UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08748
Wanger Advisors Trust
(Exact name of registrant as specified in charter)
71 S Wacker Dr.
Suite 2500
Chicago, IL 60606, USA
(Address of principal executive offices) (Zip code)
Ryan C. Larrenaga
c/o Columbia Management
Investment Advisers, LLC
290 Congress Street
Boston, Massachusetts 02210
Daniel J. Beckman
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, Massachusetts 02210
Mary C. Moynihan
Perkins Coie LLP
700 13th Street, NW
Suite 800
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, 2021
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
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June 30, 2021
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14 | |
25 | |
25 |
(Unaudited)
Average annual total returns (%) (for the period ended June 30, 2021) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life of Fund | ||
Wanger International | 05/03/95 | 10.72 | 41.52 | 12.20 | 7.68 | 11.83 | |
MSCI ACWI ex USA Small Cap Growth Index (Net) | 10.32 | 44.91 | 13.29 | 7.89 | - | ||
MSCI ACWI ex USA Small Cap Index (Net) | 12.24 | 47.04 | 11.97 | 7.02 | - |
Wanger International | Semiannual Report 2021 | 3 |
(Unaudited)
Equity sector breakdown (%) (at June 30, 2021) | |
Communication Services | 5.1 |
Consumer Discretionary | 12.8 |
Consumer Staples | 2.5 |
Financials | 8.5 |
Health Care | 17.8 |
Industrials | 20.8 |
Information Technology | 21.1 |
Materials | 6.8 |
Real Estate | 4.6 |
Total | 100.0 |
Country breakdown (%) (at June 30, 2021) | |
Australia | 5.1 |
Austria | 1.0 |
Brazil | 2.0 |
Cambodia | 0.7 |
Canada | 1.4 |
China | 1.1 |
Denmark | 3.4 |
France | 1.0 |
Germany | 9.6 |
Greece | 0.6 |
Hong Kong | 1.0 |
Italy | 3.3 |
Japan | 17.9 |
Malta | 0.7 |
Mexico | 1.2 |
Netherlands | 4.1 |
Russian Federation | 0.9 |
Singapore | 2.2 |
South Korea | 2.9 |
Spain | 1.6 |
Sweden | 10.2 |
Switzerland | 3.7 |
Taiwan | 5.8 |
United Kingdom | 15.5 |
United States(a) | 3.1 |
Total | 100.0 |
(a) | Includes investments in Money Market Funds. |
4 | Wanger International | Semiannual Report 2021 |
(Unaudited)
January 1, 2021 — June 30, 2021 | |||||||
Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
Wanger International | 1,000.00 | 1,000.00 | 1,107.20 | 1,018.84 | 6.27 | 6.01 | 1.20 |
Wanger International | Semiannual Report 2021 | 5 |
June 30, 2021 (Unaudited)
Common Stocks 99.0% | ||
Issuer | Shares | Value ($) |
Australia 5.1% | ||
Bapcor Ltd. | 1,218,600 | 7,765,054 |
carsales.com Ltd. | 413,923 | 6,129,807 |
IDP Education Ltd. | 265,800 | 4,895,375 |
Temple & Webster Group Ltd.(a) | 745,000 | 6,010,216 |
Total | 24,800,452 | |
Austria 1.0% | ||
S&T AG | 204,384 | 4,683,369 |
Brazil 2.0% | ||
Notre Dame Intermedica Participacoes SA | 167,560 | 2,866,894 |
TOTVS SA | 906,000 | 6,834,436 |
Total | 9,701,330 | |
Cambodia 0.7% | ||
NagaCorp Ltd. | 3,588,000 | 3,460,289 |
Canada 1.4% | ||
Osisko Gold Royalties Ltd. | 505,051 | 6,922,246 |
China 1.1% | ||
Silergy Corp. | 40,000 | 5,428,941 |
Denmark 3.5% | ||
ALK-Abello AS(a) | 14,835 | 7,080,369 |
SimCorp AS | 76,457 | 9,603,193 |
Total | 16,683,562 | |
France 1.1% | ||
Robertet SA | 4,098 | 5,053,572 |
Germany 9.7% | ||
Eckert & Ziegler Strahlen- und Medizintechnik AG | 43,172 | 4,937,198 |
Exasol AG(a) | 246,726 | 5,128,495 |
Hypoport SE(a) | 28,241 | 14,613,544 |
Jenoptik AG | 163,547 | 4,475,723 |
Nemetschek SE | 107,650 | 8,240,234 |
Washtec AG | 156,146 | 9,695,361 |
Total | 47,090,555 | |
Greece 0.6% | ||
JUMBO SA | 176,522 | 2,973,182 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Hong Kong 1.0% | ||
Vitasoy International Holdings Ltd. | 1,322,000 | 4,907,942 |
Italy 3.3% | ||
Amplifon SpA | 138,810 | 6,863,286 |
Carel Industries SpA | 196,887 | 4,727,540 |
GVS SpA | 270,645 | 4,433,708 |
Total | 16,024,534 | |
Japan 18.0% | ||
Aruhi Corp. | 448,300 | 5,767,730 |
Avant Corp. | 705,600 | 10,473,160 |
Daiseki Co., Ltd. | 260,700 | 11,710,743 |
Elecom Co., Ltd. | 239,800 | 4,485,354 |
Fuso Chemical Co., Ltd. | 189,800 | 6,986,962 |
Nihon Unisys Ltd. | 171,200 | 5,151,829 |
NSD Co., Ltd. | 299,500 | 5,003,873 |
Seiren Co., Ltd. | 447,900 | 8,831,778 |
Sekisui Chemical Co., Ltd. | 638,100 | 10,925,553 |
Solasto Corp. | 933,500 | 11,829,533 |
Valqua Ltd. | 310,600 | 6,074,027 |
Total | 87,240,542 | |
Malta 0.7% | ||
Kindred Group PLC | 218,541 | 3,428,567 |
Mexico 1.2% | ||
Corporación Inmobiliaria Vesta SAB de CV | 2,957,163 | 5,761,825 |
Netherlands 4.1% | ||
Argenx SE, ADR(a) | 17,153 | 5,164,254 |
BE Semiconductor Industries NV | 29,200 | 2,488,359 |
IMCD NV | 76,455 | 12,181,959 |
Total | 19,834,572 | |
Russian Federation 0.9% | ||
TCS Group Holding PLC, GDR | 51,903 | 4,543,766 |
Singapore 2.2% | ||
Mapletree Commercial Trust | 3,132,907 | 5,039,409 |
Mapletree Logistics Trust | 3,646,085 | 5,573,860 |
Total | 10,613,269 |
6 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
South Korea 3.0% | ||
Koh Young Technology, Inc. | 351,516 | 7,426,103 |
Korea Investment Holdings Co., Ltd. | 75,418 | 6,899,779 |
Total | 14,325,882 | |
Spain 1.6% | ||
Vidrala SA | 63,741 | 7,618,554 |
Sweden 10.3% | ||
AddTech AB, B Shares | 570,579 | 9,471,613 |
Dometic Group AB | 447,644 | 7,627,828 |
Dustin Group AB(b) | 436,170 | 5,759,130 |
Munters Group AB | 837,317 | 7,484,693 |
Sectra AB, Class B(a) | 156,393 | 12,106,702 |
Sweco AB, Class B | 415,998 | 7,568,372 |
Total | 50,018,338 | |
Switzerland 3.7% | ||
Belimo Holding AG, Registered Shares | 22,080 | 10,111,884 |
Kardex Energy AG | 22,000 | 5,092,013 |
Montana Aerospace AG(a),(c) | 66,140 | 2,784,278 |
Total | 17,988,175 | |
Taiwan 5.8% | ||
Parade Technologies Ltd. | 215,000 | 10,669,590 |
Sinbon Electronics Co., Ltd. | 636,000 | 6,249,181 |
Universal Vision Biotechnology Co., Ltd. | 227,000 | 2,810,682 |
Voltronic Power Technology Corp. | 177,495 | 8,562,385 |
Total | 28,291,838 | |
United Kingdom 15.6% | ||
Abcam PLC(a) | 129,373 | 2,471,461 |
Auto Trader Group PLC(a) | 597,624 | 5,233,994 |
Dechra Pharmaceuticals PLC | 254,970 | 15,412,990 |
Diploma PLC | 247,665 | 9,963,127 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Genus PLC | 134,700 | 9,250,813 |
Intermediate Capital Group PLC | 311,634 | 9,166,141 |
Porvair PLC | 640,750 | 5,176,281 |
Rightmove PLC | 1,485,098 | 13,348,367 |
