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46 |
Average annual total returns (%) (for the period ended June 30, 2022) | ||||||
Inception | 6 Months cumulative | 1 Year | 5 Years | 10 Years | ||
Market Price | 01/05/29 | -18.09 | -10.47 | 10.14 | 12.02 | |
Net Asset Value | 01/05/29 | -15.68 | -7.75 | 10.26 | 11.76 | |
S&P 500 Index | -19.96 | -10.62 | 11.31 | 12.96 | ||
Blended Benchmark | -17.81 | -12.34 | 8.91 | 10.62 |
Price Per Share | ||||
June 30, 2022 | March 31, 2022 | December 31, 2021 | ||
Market Price ($) | 26.17 | 30.84 | 33.19 | |
Net Asset Value ($) | 29.78 | 35.34 | 36.69 |
Distributions Paid Per Common Share (a) | |
Payable Date | Per Share Amount ($) |
March 24, 2022 | 0.2700 |
June 22, 2022 | 0.8071 (b) |
2 | Tri-Continental Corporation | Semiannual Report 2022 |
Portfolio breakdown (%) (at June 30, 2022) | |
Common Stocks | 72.6 |
Convertible Bonds | 5.5 |
Convertible Preferred Stocks | 5.3 |
Corporate Bonds & Notes | 15.6 |
Money Market Funds | 0.7 |
Preferred Debt | 0.3 |
Warrants | 0.0 (a) |
Total | 100.0 |
(a) | Rounds to zero. |
Equity sector breakdown (%) (at June 30, 2022) | |
Communication Services | 7.3 |
Consumer Discretionary | 8.7 |
Consumer Staples | 6.4 |
Energy | 5.9 |
Financials | 13.9 |
Health Care | 14.7 |
Industrials | 7.4 |
Information Technology | 22.5 |
Materials | 3.0 |
Real Estate | 4.3 |
Utilities | 5.9 |
Total | 100.0 |
Tri-Continental Corporation | Semiannual Report 2022 | 3 |
• | it keeps investments in individual issuers within the limits permitted diversified companies under the Investment Company Act of 1940, as amended (the 1940 Act) (i.e., 75% of its total assets must be represented by cash items, government securities, securities of other investment companies, and securities of other issuers which, at the time of investment, do not exceed 5% of the Fund’s total assets at market value in the securities of any issuer and do not exceed 10% of the voting securities of any issuer); |
• | it does not make investments with a view to exercising control or management; |
• | it ordinarily does not invest in other investment companies, but it may purchase up to 3% of the voting securities of such investment companies, provided purchases of securities of a single investment company do not exceed in value 5% of the total assets of the Fund and all investments in investment company securities do not exceed 10% of total assets; and |
• | it has no fixed policy with respect to portfolio turnover and purchases and sales in the light of economic, market and investment considerations. The portfolio turnover rates for the last ten fiscal years are shown under Financial Highlights |
4 | Tri-Continental Corporation | Semiannual Report 2022 |
• | may issue senior securities such as bonds, notes or other evidences of indebtedness if immediately after issuance the net assets of the Fund provide 300% coverage of the aggregate principal amount of all bonds, notes or other evidences of indebtedness and that amount does not exceed 150% of the capital and surplus of the Fund; |
• | may issue senior equity securities on a parity with, but not having preference or priority over, the preferred stock if immediately after issuance its net assets are equal to at least 200% of the aggregate amount (exclusive of any dividends accrued or in arrears) to which all shares of the preferred stock, then outstanding, shall be entitled as a preference over the common stock in the event of voluntary or involuntary liquidation, dissolution or winding up of the Fund; |
• | may borrow money for substantially the same purposes as it may issue senior debt securities, subject to the same restrictions and to any applicable limitations prescribed by law; |
• | may engage in the business of underwriting securities either directly or through majority-owned subsidiaries subject to any applicable restrictions and limitations prescribed by law; |
• | does not intend to concentrate its assets in any one industry although it may from time to time invest up to 25% of the value of its assets, taken at market value, in a single industry*; |
• | may not, with limited exceptions, purchase and sell real estate directly but may do so through majority-owned subsidiaries, so long as its real estate investments do not exceed 10% of the value of the Fund’s total assets; |
• | may not purchase or sell commodities or commodity contracts; and |
• | may make money loans (subject to restrictions imposed by law and by charter) (a) only to its subsidiaries, (b) as incidents to its business transactions or (c) for other purposes. The Fund will not lend securities if the total of all such loans would exceed 33 1/3% of the Fund’s total assets, except this fundamental investment policy shall not prohibit the Fund from purchasing money market securities, loans, loan participation or other debt securities, or from entering into repurchase agreements, and it may make loans represented by repurchase agreements, so long as such loans do not exceed 10% of the value of total assets. |
Tri-Continental Corporation | Semiannual Report 2022 | 5 |
6 | Tri-Continental Corporation | Semiannual Report 2022 |
• | An equity future price . |
Tri-Continental Corporation | Semiannual Report 2022 | 7 |
8 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 9 |
Assumed Return on Portfolio (net of expenses) | -10% | -5% | 0% | 5% | 10% |
Corresponding Return to Common Stockholders | (10.35)% | (5.23)% | (0.12)% | 5.00% | 10.12% |
10 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 11 |
• | Information Technology Sector. The Fund is more susceptible to the particular risks that may affect companies in the information technology sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the information technology sector are subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be |
