UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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)
Christopher O. Petersen, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, Massachusetts 02110
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
(Name and address of agent for service)
Registrants telephone number, including area code: (800) 345-6611
Date of fiscal year end: December 31
Date of reporting period: June 30, 2018
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, 450 Fifth Street, NW, Washington, DC 20549-0609. 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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Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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4 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
When the VXN Index (a) is: | Aggregate
Notional Amount of Written Call Options as a Percentage of the Fund’s Holdings in Common Stocks |
17 or less | 25% |
Greater than 17, but less than 18 | Increase up to 50% |
At least 18, but less than 33 | 50% |
At least 33, but less than 34 | Increase up to 90% |
At least 34, but less than 55 | 90% |
At 55 or greater | 0% to 90% |
(a) | The VXN Index is a leading barometer of investor sentiment and market volatility relating to the NASDAQ 100 Index. |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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6 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Call option contracts written | ||||||||
Description | Counterparty | Trading
currency |
Notional
amount |
Number
of contracts |
Exercise
price/Rate |
Expiration
date |
Premium
received ($) |
Value ($) |
Micron Technology, Inc. | Deutsche Bank | USD | (2,349,312) | (448) | 80.00 | 01/2019 | (226,973) | (52,416) |
(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 June 30, 2018. |
(d) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended June 30, 2018 are as follows: |
Issuer | Beginning
shares |
Shares
purchased |
Shares
sold |
Ending
shares |
Realized
gain (loss) — affiliated issuers ($) |
Net
change in unrealized appreciation (depreciation) — affiliated issuers ($) |
Dividends
— affiliated issuers ($) |
Value
— affiliated issuers at end of period ($) |
Columbia Short-Term Cash Fund, 1.985% | ||||||||
4,032,237 | 53,894,912 | (45,652,199) | 12,274,950 | (808) | 40 | 35,933 | 12,274,950 |
ADR | American Depositary Receipt |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
7 |
■ | 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). |
Level
1 quoted prices in active markets for identical assets ($) |
Level
2 other significant observable inputs ($) |
Level
3 significant unobservable inputs ($) |
Investments
measured at net asset value ($) |
Total ($) | |
Investments in Securities | |||||
Common Stocks | |||||
Consumer Discretionary | 623,200 | — | — | — | 623,200 |
Information Technology | 315,108,526 | — | — | — | 315,108,526 |
Telecommunication Services | 836,958 | — | — | — | 836,958 |
Total Common Stocks | 316,568,684 | — | — | — | 316,568,684 |
Money Market Funds | — | — | — | 12,274,950 | 12,274,950 |
Total Investments in Securities | 316,568,684 | — | — | 12,274,950 | 328,843,634 |
8 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Level
1 quoted prices in active markets for identical assets ($) |
Level
2 other significant observable inputs ($) |
Level
3 significant unobservable inputs ($) |
Investments
measured at net asset value ($) |
Total ($) | |
Investments in Derivatives | |||||
Liability | |||||
Options Contracts Written | (52,416) | — | — | — | (52,416) |
Total | 316,516,268 | — | — | 12,274,950 | 328,791,218 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $216,074,023) | $316,568,684 |
Affiliated issuers (cost $12,274,762) | 12,274,950 |
Receivable for: | |
Investments sold | 416,166 |
Dividends | 172,228 |
Total assets | 329,432,028 |
Liabilities | |
Option contracts written, at value (premiums received $226,973) | 52,416 |
Payable for: | |
Investments purchased | 884,008 |
Management services fees | 287,468 |
Stockholder servicing and transfer agent fees | 690 |
Compensation of board members | 79,051 |
Compensation of chief compliance officer | 36 |
Other expenses | 6,437 |
Total liabilities | 1,310,106 |
Net assets applicable to outstanding Common Stock | $328,121,922 |
Represented by | |
Paid in capital | 213,035,331 |
Excess of distributions over net investment income | (375,191) |
Accumulated net realized gain | 14,792,376 |
Unrealized appreciation (depreciation) on: | |
Investments - unaffiliated issuers | 100,494,661 |
Investments - affiliated issuers | 188 |
Options contracts written | 174,557 |
Total - representing net assets applicable to outstanding Common Stock | $328,121,922 |
Shares outstanding applicable to Common Stock | 15,628,501 |
Net asset value per share of outstanding Common Stock | $21.00 |
Market price per share of Common Stock | $21.54 |