Safestore Holdings PLC | 442,775 | 5,800,287 |
Total | 75,823,461 | |
United States 1.4% | ||
Inter Parfums, Inc. | 95,954 | 6,908,688 |
Total Common Stocks (Cost $323,516,967) | 480,127,451 | |
Securities Lending Collateral 0.9% | ||
Dreyfus Government Cash Management Fund, Institutional Shares, 0.030%(d),(e) | 4,272,000 | 4,272,000 |
Total Securities Lending Collateral (Cost $4,272,000) | 4,272,000 | |
Money Market Funds 0.8% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 0.051%(d),(f) | 3,953,489 | 3,953,093 |
Total Money Market Funds (Cost $3,952,605) | 3,953,093 | |
Total Investments in Securities (Cost $331,741,572) | 488,352,544 | |
Obligation to Return Collateral for Securities Loaned | (4,272,000) | |
Other Assets & Liabilities, Net | 1,112,878 | |
Net Assets | $485,193,422 |
(a) | Non-income producing investment. |
(b) | All or a portion of this security was on loan at June 30, 2021. The total market value of securities on loan at June 30, 2021 was $4,228,177. |
(c) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At June 30, 2021, the total value of these securities amounted to $2,784,278, which represents 0.57% of total net assets. |
(d) | The rate shown is the seven-day current annualized yield at June 30, 2021. |
Wanger International | Semiannual Report 2021 | 7 |
June 30, 2021 (Unaudited)
(e) | Investment made with cash collateral received from securities lending activity. |
(f) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2021 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 0.051% | ||||||||
9,879,253 | 52,859,886 | (58,785,933) | (113) | 3,953,093 | 113 | 2,422 | 3,953,489 |
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 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Australia | — | 24,800,452 | — | 24,800,452 |
Austria | — | 4,683,369 | — | 4,683,369 |
Brazil | 9,701,330 | — | — | 9,701,330 |
Cambodia | — | 3,460,289 | — | 3,460,289 |
Canada | 6,922,246 | — | — | 6,922,246 |
China | — | 5,428,941 | — | 5,428,941 |
Denmark | — | 16,683,562 | — | 16,683,562 |
France | — | 5,053,572 | — | 5,053,572 |
Germany | — | 47,090,555 | — | 47,090,555 |
Greece | — | 2,973,182 | — | 2,973,182 |
Hong Kong | — | 4,907,942 | — | 4,907,942 |
8 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Italy | — | 16,024,534 | — | 16,024,534 |
Japan | — | 87,240,542 | — | 87,240,542 |
Malta | — | 3,428,567 | — | 3,428,567 |
Mexico | 5,761,825 | — | — | 5,761,825 |
Netherlands | 5,164,254 | 14,670,318 | — | 19,834,572 |
Russian Federation | — | 4,543,766 | — | 4,543,766 |
Singapore | — | 10,613,269 | — | 10,613,269 |
South Korea | — | 14,325,882 | — | 14,325,882 |
Spain | — | 7,618,554 | — | 7,618,554 |
Sweden | — | 50,018,338 | — | 50,018,338 |
Switzerland | — | 17,988,175 | — | 17,988,175 |
Taiwan | — | 28,291,838 | — | 28,291,838 |
United Kingdom | — | 75,823,461 | — | 75,823,461 |
United States | 6,908,688 | — | — | 6,908,688 |
Total Common Stocks | 34,458,343 | 445,669,108 | — | 480,127,451 |
Securities Lending Collateral | 4,272,000 | — | — | 4,272,000 |
Money Market Funds | 3,953,093 | — | — | 3,953,093 |
Total Investments in Securities | 42,683,436 | 445,669,108 | — | 488,352,544 |
Wanger International | Semiannual Report 2021 | 9 |
June 30, 2021 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $327,788,967) | $484,399,451 |
Affiliated issuers (cost $3,952,605) | 3,953,093 |
Foreign currency (cost $39) | 39 |
Margin deposits on: | |
Futures contracts | 459,351 |
Receivable for: | |
Investments sold | 1,349,373 |
Capital shares sold | 1,235 |
Dividends | 473,834 |
Securities lending income | 2,393 |
Foreign tax reclaims | 556,654 |
Prepaid expenses | 3,768 |
Trustees’ deferred compensation plan | 345,799 |
Total assets | 491,544,990 |
Liabilities | |
Due upon return of securities on loan | 4,272,000 |
Payable for: | |
Investments purchased | 8,305 |
Capital shares purchased | 1,542,561 |
Investment advisory fee | 12,816 |
Service fees | 74,353 |
Administration fees | 670 |
Trustees’ fees | 1,040 |
Compensation of chief compliance officer | 37 |
Other expenses | 93,987 |
Trustees’ deferred compensation plan | 345,799 |
Total liabilities | 6,351,568 |
Net assets applicable to outstanding capital stock | $485,193,422 |
Represented by | |
Paid in capital | 284,506,712 |
Total distributable earnings (loss) | 200,686,710 |
Total - representing net assets applicable to outstanding capital stock | $485,193,422 |
Shares outstanding | 15,955,416 |
Net asset value per share | 30.41 |
* Includes the value of securities on loan | 4,228,177 |
10 | Wanger International | Semiannual Report 2021 |
Six Months Ended June 30, 2021 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $3,931,048 |
Dividends — affiliated issuers | 2,422 |
Income from securities lending — net | 12,295 |
Foreign taxes withheld | (370,284) |
Total income | 3,575,481 |
Expenses: | |
Investment advisory fee | 2,271,411 |
Service fees | 261,693 |
Administration fees | 118,613 |
Trustees’ fees | 20,478 |
Custodian fees | 53,393 |
Printing and postage fees | 51,736 |
Audit fees | 14,431 |
Legal fees | 35,644 |
Compensation of chief compliance officer | 809 |
Other | 16,693 |
Total expenses | 2,844,901 |
Net investment income | 730,580 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 50,400,771 |
Investments — affiliated issuers | 113 |
Foreign currency translations | (99,559) |
Futures contracts | 164,273 |
Net realized gain | 50,465,598 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (2,376,231) |
Investments — affiliated issuers | (113) |
Foreign currency translations | (41,176) |
Futures contracts | (103,180) |
Net change in unrealized appreciation (depreciation) | (2,520,700) |
Net realized and unrealized gain | 47,944,898 |
Net increase in net assets resulting from operations | $48,675,478 |
Wanger International | Semiannual Report 2021 | 11 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 | |
Operations | ||
Net investment income | $730,580 | $1,399,493 |
Net realized gain | 50,465,598 | 11,236,210 |
Net change in unrealized appreciation (depreciation) | (2,520,700) | 43,240,008 |
Net increase in net assets resulting from operations | 48,675,478 | 55,875,711 |
Distributions to shareholders | ||
