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 811-04367
Columbia Funds Series Trust I
(Exact name of registrant as specified in charter)
290 Congress Street
Boston, MA 02210
(Address of principal executive offices) (Zip code)
Daniel J. Beckman
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: April 30
Date of reporting period: October 31, 2023
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Multi-Manager
Directional Alternative Strategies Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Multi-Manager Directional Alternative Strategies Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects
to receive shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’
website (columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please
call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, is available on columbiathreadneedleus.com/investor/or can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
You may obtain the current net
asset value (NAV) of Fund shares at no cost by calling 800.345.6611 or by sending an e-mail to serviceinquiries@columbiathreadneedle.com.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Multi-Manager Directional Alternative Strategies
Fund | Semiannual Report 2023
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks capital appreciation.
Portfolio management
Allspring Global Investments, LLC
Harindra de Silva, CFA
David Krider, CFA
Boston Partners Global Investors, Inc
Joseph Feeney, Jr., CFA
Scott Burgess, CFA
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund
expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual
funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2023 — October 31, 2023 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Institutional Class | 1,000.00 | 1,000.00 | 1,006.20 | 1,014.28 | 11.16 | 11.21 | 2.19 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
The Fund is offered only through
certain wrap fee programs sponsored and/or managed by Ameriprise Financial, Inc. or its affiliates. Participants in wrap fee programs pay other fees that are not included in the above table. Please refer to the wrap
program documents for information about the fees charged.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 5 |
Portfolio of Investments
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 7 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 9 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 11 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 13 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 15 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 17 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
At October 31, 2023,
securities and/or cash totaling $123,638,719 were pledged as collateral.
Investments in
derivatives
| Call option contracts written | ||||||||
| Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
| Equinor ASA | Morgan Stanley | USD | (423,799) | (127) | 31.00 | 11/17/2023 | (43,203) | (32,385) |
| Kroger Co. (The) | Morgan Stanley | USD | (163,332) | (36) | 47.00 | 12/15/2023 | (2,717) | (3,834) |
| Progressive Corp. (The) | Morgan Stanley | USD | (347,798) | (22) | 150.00 | 11/17/2023 | (5,388) | (20,460) |
| Restaurant Brands International, Inc. | Morgan Stanley | USD | (87,360) | (13) | 70.00 | 11/17/2023 | (903) | (1,138) |
| Restaurant Brands International, Inc. | Morgan Stanley | USD | (120,960) | (18) | 67.50 | 11/17/2023 | (2,883) | (3,375) |
| Shell PLC | Morgan Stanley | USD | (469,008) | (72) | 62.50 | 11/17/2023 | (38,878) | (23,040) |
| Walmart, Inc. | Morgan Stanley | USD | (228,774) | (14) | 167.50 | 11/17/2023 | (2,079) | (2,660) |
| Total | (96,051) | (86,892) | ||||||
| Put option contracts written | ||||||||
| Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
| Cheesecake Factory, Inc. (The) | Morgan Stanley | USD | (99,424) | (32) | 27.50 | 11/17/2023 | (1,412) | (800) |
| Floor & Decor Holdings, Inc. | Morgan Stanley | USD | (74,160) | (9) | 80.00 | 11/17/2023 | (2,838) | (2,407) |
| Floor & Decor Holdings, Inc. | Morgan Stanley | USD | (115,360) | (14) | 75.00 | 12/15/2023 | (3,622) | (2,975) |
| Tractor Supply Co. | Morgan Stanley | USD | (57,768) | (3) | 185.00 | 11/17/2023 | (696) | (525) |
| Total | (8,568) | (6,707) | ||||||
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Total return swap contracts | ||||||||||||
| Fund receives | Fund pays | Payment frequency | Counterparty | Maturity date | Notional currency | Notional amount | Value ($) | Periodic payments receivable (payable) ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Total return on Samsung Electronics Co., Ltd. | 1-Day Overnight Fed Funds Effective Rate plus 0.800% | Monthly | Macquarie | 09/19/2024 | USD | 178,730 | (5,214) | 421 | — | — | — | (4,793) |
| Reference index and values for swap contracts as of period end | ||
| Reference index | Reference rate | |
| 1-Day Overnight Fed Funds Effective Rate | Overnight Federal Funds Effective Rate | 5.330% |
Notes to Portfolio of
Investments
| (a) | This security or a portion of this security has been pledged as collateral in connection with investments sold short and/or derivative contracts. |
| (b) | Non-income producing investment. |
| (c) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At October 31, 2023, the total value of these securities amounted to $178,365, which represents 0.07% of total net assets. |
| (d) | Valuation based on significant unobservable inputs. |
| (e) | The rate shown is the seven-day current annualized yield at October 31, 2023. |
| (f) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended October 31, 2023 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 5.630% | ||||||||
| 33,247,325 | 218,996,551 | (204,682,498) | 1,413 | 47,562,791 | (4,434) | 928,762 | 47,577,064 | |
Abbreviation Legend
| ADR | American Depositary Receipt |
| NVDR | Non-Voting Depositary Receipt |
Currency Legend
| USD | US Dollar |
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. 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). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 19 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
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.
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.
Foreign equity securities actively
traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact
of market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation.
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.
The Fund’s Board of Trustees
(the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market
quotations are not readily available using 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 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. Representatives of Columbia Management Investment
Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2023:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Communication Services | 12,420,059 | 1,078,782 | — | 13,498,841 |
| Consumer Discretionary | 12,133,705 | 2,845,862 | — | 14,979,567 |
| Consumer Staples | 13,208,455 | 2,022,828 | — | 15,231,283 |
| Energy | 10,664,990 | 2,260,757 | — | 12,925,747 |
| Financials | 15,723,285 | 8,664,975 | — | 24,388,260 |
| Health Care | 20,972,270 | 1,888,095 | — | 22,860,365 |
| Industrials | 23,242,389 | 9,361,678 | — | 32,604,067 |
| Information Technology | 20,611,343 | 589,358 | — | 21,200,701 |
| Materials | 2,820,120 | 3,428,834 | — | 6,248,954 |
| Real Estate | 2,903,593 | 646,889 | — | 3,550,482 |
| Utilities | 3,516,796 | 2,137,376 | — | 5,654,172 |
| Total Common Stocks | 138,217,005 | 34,925,434 | — | 173,142,439 |
| Exchange-Traded Equity Funds | 37,817,696 | — | — | 37,817,696 |
| Preferred Stocks | ||||
| Consumer Discretionary | — | 618,546 | — | 618,546 |
| Total Preferred Stocks | — | 618,546 | — | 618,546 |
| Warrants | ||||
| Information Technology | — | — | 0* | 0* |
| Total Warrants | — | — | 0* | 0* |
| Money Market Funds | 47,562,791 | — | — | 47,562,791 |
| Total Investments in Securities | 223,597,492 | 35,543,980 | 0* | 259,141,472 |
| Investments in Securities Sold Short | ||||
| Common Stocks | ||||
| Communication Services | (3,478,724) | (1,263,484) | — | (4,742,208) |
| Consumer Discretionary | (6,286,082) | (1,795,936) | — | (8,082,018) |
| Consumer Staples | (2,305,841) | (690,656) | (178,365) | (3,174,862) |
| Energy | (2,958,685) | (24,551) | — | (2,983,236) |
| Financials | (6,526,228) | (3,302,238) | — | (9,828,466) |
| Health Care | (2,954,075) | (3,056,706) | — | (6,010,781) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 20 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Industrials | (5,216,195) | (2,851,970) | — | (8,068,165) |
| Information Technology | (4,830,479) | (232,094) | — | (5,062,573) |
| Materials | (744,195) | (2,861,833) | — | (3,606,028) |
| Real Estate | (1,624,716) | (1,589,186) | — | (3,213,902) |
| Utilities | (458,684) | (473,314) | — | (931,998) |
| Total Common Stocks | (37,383,904) | (18,141,968) | (178,365) | (55,704,237) |
| Total Investments in Securities Sold Short | (37,383,904) | (18,141,968) | (178,365) | (55,704,237) |
| Total Investments in Securities, Net of Securities Sold Short | 186,213,588 | 17,402,012 | (178,365) | 203,437,235 |
| Investments in Derivatives | ||||
| Liability | ||||
| Call Option Contracts Written | (86,892) | — | — | (86,892) |
| Put Option Contracts Written | (6,707) | — | — | (6,707) |
| Swap Contracts | — | (4,793) | — | (4,793) |
| Total | 186,119,989 | 17,397,219 | (178,365) | 203,338,843 |
| * | Rounds to zero. |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets. These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The model utilized by such third party statistical
pricing service takes into account a security’s correlation to available market data including, but not limited to, intraday index, ADR, and exchange-traded fund movements.
Swap contracts are valued at
unrealized appreciation (depreciation).
The Fund does not hold any
significant investments (greater than one percent of net assets) categorized as Level 3.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 21 |
Statement of Assets and Liabilities
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $204,564,324) | $211,578,681 |
| Affiliated issuers (cost $47,557,696) | 47,562,791 |
| Cash | 259,248 |
| Cash collateral held at broker for: | |
| Swap contracts | 60,000 |
| Securities sold short | 53,687,625 |
| Receivable for: | |
| Investments sold | 701,686 |
| Capital shares sold | 331,565 |
| Dividends | 506,210 |
| Interest | 162,220 |
| Foreign tax reclaims | 229,674 |
| Trustees’ fees | 38,237 |
| Expense reimbursement due from Investment Manager | 2,630 |
| Prepaid expenses | 4,243 |
| Other assets | 567 |
| Total assets | 315,125,377 |
| Liabilities | |
| Securities sold short, at value (proceeds $66,776,536) | 55,704,237 |
| Option contracts written, at value (premiums received $104,619) | 93,599 |
| Foreign currency (cost $1,051) | 1,071 |
| Unrealized depreciation on swap contracts | 4,793 |
| Payable for: | |
| Investments purchased | 692,686 |
| Capital shares redeemed | 407,933 |
| Dividends and interest on securities sold short | 57,258 |
| Management services fees | 11,284 |
| Transfer agent fees | 49,246 |
| Trustees’ fees | 55,689 |
| Compensation of chief compliance officer | 25 |
| Other expenses | 131,641 |
| Total liabilities | 57,209,462 |
| Net assets applicable to outstanding capital stock | $257,915,915 |
| Represented by | |
| Paid in capital | 245,344,952 |
| Total distributable earnings (loss) | 12,570,963 |
| Total - representing net assets applicable to outstanding capital stock | $257,915,915 |
| Institutional Class | |
| Net assets | $257,915,915 |
| Shares outstanding | 39,900,389 |
| Net asset value per share | $6.46 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 22 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Statement of Operations
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $2,552,810 |
| Dividends — affiliated issuers | 928,762 |
| Interest | 1,311,337 |
| Interfund lending | 280 |
| Foreign taxes withheld | (71,739) |
| Total income | 4,721,450 |
| Expenses: | |
| Management services fees | 2,148,292 |
| Transfer agent fees | |
| Institutional Class | 296,923 |
| Trustees’ fees | 9,576 |
| Custodian fees | 110,771 |
| Printing and postage fees | 26,415 |
| Registration fees | 20,393 |
| Accounting services fees | 26,003 |
| Legal fees | 7,599 |
| Dividends and interest on securities sold short | 578,492 |
| Compensation of chief compliance officer | 25 |
| Other | 5,913 |
| Total expenses | 3,230,402 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (296,348) |
| Total net expenses | 2,934,054 |
| Net investment income | 1,787,396 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 12,710,927 |
| Investments — affiliated issuers | (4,434) |
| Foreign currency translations | (153,967) |
| Option contracts purchased | (236,499) |
| Option contracts written | 123,840 |
| Securities sold short | (2,178,545) |
| Swap contracts | 2,086 |
| Net realized gain | 10,263,408 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (14,519,773) |
| Investments — affiliated issuers | 1,413 |
| Foreign currency translations | (345,828) |
| Option contracts purchased | 135,686 |
| Option contracts written | 9,768 |
| Securities sold short | 4,707,480 |
| Swap contracts | (3,263) |
| Net change in unrealized appreciation (depreciation) | (10,014,517) |
| Net realized and unrealized gain | 248,891 |
| Net increase in net assets resulting from operations | $2,036,287 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 23 |
Statement of Changes in Net Assets
| Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, 2023 | |
| Operations | ||
| Net investment income | $1,787,396 | $1,616,660 |
| Net realized gain (loss) | 10,263,408 | (6,005,539) |
| Net change in unrealized appreciation (depreciation) | (10,014,517) | (4,657,653) |
| Net increase (decrease) in net assets resulting from operations | 2,036,287 | (9,046,532) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Institutional Class | — | (27,498,020) |
| Total distributions to shareholders | — | (27,498,020) |
| Increase (decrease) in net assets from capital stock activity | (3,883,371) | 29,607,127 |
| Total decrease in net assets | (1,847,084) | (6,937,425) |
| Net assets at beginning of period | 259,762,999 | 266,700,424 |
| Net assets at end of period | $257,915,915 | $259,762,999 |
| Six Months Ended | Year Ended | |||
| October 31, 2023 (Unaudited) | April 30, 2023 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Institutional Class | ||||
| Shares sold | 3,722,072 | 24,201,081 | 10,452,906 | 73,487,604 |
| Distributions reinvested | — | — | 4,198,171 | 27,498,020 |
| Shares redeemed | (4,313,819) | (28,084,452) | (10,094,867) | (71,378,497) |
| Net increase (decrease) | (591,747) | (3,883,371) | 4,556,210 | 29,607,127 |
| Total net increase (decrease) | (591,747) | (3,883,371) | 4,556,210 | 29,607,127 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 24 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is
calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be
higher.
| Institutional Class | Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, | ||||
| 2023 | 2022 | 2021 | 2020 | 2019 | ||
| Per share data | ||||||
| Net asset value, beginning of period | $6.42 | $7.42 | $7.23 | $6.00 | $6.78 | $10.82 |
| Income (loss) from investment operations: | ||||||
| Net investment income (loss) | 0.04 | 0.04 | (0.07) | (0.08) | (0.01) | (0.01) |
| Net realized and unrealized gain (loss) | 0.00(a) | (0.28) | 0.80 | 1.31 | (0.72) | (0.80) |
| Total from investment operations | 0.04 | (0.24) | 0.73 | 1.23 | (0.73) | (0.81) |
| Distributions to shareholders | ||||||
| Distributions from net investment income | — | (0.15) | (0.08) | — | — | (0.06) |
| Distributions from net realized gains | — | (0.61) | (0.46) | — | (0.05) | (3.17) |
| Total distributions to shareholders | — | (0.76) | (0.54) | — | (0.05) | (3.23) |
| Net asset value, end of period | $6.46 | $6.42 | $7.42 | $7.23 | $6.00 | $6.78 |
| Total return | 0.62% | (3.44%) | 10.42% | 20.50% | (10.81%) | (5.65%) |
| Ratios to average net assets | ||||||
| Total gross expenses(b) | 2.41%(c) | 2.62%(c),(d) | 2.61%(c),(d),(e) | 2.90%(c),(d),(e) | 2.31%(c),(e) | 2.16%(c),(d),(e) |
| Total net expenses(b),(f) | 2.19%(c) | 2.35%(c),(d) | 2.43%(c),(d),(e) | 2.71%(c),(d),(e) | 2.19%(c),(e) | 2.12%(c),(d),(e) |
| Net investment income (loss) | 1.33% | 0.62% | (1.00%) | (1.31%) | (0.14%) | (0.11%) |
| Supplemental data | ||||||
| Net assets, end of period (in thousands) | $257,916 | $259,763 | $266,700 | $278,350 | $221,159 | $251,976 |
| Portfolio turnover | 120% | 399% | 323% | 254% | 197% | 146%(g) |
| Notes to Financial Highlights | |
| (a) | Rounds to zero. |
| (b) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (c) | Ratios include dividends and interest on securities sold short. If dividends and interest on securities sold short had been excluded, annualized expenses would have been lower by: |
| Class | 10/31/2023 | 4/30/2023 | 4/30/2022 | 4/30/2021 | 4/30/2020 | 4/30/2019 |
| Institutional Class | 0.43% | 0.51% | 0.59% | 0.87% | 0.32% | 0.19% |
| (d) | Ratios include interfund lending expense which is less than 0.01%. |
| (e) | Ratios include interest on collateral expense which is less than 0.01%. |
| (f) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (g) | The rate for the year ended April 30, 2019, as disclosed in the April 30, 2020 and 2019 financial statements was calculated and presented incorrectly and has been corrected. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 25 |
Notes to Financial Statements
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 1. Organization
Multi-Manager Directional
Alternative Strategies Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund is offered only through certain wrap fee programs sponsored and/or managed by Ameriprise Financial, Inc. (Ameriprise Financial) or its affiliates. The Fund offers the
share class listed in the Statement of Assets and Liabilities which is not subject to any front-end sales charge or contingent deferred sales charge.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on
any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are
valued based on the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available,
the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect
events that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy approved by the Board of Trustees. Under the
policy, the Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S.
securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that
reasonably reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Option contracts are valued at the
mean of the latest quoted bid and ask prices on their primary exchanges. Option contracts, including over-the-counter option contracts, with no readily available market quotations are valued using mid-market
evaluations from independent third-party vendors.
Swap transactions are valued
through an independent pricing service or broker, or if neither is available, through an internal model based upon observable inputs.
| 26 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if
available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Foreign currency transactions and
translations
The values of all assets and
liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains
(losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes,
the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations
are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements
which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial
statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty provides some protection in the case of clearing member default. The clearinghouse or central counterparty stands between the buyer and the seller of the
contract; therefore, failure of the clearinghouse or central counterparty may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with
respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker
becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the central
counterparty or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to
the Fund.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 27 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may
impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or central counterparty for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the
minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific
margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such
agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum
transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the
risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker or receive interest income on cash collateral pledged to the broker. The Fund attempts
to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those
counterparties.
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination
rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk,
whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Options contracts
Options are contracts which entitle
the holder to purchase or sell securities or other identified assets at a specified price, or in the case of index option contracts, to receive or pay the difference between the index value and the strike price of the
index option contract. Option contracts can be either exchange-traded or over-the-counter. The Fund purchased and has written option contracts to decrease the Fund’s exposure to equity risk, to increase return
on investments and to protect gains. These instruments may be used for other purposes in future periods. Completion of transactions for option contracts traded in the over-the-counter market depends upon the
performance of the other party. Collateral may be collected or posted by the Fund to secure over-the-counter option contract trades. Collateral held or posted by the Fund for such option contract trades must be
returned to the broker or the Fund upon closure, exercise or expiration of the contract.
Options contracts purchased are
recorded as investments. When the Fund writes an options contract, the premium received is recorded as an asset and an amount equivalent to the premium is recorded as a liability in the Statement of Assets and
Liabilities and is subsequently adjusted to reflect the current fair value of the option written. Changes in the fair value of the written option are recorded as unrealized appreciation or depreciation until the
contract is exercised or has expired. The Fund realizes a gain or loss when the option contract is closed or expires. When option contracts are exercised, the proceeds on sales for a written call or purchased put
option contract, or the purchase cost for a written put or purchased call option contract, is adjusted by the amount of premium received or paid.
| 28 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
For over-the-counter options
purchased, the Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the
contracts. Option contracts written by the Fund do not typically give rise to significant counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform. The risk in
writing a call option contract is that the Fund gives up the opportunity for profit if the market price of the security increases above the strike price and the option contract is exercised. The risk in writing a put
option contract is that the Fund may incur a loss if the market price of the security decreases below the strike price and the option contract is exercised. Exercise of a written option could result in the Fund
purchasing or selling a security or foreign currency when it otherwise would not, or at a price different from the current market value. In purchasing and writing options, the Fund bears the risk of an unfavorable
change in the value of the underlying instrument or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market.
Swap contracts
Swap contracts are negotiated in
the over-the-counter market and are entered into bilaterally or centrally cleared (centrally cleared swap contract). In a centrally cleared swap contract, immediately following execution of the swap contract with a
broker, the swap contract is novated to a central counterparty and the central counterparty becomes the Fund’s counterparty to the centrally cleared swap contract. The Fund is required to deposit initial
margin with the futures commission merchant (FCM), which pledges it through to the central counterparty in the form of cash or securities in an amount that varies depending on the size and risk profile of the
particular swap contract. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is recorded in the Statement of Assets and Liabilities as margin deposits. For a
bilateral swap contract, the Fund has credit exposure to the broker, but exchanges daily variation margin with the broker based on the mark-to-market value of the swap contract to minimize that exposure. For centrally
cleared swap contracts, the Fund has minimal credit exposure to the FCM because the central counterparty stands between the Fund and the relevant buyer/seller on the other side of the contract. Swap contracts are
marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swap contracts, if any, is recorded as a receivable or payable for
variation margin in the Statement of Assets and Liabilities.
Entering into these contracts
involves, to varying degrees, elements of interest, liquidity and counterparty credit risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there
may be unfavorable changes in interest rates, market conditions or other conditions, that it may be difficult to initiate a swap transaction or liquidate a position at an advantageous time or price which may result in
significant losses, and that the bilateral counterparty, FCM or central counterparty, as applicable, may not fulfill its obligation under the contract.
Total return swap contracts
The Fund entered into total return
swap contracts to manage long or short exposure to the total return on a specified reference security in return for periodic payments based on a fixed or variable interest rate. These instruments may be used for
other purposes in future periods. Total return swap contracts may be used to obtain exposure to an underlying reference security, instrument, or other asset or index or market without owning, taking physical custody
of, or short selling any such security, instrument or asset in a market.
Total return swap contracts are
valued daily, and the change in value is recorded as unrealized appreciation (depreciation) until the termination of the swap, at which time the Fund will realize a gain (loss). Periodic payments received (or made) by
the Fund over the term of the contract are recorded as realized gains (losses). Total return swap contracts are subject to the risk associated with the investment in the underlying reference security, instrument or
asset. This risk may be offset if the Fund holds any of the underlying reference security, instrument or asset. Total return swap contracts are subject to the risk that the counterparty may not fulfill its obligations
under the contract. This risk is offset by the daily exchange of variation margin with the swap counterparty.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 29 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at October 31, 2023:
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Equity risk | Option contracts written, at value | 93,599 |
| Equity risk | Component of total distributable earnings (loss) — unrealized depreciation on swap contracts | 4,793* |
| Total | 98,392 |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin for futures and centrally cleared swaps, if any, is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended October 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income | ||||
| Risk exposure category | Option contracts purchased ($) | Option contracts written ($) | Swap contracts ($) | Total ($) |
| Equity risk | (236,499) | 123,840 | 2,086 | (110,573) |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | ||||
| Risk exposure category | Option contracts purchased ($) | Option contracts written ($) | Swap contracts ($) | Total ($) |
| Equity risk | 135,686 | 9,768 | (3,263) | 142,191 |
The following table is a summary
of the average daily outstanding volume by derivative instrument for the six months ended October 31, 2023:
| Derivative instrument | Average value ($) |
| Option contracts purchased | 11,529 |
| Option contracts written | (58,272) |
| Derivative instrument | Average unrealized appreciation ($) | Average unrealized depreciation ($) |
| Total return swap contracts | 5,010 | (4,954) |
Short sales
The Fund may sell a security it
does not own in anticipation of a decline in the fair value of the security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the
short sale. The Fund is required to maintain a margin account with the broker and to pledge assets to the broker as collateral for the borrowed security. Securities pledged as collateral are designated in the
Portfolio of Investments. In addition, the collateral is recorded as cash collateral held at broker in the Statement of Assets and Liabilities. The Fund can purchase the same security at the current market price
and deliver it to the broker to close out the short sale. The Fund is obligated to pay the broker a fee for borrowing the security and may receive rebate income from the investment of collateral. The net amount of
income or fees is included in "Interest income" (for net income received) or “Dividends and interest on securities sold short” (for net expense) in the Statement of Operations. A short position is reported
as a liability at fair value in the Statement of Assets and Liabilities. The Fund must also pay the broker for any dividends accrued (recognized on ex-date) on the borrowed security. This amount is recorded as an
expense in the Statement of Operations. The Fund will record a gain if
| 30 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
the security declines in value, and will realize a
loss if the security appreciates. Such gain, limited to the price at which the Fund sold the security short, or such loss, potentially unlimited in size because the short position loses value as the market price of
the security sold short increases, will be recognized upon the termination of a short sale.
Offsetting of assets and
liabilities
The following table presents the
Fund’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Fund as of October 31, 2023:
| JPMorgan ($) | Macquarie ($) | Morgan Stanley ($) | Total ($) | |
| Liabilities | ||||
| Call option contracts written | - | - | 86,892 | 86,892 |
| Put option contracts written | - | - | 6,707 | 6,707 |
| OTC total return swap contracts (a) | - | 4,793 | - | 4,793 |
| Securities borrowed | 4,211,363 | - | 51,492,874 | 55,704,237 |
| Total liabilities | 4,211,363 | 4,793 | 51,586,473 | 55,802,629 |
| Total financial and derivative net assets | (4,211,363) | (4,793) | (51,586,473) | (55,802,629) |
| Total collateral received (pledged) (b) | (4,211,363) | (4,793) | (51,586,473) | (55,802,629) |
| Net amount (c) | - | - | - | - |
| (a) | Over-the-Counter (OTC) swap contracts are presented at market value plus periodic payments receivable (payable), which is comprised of unrealized appreciation, unrealized depreciation, upfront payments and upfront receipts. |
| (b) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| (c) | Represents the net amount due from/(to) counterparties in the event of default. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis.
Corporate actions and dividend
income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of an ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 31 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and
regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and
Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will,
among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data
format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month
transition period after the effective date of the amendments.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting
| 32 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
services. The Investment Manager is responsible
for the ultimate oversight of investments made by the Fund. The Fund’s subadvisers (see Subadvisory agreements below) have the primary responsibility for the day-to-day portfolio management of the Fund. The
management services fee is equal to 1.60% of the Fund’s daily net assets.
Effective September 5, 2023 (Waiver
Effective Date), the Investment Manager is voluntarily waiving a portion of its management fee effective on Fund assets formerly managed by a Fund subadviser that was terminated on the Waiver Effective Date (the
Former Subadviser’s Sleeve), which assets have been managed directly by the Investment Manager since that date. The Investment Manager will waive its management fees in an amount equal to the subadvisory fees
that would have been paid by the Investment Manager to the former subadviser with respect to the Former Subadviser’s Sleeve (based on the fee schedule in the terminated subadvisory agreement between the
Investment Manager and the former subadviser and the daily value of such assets). This voluntary management fee waiver is not taken into account as an offset to the Fund’s operating expenses when calculating an
existing contractual fee waiver/reimbursement arrangement between the Fund and the Investment Manager.
Subadvisory agreements
The Investment Manager has entered
into Subadvisory Agreements with Allspring Global Investments, LLC and Boston Partners Global Investors, Inc., each of which subadvises a portion of the assets of the Fund. Prior to September 5, 2023, J.P. Morgan
Investment Management Inc. served as a subadviser to the Fund. New investments in the Fund, net of any redemptions, are allocated in accordance with the Investment Manager’s determination. Each
subadviser’s proportionate share of investments in the Fund will vary due to market fluctuations. The Investment Manager compensates each subadviser to manage the investment of the Fund’s assets.
Compensation of Board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. The Transfer Agent pays the fees of SS&C GIDS for
services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 33 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees.
For the six months ended October
31, 2023, the Fund’s annualized effective transfer agency fee rate as a percentage of average daily net assets was as follows:
| Effective rate (%) | |
| Institutional Class | 0.22 |
Distribution and service fees
The Fund has an agreement with
Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Fund
does not pay the Distributor a fee for the distribution services it provides to the Fund.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| Fee rate(s) contractual through August 31, 2024 | |
| Institutional Class | 1.84% |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees.The Fund’s
management services fee voluntary waiver, which took effect on September 5, 2023, is also excluded from the waiver/reimbursement commitment and, therefore, provides an additional benefit to the Fund’s
shareholders.This agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement
arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At October 31, 2023, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 185,241,000 | 33,308,000 | (15,210,000) | 18,098,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
| 34 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The following capital loss
carryforwards, determined at April 30, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (7,018,378) | — | (7,018,378) |
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $358,553,123 and $353,364,741, respectively, for the six months ended October 31, 2023. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Brokerage commissions paid to
brokers affiliated with the Investment Manager of the Fund were $877 for the six months ended October 31, 2023.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject, by October 2,
2024, to a liquidity fee if daily net redemptions exceed 5% of net assets and, by April 2, 2024, to a discretionary liquidity fee up to 2% if the imposition of such a fee is determined to be in the best interest of
the Affiliated MMF.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended October 31, 2023 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Lender | 600,000 | 5.60 | 3 |
Interest income earned by the Fund
is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at October 31, 2023.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 35 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the
higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility
matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee
is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each
participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in
each case, 1.00%.
The Fund had no borrowings during
the six months ended October 31, 2023.
Note 9. Significant
risks
Alternative strategies investment
risk
An investment in alternative
investment strategies (Alternative Strategies) involves risks, which may be significant. Alternative Strategies may include strategies, instruments or other assets, such as derivatives, that seek investment returns
uncorrelated with the broad equity and fixed income/debt markets, as well as those providing exposure to other markets (such as commodity markets), including but not limited to absolute (positive) return strategies.
Alternative Strategies may fail to achieve their desired performance, market or other exposure, or their returns (or lack thereof) may be more correlated with the broad equity and/or fixed income/debt markets than was
anticipated, and the Fund may lose money.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency,
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
Foreign currency risk
The performance of the Fund may be
materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar, particularly if the Fund invests a significant percentage of its assets in foreign securities or other
assets denominated in currencies other than the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short or long periods of time for a number of reasons, including changes in interest
rates, imposition of currency controls and economic or political developments in the U.S. or abroad. The Fund may also incur currency conversion costs when converting foreign currencies into U.S. dollars and vice
versa.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant
| 36 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
redemptions and operational challenges. Global
economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market.