10 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $1,585,811 |
Dividends — affiliated issuers | 35,933 |
Total income | 1,621,744 |
Expenses: | |
Management services fees | 1,784,803 |
Stockholder servicing and transfer agent fees | 7,159 |
Compensation of board members | 19,070 |
Custodian fees | 4,985 |
Printing and postage fees | 25,329 |
Stockholders’ meeting fees | 15,476 |
Audit fees | 17,994 |
Legal fees | 5,675 |
Compensation of chief compliance officer | 34 |
Other | 49,267 |
Total expenses | 1,929,792 |
Net investment loss | (308,048) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 22,062,511 |
Investments — affiliated issuers | (808) |
Foreign currency translations | (123) |
Options contracts written | (2,766,217) |
Net realized gain | 19,295,363 |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (2,182,630) |
Investments — affiliated issuers | 40 |
Options contracts written | 174,557 |
Net change in unrealized appreciation (depreciation) | (2,008,033) |
Net realized and unrealized gain | 17,287,330 |
Net increase in net assets resulting from operations | $16,979,282 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
11 |
Six
Months Ended June 30, 2018 (Unaudited) |
Year
Ended December 31, 2017 | |
Operations | ||
Net investment loss | $(308,048) | $(895,557) |
Net realized gain | 19,295,363 | 35,073,234 |
Net change in unrealized appreciation (depreciation) | (2,008,033) | 53,130,827 |
Net increase in net assets resulting from operations | 16,979,282 | 87,308,504 |
Distributions to stockholders | ||
Net realized gains | (14,448,542) | (40,457,871) |
Total distributions to stockholders | (14,448,542) | (40,457,871) |
Increase in net assets from capital stock activity | 5,119,294 | 395,646 |
Total increase in net assets | 7,650,034 | 47,246,279 |
Net assets at beginning of period | 320,471,888 | 273,225,609 |
Net assets at end of period | $328,121,922 | $320,471,888 |
Excess of distributions over net investment income | $(375,191) | $(67,143) |
Six Months Ended | Year Ended | |||
June 30, 2018 (Unaudited) | December 31, 2017 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Distributions reinvested | 240,244 | 5,119,294 | 19,127 | 395,646 |
Total net increase | 240,244 | 5,119,294 | 19,127 | 395,646 |
12 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Six
Months Ended June 30, 2018 (Unaudited) |
Year ended December 31, | |||||
2017 | 2016 | 2015 | 2014 | 2013 | ||
Per share data | ||||||
Net asset value, beginning of period | $20.83 | $17.78 | $17.29 | $17.69 | $16.18 | $15.36 |
Income from investment operations: | ||||||
Net investment loss | (0.02) | (0.06) | (0.05) | (0.04) | (0.07) | (0.07) |
Net realized and unrealized gain | 1.12 | 5.74 | 2.39 | 1.49 | 3.43 | 2.74 |
Total from investment operations | 1.10 | 5.68 | 2.34 | 1.45 | 3.36 | 2.67 |
Less distributions to Stockholders from: | ||||||
Net realized gains | (0.93) | (2.63) | (1.85) | (1.85) | (1.85) | (0.42) |
Tax return of capital | — | — | — | — | — | (1.43) |
Total distributions to Stockholders | (0.93) | (2.63) | (1.85) | (1.85) | (1.85) | (1.85) |
Net asset value, end of period | $21.00 | $20.83 | $17.78 | $17.29 | $17.69 | $16.18 |
Market price, end of period | $21.54 | $22.25 | $18.74 | $17.93 | $18.93 | $14.39 |
Total return | ||||||
Based upon net asset value | 5.25% | 32.72% | 15.29% | 8.40% | 22.32% | 19.02% |
Based upon market price | 1.07% | 34.51% | 17.18% | 5.05% | 47.17% | 12.05% |
Ratios to average net assets | ||||||
Total gross expenses(a) | 1.15% (b) | 1.16% | 1.17% | 1.17% | 1.17% | 1.17% |
Net investment loss | (0.18%) (b) | (0.28%) | (0.33%) | (0.24%) | (0.41%) | (0.46%) |
Supplemental data | ||||||
Net assets, end of period (in thousands) | $328,122 | $320,472 | $273,226 | $265,426 | $271,300 | $247,700 |
Portfolio turnover | 14% | 47% | 61% | 61% | 60% | 57% |
Notes to Financial Highlights | |
(a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
(b) | Annualized. |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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14 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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16 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Liability derivatives | ||
Risk
exposure category |
Statement
of assets and liabilities location |
Fair value ($) |
Equity risk | Options contracts written, at value | 52,416 |
Amount of realized gain (loss) on derivatives recognized in income | |
Risk exposure category | Options
contracts written ($) |
Equity risk | (2,766,217) |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
Risk exposure category | Options
contracts written ($) |
Equity risk | 174,557 |
Derivative instrument | Average
value ($) |
Options contracts — written | (578,410)* |
* | Based on the ending quarterly outstanding amounts for the six months ended June 30, 2018. |
Deutsche
Bank ($) | |
Liabilities | |