Net investment income and net realized gains | (9,927,503) | (23,557,869) |
Total distributions to shareholders | (9,927,503) | (23,557,869) |
Decrease in net assets from capital stock activity | (21,365,914) | (40,068,079) |
Total increase (decrease) in net assets | 17,382,061 | (7,750,237) |
Net assets at beginning of period | 467,811,361 | 475,561,598 |
Net assets at end of period | $485,193,422 | $467,811,361 |
Six Months Ended | Year Ended | |||
June 30, 2021 (Unaudited) | December 31, 2020 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 114,942 | 3,353,568 | 442,771 | 9,071,329 |
Distributions reinvested | 324,110 | 9,927,503 | 1,060,210 | 23,557,869 |
Redemptions | (1,171,530) | (34,646,985) | (3,107,958) | (72,697,277) |
Total net decrease | (732,478) | (21,365,914) | (1,604,977) | (40,068,079) |
12 | Wanger International | Semiannual Report 2021 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Per share data | ||||||
Net asset value, beginning of period | $28.03 | $26.00 | $22.20 | $30.84 | $23.64 | $26.32 |
Income from investment operations: | ||||||
Net investment income | 0.05 | 0.07 | 0.24 | 0.29 | 0.25 | 0.31 |
Net realized and unrealized gain (loss) | 2.96 | 3.31 | 6.08 | (4.93) | 7.49 | (0.56) |
Total from investment operations | 3.01 | 3.38 | 6.32 | (4.64) | 7.74 | (0.25) |
Less distributions to shareholders from: | ||||||
Net investment income | (0.16) | (0.48) | (0.20) | (0.60) | (0.34) | (0.29) |
Net realized gains | (0.47) | (0.87) | (2.32) | (3.40) | (0.20) | (2.14) |
Total distributions to shareholders | (0.63) | (1.35) | (2.52) | (4.00) | (0.54) | (2.43) |
Net asset value, end of period | $30.41 | $28.03 | $26.00 | $22.20 | $30.84 | $23.64 |
Total return | 10.72% | 14.36% | 29.99%(a) | (17.70)%(a) | 32.91%(a) | (1.41)% |
Ratios to average net assets | ||||||
Total gross expenses(b) | 1.20%(c) | 1.25% | 1.23% | 1.19% | 1.16% | 1.08%(d) |
Total net expenses(b) | 1.20%(c) | 1.25% | 1.20% | 1.13% | 1.12% | 1.08%(d) |
Net investment income | 0.31%(c) | 0.34% | 1.01% | 1.03% | 0.92% | 1.23% |
Supplemental data | ||||||
Portfolio turnover | 25% | 60% | 42% | 47% | 55% | 56% |
Net assets, end of period (in thousands) | $485,193 | $467,811 | $475,562 | $426,359 | $578,088 | $494,795 |
Notes to Financial Highlights | |
(a) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(b) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests, if any. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(c) | Annualized. |
(d) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by 0.05%. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
Wanger International | Semiannual Report 2021 | 13 |
June 30, 2021 (Unaudited)
14 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger International | Semiannual Report 2021 | 15 |
June 30, 2021 (Unaudited)
16 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Amount of realized gain (loss) on derivatives recognized in income | |
Risk exposure category | Futures contracts ($) |
Equity risk | 164,273 |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
Risk exposure category | Futures contracts ($) |
Equity risk | (103,180) |
Derivative instrument | Average notional amounts ($)* |
Futures contracts — long | 4,755,382 |
* | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2021. |
Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger International | |||||
Securities lending transactions | |||||
Equity securities | $4,228,177 | $— | $— | $— | $4,228,177 |
Gross amount of recognized liabilities for securities lending (collateral received) | 4,272,000 | ||||
Amounts due to counterparty in the event of default | $43,823 |
Wanger International | Semiannual Report 2021 | 17 |
June 30, 2021 (Unaudited)
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 4,272,000 |
Total Liabilities | 4,272,000 |
Total Financial and Derivative Net Assets | (4,272,000) |
Financial Instruments | 4,228,177 |
Net Amount (a) | (43,823) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
18 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (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% |
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% |
$8 billion and over | 0.02% |
Wanger International | Semiannual Report 2021 | 19 |
June 30, 2021 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
331,742,000 | 161,387,000 | (4,776,000) | 156,611,000 |
20 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger International | Semiannual Report 2021 | 21 |
June 30, 2021 (Unaudited)
22 | Wanger International | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger International | Semiannual Report 2021 | 23 |
June 30, 2021 (Unaudited)
24 | Wanger International | Semiannual Report 2021 |
• | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
• | there were no material changes to the Program during the period; |
• | the Fund’s strategy continued to be effective for an open-end mutual fund; |
• | the implementation of the Program was effective to manage the Fund’s liquidity risk; |
• | the Fund did not require a highly liquid investment minimum; and |
• | the Program operated adequately during the period. |
Wanger International | Semiannual Report 2021 | 25 |
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![](https://capedge.com/proxy/N-CSRS/0001683863-21-004764/imgfdd42c421.jpg)
June 30, 2021
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(Unaudited)
Average annual total returns (%) (for the period ended June 30, 2021) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life of Fund | ||
Wanger USA | 05/03/95 | 9.84 | 47.75 | 18.69 | 13.28 | 12.60 | |
Russell 2000 Growth Index | 8.98 | 51.36 | 18.76 | 13.52 | - |
Wanger USA | Semiannual Report 2021 | 3 |
(Unaudited)
Portfolio breakdown (%) (at June 30, 2021) | |
Common Stocks | 96.1 |
Limited Partnerships | 0.7 |
Money Market Funds | 0.7 |
Securities Lending Collateral | 2.5 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2021) | |
Consumer Discretionary | 20.5 |
Consumer Staples | 2.2 |
Financials | 6.0 |
Health Care | 33.4 |
Industrials | 12.5 |
Information Technology | 22.1 |
Materials | 1.3 |
Real Estate | 2.0 |
Total | 100.0 |
4 | Wanger USA | Semiannual Report 2021 |
(Unaudited)
January 1, 2021 — June 30, 2021 | |||||||
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 | 1,098.40 | 1,019.49 | 5.57 | 5.36 | 1.07 |
