 6.22 | 5.79 | 1.17 |
Wanger International | Semiannual Report 2019 | 7 |
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June 30, 2019 (Unaudited)
Common Stocks 98.1% | ||
Issuer | Shares | Value ($) |
Australia 5.6% | ||
carsales.com Ltd. Automotive & related industry websites | 499,148 | 4,750,840 |
Cleanaway Waste Management Ltd. Waste management services | 1,365,565 | 2,238,109 |
Costa Group Holdings Ltd. Fruits and vegetables | 384,000 | 1,091,054 |
DuluxGroup Ltd. Manufactures and supplies paints and other surface coatings | 895,919 | 5,863,909 |
Evolution Mining Ltd. Gold exploration | 1,453,000 | 4,453,160 |
National Storage REIT Owns self storage facilities | 2,931,531 | 3,604,766 |
National Storage REIT(a) Self storage facilities | 293,000 | 360,288 |
Star Entertainment Group Ltd. (The) Casinos and hotels | 1,162,043 | 3,364,742 |
Total | 25,726,868 | |
Belgium 0.6% | ||
Melexis NV Advanced integrated semiconductors, sensor ICs, and programmable sensor IC systems | 43,729 | 2,956,810 |
Brazil 1.8% | ||
Localiza Rent a Car SA Rents automobiles | 308,400 | 3,267,958 |
Sul America SA Full service insurance company | 509,600 | 4,984,590 |
Total | 8,252,548 | |
Cambodia 1.0% | ||
NagaCorp Ltd. Leisure and tourism company | 3,698,000 | 4,548,388 |
Canada 4.8% | ||
AG Growth International, Inc. Manufacturer of Augers & Grain Handling Equipment | 96,308 | 4,044,855 |
CAE, Inc. Training solutions based on simulation technology and integrated training services | 208,804 | 5,614,134 |
CES Energy Solutions Corp. Oil and natural gas industry | 1,313,590 | 2,427,466 |
Osisko Gold Royalties Ltd.(b) Precious metal royalty and stream company | 372,310 | 3,880,746 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Seven Generations Energy Ltd.(a) Oil and gas resources | 470,645 | 2,307,312 |
ShawCor Ltd. Energy services company | 120,488 | 1,685,572 |
Winpak Ltd. Packaging materials and machines for the protection of perishables | 71,113 | 2,345,906 |
Total | 22,305,991 | |
China 0.4% | ||
Xiabuxiabu Catering Management China Holdings Co., Ltd.(b) Chain of restaurants in China | 1,249,000 | 1,813,356 |
Cyprus 0.2% | ||
TCS Group Holding PLC, GDR Online retail financial services | 34,786 | 681,806 |
Denmark 2.2% | ||
SimCorp AS Global provider of highly specialised software for the investment management industry | 106,485 | 10,307,971 |
France 2.0% | ||
Akka Technologies High-technology engineering consulting services | 98,079 | 7,063,367 |
Robertet SA Liquid flavorings, perfumes and associated natural aromatic ingredients | 2,930 | 2,128,958 |
Total | 9,192,325 | |
Germany 6.0% | ||
Deutsche Beteiligungs AG Private equity company, investing in domestic medium-sized companies | 56,779 | 2,191,928 |
Hypoport AG(a) Technology service provider | 5,012 | 1,368,304 |
Nemetschek SE Standard software for designing, constructing and managing buildings and real estate | 176,208 | 10,615,281 |
Stroeer SE & Co. KGaA Digital multi-channel media company | 63,216 | 4,749,172 |
Varta AG(a) Manufactures and markets a wide range of industrial, commercial and miniaturized batteries | 79,706 | 4,948,600 |
Washtec AG Car, truck and railroad car washing systems | 57,398 | 3,902,983 |
Total | 27,776,268 |
8 | Wanger International | Semiannual Report 2019 |
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Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Hong Kong 2.3% | ||
ASM Pacific Technology Ltd. Machines, tools & materials used in the semiconductor industry | 228,600 | 2,343,700 |
Stella International Holdings Ltd. Footwear products | 1,359,500 | 2,297,246 |
Value Partners Group Ltd. Independent, value oriented asset management group | 2,913,000 | 1,945,638 |
Vitasoy International Holdings Ltd. Food and beverages | 838,000 | 4,029,920 |
Total | 10,616,504 | |
India 2.7% | ||
Care Ratings Ltd. Credit rating services | 142,656 | 1,949,876 |
Cholamandalam Investment and Finance Co., Ltd. Financial services provider | 1,200,905 | 4,968,941 |
GRUH Finance Ltd.(a) Provides a range of home loans as well as insurance products | 680,255 | 2,720,287 |