Options contracts written | 52,416 |
Total liabilities | 52,416 |
Total financial and derivative net assets | (52,416) |
Total collateral received (pledged) (a) | (52,416) |
Net amount (b) | - |
(a) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
(b) | Represents the net amount due from/(to) counterparties in the event of default. |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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18 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
19 |
Federal
tax cost ($) |
Gross
unrealized appreciation ($) |
Gross
unrealized (depreciation) ($) |
Net
unrealized appreciation ($) |
228,122,000 | 109,497,000 | (8,828,000) | 100,669,000 |
20 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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22 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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24 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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26 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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28 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
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Director | For | Withheld |
George S. Batejan | 13,761,918 | 210,378 |
Kathleen Blatz | 13,739,280 | 233,016 |
Edward J. Boudreau, Jr. | 13,774,107 | 198,189 |
Pamela G. Carlton | 13,751,935 | 220,361 |
For | Against | Abstain |
13,733,906 | 112,490 | 125,902 |
30 | Columbia Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
Columbia
Seligman Premium Technology Growth Fund | Semiannual Report 2018 |
31 |
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 registrants 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.
The Fund has a share repurchase plan approved by the Funds Board of Directors, which authorizes repurchases of the Funds common stock in the open market at times when shares are trading at a discount from NAV and in an amount approximately sufficient to offset the growth in the number of common shares attributable to the reinvestment of the portion of its distributions to common stockholders attributable to distributions received from portfolio investments less Fund expenses. The Fund has not repurchased shares during the period.
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 registrants board of directors.
Item 11. Controls and Procedures.
(a) | The registrants principal executive officer and principal financial officers, based on their evaluation of the registrants 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 material information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrants 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 registrants internal control over financial reporting that occurred during the registrants second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants 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.
(a)(2) 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.
(a)(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
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 | August 20, 2018 |
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 | August 20, 2018 |
By (Signature and Title) | /s/ Michael G. Clarke | |||
Michael G. Clarke, Treasurer and Chief Financial Officer | ||||
Date | August 20, 2018 |
I, Christopher O. Petersen, certify that:
1. | I have reviewed this report on Form N-CSR of Columbia Seligman Premium Technology Growth Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrants 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 registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 20, 2018 | /s/ Christopher O. Petersen | |||||
Christopher O. Petersen, President and Principal Executive Officer |
I, Michael G. Clarke, certify that:
1. | I have reviewed this report on Form N-CSR of Columbia Seligman Premium Technology Growth Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrants 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 registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 20, 2018 | /s/ Michael G. Clarke | |||||
Michael G. Clarke, Treasurer and Chief Financial Officer |
CERTIFICATION PURSUANT TO SECTION 906 OF
THE SARBANES-OXLEY ACT OF 2002
In connection with the Certified Shareholder Report of Columbia Seligman Premium Technology Growth Fund, Inc. (the Trust) on Form N-CSR for the period ending June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), the undersigned hereby certifies that, to his knowledge:
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust. |
Date: August 20, 2018 | /s/ Christopher O. Petersen | |||||
Christopher O. Petersen, President and Principal Executive Officer | ||||||
Date: August 20, 2018 | /s/ Michael G. Clarke | |||||
Michael G. Clarke, Treasurer and Chief Financial Officer |
A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission (the Commission) or its staff upon request.