Wanger USA | Semiannual Report 2021 | 5 |
June 30, 2021 (Unaudited)
Common Stocks 98.2% | ||
Issuer | Shares | Value ($) |
Consumer Discretionary 19.6% | ||
Auto Components 3.2% | ||
Dorman Products, Inc.(a) | 84,425 | 8,752,340 |
LCI Industries | 53,000 | 6,965,260 |
Visteon Corp.(a) | 61,750 | 7,468,045 |
Total | 23,185,645 | |
Diversified Consumer Services 1.0% | ||
Bright Horizons Family Solutions, Inc.(a) | 48,110 | 7,077,462 |
Hotels, Restaurants & Leisure 7.7% | ||
Choice Hotels International, Inc. | 55,979 | 6,653,664 |
Churchill Downs, Inc. | 74,472 | 14,764,819 |
Planet Fitness, Inc., Class A(a) | 190,225 | 14,314,431 |
Wendy’s Co. (The) | 283,500 | 6,639,570 |
Wingstop, Inc. | 86,925 | 13,701,988 |
Total | 56,074,472 | |
Household Durables 2.3% | ||
Skyline Champion Corp.(a) | 317,200 | 16,906,760 |
Internet & Direct Marketing Retail 1.0% | ||
Poshmark, Inc., Class A(a),(b) | 156,660 | 7,478,948 |
Leisure Products 1.0% | ||
Brunswick Corp. | 69,423 | 6,915,919 |
Specialty Retail 3.4% | ||
Boot Barn Holdings, Inc.(a) | 97,612 | 8,204,289 |
Five Below, Inc.(a) | 37,458 | 7,239,508 |
Vroom, Inc.(a) | 223,519 | 9,356,505 |
Total | 24,800,302 | |
Total Consumer Discretionary | 142,439,508 | |
Consumer Staples 2.2% | ||
Food & Staples Retailing 1.2% | ||
BJ’s Wholesale Club Holdings, Inc.(a) | 180,158 | 8,571,918 |
Household Products 1.0% | ||
WD-40 Co. | 27,914 | 7,154,079 |
Total Consumer Staples | 15,725,997 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Financials 5.9% | ||
Banks 0.6% | ||
Lakeland Financial Corp. | 75,581 | 4,658,813 |
Capital Markets 4.6% | ||
Ares Management Corp., Class A | 63,800 | 4,057,042 |
Foresight Acquisition Corp.(a) | 999,623 | 10,266,128 |
GCM Grosvenor, Inc., Class A(b) | 561,325 | 5,849,007 |
Hamilton Lane, Inc., Class A | 63,873 | 5,820,108 |
Houlihan Lokey, Inc. | 91,308 | 7,468,081 |
Total | 33,460,366 | |
Consumer Finance 0.7% | ||
Upstart Holdings, Inc.(a) | 41,957 | 5,240,429 |
Total Financials | 43,359,608 | |
Health Care 33.1% | ||
Biotechnology 10.9% | ||
Acceleron Pharma, Inc.(a) | 87,772 | 11,014,508 |
Anika Therapeutics, Inc.(a) | 189,907 | 8,221,074 |
Arcus Biosciences, Inc.(a) | 207,544 | 5,699,158 |
CRISPR Therapeutics AG(a) | 29,869 | 4,835,493 |
Fate Therapeutics, Inc.(a) | 161,762 | 14,039,324 |
Insmed, Inc.(a) | 313,998 | 8,936,383 |
Intellia Therapeutics, Inc.(a) | 12,180 | 1,972,064 |
Kura Oncology, Inc.(a) | 356,018 | 7,422,975 |
Mirati Therapeutics, Inc.(a) | 55,556 | 8,973,961 |
Natera, Inc.(a) | 75,101 | 8,526,217 |
Total | 79,641,157 | |
Health Care Equipment & Supplies 4.9% | ||
Eargo, Inc.(a) | 206,402 | 8,237,504 |
Glaukos Corp.(a) | 87,150 | 7,392,934 |
Globus Medical, Inc., Class A(a) | 158,667 | 12,301,453 |
SI-BONE, Inc.(a) | 236,586 | 7,445,361 |
Total | 35,377,252 |
6 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care Providers & Services 7.1% | ||
Amedisys, Inc.(a) | 59,032 | 14,458,708 |
Chemed Corp. | 30,113 | 14,288,618 |
Encompass Health Corp. | 39,950 | 3,117,299 |
LHC Group, Inc.(a) | 53,175 | 10,648,825 |
National Research Corp., Class A | 202,640 | 9,301,176 |
Total | 51,814,626 | |
Health Care Technology 0.9% | ||
Doximity, Inc., Class A(a) | 53,611 | 3,120,160 |
Schrodinger, Inc.(a) | 46,300 | 3,500,743 |
Total | 6,620,903 | |
Life Sciences Tools & Services 7.3% | ||
Bio-Techne Corp. | 16,000 | 7,204,160 |
Codexis, Inc.(a) | 162,650 | 3,685,649 |
NanoString Technologies, Inc.(a) | 125,759 | 8,147,925 |
NeoGenomics, Inc.(a) | 156,500 | 7,069,105 |
Pacific Biosciences of California, Inc.(a) | 357,775 | 12,511,392 |
Repligen Corp.(a) | 71,358 | 14,244,484 |
Total | 52,862,715 | |
Pharmaceuticals 2.0% | ||
Nuvation Bio, Inc.(a),(b) | 502,000 | 4,673,620 |
Reata Pharmaceuticals, Inc., Class A(a) | 67,450 | 9,546,199 |
Total | 14,219,819 | |
Total Health Care | 240,536,472 | |
Industrials 12.3% | ||
Aerospace & Defense 1.0% | ||
Curtiss-Wright Corp. | 59,144 | 7,023,941 |
Electrical Equipment 4.3% | ||
Atkor, Inc.(a) | 89,860 | 6,380,060 |
Plug Power, Inc.(a) | 284,300 | 9,720,217 |
Shoals Technologies Group, Inc., Class A(a) | 432,815 | 15,364,933 |
Total | 31,465,210 | |
Machinery 1.6% | ||
ITT, Inc. | 63,577 | 5,823,017 |
Watts Water Technologies, Inc., Class A | 41,450 | 6,047,970 |
Total | 11,870,987 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Professional Services 2.0% | ||
Exponent, Inc. | 78,272 | 6,982,645 |
ICF International, Inc. | 86,210 | 7,574,411 |
Total | 14,557,056 | |
Road & Rail 1.4% | ||
Saia, Inc.(a) | 47,643 | 9,980,732 |
Trading Companies & Distributors 2.0% | ||
SiteOne Landscape Supply, Inc.(a) | 88,136 | 14,917,899 |
Total Industrials | 89,815,825 | |
Information Technology 21.9% | ||
Communications Equipment 1.2% | ||
Calix, Inc.(a) | 181,699 | 8,630,703 |
Electronic Equipment, Instruments & Components 2.1% | ||
Advanced Energy Industries, Inc. | 56,822 | 6,404,407 |
Badger Meter, Inc. | 74,708 | 7,330,349 |
ePlus, Inc.(a) | 16,220 | 1,406,112 |
Total | 15,140,868 | |
IT Services 2.9% | ||
DigitalOcean Holdings, Inc.(a) | 155,359 | 8,636,407 |
Endava PLC, ADR(a) | 109,599 | 12,426,334 |
Total | 21,062,741 | |
Semiconductors & Semiconductor Equipment 0.7% | ||
Marvell Technology, Inc. | 90,757 | 5,293,856 |
Software 15.0% | ||
Blackline, Inc.(a) | 146,789 | 16,333,212 |
CyberArk Software Ltd.(a) | 28,366 | 3,695,239 |
Elastic NV(a) | 75,014 | 10,934,040 |
j2 Global, Inc.(a) | 89,625 | 12,327,919 |
JFrog Ltd.(a),(b) | 184,815 | 8,412,779 |
Manhattan Associates, Inc.(a) | 67,379 | 9,759,174 |
Medallia, Inc.(a) | 134,900 | 4,552,875 |
Mimecast Ltd.(a) | 162,454 | 8,618,185 |
Olo, Inc., Class A(a),(b) | 230,194 | 8,606,954 |
ON24, Inc.(a) | 114,300 | 4,055,364 |
Wanger USA | Semiannual Report 2021 | 7 |
June 30, 2021 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Sprout Social, Inc., Class A(a) | 158,547 | 14,177,273 |
Voyager Digital Ltd.(a) | 452,703 | 7,680,106 |
Total | 109,153,120 | |
Total Information Technology | 159,281,288 | |
Materials 1.3% | ||
Chemicals 1.3% | ||
Avient Corp. | 190,147 | 9,347,626 |
Total Materials | 9,347,626 | |
Real Estate 1.9% | ||
Real Estate Management & Development 1.9% | ||
Colliers International Group, Inc. | 78,000 | 8,734,440 |