PI Industries Ltd. Agricultural and fine chemicals and polymers | 151,732 | 2,579,092 |
Total | 12,218,196 | |
Indonesia 0.9% | ||
PT Link Net Tbk High-speed internet connection through fiber optic lines | 7,519,100 | 2,261,984 |
PT Tower Bersama Infrastructure Tbk Telecommunication infrastructure services to Indonesian wireless carriers | 7,184,800 | 1,928,592 |
Total | 4,190,576 | |
Ireland 1.2% | ||
UDG Healthcare PLC Commercialisation solutions for health care companies | 553,372 | 5,613,674 |
Italy 4.1% | ||
Amplifon SpA Hearing aids | 121,827 | 2,854,519 |
Carel Industries SpA Control solutions for HVAC and humidification systems | 290,013 | 3,528,580 |
Freni Brembo SpA Braking systems and components | 545,320 | 6,275,755 |
Industria Macchine Automatiche SpA Packaging machinery for the food, pharmaceuticals, and cosmetics industries | 76,508 | 6,344,824 |
Total | 19,003,678 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Japan 20.0% | ||
Aeon Credit Service Co., Ltd. Credit card company | 126,100 | 2,035,236 |
Aeon Mall Co., Ltd. Large-scale shopping malls | 309,600 | 4,665,047 |
Aica Kogyo Co., Ltd. Manufactures adhesives, melamine boards, and housing materials | 70,100 | 2,349,674 |
Aruhi Corp.(b) Finance services | 125,700 | 2,471,428 |
Azbil Corp. Provides measurement and control technologies | 188,028 | 4,604,253 |
CyberAgent, Inc. Operates websites, internet advertising agency and creates PC and mobile contents | 117,700 | 4,289,234 |
Daiseki Co., Ltd. Waste Disposal & Recycling | 145,900 | 3,658,092 |
Fuji Oil Holdings, Inc. Specialty vegetable oils and fats | 116,500 | 3,514,327 |
Glory Ltd. Vending machines, coin-operated lockers, money handling machines, and data processing terminals | 134,100 | 3,548,928 |
Hoshizaki Corp. Commercial Kitchen Equipment | 34,600 | 2,580,167 |
Invesco Office J-REIT, Inc. Commercial and office buildings | 13,850 | 2,317,285 |
KH Neochem Co., Ltd. Manufactures and sells petroleum chemical products | 117,300 | 2,884,462 |
Mandom Corp. Cosmetic products for men and women | 172,900 | 4,192,554 |
Milbon Co., Ltd. Hair Products for Salons | 90,700 | 4,401,680 |
Miura Co., Ltd. Industrial boilers and related equipment | 94,500 | 2,929,076 |
Nakanishi, Inc. Dental Tools & Machinery | 118,500 | 2,178,997 |
Nihon Unisys Ltd. Computers and peripheral equipment | 83,800 | 2,819,023 |
NSD Co., Ltd. Computer software development | 187,700 | 5,434,334 |
Persol Holdings Co., Ltd. Human resource solutions | 114,100 | 2,690,033 |
SCSK Corp. IT services | 49,500 | 2,440,049 |
Seiren Co., Ltd. Advertising services | 387,600 | 5,408,006 |
Wanger International | Semiannual Report 2019 | 9 |
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Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Seria Co., Ltd. Operates 100 yen chain stores | 142,400 | 3,293,789 |
Sohgo Security Services Co., Ltd. Around the clock security services | 71,600 | 3,309,510 |
Solasto Corp. Medical related contract services | 443,700 | 3,873,384 |
TechnoPro Holdings, Inc. Medical & electronic design and IT & software development | 56,800 | 3,032,068 |
Ushio, Inc. Lamps and optical equipment | 185,100 | 2,391,730 |
Valqua Ltd. Rubber, fiber and resin products | 230,400 | 4,850,696 |
Yokogawa Electric Corp. Information technology solutions | 10,200 | 200,763 |
Total | 92,363,825 | |
Malta 1.7% | ||
Kindred Group PLC Online gambling services | 933,758 | 7,927,050 |
Mexico 0.9% | ||
Corporación Inmobiliaria Vesta SAB de CV Real estate owner, developer and asset administrator | 1,587,600 | 2,337,510 |
Grupo Aeroportuario del Sureste SAB de CV, ADR Operates airports in Mexico | 12,324 | 1,997,843 |
Total | 4,335,353 | |
Netherlands 1.6% | ||
Aalberts NV Industrial services and flow control systems | 83,574 | 3,280,467 |
IMCD NV Specialty chemicals and food ingredients | 43,000 | 3,944,437 |
Total | 7,224,904 | |
New Zealand 0.7% | ||
Restaurant Brands New Zealand Ltd.(a) Fast food restaurant chains | 535,334 | 3,364,783 |
Norway 0.5% | ||