12 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 13 |
Stockholder Transaction Expenses | |
Cash Purchase Plan Fees | $2.00 (a) |
Annual Expenses (as a percentage of net asset attributable to common shares) | |
Management fees (b) | 0.42% |
Other expenses | 0.04% |
Acquired fund fees and expenses | 0.05% |
Total Annual Expenses Before Impact of Dividends on Preferred Stock (c) | 0.51% |
Impact of Dividends on Preferred Stock | 0.10% |
Total Annual Expenses, Including Impact of Dividends on Preferred Stock | 0.61% |
(a) | Stockholders participating in the Fund’s Cash Purchase Plan (the Cash Purchase Plan) pay a $2.00 fee per cash purchase transaction; there is no fee for automatic dividend re-investment transactions in the Fund’s Automatic Dividend Investment Plan (the Automatic Dividend Investment Plan). See Automatic Dividend Investment Plan and Cash Purchase Plan below for a description of the related services. |
(b) | The Fund’s management fee is 0.41% of the Fund’s average daily net assets (which includes assets attributable to the Fund’s common and preferred stock) and is borne by the holders of the Fund’s common stock (Common Stockholders). The management fee rate noted in the table reflects the rate paid by Common Stockholders as a percentage of the Fund’s net assets attributable to Common Stock. |
(c) | “Total Annual Expenses Before Impact of Dividends on Preferred Stock” include acquired fund fees and expenses (expenses the Fund incurs indirectly through its investments in other investment companies) and may be higher than “Expenses to average net assets for Common Stock” shown in the Financial Highlights |
• | you invest $1,000 in the Fund for the periods indicated, |
• | your investment has a 5% return each year, and |
• | the Fund’s total annual operating expenses remain the same as shown in the Annual Fund Operating Expenses table above (including the impact of dividends on preferred stock). |
1 year | 3 years | 5 years | 10 years | |
Tri-Continental Corporation Common Stock | $6 | $20 | $34 | $76 |
14 | Tri-Continental Corporation | Semiannual Report 2022 |
Market Price ($) | Corresponding NAV ($) | Corresponding (Discount)/Premium to NAV (%) | ||||
High | Low | High | Low | High | Low | |
2020 | ||||||
1 st Quarter | 29.05 | 17.61 | 32.04 | 21.12 | (9.33) | (16.62) |
2 nd Quarter | 26.44 | 19.85 | 30.34 | 23.24 | (12.85) | (14.59) |
3 rd Quarter | 27.31 | 24.80 | 31.69 | 28.38 | (13.82) | (12.61) |
4 th Quarter | 29.71 | 25.32 | 33.32 | 29.39 | (10.83) | (13.85) |
2021 | ||||||
1 st Quarter | 32.43 | 29.09 | 36.00 | 32.87 | (9.92) | (11.50) |
2 nd Quarter | 34.91 | 32.66 | 38.15 | 36.37 | (8.49) | (10.20) |
3 rd Quarter | 35.12 | 33.30 | 39.26 | 37.00 | (10.55) | (10.00) |
4 th Quarter | 35.68 | 31.75 | 39.82 | 35.61 | (10.40) | (10.84) |
2022 | ||||||
1 st Quarter | 33.21 | 29.13 | 36.77 | 33.75 | (9.68) | (13.69) |
2 nd Quarter | 31.36 | 25.42 | 35.57 | 29.18 | (11.84) | (12.89) |
Year | Total Shares Outstanding | Year-End Asset Coverage Per Share ($) | Involuntary Liquidation Preference Per Share ($) | Average Daily Market Value Per Share ($) |
2021 | 752,740 | 2,715 | 50 | 56.86 |
2020 | 752,740 | 2,368 | 50 | 56.23 |
2019 | 752,740 | 2,261 | 50 | 53.19 |
2018 | 752,740 | 1,951 | 50 | 50.71 |
2017 | 752,740 | 2,225 | 50 | 50.75 |
2016 | 752,740 | 2,004 | 50 | 51.61 |
2015 | 752,740 | 1,887 | 50 | 49.92 |
2014 | 752,740 | 2,058 | 50 | 46.32 |
2013 | 752,740 | 1,957 | 50 | 48.50 |
2012 | 752,740 | 1,622 | 50 | 50.02 |
Tri-Continental Corporation | Semiannual Report 2022 | 15 |
Common Stocks 72.1% | ||
Issuer | Shares | Value ($) |
Communication Services 5.7% | ||
Diversified Telecommunication Services 1.4% | ||
AT&T, Inc. | 465,000 | 9,746,400 |
Verizon Communications, Inc. | 275,834 | 13,998,575 |
Total | 23,744,975 | |
Interactive Media & Services 3.5% | ||
Alphabet, Inc., Class A (a) | 19,212 | 41,867,943 |
Meta Platforms, Inc., Class A (a) | 96,634 | 15,582,233 |
Total | 57,450,176 | |
Media 0.8% | ||
Comcast Corp., Class A | 100,000 | 3,924,000 |
Interpublic Group of Companies, Inc. (The) | 317,992 | 8,754,320 |
Total | 12,678,320 | |
Total Communication Services | 93,873,471 | |
Consumer Discretionary 6.4% | ||
Automobiles 0.3% | ||
Tesla Motors, Inc. (a) | 7,111 | 4,788,690 |
Hotels, Restaurants & Leisure 0.8% | ||
Darden Restaurants, Inc. | 49,593 | 5,609,960 |
Expedia Group, Inc. (a) | 84,629 | 8,025,368 |
Total | 13,635,328 | |
Household Durables 1.1% | ||
Lennar Corp., Class A | 102,106 | 7,205,620 |
Newell Brands, Inc. | 235,000 | 4,474,400 |
PulteGroup, Inc. | 160,598 | 6,364,499 |
Total | 18,044,519 | |
Internet & Direct Marketing Retail 0.8% | ||
Amazon.com, Inc. (a) | 121,540 | 12,908,763 |
Specialty Retail 2.6% | ||
American Eagle Outfitters, Inc. | 285,000 | 3,186,300 |
AutoZone, Inc. (a) | 6,006 | 12,907,615 |
Best Buy Co., Inc. | 50,000 | 3,259,500 |
Home Depot, Inc. (The) | 32,500 | 8,913,775 |
O’Reilly Automotive, Inc. (a) | 19,615 | 12,391,972 |
Ulta Beauty, Inc. (a) | 6,300 | 2,428,524 |
Total | 43,087,686 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Textiles, Apparel & Luxury Goods 0.8% | ||
Ralph Lauren Corp. | 89,522 | 8,025,647 |
Tapestry, Inc. | 68,834 | 2,100,814 |
Under Armour, Inc., Class A (a) | 471,611 | 3,928,520 |
Total | 14,054,981 | |
Total Consumer Discretionary | 106,519,967 | |
Consumer Staples 4.9% | ||
Food & Staples Retailing 0.6% | ||
Kroger Co. (The) | 115,849 | 5,483,133 |
Walgreens Boots Alliance, Inc. | 115,000 | 4,358,500 |
Total | 9,841,633 | |
Food Products 1.7% | ||
Bunge Ltd. | 45,000 | 4,081,050 |
JM Smucker Co. (The) | 35,000 | 4,480,350 |
Kraft Heinz Co. (The) | 200,000 | 7,628,000 |
Tyson Foods, Inc., Class A | 151,130 | 13,006,248 |
Total | 29,195,648 | |
Household Products 1.0% | ||
Procter & Gamble Co. (The) | 111,378 | 16,015,042 |
Tobacco 1.6% | ||