FirstService Corp. | 30,840 | 5,281,658 |
Total | 14,016,098 | |
Total Real Estate | 14,016,098 | |
Total Common Stocks (Cost $508,274,657) | 714,522,422 | |
Limited Partnerships 0.7% | ||
Consumer Discretionary 0.7% | ||
Hotels, Restaurants & Leisure 0.7% | ||
Cedar Fair LP(a) | 121,000 | 5,424,430 |
Total Consumer Discretionary | 5,424,430 | |
Total Limited Partnerships (Cost $3,172,492) | 5,424,430 | |
Securities Lending Collateral 2.6% | ||
Issuer | Shares | Value ($) |
Dreyfus Government Cash Management Fund, Institutional Shares, 0.030%(c),(d) | 18,688,995 | 18,688,995 |
Total Securities Lending Collateral (Cost $18,688,995) | 18,688,995 | |
Money Market Funds 0.7% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 0.051%(c),(e) | 5,168,765 | 5,168,248 |
Total Money Market Funds (Cost $5,168,018) | 5,168,248 | |
Total Investments in Securities (Cost: $535,304,162) | 743,804,095 | |
Obligation to Return Collateral for Securities Loaned | (18,688,995) | |
Other Assets & Liabilities, Net | 2,418,524 | |
Net Assets | 727,533,624 |
(a) | Non-income producing investment. |
(b) | All or a portion of this security was on loan at June 30, 2021. The total market value of securities on loan at June 30, 2021 was $18,509,099. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2021. |
(d) | Investment made with cash collateral received from securities lending activity. |
(e) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2021 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 0.051% | ||||||||
3,273,726 | 168,060,554 | (166,165,386) | (646) | 5,168,248 | 646 | 6,758 | 5,168,765 |
ADR | American Depositary Receipt |
8 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
■ | 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 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Consumer Discretionary | 142,439,508 | — | — | 142,439,508 |
Consumer Staples | 15,725,997 | — | — | 15,725,997 |
Financials | 43,359,608 | — | — | 43,359,608 |
Health Care | 240,536,472 | — | — | 240,536,472 |
Industrials | 89,815,825 | — | — | 89,815,825 |
Information Technology | 151,601,182 | 7,680,106 | — | 159,281,288 |
Materials | 9,347,626 | — | — | 9,347,626 |
Real Estate | 14,016,098 | — | — | 14,016,098 |
Total Common Stocks | 706,842,316 | 7,680,106 | — | 714,522,422 |
Limited Partnerships | ||||
Consumer Discretionary | 5,424,430 | — | — | 5,424,430 |
Total Limited Partnerships | 5,424,430 | — | — | 5,424,430 |
Securities Lending Collateral | 18,688,995 | — | — | 18,688,995 |
Money Market Funds | 5,168,248 | — | — | 5,168,248 |
Total Investments in Securities | 736,123,989 | 7,680,106 | — | 743,804,095 |
Wanger USA | Semiannual Report 2021 | 9 |
June 30, 2021 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $530,136,144) | $738,635,847 |
Affiliated issuers (cost $5,168,018) | 5,168,248 |
Receivable for: | |
Investments sold | 7,928,753 |
Capital shares sold | 99,941 |
Dividends | 155,309 |
Securities lending income | 157,878 |
Foreign tax reclaims | 953 |
Prepaid expenses | 5,179 |
Trustees’ deferred compensation plan | 360,739 |
Total assets | 752,512,847 |
Liabilities | |
Due upon return of securities on loan | 18,688,995 |
Payable for: | |
Investments purchased | 5,132,427 |
Capital shares purchased | 615,176 |
Investment advisory fee | 17,305 |
Service fees | 111,035 |
Administration fees | 1,001 |
Trustees’ fees | 1,191 |
Other expenses | 51,354 |
Trustees’ deferred compensation plan | 360,739 |
Total liabilities | 24,979,223 |
Net assets applicable to outstanding capital stock | $727,533,624 |
Represented by | |
Paid in capital | 417,572,230 |
Total distributable earnings (loss) | 309,961,394 |
Total - representing net assets applicable to outstanding capital stock | $727,533,624 |
Shares outstanding | 27,798,635 |
Net asset value per share | 26.17 |
* Includes the value of securities on loan | 18,509,099 |
10 | Wanger USA | Semiannual Report 2021 |
Six Months Ended June 30, 2021 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $1,156,679 |
Dividends — affiliated issuers | 6,758 |
Income from securities lending — net | 425,011 |
Foreign taxes withheld | (2,274) |
Total income | 1,586,174 |
Expenses: | |
Investment advisory fee | 3,144,710 |
Service fees | 398,723 |
Administration fees | 182,020 |
Trustees’ fees | 31,787 |
Custodian fees | 6,403 |
Printing and postage fees | 43,221 |
Audit fees | 13,905 |
Legal fees | 56,225 |
Compensation of chief compliance officer | 1,322 |
Other | 23,007 |
Total expenses | 3,901,323 |
Net investment loss | (2,315,149) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 109,936,958 |
Investments — affiliated issuers | 646 |
Futures contracts | (314,332) |
Net realized gain | 109,623,272 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (38,686,883) |
Investments — affiliated issuers | (646) |
Net change in unrealized appreciation (depreciation) | (38,687,529) |
Net realized and unrealized gain | 70,935,743 |
Net increase in net assets resulting from operations | $68,620,594 |
Wanger USA | Semiannual Report 2021 | 11 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 | |
Operations | ||
Net investment loss | $(2,315,149) | $(3,618,051) |
Net realized gain | 109,623,272 | 24,307,201 |
Net change in unrealized appreciation (depreciation) | (38,687,529) | 115,818,214 |
Net increase in net assets resulting from operations | 68,620,594 | 136,507,364 |
Distributions to shareholders | ||
Net investment income and net realized gains | (23,368,883) | (64,805,114) |
Total distributions to shareholders | (23,368,883) | (64,805,114) |
Decrease in net assets from capital stock activity | (26,060,743) | (30,313,016) |
Total increase in net assets | 19,190,968 | 41,389,234 |
Net assets at beginning of period | 708,342,656 | 666,953,422 |
Net assets at end of period | $727,533,624 | $708,342,656 |
Six Months Ended | Year Ended | |||
June 30, 2021 (Unaudited) | December 31, 2020 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 267,729 | 7,078,300 | 473,106 | 9,018,672 |
Distributions reinvested | 914,634 | 23,368,883 | 3,474,805 | 64,805,114 |
Redemptions | (2,147,252) | (56,507,926) | (5,141,351) | (104,136,802) |
Total net decrease | (964,889) | (26,060,743) | (1,193,440) | (30,313,016) |