These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional
or global events such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for
such events – could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of
Russian currency. The extent and duration of the military action are impossible to predict but could continue to be significant. Market disruption caused by the Russian military action, and any counter measures or
responses thereto (including international sanctions, a downgrade in a country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences,
cyberattacks and espionage) could continue to have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced
market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain
international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Shareholder concentration risk
At October 31, 2023, affiliated
shareholders of record owned 100.0% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund.
In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less
liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Short positions risk
The Fund may establish short
positions which introduce more risk to the Fund than long positions (where the Fund owns the instrument or other asset) because the maximum sustainable loss on an instrument or other asset purchased (held long) is
limited to the amount paid for the instrument or other asset plus the transaction costs, whereas there is no maximum price of the shorted instrument or other asset when purchased in the open market. Therefore, in
theory, short positions have unlimited risk. The Fund’s use of short positions in effect “leverages” the Fund. Leverage potentially exposes the Fund to greater risks of loss due to unanticipated
market movements, which may magnify losses and increase the volatility of returns. To the extent the Fund takes a short position in a derivative instrument or other asset, this involves the risk of a potentially
unlimited increase in the value of the underlying instrument or other asset.
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its
affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to
perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and
regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 37 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to
the Fund.
| 38 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Approval of Management
and SubadvisoryAgreements
(Unaudited)
Columbia Management Investment
Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves
as the investment manager to Multi-Manager Directional Alternative Strategies Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other
services to the Fund and other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds). In addition, under the subadvisory agreements (the Subadvisory Agreements) between the
Investment Manager and each of Allspring Global Investments, LLC (Allspring), Boston Partners Global Investors, Inc. (Boston Partners), and J.P. Morgan Investment Management Inc. (J.P. Morgan) (collectively, the
Subadvisers), the Subadvisers provide portfolio management and related services for the Fund.
On an annual basis, the
Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement and the Subadvisory Agreements (together, the Advisory
Agreements). The Investment Manager prepared detailed reports for the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports
providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information
by independent legal counsel to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or
subcommittees) regularly meets with portfolio management teams and senior management personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and
Fund performance. The Board also accords appropriate weight to the work, deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment
Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the Advisory Agreements.
The Board, at its June 22, 2023
Board meeting (the June Meeting), considered the renewal of each of the Advisory Agreements for additional one-year terms. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees
various factors relevant to the Board’s consideration of advisory and subadvisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered
all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of each of the Advisory Agreements. Among other things, the
information and factors considered included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more 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 mutual funds, as determined by Broadridge; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Advisory Agreements; |
| • | Subadvisory fees payable by the Investment Manager under the Subadvisory Agreements; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various services performed by the Investment Manager and the Subadvisers under the Advisory Agreements, 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; |
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 39 |
Approval of Management and Subadvisory
Agreements (continued)
(Unaudited)
| • | Information regarding the resources of the Investment Manager and Subadvisers, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager and the Subadvisers 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). |
Following an analysis and
discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of each of the Advisory Agreements.
Nature, extent and quality of
services provided by the Investment Manager and the Subadvisers
The Board analyzed various
reports and presentations it had received detailing the services performed by the Investment Manager and the Subadvisers, as well as their history, expertise, resources and relative capabilities, and the
qualifications of their personnel.
The Board specifically considered
the many developments during recent years concerning the services provided by the Investment Manager, including, in particular, detailed information regarding the process employed for selecting and overseeing
affiliated and unaffiliated subadvisers. With respect to the Investment Manager, the Board also noted the organization and depth of the equity and credit research departments. The Board further observed the
enhancements to the investment risk management department’s processes, systems and oversight over the past several years. The Board also took into account the broad scope of services provided by the
Investment Manager to each subadvised Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the Investment
Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the
Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment
Manager, as well as the achievements in 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the
Advisory Agreements, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of
the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed
the acceptability of the terms of the Management Agreement (including the relatively broad scope of services required to be performed by the Investment Manager in addition to monitoring each Subadviser), noting that
no changes were proposed from the forms of agreements previously approved. The Board also noted the wide array of legal and compliance services provided to the Fund under the Management Agreement.
The Board considered each
Subadviser’s organizational strength and resources, portfolio management team depth and capabilities and investment process. The Board also considered each Subadviser’s capability and wherewithal to
carry out its responsibilities under the applicable Subadvisory Agreement. In addition, the Board discussed the acceptability of the terms of the Subadvisory Agreements, including the scope of services required
to be performed. The Board noted that the terms of the Subadvisory Agreements are generally consistent with the terms of other subadvisory agreements for subadvisers who manage other funds managed by the
Investment Manager. It was observed that no changes were recommended to the Subadvisory Agreements. The Board took into account the Investment Manager’s representation that each Subadviser was in a
position to provide quality services to the Fund. In this regard, the Board further observed the various services provided by the Investment Manager’s subadvisory oversight team.
| 40 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Approval of Management and Subadvisory
Agreements (continued)
(Unaudited)
After reviewing these and related factors
(including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Advisory
Agreements supported the continuation of the Management Agreement and each of the Subadvisory Agreements.
Investment performance
The Board carefully reviewed the
investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including
since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that the Fund’s
performance for certain periods ranked above median based on information provided by Broadridge.
Additionally, the Board reviewed
the performance of each of the Subadvisers and the Investment Manager’s process for monitoring such Subadvisers’ performance. The Board considered, in particular, management’s rationale for
recommending the continued retention of each Subadviser and management’s representations that the Investment Manager’s profitability is not the key factor driving their recommendation to select, renew or
terminate the Subadvisers.
The Board also reviewed a
description of the methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the
Investment Manager’s and Subadvisers’ performance and reputation generally and the Investment Manager’s evaluation of the contribution of each Subadviser to the Fund’s investment mandate.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund, the Investment Manager and the Subadvisers, in light of other
considerations, supported the continuation of the Management Agreement and each of the Subadvisory Agreements.
Comparative fees, costs of
services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative
fees and the costs of services provided under each of the Advisory Agreements. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among
other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the
Fund’s contribution to the Investment Manager’s profitability.
The Board considered the reports of
JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a
primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain
exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper
comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
Additionally, the Board reviewed
the level of subadvisory fees paid to each Subadviser, noting that the fees are paid by the Investment Manager and do not impact the fees paid by the Fund. The Board also reviewed advisory fee rates charged by
other comparable mutual funds employing each Subadviser to provide comparable subadvisory services. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the levels of management fees, subadvisory fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement and each of the Subadvisory
Agreements.
| Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 | 41 |
Approval of Management and Subadvisory
Agreements (continued)
(Unaudited)
The Board also considered the profitability of the
Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. Because the Subadvisory Agreements were negotiated at arms-length by the Investment
Manager, which is responsible for payments to the Subadvisers thereunder, the Board did not consider the profitability to each Subadviser from its relationship with the Fund. With respect to the profitability of
the Investment Manager and its affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the
Funds. The Board considered that the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds.
It also took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other
financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive
compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement and
each of the Subadvisory Agreements.
Economies of scale
The Board considered the
potential existence of economies of scale in the provision by the Investment Manager of services to the Fund and whether those economies of scale were shared with the Fund through breakpoints in investment management
fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of
scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that while
the Management Agreement did not provide for breakpoints and the Subadvisory Agreement with Allspring and J.P. Morgan provided for breakpoints that reduce the fees payable to Allspring and J.P. Morgan as Fund assets
grow, there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the
above considerations in reaching its decision to approve the continuation of the Management Agreement and each of the Subadvisory Agreements. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board,
including all of the Independent Trustees, determined that fees payable under each of the Advisory Agreements were fair and reasonable in light of the extent and quality of services provided and approved the renewal
of each of the Advisory Agreements.
| 42 | Multi-Manager Directional Alternative Strategies Fund | Semiannual Report 2023 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2023 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR284_04_N01_(12/23)
Columbia Total
Return Bond Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Total Return Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, is available on columbiathreadneedleus.com/investor/ or can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Total Return Bond
Fund | Semiannual Report 2023
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, consisting of current income and capital appreciation.
Portfolio management
Jason Callan
Lead Portfolio Manager
Managed Fund since 2016
Gene Tannuzzo, CFA
Portfolio Manager
Managed Fund since 2017
Alex Christensen, CFA
Portfolio Manager
Managed Fund since 2021
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 3 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2023 — October 31, 2023 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 936.00 | 1,021.65 | 3.64 | 3.80 | 0.74 |
| Advisor Class | 1,000.00 | 1,000.00 | 937.40 | 1,022.92 | 2.41 | 2.52 | 0.49 |
| Class C | 1,000.00 | 1,000.00 | 932.80 | 1,017.79 | 7.37 | 7.69 | 1.50 |
| Institutional Class | 1,000.00 | 1,000.00 | 937.30 | 1,022.92 | 2.41 | 2.52 | 0.49 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 937.80 | 1,023.28 | 2.07 | 2.16 | 0.42 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 937.80 | 1,023.53 | 1.82 | 1.90 | 0.37 |
| Class R | 1,000.00 | 1,000.00 | 935.20 | 1,020.38 | 4.87 | 5.08 | 0.99 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 5 |
Portfolio of Investments
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 7 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 9 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 11 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 13 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 15 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 17 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 19 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 21 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 22 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 23 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 24 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 25 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 26 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 27 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 28 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
At October 31, 2023,
securities and/or cash totaling $46,094,602 were pledged as collateral.
Investments in
derivatives
| Forward foreign currency exchange contracts | |||||
| Currency to be sold | Currency to be purchased | Counterparty | Settlement date | Unrealized appreciation ($) | Unrealized depreciation ($) |
| 3,494,900 EUR | 3,710,336 USD | Citi | 12/07/2023 | 6,575 | — |
| Long futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| 3-Month SONIA | 994 | 03/2026 | GBP | 237,826,925 | 296,299 | — |
| Long Gilt | 465 | 12/2023 | GBP | 43,319,400 | 989,068 | — |
| U.S. Treasury 5-Year Note | 8,572 | 12/2023 | USD | 895,573,098 | — | (14,321,114) |
| U.S. Treasury Ultra Bond | 117 | 12/2023 | USD | 13,169,813 | — | (634,570) |
| Total | 1,285,367 | (14,955,684) | ||||
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| 3-Month SOFR | (1,850) | 03/2025 | USD | (441,016,875) | 1,721,717 | — |
| 3-Month SOFR | (1,225) | 03/2026 | USD | (293,571,250) | — | (152,666) |
| U.S. Long Bond | (510) | 12/2023 | USD | (55,813,125) | 5,035,383 | — |
| U.S. Treasury 10-Year Note | (2,109) | 12/2023 | USD | (223,916,484) | 267,065 | — |
| U.S. Treasury 10-Year Note | (872) | 12/2023 | USD | (92,581,875) | — | (434,226) |
| U.S. Treasury 2-Year Note | (376) | 12/2023 | USD | (76,110,625) | 382,606 | — |
| Total | 7,406,771 | (586,892) | ||||
| Call option contracts purchased | ||||||||
| Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Cost ($) | Value ($) |
| 10-Year OTC interest rate swap with Citi to receive exercise rate and pay SOFR | Citi | USD | 113,470,000 | 113,470,000 | 3.30 | 11/14/2023 | 3,631,040 | 23 |
| 10-Year OTC interest rate swap with Citi to receive exercise rate and pay SOFR | Citi | USD | 135,000,000 | 135,000,000 | 3.30 | 11/30/2023 | 3,577,500 | 1,201 |
| 10-Year OTC interest rate swap with Morgan Stanley to receive exercise rate and pay SOFR | Morgan Stanley | USD | 55,000,000 | 55,000,000 | 3.00 | 01/10/2024 | 1,878,250 | 3,993 |
| Total | 9,086,790 | 5,217 | ||||||
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 29 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Put option contracts written | ||||||||
| Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
| 10-Year OTC interest rate swap with Citi to receive exercise rate and pay SOFR | Citi | USD | (99,230,000) | (99,230,000) | 5.10 | 12/27/2023 | (275,363) | (348,396) |
| Credit default swap contracts - buy protection | ||||||||||||
| Reference entity | Counterparty | Maturity date | Pay fixed rate (%) | Payment frequency | Notional currency | Notional amount | Value ($) | Periodic payments receivable (payable) ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Markit CMBX North America Index, Series 11 BBB- | Citi | 11/18/2054 | 3.000 | Monthly | USD | 7,000,000 | 1,725,381 | (4,083) | 1,746,980 | — | — | (25,682) |
| Markit CMBX North America Index, Series 12 BBB- | Citi | 08/17/2061 | 3.000 | Monthly | USD | 5,800,000 | 1,876,237 | (3,383) | 1,568,004 | — | 304,850 | — |
| Markit CMBX North America Index, Series 11 BBB- | Goldman Sachs International | 11/18/2054 | 3.000 | Monthly | USD | 1,700,000 | 419,021 | (992) | 254,451 | — | 163,578 | — |
| Markit CMBX North America Index, Series 10 BBB- | JPMorgan | 11/17/2059 | 3.000 | Monthly | USD | 8,000,000 | 2,637,685 | (4,667) | 318,328 | — | 2,314,690 | — |
| Markit CMBX North America Index, Series 11 BBB- | JPMorgan | 11/18/2054 | 3.000 | Monthly | USD | 1,700,000 | 419,022 | (992) | 56,256 | — | 361,774 | — |
| Markit CMBX North America Index, Series 11 BBB- | Morgan Stanley | 11/17/2059 | 3.000 | Monthly | USD | 1,000,000 | 329,711 | (583) | 56,921 | — | 272,207 | — |
| Markit CMBX North America Index, Series 16 BBB- | Morgan Stanley | 04/17/2065 | 3.000 | Monthly | USD | 5,780,000 | 1,603,850 | (3,372) | 1,336,590 | — | 263,888 | — |
| Total | 9,010,907 | (18,072) | 5,337,530 | — | 3,680,987 | (25,682) | ||||||
| Cleared credit default swap contracts - buy protection | |||||||||||
| Reference entity | Counterparty | Maturity date | Pay fixed rate (%) | Payment frequency | Notional currency | Notional amount | Value ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Markit CDX North America High Yield Index, Series 41 | Morgan Stanley | 12/20/2028 | 5.000 | Quarterly | USD | 89,362,000 | 499,907 | — | — | 499,907 | — |
| Credit default swap contracts - sell protection | |||||||||||||
| Reference entity | Counterparty | Maturity date | Receive fixed rate (%) | Payment frequency | Implied credit spread (%)* | Notional currency | Notional amount | Value ($) | Periodic payments receivable (payable) ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Markit CMBX North America Index, Series 10 BBB- | Citi | 11/17/2059 | 3.000 | Monthly | 18.519 | USD | 4,000,000 | (1,318,842) | 2,333 | — | (852,964) | — | (463,545) |
| Markit CMBX North America Index, Series 10 BBB- | Citi | 11/17/2059 | 3.000 | Monthly | 18.519 | USD | 7,000,000 | (2,307,974) | 4,083 | — | (818,986) | — | (1,484,905) |
| Markit CMBX North America Index, Series 10 BBB- | JPMorgan | 11/17/2059 | 3.000 | Monthly | 18.519 | USD | 5,000,000 | (1,648,553) | 2,917 | — | (1,055,869) | — | (589,767) |
| Markit CMBX North America Index, Series 10 BBB- | JPMorgan | 11/17/2059 | 3.000 | Monthly | 18.519 | USD | 5,000,000 | (1,648,554) | 2,917 | — | (817,912) | — | (827,725) |
| Markit CMBX North America Index, Series 10 BBB- | JPMorgan | 11/17/2059 | 3.000 | Monthly | 18.519 | USD | 5,000,000 | (1,648,553) | 2,917 | — | (787,599) | — | (858,037) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 30 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Credit default swap contracts - sell protection (continued) | |||||||||||||
| Reference entity | Counterparty | Maturity date | Receive fixed rate (%) | Payment frequency | Implied credit spread (%)* | Notional currency | Notional amount | Value ($) | Periodic payments receivable (payable) ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Markit CMBX North America Index, Series 10 BBB- | Morgan Stanley | 11/17/2059 | 3.000 | Monthly | 18.519 | USD | 3,000,000 | (989,132) | 1,750 | — | (556,404) | — | (430,978) |
| Markit CMBX North America Index, Series 8 BBB- | Morgan Stanley | 10/17/2057 | 3.000 | Monthly | 30.340 | USD | 7,000,000 | (1,465,363) | 4,083 | — | (1,405,531) | — | (55,749) |
| Total | (11,026,971) | 21,000 | — | (6,295,265) | — | (4,710,706) | |||||||
* Implied credit spreads,
represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the
payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may
include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or
other credit event occurring as defined under the terms of the agreement.
Notes to Portfolio of
Investments
| (a) | 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 October 31, 2023, the total value of these securities amounted to $1,558,449,894, which represents 57.45% of total net assets. |
| (b) | Variable rate security. The interest rate shown was the current rate as of October 31, 2023. |
| (c) | Valuation based on significant unobservable inputs. |
| (d) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The interest rate shown was the current rate as of October 31, 2023. |
| (e) | Non-income producing investment. |
| (f) | Principal amounts are denominated in United States Dollars unless otherwise noted. |
| (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 October 31, 2023. |
| (h) | Represents a security purchased on a when-issued basis. |
| (i) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At October 31, 2023, the total value of these securities amounted to $428,946, which represents 0.02% of total net assets. |
| (j) | Represents a security in default. |
| (k) | Payment-in-kind security. Interest can be paid by issuing additional par of the security or in cash. |
| (l) | Principal and interest may not be guaranteed by a governmental entity. |
| (m) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
| (n) | Represents interest only securities which have the right to receive the monthly interest payments on an underlying pool of mortgage loans. |
| (o) | The stated interest rate represents the weighted average interest rate at October 31, 2023 of contracts within the senior loan facility. Interest rates on contracts are primarily determined either weekly, monthly or quarterly by reference to the indicated base lending rate and spread and the reset period. These base lending rates are primarily the LIBOR and other short-term rates. Base lending rates may be subject to a floor or minimum rate. The interest rate for senior loans purchased on a when-issued or delayed delivery basis will be determined upon settlement, therefore no interest rate is disclosed. Senior loans often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay cannot be predicted with accuracy. As a result, remaining maturities of senior loans may be less than the stated maturities. Generally, the Fund is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. |
| (p) | The rate shown is the seven-day current annualized yield at October 31, 2023. |
| (q) | 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 October 31, 2023 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, 5.630% | ||||||||
| 214,376,314 | 764,134,202 | (903,073,505) | (2,118) | 75,434,893 | 7,474 | 3,814,672 | 75,457,531 | |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 31 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Abbreviation Legend
| CMO | Collateralized Mortgage Obligation |
| CMT | Constant Maturity Treasury |
| FHLMC | Federal Home Loan Mortgage Corporation |
| SOFR | Secured Overnight Financing Rate |
| STRIPS | Separate Trading of Registered Interest and Principal Securities |
| TBA | To Be Announced |
Currency Legend
| EUR | Euro |
| GBP | British Pound |
| USD | US Dollar |
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. 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.
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.
The Fund’s Board of Trustees
(the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market
quotations are not readily available using 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 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. Representatives of Columbia Management Investment
Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2023:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Asset-Backed Securities — Non-Agency | — | 463,497,635 | 5,766,434 | 469,264,069 |
| Commercial Mortgage-Backed Securities - Agency | — | 2,852,636 | — | 2,852,636 |
| Commercial Mortgage-Backed Securities - Non-Agency | — | 88,915,074 | — | 88,915,074 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 32 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Common Stocks | ||||
| Financials | 255,402 | — | — | 255,402 |
| Industrials | 52,270 | — | — | 52,270 |
| Total Common Stocks | 307,672 | — | — | 307,672 |
| Convertible Bonds | — | 293,150 | — | 293,150 |
| Corporate Bonds & Notes | — | 764,107,392 | 41,069 | 764,148,461 |
| Foreign Government Obligations | — | 53,394,723 | — | 53,394,723 |
| Residential Mortgage-Backed Securities - Agency | — | 1,252,683,478 | — | 1,252,683,478 |
| Residential Mortgage-Backed Securities - Non-Agency | — | 680,966,218 | 28,458,253 | 709,424,471 |
| Senior Loans | — | 3,909,320 | — | 3,909,320 |
| U.S. Treasury Obligations | — | 48,795,898 | — | 48,795,898 |
| Call Option Contracts Purchased | — | 5,217 | — | 5,217 |
| Money Market Funds | 75,434,893 | — | — | 75,434,893 |
| Total Investments in Securities | 75,742,565 | 3,359,420,741 | 34,265,756 | 3,469,429,062 |
| Investments in Derivatives | ||||
| Asset | ||||
| Forward Foreign Currency Exchange Contracts | — | 6,575 | — | 6,575 |
| Futures Contracts | 8,692,138 | — | — | 8,692,138 |
| Swap Contracts | — | 4,180,894 | — | 4,180,894 |
| Liability | ||||
| Futures Contracts | (15,542,576) | — | — | (15,542,576) |
| Put Option Contracts Written | — | (348,396) | — | (348,396) |
| Swap Contracts | — | (4,736,388) | — | (4,736,388) |
| Total | 68,892,127 | 3,358,523,426 | 34,265,756 | 3,461,681,309 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
Forward foreign currency exchange
contracts, futures contracts and swap contracts are valued at unrealized appreciation (depreciation).
The following table is a
reconciliation of Level 3 assets for which significant observable and unobservable inputs were used to determine fair value:
| Balance as of 04/30/2023 ($) | Increase (decrease) in accrued discounts/ premiums ($) | Realized gain (loss) ($) | Change in unrealized appreciation (depreciation)(a) ($) | Purchases ($) | Sales ($) | Transfers into Level 3 ($) | Transfers out of Level 3 ($) | Balance as of 10/31/2023 ($) | |
| Asset-Backed Securities — Non-Agency | 16,858,904 | 45,422 | — | 31,814 | — | (4,187,206) | — | (6,982,500) | 5,766,434 |
| Corporate Bonds & Notes | 41,069 | — | — | — | — | — | — | — | 41,069 |
| Residential Mortgage-Backed Securities — Non-Agency | 51,697,995 | — | 19,720 | 1,075,649 | — | (24,335,111) | — | — | 28,458,253 |
| Total | 68,597,968 | 45,422 | 19,720 | 1,107,463 | — | (28,522,317) | — | (6,982,500) | 34,265,756 |
(a) Change in unrealized
appreciation (depreciation) relating to securities held at October 31, 2023 was $102,552, which is comprised of Asset-Backed Securities — Non-Agency of $31,814 and Residential Mortgage-Backed Securities —
Non-Agency of $70,738.
The Fund’s assets assigned to
the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances.
Certain corporate bonds classified
as Level 3 are valued using a market approach. To determine fair value for these securities, management considered various factors which may have included, but were not limited to, trades of similar securities,
estimated earnings of the respective company, market multiples derived from a set of comparable companies, and the position of the security within the respective company’s capital structure. Significant
increases (decreases) to any of these inputs would have resulted in a significantly higher (lower) fair value measurement. Generally, a change in estimated earnings of the respective company might result in change to
the comparable companies and market multiples.
Certain residential mortgage backed
securities and asset backed securities classified as Level 3 securities are valued using the market approach and utilize single market quotations from broker dealers which may have included, but were not limited to,
observable transactions for identical or similar assets in the market and the distressed nature of the security. The appropriateness of fair values for these securities is monitored on an ongoing basis which may
include results of back testing, manual price reviews and other control procedures. Significant increases (decreases) to any of these inputs would have resulted in a significantly higher (lower) fair value
measurement.