Altria Group, Inc. | 263,880 | 11,022,268 |
Philip Morris International, Inc. | 156,738 | 15,476,310 |
Total | 26,498,578 | |
Total Consumer Staples | 81,550,901 | |
Energy 4.5% | ||
Oil, Gas & Consumable Fuels 4.5% | ||
Chesapeake Energy Corp. | 4,503 | 365,217 |
Chevron Corp. | 55,000 | 7,962,900 |
ConocoPhillips Co. | 33,228 | 2,984,206 |
Devon Energy Corp. | 99,300 | 5,472,423 |
Enviva, Inc. | 100,000 | 5,722,000 |
Exxon Mobil Corp. | 371,623 | 31,825,794 |
Marathon Petroleum Corp. | 89,747 | 7,378,101 |
16 | Tri-Continental Corporation | Semiannual Report 2022 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Pioneer Natural Resources Co. | 41,500 | 9,257,820 |
Valero Energy Corp. | 35,000 | 3,719,800 |
Total | 74,688,261 | |
Total Energy | 74,688,261 | |
Financials 10.5% | ||
Banks 2.9% | ||
JPMorgan Chase & Co. | 75,000 | 8,445,750 |
M&T Bank Corp. | 55,000 | 8,766,450 |
PNC Financial Services Group, Inc. (The) | 55,000 | 8,677,350 |
Truist Financial Corp. | 150,000 | 7,114,500 |
Wells Fargo & Co. | 397,983 | 15,588,994 |
Total | 48,593,044 | |
Capital Markets 3.0% | ||
Ares Capital Corp. | 500,000 | 8,965,000 |
Bank of New York Mellon Corp. (The) | 74,130 | 3,091,963 |
BlackRock, Inc. | 7,000 | 4,263,280 |
Blackstone Secured Lending Fund | 190,000 | 4,491,600 |
Blackstone, Inc. | 45,000 | 4,105,350 |
Morgan Stanley | 319,621 | 24,310,373 |
Total | 49,227,566 | |
Consumer Finance 1.2% | ||
Capital One Financial Corp. | 105,451 | 10,986,939 |
Discover Financial Services | 55,079 | 5,209,372 |
OneMain Holdings, Inc. | 100,000 | 3,738,000 |
Total | 19,934,311 | |
Diversified Financial Services 0.1% | ||
Voya Financial, Inc. | 25,743 | 1,532,481 |
Insurance 2.4% | ||
Allstate Corp. (The) | 28,609 | 3,625,619 |
Aon PLC, Class A | 7,044 | 1,899,626 |
Marsh & McLennan Companies, Inc. | 92,174 | 14,310,013 |
MetLife, Inc. | 327,403 | 20,557,634 |
Total | 40,392,892 | |
Mortgage Real Estate Investment Trusts (REITS) 0.9% | ||
Blackstone Mortgage Trust, Inc. | 235,000 | 6,502,450 |
Starwood Property Trust, Inc. | 410,000 | 8,564,900 |
Total | 15,067,350 | |
Total Financials | 174,747,644 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Health Care 10.2% | ||
Biotechnology 1.7% | ||
AbbVie, Inc. | 110,435 | 16,914,225 |
Amgen, Inc. | 3,213 | 781,723 |
BioMarin Pharmaceutical, Inc. (a) | 28,090 | 2,327,818 |
Regeneron Pharmaceuticals, Inc. (a) | 5,076 | 3,000,576 |
Vertex Pharmaceuticals, Inc. (a) | 20,805 | 5,862,641 |
Total | 28,886,983 | |
Health Care Equipment & Supplies 0.8% | ||
Abbott Laboratories | 116,851 | 12,695,861 |
Health Care Providers & Services 1.9% | ||
CVS Health Corp. | 106,488 | 9,867,178 |
McKesson Corp. | 40,465 | 13,200,087 |
Molina Healthcare, Inc. (a) | 26,865 | 7,511,723 |
Total | 30,578,988 | |
Life Sciences Tools & Services 0.9% | ||
IQVIA Holdings, Inc. (a) | 70,020 | 15,193,640 |
Pharmaceuticals 4.9% | ||
Amryt Pharma PLC, ADR (a) | 65,000 | 454,350 |
Bristol-Myers Squibb Co. | 353,111 | 27,189,547 |
Johnson & Johnson | 40,000 | 7,100,400 |
Merck & Co., Inc. | 95,000 | 8,661,150 |
Organon & Co. | 137,500 | 4,640,625 |
Pfizer, Inc. | 608,215 | 31,888,712 |
Viatris, Inc. | 127,899 | 1,339,103 |
Total | 81,273,887 | |
Total Health Care | 168,629,359 | |
Industrials 5.2% | ||
Aerospace & Defense 2.2% | ||
General Dynamics Corp. | 63,936 | 14,145,840 |
Lockheed Martin Corp. | 23,109 | 9,935,946 |
Raytheon Technologies Corp. | 72,500 | 6,967,975 |
Textron, Inc. | 82,998 | 5,068,688 |
Total | 36,118,449 | |
Air Freight & Logistics 1.0% | ||
United Parcel Service, Inc., Class B | 86,904 | 15,863,456 |
Tri-Continental Corporation | Semiannual Report 2022 | 17 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Airlines 0.1% | ||
Delta Air Lines, Inc. (a) | 22,541 | 653,013 |
Southwest Airlines Co. (a) | 20,843 | 752,849 |
Total | 1,405,862 | |
Commercial Services & Supplies 0.4% | ||
Cintas Corp. | 15,911 | 5,943,236 |
Republic Services, Inc. | 11,954 | 1,564,420 |
Total | 7,507,656 | |
Electrical Equipment 0.5% | ||
Emerson Electric Co. | 106,430 | 8,465,442 |
Machinery 0.7% | ||
AGCO Corp. | 40,000 | 3,948,000 |
Otis Worldwide Corp. | 65,377 | 4,620,193 |
Snap-On, Inc. | 17,173 | 3,383,596 |
Total | 11,951,789 | |
Professional Services 0.1% | ||
Robert Half International, Inc. | 30,563 | 2,288,863 |
Road & Rail 0.2% | ||
Norfolk Southern Corp. | 12,331 | 2,802,713 |
Total Industrials | 86,404,230 | |
Information Technology 16.9% | ||
Communications Equipment 1.7% | ||
Cisco Systems, Inc. | 553,591 | 23,605,120 |
Juniper Networks, Inc. | 160,000 | 4,560,000 |
Total | 28,165,120 | |
Electronic Equipment, Instruments & Components 0.5% | ||
Corning, Inc. | 275,000 | 8,665,250 |
IT Services 1.6% | ||
Accenture PLC, Class A | 14,092 | 3,912,644 |
Gartner, Inc. (a) | 13,500 | 3,264,705 |
International Business Machines Corp. | 67,500 | 9,530,325 |
MasterCard, Inc., Class A | 18,254 | 5,758,772 |
VeriSign, Inc. (a) | 27,242 | 4,558,404 |
Total | 27,024,850 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Semiconductors & Semiconductor Equipment 3.8% | ||
Advanced Micro Devices, Inc. (a) | 148,495 | 11,355,413 |
Broadcom, Inc. | 22,500 | 10,930,725 |
Lam Research Corp. | 29,255 | 12,467,018 |
QUALCOMM, Inc. | 142,920 | 18,256,601 |
Texas Instruments, Inc. | 60,000 | 9,219,000 |
Total | 62,228,757 | |
Software 5.2% | ||
Adobe, Inc. (a) | 35,116 | 12,854,563 |
Autodesk, Inc. (a) | 21,203 | 3,646,068 |
Fortinet, Inc. (a) | 256,280 | 14,500,322 |
Microsoft Corp. | 212,012 | 54,451,042 |
Total | 85,451,995 | |
Technology Hardware, Storage & Peripherals 4.1% | ||
Apple, Inc. (b) | 395,126 | 54,021,627 |
HP, Inc. | 250,000 | 8,195,000 |
Seagate Technology Holdings PLC | 90,000 | 6,429,600 |
Total | 68,646,227 | |
Total Information Technology | 280,182,199 | |
Materials 2.3% | ||
Chemicals 1.6% | ||
Dow, Inc. | 393,412 | 20,303,993 |