12 | Wanger USA | Semiannual Report 2021 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Per share data | ||||||
Net asset value, beginning of period | $24.63 | $22.26 | $20.70 | $26.74 | $26.53 | $31.75 |
Income from investment operations: | ||||||
Net investment income (loss) | (0.08) | (0.12) | (0.02) | (0.02) | (0.02) | (0.04) |
Net realized and unrealized gain | 2.48 | 4.78 | 5.93 | 0.75 | 4.81 | 3.56 |
Total from investment operations | 2.40 | 4.66 | 5.91 | 0.73 | 4.79 | 3.52 |
Less distributions to shareholders from: | ||||||
Net investment income | — | — | (0.07) | (0.03) | — | — |
Net realized gains | (0.86) | (2.29) | (4.28) | (6.74) | (4.58) | (8.74) |
Total distributions to shareholders | (0.86) | (2.29) | (4.35) | (6.77) | (4.58) | (8.74) |
Net asset value, end of period | $26.17 | $24.63 | $22.26 | $20.70 | $26.74 | $26.53 |
Total return | 9.84% | 24.23% | 31.10%(a) | (1.46)%(a) | 19.58%(a) | 13.69% |
Ratios to average net assets | ||||||
Total gross expenses(b) | 1.07%(c) | 1.10% | 1.09% | 1.05% | 1.03% | 1.00% |
Total net expenses(b) | 1.07%(c) | 1.10% | 1.06% | 1.00% | 0.99% | 1.00% |
Net investment loss | (0.64)%(c) | (0.61)% | (0.08)% | (0.09)% | (0.08)% | (0.16)% |
Supplemental data | ||||||
Portfolio turnover | 41% | 92% | 90% | 81% | 96% | 118% |
Net assets, end of period (in thousands) | $727,534 | $708,343 | $666,953 | $581,991 | $684,712 | $664,236 |
Notes to Financial Highlights | |
(a) | Had the Investment Manager and/or its affiliates not waived a portion of expenses, total return would have been reduced. |
(b) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(c) | Annualized. |
Wanger USA | Semiannual Report 2021 | 13 |
June 30, 2021 (Unaudited)
14 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger USA | Semiannual Report 2021 | 15 |
June 30, 2021 (Unaudited)
Amount of realized gain (loss) on derivatives recognized in income | |
Risk exposure category | Futures contracts ($) |
Equity risk | (314,332) |
16 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Derivative instrument | Average notional amounts ($)* |
Futures contracts — long | 5,834,063 |
* | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2021. |
Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger USA | |||||
Securities lending transactions | |||||
Equity securities | $18,509,099 | $— | $— | $— | $18,509,099 |
Gross amount of recognized liabilities for securities lending (collateral received) | 18,688,995 | ||||
Amounts due to counterparty in the event of default | $179,896 |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 18,688,995 |
Total Liabilities | 18,688,995 |
Total Financial and Derivative Net Assets | (18,688,995) |
Financial Instruments | 18,509,099 |
Net Amount (a) | (179,896) |
(a) | Represents the net amount due from/(to) counterparties in the event of default. |
Wanger USA | Semiannual Report 2021 | 17 |
June 30, 2021 (Unaudited)
18 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Average daily net assets | Annual fee rate |
Up to $100 million | 0.94% |
$100 million to $250 million | 0.89% |
$250 million to $2 billion | 0.84% |
$2 billion and over | 0.80% |
Aggregate average daily net assets of the Trust | Annual fee rate |
Up to $4 billion | 0.05% |
$4 billion to $6 billion | 0.04% |
$6 billion to $8 billion | 0.03% |
$8 billion and over | 0.02% |
Wanger USA | Semiannual Report 2021 | 19 |
June 30, 2021 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
535,304,000 | 226,914,000 | (18,414,000) | 208,500,000 |
20 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger USA | Semiannual Report 2021 | 21 |
June 30, 2021 (Unaudited)
22 | Wanger USA | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger USA | Semiannual Report 2021 | 23 |
• | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
• | there were no material changes to the Program during the period; |
• | the Fund’s strategy continued to be effective for an open-end mutual fund; |
• | the implementation of the Program was effective to manage the Fund’s liquidity risk; |
• | the Fund did not require a highly liquid investment minimum; and |
• | the Program operated adequately during the period. |
24 | Wanger USA | Semiannual Report 2021 |
![](https://capedge.com/proxy/N-CSRS/0001683863-21-004764/imgc373f68a2.jpg)
![](https://capedge.com/proxy/N-CSRS/0001683863-21-004764/img5499e2fe1.jpg)
June 30, 2021
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(Unaudited)
Average annual total returns (%) (for the period ended June 30, 2021) | |||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | Life of Fund | ||
Wanger Select | 02/01/99 | 9.62 | 39.63 | 17.72 | 11.94 | 11.28 | |
Russell 2500 Growth Index | 8.67 | 49.63 | 20.68 | 14.83 | - |
Wanger Select | Semiannual Report 2021 | 3 |
(Unaudited)
Portfolio breakdown (%) (at June 30, 2021) | |
Common Stocks | 95.0 |
Money Market Funds | 4.2 |
Securities Lending Collateral | 0.8 |
Total | 100.0 |
Equity sector breakdown (%) (at June 30, 2021) | |
Communication Services | 6.5 |
Consumer Discretionary | 19.4 |
Consumer Staples | 3.0 |
Health Care | 28.0 |
Industrials | 10.7 |
Information Technology | 32.4 |
Total | 100.0 |
4 | Wanger Select | Semiannual Report 2021 |
(Unaudited)
January 1, 2021 — June 30, 2021 | |||||||
Account value at the beginning of the period ($) | 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 | 1,096.20 | 1,020.38 | 4.63 | 4.46 | 0.89 |
Wanger Select | Semiannual Report 2021 | 5 |
June 30, 2021 (Unaudited)
Common Stocks 94.9% | ||
Issuer | Shares | Value ($) |
Communication Services 6.2% | ||
Entertainment 6.2% | ||
Take-Two Interactive Software, Inc.(a) | 21,400 | 3,788,228 |
Zynga, Inc., Class A(a) | 374,009 | 3,975,716 |
Total | 7,763,944 | |
Total Communication Services | 7,763,944 | |
Consumer Discretionary 18.4% | ||
Diversified Consumer Services 3.7% | ||
Chegg, Inc.(a) | 55,100 | 4,579,361 |
Hotels, Restaurants & Leisure 9.5% | ||
Chipotle Mexican Grill, Inc.(a) | 1,700 | 2,635,578 |
Churchill Downs, Inc. | 11,400 | 2,260,164 |
Planet Fitness, Inc., Class A(a) | 49,950 | 3,758,738 |
Wingstop, Inc. | 20,735 | 3,268,458 |
Total | 11,922,938 | |
Household Durables 3.0% | ||
NVR, Inc.(a) | 760 | 3,779,708 |
Specialty Retail 2.2% | ||
Vroom, Inc.(a),(b) | 67,375 | 2,820,317 |
Total Consumer Discretionary | 23,102,324 | |