Financial assets were transferred
from Level 3 to Level 2 as observable market inputs were utilized and management determined that there was sufficient, reliable and observable market data to value these assets as of period end.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 33 |
Statement of Assets and Liabilities
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $3,732,895,645) | $3,393,988,952 |
| Affiliated issuers (cost $75,419,159) | 75,434,893 |
| Option contracts purchased (cost $9,086,790) | 5,217 |
| Cash collateral held at broker for: | |
| Swap contracts | 1,630,000 |
| TBA | 6,830,289 |
| Other(a) | 628,000 |
| Margin deposits on: | |
| Swap contracts | 5,534,850 |
| Unrealized appreciation on forward foreign currency exchange contracts | 6,575 |
| Unrealized appreciation on swap contracts | 3,680,987 |
| Upfront payments on swap contracts | 5,337,530 |
| Receivable for: | |
| Investments sold | 2,114,290 |
| Capital shares sold | 15,569,070 |
| Dividends | 304,676 |
| Interest | 19,631,431 |
| Foreign tax reclaims | 7,870 |
| Variation margin for futures contracts | 937,709 |
| Trustees’ fees | 342,851 |
| Expense reimbursement due from Investment Manager | 10,915 |
| Prepaid expenses | 20,995 |
| Other assets | 16,569 |
| Total assets | 3,532,033,669 |
| Liabilities | |
| Option contracts written, at value (premiums received $275,363) | 348,396 |
| Due to custodian | 689 |
| Unrealized depreciation on swap contracts | 4,736,388 |
| Upfront receipts on swap contracts | 6,295,265 |
| Payable for: | |
| Investments purchased | 30,243 |
| Investments purchased on a delayed delivery basis | 785,908,697 |
| Capital shares redeemed | 5,556,254 |
| Distributions to shareholders | 14,270,286 |
| Variation margin for futures contracts | 926,052 |
| Variation margin for swap contracts | 390,710 |
| Management services fees | 35,690 |
| Distribution and/or service fees | 4,368 |
| Transfer agent fees | 318,063 |
| Trustees’ fees | 393,028 |
| Compensation of chief compliance officer | 276 |
| Other expenses | 75,931 |
| Total liabilities | 819,290,336 |
| Net assets applicable to outstanding capital stock | $2,712,743,333 |
| Represented by | |
| Paid in capital | 3,615,107,354 |
| Total distributable earnings (loss) | (902,364,021) |
| Total - representing net assets applicable to outstanding capital stock | $2,712,743,333 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 34 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Statement of Assets and Liabilities (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Class A | |
| Net assets | $550,848,104 |
| Shares outstanding | 19,634,620 |
| Net asset value per share | $28.05 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $28.92 |
| Advisor Class | |
| Net assets | $242,285,178 |
| Shares outstanding | 8,646,755 |
| Net asset value per share | $28.02 |
| Class C | |
| Net assets | $18,456,595 |
| Shares outstanding | 657,822 |
| Net asset value per share | $28.06 |
| Institutional Class | |
| Net assets | $1,260,448,845 |
| Shares outstanding | 44,901,663 |
| Net asset value per share | $28.07 |
| Institutional 2 Class | |
| Net assets | $242,836,983 |
| Shares outstanding | 8,667,595 |
| Net asset value per share | $28.02 |
| Institutional 3 Class | |
| Net assets | $391,275,926 |
| Shares outstanding | 13,938,254 |
| Net asset value per share | $28.07 |
| Class R | |
| Net assets | $6,591,702 |
| Shares outstanding | 234,853 |
| Net asset value per share | $28.07 |
| (a) | Includes collateral related to option contracts purchased, option contracts written, forward foreign currency exchange contracts and swap contracts. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 35 |
Statement of Operations
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $3,814,672 |
| Interest | 79,980,737 |
| Interfund lending | 140 |
| Foreign taxes withheld | (80,607) |
| Total income | 83,714,942 |
| Expenses: | |
| Management services fees | 7,127,103 |
| Distribution and/or service fees | |
| Class A | 758,283 |
| Class C | 93,208 |
| Class R | 15,267 |
| Transfer agent fees | |
| Class A | 375,620 |
| Advisor Class | 163,093 |
| Class C | 11,546 |
| Institutional Class | 830,330 |
| Institutional 2 Class | 74,952 |
| Institutional 3 Class | 13,642 |
| Class R | 3,775 |
| Trustees’ fees | 30,311 |
| Custodian fees | 36,517 |
| Printing and postage fees | 73,275 |
| Registration fees | 114,408 |
| Accounting services fees | 26,028 |
| Legal fees | 24,814 |
| Interest on collateral | 138,639 |
| Compensation of chief compliance officer | 276 |
| Other | 26,457 |
| Total expenses | 9,937,544 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (2,127,397) |
| Fees waived by transfer agent | |
| Institutional 2 Class | (4,520) |
| Institutional 3 Class | (9,242) |
| Expense reduction | (1,477) |
| Total net expenses | 7,794,908 |
| Net investment income | 75,920,034 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 36 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Statement of Operations (continued)
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | $(79,733,271) |
| Investments — affiliated issuers | 7,474 |
| Foreign currency translations | (6,942) |
| Forward foreign currency exchange contracts | 171,055 |
| Futures contracts | (41,911,827) |
| Option contracts purchased | (18,540,408) |
| Option contracts written | 5,102,293 |
| Swap contracts | (2,853,333) |
| Net realized loss | (137,764,959) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (107,361,326) |
| Investments — affiliated issuers | (2,118) |
| Foreign currency translations | (2,945) |
| Forward foreign currency exchange contracts | 16,934 |
| Futures contracts | (21,300,014) |
| Option contracts purchased | 8,926,822 |
| Option contracts written | (4,449,540) |
| Swap contracts | (92,223) |
| Net change in unrealized appreciation (depreciation) | (124,264,410) |
| Net realized and unrealized loss | (262,029,369) |
| Net decrease in net assets resulting from operations | $(186,109,335) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 37 |
Statement of Changes in Net Assets
| Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, 2023 | |
| Operations | ||
| Net investment income | $75,920,034 | $113,204,638 |
| Net realized loss | (137,764,959) | (286,596,696) |
| Net change in unrealized appreciation (depreciation) | (124,264,410) | 62,495,596 |
| Net decrease in net assets resulting from operations | (186,109,335) | (110,896,462) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (14,284,790) | (20,978,581) |
| Advisor Class | (6,538,202) | (10,698,456) |
| Class C | (374,055) | (389,030) |
| Institutional Class | (33,340,120) | (47,006,366) |
| Institutional 2 Class | (6,900,694) | (5,384,392) |
| Institutional 3 Class | (11,815,106) | (12,457,516) |
| Class R | (138,924) | (181,261) |
| Total distributions to shareholders | (73,391,891) | (97,095,602) |
| Increase (decrease) in net assets from capital stock activity | 169,447,365 | (182,861,501) |
| Total decrease in net assets | (90,053,861) | (390,853,565) |
| Net assets at beginning of period | 2,802,797,194 | 3,193,650,759 |
| Net assets at end of period | $2,712,743,333 | $2,802,797,194 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 38 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| October 31, 2023 (Unaudited) | April 30, 2023 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Shares sold | 1,226,362 | 36,472,058 | 2,905,622 | 89,205,065 |
| Distributions reinvested | 466,011 | 13,659,923 | 658,285 | 20,098,093 |
| Shares redeemed | (2,304,792) | (67,776,767) | (4,609,085) | (142,309,477) |
| Net decrease | (612,419) | (17,644,786) | (1,045,178) | (33,006,319) |
| Advisor Class | ||||
| Shares sold | 1,202,288 | 35,704,535 | 2,384,891 | 73,731,809 |
| Distributions reinvested | 220,375 | 6,450,966 | 340,701 | 10,402,385 |
| Shares redeemed | (1,401,048) | (41,105,958) | (5,034,516) | (154,910,307) |
| Net increase (decrease) | 21,615 | 1,049,543 | (2,308,924) | (70,776,113) |
| Class C | ||||
| Shares sold | 219,648 | 6,525,904 | 211,304 | 6,480,416 |
| Distributions reinvested | 12,008 | 351,378 | 12,072 | 368,005 |
| Shares redeemed | (108,891) | (3,194,246) | (186,563) | (5,739,939) |
| Net increase | 122,765 | 3,683,036 | 36,813 | 1,108,482 |
| Institutional Class | ||||
| Shares sold | 9,340,202 | 277,311,031 | 18,265,651 | 562,848,690 |
| Distributions reinvested | 1,079,036 | 31,633,562 | 1,436,661 | 43,885,983 |
| Shares redeemed | (8,099,533) | (238,097,471) | (22,689,272) | (693,946,716) |
| Net increase (decrease) | 2,319,705 | 70,847,122 | (2,986,960) | (87,212,043) |
| Institutional 2 Class | ||||
| Shares sold | 1,392,850 | 41,165,961 | 7,214,082 | 220,022,628 |
| Distributions reinvested | 235,672 | 6,899,660 | 175,765 | 5,378,164 |
| Shares redeemed | (1,901,679) | (55,422,567) | (4,822,569) | (151,546,763) |
| Net increase (decrease) | (273,157) | (7,356,946) | 2,567,278 | 73,854,029 |
| Institutional 3 Class | ||||
| Shares sold | 9,752,987 | 294,403,374 | 5,350,071 | 164,475,815 |
| Distributions reinvested | 277,438 | 8,136,416 | 222,256 | 6,795,490 |
| Shares redeemed | (6,287,963) | (185,767,671) | (7,719,233) | (237,241,565) |
| Net increase (decrease) | 3,742,462 | 116,772,119 | (2,146,906) | (65,970,260) |
| Class R | ||||
| Shares sold | 89,952 | 2,659,467 | 28,342 | 869,254 |
| Distributions reinvested | 4,720 | 137,945 | 5,849 | 178,470 |
| Shares redeemed | (24,324) | (700,135) | (62,951) | (1,907,001) |
| Net increase (decrease) | 70,348 | 2,097,277 | (28,760) | (859,277) |
| Total net increase (decrease) | 5,391,319 | 169,447,365 | (5,912,637) | (182,861,501) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 39 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is
calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be
higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.70 | 0.74 | (2.68) | (1.94) | (0.71) | — | (0.71) |
| Year Ended 4/30/2023 | $32.85 | 1.24 | (2.34) | (1.10) | (1.05) | — | (1.05) |
| Year Ended 4/30/2022 | $37.76 | 0.91 | (4.87) | (3.96) | (0.87) | (0.08) | (0.95) |
| Year Ended 4/30/2021(e) | $36.96 | 1.16 | 2.64 | 3.80 | (1.13) | (1.87) | (3.00) |
| Year Ended 4/30/2020(e) | $36.19 | 1.12 | 1.17 | 2.29 | (1.04) | (0.48) | (1.52) |
| Year Ended 4/30/2019(e) | $35.33 | 1.12 | 0.74 | 1.86 | (1.00) | — | (1.00) |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.66 | 0.77 | (2.66) | (1.89) | (0.75) | — | (0.75) |
| Year Ended 4/30/2023 | $32.81 | 1.30 | (2.32) | (1.02) | (1.13) | — | (1.13) |
| Year Ended 4/30/2022 | $37.71 | 0.98 | (4.84) | (3.86) | (0.96) | (0.08) | (1.04) |
| Year Ended 4/30/2021(e) | $36.91 | 1.26 | 2.64 | 3.90 | (1.23) | (1.87) | (3.10) |
| Year Ended 4/30/2020(e) | $36.16 | 1.20 | 1.15 | 2.35 | (1.12) | (0.48) | (1.60) |
| Year Ended 4/30/2019(e) | $35.29 | 1.24 | 0.75 | 1.99 | (1.12) | — | (1.12) |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.70 | 0.62 | (2.66) | (2.04) | (0.60) | — | (0.60) |
| Year Ended 4/30/2023 | $32.85 | 1.01 | (2.34) | (1.33) | (0.82) | — | (0.82) |
| Year Ended 4/30/2022 | $37.77 | 0.64 | (4.89) | (4.25) | (0.59) | (0.08) | (0.67) |
| Year Ended 4/30/2021(e) | $36.96 | 0.87 | 2.65 | 3.52 | (0.84) | (1.87) | (2.71) |
| Year Ended 4/30/2020(e) | $36.19 | 0.84 | 1.17 | 2.01 | (0.76) | (0.48) | (1.24) |
| Year Ended 4/30/2019(e) | $35.33 | 0.84 | 0.78 | 1.62 | (0.76) | — | (0.76) |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.72 | 0.77 | (2.67) | (1.90) | (0.75) | — | (0.75) |
| Year Ended 4/30/2023 | $32.87 | 1.31 | (2.33) | (1.02) | (1.13) | — | (1.13) |
| Year Ended 4/30/2022 | $37.78 | 1.01 | (4.87) | (3.86) | (0.97) | (0.08) | (1.05) |
| Year Ended 4/30/2021(e) | $36.98 | 1.26 | 2.64 | 3.90 | (1.23) | (1.87) | (3.10) |
| Year Ended 4/30/2020(e) | $36.21 | 1.24 | 1.13 | 2.37 | (1.12) | (0.48) | (1.60) |
| Year Ended 4/30/2019(e) | $35.34 | 1.20 | 0.79 | 1.99 | (1.12) | — | (1.12) |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.66 | 0.78 | (2.66) | (1.88) | (0.76) | — | (0.76) |
| Year Ended 4/30/2023 | $32.81 | 1.35 | (2.35) | (1.00) | (1.15) | — | (1.15) |
| Year Ended 4/30/2022 | $37.71 | 1.03 | (4.86) | (3.83) | (0.99) | (0.08) | (1.07) |
| Year Ended 4/30/2021(e) | $36.91 | 1.28 | 2.64 | 3.92 | (1.25) | (1.87) | (3.12) |
| Year Ended 4/30/2020(e) | $36.15 | 1.24 | 1.16 | 2.40 | (1.16) | (0.48) | (1.64) |
| Year Ended 4/30/2019(e) | $35.29 | 1.28 | 0.70 | 1.98 | (1.12) | — | (1.12) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 40 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.05 | (6.40%) | 0.89%(c) | 0.74%(c),(d) | 4.90% | 125% | $550,848 |
| Year Ended 4/30/2023 | $30.70 | (3.27%) | 0.90%(c) | 0.75%(c),(d) | 4.02% | 247% | $621,570 |
| Year Ended 4/30/2022 | $32.85 | (10.72%) | 0.87%(c) | 0.74%(c),(d) | 2.48% | 173% | $699,471 |
| Year Ended 4/30/2021(e) | $37.76 | 10.36% | 0.88%(c) | 0.74%(c),(d) | 3.00% | 295% | $786,976 |
| Year Ended 4/30/2020(e) | $36.96 | 6.34% | 0.90%(c) | 0.74%(c),(d) | 3.05% | 272% | $694,852 |
| Year Ended 4/30/2019(e) | $36.19 | 5.45% | 0.91%(c) | 0.86%(c),(d) | 3.19% | 262% | $681,416 |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.02 | (6.26%) | 0.64%(c) | 0.49%(c),(d) | 5.16% | 125% | $242,285 |
| Year Ended 4/30/2023 | $30.66 | (3.04%) | 0.64%(c) | 0.50%(c),(d) | 4.24% | 247% | $264,456 |
| Year Ended 4/30/2022 | $32.81 | (10.49%) | 0.62%(c) | 0.49%(c),(d) | 2.69% | 173% | $358,749 |
| Year Ended 4/30/2021(e) | $37.71 | 10.62% | 0.63%(c) | 0.49%(c),(d) | 3.27% | 295% | $159,565 |
| Year Ended 4/30/2020(e) | $36.91 | 6.61% | 0.65%(c) | 0.49%(c),(d) | 3.32% | 272% | $93,369 |
| Year Ended 4/30/2019(e) | $36.16 | 5.72% | 0.66%(c) | 0.61%(c),(d) | 3.53% | 262% | $15,272 |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.06 | (6.72%) | 1.64%(c) | 1.50%(c),(d) | 4.16% | 125% | $18,457 |
| Year Ended 4/30/2023 | $30.70 | (3.99%) | 1.65%(c) | 1.50%(c),(d) | 3.28% | 247% | $16,428 |
| Year Ended 4/30/2022 | $32.85 | (11.42%) | 1.62%(c) | 1.49%(c),(d) | 1.73% | 173% | $16,370 |
| Year Ended 4/30/2021(e) | $37.77 | 9.57% | 1.63%(c) | 1.49%(c),(d) | 2.25% | 295% | $20,492 |
| Year Ended 4/30/2020(e) | $36.96 | 5.55% | 1.65%(c) | 1.50%(c),(d) | 2.30% | 272% | $20,696 |
| Year Ended 4/30/2019(e) | $36.19 | 4.66% | 1.66%(c) | 1.61%(c),(d) | 2.37% | 262% | $18,905 |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.07 | (6.27%) | 0.64%(c) | 0.49%(c),(d) | 5.16% | 125% | $1,260,449 |
| Year Ended 4/30/2023 | $30.72 | (3.02%) | 0.65%(c) | 0.50%(c),(d) | 4.26% | 247% | $1,307,981 |
| Year Ended 4/30/2022 | $32.87 | (10.49%) | 0.62%(c) | 0.49%(c),(d) | 2.75% | 173% | $1,497,858 |
| Year Ended 4/30/2021(e) | $37.78 | 10.70% | 0.63%(c) | 0.49%(c),(d) | 3.26% | 295% | $1,062,540 |
| Year Ended 4/30/2020(e) | $36.98 | 6.61% | 0.65%(c) | 0.49%(c),(d) | 3.30% | 272% | $710,558 |
| Year Ended 4/30/2019(e) | $36.21 | 5.60% | 0.66%(c) | 0.61%(c),(d) | 3.42% | 262% | $949,377 |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.02 | (6.22%) | 0.57%(c) | 0.42%(c) | 5.23% | 125% | $242,837 |
| Year Ended 4/30/2023 | $30.66 | (2.96%) | 0.57%(c) | 0.42%(c) | 4.40% | 247% | $274,094 |
| Year Ended 4/30/2022 | $32.81 | (10.43%) | 0.55%(c) | 0.42%(c) | 2.80% | 173% | $209,091 |
| Year Ended 4/30/2021(e) | $37.71 | 10.69% | 0.57%(c) | 0.43%(c) | 3.33% | 295% | $155,945 |
| Year Ended 4/30/2020(e) | $36.91 | 6.69% | 0.57%(c) | 0.42%(c) | 3.38% | 272% | $84,295 |
| Year Ended 4/30/2019(e) | $36.15 | 5.81% | 0.58%(c) | 0.53%(c) | 3.64% | 262% | $80,083 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 41 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.72 | 0.79 | (2.67) | (1.88) | (0.77) | — | (0.77) |
| Year Ended 4/30/2023 | $32.87 | 1.35 | (2.33) | (0.98) | (1.17) | — | (1.17) |
| Year Ended 4/30/2022 | $37.79 | 1.05 | (4.88) | (3.83) | (1.01) | (0.08) | (1.09) |
| Year Ended 4/30/2021(e) | $36.98 | 1.29 | 2.66 | 3.95 | (1.27) | (1.87) | (3.14) |
| Year Ended 4/30/2020(e) | $36.21 | 1.24 | 1.17 | 2.41 | (1.16) | (0.48) | (1.64) |
| Year Ended 4/30/2019(e) | $35.35 | 1.28 | 0.74 | 2.02 | (1.16) | — | (1.16) |
| Class R | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $30.71 | 0.70 | (2.67) | (1.97) | (0.67) | — | (0.67) |
| Year Ended 4/30/2023 | $32.87 | 1.15 | (2.33) | (1.18) | (0.98) | — | (0.98) |
| Year Ended 4/30/2022 | $37.78 | 0.82 | (4.87) | (4.05) | (0.78) | (0.08) | (0.86) |
| Year Ended 4/30/2021(e) | $36.97 | 1.06 | 2.66 | 3.72 | (1.04) | (1.87) | (2.91) |
| Year Ended 4/30/2020(e) | $36.20 | 1.04 | 1.17 | 2.21 | (0.96) | (0.48) | (1.44) |
| Year Ended 4/30/2019(e) | $35.33 | 1.04 | 0.75 | 1.79 | (0.92) | — | (0.92) |
| 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) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Ratios include interest on collateral expense. For the periods indicated below, if interest on collateral expense had been excluded, expenses would have been lower by: |
| Class | 10/31/2023 | 4/30/2023 | 4/30/2022 | 4/30/2021 | 4/30/2020 | 4/30/2019 |
| Class A | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| Advisor Class | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| Class C | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| Institutional Class | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| Institutional 2 Class | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| Institutional 3 Class | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| Class R | 0.01% | 0.01% | less than 0.01% | less than 0.01% | less than 0.01% | less than 0.01% |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Per share amounts have been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 42 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.07 | (6.22%) | 0.52%(c) | 0.37%(c) | 5.29% | 125% | $391,276 |
| Year Ended 4/30/2023 | $30.72 | (2.90%) | 0.52%(c) | 0.37%(c) | 4.38% | 247% | $313,215 |
| Year Ended 4/30/2022 | $32.87 | (10.41%) | 0.50%(c) | 0.37%(c) | 2.85% | 173% | $405,759 |
| Year Ended 4/30/2021(e) | $37.79 | 10.73% | 0.52%(c) | 0.38%(c) | 3.32% | 295% | $354,336 |
| Year Ended 4/30/2020(e) | $36.98 | 6.86% | 0.53%(c) | 0.37%(c) | 3.42% | 272% | $525,287 |
| Year Ended 4/30/2019(e) | $36.21 | 5.73% | 0.53%(c) | 0.49%(c) | 3.56% | 262% | $258,172 |
| Class R | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $28.07 | (6.48%) | 1.14%(c) | 0.99%(c),(d) | 4.69% | 125% | $6,592 |
| Year Ended 4/30/2023 | $30.71 | (3.54%) | 1.15%(c) | 1.00%(c),(d) | 3.75% | 247% | $5,052 |
| Year Ended 4/30/2022 | $32.87 | (10.94%) | 1.12%(c) | 0.99%(c),(d) | 2.24% | 173% | $6,352 |
| Year Ended 4/30/2021(e) | $37.78 | 10.15% | 1.13%(c) | 0.99%(c),(d) | 2.76% | 295% | $4,752 |
| Year Ended 4/30/2020(e) | $36.97 | 6.08% | 1.15%(c) | 1.00%(c),(d) | 2.79% | 272% | $2,501 |
| Year Ended 4/30/2019(e) | $36.20 | 5.19% | 1.16%(c) | 1.11%(c),(d) | 2.97% | 262% | $2,380 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 43 |
Notes to Financial Statements
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 1. Organization
Columbia Total Return Bond Fund
(the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class,
Institutional 3 Class and Class R shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also
described in the Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on
any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Debt securities generally are
valued based on prices obtained from pricing services, which are intended to reflect market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing
techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes.
Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities
maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Asset- and mortgage-backed
securities are generally valued by pricing services, which utilize pricing models that incorporate the securities’ cash flow and loan performance data. These models also take into account available market data,
including trades, market quotations, and benchmark yield curves for identical or similar securities. Factors used to identify similar securities may include, but are not limited to, issuer, collateral type, vintage,
prepayment speeds, collateral performance, credit ratings, credit enhancement and expected life. Asset-backed securities for which quotations are readily available may also be valued based upon an over-the-counter or
exchange bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management
believes does not approximate fair value.
| 44 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Senior loan securities for which
reliable market quotations are readily available are generally valued by pricing services at the average of the bids received.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Forward foreign currency exchange
contracts are marked-to-market based upon foreign currency exchange rates provided by a pricing service.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Option contracts are valued at the
mean of the latest quoted bid and ask prices on their primary exchanges. Option contracts, including over-the-counter option contracts, with no readily available market quotations are valued using mid-market
evaluations from independent third-party vendors.
Swap transactions are valued
through an independent pricing service or broker, or if neither is available, through an internal model based upon observable inputs.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if
available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Foreign currency transactions and
translations
The values of all assets and
liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains
(losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes,
the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations
are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 45 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
sell or terminate, including at favorable prices)
and the potential for market movements which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if
applicable, are not recorded in the financial statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty provides some protection in the case of clearing member default. The clearinghouse or central counterparty stands between the buyer and the seller of the
contract; therefore, failure of the clearinghouse or central counterparty may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with
respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker
becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the central
counterparty or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to
the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may
impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or central counterparty for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the
minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific
margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such
agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum
transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the
risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker or receive interest income on cash collateral pledged to the broker. The Fund attempts
to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those
counterparties.
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination
rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk,
whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
| 46 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Forward foreign currency exchange
contracts
Forward foreign currency exchange
contracts are over-the-counter agreements between two parties to buy and sell a currency at a set price on a future date. The Fund utilized forward foreign currency exchange contracts to shift foreign currency
exposure back to U.S. dollars. These instruments may be used for other purposes in future periods.
The values of forward foreign
currency exchange contracts fluctuate daily with changes in foreign currency exchange rates. Changes in the value of these contracts are recorded as unrealized appreciation or depreciation until the contract is
exercised or has expired. The Fund will realize a gain or loss when the forward foreign currency exchange contract is closed or expires. Non-deliverable forward foreign currency exchange contracts are settled with the
counterparty in U.S. dollars without delivery of foreign currency.
The use of forward foreign currency
exchange contracts does not eliminate fluctuations in the prices of the Fund’s portfolio securities. The risks of forward foreign currency exchange contracts include movement in the values of the foreign
currencies relative to the U.S. dollar (or other foreign currencies) and the possibility that counterparties will not complete their contractual obligations, which may be in excess of the amount reflected, if any, in
the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss
when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Options contracts
Options are contracts which entitle
the holder to purchase or sell securities or other identified assets at a specified price, or in the case of index option contracts, to receive or pay the difference between the index value and the strike price of the
index option contract. Option contracts can be either exchange-traded or over-the-counter. The Fund purchased and has written option contracts to manage exposure to fluctuations in interest rates and to manage
convexity risk. These instruments may be used for other purposes in future periods. Completion of transactions for option contracts traded in the over-the-counter market depends upon the performance of the other
party. Collateral may be collected or posted by the Fund to secure over-the-counter option contract trades. Collateral held or posted by the Fund for such option contract trades must be returned to the broker or the
Fund upon closure, exercise or expiration of the contract.
Options contracts purchased are
recorded as investments. When the Fund writes an options contract, the premium received is recorded as an asset and an amount equivalent to the premium is recorded as a liability in the Statement of Assets and
Liabilities and is subsequently adjusted to reflect the current fair value of the option written. Changes in the fair value of the written option are recorded as unrealized appreciation or depreciation until the
contract is exercised or has expired. The Fund realizes a gain or loss when the option contract is closed or expires. When option contracts are exercised, the proceeds on sales for a written call or purchased put
option contract, or the purchase cost for a written put or purchased call option contract, is adjusted by the amount of premium received or paid.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 47 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
For over-the-counter options
purchased, the Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the
contracts. Option contracts written by the Fund do not typically give rise to significant counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform. The risk in
writing a call option contract is that the Fund gives up the opportunity for profit if the market price of the security increases above the strike price and the option contract is exercised. The risk in writing a put
option contract is that the Fund may incur a loss if the market price of the security decreases below the strike price and the option contract is exercised. Exercise of a written option could result in the Fund
purchasing or selling a security or foreign currency when it otherwise would not, or at a price different from the current market value. In purchasing and writing options, the Fund bears the risk of an unfavorable
change in the value of the underlying instrument or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market.
Interest rate swaption contracts
Interest rate swaption contracts
entered into by the Fund typically represent an option that gives the purchaser the right, but not the obligation, to enter into an interest rate swap contract on a future date. Each interest rate swaption contract
will specify if the buyer is entitled to receive the fixed or floating rate if the interest rate is exercised. Changes in the value of a purchased interest rate swaption contracts are reported as unrealized
appreciation or depreciation on options in the Statement of Assets and Liabilities. Gain or loss is recognized in the Statement of Operations when the interest rate swaption contract is closed or expires.
When the Fund writes an interest
rate swaption contract, the premium received is recorded as an asset and an amount equivalent to the premium is recorded as a liability in the Statement of Assets and Liabilities and is subsequently adjusted to
reflect the current fair value of the interest rate swaption contract written. Premiums received from writing interest rate swaption contracts that expire unexercised are recorded by the Fund on the expiration date as
realized gains from options written in the Statement of Operations. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also recorded
as realized gain, or if the premium is less than the amount paid for the closing purchase, as realized loss. These amounts are reflected as net realized gain (loss) on options written in the Statement of
Operations.
Swap contracts
Swap contracts are negotiated in
the over-the-counter market and are entered into bilaterally or centrally cleared (centrally cleared swap contract). In a centrally cleared swap contract, immediately following execution of the swap contract with a
broker, the swap contract is novated to a central counterparty and the central counterparty becomes the Fund’s counterparty to the centrally cleared swap contract. The Fund is required to deposit initial
margin with the futures commission merchant (FCM), which pledges it through to the central counterparty in the form of cash or securities in an amount that varies depending on the size and risk profile of the
particular swap contract. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is recorded in the Statement of Assets and Liabilities as margin deposits. For a
bilateral swap contract, the Fund has credit exposure to the broker, but exchanges daily variation margin with the broker based on the mark-to-market value of the swap contract to minimize that exposure. For centrally
cleared swap contracts, the Fund has minimal credit exposure to the FCM because the central counterparty stands between the Fund and the relevant buyer/seller on the other side of the contract. Swap contracts are
marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swap contracts, if any, is recorded as a receivable or payable for
variation margin in the Statement of Assets and Liabilities.
Entering into these contracts
involves, to varying degrees, elements of interest, liquidity and counterparty credit risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there
may be unfavorable changes in interest rates, market conditions or other conditions, that it may be difficult to initiate a swap transaction or liquidate a position at an advantageous time or price which may result in
significant losses, and that the bilateral counterparty, FCM or central counterparty, as applicable, may not fulfill its obligation under the contract.
| 48 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Credit default swap contracts
The Fund entered into credit
default swap contracts to manage credit risk exposure. These instruments may be used for other purposes in future periods. Credit default swap contracts are transactions in which one party pays fixed periodic payments
to a counterparty in consideration for an agreement from the counterparty to make a specific payment should a specified credit event(s) take place. Although specified credit events are contract specific, credit events
are typically bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium.
As the purchaser of a credit
default swap contract, the Fund purchases protection by paying a periodic interest rate on the notional amount to the counterparty. The interest amount is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as a realized loss upon payment. If a credit event as specified in the contract occurs, the Fund may have the option either to deliver the reference obligation to the seller in exchange
for a cash payment of its par amount, or to receive a net cash settlement equal to the par amount less an agreed-upon value of the reference obligation as of the date of the credit event. The difference between the
value of the obligation or cash delivered and the notional amount received will be recorded as a realized gain (loss).
As the seller of a credit default
swap contract, the Fund sells protection to a buyer and will generally receive a periodic interest rate on a notional amount. The interest amount is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as a realized gain upon receipt of the payment. If a credit event as specified in the contract with the counterparty occurs, the Fund may either be required to accept the reference
obligation from the buyer in exchange for a cash payment of its notional amount, or to pay the buyer a net cash settlement equal to the notional amount less an agreed-upon value of the reference obligation (recovery
value) as of the date of the credit event. The difference between the value of the obligation or cash received and the notional amount paid will be recorded as a realized gain (loss). The maximum potential amount of
undiscounted future payments the Fund could be required to make as the seller of protection under a credit default swap contract is equal to the notional amount of the reference obligation. These potential amounts may
be partially offset by any recovery values of the respective reference obligations or upfront receipts upon entering into the agreement. The notional amounts and market values of all credit default swap contracts in
which the Fund is the seller of protection, if any, are disclosed in the Credit Default Swap Contracts Outstanding schedule following the Portfolio of Investments.
As a protection seller, the Fund
bears the risk of loss from the credit events specified in the contract with the counterparty. For credit default swap contracts on credit indices, quoted market prices and resulting market values serve as an
indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s
credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract.
Any upfront payment or receipt by
the Fund upon entering into a credit default swap contract is recorded as an asset or liability, respectively, and amortized daily as a component of realized gain (loss) in the Statement of Operations. Credit default
swap contracts are valued daily, and the change in value is recorded as unrealized appreciation (depreciation) until the termination of the swap, at which time a realized gain (loss) is recorded.
Credit default swap contracts can
involve greater risks than if a fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to counterparty credit risk, leverage risk, hedging
risk, correlation risk and liquidity risk.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 49 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at October 31, 2023:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Credit risk | Component of total distributable earnings (loss) — unrealized appreciation on swap contracts | 4,180,894* |
| Credit risk | Upfront payments on swap contracts | 5,337,530 |
| Foreign exchange risk | Unrealized appreciation on forward foreign currency exchange contracts | 6,575 |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 8,692,138* |
| Interest rate risk | Investments, at value — Option contracts purchased | 5,217 |
| Total | 18,222,354 |
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Credit risk | Component of total distributable earnings (loss) — unrealized depreciation on swap contracts | 4,736,388* |
| Credit risk | Upfront receipts on swap contracts | 6,295,265 |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 15,542,576* |
| Interest rate risk | Option contracts written, at value | 348,396 |
| Total | 26,922,625 |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin for futures and centrally cleared swaps, if any, is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended October 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income | ||||||
| Risk exposure category | Forward foreign currency exchange contracts ($) | Futures contracts ($) | Option contracts purchased ($) | Option contracts written ($) | Swap contracts ($) | Total ($) |
| Credit risk | — | — | — | — | (2,853,333) | (2,853,333) |
| Foreign exchange risk | 171,055 | — | — | — | — | 171,055 |
| Interest rate risk | — | (41,911,827) | (18,540,408) | 5,102,293 | — | (55,349,942) |
| Total | 171,055 | (41,911,827) | (18,540,408) | 5,102,293 | (2,853,333) | (58,032,220) |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | ||||||
| Risk exposure category | Forward foreign currency exchange contracts ($) | Futures contracts ($) | Option contracts purchased ($) | Option contracts written ($) | Swap contracts ($) | Total ($) |
| Credit risk | — | — | — | — | (92,223) | (92,223) |
| Foreign exchange risk | 16,934 | — | — | — | — | 16,934 |
| Interest rate risk | — | (21,300,014) | 8,926,822 | (4,449,540) | — | (16,822,732) |
| Total | 16,934 | (21,300,014) | 8,926,822 | (4,449,540) | (92,223) | (16,898,021) |
| 50 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The following table is a summary
of the average daily outstanding volume by derivative instrument for the six months ended October 31, 2023:
| Derivative instrument | Average notional amounts ($) |
| Futures contracts — long | 1,160,390,729 |
| Futures contracts — short | 604,157,126 |
| Credit default swap contracts — buy protection | 220,788,827 |
| Credit default swap contracts — sell protection | 39,709,677 |
| Derivative instrument | Average value ($) |
| Option contracts purchased | 3,966,555 |
| Option contracts written | (387,844) |
| Derivative instrument | Average unrealized appreciation ($) | Average unrealized depreciation ($) |
| Forward foreign currency exchange contracts | 34,711 | (20,898) |
Investments in senior loans
The Fund may invest in senior loan
assignments. When the Fund purchases an assignment of a senior loan, the Fund typically has direct rights against the borrower; provided, however, that the Fund’s rights may be more limited than the lender from
which it acquired the assignment and the Fund may be able to enforce its rights only through an administrative agent. Although certain senior loan assignments are secured by collateral, the Fund could experience
delays or limitations in realizing such collateral or have its interest subordinated to other indebtedness of the obligor. In the event that the administrator or collateral agent of a loan becomes insolvent or enters
into receivership or bankruptcy, the Fund may incur costs and delays in realizing payment or may suffer a loss of principal and/or interest. The risk of loss is greater for unsecured or subordinated loans. In
addition, senior loan assignments are vulnerable to market, economic or other conditions or events that may reduce the demand for senior loan assignments and certain senior loan assignments which were liquid when
purchased, may become illiquid.