Nutrien Ltd. | 80,000 | 6,375,200 |
Total | 26,679,193 | |
Metals & Mining 0.7% | ||
Newmont Corp. | 70,000 | 4,176,900 |
Nucor Corp. | 67,838 | 7,082,966 |
Total | 11,259,866 | |
Total Materials | 37,939,059 | |
Real Estate 3.4% | ||
Equity Real Estate Investment Trusts (REITS) 3.4% | ||
Crown Castle International Corp. | 27,500 | 4,630,450 |
Life Storage, Inc. | 35,000 | 3,908,100 |
Medical Properties Trust, Inc. | 450,000 | 6,871,500 |
SBA Communications Corp. | 27,711 | 8,868,905 |
Simon Property Group, Inc. | 64,528 | 6,124,998 |
VICI Properties, Inc. | 225,000 | 6,702,750 |
18 | Tri-Continental Corporation | Semiannual Report 2022 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Welltower, Inc. | 55,000 | 4,529,250 |
Weyerhaeuser Co. | 421,831 | 13,971,043 |
Total | 55,606,996 | |
Total Real Estate | 55,606,996 | |
Utilities 2.1% | ||
Electric Utilities 2.1% | ||
American Electric Power Co., Inc. | 77,933 | 7,476,892 |
Duke Energy Corp. | 45,000 | 4,824,450 |
Entergy Corp. | 40,000 | 4,505,600 |
Evergy, Inc. | 98,372 | 6,418,773 |
FirstEnergy Corp. | 125,000 | 4,798,750 |
NRG Energy, Inc. | 170,835 | 6,520,772 |
Total | 34,545,237 | |
Total Utilities | 34,545,237 | |
Total Common Stocks (Cost $1,036,804,134) | 1,194,687,324 |
Convertible Bonds 5.5% | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Airlines 0.2% | ||||
American Airlines Group, Inc. | ||||
07/01/2025 | 6.500% | 3,700,000 | 3,887,518 | |
Automotive 0.2% | ||||
Arrival SA (c) | ||||
12/01/2026 | 3.500% | 8,000,000 | 3,162,983 | |
Cable and Satellite 0.2% | ||||
DISH Network Corp. | ||||
Subordinated | ||||
08/15/2026 | 3.375% | 5,500,000 | 3,715,250 | |
Diversified Manufacturing 0.3% | ||||
Greenbrier Companies, Inc. (The) | ||||
04/15/2028 | 2.875% | 4,800,000 | 4,464,000 | |
Health Care 0.2% | ||||
Invacare Corp. | ||||
11/15/2024 | 5.000% | 4,000,000 | 3,429,200 | |
Independent Energy 0.0% | ||||
Chesapeake Energy Escrow | ||||
09/15/2026 | 0.000% | 9,000,000 | 163,080 |
Convertible Bonds (continued) | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Leisure 0.5% | ||||
NCL Corp Ltd. | ||||
08/01/2025 | 5.375% | 3,500,000 | 3,364,550 | |
Royal Caribbean Cruises Ltd. | ||||
06/15/2023 | 4.250% | 4,200,000 | 4,011,000 | |
Total | 7,375,550 | |||
Media and Entertainment 0.1% | ||||
fuboTV, Inc. | ||||
02/15/2026 | 3.250% | 6,000,000 | 1,842,000 | |
Other Financial Institutions 0.4% | ||||
RWT Holdings, Inc. | ||||
10/01/2025 | 5.750% | 6,750,000 | 5,969,531 | |
Other REIT 0.6% | ||||
PennyMac Corp. | ||||
03/15/2026 | 5.500% | 11,000,000 | 9,584,300 | |
Redwood Trust, Inc. (c) | ||||
06/15/2027 | 7.750% | 1,000,000 | 876,000 | |
Total | 10,460,300 | |||
Pharmaceuticals 2.2% | ||||
Aegerion Pharmaceuticals, Inc. (c) | ||||
04/01/2025 | 5.000% | 1,687,570 | 1,710,859 | |
Aerie Pharmaceuticals, Inc. | ||||
10/01/2024 | 1.500% | 6,000,000 | 5,059,975 | |
BridgeBio Pharma, Inc. | ||||
02/01/2029 | 2.250% | 10,000,000 | 4,087,000 | |
Clovis Oncology, Inc. | ||||
05/01/2025 | 1.250% | 9,300,000 | 6,510,000 | |
Insmed, Inc. | ||||
01/15/2025 | 1.750% | 5,200,000 | 4,833,400 | |
Intercept Pharmaceuticals, Inc. (c) | ||||
02/15/2026 | 3.500% | 4,000,000 | 3,785,000 | |
Radius Health, Inc. | ||||
09/01/2024 | 3.000% | 5,700,000 | 5,568,188 | |
Tilray, Inc. | ||||
10/01/2023 | 5.000% | 5,250,000 | 4,776,319 | |
Total | 36,330,741 | |||
Technology 0.6% | ||||
1Life Healthcare, Inc. | ||||
06/15/2025 | 3.000% | 5,500,000 | 4,512,750 |
Tri-Continental Corporation | Semiannual Report 2022 | 19 |
Convertible Bonds (continued) | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
2U, Inc. | ||||
05/01/2025 | 2.250% | 6,500,000 | 5,508,750 | |
Total | 10,021,500 | |||
Total Convertible Bonds (Cost $109,413,565) | 90,821,653 |
Convertible Preferred Stocks 5.2% | |||
Issuer | Shares | Value ($) | |
Consumer Discretionary 0.3% | |||
Auto Components 0.3% | |||
Aptiv PLC | 5.500% | 42,500 | 4,473,125 |
Total Consumer Discretionary | 4,473,125 | ||
Financials 0.2% | |||
Capital Markets 0.2% | |||
AMG Capital Trust II | 5.150% | 80,000 | 3,821,600 |
Total Financials | 3,821,600 | ||
Health Care 1.2% | |||
Health Care Equipment & Supplies 0.8% | |||
Becton Dickinson and Co. | 6.000% | 140,000 | 6,959,400 |
Boston Scientific Corp. | 5.500% | 67,500 | 6,853,950 |
Total | 13,813,350 | ||
Life Sciences Tools & Services 0.4% | |||
Danaher Corp. | 5.000% | 5,000 | 6,677,500 |
Total Health Care | 20,490,850 | ||
Industrials 0.5% | |||
Construction & Engineering 0.2% | |||
Fluor Corp. | 6.500% | 3,500 | 4,278,022 |
Professional Services 0.3% | |||
Clarivate PLC | 5.250% | 80,000 | 4,577,128 |
Total Industrials | 8,855,150 | ||
Information Technology 0.5% | |||
Electronic Equipment, Instruments & Components 0.4% | |||
II-VI, Inc. | 6.000% | 28,500 | 6,132,060 |
IT Services 0.1% | |||
Sabre Corp. | 6.500% | 27,000 | 2,159,190 |
Total Information Technology | 8,291,250 |
Convertible Preferred Stocks (continued) | |||
Issuer | Shares | Value ($) | |
Utilities 2.5% | |||
Electric Utilities 0.3% | |||
NextEra Energy, Inc. | 6.219% | 100,000 | 4,913,000 |
Gas Utilities 0.8% | |||
South Jersey Industries, Inc. | 8.750% | 12,500 | 848,624 |
Spire, Inc. | 7.500% | 135,000 | 7,085,795 |
UGI Corp. | 7.250% | 50,000 | 4,555,000 |
Total | 12,489,419 | ||
Multi-Utilities 1.4% | |||
DTE Energy Co. | 6.250% | 275,000 | 14,137,750 |
NiSource, Inc. | 7.750% | 80,000 | 9,097,600 |
Total | 23,235,350 | ||
Total Utilities | 40,637,769 | ||
Total Convertible Preferred Stocks (Cost $90,206,360) | 86,569,744 |
Corporate Bonds & Notes 15.5% | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Aerospace & Defense 1.1% | ||||
Bombardier, Inc. (c) | ||||
06/15/2026 | 7.125% | 10,000,000 | 8,158,396 | |
Rolls-Royce PLC (c) | ||||
10/15/2027 | 5.750% | 5,167,000 | 4,681,334 | |
Spirit AeroSystems, Inc. (c) | ||||