This certification is being furnished to the Commission solely pursuant to 18 U.S.C. §1350 and is not being filed as part of the Form N-CSR with the Commission.
Dear Stockholder,
On February 27, 2018 (the Payment Date), pursuant to its managed distribution policy, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the Fund) paid a distribution in the amount of $0.4625 per share of common stock to stockholders of record on February 20, 2018, which is equal to a quarterly rate of 2.3125% (9.25% annualized) of the $20.00 offering price in the Funds initial public offering in November 2009. The first-quarter distribution of $0.4625 per share is equal to a quarterly rate of 2.0638% (8.26% annualized) of the Funds market price of $22.41 per share as of January 31, 2018.
Prior to the managed distribution policy, the Fund paid distributions pursuant to a level rate distribution policy. Under its former distribution policy and consistent with the Investment Company Act of 1940, as amended, the Fund could not distribute long-term capital gains, as defined in the Internal Revenue Code of 1986, more often than once in any one taxable year.
In October 2010, the Fund received exemptive relief from the Securities and Exchange Commission that permits the Fund to distribute long-term capital gains more often than once in any one taxable year. After consideration by the Funds Board, the Fund adopted the current managed distribution policy which allows the Fund to make periodic distributions of long-term capital gains.
The following table sets forth the estimated breakdown of the distribution noted above, on a per share basis, from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital or other capital source.
Breakdown of Distribution |
||||||||
Sources |
% | US Dollar | ||||||
Net Investment Income |
0.00 | % | $ | 0.0000 | ||||
Net Realized Short-Term Capital Gains |
13.62 | % | $ | 0.0630 | ||||
Net Realized Long-Term Capital Gains |
86.38 | % | $ | 0.3995 | ||||
Return of Capital or other Capital Source |
0.00 | % | $ | 0.0000 | ||||
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|
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Total |
100.00 | % | $ | 0.4625 | ||||
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The following table sets forth the estimated breakdown, on a per share basis, of all distributions made by the Fund during the year-to-date period ended on the Payment Date (includes the dividend payment noted in the table above) from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital or other capital source.
Breakdown of All Distributions Paid Through Year-To-Date Period Ended on the Payment Date |
||||||||
Sources |
% | US Dollar | ||||||
Net Investment Income |
0.00 | % | $ | 0.0000 | ||||
Net Realized Short-Term Capital Gains |
13.62 | % | $ | 0.0630 | ||||
Net Realized Long-Term Capital Gains |
86.38 | % | $ | 0.3995 | ||||
Return of Capital or other Capital Source |
0.00 | % | $ | 0.0000 | ||||
|
|
|
|
|||||
Total |
100.00 | % | $ | 0.4625 | ||||
|
|
|
|
Historically, the Fund has distributed more than its income and net realized capital gains, which has resulted in Fund distributions substantially consisting of return of capital or other capital source. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. As of the payment date of the current distribution, all Fund distributions paid in 2018 (as estimated by the Fund based on current information) are from the earnings and profits of the Fund and not a return of capital. This could change during the remainder of the year, as further described below.
The amounts, sources and percentage breakdown of the distributions reported in this Notice are only estimates and are not being provided for, and should not be used for, tax reporting purposes. The actual amounts, sources and percentage breakdown of the distribution for tax reporting purposes, which may include return of capital, will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
The following table sets forth (i) the average annual total return of a share of the Funds common stock at net asset value (NAV) for the period since inception of Fund investment operations through the period noted and (ii) the Funds annualized distribution rate, for the same period, expressed as a percentage of the NAV price of a share of the Funds common stock at January 31, 2018. Average annual total return of a share of the Funds common stock at NAV for the period since inception of Fund investment operations through the period noted includes the 4.50% sales load assessed to IPO investors.