Consumer Staples 2.9% | ||
Food & Staples Retailing 2.9% | ||
BJ’s Wholesale Club Holdings, Inc.(a) | 76,700 | 3,649,386 |
Total Consumer Staples | 3,649,386 | |
Health Care 26.5% | ||
Biotechnology 11.0% | ||
Acceleron Pharma, Inc.(a) | 26,650 | 3,344,308 |
BioMarin Pharmaceutical, Inc.(a) | 31,065 | 2,592,064 |
CRISPR Therapeutics AG(a) | 10,250 | 1,659,373 |
Insmed, Inc.(a) | 83,759 | 2,383,781 |
Natera, Inc.(a) | 33,400 | 3,791,902 |
Total | 13,771,428 | |
Health Care Equipment & Supplies 6.4% | ||
Globus Medical, Inc., Class A(a) | 47,200 | 3,659,416 |
Masimo Corp.(a) | 18,285 | 4,433,198 |
Total | 8,092,614 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care Providers & Services 6.2% | ||
Amedisys, Inc.(a) | 13,850 | 3,392,280 |
Chemed Corp. | 9,208 | 4,369,196 |
Total | 7,761,476 | |
Life Sciences Tools & Services 2.9% | ||
Bio-Techne Corp. | 8,260 | 3,719,148 |
Total Health Care | 33,344,666 | |
Industrials 10.2% | ||
Building Products 2.9% | ||
Lennox International, Inc. | 10,200 | 3,578,160 |
Electrical Equipment 4.2% | ||
Atkor, Inc.(a) | 34,487 | 2,448,577 |
Plug Power, Inc.(a) | 84,150 | 2,877,089 |
Total | 5,325,666 | |
Trading Companies & Distributors 3.1% | ||
Watsco, Inc. | 13,500 | 3,869,640 |
Total Industrials | 12,773,466 | |
Information Technology 30.7% | ||
IT Services 2.9% | ||
MongoDB, Inc.(a) | 10,020 | 3,622,430 |
Semiconductors & Semiconductor Equipment 3.9% | ||
Teradyne, Inc. | 36,350 | 4,869,446 |
Software 23.9% | ||
Blackline, Inc.(a) | 30,100 | 3,349,227 |
Cadence Design Systems, Inc.(a) | 29,891 | 4,089,687 |
Dolby Laboratories, Inc., Class A | 32,900 | 3,233,741 |
Elastic NV(a) | 29,825 | 4,347,292 |
HubSpot, Inc.(a) | 8,025 | 4,676,328 |
Manhattan Associates, Inc.(a) | 21,835 | 3,162,581 |
Zendesk, Inc.(a) | 23,700 | 3,420,858 |
Zscaler, Inc.(a) | 17,750 | 3,835,065 |
Total | 30,114,779 | |
Total Information Technology | 38,606,655 | |
Total Common Stocks (Cost $97,500,949) | 119,240,441 | |
6 | Wanger Select | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Securities Lending Collateral 0.9% | ||
Issuer | Shares | Value ($) |
Dreyfus Government Cash Management Fund, Institutional Shares, 0.030%(c),(d) | 1,038,825 | 1,038,825 |
Total Securities Lending Collateral (Cost $1,038,825) | 1,038,825 | |
Money Market Funds 4.2% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 0.051%(c),(e) | 5,301,142 | 5,300,612 |
Total Money Market Funds (Cost $5,300,612) | 5,300,612 | |
Total Investments in Securities (Cost: $103,840,386) | 125,579,878 | |
Obligation to Return Collateral for Securities Loaned | (1,038,825) | |
Other Assets & Liabilities, Net | 1,078,600 | |
Net Assets | 125,619,653 |
(a) | Non-income producing investment. |
(b) | All or a portion of this security was on loan at June 30, 2021. The total market value of securities on loan at June 30, 2021 was $1,017,198. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2021. |
(d) | Investment made with cash collateral received from securities lending activity. |
(e) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2021 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 0.051% | ||||||||
736,282 | 36,931,584 | (32,367,254) | — | 5,300,612 | — | 848 | 5,301,142 |
■ | 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) |
Wanger Select | Semiannual Report 2021 | 7 |
June 30, 2021 (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 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Communication Services | 7,763,944 | — | — | 7,763,944 |
Consumer Discretionary | 23,102,324 | — | — | 23,102,324 |
Consumer Staples | 3,649,386 | — | — | 3,649,386 |
Health Care | 33,344,666 | — | — | 33,344,666 |
Industrials | 12,773,466 | — | — | 12,773,466 |
Information Technology | 38,606,655 | — | — | 38,606,655 |
Total Common Stocks | 119,240,441 | — | — | 119,240,441 |
Securities Lending Collateral | 1,038,825 | — | — | 1,038,825 |
Money Market Funds | 5,300,612 | — | — | 5,300,612 |
Total Investments in Securities | 125,579,878 | — | — | 125,579,878 |
8 | Wanger Select | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Assets | |
Investments in securities, at value* | |
Unaffiliated issuers (cost $98,539,774) | $120,279,266 |
Affiliated issuers (cost $5,300,612) | 5,300,612 |
Receivable for: | |
Investments sold | 1,286,978 |
Capital shares sold | 384 |
Dividends | 9,533 |
Securities lending income | 96 |
Expense reimbursement due from Investment Manager | 116 |
Prepaid expenses | 969 |
Total assets | 126,877,954 |
Liabilities | |
Due upon return of securities on loan | 1,038,825 |
Payable for: | |
Capital shares purchased | 52,610 |
Investment advisory fee | 2,083 |
Service fees | 46,597 |
Administration fees | 173 |
Trustees’ fees | 83,541 |
Compensation of chief compliance officer | 2 |
Other expenses | 34,470 |
Total liabilities | 1,258,301 |
Net assets applicable to outstanding capital stock | $125,619,653 |
Represented by | |
Paid in capital | 81,752,528 |
Total distributable earnings (loss) | 43,867,125 |
Total - representing net assets applicable to outstanding capital stock | $125,619,653 |
Shares outstanding | 6,283,127 |
Net asset value per share | 19.99 |
* Includes the value of securities on loan | 1,017,198 |
Wanger Select | Semiannual Report 2021 | 9 |
Six Months Ended June 30, 2021 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $120,865 |
Dividends — affiliated issuers | 848 |
Income from securities lending — net | 2,045 |
Total income | 123,758 |
Expenses: | |
Investment advisory fee | 488,180 |
Service fees | 109,957 |
Administration fees | 30,511 |
Trustees’ fees | 17,823 |
Custodian fees | 2,017 |
Printing and postage fees | 21,580 |
Audit fees | 13,905 |
Legal fees | 9,323 |
Compensation of chief compliance officer | 217 |
Other | 7,728 |
Total expenses | 701,241 |
Fees waived or expenses reimbursed by Investment Manager and its affiliates | (36,096) |
Advisory fee waiver | (122,045) |
Total net expenses | 543,100 |
Net investment loss | (419,342) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 22,644,338 |
Net realized gain | 22,644,338 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (10,801,646) |
Net change in unrealized appreciation (depreciation) | (10,801,646) |
Net realized and unrealized gain | 11,842,692 |