04/15/2025 | 7.500% | 5,000,000 | 4,672,451 | |
Total | 17,512,181 | |||
Cable and Satellite 0.6% | ||||
DISH DBS Corp. (c) | ||||
12/01/2028 | 5.750% | 10,300,000 | 7,623,350 | |
Telesat Canada/LLC (c) | ||||
10/15/2027 | 6.500% | 5,286,000 | 2,266,111 | |
Total | 9,889,461 | |||
Chemicals 0.5% | ||||
Innophos Holdings, Inc. (c) | ||||
02/15/2028 | 9.375% | 4,300,000 | 3,918,069 | |
Olympus Water US Holding Corp. (c) | ||||
10/01/2029 | 6.250% | 5,500,000 | 3,826,381 | |
Total | 7,744,450 | |||
Construction Machinery 0.2% | ||||
PECF USS Intermediate Holding III Corp. (c) | ||||
11/15/2029 | 8.000% | 5,150,000 | 4,081,892 |
20 | Tri-Continental Corporation | Semiannual Report 2022 |
Corporate Bonds & Notes (continued) | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Consumer Cyclical Services 0.5% | ||||
Staples, Inc. (c) | ||||
04/15/2026 | 7.500% | 5,000,000 | 4,146,221 | |
Uber Technologies, Inc. (c) | ||||
09/15/2027 | 7.500% | 2,100,000 | 2,034,407 | |
01/15/2028 | 6.250% | 2,365,000 | 2,186,510 | |
Total | 8,367,138 | |||
Consumer Products 0.4% | ||||
Mattel, Inc. | ||||
10/01/2040 | 6.200% | 1,430,000 | 1,376,659 | |
11/01/2041 | 5.450% | 745,000 | 657,784 | |
SWF Escrow Issuer Corp. (c) | ||||
10/01/2029 | 6.500% | 7,500,000 | 5,238,474 | |
Total | 7,272,917 | |||
Finance Companies 0.4% | ||||
Curo Group Holdings Corp. (c) | ||||
08/01/2028 | 7.500% | 5,500,000 | 3,449,007 | |
Fortress Transportation and Infrastructure Investors LLC (c) | ||||
08/01/2027 | 9.750% | 2,760,000 | 2,731,849 | |
Total | 6,180,856 | |||
Food and Beverage 0.5% | ||||
Triton Water Holdings, Inc. (c) | ||||
04/01/2029 | 6.250% | 5,942,000 | 4,223,115 | |
United Natural Foods, Inc. (c) | ||||
10/15/2028 | 6.750% | 4,680,000 | 4,382,315 | |
Total | 8,605,430 | |||
Gaming 0.6% | ||||
Colt Merger Sub, Inc. (c) | ||||
07/01/2027 | 8.125% | 4,106,000 | 3,959,237 | |
Scientific Games Holdings LP/US FinCo, Inc. (c) | ||||
03/01/2030 | 6.625% | 7,500,000 | 6,378,517 | |
Total | 10,337,754 | |||
Health Care 0.5% | ||||
Quotient Ltd. (c),(d),(e) | ||||
10/15/2025 | 12.000% | 1,989,167 | 1,989,167 | |
10/15/2025 | 12.000% | 852,500 | 852,500 | |
Tenet Healthcare Corp. (c) | ||||
10/01/2028 | 6.125% | 5,979,000 | 5,144,889 | |
Total | 7,986,556 | |||
Independent Energy 1.5% | ||||
Hilcorp Energy I LP/Finance Co. (c) | ||||
04/15/2030 | 6.000% | 10,000,000 | 8,804,790 |
Corporate Bonds & Notes (continued) | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Oasis Petroleum, Inc. (c) | ||||
06/01/2026 | 6.375% | 2,500,000 | 2,313,231 | |
Occidental Petroleum Corp. | ||||
07/15/2044 | 4.500% | 3,200,000 | 2,540,874 | |
04/15/2046 | 4.400% | 6,400,000 | 5,184,063 | |
Southwestern Energy Co. | ||||
02/01/2029 | 5.375% | 7,463,000 | 6,934,203 | |
Total | 25,777,161 | |||
Leisure 1.0% | ||||
Carnival Corp. (c) | ||||
05/01/2029 | 6.000% | 10,000,000 | 7,001,846 | |
06/01/2030 | 10.500% | 1,000,000 | 824,702 | |
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Operations LLC | ||||
10/01/2028 | 6.500% | 4,900,000 | 4,670,247 | |
NCL Corp., Ltd. (c) | ||||
02/15/2029 | 7.750% | 5,000,000 | 3,803,769 | |
Total | 16,300,564 | |||
Media and Entertainment 1.5% | ||||
Clear Channel Outdoor Holdings, Inc. (c) | ||||
04/15/2028 | 7.750% | 10,500,000 | 7,640,211 | |
Deluxe Corp. (c) | ||||
06/01/2029 | 8.000% | 4,800,000 | 3,932,133 | |
Lions Gate Capital Holdings LLC (c) | ||||
04/15/2029 | 5.500% | 11,000,000 | 8,582,182 | |
Mav Acquisition Corp. (c) | ||||
08/01/2029 | 8.000% | 5,500,000 | 4,456,463 | |
Total | 24,610,989 | |||
Metals and Mining 0.3% | ||||
CONSOL Energy, Inc. (c) | ||||
11/15/2025 | 11.000% | 4,900,000 | 4,984,330 | |
Midstream 0.2% | ||||
Rockpoint Gas Storage Canada Ltd. (c) | ||||
03/31/2023 | 7.000% | 4,216,000 | 4,164,051 | |
Oil Field Services 0.3% | ||||
Nabors Industries Ltd. (c) | ||||
01/15/2026 | 7.250% | 3,447,000 | 3,059,492 | |
01/15/2028 | 7.500% | 1,754,000 | 1,511,574 | |
Total | 4,571,066 | |||
Other Financial Institutions 0.3% | ||||
WeWork Companies, Inc. (c) | ||||
05/01/2025 | 7.875% | 6,000,000 | 4,427,827 |
Tri-Continental Corporation | Semiannual Report 2022 | 21 |
Corporate Bonds & Notes (continued) | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Packaging 0.8% | ||||
ARD Finance SA (c),(f) | ||||
06/30/2027 | 6.500% | 5,832,350 | 4,332,733 | |
BWAY Holding Co. (c) | ||||
04/15/2025 | 7.250% | 10,500,000 | 9,185,852 | |
Total | 13,518,585 | |||
Paper 0.3% | ||||
Sylvamo Corp. (c) | ||||
09/01/2029 | 7.000% | 5,200,000 | 4,829,960 | |
Pharmaceuticals 0.5% | ||||
Bausch Health Companies, Inc. (c) | ||||
01/30/2028 | 5.000% | 2,428,000 | 1,293,697 | |
01/30/2030 | 5.250% | 8,528,000 | 4,440,033 | |
Organon Finance 1 LLC (c) | ||||
04/30/2031 | 5.125% | 2,936,000 | 2,533,913 | |
Total | 8,267,643 | |||
Restaurants 0.5% | ||||
Fertitta Entertainment LLC/Finance Co., Inc. (c) | ||||
01/15/2030 | 6.750% | 11,000,000 | 8,450,171 | |
Retailers 0.7% | ||||
Academy Ltd. (c) | ||||
11/15/2027 | 6.000% | 4,667,000 | 4,262,495 | |
L Brands, Inc. (c) | ||||
10/01/2030 | 6.625% | 5,000,000 | 4,318,725 | |
Magic MergeCo, Inc. (c) | ||||
05/01/2029 | 7.875% | 5,000,000 | 3,310,788 | |
Total | 11,892,008 | |||
Supermarkets 0.3% | ||||
Safeway, Inc. | ||||
02/01/2031 | 7.250% | 4,512,000 | 4,423,314 | |
Technology 1.8% | ||||
Avaya, Inc. (c) | ||||
09/15/2028 | 6.125% | 5,509,000 | 3,593,892 | |
Consensus Cloud Solutions, Inc. (c) | ||||
10/15/2026 | 6.000% | 5,000,000 | 4,330,794 | |
Diebold Nixdorf, Inc. (c) | ||||
07/15/2025 | 9.375% | 2,300,000 | 1,608,606 | |
Diebold, Inc. | ||||
04/15/2024 | 8.500% | 7,600,000 | 4,028,026 | |
Minerva Merger Sub, Inc. (c) | ||||
02/15/2030 | 6.500% | 8,000,000 | 6,675,347 | |
Rocket Software, Inc. (c) | ||||
02/15/2029 | 6.500% | 8,875,000 | 6,477,294 |
Corporate Bonds & Notes (continued) | ||||
