N-Q 1 a16-8758_1nq.htm N-Q

 

 

 

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SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-22328

 

Columbia Seligman Premium Technology Growth Fund, Inc.

(Exact name of registrant as specified in charter)

 

225 Franklin Street, Boston, Massachusetts

 

02110

(Address of principal executive offices)

 

(Zip code)

 

Scott R. Plummer

5228 Ameriprise Financial Center

Minneapolis, MN 55474

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(800) 345-6611

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

March 31, 2016

 

 



 

Item 1. Schedule of Investments.

 



 

Portfolio of Investments

Columbia Seligman Premium Technology Growth Fund

March 31, 2016 (Unaudited)

(Percentages represent value of investments compared to net assets)


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks 99.0%

 

 

 

 

 

CONSUMER DISCRETIONARY 2.0%

 

 

 

 

 

Diversified Consumer Services 1.7%

 

 

 

 

 

LifeLock, Inc. (a)

 

375,300

 

$

4,529,871

 

Media 0.3%

 

 

 

 

 

Viacom, Inc., Class B

 

19,200

 

792,576

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

5,322,447

 

HEALTH CARE 0.7%

 

 

 

 

 

Health Care Technology 0.7%

 

 

 

 

 

Veeva Systems Inc., Class A (a)

 

80,000

 

2,003,200

 

TOTAL HEALTH CARE

 

 

 

2,003,200

 

INFORMATION TECHNOLOGY 96.2%

 

 

 

 

 

Communications Equipment 5.8%

 

 

 

 

 

Arista Networks, Inc. (a)(b)

 

59,169

 

3,733,564

 

Arris International PLC (a)

 

30,400

 

696,768

 

Cisco Systems, Inc. (b)

 

193,300

 

5,503,251

 

F5 Networks, Inc. (a)

 

34,600

 

3,662,410

 

Palo Alto Networks, Inc. (a)

 

11,200

 

1,827,168

 

Total

 

 

 

15,423,161

 

Internet Software & Services 7.1%

 

 

 

 

 

Alphabet, Inc., Class A (a)

 

8,300

 

6,332,070

 

Alphabet, Inc., Class C (a)(b)

 

10,024

 

7,467,379

 

eBay, Inc. (a)

 

40,500

 

966,330

 

Facebook, Inc., Class A (a)

 

30,500

 

3,480,050

 

Q2 Holdings, Inc. (a)

 

18,621

 

447,649

 

Total

 

 

 

18,693,478

 

IT Services 6.5%

 

 

 

 

 

CSRA, Inc.

 

62,500

 

1,681,250

 

Euronet Worldwide, Inc. (a)

 

18,165

 

1,346,208

 

Fidelity National Information Services, Inc.

 

34,900

 

2,209,519

 

Travelport Worldwide Ltd.

 

276,912

 

3,782,618

 

Visa, Inc., Class A

 

104,800

 

8,015,104

 

Total

 

 

 

17,034,699

 

Semiconductors & Semiconductor Equipment 48.7%

 

 

 

Advanced Energy Industries, Inc. (a)

 

130,173

 

4,528,719

 

Broadcom Ltd. (b)

 

119,900

 

18,524,550

 

Cavium, Inc. (a)

 

53,400

 

3,265,944

 

Cypress Semiconductor Corp.

 

179,700

 

1,556,202

 

Integrated Device Technology, Inc. (a)

 

41,100

 

840,084

 

Lam Research Corp. (b)

 

299,100

 

24,705,660

 

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

 

 

 

 

INFORMATION TECHNOLOGY (CONTINUED)

 

 

 

Semiconductors & Semiconductor Equipment (continued)

 

Lattice Semiconductor Corp. (a)

 

719,016

 

$

4,084,011

 

Mattson Technology, Inc. (a)

 

487,194

 

1,778,258

 

Maxim Integrated Products, Inc.

 

257,200

 

9,459,816

 

Microsemi Corp. (a)(b)

 

165,281

 

6,331,915

 

NXP Semiconductors NV (a)

 

40,220

 

3,260,635

 

ON Semiconductor Corp. (a)

 

349,000

 

3,346,910

 

Qorvo, Inc. (a)(b)

 

219,510

 

11,065,499

 

Skyworks Solutions, Inc.

 

101,356

 

7,895,633

 

Synaptics, Inc. (a)(b)

 

170,341

 

13,582,991

 

Teradyne, Inc. (b)

 

679,938

 

14,679,862

 

Total

 

 

 

128,906,689

 

Software 19.4%

 

 

 

 

 

Activision Blizzard, Inc.

 

53,900

 

1,823,976

 

AVG Technologies NV (a)

 

129,400

 

2,685,050

 

Check Point Software Technologies Ltd. (a)(b)

 

54,500

 

4,767,115

 

CommVault Systems, Inc. (a)

 

6,100

 

263,337

 

CyberArk Software Ltd. (a)

 

8,500

 

362,355

 

Fortinet, Inc. (a)

 

92,400

 

2,830,212

 

Nuance Communications, Inc. (a)

 

239,816

 

4,482,161

 

Oracle Corp.

 

33,200

 

1,358,212

 

PTC, Inc. (a)

 

18,500

 

613,460

 

Rovi Corp. (a)

 

357,300

 

7,328,223

 

Salesforce.com, Inc. (a)

 

34,800

 

2,569,284

 

ServiceNow, Inc. (a)

 

7,800

 

477,204

 

Splunk, Inc. (a)

 

16,200

 

792,666

 

Synopsys, Inc. (a)(b)

 

406,453

 

19,688,583

 

Verint Systems, Inc. (a)

 

39,900

 

1,331,862

 

Total

 

 

 

51,373,700

 

Technology Hardware, Storage & Peripherals 8.7%

 

Apple, Inc. (b)

 

112,500

 

12,261,375

 

CPI Card Group, Inc.