Net increase in net assets resulting from operations | $11,423,350 |
10 | Wanger Select | Semiannual Report 2021 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, 2020 | |
Operations | ||
Net investment loss | $(419,342) | $(579,291) |
Net realized gain | 22,644,338 | 14,062,066 |
Net change in unrealized appreciation (depreciation) | (10,801,646) | 11,670,224 |
Net increase in net assets resulting from operations | 11,423,350 | 25,152,999 |
Distributions to shareholders | ||
Net investment income and net realized gains | (13,070,321) | (13,024,104) |
Total distributions to shareholders | (13,070,321) | (13,024,104) |
Increase (decrease) in net assets from capital stock activity | 5,615,263 | (7,156,817) |
Total increase in net assets | 3,968,292 | 4,972,078 |
Net assets at beginning of period | 121,651,361 | 116,679,283 |
Net assets at end of period | $125,619,653 | $121,651,361 |
Six Months Ended | Year Ended | |||
June 30, 2021 (Unaudited) | December 31, 2020 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Subscriptions | 56,624 | 1,186,630 | 200,527 | 3,552,084 |
Distributions reinvested | 679,684 | 13,070,321 | 788,384 | 13,024,104 |
Redemptions | (412,056) | (8,641,688) | (1,408,832) | (23,733,005) |
Total net increase (decrease) | 324,252 | 5,615,263 | (419,921) | (7,156,817) |
Wanger Select | Semiannual Report 2021 | 11 |
Six Months Ended June 30, 2021 (Unaudited) | Year Ended December 31, | |||||
2020 | 2019 | 2018 | 2017 | 2016 | ||
Per share data | ||||||
Net asset value, beginning of period | $20.42 | $18.29 | $16.32 | $20.84 | $19.10 | $24.18 |
Income from investment operations: | ||||||
Net investment income (loss) | (0.07) | (0.09) | (0.02) | 0.07 | 0.04 | 0.03 |
Net realized and unrealized gain (loss) | 1.94 | 4.44 | 4.48 | (2.15) | 4.62 | 2.48 |
Total from investment operations | 1.87 | 4.35 | 4.46 | (2.08) | 4.66 | 2.51 |
Less distributions to shareholders from: | ||||||
Net investment income | — | (0.14) | (0.02) | (0.04) | (0.03) | (0.03) |
Net realized gains | (2.30) | (2.08) | (2.47) | (2.40) | (2.89) | (7.56) |
Total distributions to shareholders | (2.30) | (2.22) | (2.49) | (2.44) | (2.92) | (7.59) |
Net asset value, end of period | $19.99 | $20.42 | $18.29 | $16.32 | $20.84 | $19.10 |
Total return(a) | 9.62% | 26.65% | 29.30% | (12.41)% | 26.67% | 13.31% |
Ratios to average net assets | ||||||
Total gross expenses(b) | 1.15%(c) | 1.16%(d) | 1.15% | 1.10% | 1.05% | 0.93%(e) |
Total net expenses(b) | 0.89%(c) | 0.89%(d) | 0.88% | 0.78% | 0.77% | 0.73%(e) |
Net investment income (loss) | (0.69)%(c) | (0.54)% | (0.14)% | 0.34% | 0.19% | 0.17% |
Supplemental data | ||||||
Portfolio turnover | 51% | 109% | 152% | 66% | 52% | 93% |
Net assets, end of period (in thousands) | $125,620 | $121,651 | $116,679 | $106,469 | $141,213 | $125,500 |
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, if any. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(c) | Annualized. |
(d) | Ratios include line of credit interest expense which is less than 0.01%. |
(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. |
12 | Wanger Select | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger Select | Semiannual Report 2021 | 13 |
June 30, 2021 (Unaudited)
Overnight and continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |
Wanger Select | |||||
Securities lending transactions | |||||
Equity securities | $1,017,198 | $— | $— | $— | $1,017,198 |
Gross amount of recognized liabilities for securities lending (collateral received) | 1,038,825 | ||||
Amounts due to counterparty in the event of default | $21,627 |
Goldman Sachs ($) | |
Liabilities | |
Collateral on Securities Loaned | 1,038,825 |
Total Liabilities | 1,038,825 |
Total Financial and Derivative Net Assets | (1,038,825) |
Financial Instruments | 1,017,198 |
Net Amount | (21,627) |
14 | Wanger Select | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger Select | Semiannual Report 2021 | 15 |
June 30, 2021 (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% |
$8 billion and over | 0.02% |
16 | Wanger Select | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
103,840,000 | 23,981,000 | (2,241,000) | 21,740,000 |
Wanger Select | Semiannual Report 2021 | 17 |
June 30, 2021 (Unaudited)
18 | Wanger Select | Semiannual Report 2021 |
June 30, 2021 (Unaudited)
Wanger Select | Semiannual Report 2021 | 19 |
June 30, 2021 (Unaudited)
20 | Wanger Select | Semiannual Report 2021 |
• | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
• | there were no material changes to the Program during the period; |
• | the Fund’s strategy continued to be effective for an open-end mutual fund; |
• | the implementation of the Program was effective to manage the Fund’s liquidity risk; |
• | the Fund did not require a highly liquid investment minimum; and |
• | the Program operated adequately during the period. |
Wanger Select | Semiannual Report 2021 | 21 |
![](https://capedge.com/proxy/N-CSRS/0001683863-21-004764/imgd9bafdef2.jpg)
Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a)The registrant's "Schedule I – Investments in securities of unaffiliated issuers" (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.
(b)Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 11. Controls and Procedures.
(a)The registrant's principal executive officer and principal financial officers, based on their evaluation of the registrant's disclosure controls and procedures as of a
date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant's management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b)There was no change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) Code of ethics required to be disclosed under Item 2 of Form N-CSR: Not applicable for semiannual reports.
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/ Daniel J. Beckman |
| ||
|
|
| Daniel J. Beckman, Co-President and Principal Executive Officer | |
Date |
| August 20, 2021 |
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Daniel J. Beckman |
| ||
|
| Daniel J. Beckman, Co-President and Principal Executive Officer | ||
Date |
| August 20, 2021 |
| |
By (Signature and Title) | /s/ Michael G. Clarke |
| ||
|
| Michael G. Clarke, Treasurer and Principal Accounting and Financial Officer | ||
Date |
| August 20, 2021 |
|