Average Annual Total NAV Return for the Period Since Inception of Investment Operations (November 30, 2009) Through January 31, 2018 |
13.40 | % | ||
Annualized Distribution Rate as a Percentage of January 31, 2018 NAV Price (For the Period Since Inception of Investment Operations (November 30, 2009) through January 31, 2018) |
8.60 | % |
The following table sets forth (i) the cumulative total return (at NAV) of a share of the Funds common stock for the year-to-date period ended January 31, 2018 and (ii) the Funds distribution rate, for the same period, expressed as a percentage of the NAV price of a share of the Funds common stock at January 31, 2018.
Cumulative Total NAV Return for the Year-to-Date Period Ended January 31, 2018 |
5.43 | % | ||
Distribution Rate as a Percentage of January 31, 2018 NAV Price (For the Year-to-Date Period Ended January 31, 2018) |
|
N/A no distributions made during this period |
|
Past performance does not guarantee future results.
You should not draw any conclusions about the Funds investment performance from the amount of the distributions noted in the tables above or from the terms of the Funds distribution policy.
The Fund or your financial professional will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions on your US federal income tax return. For tax purposes, the Fund is required to report unrealized gains or losses on certain non-US investments as ordinary income or loss, respectively. Accordingly, the amount of the Funds total distributions that will be taxable as ordinary income may be different than the amount of the distributions from net investment income reported above.
The Board may change the Funds distribution policy and the amount or timing of the distributions, based on a number of factors, including, but not limited to, the amount of the Funds undistributed net investment income and net short- and long-term capital gains and historical and projected net investment income and net short- and long-term capital gains.
Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. You can obtain the Funds most recent periodic reports and other regulatory filings by contacting your financial advisor or visiting www.columbiathreadneedle.com. These reports and other filings can also be found on the Securities and Exchange Commissions EDGAR Database. You should read these reports and other filings carefully before investing.
The Fund expects to receive all or some of its current income and gains from the following sources: (i) dividends received by the Fund that are paid on the equity and equity-related securities in its portfolio; and (ii) capital gains (short-term and long-term) from option premiums and the sale of portfolio securities. It is possible that the Funds distributions will at times exceed the earnings and profits of the Fund and therefore all or a portion of such distributions may constitute a return of capital. A return of capital is a return of your original investment. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Distributions that qualify as a return of capital are a return of some or all of your original investment in the Fund. A return of capital reduces a stockholders tax basis in his or her shares. Once the tax basis in your shares has been reduced to zero, any further return of capital may be taxable as capital gain. Shareholders should consult their tax advisor or tax attorney for proper treatment.
Distributions may be variable, and the Funds distribution rate will depend on a number of factors, including the net earnings on the Funds portfolio investments and the rate at which such net earnings change as a result of changes in the timing of, and rates at which, the Fund receives income from the sources noted above.
Investment products are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
The Fund should only be considered as one element of a complete investment program. An investment in the Fund should be considered speculative. The Funds investment policy of investing in technology and technology-related companies and writing call options involves a high degree of risk.
There is no assurance that the Fund will meet its investment objectives or that distributions will be made. You could lose some or all of your investment. In addition, closed-end funds frequently trade at a discount to their net asset values, which may increase your risk of loss.
The market prices of technology and technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. These stocks may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. These stocks also may be affected adversely by changes in technology, consumer and business purchasing patterns, government regulation and/or obsolete products or services. Technology and technology-related companies are often smaller and less experienced companies and may be subject to greater risks than larger companies, such as limited product lines, markets and financial and managerial resources. These risks may be heightened for technology companies in foreign markets.
The Columbia Seligman Premium Technology Growth Fund is managed by Columbia Management Investment Advisers, LLC. This material is distributed by Columbia Management Investment Distributors, Inc., member FINRA.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.