Issuer | Coupon Rate | Principal Amount ($) | Value ($) | |
Sabre GLBL, Inc. (c) | ||||
04/15/2025 | 9.250% | 1,800,000 | 1,738,054 | |
09/01/2025 | 7.375% | 923,000 | 856,334 | |
Total | 29,308,347 | |||
Wirelines 0.2% | ||||
Front Range BidCo, Inc. (c) | ||||
03/01/2028 | 6.125% | 4,500,000 | 3,260,586 | |
Total Corporate Bonds & Notes (Cost $320,420,362) | 256,765,237 |
Preferred Debt 0.3% | ||||
Issuer | Coupon Rate | Shares | Value ($) | |
Banking 0.3% | ||||
Citigroup Capital XIII (g) | ||||
10/30/2040 | 7.609% | 185,000 | 4,958,000 | |
Total Preferred Debt (Cost $4,888,966) | 4,958,000 |
Warrants 0.0% | ||
Issuer | Shares | Value ($) |
Energy 0.0% | ||
Oil, Gas & Consumable Fuels 0.0% | ||
Chesapeake Energy Corp. (a) | 8,497 | 445,851 |
Total Energy | 445,851 | |
Health Care 0.0% | ||
Health Care Equipment & Supplies 0.0% | ||
Quotient Ltd. (a) | 39,425 | 9,462 |
Total Health Care | 9,462 | |
Total Warrants (Cost $116,803) | 455,313 | |
Money Market Funds 0.8% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 1.247% (h),(i) | 12,276,597 | 12,269,231 |
Total Money Market Funds (Cost $12,269,744) | 12,269,231 | |
Total Investments in Securities (Cost: $1,574,119,934) | 1,646,526,502 | |
Other Assets & Liabilities, Net | 9,792,446 | |
Net Assets | 1,656,318,948 |
22 | Tri-Continental Corporation | Semiannual Report 2022 |
Long futures contracts | ||||||
Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
S&P 500 Index E-mini | 46 | 09/2022 | USD | 8,715,850 | — | (443,435) |
(a) | Non-income producing investment. |
(b) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
(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, 2022, the total value of these securities amounted to $236,484,909, which represents 14.28% of total net assets. |
(d) | Represents fair value as determined in good faith under procedures approved by the Board of Directors. At June 30, 2022, the total value of these securities amounted to $2,841,667, which represents 0.17% of total net assets. |
(e) | Valuation based on significant unobservable inputs. |
(f) | Payment-in-kind security. Interest can be paid by issuing additional par of the security or in cash. |
(g) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of June 30, 2022. |
(h) | The rate shown is the seven-day current annualized yield at June 30, 2022. |
(i) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2022 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 1.247% | ||||||||
25,091,482 | 167,546,848 | (180,368,312) | (787) | 12,269,231 | (11,551) | 41,574 | 12,276,597 |
ADR | American Depositary Receipt |
USD | US Dollar |
■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Tri-Continental Corporation | Semiannual Report 2022 | 23 |
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Communication Services | 93,873,471 | — | — | 93,873,471 |
Consumer Discretionary | 106,519,967 | — | — | 106,519,967 |
Consumer Staples | 81,550,901 | — | — | 81,550,901 |
Energy | 74,688,261 | — | — | 74,688,261 |
Financials | 174,747,644 | — | — | 174,747,644 |
Health Care | 168,629,359 | — | — | 168,629,359 |
Industrials | 86,404,230 | — | — | 86,404,230 |
Information Technology | 280,182,199 | — | — | 280,182,199 |
Materials | 37,939,059 | — | — | 37,939,059 |
Real Estate | 55,606,996 | — | — | 55,606,996 |
Utilities | 34,545,237 | — | — | 34,545,237 |
Total Common Stocks | 1,194,687,324 | — | — | 1,194,687,324 |
Convertible Bonds | — | 90,821,653 | — | 90,821,653 |
Convertible Preferred Stocks | ||||
Consumer Discretionary | — | 4,473,125 | — | 4,473,125 |
Financials | — | 3,821,600 | — | 3,821,600 |
Health Care | — | 20,490,850 | — | 20,490,850 |
Industrials | — | 8,855,150 | — | 8,855,150 |
Information Technology | — | 8,291,250 | — | 8,291,250 |
Utilities | — | 40,637,769 | — | 40,637,769 |
Total Convertible Preferred Stocks | — | 86,569,744 | — | 86,569,744 |
Corporate Bonds & Notes | — | 253,923,570 | 2,841,667 | 256,765,237 |
Preferred Debt | 4,958,000 | — | — | 4,958,000 |
Warrants | ||||
Energy | 445,851 | — | — | 445,851 |
Health Care | — | 9,462 | — | 9,462 |
Total Warrants | 445,851 | 9,462 | — | 455,313 |
Money Market Funds | 12,269,231 | — | — | 12,269,231 |
Total Investments in Securities | 1,212,360,406 | 431,324,429 | 2,841,667 | 1,646,526,502 |
Investments in Derivatives |
24 | Tri-Continental Corporation | Semiannual Report 2022 |
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Liability | ||||
Futures Contracts | (443,435) | — | — | (443,435) |
Total | 1,211,916,971 | 431,324,429 | 2,841,667 | 1,646,083,067 |
Tri-Continental Corporation | Semiannual Report 2022 | 25 |
Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $1,561,850,190) | $1,634,257,271 |
Affiliated issuers (cost $12,269,744) | 12,269,231 |
Receivable for: | |
Investments sold | 23,126,713 |
Capital shares sold | 296 |
Dividends | 2,186,681 |
Interest | 6,949,825 |
Foreign tax reclaims | 24,390 |
Prepaid expenses | 1 |
Other assets | 85,921 |
Total assets | 1,678,900,329 |
Liabilities | |
Payable for: | |
Investments purchased | 21,156,181 |
Common Stock payable | 535,373 |
Preferred Stock dividends | 470,463 |
Variation margin for futures contracts | 73,025 |
Management services fees | 18,734 |
Stockholder servicing and transfer agent fees | 7,879 |
Compensation of board members | 284,520 |
Compensation of chief compliance officer | 189 |
Other expenses | 35,017 |
Total liabilities | 22,581,381 |
Net assets | $1,656,318,948 |
Preferred Stock | 37,637,000 |
Net assets for Common Stock | 1,618,681,948 |
Represented by | |
$2.50 Cumulative Preferred Stock, $50 par value, asset coverage per share $2,200 | |
Shares issued and outstanding — 752,740 | 37,637,000 |
Common Stock, $0.50 par value: | |
Shares issued and outstanding — 54,350,935 | 27,175,468 |
Capital surplus | 1,468,262,179 |
Total distributable earnings (loss) | 123,244,301 |