The Fund may enter into senior loan
assignments where all or a portion of the loan may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are generally traded and priced in the
same manner as other senior loan securities and are disclosed as unfunded senior loan commitments in the Fund’s Portfolio of Investments with a corresponding payable for investments purchased. The Fund
designates cash or liquid securities to cover these commitments.
Asset- and mortgage-backed
securities
The Fund may invest in asset-backed
and mortgage-backed securities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. All, or a portion,
of the obligation may be prepaid at any time because the underlying asset may be prepaid. As a result, decreasing market interest rates could result in an increased level of prepayment. An increased prepayment rate
will have the effect of shortening the maturity of the security. Unless otherwise noted, the coupon rates presented are fixed rates.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 51 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
To be announced securities
The Fund may trade securities on a
To Be Announced (TBA) basis. As with other delayed-delivery transactions, a seller agrees to issue a TBA security at a future date. However, the seller does not specify the particular securities to be delivered.
Instead, the Fund agrees to accept any security that meets specified terms.
In some cases, Master Securities
Forward Transaction Agreements (MSFTAs) may be used to govern transactions of certain forward-settling agency mortgage-backed securities, such as delayed-delivery and TBAs, between the Fund and counterparty. The MSFTA
maintains provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral relating to such transactions.
Mortgage dollar roll transactions
The Fund may enter into mortgage
“dollar rolls” in which the Fund sells securities for delivery in the current month and simultaneously contracts with the same counterparty to repurchase similar but not identical securities (same type,
coupon and maturity) on a specified future date. These transactions may increase the Fund’s portfolio turnover rate. During the roll period, the Fund loses the right to receive principal and interest paid on the
securities sold. However, the Fund may benefit because it receives negotiated amounts in the form of reductions of the purchase price for the future purchase plus the interest earned on the cash proceeds of the
securities sold until the settlement date of the forward purchase. The Fund records the incremental difference between the forward purchase and sale of each forward roll as a realized gain or loss. Unless any realized
gains exceed the income, capital appreciation, and gain or loss due to mortgage prepayments that would have been realized on the securities sold as part of the mortgage dollar roll, the use of this technique may
diminish the investment performance of the Fund compared to what the performance would have been without the use of mortgage dollar rolls. Mortgage dollar rolls involve the risk that the market value of the securities
the Fund is obligated to repurchase may decline below the repurchase price, or that the counterparty may default on its obligations. All cash proceeds will be invested in instruments that are permissible investments
for the Fund. The Fund identifies cash or liquid securities in an amount equal to the forward purchase price. The Fund does not currently enter into mortgage dollar rolls that are accounted for as financing
transactions.
Interest only and principal only
securities
The Fund may invest in Interest
Only (IO) or Principal Only (PO) securities. IOs are stripped securities entitled to receive all of the security’s interest, but none of its principal. IOs are particularly sensitive to changes in interest rates
and therefore subject to greater fluctuations in price than typical interest bearing debt securities. IOs are also subject to credit risk because the Fund may not receive all or part of the interest payments if the
issuer, obligor, guarantor or counterparty defaults on its obligation. Payments received for IOs are included in interest income in the Statement of Operations. Because no principal will be received at the maturity of
an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income in the Statement of Operations. POs are stripped securities entitled to
receive the principal from the underlying obligation, but not the interest. POs are particularly sensitive to changes in interest rates and therefore are subject to fluctuations in price. POs are also subject to
credit risk because the Fund may not receive all or part of its principal if the issuer, obligor, guarantor or counterparty defaults on its obligation. The Fund may also invest in IO or PO stripped mortgage-backed
securities. Payments received for POs are treated as reductions to the cost and par value of the securities.
| 52 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Offsetting of assets and
liabilities
The following table presents the
Fund’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Fund as of October 31, 2023:
| Citi ($)(a) | Citi ($)(a) | Goldman Sachs International ($) | JPMorgan ($) | Morgan Stanley ($)(a) | Morgan Stanley ($)(a) | Total ($) | |
| Assets | |||||||
| Forward foreign currency exchange contracts | 6,575 | - | - | - | - | - | 6,575 |
| Call option contracts purchased | 1,224 | - | - | - | 3,993 | - | 5,217 |
| OTC credit default swap contracts (b) | - | 3,619,834 | 418,029 | 3,051,048 | 1,929,606 | - | 9,018,517 |
| Total assets | 7,799 | 3,619,834 | 418,029 | 3,051,048 | 1,933,599 | - | 9,030,309 |
| Liabilities | |||||||
| Centrally cleared credit default swap contracts (c) | - | - | - | - | - | 390,710 | 390,710 |
| Put option contracts written | 348,396 | - | - | - | - | - | 348,396 |
| OTC credit default swap contracts (b) | - | 3,646,082 | - | 4,936,909 | 2,448,662 | - | 11,031,653 |
| Total liabilities | 348,396 | 3,646,082 | - | 4,936,909 | 2,448,662 | 390,710 | 11,770,759 |
| Total financial and derivative net assets | (340,597) | (26,248) | 418,029 | (1,885,861) | (515,063) | (390,710) | (2,740,450) |
| Total collateral received (pledged) (d) | (340,597) | - | 418,029 | (1,630,000) | (247,000) | (390,710) | (2,190,278) |
| Net amount (e) | - | (26,248) | - | (255,861) | (268,063) | - | (550,172) |
| (a) | Exposure can only be netted across transactions governed under the same master agreement with the same legal entity. |
| (b) | Over-the-Counter (OTC) swap contracts are presented at market value plus periodic payments receivable (payable), which is comprised of unrealized appreciation, unrealized depreciation, upfront payments and upfront receipts. |
| (c) | Centrally cleared swaps are included within payable/receivable for variation margin in the Statement of Assets and Liabilities. |
| (d) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| (e) | Represents the net amount due from/(to) counterparties in the event of default. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
The trade date for senior loans
purchased in the primary market is the date on which the loan is allocated. The trade date for senior loans purchased in the secondary market is the date on which the transaction is entered into.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted. The
Fund classifies gains and losses realized on prepayments received on mortgage-backed securities as adjustments to interest income. For convertible securities, premiums attributable to the conversion feature are
not amortized.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. The Fund may also adjust
accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. A defaulted debt security is removed from non-accrual status when the issuer resumes interest
payments or when collectability of interest is reasonably assured.
Corporate actions and dividend
income are recorded on the ex-dividend date.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 53 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
capital is recorded as a realized gain. With
respect to REITs, to the extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned
subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could
result in a proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
The value of additional securities
received as an income payment through a payment-in-kind, if any, is recorded as interest income and increases the cost basis of such securities.
The Fund may receive other income
from senior loans, including amendment fees, consent fees and commitment fees. These fees are recorded as income when received by the Fund. These amounts are included in Interest Income in the Statement of
Operations.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
| 54 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and
regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and
Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will,
among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data
format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month
transition period after the effective date of the amendments.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.50% to 0.34% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended October 31, 2023 was 0.48% of the
Fund’s average daily net assets.
Compensation of Board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. The Transfer Agent pays the fees of SS&C GIDS for
services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 55 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, prior to September 1, 2023, Institutional 2 Class shares were
subject to a contractual transfer agency fee annual limitation of not more than 0.05% and Institutional 3 Class shares were subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the
average daily net assets attributable to each share class.
For the six months
ended October 31, 2023, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.12 |
| Advisor Class | 0.12 |
| Class C | 0.12 |
| Institutional Class | 0.12 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
| Class R | 0.12 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended October 31, 2023, these minimum account balance fees reduced total
expenses of the Fund by $1,477.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a
monthly distribution fee to the Distributor at the maximum annual rates of 0.10%, 0.75% and 0.50% of the average daily net assets attributable to Class A, Class C and Class R shares of the Fund,
respectively.
Although the Fund may pay
distribution and service fees up to a maximum annual rate of 0.35% of the Fund’s average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for
shareholder services), the Fund currently limits such fees to an aggregate fee of not more than 0.25% of the Fund’s average daily net assets attributable to Class A shares.
| 56 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended October 31, 2023, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.50 - 1.00(a) | 191,254 |
| Class C | — | 1.00(b) | 1,025 |
| (a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| September 1, 2023 through August 31, 2024 | Prior to September 1, 2023 | |
| Class A | 0.74% | 0.74% |
| Advisor Class | 0.49 | 0.49 |
| Class C | 1.49 | 1.49 |
| Institutional Class | 0.49 | 0.49 |
| Institutional 2 Class | 0.41 | 0.42 |
| Institutional 3 Class | 0.37 | 0.37 |
| Class R | 0.99 | 0.99 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have
voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share
class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Reflected in the contractual cap commitment, prior to September 1, 2023, is the Transfer
Agent’s contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.05% for Institutional 2 Class and 0.00% for Institutional 3 Class of the average daily net assets
attributable to each share class. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future
periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 57 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
At October 31, 2023, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized (depreciation) ($) |
| 3,816,168,000 | 27,102,000 | (382,547,000) | (355,445,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at April 30, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (188,894,279) | (199,328,142) | (388,222,421) |
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $4,503,476,612 and $4,103,970,351, respectively, for the six months ended October 31, 2023, of which
$3,752,109,310 and $3,444,079,405, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject, by October 2,
2024, to a liquidity fee if daily net redemptions exceed 5% of net assets and, by April 2, 2024, to a discretionary liquidity fee up to 2% if the imposition of such a fee is determined to be in the best interest of
the Affiliated MMF.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
| 58 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The Fund’s activity in the
Interfund Program during the six months ended October 31, 2023 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Lender | 450,000 | 5.60 | 2 |
Interest income earned by the Fund
is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at October 31, 2023.
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the
higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility
matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee
is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each
participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in
each case, 1.00%.
The Fund had no borrowings during
the six months ended October 31, 2023.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency,
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
High-yield investments risk
Securities and other debt
instruments held by the Fund that are rated below investment grade (commonly called "high-yield" or "junk" bonds) and unrated debt instruments of comparable quality expose the Fund to a greater risk of loss of
principal and income than a fund that invests solely or primarily in investment grade debt instruments. In addition, these investments have greater price fluctuations, are less liquid and are more likely to experience
a default than higher-rated debt instruments. High-yield debt instruments are considered to be predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 59 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by
governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may
negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt
security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Leverage risk
Leverage occurs when the Fund
increases its assets available for investment using borrowings, derivatives, or similar instruments or techniques. The use of leverage may produce volatility and may exaggerate changes in the Fund’s net asset
value and in the return on the Fund’s portfolio, which may increase the risk that the Fund will lose more than it has invested. If the Fund uses leverage, through the purchase of particular instruments such as
derivatives, the Fund may experience capital losses that exceed the net assets of the Fund. Leverage can create an interest expense that may lower the Fund’s overall returns. Leverage presents the opportunity
for increased net income and capital gains, but may also exaggerate the Fund’s volatility and risk of loss. There can be no guarantee that a leveraging strategy will be successful.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and
financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may
be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events –
could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of
Russian currency. The extent and duration of the military action are impossible to predict but could continue to be significant. Market disruption caused by the Russian military action, and any counter measures or
responses thereto (including international sanctions, a downgrade in a country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences,
cyberattacks and espionage) could continue to have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced
market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain
international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
| 60 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Mortgage- and other asset-backed
securities risk
The value of any mortgage-backed
and other asset-backed securities including collateralized debt obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the
interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements;
or the market’s assessment of the quality of underlying assets. Payment of principal and interest on some mortgage-backed securities (but not the market value of the securities themselves) may be guaranteed by
the full faith and credit of a particular U.S. Government agency, authority, enterprise or instrumentality, and some, but not all, are also insured or guaranteed by the U.S. Government. Mortgage-backed securities
issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may entail greater risk than
obligations guaranteed by the U.S. Government. Mortgage- and other asset-backed securities are subject to liquidity risk and prepayment risk. A decline or flattening of housing values may cause delinquencies in
mortgages (especially sub-prime or non-prime mortgages) underlying mortgage-backed securities and thereby adversely affect the ability of the mortgage-backed securities issuer to make principal and/or interest
payments to mortgage-backed securities holders, including the Fund. Rising or high interest rates tend to extend the duration of mortgage- and other asset-backed securities, making their prices more volatile and more
sensitive to changes in interest rates.
Shareholder concentration risk
At October 31, 2023, affiliated
shareholders of record owned 44.6% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund.
In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less
liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its
affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to
perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and
regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to
the Fund.
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 61 |
Approval of Management
Agreement
(Unaudited)
Columbia Management Investment
Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves
as the investment manager to Columbia Total Return Bond Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and
other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the
Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for
the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider,
Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal
Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and senior management
personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work,
deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in
determining whether to continue the Management Agreement.
The Board, at its June 22, 2023
Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various
factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that
they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors
considered included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more 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 mutual funds, as determined by Broadridge; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder 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). |
| 62 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of
services provided by the Investment Manager
The Board analyzed various
reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered
the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The
Board further observed the enhancements to the investment risk management department’s processes, systems and oversight over the past several years. The Board also took into account the broad scope of
services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the
Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the
Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment
Manager, as well as the achievements in 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the
Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of
the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed
the acceptability of the terms of the Management Agreement, noting that no changes were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance
services provided to the Fund under the Management Agreement.
After reviewing these and related
factors (including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the
Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the
investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including
since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that the Fund’s
performance for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a
description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the
Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund
and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of
services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative
fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other
things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the
Fund’s contribution to the
| Columbia Total Return Bond Fund | Semiannual Report 2023 | 63 |
Approval of Management Agreement (continued)
(Unaudited)
Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
(Unaudited)
Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
The Board considered the reports of
JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a
primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain
exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper
comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related
factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the
Management Agreement.
The Board also considered the
profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its
affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board
considered that the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. It also
took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial
products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive
compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Board considered the
potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, and whether those economies of scale were shared with the Fund through breakpoints in investment management
fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale
that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that
management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as
Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the
above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board,
including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the
Management Agreement.
| 64 | Columbia Total Return Bond Fund | Semiannual Report 2023 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2023 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR166_04_N01_(12/23)
Columbia Bond
Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from the
Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, is available on columbiathreadneedleus.com/investor/ or can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Bond
Fund | Semiannual Report 2023
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks current income, consistent with minimal fluctuation of principal.
Portfolio management
Jason Callan
Lead Portfolio Manager
Managed Fund since 2016
Gene Tannuzzo, CFA
Portfolio Manager
Managed Fund since 2017
Alex Christensen, CFA
Portfolio Manager
Managed Fund since 2021
| Columbia Bond Fund | Semiannual Report 2023 | 3 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2023 — October 31, 2023 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 934.40 | 1,021.55 | 3.74 | 3.90 | 0.76 |
| Advisor Class | 1,000.00 | 1,000.00 | 935.50 | 1,022.82 | 2.51 | 2.62 | 0.51 |
| Class C | 1,000.00 | 1,000.00 | 930.80 | 1,017.74 | 7.41 | 7.74 | 1.51 |
| Institutional Class | 1,000.00 | 1,000.00 | 935.60 | 1,022.82 | 2.51 | 2.62 | 0.51 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 936.00 | 1,023.12 | 2.21 | 2.31 | 0.45 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 936.30 | 1,023.38 | 1.97 | 2.06 | 0.40 |
| Class R | 1,000.00 | 1,000.00 | 933.30 | 1,020.28 | 4.96 | 5.18 | 1.01 |
| Class V | 1,000.00 | 1,000.00 | 935.10 | 1,022.06 | 3.25 | 3.39 | 0.66 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Bond Fund | Semiannual Report 2023 | 5 |
Portfolio of Investments
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 7 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 9 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 11 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 13 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 15 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
At October 31, 2023,
securities and/or cash totaling $10,653,915 were pledged as collateral.
Investments in
derivatives
| Long futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 2-Year Note | 328 | 12/2023 | USD | 66,394,375 | — | (331,882) |
| U.S. Treasury 5-Year Note | 1,555 | 12/2023 | USD | 162,461,055 | — | (2,433,302) |
| U.S. Treasury Ultra Bond | 122 | 12/2023 | USD | 13,732,625 | — | (690,759) |
| Total | — | (3,455,943) | ||||
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Long Bond | (165) | 12/2023 | USD | (18,057,188) | 1,629,094 | — |
| U.S. Treasury 10-Year Note | (93) | 12/2023 | USD | (9,873,984) | 1,385 | — |
| Total | 1,630,479 | — | ||||
| Put option contracts written | ||||||||
| Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
| 10-Year OTC interest rate swap with Citi to receive exercise rate and pay SOFR | Citi | USD | (30,800,000) | (30,800,000) | 5.10 | 12/27/2023 | (85,470) | (108,139) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 17 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Notes to Portfolio of
Investments
| (a) | 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 October 31, 2023, the total value of these securities amounted to $510,610,937, which represents 59.21% of total net assets. |
| (b) | Variable rate security. The interest rate shown was the current rate as of October 31, 2023. |
| (c) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The interest rate shown was the current rate as of October 31, 2023. |
| (d) | Non-income producing investment. |
| (e) | 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 October 31, 2023. |
| (f) | Represents a security purchased on a when-issued basis. |
| (g) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
| (h) | Represents interest only securities which have the right to receive the monthly interest payments on an underlying pool of mortgage loans. |
| (i) | Valuation based on significant unobservable inputs. |
| (j) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At October 31, 2023, the total value of these securities amounted to $246,200, which represents 0.03% of total net assets. |
| (k) | The rate shown is the seven-day current annualized yield at October 31, 2023. |
| (l) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended October 31, 2023 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 5.630% | ||||||||
| 92,910,208 | 184,385,688 | (240,443,695) | 4,473 | 36,856,674 | (1,103) | 1,366,760 | 36,867,734 | |
Abbreviation Legend
| CMO | Collateralized Mortgage Obligation |
| CMT | Constant Maturity Treasury |
| SOFR | Secured Overnight Financing Rate |
| TBA | To Be Announced |
Currency Legend
| USD | US Dollar |
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. 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.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Bond Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
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.
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.
The Fund’s Board of Trustees
(the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market
quotations are not readily available using 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 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. Representatives of Columbia Management Investment
Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2023:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Asset-Backed Securities — Non-Agency | — | 195,603,022 | — | 195,603,022 |
| Commercial Mortgage-Backed Securities - Agency | — | 925,865 | — | 925,865 |
| Commercial Mortgage-Backed Securities - Non-Agency | — | 75,986,743 | — | 75,986,743 |
| Common Stocks | ||||
| Consumer Staples | — | 16 | — | 16 |
| Energy | 95 | — | — | 95 |
| Financials | 1,255 | — | — | 1,255 |
| Total Common Stocks | 1,350 | 16 | — | 1,366 |
| Corporate Bonds & Notes | — | 167,484,058 | — | 167,484,058 |
| Residential Mortgage-Backed Securities - Agency | — | 359,052,860 | — | 359,052,860 |
| Residential Mortgage-Backed Securities - Non-Agency | — | 230,217,729 | 5,837,504 | 236,055,233 |
| Money Market Funds | 36,856,674 | — | — | 36,856,674 |
| Total Investments in Securities | 36,858,024 | 1,029,270,293 | 5,837,504 | 1,071,965,821 |
| Investments in Derivatives | ||||
| Asset | ||||
| Futures Contracts | 1,630,479 | — | — | 1,630,479 |
| Liability | ||||
| Futures Contracts | (3,455,943) | — | — | (3,455,943) |
| Put Option Contracts Written | — | (108,139) | — | (108,139) |
| Total | 35,032,560 | 1,029,162,154 | 5,837,504 | 1,070,032,218 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
Futures contracts are valued at
unrealized appreciation (depreciation).
The following table is a
reconciliation of Level 3 assets for which significant observable and unobservable inputs were used to determine fair value:
| Balance as of 04/30/2023 ($) | Increase (decrease) in accrued discounts/ premiums ($) | Realized gain (loss) ($) | Change in unrealized appreciation (depreciation)(a) ($) | Purchases ($) | Sales ($) | Transfers into Level 3 ($) | Transfers out of Level 3 ($) | Balance as of 10/31/2023 ($) | |
| Asset-Backed Securities — Non-Agency | 1,995,000 | - | - | - | - | - | - | (1,995,000) | - |
| Residential Mortgage-Backed Securities — Non-Agency | 9,051,066 | - | - | 10,137 | - | (3,223,699) | - | - | 5,837,504 |
| Total | 11,046,066 | - | - | 10,137 | - | (3,223,699) | - | (1,995,000) | 5,837,504 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 19 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
(a) Change in unrealized appreciation (depreciation) relating to securities held at October 31, 2023 was $10,137, which is comprised of Residential Mortgage-Backed Securities — Non-Agency.
(a) Change in unrealized appreciation (depreciation) relating to securities held at October 31, 2023 was $10,137, which is comprised of Residential Mortgage-Backed Securities — Non-Agency.
The Fund’s assets assigned to
the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain residential mortgage-backed securities classified as Level 3 securities are valued using the
market approach and utilize single market quotations from broker dealers which may have included, but were not limited to, observable transactions for identical or similar assets in the market and the distressed
nature of the security. The appropriateness of fair values for these securities is monitored on an ongoing basis which may include results of back testing, manual price reviews and other control procedures.
Significant increases (decreases) to any of these inputs would have resulted in a significantly higher (lower) valuation measurement.