Atea ASA(a) Nordic and Baltic supplier of IT infrastructure | 161,653 | 2,198,213 |
Poland 1.2% | ||
KRUK SA(a) Debt collection services | 111,655 | 5,474,308 |
Russian Federation 0.9% | ||
TCS Group Holding PLC, GDR Online retail financial services | 208,302 | 4,082,719 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Singapore 1.4% | ||
Mapletree Commercial Trust Singapore-focused real estate investment trust | 4,271,107 | 6,599,766 |
South Africa 1.0% | ||
Famous Brands Ltd.(a) Food and beverage company | 430,969 | 2,632,322 |
PSG Group Ltd. Diversified financial services | 127,192 | 2,158,336 |
Total | 4,790,658 | |
South Korea 3.3% | ||
DoubleUGames Co., Ltd. Online and mobile games | 75,420 | 4,053,449 |
Koh Young Technology, Inc. 3D measurement and inspection equipment for testing various machineries | 72,324 | 5,213,972 |
Korea Investment Holdings Co., Ltd. Financial holding company | 85,759 | 6,002,351 |
Total | 15,269,772 | |
Spain 0.5% | ||
Befesa SA Waste recycling services | 57,000 | 2,268,515 |
Sweden 4.5% | ||
AddTech AB, Class B High-tech industrial components and systems | 189,091 | 5,741,804 |
Sectra AB, Class B(a) Medical and communication systems | 62,393 | 2,260,920 |
Sweco AB, Class B Consulting company specializing in engineering, environmental technology, and architecture | 311,847 | 8,567,786 |
Trelleborg AB, Class B Manufactures and distributes industrial products | 285,936 | 4,064,871 |
Total | 20,635,381 | |
Switzerland 3.2% | ||
Belimo Holding AG, Registered Shares Manufactures heating, ventilation and air conditioning equipment | 1,025 | 6,299,938 |
Bossard Holding AG, Class A, Registered Shares Fastening devices, industrial adhesives & tools | 14,502 | 2,257,582 |
Inficon Holding AG Vacuum instruments used to monitor and control production processes | 4,257 | 2,598,101 |
Kardex AG Storage, warehouse and materials handling systems | 20,939 | 3,658,372 |
Total | 14,813,993 |
10 | Wanger International | Semiannual Report 2019 |
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June 30, 2019 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Taiwan 5.2% | ||
Basso Industry Corp. Pneumatic nailers and staplers | 2,011,000 | 3,779,256 |
Gourmet Master Co., Ltd.(a) Coffee & bakery cafes | 394,960 | 2,208,167 |
Grape King Bio Ltd. Beverages, nutrition, pharmaceuticals, syrups and hair care products | 336,000 | 2,215,624 |
Parade Technologies Ltd. Fabless semiconductor company | 244,000 | 4,150,800 |
Silergy Corp. High performance analog integrated circuits | 115,000 | 2,254,649 |
Sinbon Electronics Co., Ltd. Cable, connectors & modems | 1,173,000 | 4,291,470 |
Voltronic Power Technology Corp. Uninterruptible power supply products, inverters, multiple surface mounted devices and other power products | 224,395 | 4,891,110 |
Total | 23,791,076 | |
Thailand 0.8% | ||
Beauty Community PCL Cosmetic and beauty products | 6,244,800 | 832,030 |
Muangthai Capital PCL, Foreign Registered Shares Commercial lending company | 1,503,100 | 2,771,506 |
Total | 3,603,536 | |
Turkey 0.3% | ||
Logo Yazilim Sanayi Ve Ticaret AS(a) Enterprise resource planning software | 214,865 | 1,545,937 |
United Kingdom 12.6% | ||
Ascential PLC Media and consultancy services | 1,302,520 | 5,892,338 |
Dechra Pharmaceuticals PLC International veterinary pharmaceuticals | 211,921 | 7,396,544 |
Genus PLC Cattle breeding and agricultural consultancy services | 84,000 | 2,829,082 |
GW Pharmaceuticals PLC, ADR(a) Cannabinoid prescription medicines | 24,248 | 4,180,113 |
Hastings Group Holdings PLC General insurance services to the automobile and home insurance products | 930,308 | 2,310,904 |
Intermediate Capital Group PLC Private equity firm | 388,857 | 6,820,784 |
Renishaw PLC High technology precision measuring and calibration equipment | 71,667 | 3,881,730 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Rightmove PLC Website that lists properties across Britain | 1,220,999 | 8,306,512 |
Safestore Holdings PLC Self storage facilities | 560,499 | 4,366,926 |
Spectris PLC Products for electronic control and process instrumentation sectors | 110,000 | 4,017,976 |