Net assets | $1,656,318,948 |
Net asset value per share of outstanding Common Stock | $29.78 |
Market price per share of Common Stock | $26.17 |
26 | Tri-Continental Corporation | Semiannual Report 2022 |
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $22,233,915 |
Dividends — affiliated issuers | 41,574 |
Interest | 13,508,298 |
Foreign taxes withheld | (12,960) |
Total income | 35,770,827 |
Expenses: | |
Management services fees | 3,825,811 |
Stockholder servicing and transfer agent fees | 192,781 |
Compensation of board members | 12,156 |
Custodian fees | 9,681 |
Printing and postage fees | 31,346 |
Stockholders’ meeting fees | 29,491 |
Audit fees | 24,614 |
Legal fees | 7,499 |
Interest on collateral | 99 |
Compensation of chief compliance officer | 125 |
Other | 105,458 |
Total expenses | 4,239,061 |
Net investment income (a) | 31,531,766 |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 61,357,742 |
Investments — affiliated issuers | (11,551) |
Foreign currency translations | (24) |
Futures contracts | (1,851,398) |
Net realized gain | 59,494,769 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (407,099,611) |
Investments — affiliated issuers | (787) |
Futures contracts | (789,641) |
Net change in unrealized appreciation (depreciation) | (407,890,039) |
Net realized and unrealized loss | (348,395,270) |
Net decrease in net assets resulting from operations | $(316,863,504) |
(a) | Net investment income for Common Stock is $30,590,841, which is net of Preferred Stock dividends of $940,925. |
Tri-Continental Corporation | Semiannual Report 2022 | 27 |
Six Months Ended June 30, 2022 (Unaudited) | Year Ended December 31, 2021 | |
Operations | ||
Net investment income | $31,531,766 | $55,648,905 |
Net realized gain | 59,494,769 | 202,034,431 |
Net change in unrealized appreciation (depreciation) | (407,890,039) | 178,019,119 |
Net increase (decrease) in net assets resulting from operations | (316,863,504) | 435,702,455 |
Distributions to stockholders | ||
Net investment income and net realized gains | ||
Preferred Stock | (940,925) | (1,881,850) |
Common Stock | (58,081,926) | (242,263,151) |
Total distributions to stockholders | (59,022,851) | (244,145,001) |
Increase (decrease) in net assets from capital stock activity | (11,288,953) | 69,164,972 |
Total increase (decrease) in net assets | (387,175,308) | 260,722,426 |
Net assets at beginning of period | 2,043,494,256 | 1,782,771,830 |
Net assets at end of period | $1,656,318,948 | $2,043,494,256 |
Six Months Ended | Year Ended | |||
June 30, 2022 (Unaudited) | December 31, 2021 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Common Stock issued at market price in distributions | 896,711 | 24,958,824 | 3,832,800 | 123,569,819 |
Common Stock issued to cash purchase plan participants | 29,881 | 896,384 | 56,165 | 1,857,233 |
Common Stock purchased from cash purchase plan participants | (269,961) | (8,093,803) | (520,321) | (17,292,805) |
Common Stock purchased in the open market | (970,870) | (29,050,358) | (1,175,623) | (38,969,275) |
Total net increase (decrease) | (314,239) | (11,288,953) | 2,193,021 | 69,164,972 |
28 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 29 |
Six Months Ended June 30, 2022 (Unaudited) | Year ended December 31, | |||
2021 | 2020 | 2019 | ||
Per share data | ||||
Net asset value, beginning of period | $36.69 | $33.26 | $31.03 | $26.58 |
Income from investment operations: | ||||
Net investment income | 0.58 | 1.07 | 1.05 | 1.03 |
Net realized and unrealized gain (loss) | (6.44) | 7.28 | 2.86 | 5.39 |
Total from investment operations | (5.86) | 8.35 | 3.91 | 6.42 |
Less distributions to Stockholders from: | ||||
Net investment income — Preferred Stock | (0.02) | (0.04) | (0.04) | (0.04) |
Net investment income — Common Stock | (0.55) | (1.05) | (1.07) | (1.01) |
Net realized gains — Common Stock | (0.53) | (3.64) | (0.57) | (0.92) |
Total distributions to Stockholders | (1.10) | (4.73) | (1.68) | (1.97) |
Dilution in net asset value from share purchases (via dividend reinvestment program and cash purchase plan) (a) | (0.05) | (0.32) | — | — |
Anti-dilution in net asset value from share buy-backs (via stock repurchase program and cash purchase plan) (a) | 0.10 | 0.13 | — | — |
Net asset value, end of period | $29.78 | $36.69 | $33.26 | $31.03 |
Adjusted net asset value, end of period (b) | $29.68 | $36.57 | $33.14 | $30.92 |
Market price, end of period | $26.17 | $33.19 | $29.47 | $28.20 |
Total return | ||||
Based upon net asset value | (15.68%) | 26.76% | 14.17% | 25.20% |
Based upon market price | (18.09%) | 29.41% | 11.31% | 28.59% |
Ratios to average net assets | ||||
Expenses to average net assets for Common Stock (c) | 0.46% (d),(e) | 0.46% (e) | 0.48% | 0.49% |
Net investment income to average net assets for Common Stock | 3.34% (d) | 2.77% | 3.45% | 3.32% |
Supplemental data | ||||
Net assets, end of period (000’s): | ||||
Common Stock | $1,618,682 | $2,005,857 | $1,745,135 | $1,664,401 |
Preferred Stock | $37,637 | $37,637 | $37,637 | $37,637 |
Total net assets | $1,656,319 | $2,043,494 | $1,782,772 | $1,702,038 |
Portfolio turnover | 24% | 56% | 67% | 60% |
Notes to Financial Highlights | |
(a) | Prior to the period ended June 30, 2022, per share amounts were only presented if the net dilution/anti-dilution impact was material relative to the Fund’s average net assets for Common Stock. |
(b) | Assumes the exercise of outstanding warrants. |
(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) | Ratios include interest on collateral expense which is less than 0.01%. |
30 | Tri-Continental Corporation | Semiannual Report 2022 |
Year ended December 31, | ||||||
2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
$29.88 | $25.91 | $23.49 | $24.76 | $23.11 | $18.77 | $16.77 |
0.99 | 0.93 | 0.90 | 0.81 | 0.73 | 0.69 | 0.63 |