Financial assets were transferred
from Level 3 to Level 2 as observable market inputs were utilized and management determined that there was sufficient, reliable, and observable market data to value these assets as of period end.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 20 | Columbia Bond Fund | Semiannual Report 2023 |
Statement of Assets and Liabilities
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,130,913,094) | $1,035,109,147 |
| Affiliated issuers (cost $36,852,040) | 36,856,674 |
| Cash collateral held at broker for: | |
| TBA | 3,120,527 |
| Receivable for: | |
| Investments sold | 2,698,592 |
| Capital shares sold | 3,505,520 |
| Dividends | 105,461 |
| Interest | 4,368,163 |
| Variation margin for futures contracts | 35,855 |
| Trustees’ fees | 205,226 |
| Expense reimbursement due from Investment Manager | 3,694 |
| Prepaid expenses | 10,085 |
| Other assets | 2,624 |
| Total assets | 1,086,021,568 |
| Liabilities | |
| Option contracts written, at value (premiums received $85,470) | 108,139 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 218,370,351 |
| Capital shares redeemed | 870,316 |
| Distributions to shareholders | 3,740,993 |
| Variation margin for futures contracts | 246,582 |
| Management services fees | 11,748 |
| Distribution and/or service fees | 618 |
| Transfer agent fees | 17,458 |
| Trustees’ fees | 271,152 |
| Compensation of chief compliance officer | 91 |
| Other expenses | 42,367 |
| Total liabilities | 223,679,815 |
| Net assets applicable to outstanding capital stock | $862,341,753 |
| Represented by | |
| Paid in capital | 1,122,076,882 |
| Total distributable earnings (loss) | (259,735,129) |
| Total - representing net assets applicable to outstanding capital stock | $862,341,753 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 21 |
Statement of Assets and Liabilities (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Class A | |
| Net assets | $73,428,580 |
| Shares outstanding | 2,695,613 |
| Net asset value per share | $27.24 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $28.60 |
| Advisor Class | |
| Net assets | $1,064,389 |
| Shares outstanding | 39,125 |
| Net asset value per share | $27.20 |
| Class C | |
| Net assets | $3,383,699 |
| Shares outstanding | 124,398 |
| Net asset value per share | $27.20 |
| Institutional Class | |
| Net assets | $65,143,529 |
| Shares outstanding | 2,391,711 |
| Net asset value per share | $27.24 |
| Institutional 2 Class | |
| Net assets | $16,257,067 |
| Shares outstanding | 598,415 |
| Net asset value per share | $27.17 |
| Institutional 3 Class | |
| Net assets | $697,929,066 |
| Shares outstanding | 25,568,404 |
| Net asset value per share | $27.30 |
| Class R | |
| Net assets | $243,552 |
| Shares outstanding | 8,942 |
| Net asset value per share | $27.24 |
| Class V | |
| Net assets | $4,891,871 |
| Shares outstanding | 179,937 |
| Net asset value per share | $27.19 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $28.55 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 22 | Columbia Bond Fund | Semiannual Report 2023 |
Statement of Operations
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $27 |
| Dividends — affiliated issuers | 1,366,760 |
| Interest | 21,775,763 |
| Interfund lending | 1,245 |
| Foreign taxes withheld | (29,284) |
| Total income | 23,114,511 |
| Expenses: | |
| Management services fees | 2,364,484 |
| Distribution and/or service fees | |
| Class A | 99,092 |
| Class C | 18,826 |
| Class R | 619 |
| Class V | 4,007 |
| Transfer agent fees | |
| Class A | 47,745 |
| Advisor Class | 677 |
| Class C | 2,268 |
| Institutional Class | 53,360 |
| Institutional 2 Class | 7,121 |
| Institutional 3 Class | 20,593 |
| Class R | 149 |
| Class V | 3,216 |
| Trustees’ fees | 15,409 |
| Custodian fees | 15,536 |
| Printing and postage fees | 15,119 |
| Registration fees | 65,038 |
| Accounting services fees | 20,770 |
| Legal fees | 12,124 |
| Interest on collateral | 1,988 |
| Compensation of chief compliance officer | 91 |
| Other | 13,733 |
| Total expenses | 2,781,965 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (660,332) |
| Fees waived by transfer agent | |
| Institutional 2 Class | (534) |
| Institutional 3 Class | (13,856) |
| Expense reduction | (731) |
| Total net expenses | 2,106,512 |
| Net investment income | 21,007,999 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (25,231,885) |
| Investments — affiliated issuers | (1,103) |
| Futures contracts | (10,544,432) |
| Option contracts purchased | (686,660) |
| Net realized loss | (36,464,080) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (36,109,742) |
| Investments — affiliated issuers | 4,473 |
| Futures contracts | (9,995,508) |
| Option contracts purchased | 738,534 |
| Option contracts written | (22,669) |
| Net change in unrealized appreciation (depreciation) | (45,384,912) |
| Net realized and unrealized loss | (81,848,992) |
| Net decrease in net assets resulting from operations | $(60,840,993) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 23 |
Statement of Changes in Net Assets
| Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, 2023 | |
| Operations | ||
| Net investment income | $21,007,999 | $31,854,281 |
| Net realized loss | (36,464,080) | (83,187,911) |
| Net change in unrealized appreciation (depreciation) | (45,384,912) | 32,270,579 |
| Net decrease in net assets resulting from operations | (60,840,993) | (19,063,051) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (1,652,155) | (2,382,407) |
| Advisor Class | (24,792) | (67,054) |
| Class C | (64,489) | (91,492) |
| Institutional Class | (1,946,338) | (2,168,440) |
| Institutional 2 Class | (563,969) | (435,234) |
| Institutional 3 Class | (16,881,090) | (26,451,528) |
| Class R | (4,863) | (8,241) |
| Class V | (113,757) | (181,843) |
| Total distributions to shareholders | (21,251,453) | (31,786,239) |
| Decrease in net assets from capital stock activity | (18,829,285) | (7,025,916) |
| Total decrease in net assets | (100,921,731) | (57,875,206) |
| Net assets at beginning of period | 963,263,484 | 1,021,138,690 |
| Net assets at end of period | $862,341,753 | $963,263,484 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 24 | Columbia Bond Fund | Semiannual Report 2023 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| October 31, 2023 (Unaudited) | April 30, 2023 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Shares sold | 337,681 | 9,761,698 | 507,815 | 15,160,104 |
| Distributions reinvested | 50,397 | 1,436,344 | 69,426 | 2,051,769 |
| Shares redeemed | (325,083) | (9,291,353) | (534,726) | (15,947,139) |
| Net increase | 62,995 | 1,906,689 | 42,515 | 1,264,734 |
| Advisor Class | ||||
| Shares sold | 6,314 | 183,029 | 6,582 | 193,361 |
| Distributions reinvested | 864 | 24,607 | 2,248 | 66,756 |
| Shares redeemed | (7,242) | (209,694) | (80,530) | (2,318,622) |
| Net decrease | (64) | (2,058) | (71,700) | (2,058,505) |
| Class C | ||||
| Shares sold | 28,711 | 828,060 | 27,540 | 810,763 |
| Distributions reinvested | 2,191 | 62,350 | 2,893 | 85,203 |
| Shares redeemed | (26,862) | (762,738) | (67,225) | (2,016,973) |
| Net increase (decrease) | 4,040 | 127,672 | (36,792) | (1,121,007) |
| Institutional Class | ||||
| Shares sold | 637,677 | 18,498,951 | 1,502,427 | 44,900,228 |
| Distributions reinvested | 63,528 | 1,815,167 | 66,293 | 1,961,422 |
| Shares redeemed | (1,327,539) | (37,749,105) | (982,374) | (29,580,684) |
| Net increase (decrease) | (626,334) | (17,434,987) | 586,346 | 17,280,966 |
| Institutional 2 Class | ||||
| Shares sold | 248,503 | 7,169,843 | 871,494 | 25,807,130 |
| Distributions reinvested | 19,745 | 563,919 | 14,730 | 435,234 |
| Shares redeemed | (731,345) | (20,957,288) | (210,527) | (6,176,709) |
| Net increase (decrease) | (463,097) | (13,223,526) | 675,697 | 20,065,655 |
| Institutional 3 Class | ||||
| Shares sold | 737,479 | 21,237,884 | 982,696 | 29,129,632 |
| Distributions reinvested | 362,596 | 10,356,471 | 552,905 | 16,392,158 |
| Shares redeemed | (761,231) | (21,651,419) | (2,902,845) | (87,494,983) |
| Net increase (decrease) | 338,844 | 9,942,936 | (1,367,244) | (41,973,193) |
| Class R | ||||
| Shares sold | 985 | 28,301 | 2,294 | 68,770 |
| Distributions reinvested | 171 | 4,862 | 277 | 8,168 |
| Shares redeemed | (534) | (15,683) | (5,160) | (152,998) |
| Net increase (decrease) | 622 | 17,480 | (2,589) | (76,060) |
| Class V | ||||
| Shares sold | 715 | 20,270 | 1,455 | 43,393 |
| Distributions reinvested | 2,896 | 82,390 | 4,356 | 128,524 |
| Shares redeemed | (9,335) | (266,151) | (19,519) | (580,423) |
| Net decrease | (5,724) | (163,491) | (13,708) | (408,506) |
| Total net decrease | (688,718) | (18,829,285) | (187,475) | (7,025,916) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 25 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is
calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be
higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.78 | 0.60 | (2.53) | (1.93) | (0.61) | — | (0.61) |
| Year Ended 4/30/2023 | $31.39 | 0.93 | (1.62) | (0.69) | (0.92) | — | (0.92) |
| Year Ended 4/30/2022 | $35.38 | 0.50 | (4.00) | (3.50) | (0.49) | — | (0.49) |
| Year Ended 4/30/2021(e) | $34.88 | 0.69 | 1.39 | 2.08 | (0.72) | (0.86) | (1.58) |
| Year Ended 4/30/2020(e) | $33.84 | 0.88 | 1.48 | 2.36 | (0.88) | (0.44) | (1.32) |
| Year Ended 4/30/2019(e) | $33.13 | 0.92 | 0.67 | 1.59 | (0.88) | — | (0.88) |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.74 | 0.64 | (2.54) | (1.90) | (0.64) | — | (0.64) |
| Year Ended 4/30/2023 | $31.34 | 0.94 | (1.54) | (0.60) | (1.00) | — | (1.00) |
| Year Ended 4/30/2022 | $35.33 | 0.58 | (4.00) | (3.42) | (0.57) | — | (0.57) |
| Year Ended 4/30/2021(e) | $34.83 | 0.79 | 1.38 | 2.17 | (0.81) | (0.86) | (1.67) |
| Year Ended 4/30/2020(e) | $33.80 | 0.96 | 1.47 | 2.43 | (0.96) | (0.44) | (1.40) |
| Year Ended 4/30/2019(e) | $33.09 | 1.00 | 0.71 | 1.71 | (1.00) | — | (1.00) |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.74 | 0.49 | (2.53) | (2.04) | (0.50) | — | (0.50) |
| Year Ended 4/30/2023 | $31.34 | 0.69 | (1.59) | (0.90) | (0.70) | — | (0.70) |
| Year Ended 4/30/2022 | $35.33 | 0.24 | (4.01) | (3.77) | (0.22) | — | (0.22) |
| Year Ended 4/30/2021(e) | $34.83 | 0.43 | 1.38 | 1.81 | (0.45) | (0.86) | (1.31) |
| Year Ended 4/30/2020(e) | $33.79 | 0.60 | 1.52 | 2.12 | (0.64) | (0.44) | (1.08) |
| Year Ended 4/30/2019(e) | $33.08 | 0.64 | 0.71 | 1.35 | (0.64) | — | (0.64) |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.78 | 0.64 | (2.54) | (1.90) | (0.64) | — | (0.64) |
| Year Ended 4/30/2023 | $31.38 | 1.01 | (1.61) | (0.60) | (1.00) | — | (1.00) |
| Year Ended 4/30/2022 | $35.37 | 0.59 | (4.01) | (3.42) | (0.57) | — | (0.57) |
| Year Ended 4/30/2021(e) | $34.88 | 0.78 | 1.38 | 2.16 | (0.81) | (0.86) | (1.67) |
| Year Ended 4/30/2020(e) | $33.83 | 0.96 | 1.49 | 2.45 | (0.96) | (0.44) | (1.40) |
| Year Ended 4/30/2019(e) | $33.13 | 1.00 | 0.70 | 1.70 | (1.00) | — | (1.00) |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.70 | 0.64 | (2.52) | (1.88) | (0.65) | — | (0.65) |
| Year Ended 4/30/2023 | $31.30 | 1.06 | (1.64) | (0.58) | (1.02) | — | (1.02) |
| Year Ended 4/30/2022 | $35.28 | 0.61 | (3.99) | (3.38) | (0.60) | — | (0.60) |
| Year Ended 4/30/2021(e) | $34.78 | 0.80 | 1.39 | 2.19 | (0.83) | (0.86) | (1.69) |
| Year Ended 4/30/2020(e) | $33.74 | 1.00 | 1.48 | 2.48 | (1.00) | (0.44) | (1.44) |
| Year Ended 4/30/2019(e) | $33.02 | 1.04 | 0.68 | 1.72 | (1.00) | — | (1.00) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 26 | Columbia Bond Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.24 | (6.56%) | 0.90%(c) | 0.76%(c),(d) | 4.12% | 131% | $73,429 |
| Year Ended 4/30/2023 | $29.78 | (2.12%) | 0.91%(c) | 0.77%(c),(d) | 3.10% | 260% | $78,406 |
| Year Ended 4/30/2022 | $31.39 | (10.02%) | 0.90%(c) | 0.77%(c),(d) | 1.44% | 224% | $81,291 |
| Year Ended 4/30/2021(e) | $35.38 | 5.96% | 0.91%(c) | 0.77%(c),(d) | 1.92% | 227% | $99,681 |
| Year Ended 4/30/2020(e) | $34.88 | 7.05% | 0.97% | 0.80%(d) | 2.50% | 229% | $75,375 |
| Year Ended 4/30/2019(e) | $33.84 | 4.98% | 1.01% | 0.83%(d) | 2.73% | 236% | $49,696 |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.20 | (6.45%) | 0.65%(c) | 0.51%(c),(d) | 4.37% | 131% | $1,064 |
| Year Ended 4/30/2023 | $29.74 | (1.85%) | 0.66%(c) | 0.52%(c),(d) | 3.11% | 260% | $1,166 |
| Year Ended 4/30/2022 | $31.34 | (9.81%) | 0.65%(c) | 0.52%(c),(d) | 1.70% | 224% | $3,475 |
| Year Ended 4/30/2021(e) | $35.33 | 6.20% | 0.66%(c) | 0.52%(c),(d) | 2.19% | 227% | $2,123 |
| Year Ended 4/30/2020(e) | $34.83 | 7.32% | 0.71% | 0.55%(d) | 2.74% | 229% | $1,676 |
| Year Ended 4/30/2019(e) | $33.80 | 5.24% | 0.76% | 0.58%(d) | 3.03% | 236% | $738 |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.20 | (6.92%) | 1.66%(c) | 1.51%(c),(d) | 3.37% | 131% | $3,384 |
| Year Ended 4/30/2023 | $29.74 | (2.82%) | 1.66%(c) | 1.52%(c),(d) | 2.31% | 260% | $3,579 |
| Year Ended 4/30/2022 | $31.34 | (10.71%) | 1.65%(c) | 1.52%(c),(d) | 0.69% | 224% | $4,925 |
| Year Ended 4/30/2021(e) | $35.33 | 5.15% | 1.66%(c) | 1.52%(c),(d) | 1.19% | 227% | $7,680 |
| Year Ended 4/30/2020(e) | $34.83 | 6.26% | 1.72% | 1.55%(d) | 1.74% | 229% | $8,519 |
| Year Ended 4/30/2019(e) | $33.79 | 4.20% | 1.76% | 1.59%(d) | 1.96% | 236% | $4,058 |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.24 | (6.44%) | 0.65%(c) | 0.51%(c),(d) | 4.36% | 131% | $65,144 |
| Year Ended 4/30/2023 | $29.78 | (1.84%) | 0.66%(c) | 0.52%(c),(d) | 3.37% | 260% | $89,875 |
| Year Ended 4/30/2022 | $31.38 | (9.80%) | 0.65%(c) | 0.52%(c),(d) | 1.69% | 224% | $76,311 |
| Year Ended 4/30/2021(e) | $35.37 | 6.19% | 0.66%(c) | 0.52%(c),(d) | 2.18% | 227% | $80,542 |
| Year Ended 4/30/2020(e) | $34.88 | 7.32% | 0.72% | 0.55%(d) | 2.76% | 229% | $68,640 |
| Year Ended 4/30/2019(e) | $33.83 | 5.24% | 0.76% | 0.58%(d) | 2.97% | 236% | $51,185 |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.17 | (6.40%) | 0.59%(c) | 0.45%(c) | 4.40% | 131% | $16,257 |
| Year Ended 4/30/2023 | $29.70 | (1.78%) | 0.59%(c) | 0.45%(c) | 3.58% | 260% | $31,528 |
| Year Ended 4/30/2022 | $31.30 | (9.74%) | 0.58%(c) | 0.45%(c) | 1.76% | 224% | $12,075 |
| Year Ended 4/30/2021(e) | $35.28 | 6.24% | 0.60%(c) | 0.45%(c) | 2.23% | 227% | $10,058 |
| Year Ended 4/30/2020(e) | $34.78 | 7.55% | 0.62% | 0.46% | 2.83% | 229% | $6,038 |
| Year Ended 4/30/2019(e) | $33.74 | 5.24% | 0.64% | 0.47% | 3.20% | 236% | $3,687 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 27 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.84 | 0.66 | (2.54) | (1.88) | (0.66) | — | (0.66) |
| Year Ended 4/30/2023 | $31.45 | 1.04 | (1.61) | (0.57) | (1.04) | — | (1.04) |
| Year Ended 4/30/2022 | $35.45 | 0.63 | (4.01) | (3.38) | (0.62) | — | (0.62) |
| Year Ended 4/30/2021(e) | $34.95 | 0.79 | 1.42 | 2.21 | (0.85) | (0.86) | (1.71) |
| Year Ended 4/30/2020(e) | $33.90 | 1.00 | 1.53 | 2.53 | (1.04) | (0.44) | (1.48) |
| Year Ended 4/30/2019(e) | $33.19 | 1.04 | 0.71 | 1.75 | (1.04) | — | (1.04) |
| Class R | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.78 | 0.56 | (2.53) | (1.97) | (0.57) | — | (0.57) |
| Year Ended 4/30/2023 | $31.38 | 0.84 | (1.59) | (0.75) | (0.85) | — | (0.85) |
| Year Ended 4/30/2022 | $35.38 | 0.41 | (4.01) | (3.60) | (0.40) | — | (0.40) |
| Year Ended 4/30/2021(e) | $34.88 | 0.61 | 1.38 | 1.99 | (0.63) | (0.86) | (1.49) |
| Year Ended 4/30/2020(e) | $33.83 | 0.80 | 1.49 | 2.29 | (0.80) | (0.44) | (1.24) |
| Year Ended 4/30/2019(e) | $33.12 | 0.84 | 0.67 | 1.51 | (0.80) | — | (0.80) |
| Class V | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $29.72 | 0.61 | (2.52) | (1.91) | (0.62) | — | (0.62) |
| Year Ended 4/30/2023 | $31.33 | 0.95 | (1.61) | (0.66) | (0.95) | — | (0.95) |
| Year Ended 4/30/2022 | $35.31 | 0.53 | (3.99) | (3.46) | (0.52) | — | (0.52) |
| Year Ended 4/30/2021(e) | $34.82 | 0.73 | 1.37 | 2.10 | (0.75) | (0.86) | (1.61) |
| Year Ended 4/30/2020(e) | $33.78 | 0.92 | 1.48 | 2.40 | (0.92) | (0.44) | (1.36) |
| Year Ended 4/30/2019(e) | $33.07 | 0.92 | 0.71 | 1.63 | (0.92) | — | (0.92) |
| 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) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Ratios include interest on collateral expense which is less than 0.01%. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Per share amounts have been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 28 | Columbia Bond Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.30 | (6.37%) | 0.54%(c) | 0.40%(c) | 4.48% | 131% | $697,929 |
| Year Ended 4/30/2023 | $29.84 | (1.74%) | 0.54%(c) | 0.40%(c) | 3.47% | 260% | $752,943 |
| Year Ended 4/30/2022 | $31.45 | (9.70%) | 0.53%(c) | 0.40%(c) | 1.81% | 224% | $836,474 |
| Year Ended 4/30/2021(e) | $35.45 | 6.31% | 0.55%(c) | 0.40%(c) | 2.22% | 227% | $925,195 |
| Year Ended 4/30/2020(e) | $34.95 | 7.47% | 0.57% | 0.40% | 2.91% | 229% | $265,665 |
| Year Ended 4/30/2019(e) | $33.90 | 5.41% | 0.58% | 0.42% | 3.14% | 236% | $257,417 |
| Class R | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.24 | (6.67%) | 1.16%(c) | 1.01%(c),(d) | 3.87% | 131% | $244 |
| Year Ended 4/30/2023 | $29.78 | (2.33%) | 1.16%(c) | 1.02%(c),(d) | 2.83% | 260% | $248 |
| Year Ended 4/30/2022 | $31.38 | (10.28%) | 1.14%(c) | 1.02%(c),(d) | 1.18% | 224% | $342 |
| Year Ended 4/30/2021(e) | $35.38 | 5.70% | 1.16%(c) | 1.02%(c),(d) | 1.69% | 227% | $1,127 |
| Year Ended 4/30/2020(e) | $34.88 | 6.79% | 1.22% | 1.05%(d) | 2.26% | 229% | $1,225 |
| Year Ended 4/30/2019(e) | $33.83 | 4.71% | 1.26% | 1.08%(d) | 2.51% | 236% | $680 |
| Class V | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $27.19 | (6.49%) | 0.80%(c) | 0.66%(c),(d) | 4.22% | 131% | $4,892 |
| Year Ended 4/30/2023 | $29.72 | (2.03%) | 0.81%(c) | 0.67%(c),(d) | 3.19% | 260% | $5,519 |
| Year Ended 4/30/2022 | $31.33 | (9.93%) | 0.80%(c) | 0.67%(c),(d) | 1.54% | 224% | $6,246 |
| Year Ended 4/30/2021(e) | $35.31 | 6.10% | 0.81%(c) | 0.67%(c),(d) | 2.04% | 227% | $7,640 |
| Year Ended 4/30/2020(e) | $34.82 | 7.17% | 0.87% | 0.70%(d) | 2.62% | 229% | $8,145 |
| Year Ended 4/30/2019(e) | $33.78 | 4.96% | 0.91% | 0.73%(d) | 2.83% | 236% | $8,242 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Bond Fund | Semiannual Report 2023 | 29 |
Notes to Financial Statements
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 1. Organization
Columbia Bond Fund (the Fund), a
series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company
organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class,
Institutional 3 Class and Class R shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also
described in the Fund’s prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
In September 2023, the Fund’s
Board of Trustees approved the liquidation of Class V shares of the Fund on December 8, 2023. Effective at the open of business on October 25, 2023, any applicable contingent deferred sales charges were waived on
redemptions and exchanges out of Class V shares, and effective at the open of business on November 27, 2023, Class V shares of the Fund were closed to all investors. For federal tax purposes, this liquidation was
treated as a redemption of fund shares.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on
any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Debt securities generally are
valued based on prices obtained from pricing services, which are intended to reflect market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing
techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes.
Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities
maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
| 30 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Asset- and mortgage-backed
securities are generally valued by pricing services, which utilize pricing models that incorporate the securities’ cash flow and loan performance data. These models also take into account available market data,
including trades, market quotations, and benchmark yield curves for identical or similar securities. Factors used to identify similar securities may include, but are not limited to, issuer, collateral type, vintage,
prepayment speeds, collateral performance, credit ratings, credit enhancement and expected life. Asset-backed securities for which quotations are readily available may also be valued based upon an over-the-counter or
exchange bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management
believes does not approximate fair value.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Option contracts are valued at the
mean of the latest quoted bid and ask prices on their primary exchanges. Option contracts, including over-the-counter option contracts, with no readily available market quotations are valued using mid-market
evaluations from independent third-party vendors.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if
available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements
which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial
statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty provides some protection in the case of clearing member default. The clearinghouse or central counterparty stands between the buyer and the seller of the
contract; therefore, failure of the clearinghouse or central counterparty may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with
respect to
| Columbia Bond Fund | Semiannual Report 2023 | 31 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
initial and variation margin that is held in a
broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time
there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the central counterparty or otherwise, U.S. bankruptcy laws will typically
allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may
impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or central counterparty for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the
minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific
margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such
agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum
transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the
risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker or receive interest income on cash collateral pledged to the broker. The Fund attempts
to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those
counterparties.
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination
rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk,
whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments.
| 32 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Subsequent payments (variation margin) are made or
received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are recorded as variation margin receivable or payable and are offset in unrealized gains or losses.
The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of
loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Options contracts
Options are contracts which entitle
the holder to purchase or sell securities or other identified assets at a specified price, or in the case of index option contracts, to receive or pay the difference between the index value and the strike price of the
index option contract. Option contracts can be either exchange-traded or over-the-counter. The Fund purchased and has written option contracts to manage exposure to fluctuations in interest rates and to manage
convexity risk. These instruments may be used for other purposes in future periods. Completion of transactions for option contracts traded in the over-the-counter market depends upon the performance of the other
party. Collateral may be collected or posted by the Fund to secure over-the-counter option contract trades. Collateral held or posted by the Fund for such option contract trades must be returned to the broker or the
Fund upon closure, exercise or expiration of the contract.
Options contracts purchased are
recorded as investments. When the Fund writes an options contract, the premium received is recorded as an asset and an amount equivalent to the premium is recorded as a liability in the Statement of Assets and
Liabilities and is subsequently adjusted to reflect the current fair value of the option written. Changes in the fair value of the written option are recorded as unrealized appreciation or depreciation until the
contract is exercised or has expired. The Fund realizes a gain or loss when the option contract is closed or expires. When option contracts are exercised, the proceeds on sales for a written call or purchased put
option contract, or the purchase cost for a written put or purchased call option contract, is adjusted by the amount of premium received or paid.
For over-the-counter options
purchased, the Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the
contracts. Option contracts written by the Fund do not typically give rise to significant counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform. The risk in
writing a call option contract is that the Fund gives up the opportunity for profit if the market price of the security increases above the strike price and the option contract is exercised. The risk in writing a put
option contract is that the Fund may incur a loss if the market price of the security decreases below the strike price and the option contract is exercised. Exercise of a written option could result in the Fund
purchasing or selling a security or foreign currency when it otherwise would not, or at a price different from the current market value. In purchasing and writing options, the Fund bears the risk of an unfavorable
change in the value of the underlying instrument or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market.
Interest rate swaption contracts
Interest rate swaption contracts
entered into by the Fund typically represent an option that gives the purchaser the right, but not the obligation, to enter into an interest rate swap contract on a future date. Each interest rate swaption contract
will specify if the buyer is entitled to receive the fixed or floating rate if the interest rate is exercised. Changes in the value of a purchased interest rate swaption contracts are reported as unrealized
appreciation or depreciation on options in the Statement of Assets and Liabilities. Gain or loss is recognized in the Statement of Operations when the interest rate swaption contract is closed or expires.
When the Fund writes an interest
rate swaption contract, the premium received is recorded as an asset and an amount equivalent to the premium is recorded as a liability in the Statement of Assets and Liabilities and is subsequently adjusted to
reflect the current fair value of the interest rate swaption contract written. Premiums received from writing interest rate swaption contracts that expire unexercised are recorded by the Fund on the expiration date as
realized gains from options written in the Statement of Operations. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also recorded
as realized gain, or if the premium is less than the amount paid for the closing purchase, as realized loss. These amounts are reflected as net realized gain (loss) on options written in the Statement of
Operations.
| Columbia Bond Fund | Semiannual Report 2023 | 33 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at October 31, 2023:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 1,630,479* |
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 3,455,943* |
| Interest rate risk | Option contracts written, at value | 108,139 |
| Total | 3,564,082 |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin for futures and centrally cleared swaps, if any, is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended October 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income | |||
| Risk exposure category | Futures contracts ($) | Option contracts purchased ($) | Total ($) |
| Interest rate risk | (10,544,432) | (686,660) | (11,231,092) |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | ||||
| Risk exposure category | Futures contracts ($) | Option contracts purchased ($) | Option contracts written ($) | Total ($) |
| Interest rate risk | (9,995,508) | 738,534 | (22,669) | (9,279,643) |
The following table is a summary
of the average daily outstanding volume by derivative instrument for the six months ended October 31, 2023:
| Derivative instrument | Average notional amounts ($) |
| Futures contracts — long | 277,609,217 |
| Futures contracts — short | 48,285,157 |
| Derivative instrument | Average value ($) |
| Option contracts purchased | 42,311 |
| Option contracts written | (23,828) |
| 34 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Asset- and mortgage-backed
securities
The Fund may invest in asset-backed
and mortgage-backed securities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. All, or a portion,
of the obligation may be prepaid at any time because the underlying asset may be prepaid. As a result, decreasing market interest rates could result in an increased level of prepayment. An increased prepayment rate
will have the effect of shortening the maturity of the security. Unless otherwise noted, the coupon rates presented are fixed rates.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
To be announced securities
The Fund may trade securities on a
To Be Announced (TBA) basis. As with other delayed-delivery transactions, a seller agrees to issue a TBA security at a future date. However, the seller does not specify the particular securities to be delivered.
Instead, the Fund agrees to accept any security that meets specified terms.
In some cases, Master Securities
Forward Transaction Agreements (MSFTAs) may be used to govern transactions of certain forward-settling agency mortgage-backed securities, such as delayed-delivery and TBAs, between the Fund and counterparty. The MSFTA
maintains provisions for, among other things, initiation and confirmation, payment and transfer, events of default, termination, and maintenance of collateral relating to such transactions.
Mortgage dollar roll transactions
The Fund may enter into mortgage
“dollar rolls” in which the Fund sells securities for delivery in the current month and simultaneously contracts with the same counterparty to repurchase similar but not identical securities (same type,
coupon and maturity) on a specified future date. These transactions may increase the Fund’s portfolio turnover rate. During the roll period, the Fund loses the right to receive principal and interest paid on the
securities sold. However, the Fund may benefit because it receives negotiated amounts in the form of reductions of the purchase price for the future purchase plus the interest earned on the cash proceeds of the
securities sold until the settlement date of the forward purchase. The Fund records the incremental difference between the forward purchase and sale of each forward roll as a realized gain or loss. Unless any realized
gains exceed the income, capital appreciation, and gain or loss due to mortgage prepayments that would have been realized on the securities sold as part of the mortgage dollar roll, the use of this technique may
diminish the investment performance of the Fund compared to what the performance would have been without the use of mortgage dollar rolls. Mortgage dollar rolls involve the risk that the market value of the securities
the Fund is obligated to repurchase may decline below the repurchase price, or that the counterparty may default on its obligations. All cash proceeds will be invested in instruments that are permissible investments
for the Fund. The Fund identifies cash or liquid securities in an amount equal to the forward purchase price. The Fund does not currently enter into mortgage dollar rolls that are accounted for as financing
transactions.
Interest only and principal only
securities
The Fund may invest in Interest
Only (IO) or Principal Only (PO) securities. IOs are stripped securities entitled to receive all of the security’s interest, but none of its principal. IOs are particularly sensitive to changes in interest rates
and therefore subject to greater fluctuations in price than typical interest bearing debt securities. IOs are also subject to credit risk because the Fund may not receive all or part of the interest payments if the
issuer, obligor, guarantor or counterparty defaults on its obligation. Payments received for IOs are included in interest income in the Statement of Operations. Because no principal will be received at the maturity of
an IO, adjustments are made to the cost of the security on a monthly basis until maturity. These adjustments are included in interest income in the Statement of Operations. POs are stripped securities entitled to
receive the principal from the underlying obligation, but not the interest. POs are particularly sensitive to changes in interest rates and therefore are subject to fluctuations in price. POs are also subject to
credit risk because the Fund may not receive
| Columbia Bond Fund | Semiannual Report 2023 | 35 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
all or part of its principal if the issuer,
obligor, guarantor or counterparty defaults on its obligation. The Fund may also invest in IO or PO stripped mortgage-backed securities. Payments received for POs are treated as reductions to the cost and par value of
the securities.
Offsetting of assets and
liabilities
The following table presents the
Fund’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Fund as of October 31, 2023:
| Citi ($) | |
| Liabilities | |
| Put option contracts written | 108,139 |
| Total financial and derivative net assets | (108,139) |
| Total collateral received (pledged) (a) | - |
| Net amount (b) | (108,139) |
| (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. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted. The
Fund classifies gains and losses realized on prepayments received on mortgage-backed securities as adjustments to interest income.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. The Fund may also adjust
accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. A defaulted debt security is removed from non-accrual status when the issuer resumes interest
payments or when collectability of interest is reasonably assured.
Corporate actions and dividend
income are recorded on the ex-dividend date.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
| 36 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and
regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and
Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will,
among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data
format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month
transition period after the effective date of the amendments.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.50% to 0.34% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended October 31, 2023 was 0.50% of the
Fund’s average daily net assets.
| Columbia Bond Fund | Semiannual Report 2023 | 37 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Compensation of Board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. The Transfer Agent pays the fees of SS&C GIDS for
services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, prior to September 1, 2023, Institutional 2 Class shares were
subject to a contractual transfer agency fee annual limitation of not more than 0.05% and Institutional 3 Class shares were subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the
average daily net assets attributable to each share class.
For the six months
ended October 31, 2023, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.12 |
| Advisor Class | 0.12 |
| Class C | 0.12 |
| Institutional Class | 0.12 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
| Class R | 0.12 |
| Class V | 0.12 |
| 38 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended October 31, 2023, these minimum account balance fees reduced total
expenses of the Fund by $731.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a
monthly distribution fee to the Distributor at the maximum annual rates of 0.75% and 0.50% of the average daily net assets attributable to Class C and Class R shares of the Fund, respectively.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to
an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended October 31, 2023, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 4.75 | 0.50 - 1.00(a) | 38,611 |
| Class C | — | 1.00(b) | — |
| Class V | 4.75 | 0.50 - 1.00(a) | 23 |
| (a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| Columbia Bond Fund | Semiannual Report 2023 | 39 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| September 1, 2023 through August 31, 2024 | Prior to September 1, 2023 | |
| Class A | 0.74% | 0.77% |
| Advisor Class | 0.49 | 0.52 |
| Class C | 1.49 | 1.52 |
| Institutional Class | 0.49 | 0.52 |
| Institutional 2 Class | 0.44 | 0.45 |
| Institutional 3 Class | 0.39 | 0.40 |
| Class R | 0.99 | 1.02 |
| Class V | 0.64 | 0.67 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Reflected in the contractual cap commitment, prior to September 1, 2023, is the Transfer Agent’s
contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.05% for Institutional 2 Class and 0.00% for Institutional 3 Class of the average daily net assets attributable to each
share class. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At October 31, 2023, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized (depreciation) ($) |
| 1,167,680,000 | 4,374,000 | (102,022,000) | (97,648,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at April 30, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (57,211,023) | (58,164,276) | (115,375,299) |
| 40 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $1,406,852,507 and $1,398,761,605, respectively, for the six months ended October 31, 2023, of which
$1,217,538,841 and $1,193,120,575, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject, by October 2,
2024, to a liquidity fee if daily net redemptions exceed 5% of net assets and, by April 2, 2024, to a discretionary liquidity fee up to 2% if the imposition of such a fee is determined to be in the best interest of
the Affiliated MMF.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended October 31, 2023 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Lender | 2,000,000 | 5.60 | 4 |
Interest income earned by the Fund
is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at October 31, 2023.
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the
higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility
matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee
is included in
| Columbia Bond Fund | Semiannual Report 2023 | 41 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
other expenses in the Statement of Operations.
This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by
JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to
the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during
the six months ended October 31, 2023.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency,
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by
governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may
negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt
security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and
financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or
| 42 | Columbia Bond Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
financial market. These risks may be magnified if
certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as
terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of
Russian currency. The extent and duration of the military action are impossible to predict but could continue to be significant. Market disruption caused by the Russian military action, and any counter measures or
responses thereto (including international sanctions, a downgrade in a country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences,
cyberattacks and espionage) could continue to have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced
market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain
international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Mortgage- and other asset-backed
securities risk
The value of any mortgage-backed
and other asset-backed securities including collateralized debt obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the
interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements;
or the market’s assessment of the quality of underlying assets. Payment of principal and interest on some mortgage-backed securities (but not the market value of the securities themselves) may be guaranteed by
the full faith and credit of a particular U.S. Government agency, authority, enterprise or instrumentality, and some, but not all, are also insured or guaranteed by the U.S. Government. Mortgage-backed securities
issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may entail greater risk than
obligations guaranteed by the U.S. Government. Mortgage- and other asset-backed securities are subject to liquidity risk and prepayment risk. A decline or flattening of housing values may cause delinquencies in
mortgages (especially sub-prime or non-prime mortgages) underlying mortgage-backed securities and thereby adversely affect the ability of the mortgage-backed securities issuer to make principal and/or interest
payments to mortgage-backed securities holders, including the Fund. Rising or high interest rates tend to extend the duration of mortgage- and other asset-backed securities, making their prices more volatile and more
sensitive to changes in interest rates.
Shareholder concentration risk
At October 31, 2023, one
unaffiliated shareholder of record owned 33.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated
shareholders of record owned 53.6% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund.