WH Smith PLC Retails books, magazines, newspapers, and periodicals | 236,284 | 5,918,596 |
Zotefoams PLC Cross-linked polyethylene block foams | 283,000 | 2,109,996 |
Total | 58,031,501 | |
United States 2.0% | ||
Inter Parfums, Inc. Fragrances and related products | 59,136 | 3,931,953 |
Ultragenyx Pharmaceutical, Inc.(a) Therapeutics and sialic acid for treating metabolic, body myopathy, glucuronidase, and rare genetic diseases | 79,713 | 5,061,775 |
Total | 8,993,728 | |
Total Common Stocks (Cost: $370,869,691) | 452,519,977 | |
Securities Lending Collateral 0.7% | ||
Shares | Value ($) | |
Dreyfus Government Cash Management Fund, Institutional Shares, 2.250%(c),(d) | 3,221,913 | 3,221,913 |
Total Securities Lending Collateral (Cost: $3,221,913) | 3,221,913 | |
Money Market Funds 1.6% | ||
Columbia Short-Term Cash Fund, 2.433%(c),(e) | 7,277,238 | 7,276,511 |
Total Money Market Funds (Cost: $7,276,511) | 7,276,511 | |
Total Investments in Securities (Cost: $381,368,115) | 463,018,401 | |
Obligation to Return Collateral for Securities Loaned | (3,221,913) | |
Other Assets & Liabilities, Net | 1,502,625 | |
Net Assets | $461,299,113 |
Wanger International | Semiannual Report 2019 | 11 |
Table of Contents
June 30, 2019 (Unaudited)
Long futures contracts | ||||||
Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
MSCI EAFE Index Future | 28 | 09/2019 | USD | 2,692,620 | 42,692 | — |
MSCI Emerging Markets Index | 12 | 09/2019 | USD | 632,040 | 13,370 | — |
Total | 56,062 | — |
(a) | Non-income producing security. |
(b) | All or a portion of this security was on loan at June 30, 2019. The total market value of securities on loan at June 30, 2019 was $3,067,311. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2019. |
(d) | Investment made with cash collateral received from securities lending activity. |
(e) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended June 30, 2019 are as follows: |
Issuer | Beginning shares | Shares purchased | Shares sold | Ending shares | Realized gain (loss) — affiliated issuers ($) | Net change in unrealized appreciation (depreciation) — affiliated issuers ($) | Dividend — affiliated issuers ($) | Value — affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 2.433% | ||||||||
10,107,748 | 58,571,423 | (61,401,933) | 7,277,238 | 68 | — | 97,323 | 7,276,511 |
ADR | American Depositary Receipt |
GDR | Global Depositary Receipt |
USD | US Dollar |
■ | Level 1 – quoted prices in active markets for identical securities |
■ | Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others) |
■ | Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment) |
12 | Wanger International | Semiannual Report 2019 |
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June 30, 2019 (Unaudited)
The Committee meets as necessary, and no less frequently than quarterly, to determine fair values for securities for which market quotations are not readily available or for which Columbia Wanger Asset Management believes that available market quotations are unreliable. The Committee also reviews the continuing appropriateness of the Policies. In circumstances where a security has been fair valued, the Committee will also review the continuing appropriateness of the current value of the security. The Policies address, among other things: circumstances under which market quotations will be deemed readily available; selection of third party pricing vendors; appropriate pricing methodologies; events that require fair valuation and fair value techniques; circumstances under which securities will be deemed to pose a potential for stale pricing, including when securities are illiquid, restricted, or in default; and certain delegations of authority to determine fair values to the Fund’s investment manager. The Committee may also meet to discuss additional valuation matters, which may include review of back-testing results, review of time-sensitive information or approval of other valuation related actions, and to review the appropriateness of the Policies.