(2.35) | 4.24 | 2.33 | (1.37) | 1.70 | 4.36 | 2.00 |
(1.36) | 5.17 | 3.23 | (0.56) | 2.43 | 5.05 | 2.63 |
(0.03) | (0.03) | (0.03) | (0.03) | (0.03) | (0.03) | (0.03) |
(0.96) | (1.07) | (0.91) | (0.81) | (0.75) | (0.68) | (0.60) |
(0.95) | (0.10) | — | — | — | — | — |
(1.94) | (1.20) | (0.94) | (0.84) | (0.78) | (0.71) | (0.63) |
— | — | (0.06) | (0.05) | — | — | — |
— | — | 0.19 | 0.18 | — | — | — |
$26.58 | $29.88 | $25.91 | $23.49 | $24.76 | $23.11 | $18.77 |
$26.48 | $29.77 | $25.83 | $23.42 | $24.68 | $23.04 | $18.71 |
$23.52 | $26.94 | $22.05 | $20.02 | $21.41 | $19.98 | $16.00 |
(4.10%) | 20.82% | 15.25% | (1.36%) | 11.09% | 27.76% | 16.24% |
(5.88%) | 28.00% | 15.08% | (2.78%) | 11.11% | 29.58% | 16.77% |
0.49% | 0.49% | 0.50% | 0.50% | 0.49% | 0.50% | 0.52% |
3.14% | 3.21% | 3.59% | 3.16% | 2.91% | 3.12% | 3.28% |
$1,431,211 | $1,637,553 | $1,470,843 | $1,382,712 | $1,511,285 | $1,435,734 | $1,183,285 |
$37,637 | $37,637 | $37,637 | $37,637 | $37,637 | $37,637 | $37,637 |
$1,468,848 | $1,675,190 | $1,508,480 | $1,420,349 | $1,548,922 | $1,473,371 | $1,220,922 |
63% | 95% | 82% | 76% | 76% | 62% | 68% |
Tri-Continental Corporation | Semiannual Report 2022 | 31 |
32 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 33 |
34 | Tri-Continental Corporation | Semiannual Report 2022 |
Liability derivatives | ||
Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
Equity risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 443,435* |
* | 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 ($) |
Equity risk | (1,851,398) |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
Risk exposure category | Futures contracts ($) |
Equity risk | (789,641) |
Derivative instrument | Average notional amounts ($)* |
Futures contracts — long | 8,435,600 |
* | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2022. |
Tri-Continental Corporation | Semiannual Report 2022 | 35 |
36 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 37 |
Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
1,574,120,000 | 236,108,000 | (164,145,000) | 71,963,000 |
38 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 39 |
40 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 41 |
42 | Tri-Continental Corporation | Semiannual Report 2022 |
• | Information on the investment performance of the Fund relative to the performance of a group of funds determined to be comparable to the Fund by Broadridge, as well as performance relative to benchmarks; |
• | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable funds, as determined by Broadridge; |
• | Terms of the Management Agreement; |
• | Descriptions of an agreement with an affiliate of the Investment Manager relating to the provision of stockholder services to the Fund; |
• | Descriptions of various services performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
• | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
• | Information regarding the resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
• | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services; |
• | The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and |
• | Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL). |
Tri-Continental Corporation | Semiannual Report 2022 | 43 |
44 | Tri-Continental Corporation | Semiannual Report 2022 |
Tri-Continental Corporation | Semiannual Report 2022 | 45 |
Director | For | Withheld |
Daniel J. Beckman | 33,721,837 | 1,222,470 |
Douglas A. Hacker | 33,621,217 | 1,323,090 |
Minor M. Shaw | 33,688,388 | 1,256,444 |
Sandra L. Yeager | 33,706,630 | 1,238,297 |
For | Against | Abstain |
33,906,725 | 841,076 | 242,750 |
46 | Tri-Continental Corporation | Semiannual Report 2022 |
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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 for semiannual reports.
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 for semiannual reports.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable for semiannual reports.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Publicly Announced Plans or Programs(1) | Maximum Number of Plans or Programs(1) | ||||||||
01-01-22 to 01-31-22 | 222,361 | $ | 31.65 | 222,361 | 2,510,931 | |||||||
02-01-22 to 02-28-22 | 203,725 | 31.10 | 203,725 | 2,307,207 | ||||||||
03-01-22 to 03-31-22 | 166,825 | 30.61 | 166,825 | 2,140,382 |
04-01-22 to 04-30-22 | 227,337 | 30.52 | 227,337 | 1,913,045 | ||||
05-01-22 to 05-31-22 | 229,476 | 28.63 | 229,476 | 1,683,569 | ||||
06-01-22 to 06-30-22 | 181,224 | 27.04 | 181,224 | 1,502,346 |
(1) | The registrant has a stock repurchase program approved by the Board of Directors that authorizes the Fund to repurchase up to 5% of its outstanding Common Stock directly from stockholders and in the open market, provided that, with respect to shares repurchased in the open market the excess of the net asset value of a share of Common Stock over its market price (the discount) is greater than 10%. The table reflects trade date + 1, rather than trade date, which is used for financial statement purposes; therefore, shares reflected may vary from capital stock activity presented in the shareholder report. |
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) | Tri-Continental Corporation |
By (Signature and Title) | /s/ Daniel J. Beckman | |||
Daniel J. Beckman, President and Principal Executive Officer |
Date | August 22, 2022 |
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, President and Principal Executive Officer |
Date | August 22, 2022 |
By (Signature and Title) | /s/ Michael G. Clarke | |||
Michael G. Clarke, Chief Financial Officer, Principal Financial Officer and Senior Vice President |
Date | August 22, 2022 |
By (Signature and Title) | /s/ Joseph Beranek | |||
Joseph Beranek, Treasurer, Chief Accounting Officer and Principal | ||||
Financial Officer |
Date | August 22, 2022 |