All rights reserved. Columbia Management Investment Distributors, Inc., 225 Franklin Street, Boston, MA 02110-2804
© 2018 Columbia Management Investment Advisers, LLC
columbiathreadneedle.com/us
AdTrax 2021858
Dear Stockholder,
On May 22, 2018 (the Payment Date), pursuant to its managed distribution policy, Columbia Seligman Premium Technology Growth Fund, Inc. (NYSE: STK) (the Fund) paid a distribution in the amount of $0.4625 per share of common stock to stockholders of record on May 14, 2018, which is equal to a quarterly rate of 2.3125% (9.25% annualized) of the $20.00 offering price in the Funds initial public offering in November 2009. The second-quarter distribution of $0.4625 per share is equal to a quarterly rate of 2.1826% (8.73% annualized) of the Funds market price of $21.19 per share as of April 30, 2018.
Prior to the managed distribution policy, the Fund paid distributions pursuant to a level rate distribution policy. Under its former distribution policy and consistent with the Investment Company Act of 1940, as amended, the Fund could not distribute long-term capital gains, as defined in the Internal Revenue Code of 1986, more often than once in any one taxable year.
In October 2010, the Fund received exemptive relief from the Securities and Exchange Commission that permits the Fund to distribute long-term capital gains more often than once in any one taxable year. After consideration by the Funds Board, the Fund adopted the current managed distribution policy which allows the Fund to make periodic distributions of long-term capital gains.
The following table sets forth the estimated breakdown of the distribution noted above, on a per share basis, from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital or other capital source.
Breakdown of Distribution |
||||||||
Sources |
% | US Dollar | ||||||
Net Investment Income |
0.00 | % | $ | 0.0000 | ||||
Net Realized Short-Term Capital Gains |
12.17 | % | $ | 0.0563 | ||||
Net Realized Long-Term Capital Gains |
87.83 | % | $ | 0.4062 | ||||
Return of Capital or other Capital Source |
0.00 | % | $ | 0.0000 | ||||
|
|
|
|
|||||
Total |
100.00 | % | $ | 0.4625 | ||||
|
|
|
|
The following table sets forth the estimated breakdown, on a per share basis, of all distributions made by the Fund during the year-to-date period ended on the Payment Date (includes the dividend payment noted in the table above) from the following sources: net investment income; net realized short-term capital gains; net realized long-term capital gains; and return of capital or other capital source.
Breakdown of All Distributions Paid Through Year-To-Date Period Ended on the Payment Date |
||||||||
Sources |
% | US Dollar | ||||||
Net Investment Income |
0.00 | % | $ | 0.0000 | ||||
Net Realized Short-Term Capital Gains |
12.90 | % | $ | 0.1193 | ||||
Net Realized Long-Term Capital Gains |
87.10 | % | $ | 0.8057 | ||||
Return of Capital or other Capital Source |
0.00 | % | $ | 0.0000 | ||||
|
|
|
|
|||||
Total |
100.00 | % | $ | 0.9250 | ||||
|
|
|
|
Historically, the Fund has distributed more than its income and net realized capital gains, which has resulted in Fund distributions substantially consisting of return of capital or other capital source. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income. As of the payment date of the current distribution, all Fund distributions paid in 2018 (as estimated by the Fund based on current information) are from the earnings and profits of the Fund and not a return of capital. This could change during the remainder of the year, as further described below.
The amounts, sources and percentage breakdown of the distributions reported in this Notice are only estimates and are not being provided for, and should not be used for, tax reporting purposes. The actual amounts, sources and percentage breakdown of the distribution for tax reporting purposes, which may include return of capital, will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
The following table sets forth (i) the average annual total return of a share of the Funds common stock at net asset value (NAV) for the period since inception of Fund investment operations through the period noted and (ii) the Funds annualized distribution rate, for the same period, expressed as a percentage of the NAV price of a share of the Funds common stock at April 30, 2018. Average annual total return of a share of the Funds common stock at NAV for the period since inception of Fund investment operations through the period noted includes the 4.50% sales load assessed to IPO investors.