Level 1 quoted prices in active markets for identical assets ($) | Level 2 other significant observable inputs ($) | Level 3 significant unobservable inputs ($) | Investments measured at net asset value ($) | Total ($) | |
Investments in Securities | |||||
Common Stocks | |||||
Australia | — | 25,726,868 | — | — | 25,726,868 |
Belgium | — | 2,956,810 | — | — | 2,956,810 |
Brazil | 8,252,548 | — | — | — | 8,252,548 |
Cambodia | — | 4,548,388 | — | — | 4,548,388 |
Canada | 22,305,991 | — | — | — | 22,305,991 |
China | — | 1,813,356 | — | — | 1,813,356 |
Cyprus | — | 681,806 | — | — | 681,806 |
Denmark | — | 10,307,971 | — | — | 10,307,971 |
France | — | 9,192,325 | — | — | 9,192,325 |
Germany | — | 27,776,268 | — | — | 27,776,268 |
Hong Kong | — | 10,616,504 | — | — | 10,616,504 |
India | — | 12,218,196 | — | — | 12,218,196 |
Indonesia | — | 4,190,576 | — | — | 4,190,576 |
Ireland | — | 5,613,674 | — | — | 5,613,674 |
Italy | — | 19,003,678 | — | — | 19,003,678 |
Japan | — | 92,363,825 | — | — | 92,363,825 |
Malta | — | 7,927,050 | — | — | 7,927,050 |
Mexico | 4,335,353 | — | — | — | 4,335,353 |
Netherlands | — | 7,224,904 | — | — | 7,224,904 |
New Zealand | — | 3,364,783 | — | — | 3,364,783 |
Norway | — | 2,198,213 | — | — | 2,198,213 |
Poland | — | 5,474,308 | — | — | 5,474,308 |
Russian Federation | — | 4,082,719 | — | — | 4,082,719 |
Singapore | — | 6,599,766 | — | — | 6,599,766 |
South Africa | — | 4,790,658 | — | — | 4,790,658 |
South Korea | — | 15,269,772 | — | — | 15,269,772 |
Spain | — | 2,268,515 | — | — | 2,268,515 |
Sweden | — | 20,635,381 | — | — | 20,635,381 |
Switzerland | — | 14,813,993 | — | — | 14,813,993 |
Taiwan | — | 23,791,076 | — | — | 23,791,076 |
Thailand | — | 3,603,536 | — | — | 3,603,536 |
Turkey | — | 1,545,937 | — | — | 1,545,937 |
Wanger International | Semiannual Report 2019 | 13 |
Table of Contents
June 30, 2019 (Unaudited)
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 ($) | |
United Kingdom | 4,180,113 | 53,851,388 | — | — | 58,031,501 |
United States | 8,993,728 | — | — | — | 8,993,728 |
Total Common Stocks | 48,067,733 | 404,452,244 | — | — | 452,519,977 |
Securities Lending Collateral | 3,221,913 | — | — | — | 3,221,913 |
Money Market Funds | — | — | — | 7,276,511 | 7,276,511 |
Total Investments in Securities | 51,289,646 | 404,452,244 | — | 7,276,511 | 463,018,401 |
Investments in Derivatives | |||||
Asset | |||||
Futures Contracts | 56,062 | — | — | — | 56,062 |
Total | 51,345,708 | 404,452,244 | — | 7,276,511 | 463,074,463 |
14 | Wanger International | Semiannual Report 2019 |
Table of Contents
June 30, 2019 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $374,091,604) | $455,741,890 |
Affiliated issuers (cost $7,276,511) | 7,276,511 |
Cash | 37 |
Margin deposits on: | |
Futures contracts | 157,200 |
Receivable for: | |
Investments sold | 2,113,334 |
Capital shares sold | 18,752 |
Dividends | 599,336 |
Securities lending income | 8,210 |
Foreign tax reclaims | 600,304 |
Variation margin for futures contracts | 13,440 |
Prepaid expenses | 4,315 |
Trustees’ deferred compensation plan | 236,558 |
Total assets | 466,769,887 |
Liabilities | |
Foreign currency (cost $44,372) | 44,478 |
Due upon return of securities on loan | 3,221,913 |
Payable for: | |
Investments purchased | 1,410,542 |
Capital shares purchased | 339,404 |
Variation margin for futures contracts | 1,620 |
Investment advisory fee | 12,009 |
Service fees | 5,688 |
Administration fees | 625 |
Trustees’ fees | 242 |
Other expenses | 197,695 |
Trustees’ deferred compensation plan | 236,558 |
Total liabilities | 5,470,774 |
Net assets applicable to outstanding capital stock | $461,299,113 |
Represented by | |
Paid in capital | 376,557,750 |
Total distributable earnings (loss) | 84,741,363 |
Total - representing net assets applicable to outstanding capital stock | $461,299,113 |