In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less
liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued. Other than as noted in Note 1 above, there were no items requiring adjustment of the financial statements or additional
disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not
| Columbia Bond Fund | Semiannual Report 2023 | 43 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
currently the subject of, and that neither
Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of
Ameriprise Financial or its affiliates to perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and
Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to
the Fund.
| 44 | Columbia Bond Fund | Semiannual Report 2023 |
Approval of Management
Agreement
(Unaudited)
Columbia Management Investment
Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves
as the investment manager to Columbia Bond Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and other funds
distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the
Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for
the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider,
Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal
Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and senior management
personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work,
deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in
determining whether to continue the Management Agreement.
The Board, at its June 22, 2023
Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various
factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that
they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors
considered included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more 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 mutual funds, as determined by Broadridge; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder 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). |
| Columbia Bond Fund | Semiannual Report 2023 | 45 |
Approval of Management Agreement (continued)
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of
services provided by the Investment Manager
The Board analyzed various
reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered
the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The
Board further observed the enhancements to the investment risk management department’s processes, systems and oversight over the past several years. The Board also took into account the broad scope of
services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the
Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the
Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment
Manager, as well as the achievements in 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the
Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of
the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed
the acceptability of the terms of the Management Agreement, noting that no changes were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance
services provided to the Fund under the Management Agreement.
After reviewing these and related
factors (including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the
Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the
investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including
since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed the Fund’s
underperformance for certain periods, noting that such Fund’s performance was generally consistent with expectations in light of the interrelationship of the Fund’s specific investment strategy with
prevailing market conditions.
The Board also reviewed a
description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the
Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund
and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of
services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative
fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other
things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the
Fund’s contribution to the
| 46 | Columbia Bond Fund | Semiannual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
(Unaudited)
Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
The Board considered the reports of
JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a
primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain
exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper
comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related
factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the
Management Agreement.
The Board also considered the
profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its
affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board
considered that the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. It also
took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial
products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive
compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Board considered the
potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, and whether those economies of scale were shared with the Fund through breakpoints in investment management
fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale
that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that
management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as
Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the
above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board,
including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the
Management Agreement.
| Columbia Bond Fund | Semiannual Report 2023 | 47 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2023 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR121_04_N01_(12/23)
Columbia Small Cap
Value Fund I
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Small Cap Value Fund I (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, is available on columbiathreadneedleus.com/investor/ or can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Small Cap Value Fund
I | Semiannual Report 2023
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks long-term capital appreciation.
Portfolio management
Jeremy Javidi, CFA
Lead Portfolio Manager
Managed Fund since 2005
C. Bryan Lassiter, CFA
Portfolio Manager
Managed Fund since November 2023
Morningstar style boxTM
The Morningstar Style Box is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows
investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2023 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 3 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2023 — October 31, 2023 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 997.80 | 1,019.01 | 6.40 | 6.46 | 1.26 |
| Advisor Class | 1,000.00 | 1,000.00 | 999.00 | 1,020.28 | 5.13 | 5.18 | 1.01 |
| Class C | 1,000.00 | 1,000.00 | 993.80 | 1,015.20 | 10.18 | 10.29 | 2.01 |
| Institutional Class | 1,000.00 | 1,000.00 | 998.90 | 1,020.33 | 5.08 | 5.13 | 1.00 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 999.50 | 1,020.79 | 4.62 | 4.67 | 0.91 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 999.90 | 1,021.04 | 4.37 | 4.42 | 0.86 |
| Class R | 1,000.00 | 1,000.00 | 996.30 | 1,017.74 | 7.66 | 7.74 | 1.51 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 5 |
Portfolio of Investments
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 7 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 9 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Money Market Funds 0.2% | ||
| Shares | Value ($) | |
| Columbia Short-Term Cash Fund, 5.630%(b),(c) | 2,796,289 | 2,795,450 |
| Total Money Market Funds (Cost $2,795,450) | 2,795,450 | |
| Total Investments in Securities (Cost: $1,000,219,253) | 1,112,685,405 | |
| Other Assets & Liabilities, Net | 4,460,811 | |
| Net Assets | 1,117,146,216 | |
Notes to Portfolio of
Investments
| (a) | Non-income producing investment. |
| (b) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended October 31, 2023 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 5.630% | ||||||||
| 4,421,052 | 153,466,776 | (155,092,263) | (115) | 2,795,450 | (1,086) | 146,221 | 2,796,289 | |
| Gaia, Inc.† | ||||||||
| 2,410,562 | 56,889 | (214,332) | 2,149,736 | — | (57,193) | — | — | |
| Total | 6,831,614 | 2,149,621 | 2,795,450 | (58,279) | 146,221 | |||
| † | Issuer was not an affiliate at the end of period. |
| (c) | The rate shown is the seven-day current annualized yield at October 31, 2023. |
Abbreviation Legend
| ADR | American Depositary Receipt |
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. 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.
Foreign equity securities actively
traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact
of market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 11 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
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.
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.
The Fund’s Board of Trustees
(the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market
quotations are not readily available using 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 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. Representatives of Columbia Management Investment
Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2023:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Communication Services | 29,659,518 | — | — | 29,659,518 |
| Consumer Discretionary | 157,179,980 | 1,711,365 | — | 158,891,345 |
| Consumer Staples | 17,620,831 | — | — | 17,620,831 |
| Energy | 95,563,141 | — | — | 95,563,141 |
| Financials | 246,732,153 | — | — | 246,732,153 |
| Health Care | 94,497,554 | — | — | 94,497,554 |
| Industrials | 181,677,724 | — | — | 181,677,724 |
| Information Technology | 91,288,086 | — | — | 91,288,086 |
| Materials | 96,575,406 | — | — | 96,575,406 |
| Real Estate | 55,868,901 | — | — | 55,868,901 |
| Utilities | 39,292,031 | — | — | 39,292,031 |
| Total Common Stocks | 1,105,955,325 | 1,711,365 | — | 1,107,666,690 |
| Exchange-Traded Equity Funds | 2,223,265 | — | — | 2,223,265 |
| Money Market Funds | 2,795,450 | — | — | 2,795,450 |
| Total Investments in Securities | 1,110,974,040 | 1,711,365 | — | 1,112,685,405 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets. These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The model utilized by such third party statistical
pricing service takes into account a security’s correlation to available market data including, but not limited to, intraday index, ADR, and exchange-traded fund movements.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Statement of Assets and Liabilities
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $997,423,803) | $1,109,889,955 |
| Affiliated issuers (cost $2,795,450) | 2,795,450 |
| Receivable for: | |
| Investments sold | 7,742,037 |
| Capital shares sold | 1,787,780 |
| Dividends | 354,935 |
| Trustees’ fees | 347,514 |
| Prepaid expenses | 9,757 |
| Other assets | 18,826 |
| Total assets | 1,122,946,254 |
| Liabilities | |
| Due to custodian | 3,079 |
| Payable for: | |
| Investments purchased | 4,559,811 |
| Capital shares redeemed | 632,605 |
| Management services fees | 24,858 |
| Distribution and/or service fees | 1,717 |
| Transfer agent fees | 154,014 |
| Trustees’ fees | 376,109 |
| Compensation of chief compliance officer | 117 |
| Other expenses | 47,728 |
| Total liabilities | 5,800,038 |
| Net assets applicable to outstanding capital stock | $1,117,146,216 |
| Represented by | |
| Paid in capital | 946,770,084 |
| Total distributable earnings (loss) | 170,376,132 |
| Total - representing net assets applicable to outstanding capital stock | $1,117,146,216 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 13 |
Statement of Assets and Liabilities (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Class A | |
| Net assets | $226,221,605 |
| Shares outstanding | 6,062,146 |
| Net asset value per share | $37.32 |
| Maximum sales charge | 5.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $39.60 |
| Advisor Class | |
| Net assets | $71,920,269 |
| Shares outstanding | 1,598,752 |
| Net asset value per share | $44.99 |
| Class C | |
| Net assets | $5,602,138 |
| Shares outstanding | 277,240 |
| Net asset value per share | $20.21 |
| Institutional Class | |
| Net assets | $481,234,039 |
| Shares outstanding | 11,122,393 |
| Net asset value per share | $43.27 |
| Institutional 2 Class | |
| Net assets | $136,683,797 |
| Shares outstanding | 3,031,819 |
| Net asset value per share | $45.08 |
| Institutional 3 Class | |
| Net assets | $193,679,648 |
| Shares outstanding | 4,436,338 |
| Net asset value per share | $43.66 |
| Class R | |
| Net assets | $1,804,720 |
| Shares outstanding | 48,765 |
| Net asset value per share | $37.01 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Statement of Operations
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $10,598,128 |
| Dividends — affiliated issuers | 146,221 |
| Foreign taxes withheld | (69,651) |
| Total income | 10,674,698 |
| Expenses: | |
| Management services fees | 4,920,362 |
| Distribution and/or service fees | |
| Class A | 310,850 |
| Class C | 31,245 |
| Class R | 4,661 |
| Transfer agent fees | |
| Class A | 187,786 |
| Advisor Class | 56,954 |
| Class C | 4,718 |
| Institutional Class | 398,737 |
| Institutional 2 Class | 40,203 |
| Institutional 3 Class | 6,761 |
| Class R | 1,409 |
| Trustees’ fees | 17,304 |
| Custodian fees | 18,335 |
| Printing and postage fees | 63,600 |
| Registration fees | 73,414 |
| Accounting services fees | 15,512 |
| Legal fees | 13,816 |
| Interest on interfund lending | 10,260 |
| Compensation of chief compliance officer | 117 |
| Other | 14,393 |
| Total expenses | 6,190,437 |
| Expense reduction | (2,363) |
| Total net expenses | 6,188,074 |
| Net investment income | 4,486,624 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 80,627,877 |
| Investments — affiliated issuers | (58,279) |
| Foreign currency translations | (274) |
| Net realized gain | 80,569,324 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (88,611,848) |
| Investments — affiliated issuers | 2,149,621 |
| Foreign currency translations | 655 |
| Net change in unrealized appreciation (depreciation) | (86,461,572) |
| Net realized and unrealized loss | (5,892,248) |
| Net decrease in net assets resulting from operations | $(1,405,624) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 15 |
Statement of Changes in Net Assets
| Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, 2023 | |
| Operations | ||
| Net investment income | $4,486,624 | $7,272,987 |
| Net realized gain | 80,569,324 | 11,652,483 |
| Net change in unrealized appreciation (depreciation) | (86,461,572) | (18,479,763) |
| Net increase (decrease) in net assets resulting from operations | (1,405,624) | 445,707 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (4,197,497) | (13,945,771) |
| Advisor Class | (1,052,813) | (2,764,530) |
| Class C | (188,534) | (633,272) |
| Institutional Class | (7,721,627) | (28,176,888) |
| Institutional 2 Class | (2,104,798) | (5,246,792) |
| Institutional 3 Class | (3,247,529) | (8,710,054) |
| Class R | (30,663) | (113,858) |
| Total distributions to shareholders | (18,543,461) | (59,591,165) |
| Increase (decrease) in net assets from capital stock activity | (97,505,592) | 147,585,905 |
| Total increase (decrease) in net assets | (117,454,677) | 88,440,447 |
| Net assets at beginning of period | 1,234,600,893 | 1,146,160,446 |
| Net assets at end of period | $1,117,146,216 | $1,234,600,893 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| October 31, 2023 (Unaudited) | April 30, 2023 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Shares sold | 236,536 | 9,481,898 | 583,191 | 22,595,872 |
| Distributions reinvested | 98,179 | 3,862,376 | 362,208 | 12,817,394 |
| Shares redeemed | (409,812) | (16,290,399) | (934,811) | (35,949,994) |
| Net increase (decrease) | (75,097) | (2,946,125) | 10,588 | (536,728) |
| Advisor Class | ||||
| Shares sold | 417,048 | 19,827,590 | 674,898 | 32,214,091 |
| Distributions reinvested | 19,887 | 942,238 | 57,135 | 2,432,012 |
| Shares redeemed | (268,392) | (12,668,852) | (509,459) | (23,528,750) |
| Net increase | 168,543 | 8,100,976 | 222,574 | 11,117,353 |
| Class C | ||||
| Shares sold | 28,389 | 618,472 | 67,987 | 1,473,734 |
| Distributions reinvested | 7,762 | 165,804 | 30,691 | 597,238 |
| Shares redeemed | (45,810) | (999,333) | (118,478) | (2,541,729) |
| Net decrease | (9,659) | (215,057) | (19,800) | (470,757) |
| Institutional Class | ||||
| Shares sold | 1,954,472 | 89,244,812 | 8,205,125 | 353,422,764 |
| Distributions reinvested | 136,563 | 6,223,152 | 568,409 | 23,351,820 |
| Shares redeemed | (4,891,287) | (219,928,081) | (6,316,981) | (281,131,997) |
| Net increase (decrease) | (2,800,252) | (124,460,117) | 2,456,553 | 95,642,587 |
| Institutional 2 Class | ||||
| Shares sold | 530,082 | 25,805,057 | 1,267,764 | 58,607,741 |
| Distributions reinvested | 44,336 | 2,104,636 | 122,865 | 5,246,792 |
| Shares redeemed | (574,488) | (27,638,706) | (520,518) | (24,090,097) |
| Net increase (decrease) | (70) | 270,987 | 870,111 | 39,764,436 |
| Institutional 3 Class | ||||
| Shares sold | 840,311 | 39,036,746 | 863,431 | 39,079,011 |
| Distributions reinvested | 52,447 | 2,410,464 | 147,320 | 6,094,970 |
| Shares redeemed | (428,005) | (19,823,760) | (953,022) | (42,957,800) |
| Net increase | 464,753 | 21,623,450 | 57,729 | 2,216,181 |
| Class R | ||||
| Shares sold | 9,121 | 366,892 | 4,862 | 184,687 |
| Distributions reinvested | 784 | 30,603 | 3,243 | 113,671 |
| Shares redeemed | (6,958) | (277,201) | (11,560) | (445,525) |
| Net increase (decrease) | 2,947 | 120,294 | (3,455) | (147,167) |
| Total net increase (decrease) | (2,248,835) | (97,505,592) | 3,594,300 | 147,585,905 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 17 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is
calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be
higher.
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $38.06 | 0.10 | (0.15) | (0.05) | (0.01) | (0.68) | (0.69) |
| Year Ended 4/30/2023 | $40.91 | 0.14 | (0.69) | (0.55) | (0.13) | (2.17) | (2.30) |
| Year Ended 4/30/2022 | $49.30 | 0.02 | (2.46) | (2.44) | (0.07) | (5.88) | (5.95) |
| Year Ended 4/30/2021 | $26.90 | 0.19 | 22.41 | 22.60 | (0.17) | (0.03) | (0.20) |
| Year Ended 4/30/2020 | $36.62 | 0.18 | (8.59) | (8.41) | (0.17) | (1.14) | (1.31) |
| Year Ended 4/30/2019 | $40.70 | 0.08 | (1.08) | (1.00) | (0.13) | (2.95) | (3.08) |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $45.73 | 0.18 | (0.19) | (0.01) | (0.05) | (0.68) | (0.73) |
| Year Ended 4/30/2023 | $48.60 | 0.28 | (0.78) | (0.50) | (0.20) | (2.17) | (2.37) |
| Year Ended 4/30/2022 | $57.47 | 0.15 | (2.94) | (2.79) | (0.20) | (5.88) | (6.08) |
| Year Ended 4/30/2021 | $31.32 | 0.37 | 26.06 | 26.43 | (0.25) | (0.03) | (0.28) |
| Year Ended 4/30/2020 | $42.37 | 0.30 | (9.98) | (9.68) | (0.23) | (1.14) | (1.37) |
| Year Ended 4/30/2019 | $46.56 | 0.21 | (1.25) | (1.04) | (0.20) | (2.95) | (3.15) |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $20.98 | (0.03) | (0.06) | (0.09) | — | (0.68) | (0.68) |
| Year Ended 4/30/2023 | $23.70 | (0.08) | (0.47) | (0.55) | — | (2.17) | (2.17) |
| Year Ended 4/30/2022 | $31.15 | (0.20) | (1.37) | (1.57) | — | (5.88) | (5.88) |
| Year Ended 4/30/2021 | $17.06 | (0.04) | 14.16 | 14.12 | — | (0.03) | (0.03) |
| Year Ended 4/30/2020 | $23.72 | (0.04) | (5.48) | (5.52) | — | (1.14) | (1.14) |
| Year Ended 4/30/2019 | $27.55 | (0.16) | (0.72) | (0.88) | — | (2.95) | (2.95) |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $44.01 | 0.18 | (0.19) | (0.01) | (0.05) | (0.68) | (0.73) |
| Year Ended 4/30/2023 | $46.87 | 0.27 | (0.76) | (0.49) | (0.20) | (2.17) | (2.37) |
| Year Ended 4/30/2022 | $55.63 | 0.15 | (2.82) | (2.67) | (0.21) | (5.88) | (6.09) |
| Year Ended 4/30/2021 | $30.33 | 0.33 | 25.25 | 25.58 | (0.25) | (0.03) | (0.28) |
| Year Ended 4/30/2020 | $41.07 | 0.30 | (9.67) | (9.37) | (0.23) | (1.14) | (1.37) |
| Year Ended 4/30/2019 | $45.24 | 0.20 | (1.22) | (1.02) | (0.20) | (2.95) | (3.15) |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $45.81 | 0.21 | (0.20) | 0.01 | (0.06) | (0.68) | (0.74) |
| Year Ended 4/30/2023 | $48.68 | 0.32 | (0.79) | (0.47) | (0.23) | (2.17) | (2.40) |
| Year Ended 4/30/2022 | $57.55 | 0.21 | (2.94) | (2.73) | (0.26) | (5.88) | (6.14) |
| Year Ended 4/30/2021 | $31.36 | 0.40 | 26.11 | 26.51 | (0.29) | (0.03) | (0.32) |
| Year Ended 4/30/2020 | $42.40 | 0.36 | (10.00) | (9.64) | (0.26) | (1.14) | (1.40) |
| Year Ended 4/30/2019 | $46.57 | 0.27 | (1.25) | (0.98) | (0.24) | (2.95) | (3.19) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $37.32 | (0.22%) | 1.26%(c) | 1.26%(c),(d) | 0.51% | 50% | $226,222 |
| Year Ended 4/30/2023 | $38.06 | (0.90%) | 1.24%(c) | 1.24%(c),(d) | 0.36% | 72% | $233,599 |
| Year Ended 4/30/2022 | $40.91 | (5.94%) | 1.26%(c) | 1.26%(c),(d) | 0.04% | 58% | $250,665 |
| Year Ended 4/30/2021 | $49.30 | 84.29% | 1.33%(c) | 1.31%(c),(d) | 0.53% | 43% | $286,411 |
| Year Ended 4/30/2020 | $26.90 | (23.69%) | 1.37%(c),(e) | 1.32%(c),(d),(e) | 0.55% | 60% | $152,006 |
| Year Ended 4/30/2019 | $36.62 | (2.38%) | 1.36%(c),(e) | 1.32%(c),(d),(e) | 0.21% | 62% | $234,765 |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $44.99 | (0.10%) | 1.01%(c) | 1.01%(c),(d) | 0.75% | 50% | $71,920 |
| Year Ended 4/30/2023 | $45.73 | (0.64%) | 0.99%(c) | 0.99%(c),(d) | 0.61% | 72% | $65,398 |
| Year Ended 4/30/2022 | $48.60 | (5.71%) | 1.01%(c) | 1.01%(c),(d) | 0.28% | 58% | $58,696 |
| Year Ended 4/30/2021 | $57.47 | 84.74% | 1.08%(c) | 1.06%(c),(d) | 0.87% | 43% | $54,621 |
| Year Ended 4/30/2020 | $31.32 | (23.49%) | 1.12%(c),(e) | 1.07%(c),(d),(e) | 0.79% | 60% | $19,077 |
| Year Ended 4/30/2019 | $42.37 | (2.14%) | 1.12%(c),(e) | 1.07%(c),(d),(e) | 0.48% | 62% | $29,064 |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $20.21 | (0.62%) | 2.01%(c) | 2.01%(c),(d) | (0.24%) | 50% | $5,602 |
| Year Ended 4/30/2023 | $20.98 | (1.62%) | 1.99%(c) | 1.99%(c),(d) | (0.39%) | 72% | $6,018 |
| Year Ended 4/30/2022 | $23.70 | (6.66%) | 2.01%(c) | 2.01%(c),(d) | (0.71%) | 58% | $7,269 |
| Year Ended 4/30/2021 | $31.15 | 82.90% | 2.08%(c) | 2.05%(c),(d) | (0.19%) | 43% | $8,516 |
| Year Ended 4/30/2020 | $17.06 | (24.24%) | 2.12%(c),(e) | 2.07%(c),(d),(e) | (0.20%) | 60% | $3,178 |
| Year Ended 4/30/2019 | $23.72 | (3.15%) | 2.10%(c),(e) | 2.07%(c),(d),(e) | (0.59%) | 62% | $7,969 |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $43.27 | (0.11%) | 1.00%(c) | 1.00%(c),(d) | 0.78% | 50% | $481,234 |
| Year Ended 4/30/2023 | $44.01 | (0.64%) | 0.99%(c) | 0.99%(c),(d) | 0.60% | 72% | $612,677 |
| Year Ended 4/30/2022 | $46.87 | (5.70%) | 1.01%(c) | 1.01%(c),(d) | 0.30% | 58% | $537,447 |
| Year Ended 4/30/2021 | $55.63 | 84.72% | 1.07%(c) | 1.05%(c),(d) | 0.77% | 43% | $440,126 |
| Year Ended 4/30/2020 | $30.33 | (23.48%) | 1.12%(c),(e) | 1.07%(c),(d),(e) | 0.79% | 60% | $106,186 |
| Year Ended 4/30/2019 | $41.07 | (2.16%) | 1.11%(c),(e) | 1.07%(c),(d),(e) | 0.47% | 62% | $192,878 |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $45.08 | (0.05%) | 0.91%(c) | 0.91%(c) | 0.86% | 50% | $136,684 |
| Year Ended 4/30/2023 | $45.81 | (0.59%) | 0.90%(c) | 0.90%(c) | 0.68% | 72% | $138,905 |
| Year Ended 4/30/2022 | $48.68 | (5.60%) | 0.91%(c) | 0.91%(c) | 0.39% | 58% | $105,229 |
| Year Ended 4/30/2021 | $57.55 | 84.97% | 0.95%(c) | 0.93%(c) | 0.93% | 43% | $116,249 |
| Year Ended 4/30/2020 | $31.36 | (23.39%) | 0.98%(c),(e) | 0.94%(c),(e) | 0.96% | 60% | $52,825 |
| Year Ended 4/30/2019 | $42.40 | (2.01%) | 0.97%(c),(e) | 0.94%(c),(e) | 0.61% | 62% | $39,831 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 19 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $44.38 | 0.21 | (0.18) | 0.03 | (0.07) | (0.68) | (0.75) |
| Year Ended 4/30/2023 | $47.23 | 0.33 | (0.77) | (0.44) | (0.24) | (2.17) | (2.41) |
| Year Ended 4/30/2022 | $56.01 | 0.23 | (2.84) | (2.61) | (0.29) | (5.88) | (6.17) |
| Year Ended 4/30/2021 | $30.53 | 0.39 | 25.43 | 25.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 4/30/2020 | $41.30 | 0.37 | (9.72) | (9.35) | (0.28) | (1.14) | (1.42) |
| Year Ended 4/30/2019 | $45.45 | 0.28 | (1.22) | (0.94) | (0.26) | (2.95) | (3.21) |
| Class R | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $37.79 | 0.05 | (0.15) | (0.10) | — | (0.68) | (0.68) |
| Year Ended 4/30/2023 | $40.66 | 0.04 | (0.68) | (0.64) | (0.06) | (2.17) | (2.23) |
| Year Ended 4/30/2022 | $49.08 | (0.09) | (2.45) | (2.54) | — | (5.88) | (5.88) |
| Year Ended 4/30/2021 | $26.79 | 0.11 | 22.30 | 22.41 | (0.09) | (0.03) | (0.12) |
| Year Ended 4/30/2020 | $36.50 | 0.10 | (8.56) | (8.46) | (0.11) | (1.14) | (1.25) |
| Year Ended 4/30/2019 | $40.61 | (0.01) | (1.09) | (1.10) | (0.06) | (2.95) | (3.01) |
| 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) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Ratios include interfund lending expense which is less than 0.01%. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Ratios include line of credit interest expense which is less than 0.01%. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $43.66 | (0.01%) | 0.86%(c) | 0.86%(c) | 0.89% | 50% | $193,680 |
| Year Ended 4/30/2023 | $44.38 | (0.53%) | 0.85%(c) | 0.85%(c) | 0.74% | 72% | $176,273 |
| Year Ended 4/30/2022 | $47.23 | (5.55%) | 0.86%(c) | 0.86%(c) | 0.44% | 58% | $184,850 |
| Year Ended 4/30/2021 | $56.01 | 85.03% | 0.90%(c) | 0.88%(c) | 0.96% | 43% | $178,586 |
| Year Ended 4/30/2020 | $30.53 | (23.34%) | 0.93%(c),(e) | 0.89%(c),(e) | 1.01% | 60% | $96,875 |
| Year Ended 4/30/2019 | $41.30 | (1.97%) | 0.92%(c),(e) | 0.89%(c),(e) | 0.64% | 62% | $108,132 |
| Class R | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $37.01 | (0.37%) | 1.51%(c) | 1.51%(c),(d) | 0.24% | 50% | $1,805 |
| Year Ended 4/30/2023 | $37.79 | (1.14%) | 1.49%(c) | 1.49%(c),(d) | 0.11% | 72% | $1,731 |
| Year Ended 4/30/2022 | $40.66 | (6.17%) | 1.51%(c) | 1.51%(c),(d) | (0.20%) | 58% | $2,003 |
| Year Ended 4/30/2021 | $49.08 | 83.85% | 1.58%(c) | 1.56%(c),(d) | 0.30% | 43% | $2,521 |
| Year Ended 4/30/2020 | $26.79 | (23.87%) | 1.62%(c),(e) | 1.57%(c),(d),(e) | 0.31% | 60% | $1,487 |
| Year Ended 4/30/2019 | $36.50 | (2.67%) | 1.60%(c),(e) | 1.57%(c),(d),(e) | (0.03%) | 62% | $2,048 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 21 |
Notes to Financial Statements
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 1. Organization
Columbia Small Cap Value Fund I
(the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class,
Institutional 3 Class and Class R shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also
described in the Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on
any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are
valued based on the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available,
the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect
events that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy approved by the Board of Trustees. Under the
policy, the Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S.
securities markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that
reasonably reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
| 22 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if
available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Foreign currency transactions and
translations
The values of all assets and
liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains
(losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes,
the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations
are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend
income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of an ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 23 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid semi-annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and
regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and
Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will,
among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data
format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month
transition period after the effective date of the amendments.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting
| 24 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
services. The management services fee is an annual
fee that is equal to a percentage of the Fund’s daily net assets that declines from 0.85% to 0.73% as the Fund’s net assets increase. The annualized effective management services fee rate for the six
months ended October 31, 2023 was 0.82% of the Fund’s average daily net assets.
Compensation of Board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transactions with affiliates
The Fund is permitted to engage in
purchase and/or sale transactions with affiliates and/or accounts that have a common investment manager (or affiliated investment managers), common directors/trustees, and/or common officers under specified conditions
outlined in a policy adopted by the Board, pursuant to Rule 17a-7 under the 1940 Act (cross-trades). The Board relies on quarterly written representation from the Fund’s Chief Compliance Officer that
cross-trades complied with approved policy.
For the six months ended October
31, 2023, the Fund engaged in cross-trades as follows:
| Purchases ($) | Sales ($) | Net realized gain (loss) ($) |
| 418,069 | — | — |
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. The Transfer Agent pays the fees of SS&C GIDS for
services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 25 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
For the six months ended October
31, 2023, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.15 |
| Advisor Class | 0.15 |
| Class C | 0.15 |
| Institutional Class | 0.15 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class R | 0.15 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended October 31, 2023, these minimum account balance fees reduced total
expenses of the Fund by $2,363.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a
monthly distribution fee to the Distributor at the maximum annual rates of 0.75% and 0.50% of the average daily net assets attributable to Class C and Class R shares of the Fund, respectively.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended October 31, 2023, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 5.75 | 0.50 - 1.00(a) | 33,564 |
| Class C | — | 1.00(b) | 50 |
| (a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| 26 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| Fee rate(s) contractual through August 31, 2024 | |
| Class A | 1.27% |
| Advisor Class | 1.02 |
| Class C | 2.02 |
| Institutional Class | 1.02 |
| Institutional 2 Class | 0.93 |
| Institutional 3 Class | 0.88 |
| Class R | 1.52 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are
not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At October 31, 2023, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 1,000,219,000 | 209,272,000 | (96,806,000) | 112,466,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at April 30, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (6,421,266) | — | (6,421,266) |
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 27 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Fund will elect to treat the following late-year ordinary losses and post-October capital losses at April 30, 2023 as arising on May 1, 2023.
| Late year ordinary losses ($) | Post-October capital losses ($) |
| — | 12,341,043 |
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $591,939,389 and $701,935,615, respectively, for the six months ended October 31, 2023. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject, by October 2,
2024, to a liquidity fee if daily net redemptions exceed 5% of net assets and, by April 2, 2024, to a discretionary liquidity fee up to 2% if the imposition of such a fee is determined to be in the best interest of
the Affiliated MMF.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended October 31, 2023 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Borrower | 5,358,333 | 5.69 | 12 |
Interest expense incurred by the
Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at October 31, 2023.
| 28 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the
higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility
matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee
is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each
participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in
each case, 1.00%.