Average Annual Total NAV Return for the Period Since Inception of Investment Operations (November 30, 2009) Through April 30, 2018 |
12.40 | % | ||
Annualized Distribution Rate as a Percentage of April 30, 2018 NAV Price (For the Period Since Inception of Investment Operations (November 30, 2009) through April 30, 2018) |
9.18 | % |
The following table sets forth (i) the cumulative total return (at NAV) of a share of the Funds common stock for the year-to-date period ended April 30, 2018 and (ii) the Funds distribution rate, for the same period, expressed as a percentage of the NAV price of a share of the Funds common stock at April 30, 2018.
Cumulative Total NAV Return for the Year-to-Date Period Ended April 30, 2018 |
0.87 | % | ||
Distribution Rate as a Percentage of April 30, 2018 NAV Price (For the Year-to-Date Period Ended April 30, 2018) |
2.25 | % |
Past performance does not guarantee future results.
You should not draw any conclusions about the Funds investment performance from the amount of the distributions noted in the tables above or from the terms of the Funds distribution policy.
The Fund or your financial professional will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions on your US federal income tax return. For tax purposes, the Fund is required to report unrealized gains or losses on certain non-US investments as ordinary income or loss, respectively. Accordingly, the amount of the Funds total distributions that will be taxable as ordinary income may be different than the amount of the distributions from net investment income reported above.
The Board may change the Funds distribution policy and the amount or timing of the distributions, based on a number of factors, including, but not limited to, the amount of the Funds undistributed net investment income and net short- and long-term capital gains and historical and projected net investment income and net short- and long-term capital gains.
Investors should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. You can obtain the Funds most recent periodic reports and other regulatory filings by contacting your financial advisor or visiting www.columbiathreadneedle.com. These reports and other filings can also be found on the Securities and Exchange Commissions EDGAR Database. You should read these reports and other filings carefully before investing.
The Fund expects to receive all or some of its current income and gains from the following sources: (i) dividends received by the Fund that are paid on the equity and equity-related securities in its portfolio; and (ii) capital gains (short-term and long-term) from option premiums and the sale of portfolio securities. It is possible that the Funds distributions will at times exceed the earnings and profits of the Fund and therefore all or a portion of such distributions may constitute a return of capital. A return of capital is a return of your original investment. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Distributions that qualify as a return of capital are a return of some or all of your original investment in the Fund. A return of capital reduces a stockholders tax basis in his or her shares. Once the tax basis in your shares has been reduced to zero, any further return of capital may be taxable as capital gain. Shareholders should consult their tax advisor or tax attorney for proper treatment.
Distributions may be variable, and the Funds distribution rate will depend on a number of factors, including the net earnings on the Funds portfolio investments and the rate at which such net earnings change as a result of changes in the timing of, and rates at which, the Fund receives income from the sources noted above.
Investment products are not federally or FDIC-insured, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
The Fund should only be considered as one element of a complete investment program. An investment in the Fund should be considered speculative. The Funds investment policy of investing in technology and technology-related companies and writing call options involves a high degree of risk.
There is no assurance that the Fund will meet its investment objectives or that distributions will be made. You could lose some or all of your investment. In addition, closed-end funds frequently trade at a discount to their net asset values, which may increase your risk of loss.
The market prices of technology and technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types of investments. These stocks may fall in and out of favor with investors rapidly, which may cause sudden selling and dramatically lower market prices. These stocks also may be affected adversely by changes in technology, consumer and business purchasing patterns, government regulation and/or obsolete products or services. Technology and technology-related companies are often smaller and less experienced companies and may be subject to greater risks than larger companies, such as limited product lines, markets and financial and managerial resources. These risks may be heightened for technology companies in foreign markets.
The Columbia Seligman Premium Technology Growth Fund is managed by Columbia Management Investment Advisers, LLC. This material is distributed by Columbia Management Investment Distributors, Inc., member FINRA.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.
All rights reserved. Columbia Management Investment Distributors, Inc., 225 Franklin Street, Boston, MA 02110-2804
© 2018 Columbia Management Investment Advisers, LLC
columbiathreadneedle.com/us
AdTrax 2109479
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