Shares outstanding | 19,590,129 |
Net asset value per share | 23.55 |
* Includes the value of securities on loan | 3,067,311 |
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Six Months Ended June 30, 2019 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $6,442,204 |
Dividends — affiliated issuers | 97,323 |
Interest | 1,681 |
Income from securities lending — net | 34,619 |
Foreign taxes withheld | (591,747) |
Total income | 5,984,080 |
Expenses: | |
Investment advisory fee | 2,149,515 |
Service fees | 195,981 |
Administration fees | 111,925 |
Trustees’ fees | 25,802 |
Custodian fees | 68,474 |
Printing and postage fees | 82,885 |
Audit fees | 43,336 |
Legal fees | 45,156 |
Compensation of chief compliance officer | 925 |
Other | 14,970 |
Total expenses | 2,738,969 |
Fees waived by transfer agent | (128,826) |
Total net expenses | 2,610,143 |
Net investment income | 3,373,937 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 3,243,183 |
Investments — affiliated issuers | 68 |
Foreign currency translations | 14,113 |
Futures contracts | (277,942) |
Net realized gain | 2,979,422 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | 64,213,139 |
Foreign currency translations | (1,606) |
Futures contracts | 56,062 |
Net change in unrealized appreciation (depreciation) | 64,267,595 |
Net realized and unrealized gain | 67,247,017 |
Net increase in net assets resulting from operations | $70,620,954 |
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Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, 2018 | |
Operations | ||
Net investment income | $3,373,937 | $5,509,775 |
Net realized gain | 2,979,422 | 42,430,610 |
Net change in unrealized appreciation (depreciation) | 64,267,595 | (140,751,833) |
Net increase (decrease) in net assets resulting from operations | 70,620,954 | (92,811,448) |
Distributions to shareholders | ||
Net investment income and net realized gains | (42,102,833) | (71,062,256) |
Total distributions to shareholders | (42,102,833) | (71,062,256) |
Increase in net assets from capital stock activity | 6,421,525 | 12,145,365 |
Total increase (decrease) in net assets | 34,939,646 | (151,728,339) |
Net assets at beginning of period | 426,359,467 | 578,087,806 |
Net assets at end of period | $461,299,113 | $426,359,467 |
Six Months Ended | Year Ended | |||
June 30, 2019 (Unaudited) | December 31, 2018 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 96,047 | 2,333,257 | 504,907 | 13,396,267 |
Distributions reinvested | 1,835,346 | 42,102,833 | 2,539,748 | 71,062,256 |
Redemptions | (1,544,200) | (38,014,565) | (2,583,573) | (72,313,158) |
Total net increase | 387,193 | 6,421,525 | 461,082 | 12,145,365 |
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Six Months Ended June 30, 2019 (Unaudited) | Year Ended December 31, | |||||
2018 | 2017 | 2016 | 2015 | 2014 | ||
Per share data | ||||||
Net asset value, beginning of period | $22.20 | $30.84 | $23.64 | $26.32 | $29.07 | $34.55 |
Income from investment operations: | ||||||
Net investment income | 0.18 | 0.29 | 0.25 | 0.31 | 0.31 | 0.36 |
Net realized and unrealized gain (loss) | 3.52 | (4.93) | 7.49 | (0.56) | (0.09) | (1.56) |
Total from investment operations | 3.70 | (4.64) | 7.74 | (0.25) | 0.22 | (1.20) |
Less distributions to shareholders from: | ||||||
Net investment income | (0.03) | (0.60) | (0.34) | (0.29) | (0.41) | (0.48) |
Net realized gains | (2.32) | (3.40) | (0.20) | (2.14) | (2.57) | (3.80) |
Total distributions to shareholders | (2.35) | (4.00) | (0.54) | (2.43) | (2.98) | (4.28) |
Proceeds from regulatory settlements | — | — | — | — | 0.01 | — |
Net asset value, end of period | $23.55 | $22.20 | $30.84 | $23.64 | $26.32 | $29.07 |
Total return | 16.96%(a) | (17.70)%(a) | 32.91%(a) | (1.41)% | 0.10%(b) | (4.40)% |
Ratios to average net assets | ||||||
Total gross expenses(c) | 1.22%(d) | 1.19% | 1.16% | 1.08%(e) | 1.12% | 1.05% |