The Fund had no borrowings during
the six months ended October 31, 2023.
Note 9. Significant
risks
Financial sector risk
The Fund is more susceptible to the
particular risks that may affect companies in the financial services sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the financial services sector are subject to
certain risks, including the risk of regulatory change, decreased liquidity in credit markets and unstable interest rates. Such companies may have concentrated portfolios, such as a high level of loans to one or more
industries or sectors, which makes them vulnerable to economic conditions that affect such industries or sectors. Performance of such companies may be affected by competitive pressures and exposure to investments,
agreements and counterparties, including credit products that, under certain circumstances, may lead to losses (e.g., subprime loans). Companies in the financial services sector are subject to extensive governmental
regulation that may limit the amount and types of loans and other financial commitments they can make, and interest rates and fees that they may charge. In addition, profitability of such companies is largely
dependent upon the availability and the cost of capital.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and
financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may
be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events –
could have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of
Russian currency. The extent and duration of the military action are impossible to predict but could continue to be significant. Market disruption caused by the Russian military action, and any counter measures or
responses thereto (including international sanctions, a downgrade in a country’s credit rating, purchasing and financing restrictions, boycotts, tariffs,
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 29 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
changes in consumer or purchaser preferences,
cyberattacks and espionage) could continue to have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced
market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain
international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Shareholder concentration risk
At October 31, 2023, one
unaffiliated shareholders of record owned 23.2% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Fund shares
sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including
its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses
for non-redeeming Fund shareholders.
Small- and mid-cap company risk
Investments in small- and
mid-capitalization companies (small- and mid-cap companies) often involve greater risks than investments in larger, more established companies (larger companies) because small- and mid-cap companies tend to have less
predictable earnings and may lack the management experience, financial resources, product diversification and competitive strengths of larger companies. Securities of small- and mid-cap companies may be less liquid
and more volatile than the securities of larger companies.
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its
affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to
perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and
regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to
the Fund.
| 30 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Approval of Management
Agreement
(Unaudited)
Columbia Management Investment
Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves
as the investment manager to Columbia Small Cap Value Fund I (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and
other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the
Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for
the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider,
Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal
Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and senior management
personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work,
deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in
determining whether to continue the Management Agreement.
The Board, at its June 22, 2023
Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various
factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that
they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors
considered included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more 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 mutual funds, as determined by Broadridge; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder 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). |
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 31 |
Approval of Management Agreement (continued)
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of
services provided by the Investment Manager
The Board analyzed various
reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered
the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The
Board further observed the enhancements to the investment risk management department’s processes, systems and oversight over the past several years. The Board also took into account the broad scope of
services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the
Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the
Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment
Manager, as well as the achievements in 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the
Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of
the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed
the acceptability of the terms of the Management Agreement, noting that no changes were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance
services provided to the Fund under the Management Agreement.
After reviewing these and related
factors (including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the
Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the
investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including
since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that the Fund’s performance
for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a
description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the
Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund
and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of
services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative
fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other
things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the
Fund’s contribution to the
| 32 | Columbia Small Cap Value Fund I | Semiannual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
(Unaudited)
Investment Manager’s profitability. The Board reviewed the fees charged to comparable institutional or other accounts/vehicles managed by the Investment Manager and discussed differences in how the products are managed and operated, thus explaining many of the differences in fees.
The Board considered the reports of
JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a
primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain
exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper
comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related
factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the
Management Agreement.
The Board also considered the
profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its
affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board
considered that the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. It also
took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial
products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive
compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Board considered the
potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, and whether those economies of scale were shared with the Fund through breakpoints in investment management
fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale
that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that
management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as
Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the
above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board,
including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the
Management Agreement.
| Columbia Small Cap Value Fund I | Semiannual Report 2023 | 33 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2023 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR287_04_N01_(12/23)
Columbia U.S.
Treasury Index Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia U.S. Treasury Index Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, is available on columbiathreadneedleus.com/investor/ or can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia U.S. Treasury Index
Fund | Semiannual Report 2023
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return that corresponds to the total return of the FTSE USBIG Treasury Index, before fees and expenses.
Portfolio management
Alan Erickson, CFA
Portfolio Manager
Managed Fund since 2017
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2023 — October 31, 2023 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 938.70 | 1,023.78 | 1.58 | 1.65 | 0.32 |
| Class C | 1,000.00 | 1,000.00 | 935.60 | 1,020.48 | 4.77 | 4.98 | 0.97 |
| Institutional Class | 1,000.00 | 1,000.00 | 938.50 | 1,024.55 | 0.84 | 0.87 | 0.17 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 938.40 | 1,024.55 | 0.84 | 0.87 | 0.17 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 938.90 | 1,024.55 | 0.84 | 0.87 | 0.17 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 5 |
Portfolio of Investments
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 7 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Notes to Portfolio of
Investments
| (a) | The rate shown is the seven-day current annualized yield at October 31, 2023. |
| (b) | 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 October 31, 2023 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, 5.630% | ||||||||
| 3,627,916 | 47,880,593 | (46,442,329) | 337 | 5,066,517 | 71 | 138,007 | 5,068,038 | |
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. 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). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 8 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
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.
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.
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.
The Fund’s Board of Trustees
(the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market
quotations are not readily available using 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 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. Representatives of Columbia Management Investment
Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2023:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| U.S. Treasury Obligations | — | 992,524,882 | — | 992,524,882 |
| Money Market Funds | 5,066,517 | — | — | 5,066,517 |
| Total Investments in Securities | 5,066,517 | 992,524,882 | — | 997,591,399 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 9 |
Statement of Assets and Liabilities
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,124,236,737) | $992,524,882 |
| Affiliated issuers (cost $5,065,963) | 5,066,517 |
| Receivable for: | |
| Investments sold | 12,660,633 |
| Capital shares sold | 2,914,331 |
| Dividends | 19,978 |
| Interest | 7,619,251 |
| Trustees’ fees | 126,219 |
| Expense reimbursement due from Investment Manager | 6,397 |
| Total assets | 1,020,938,208 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 13,237,882 |
| Capital shares redeemed | 247,295 |
| Distributions to shareholders | 2,721,451 |
| Management services fees | 10,991 |
| Distribution and/or service fees | 269 |
| Trustees’ fees | 156,545 |
| Total liabilities | 16,374,433 |
| Net assets applicable to outstanding capital stock | $1,004,563,775 |
| Represented by | |
| Paid in capital | 1,234,078,203 |
| Total distributable earnings (loss) | (229,514,428) |
| Total - representing net assets applicable to outstanding capital stock | $1,004,563,775 |
| Class A | |
| Net assets | $62,684,481 |
| Shares outstanding | 6,632,821 |
| Net asset value per share | $9.45 |
| Class C | |
| Net assets | $666,720 |
| Shares outstanding | 70,545 |
| Net asset value per share | $9.45 |
| Institutional Class | |
| Net assets | $476,066,027 |
| Shares outstanding | 50,357,241 |
| Net asset value per share | $9.45 |
| Institutional 2 Class | |
| Net assets | $17,716,454 |
| Shares outstanding | 1,878,115 |
| Net asset value per share | $9.43 |
| Institutional 3 Class | |
| Net assets | $447,430,093 |
| Shares outstanding | 47,061,345 |
| Net asset value per share | $9.51 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Statement of Operations
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $138,007 |
| Interest | 16,268,262 |
| Total income | 16,406,269 |
| Expenses: | |
| Management services fees | 2,255,330 |
| Distribution and/or service fees | |
| Class A | 49,995 |
| Class C | 3,287 |
| Trustees’ fees | 16,554 |
| Total expenses | 2,325,166 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (1,316,063) |
| Expense reduction | (600) |
| Total net expenses | 1,008,503 |
| Net investment income | 15,397,766 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (32,326,422) |
| Investments — affiliated issuers | 71 |
| Net realized loss | (32,326,351) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (52,029,974) |
| Investments — affiliated issuers | 337 |
| Net change in unrealized appreciation (depreciation) | (52,029,637) |
| Net realized and unrealized loss | (84,355,988) |
| Net decrease in net assets resulting from operations | $(68,958,222) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 11 |
Statement of Changes in Net Assets
| Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, 2023 | |
| Operations | ||
| Net investment income | $15,397,766 | $22,280,845 |
| Net realized loss | (32,326,351) | (60,258,787) |
| Net change in unrealized appreciation (depreciation) | (52,029,637) | 23,292,480 |
| Net decrease in net assets resulting from operations | (68,958,222) | (14,685,462) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (854,152) | (1,129,848) |
| Class C | (7,833) | (17,057) |
| Institutional Class | (6,699,638) | (9,181,389) |
| Institutional 2 Class | (309,559) | (432,012) |
| Institutional 3 Class | (7,366,982) | (11,631,519) |
| Total distributions to shareholders | (15,238,164) | (22,391,825) |
| Decrease in net assets from capital stock activity | (104,359,302) | (62,638,706) |
| Total decrease in net assets | (188,555,688) | (99,715,993) |
| Net assets at beginning of period | 1,193,119,463 | 1,292,835,456 |
| Net assets at end of period | $1,004,563,775 | $1,193,119,463 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| October 31, 2023 (Unaudited) | April 30, 2023 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Shares sold | 908,315 | 8,915,938 | 4,981,834 | 51,719,018 |
| Distributions reinvested | 32,235 | 315,535 | 37,842 | 383,115 |
| Shares redeemed | (1,027,155) | (10,100,925) | (1,675,602) | (17,122,290) |
| Net increase (decrease) | (86,605) | (869,452) | 3,344,074 | 34,979,843 |
| Class C | ||||
| Shares sold | 6,356 | 64,072 | 4,772 | 48,327 |
| Distributions reinvested | 798 | 7,816 | 1,682 | 17,057 |
| Shares redeemed | (23,589) | (231,635) | (160,991) | (1,623,685) |
| Net decrease | (16,435) | (159,747) | (154,537) | (1,558,301) |
| Institutional Class | ||||
| Shares sold | 8,900,206 | 87,482,955 | 12,613,230 | 126,812,970 |
| Distributions reinvested | 667,515 | 6,532,842 | 880,119 | 8,914,230 |
| Shares redeemed | (8,083,031) | (79,875,376) | (6,904,405) | (70,132,989) |
| Net increase | 1,484,690 | 14,140,421 | 6,588,944 | 65,594,211 |
| Institutional 2 Class | ||||
| Shares sold | 519,680 | 5,113,619 | 1,917,292 | 19,249,047 |
| Distributions reinvested | 19,521 | 191,385 | 21,859 | 220,532 |
| Shares redeemed | (1,440,993) | (14,167,178) | (3,325,044) | (34,809,795) |
| Net decrease | (901,792) | (8,862,174) | (1,385,893) | (15,340,216) |
| Institutional 3 Class | ||||
| Shares sold | 11,053,428 | 110,353,936 | 32,582,117 | 333,437,917 |
| Distributions reinvested | 745,036 | 7,337,342 | 1,137,179 | 11,596,979 |
| Shares redeemed | (22,843,014) | (226,299,628) | (48,027,100) | (491,349,139) |
| Net decrease | (11,044,550) | (108,608,350) | (14,307,804) | (146,314,243) |
| Total net decrease | (10,564,692) | (104,359,302) | (5,915,216) | (62,638,706) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 13 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is
calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be
higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $10.20 | 0.13 | (0.75) | (0.62) | (0.13) | — | (0.13) |
| Year Ended 4/30/2023 | $10.52 | 0.19 | (0.33) | (0.14) | (0.18) | — | (0.18) |
| Year Ended 4/30/2022 | $11.52 | 0.12 | (0.98) | (0.86) | (0.12) | (0.02) | (0.14) |
| Year Ended 4/30/2021 | $12.30 | 0.14 | (0.71) | (0.57) | (0.14) | (0.07) | (0.21) |
| Year Ended 4/30/2020 | $11.00 | 0.21 | 1.30 | 1.51 | (0.21) | — | (0.21) |
| Year Ended 4/30/2019 | $10.75 | 0.21 | 0.25 | 0.46 | (0.21) | — | (0.21) |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $10.20 | 0.10 | (0.75) | (0.65) | (0.10) | — | (0.10) |
| Year Ended 4/30/2023 | $10.52 | 0.11 | (0.31) | (0.20) | (0.12) | — | (0.12) |
| Year Ended 4/30/2022 | $11.52 | 0.04 | (0.97) | (0.93) | (0.05) | (0.02) | (0.07) |
| Year Ended 4/30/2021 | $12.29 | 0.06 | (0.70) | (0.64) | (0.06) | (0.07) | (0.13) |
| Year Ended 4/30/2020 | $11.00 | 0.13 | 1.29 | 1.42 | (0.13) | — | (0.13) |
| Year Ended 4/30/2019 | $10.75 | 0.13 | 0.25 | 0.38 | (0.13) | — | (0.13) |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $10.21 | 0.14 | (0.76) | (0.62) | (0.14) | — | (0.14) |
| Year Ended 4/30/2023 | $10.52 | 0.20 | (0.31) | (0.11) | (0.20) | — | (0.20) |
| Year Ended 4/30/2022 | $11.53 | 0.14 | (0.99) | (0.85) | (0.14) | (0.02) | (0.16) |
| Year Ended 4/30/2021 | $12.30 | 0.16 | (0.70) | (0.54) | (0.16) | (0.07) | (0.23) |
| Year Ended 4/30/2020 | $11.01 | 0.23 | 1.29 | 1.52 | (0.23) | — | (0.23) |
| Year Ended 4/30/2019 | $10.75 | 0.22 | 0.27 | 0.49 | (0.23) | — | (0.23) |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $10.19 | 0.14 | (0.76) | (0.62) | (0.14) | — | (0.14) |
| Year Ended 4/30/2023 | $10.50 | 0.20 | (0.31) | (0.11) | (0.20) | — | (0.20) |
| Year Ended 4/30/2022 | $11.50 | 0.13 | (0.97) | (0.84) | (0.14) | (0.02) | (0.16) |
| Year Ended 4/30/2021 | $12.27 | 0.16 | (0.70) | (0.54) | (0.16) | (0.07) | (0.23) |
| Year Ended 4/30/2020 | $10.98 | 0.23 | 1.29 | 1.52 | (0.23) | — | (0.23) |
| Year Ended 4/30/2019 | $10.73 | 0.23 | 0.25 | 0.48 | (0.23) | — | (0.23) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.45 | (6.13%) | 0.55% | 0.32%(c) | 2.60% | 25% | $62,684 |
| Year Ended 4/30/2023 | $10.20 | (1.26%) | 0.56% | 0.32%(c) | 1.86% | 56% | $68,565 |
| Year Ended 4/30/2022 | $10.52 | (7.54%) | 0.59% | 0.32%(c) | 1.03% | 31% | $35,499 |
| Year Ended 4/30/2021 | $11.52 | (4.66%) | 0.65% | 0.32%(c),(d) | 1.20% | 40% | $48,338 |
| Year Ended 4/30/2020 | $12.30 | 13.88% | 0.65% | 0.33%(c),(d) | 1.83% | 54% | $51,890 |
| Year Ended 4/30/2019 | $11.00 | 4.32% | 0.65% | 0.35%(c),(d) | 1.93% | 50% | $35,707 |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.45 | (6.44%) | 1.21% | 0.97%(c) | 1.93% | 25% | $667 |
| Year Ended 4/30/2023 | $10.20 | (1.90%) | 1.20% | 0.97%(c) | 1.04% | 56% | $888 |
| Year Ended 4/30/2022 | $10.52 | (8.14%) | 1.29% | 0.97%(c) | 0.37% | 31% | $2,540 |
| Year Ended 4/30/2021 | $11.52 | (5.22%) | 1.40% | 0.99%(c),(d) | 0.53% | 40% | $6,680 |
| Year Ended 4/30/2020 | $12.29 | 13.00% | 1.41% | 1.03%(c),(d) | 1.12% | 54% | $6,910 |
| Year Ended 4/30/2019 | $11.00 | 3.59% | 1.40% | 1.05%(c),(d) | 1.23% | 50% | $2,801 |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.45 | (6.15%) | 0.40% | 0.17%(c) | 2.75% | 25% | $476,066 |
| Year Ended 4/30/2023 | $10.21 | (1.02%) | 0.40% | 0.17%(c) | 1.98% | 56% | $498,884 |
| Year Ended 4/30/2022 | $10.52 | (7.48%) | 0.40% | 0.17%(c) | 1.18% | 31% | $444,883 |
| Year Ended 4/30/2021 | $11.53 | (4.44%) | 0.40% | 0.17%(c) | 1.35% | 40% | $537,273 |
| Year Ended 4/30/2020 | $12.30 | 13.95% | 0.40% | 0.18%(c) | 1.98% | 54% | $581,931 |
| Year Ended 4/30/2019 | $11.01 | 4.57% | 0.40% | 0.20%(c) | 2.08% | 50% | $323,226 |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.43 | (6.16%) | 0.40% | 0.17% | 2.72% | 25% | $17,716 |
| Year Ended 4/30/2023 | $10.19 | (1.02%) | 0.40% | 0.17% | 1.94% | 56% | $28,314 |
| Year Ended 4/30/2022 | $10.50 | (7.42%) | 0.40% | 0.17% | 1.18% | 31% | $43,738 |
| Year Ended 4/30/2021 | $11.50 | (4.45%) | 0.40% | 0.17% | 1.35% | 40% | $53,191 |
| Year Ended 4/30/2020 | $12.27 | 13.98% | 0.40% | 0.18% | 1.98% | 54% | $51,284 |
| Year Ended 4/30/2019 | $10.98 | 4.48% | 0.40% | 0.20% | 2.10% | 50% | $35,855 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 15 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $10.27 | 0.14 | (0.76) | (0.62) | (0.14) | — | (0.14) |
| Year Ended 4/30/2023 | $10.58 | 0.20 | (0.31) | (0.11) | (0.20) | — | (0.20) |
| Year Ended 4/30/2022 | $11.59 | 0.14 | (0.99) | (0.85) | (0.14) | (0.02) | (0.16) |
| Year Ended 4/30/2021 | $12.37 | 0.16 | (0.71) | (0.55) | (0.16) | (0.07) | (0.23) |
| Year Ended 4/30/2020 | $11.07 | 0.23 | 1.30 | 1.53 | (0.23) | — | (0.23) |
| Year Ended 4/30/2019 | $10.81 | 0.23 | 0.26 | 0.49 | (0.23) | — | (0.23) |
| 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) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (d) | Ratios include the impact of voluntary waivers paid by the Investment Manager. For the periods indicated below, if the Investment Manager had not paid these voluntary waivers, the Fund’s net expense ratio would increase by: |
| 4/30/2021 | 4/30/2020 | 4/30/2019 | |
| Class A | 0.03% | 0.10% | 0.10% |
| Class C | 0.05% | 0.15% | 0.15% |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.51 | (6.11%) | 0.40% | 0.17% | 2.75% | 25% | $447,430 |
| Year Ended 4/30/2023 | $10.27 | (1.00%) | 0.40% | 0.17% | 1.94% | 56% | $596,470 |
| Year Ended 4/30/2022 | $10.58 | (7.44%) | 0.40% | 0.17% | 1.19% | 31% | $766,175 |
| Year Ended 4/30/2021 | $11.59 | (4.49%) | 0.40% | 0.17% | 1.33% | 40% | $592,772 |
| Year Ended 4/30/2020 | $12.37 | 13.97% | 0.40% | 0.18% | 2.00% | 54% | $415,616 |
| Year Ended 4/30/2019 | $11.07 | 4.56% | 0.40% | 0.20% | 2.10% | 50% | $445,200 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 17 |
Notes to Financial Statements
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 1. Organization
Columbia U.S. Treasury Index Fund
(the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Institutional Class, Institutional 2 Class and
Institutional 3 Class shares are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued based on prices obtained from pricing services, which are intended to reflect market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing
techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes.
Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities
maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if
available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 18 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. The Fund may also adjust
accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. A defaulted debt security is removed from non-accrual status when the issuer resumes interest
payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and
regulatory updates
Tailored Shareholder Reports
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 19 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
In October 2022, the Securities and
Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will,
among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data
format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month
transition period after the effective date of the amendments.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to 0.40% of the Fund’s
daily net assets.
The Investment Manager, from the
management services fee it receives from the Fund, pays all operating expenses of the Fund, with the exception of brokerage fees and commissions, taxes, interest, fees and expenses of Board of Trustees who are not
officers, directors or employees of the Investment Manager or its affiliates, distribution and/or shareholder servicing and any extraordinary non-recurring expenses that may arise, including litigation fees.
Compensation of Board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. A portion of the Chief Compliance Officer’s total compensation is allocated to the Fund, along with other allocations to
affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets. The expenses of the Chief Compliance Officer allocated to the Fund are payable by the
Investment Manager.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent.
The transfer agency fees are
payable by the Investment Manager. The Transfer Agent pays the fees of SS&C GIDS for services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund. The Transfer
Agent also receives compensation from the Investment Manager for various shareholder services and reimbursements for certain out-of-pocket expenses.
| 20 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended October 31, 2023, these minimum account balance fees reduced total
expenses of the Fund by $600.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.15% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.65% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges
For the six months ended October
31, 2023, there were no sales charges, including front-end charges and CDSCs, received by the Distributor for distributing Fund shares.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| Fee rate(s) contractual through August 31, 2024 | |
| Class A | 0.32% |
| Class C | 0.97 |
| Institutional Class | 0.17 |
| Institutional 2 Class | 0.17 |
| Institutional 3 Class | 0.17 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are
not recoverable by the Investment Manager or its affiliates in future periods.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 21 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At October 31, 2023, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized (depreciation) ($) |
| 1,129,303,000 | 1,000 | (131,713,000) | (131,712,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at April 30, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (7,906,155) | (52,484,666) | (60,390,821) |
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $271,366,819 and $378,844,607, respectively, for the six months ended October 31, 2023, of which $271,366,819
and $378,844,607, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject, by October 2,
2024, to a liquidity fee if daily net redemptions exceed 5% of net assets and, by April 2, 2024, to a discretionary liquidity fee up to 2% if the imposition of such a fee is determined to be in the best interest of
the Affiliated MMF.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
| 22 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The Fund did not borrow or lend
money under the Interfund Program during the six months ended October 31, 2023.
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the
higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility
matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee
is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each
participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in
each case, 1.00%.
The Fund had no borrowings during
the six months ended October 31, 2023.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by
governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may
negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt
security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and
financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may
be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events
such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events –
could have a significant negative impact on global economic and market conditions.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 23 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of
Russian currency. The extent and duration of the military action are impossible to predict but could continue to be significant. Market disruption caused by the Russian military action, and any counter measures or
responses thereto (including international sanctions, a downgrade in a country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences,
cyberattacks and espionage) could continue to have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced
market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain
international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Passive investment risk
The Fund is not
“actively” managed and may be affected by a general decline in market segments related to its Index’s investment exposures. The Fund invests in securities or instruments included in, or believed by
the Investment Manager to be representative of the Index regardless of their investment merits. The Fund does not seek temporary defensive positions when markets decline or appear overvalued. The decision of whether
to remove a security from the tracking index is made by an independent index provider who is not affiliated with the Fund or the Investment Manager.
Shareholder concentration risk
At October 31, 2023, affiliated
shareholders of record owned 85.9% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund.
In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less
liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its
affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to
perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and
regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to
the Fund.
| 24 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Approval of Management
Agreement
(Unaudited)
Columbia Management Investment
Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves
as the investment manager to Columbia U.S. Treasury Index Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and
other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the
Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for
the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider,
Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal
Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and senior management
personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work,
deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in
determining whether to continue the Management Agreement.
The Board, at its June 22, 2023
Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various
factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that
they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors
considered included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more 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 mutual funds, as determined by Broadridge; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder 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). |
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 25 |
Approval of Management Agreement (continued)
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of
services provided by the Investment Manager
The Board analyzed various
reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered
the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The
Board further observed the enhancements to the investment risk management department’s processes, systems and oversight over the past several years. The Board also took into account the broad scope of
services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the
Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the
Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment
Manager, as well as the achievements in 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the
Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of
the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed
the acceptability of the terms of the Management Agreement, noting that no changes were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance
services provided to the Fund under the Management Agreement.
After reviewing these and related
factors (including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the
Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the
investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including
since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that the Fund’s
performance for certain periods ranked above median based on information provided by Broadridge.The Board also reviewed a description of the third-party data provider’s methodology for identifying the
Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the
Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund
and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of
services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative
fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other
things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the
Fund’s contribution to the Investment Manager’s profitability.
| 26 | Columbia U.S. Treasury Index Fund | Semiannual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) was somewhat higher than the median ratio. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
(Unaudited)
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) was somewhat higher than the median ratio. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the Management Agreement.
The Board also considered the
profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its
affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board
considered that the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. It also
took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial
products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive
compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Board considered the
economies of scale that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. The Board took into account, however,
that the Management Agreement already provides for a relatively low flat fee regardless of the Fund’s asset level, and requires Columbia Threadneedle to provide investment advice, as well as administrative,
accounting and other services to the Fund.
Conclusion
The Board reviewed all of the
above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board,
including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the
Management Agreement.
| Columbia U.S. Treasury Index Fund | Semiannual Report 2023 | 27 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2023 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR237_04_N01_(12/23)
Columbia Corporate
Income Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Corporate Income Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, is available on columbiathreadneedleus.com/investor/ or can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Corporate Income
Fund | Semiannual Report 2023
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, consisting primarily of current income and secondarily of capital appreciation.
Portfolio management
Tom Murphy, CFA
Lead Portfolio Manager
Managed Fund since 2011
Royce Wilson, CFA
Portfolio Manager
Managed Fund since 2020
John Dawson, CFA
Portfolio Manager
Managed Fund since 2020
Shannon Rinehart, CFA
Portfolio Manager
Managed Fund since February 2022
| Columbia Corporate Income Fund | Semiannual Report 2023 | 3 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| May 1, 2023 — October 31, 2023 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 945.90 | 1,020.99 | 4.30 | 4.47 | 0.87 |
| Advisor Class | 1,000.00 | 1,000.00 | 948.00 | 1,022.26 | 3.07 | 3.19 | 0.62 |
| Class C | 1,000.00 | 1,000.00 | 943.20 | 1,018.19 | 7.01 | 7.28 | 1.42 |
| Institutional Class | 1,000.00 | 1,000.00 | 947.10 | 1,022.26 | 3.07 | 3.19 | 0.62 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 947.50 | 1,022.87 | 2.47 | 2.57 | 0.50 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 948.90 | 1,023.12 | 2.23 | 2.31 | 0.45 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 5 |
Portfolio of Investments
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 7 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 9 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 11 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 13 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 15 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 17 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
At October 31, 2023,
securities and/or cash totaling $4,342,716 were pledged as collateral.
Investments in
derivatives
| Long futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Long Bond | 812 | 12/2023 | USD | 88,863,250 | — | (6,950,846) |
| U.S. Treasury 2-Year Note | 795 | 12/2023 | USD | 160,925,391 | — | (865,388) |
| U.S. Treasury 5-Year Note | 1,176 | 12/2023 | USD | 122,864,438 | — | (1,387,549) |
| Total | — | (9,203,783) | ||||
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 10-Year Note | (2,163) | 12/2023 | USD | (229,649,766) | 7,297,057 | — |
| U.S. Treasury Ultra 10-Year Note | (694) | 12/2023 | USD | (75,526,719) | 2,443,750 | — |
| U.S. Treasury Ultra Bond | (158) | 12/2023 | USD | (17,784,875) | 2,421,785 | — |
| Total | 12,162,592 | — | ||||
Notes to Portfolio of
Investments
| (a) | Non-income producing investment. |
| (b) | 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 October 31, 2023, the total value of these securities amounted to $396,789,994, which represents 25.21% of total net assets. |
| (c) | 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 October 31, 2023. |
| (d) | Represents a security purchased on a when-issued basis. |
| (e) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At October 31, 2023, the total value of these securities amounted to $9,525, which represents less than 0.01% of total net assets. |
| (f) | Represents a security in default. |
| (g) | Valuation based on significant unobservable inputs. |
| (h) | Payment-in-kind security. Interest can be paid by issuing additional par of the security or in cash. |
| (i) | Principal and interest may not be guaranteed by a governmental entity. |
| (j) | The stated interest rate represents the weighted average interest rate at October 31, 2023 of contracts within the senior loan facility. Interest rates on contracts are primarily determined either weekly, monthly or quarterly by reference to the indicated base lending rate and spread and the reset period. These base lending rates are primarily the LIBOR and other short-term rates. Base lending rates may be subject to a floor or minimum rate. The interest rate for senior loans purchased on a when-issued or delayed delivery basis will be determined upon settlement, therefore no interest rate is disclosed. Senior loans often require prepayments from excess cash flows or permit the borrowers to repay at their election. The degree to which borrowers repay cannot be predicted with accuracy. As a result, remaining maturities of senior loans may be less than the stated maturities. Generally, the Fund is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. |
| (k) | Variable rate security. The interest rate shown was the current rate as of October 31, 2023. |
| (l) | The rate shown is the seven-day current annualized yield at October 31, 2023. |
| (m) | 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 October 31, 2023 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, 5.630% | ||||||||
| 93,606,501 | 499,010,806 | (553,597,255) | 11,440 | 39,031,492 | (5,458) | 1,738,246 | 39,043,205 | |
Abbreviation Legend
| SOFR | Secured Overnight Financing Rate |
Currency Legend
| USD | US Dollar |
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:
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 19 |
Portfolio of Investments (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Fair value measurements (continued)
| ■ | 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). |
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.
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.