 

165,664

 

1,365,071

 

Electronics for Imaging, Inc. (a)

 

83,204

 

3,527,018

 

EMC Corp.

 

41,200

 

1,097,980

 

Hewlett Packard Enterprise Co.

 

106,700

 

1,891,791

 

Western Digital Corp.

 

59,000

 

2,787,160

 

Total

 

 

 

22,930,395

 

TOTAL INFORMATION TECHNOLOGY

 

 

 

254,362,122

 

TELECOMMUNICATION SERVICES 0.1%

 

 

 

Diversified Telecommunication Services 0.1%

 

 

 

Ooma, Inc. (a)

 

32,287

 

190,493

 

TOTAL TELECOMMUNICATION SERVICES

 

190,493

 

Total Common Stocks

(Cost: $215,353,256)

 

 

 

$

261,878,262

 


 



 

 

 

 

Shares

 

Value

 

 

 

 

 

 

 

Money Market Funds 0.9%

 

 

 

 

 

Columbia Short-Term Cash Fund, 0.420% (c)(d)

 

2,365,258

 

$

2,365,258

 

Total Money Market Funds

(Cost: $2,365,258)

 

 

 

$

2,365,258

 

 

Total Investments

 

 

 

 

 

(Cost: $217,718,514) (e)

 

 

 

$

264,243,520(f)

 

Other Assets & Liabilities, Net

 

 

 

274,999

 

Net Assets

 

 

 

$

264,518,519

 


 

At March 31, 2016, securities totaling $136,495,685 were pledged as collateral.

 

Open Options Contracts Written at March 31, 2016

 

 

 

Issuer

 

Puts/Calls

 

Number of
Contracts

 

Exercise
Price ($)

 

Premium
Received ($)

 

Expiration
Date

 

Value ($)

 

NASDAQ 100 Stock Index

 

Call

 

285

 

4,550.00

 

(483,161

)

04/2016

 

(507,300

)

 

Notes to Portfolio of Investments

 

(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)

The rate shown is the seven-day current annualized yield at March 31, 2016.

(d)

As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended March 31, 2016 are as follows:

 

Issuer

 

Beginning
Cost ($)

 

Purchase
Cost ($)

 

Proceeds From
Sales ($)

 

Ending
Cost ($)

 

Dividends —
Affiliated Issuers ($)

 

Value ($)

 

Columbia Short-Term Cash Fund

 

7,598,373

 

27,102,902

 

(32,336,017

)

2,365,258

 

5,565

 

2,365,258

 

 

(e)

At March 31, 2016, the cost of securities for federal income tax purposes was approximately $217,719,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:

 

Unrealized Appreciation

 

$

53,233,000

 

Unrealized Depreciation

 

(6,708,000

)

Net Unrealized Appreciation

 

$

46,525,000

 

 

(f)

Investments are valued using policies described in the Notes to Financial Statements in the most recent shareholder report.

 

Fair Value Measurements

 

 

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.  Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

 

Fair value inputs are summarized in the three broad levels listed below:

 

·              Level 1 - Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds).  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).

 

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.

 


 

Certain investments that have been measured at fair value using the net asset value per share (or its equivalent) are not categorized in the fair value hierarchy.  The fair value amounts presented in the table are intended to reconcile the fair value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Short-Term Cash Fund seeks to provide shareholders with maximum current income consistent with liquidity and stability of principal.  Investments in Columbia Short-Term Cash Fund may be redeemed on a daily basis without restriction.

 

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments.  However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices.  Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager.  Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund’s Board of Directors (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.

 

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies).  The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors.  The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions.  The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

 

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions.  The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value.  This data is also used to corroborate, when available, information received from approved pricing vendors and brokers.  Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

 

The following table is a summary of the inputs used to value the Fund’s investments at March 31, 2016:

 

 

 

Level 1
Quoted Prices in
Active Markets for
Identical Assets ($)

 

Level 2
Other Significant
Observable
Inputs ($)

 

Level 3
Significant
Unobservable
Inputs ($)

 

Total ($)

 

Investments

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

5,322,447

 

 

 

5,322,447

 

Health Care

 

2,003,200

 

 

 

2,003,200

 

Information Technology

 

254,362,122

 

 

 

254,362,122

 

Telecommunication Services

 

190,493

 

 

 

190,493

 

Total Common Stocks

 

261,878,262

 

 

 

261,878,262

 

Investments measured at NAV per share practical expedient

 

 

 

 

 

 

 

 

 

Money Market Funds

 

 

 

 

2,365,258

 

Total Investments

 

261,878,262

 

 

 

264,243,520

 

Derivatives

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Options Contracts Written

 

(507,300

)

 

 

(507,300

)

Total

 

261,370,962

 

 

 

263,736,220

 

 

See the Portfolio of Investments for all investment classifications not indicated in the table.

 

There were no transfers of financial assets between levels during the period.

 


 

Item  2. 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-Q is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

(b)         There was no change in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.

 



 

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)

Columbia Seligman Premium Technology Growth Fund, Inc.

 

 

 

 

By (Signature and Title)

               /s/ Christopher O. Petersen

 

 

Christopher O. Petersen, President and Principal Executive Officer

 

 

 

 

Date

                                              May 20, 2016

 

 

 

 

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/ Christopher O. Petersen

 

 

Christopher O. Petersen, President and Principal Executive Officer

 

 

 

 

Date

                                              May 20, 2016

 

 

 

 

By (Signature and Title)

               /s/ Michael G. Clarke

 

 

               Michael G. Clarke, Treasurer and Chief Financial Officer

 

 

 

 

Date

                                              May 20, 2016