Total net expenses(c) | 1.17%(d) | 1.13% | 1.12% | 1.08%(e) | 1.12% | 1.05% |
Net investment income | 1.51%(d) | 1.03% | 0.92% | 1.23% | 1.11% | 1.10% |
Supplemental data | ||||||
Portfolio turnover | 23% | 47% | 55% | 56% | 53% | 28% |
Net assets, end of period (in thousands) | $461,299 | $426,359 | $578,088 | $494,795 | $586,629 | $667,023 |
Notes to Financial Highlights | |
(a) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(b) | The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.02%. |
(c) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(d) | Annualized. |
(e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by 0.05%. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
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June 30, 2019 (Unaudited)
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June 30, 2019 (Unaudited)
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June 30, 2019 (Unaudited)
Asset derivatives | ||
Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
Equity risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 56,062* |
* | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
Amount of realized gain (loss) on derivatives recognized in income | |
Risk exposure category | Futures contracts ($) |
Equity risk | (277,942) |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
Risk exposure category | Futures contracts ($) |
Equity risk | 56,062 |
Derivative instrument | Average notional amounts ($)* |
Futures contracts — long | 1,662,330 |
* | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2019. |
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June 30, 2019 (Unaudited)
Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger International | |||||
Securities lending transactions | |||||
Equity securities | $3,067,311 | $— | $— | $— | $3,067,311 |
Gross amount of recognized liabilities for securities lending (collateral received) | 3,221,913 | ||||
Amounts due to counterparty in the event of default | $154,602 |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 3,221,913 |
Total Liabilities | 3,221,913 |
Total Financial and Derivative Net Assets | (3,221,913) |
Financial Instruments | 3,067,311 |
Net Amount(a) | (154,602) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
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June 30, 2019 (Unaudited)
Average daily net assets | Annual fee rate |
Up to $100 million | 1.10% |
$100 million to $250 million | 0.95% |
$250 million to $500 million | 0.90% |
$500 million to $1 billion | 0.80% |
$1 billion and over | 0.72% |
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June 30, 2019 (Unaudited)
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
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June 30, 2019 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
381,368,000 | 108,125,000 | (26,419,000) | 81,706,000 |
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![](https://capedge.com/proxy/N-CSRS/0001193125-19-237385/g760675imgfc691f532.jpg)
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Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a) | The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 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 officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that 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: Not applicable for semiannual reports.
(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/ Louis Mendes Louis Mendes, Co-President and Principal Executive Officer | ||||
Date August 22, 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/ Louis Mendes | ||
Louis Mendes, Co-President and Principal Executive Officer
| ||
Date August 22, 2019
| ||
By (Signature and Title) /s/ John M. Kunka | ||
John M. Kunka, Treasurer and Principal Accounting and Financial Officer | ||
Date August 22, 2019 |