The Fund’s Board of Trustees
(the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for determining the fair value of the assets of the Fund for which market
quotations are not readily available using 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 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. Representatives of Columbia Management Investment
Advisers, LLC report to the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at October 31, 2023:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Financials | 100,736 | — | — | 100,736 |
| Total Common Stocks | 100,736 | — | — | 100,736 |
| Convertible Bonds | — | 241,388 | — | 241,388 |
| Corporate Bonds & Notes | — | 1,473,271,109 | 9,525 | 1,473,280,634 |
| Foreign Government Obligations | — | 816,900 | — | 816,900 |
| Senior Loans | — | 2,957,801 | — | 2,957,801 |
| U.S. Treasury Obligations | — | 36,550,022 | — | 36,550,022 |
| Money Market Funds | 39,031,492 | — | — | 39,031,492 |
| Total Investments in Securities | 39,132,228 | 1,513,837,220 | 9,525 | 1,552,978,973 |
| Investments in Derivatives | ||||
| Asset | ||||
| Futures Contracts | 12,162,592 | — | — | 12,162,592 |
| Liability | ||||
| Futures Contracts | (9,203,783) | — | — | (9,203,783) |
| Total | 42,091,037 | 1,513,837,220 | 9,525 | 1,555,937,782 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
Derivative instruments are valued at
unrealized appreciation (depreciation).
The Fund does not hold any
significant investments (greater than one percent of net assets) categorized as Level 3.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 20 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Statement of Assets and Liabilities
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,732,080,230) | $1,513,947,481 |
| Affiliated issuers (cost $39,027,471) | 39,031,492 |
| Cash | 14,393 |
| Margin deposits on: | |
| Futures contracts | 4,342,716 |
| Receivable for: | |
| Investments sold | 3,416,803 |
| Capital shares sold | 7,173,801 |
| Dividends | 291,986 |
| Interest | 18,689,970 |
| Foreign tax reclaims | 15,523 |
| Variation margin for futures contracts | 254,354 |
| Trustees’ fees | 180,262 |
| Expense reimbursement due from Investment Manager | 4,033 |
| Prepaid expenses | 13,148 |
| Other assets | 8,396 |
| Total assets | 1,587,384,358 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 25,203 |
| Investments purchased on a delayed delivery basis | 5,242,649 |
| Capital shares redeemed | 1,685,370 |
| Distributions to shareholders | 6,116,678 |
| Variation margin for futures contracts | 251,647 |
| Management services fees | 21,130 |
| Distribution and/or service fees | 728 |
| Transfer agent fees | 153,982 |
| Trustees’ fees | 213,501 |
| Compensation of chief compliance officer | 154 |
| Other expenses | 37,232 |
| Total liabilities | 13,748,274 |
| Net assets applicable to outstanding capital stock | $1,573,636,084 |
| Represented by | |
| Paid in capital | 1,941,951,356 |
| Total distributable earnings (loss) | (368,315,272) |
| Total - representing net assets applicable to outstanding capital stock | $1,573,636,084 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 21 |
Statement of Assets and Liabilities (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
| Class A | |
| Net assets | $90,383,130 |
| Shares outstanding | 10,767,929 |
| Net asset value per share | $8.39 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $8.81 |
| Advisor Class | |
| Net assets | $128,533,898 |
| Shares outstanding | 15,336,107 |
| Net asset value per share | $8.38 |
| Class C | |
| Net assets | $5,051,166 |
| Shares outstanding | 601,937 |
| Net asset value per share | $8.39 |
| Institutional Class | |
| Net assets | $589,829,686 |
| Shares outstanding | 70,269,816 |
| Net asset value per share | $8.39 |
| Institutional 2 Class | |
| Net assets | $67,445,621 |
| Shares outstanding | 8,045,906 |
| Net asset value per share | $8.38 |
| Institutional 3 Class | |
| Net assets | $692,392,583 |
| Shares outstanding | 82,535,295 |
| Net asset value per share | $8.39 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 22 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Statement of Operations
Six Months Ended October 31, 2023 (Unaudited)
Six Months Ended October 31, 2023 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $1,738,246 |
| Interest | 37,748,960 |
| Interfund lending | 420 |
| Foreign taxes withheld | (91,340) |
| Total income | 39,396,286 |
| Expenses: | |
| Management services fees | 4,008,179 |
| Distribution and/or service fees | |
| Class A | 118,067 |
| Class C | 19,175 |
| Transfer agent fees | |
| Class A | 93,588 |
| Advisor Class | 125,505 |
| Class C | 4,740 |
| Institutional Class | 595,028 |
| Institutional 2 Class | 19,998 |
| Institutional 3 Class | 20,342 |
| Trustees’ fees | 20,256 |
| Custodian fees | 7,649 |
| Printing and postage fees | 49,195 |
| Registration fees | 81,484 |
| Accounting services fees | 15,512 |
| Legal fees | 16,431 |
| Compensation of chief compliance officer | 153 |
| Other | 16,651 |
| Total expenses | 5,211,953 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (659,308) |
| Fees waived by transfer agent | |
| Institutional 2 Class | (2,115) |
| Institutional 3 Class | (20,342) |
| Expense reduction | (765) |
| Total net expenses | 4,529,423 |
| Net investment income | 34,866,863 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (38,818,333) |
| Investments — affiliated issuers | (5,458) |
| Futures contracts | 2,694,816 |
| Net realized loss | (36,128,975) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (85,648,623) |
| Investments — affiliated issuers | 11,440 |
| Futures contracts | 2,236,790 |
| Net change in unrealized appreciation (depreciation) | (83,400,393) |
| Net realized and unrealized loss | (119,529,368) |
| Net decrease in net assets resulting from operations | $(84,662,505) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 23 |
Statement of Changes in Net Assets
| Six Months Ended October 31, 2023 (Unaudited) | Year Ended April 30, 2023 | |
| Operations | ||
| Net investment income | $34,866,863 | $54,327,403 |
| Net realized loss | (36,128,975) | (95,510,857) |
| Net change in unrealized appreciation (depreciation) | (83,400,393) | 63,655,411 |
| Net increase (decrease) in net assets resulting from operations | (84,662,505) | 22,471,957 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (1,858,452) | (3,226,634) |
| Advisor Class | (2,658,177) | (4,930,641) |
| Class C | (81,495) | (80,248) |
| Institutional Class | (12,571,566) | (15,586,268) |
| Institutional 2 Class | (1,538,567) | (2,232,056) |
| Institutional 3 Class | (15,924,622) | (28,891,488) |
| Total distributions to shareholders | (34,632,879) | (54,947,335) |
| Increase in net assets from capital stock activity | 65,441,486 | 61,746,003 |
| Total increase (decrease) in net assets | (53,853,898) | 29,270,625 |
| Net assets at beginning of period | 1,627,489,982 | 1,598,219,357 |
| Net assets at end of period | $1,573,636,084 | $1,627,489,982 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 24 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| October 31, 2023 (Unaudited) | April 30, 2023 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Shares sold | 1,346,705 | 11,863,679 | 1,145,923 | 10,257,140 |
| Distributions reinvested | 200,049 | 1,750,706 | 341,069 | 3,036,558 |
| Shares redeemed | (1,072,995) | (9,423,949) | (2,893,914) | (25,940,328) |
| Net increase (decrease) | 473,759 | 4,190,436 | (1,406,922) | (12,646,630) |
| Advisor Class | ||||
| Shares sold | 3,304,180 | 29,075,284 | 2,491,183 | 22,372,358 |
| Distributions reinvested | 228,487 | 1,994,395 | 372,622 | 3,316,303 |
| Shares redeemed | (1,026,925) | (8,996,010) | (10,773,206) | (94,579,339) |
| Net increase (decrease) | 2,505,742 | 22,073,669 | (7,909,401) | (68,890,678) |
| Class C | ||||
| Shares sold | 301,236 | 2,672,628 | 238,787 | 2,117,148 |
| Distributions reinvested | 9,122 | 79,673 | 8,647 | 76,996 |
| Shares redeemed | (126,915) | (1,115,985) | (111,909) | (994,134) |
| Net increase | 183,443 | 1,636,316 | 135,525 | 1,200,010 |
| Institutional Class | ||||
| Shares sold | 13,687,427 | 120,039,816 | 33,329,267 | 299,094,986 |
| Distributions reinvested | 1,302,019 | 11,390,024 | 1,502,621 | 13,398,413 |
| Shares redeemed | (8,502,773) | (74,305,040) | (12,341,543) | (110,298,480) |
| Net increase | 6,486,673 | 57,124,800 | 22,490,345 | 202,194,919 |
| Institutional 2 Class | ||||
| Shares sold | 707,018 | 6,174,355 | 5,052,342 | 43,885,536 |
| Distributions reinvested | 175,914 | 1,537,996 | 251,152 | 2,230,890 |
| Shares redeemed | (890,896) | (7,782,989) | (2,801,937) | (25,252,147) |
| Net increase (decrease) | (7,964) | (70,638) | 2,501,557 | 20,864,279 |
| Institutional 3 Class | ||||
| Shares sold | 12,334,717 | 106,008,679 | 18,212,248 | 163,568,303 |
| Distributions reinvested | 1,658,784 | 14,519,078 | 2,969,420 | 26,431,298 |
| Shares redeemed | (16,034,742) | (140,040,854) | (30,449,107) | (270,975,498) |
| Net decrease | (2,041,241) | (19,513,097) | (9,267,439) | (80,975,897) |
| Total net increase | 7,600,412 | 65,441,486 | 6,543,665 | 61,746,003 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 25 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one year. The portfolio turnover rate is
calculated without regard to purchase and sales transactions of short-term instruments and certain derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be
higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.05 | 0.18 | (0.66) | (0.48) | (0.18) | — | (0.18) |
| Year Ended 4/30/2023 | $9.22 | 0.29 | (0.16) | 0.13 | (0.30) | — | (0.30) |
| Year Ended 4/30/2022 | $10.77 | 0.21 | (1.32) | (1.11) | (0.22) | (0.22) | (0.44) |
| Year Ended 4/30/2021 | $10.87 | 0.23 | 0.38 | 0.61 | (0.24) | (0.47) | (0.71) |
| Year Ended 4/30/2020 | $10.15 | 0.29 | 0.72 | 1.01 | (0.29) | — | (0.29) |
| Year Ended 4/30/2019 | $9.88 | 0.30 | 0.27 | 0.57 | (0.30) | — | (0.30) |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.03 | 0.19 | (0.65) | (0.46) | (0.19) | — | (0.19) |
| Year Ended 4/30/2023 | $9.21 | 0.31 | (0.17) | 0.14 | (0.32) | — | (0.32) |
| Year Ended 4/30/2022 | $10.76 | 0.25 | (1.34) | (1.09) | (0.24) | (0.22) | (0.46) |
| Year Ended 4/30/2021 | $10.85 | 0.27 | 0.37 | 0.64 | (0.26) | (0.47) | (0.73) |
| Year Ended 4/30/2020 | $10.14 | 0.32 | 0.71 | 1.03 | (0.32) | — | (0.32) |
| Year Ended 4/30/2019 | $9.87 | 0.33 | 0.27 | 0.60 | (0.33) | — | (0.33) |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.05 | 0.15 | (0.66) | (0.51) | (0.15) | — | (0.15) |
| Year Ended 4/30/2023 | $9.22 | 0.25 | (0.17) | 0.08 | (0.25) | — | (0.25) |
| Year Ended 4/30/2022 | $10.77 | 0.15 | (1.32) | (1.17) | (0.16) | (0.22) | (0.38) |
| Year Ended 4/30/2021 | $10.86 | 0.17 | 0.38 | 0.55 | (0.17) | (0.47) | (0.64) |
| Year Ended 4/30/2020 | $10.15 | 0.23 | 0.71 | 0.94 | (0.23) | — | (0.23) |
| Year Ended 4/30/2019 | $9.88 | 0.24 | 0.27 | 0.51 | (0.24) | — | (0.24) |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.05 | 0.19 | (0.66) | (0.47) | (0.19) | — | (0.19) |
| Year Ended 4/30/2023 | $9.22 | 0.32 | (0.17) | 0.15 | (0.32) | — | (0.32) |
| Year Ended 4/30/2022 | $10.77 | 0.24 | (1.33) | (1.09) | (0.24) | (0.22) | (0.46) |
| Year Ended 4/30/2021 | $10.87 | 0.26 | 0.37 | 0.63 | (0.26) | (0.47) | (0.73) |
| Year Ended 4/30/2020 | $10.15 | 0.32 | 0.72 | 1.04 | (0.32) | — | (0.32) |
| Year Ended 4/30/2019 | $9.88 | 0.33 | 0.27 | 0.60 | (0.33) | — | (0.33) |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.04 | 0.19 | (0.66) | (0.47) | (0.19) | — | (0.19) |
| Year Ended 4/30/2023 | $9.21 | 0.33 | (0.17) | 0.16 | (0.33) | — | (0.33) |
| Year Ended 4/30/2022 | $10.76 | 0.25 | (1.32) | (1.07) | (0.26) | (0.22) | (0.48) |
| Year Ended 4/30/2021 | $10.85 | 0.27 | 0.38 | 0.65 | (0.27) | (0.47) | (0.74) |
| Year Ended 4/30/2020 | $10.14 | 0.33 | 0.71 | 1.04 | (0.33) | — | (0.33) |
| Year Ended 4/30/2019 | $9.87 | 0.35 | 0.26 | 0.61 | (0.34) | — | (0.34) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 26 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $8.39 | (5.41%) | 0.97% | 0.87%(c) | 3.97% | 57% | $90,383 |
| Year Ended 4/30/2023 | $9.05 | 1.51% | 0.94% | 0.87%(c) | 3.31% | 79% | $93,141 |
| Year Ended 4/30/2022 | $9.22 | (10.79%) | 0.92% | 0.87%(c) | 2.03% | 80% | $107,905 |
| Year Ended 4/30/2021 | $10.77 | 5.47% | 0.93% | 0.88%(c) | 2.10% | 74% | $88,537 |
| Year Ended 4/30/2020 | $10.87 | 10.10% | 0.95% | 0.91%(c) | 2.77% | 91% | $68,880 |
| Year Ended 4/30/2019 | $10.15 | 5.93% | 0.93% | 0.91%(c) | 3.07% | 65% | $60,085 |
| Advisor Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $8.38 | (5.20%) | 0.72% | 0.62%(c) | 4.23% | 57% | $128,534 |
| Year Ended 4/30/2023 | $9.03 | 1.65% | 0.69% | 0.62%(c) | 3.51% | 79% | $115,911 |
| Year Ended 4/30/2022 | $9.21 | (10.58%) | 0.67% | 0.62%(c) | 2.54% | 80% | $190,943 |
| Year Ended 4/30/2021 | $10.76 | 5.83% | 0.68% | 0.63%(c) | 2.38% | 74% | $10,624 |
| Year Ended 4/30/2020 | $10.85 | 10.28% | 0.70% | 0.66%(c) | 3.02% | 91% | $18,086 |
| Year Ended 4/30/2019 | $10.14 | 6.20% | 0.68% | 0.66%(c) | 3.32% | 65% | $8,289 |
| Class C | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $8.39 | (5.68%) | 1.52% | 1.42%(c) | 3.42% | 57% | $5,051 |
| Year Ended 4/30/2023 | $9.05 | 0.95% | 1.50% | 1.42%(c) | 2.82% | 79% | $3,785 |
| Year Ended 4/30/2022 | $9.22 | (11.28%) | 1.54% | 1.42%(c) | 1.41% | 80% | $2,609 |
| Year Ended 4/30/2021 | $10.77 | 4.96% | 1.68% | 1.45%(c) | 1.53% | 74% | $4,450 |
| Year Ended 4/30/2020 | $10.86 | 9.35% | 1.70% | 1.51%(c) | 2.17% | 91% | $5,646 |
| Year Ended 4/30/2019 | $10.15 | 5.29% | 1.68% | 1.51%(c) | 2.45% | 65% | $5,045 |
| Institutional Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $8.39 | (5.29%) | 0.72% | 0.62%(c) | 4.23% | 57% | $589,830 |
| Year Ended 4/30/2023 | $9.05 | 1.76% | 0.70% | 0.62%(c) | 3.62% | 79% | $577,092 |
| Year Ended 4/30/2022 | $9.22 | (10.57%) | 0.67% | 0.62%(c) | 2.24% | 80% | $380,743 |
| Year Ended 4/30/2021 | $10.77 | 5.73% | 0.68% | 0.63%(c) | 2.36% | 74% | $431,331 |
| Year Ended 4/30/2020 | $10.87 | 10.37% | 0.70% | 0.66%(c) | 3.02% | 91% | $364,875 |
| Year Ended 4/30/2019 | $10.15 | 6.19% | 0.68% | 0.66%(c) | 3.31% | 65% | $579,312 |
| Institutional 2 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $8.38 | (5.25%) | 0.57% | 0.50% | 4.33% | 57% | $67,446 |
| Year Ended 4/30/2023 | $9.04 | 1.86% | 0.57% | 0.52% | 3.74% | 79% | $72,771 |
| Year Ended 4/30/2022 | $9.21 | (10.49%) | 0.56% | 0.52% | 2.34% | 80% | $51,119 |
| Year Ended 4/30/2021 | $10.76 | 5.94% | 0.58% | 0.53% | 2.45% | 74% | $49,251 |
| Year Ended 4/30/2020 | $10.85 | 10.39% | 0.58% | 0.56% | 3.13% | 91% | $6,267 |
| Year Ended 4/30/2019 | $10.14 | 6.29% | 0.59% | 0.58% | 3.52% | 65% | $8,052 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 27 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $9.04 | 0.20 | (0.66) | (0.46) | (0.19) | — | (0.19) |
| Year Ended 4/30/2023 | $9.22 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Year Ended 4/30/2022 | $10.77 | 0.25 | (1.32) | (1.07) | (0.26) | (0.22) | (0.48) |
| Year Ended 4/30/2021 | $10.86 | 0.28 | 0.38 | 0.66 | (0.28) | (0.47) | (0.75) |
| Year Ended 4/30/2020 | $10.15 | 0.33 | 0.72 | 1.05 | (0.34) | — | (0.34) |
| Year Ended 4/30/2019 | $9.88 | 0.34 | 0.27 | 0.61 | (0.34) | — | (0.34) |
| 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) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | The benefits derived from expense reductions had an impact of less than 0.01%. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 28 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 10/31/2023 (Unaudited) | $8.39 | (5.11%) | 0.52% | 0.45% | 4.38% | 57% | $692,393 |
| Year Ended 4/30/2023 | $9.04 | 1.80% | 0.52% | 0.47% | 3.71% | 79% | $764,790 |
| Year Ended 4/30/2022 | $9.22 | (10.43%) | 0.51% | 0.47% | 2.39% | 80% | $864,900 |
| Year Ended 4/30/2021 | $10.77 | 5.99% | 0.52% | 0.47% | 2.49% | 74% | $875,524 |
| Year Ended 4/30/2020 | $10.86 | 10.44% | 0.53% | 0.50% | 3.17% | 91% | $556,117 |
| Year Ended 4/30/2019 | $10.15 | 6.34% | 0.53% | 0.52% | 3.44% | 65% | $442,521 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 29 |
Notes to Financial Statements
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 1. Organization
Columbia Corporate Income Fund
(the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the
Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund received a reimbursement for expenses overbilled by a third party. Such reimbursement is
included as an offset to other expenses on the Statement of Operations. All fee waivers and expense reimbursements by Columbia Management Investment Advisers, LLC and its affiliates were applied before giving effect
to the third party reimbursement.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on
any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Debt securities generally are
valued based on prices obtained from pricing services, which are intended to reflect market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing
techniques that take into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes.
Debt securities for which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities
maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management believes does not approximate fair value.
Senior loan securities for which
reliable market quotations are readily available are generally valued by pricing services at the average of the bids received.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
| 30 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security, if
available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements
which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial
statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty provides some protection in the case of clearing member default. The clearinghouse or central counterparty stands between the buyer and the seller of the
contract; therefore, failure of the clearinghouse or central counterparty may pose additional counterparty credit risk. However, credit risk still exists in exchange-traded or centrally cleared derivatives with
respect to initial and variation margin that is held in a broker’s customer account. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker
becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients and such shortfall is remedied by the central
counterparty or otherwise, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to
the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may
impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 31 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or central counterparty for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the
minimum in certain circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific
margin terms as well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such
agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum
transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the
risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker or receive interest income on cash collateral pledged to the broker. The Fund attempts
to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those
counterparties.
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination
rights if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk,
whether termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated
benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not
correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss
when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| 32 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at October 31, 2023:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 12,162,592* |
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 9,203,783* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin for futures and centrally cleared swaps, if any, is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended October 31, 2023:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 2,694,816 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 2,236,790 |
The following table is a summary
of the average daily outstanding volume by derivative instrument for the six months ended October 31, 2023:
| Derivative instrument | Average notional amounts ($) |
| Futures contracts — long | 369,631,194 |
| Futures contracts — short | 315,916,130 |
Investments in senior loans
The Fund may invest in senior loan
assignments. When the Fund purchases an assignment of a senior loan, the Fund typically has direct rights against the borrower; provided, however, that the Fund’s rights may be more limited than the lender from
which it acquired the assignment and the Fund may be able to enforce its rights only through an administrative agent. Although certain senior loan assignments are secured by collateral, the Fund could experience
delays or limitations in realizing such collateral or have its interest subordinated to other indebtedness of the obligor. In the event that the administrator or collateral agent of a loan becomes insolvent or enters
into receivership or bankruptcy, the Fund may incur costs and delays in realizing payment or may suffer a loss of principal and/or interest. The risk of loss is greater for unsecured or subordinated loans. In
addition, senior loan assignments are vulnerable to market, economic or other conditions or events that may reduce the demand for senior loan assignments and certain senior loan assignments which were liquid when
purchased, may become illiquid.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 33 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
The Fund may enter into senior loan
assignments where all or a portion of the loan may be unfunded. The Fund is obligated to fund these commitments at the borrower’s discretion. These commitments, if any, are generally traded and priced in the
same manner as other senior loan securities and are disclosed as unfunded senior loan commitments in the Fund’s Portfolio of Investments with a corresponding payable for investments purchased. The Fund
designates cash or liquid securities to cover these commitments.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
The trade date for senior loans
purchased in the primary market is the date on which the loan is allocated. The trade date for senior loans purchased in the secondary market is the date on which the transaction is entered into.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted. For
convertible securities, premiums attributable to the conversion feature are not amortized.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. The Fund may also adjust
accrual rates when it becomes probable the full interest will not be collected and a partial payment will be received. A defaulted debt security is removed from non-accrual status when the issuer resumes interest
payments or when collectability of interest is reasonably assured.
Corporate actions and dividend
income are recorded on the ex-dividend date.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
The value of additional securities
received as an income payment through a payment-in-kind, if any, is recorded as interest income and increases the cost basis of such securities.
The Fund may receive other income
from senior loans, including amendment fees, consent fees and commitment fees. These fees are recorded as income when received by the Fund. These amounts are included in Interest Income in the Statement of
Operations.
| 34 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Recent accounting pronouncements and
regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and
Exchange Commission adopted a final rule relating to Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds; Fee Information in Investment Company Advertisements. The rule and form amendments will,
among other things, require the Fund to transmit concise and visually engaging shareholder reports that highlight key information. The amendments will require that funds tag information in a structured data
format and that certain more in-depth information be made available online and available for delivery free of charge to investors on request. The amendments became effective January 24, 2023. There is an 18-month
transition period after the effective date of the amendments.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 35 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.50% to 0.34% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended October 31, 2023 was 0.49% of the
Fund’s average daily net assets.
Compensation of Board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Trustees’ fees" in the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with SS&C GIDS, Inc. (SS&C GIDS) to serve as sub-transfer agent. The Transfer Agent pays the fees of SS&C GIDS for
services as sub-transfer agent and SS&C GIDS is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, effective through August 31, 2024, Institutional 2 Class shares are
subject to a contractual transfer agency fee annual limitation of not more than 0.05% and Institutional 3 Class shares are subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the
average daily net assets attributable to each share class.
| 36 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
For the six months
ended October 31, 2023, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.20 |
| Advisor Class | 0.20 |
| Class C | 0.20 |
| Institutional Class | 0.20 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended October 31, 2023, these minimum account balance fees reduced total
expenses of the Fund by $765.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.55% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended October 31, 2023, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 4.75 | 0.50 - 1.00(a) | 44,839 |
| Class C | — | 1.00(b) | — |
| (a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 37 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| September 1, 2023 through August 31, 2024 | Prior to September 1, 2023 | |
| Class A | 0.87% | 0.87% |
| Advisor Class | 0.62 | 0.62 |
| Class C | 1.42 | 1.42 |
| Institutional Class | 0.62 | 0.62 |
| Institutional 2 Class | 0.47 | 0.52 |
| Institutional 3 Class | 0.42 | 0.47 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Reflected in the contractual cap commitment, effective through August 31, 2024, is the Transfer Agent’s
contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.05% for Institutional 2 Class and 0.00% for Institutional 3 Class of the average daily net assets attributable to each
share class, unless sooner terminated at the sole discretion of the Board of Trustees. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the
Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At October 31, 2023, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized (depreciation) ($) |
| 1,771,108,000 | 12,560,000 | (227,730,000) | (215,170,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at April 30, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (44,928,785) | (62,836,395) | (107,765,180) |
| 38 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $954,649,932 and $877,280,017, respectively, for the six months ended October 31, 2023, of which $110,481,324
and $127,278,398, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring institutional prime money market funds like the Affiliated MMF to be subject, by October 2,
2024, to a liquidity fee if daily net redemptions exceed 5% of net assets and, by April 2, 2024, to a discretionary liquidity fee up to 2% if the imposition of such a fee is determined to be in the best interest of
the Affiliated MMF.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended October 31, 2023 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Lender | 450,000 | 5.60 | 6 |
Interest income earned by the Fund
is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at October 31, 2023.
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 26, 2023 amendment and restatement, the credit facility, which is an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate borrowings up to $900 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the
higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%. Each borrowing under the credit facility
matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee
is included in
| Columbia Corporate Income Fund | Semiannual Report 2023 | 39 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
other expenses in the Statement of Operations.
This agreement expires annually in October unless extended or renewed. Prior to the October 26, 2023 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by
JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to
the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.10% and (iii) the overnight bank funding rate plus, in each case, 1.00%.
The Fund had no borrowings during
the six months ended October 31, 2023.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency,
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Actions by
governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates may
negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt
security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and
financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or
| 40 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Notes to Financial Statements (continued)
October 31, 2023 (Unaudited)
October 31, 2023 (Unaudited)
financial market. These risks may be magnified if
certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as
terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock markets, unusual volatility in global commodity markets and significant devaluations of
Russian currency. The extent and duration of the military action are impossible to predict but could continue to be significant. Market disruption caused by the Russian military action, and any counter measures or
responses thereto (including international sanctions, a downgrade in a country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences,
cyberattacks and espionage) could continue to have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced
market liquidity, distress in credit markets, further disruption of global supply chains, increased risk of inflation, restricted cross-border payments and limited access to investments and/or assets in certain
international markets and/or issuers. These developments and other related events could negatively impact Fund performance.
Shareholder concentration risk
At October 31, 2023, affiliated
shareholders of record owned 65.9% of the outstanding shares of the Fund in one or more accounts. Fund shares sold to or redeemed by concentrated accounts may have a significant effect on the operations of the Fund.
In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less
liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of their activities as part of a diversified financial services firm. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its
affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to
perform under their contracts with the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and
regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provide services to
the Fund.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 41 |
Approval of Management
Agreement
(Unaudited)
Columbia Management Investment
Advisers, LLC (the Investment Manager, and together with its domestic and global affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), serves
as the investment manager to Columbia Corporate Income Fund (the Fund). Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and other services to the Fund and
other funds distributed by Columbia Management Investment Distributors, Inc. (collectively, the Funds).
On an annual basis, the
Fund’s Board of Trustees (the Board), including the independent Board members (the Independent Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for
the Board and its Contracts Committee (including its Contracts Subcommittee) in February, March, April, May and June 2023, including reports providing the results of analyses performed by a third-party data provider,
Broadridge Financial Solutions, Inc. (Broadridge), and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel to the Independent Trustees (Independent Legal
Counsel), to assist the Board in making this determination. In addition, throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and senior management
personnel and reviews information prepared by the Investment Manager addressing the services the Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work,
deliberations and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the Investment Review Committee, the Audit Committee and the Compliance Committee in
determining whether to continue the Management Agreement.
The Board, at its June 22, 2023
Board meeting (the June Meeting), considered the renewal of the Management Agreement for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees various
factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to such consideration. The Independent Trustees considered all information that
they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement. Among other things, the information and factors
considered included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by Broadridge, as well as performance relative to one or more 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 mutual funds, as determined by Broadridge; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | Terms of the Management Agreement; |
| • | Descriptions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder 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). |
| 42 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Approval of Management Agreement (continued)
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
(Unaudited)
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of
services provided by the Investment Manager
The Board analyzed various
reports and presentations it had received detailing the services performed by the Investment Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
The Board specifically considered
the many developments during recent years concerning the services provided by the Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research departments. The
Board further observed the enhancements to the investment risk management department’s processes, systems and oversight over the past several years. The Board also took into account the broad scope of
services provided by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The Board also took into account the information it received concerning the
Investment Manager’s ability to attract and retain key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation to investment personnel.
In connection with the
Board’s evaluation of the overall package of services provided by the Investment Manager, the Board also considered the nature, quality and range of administrative services provided to the Fund by the Investment
Manager, as well as the achievements in 2022 in the performance of administrative services, and noted the various enhancements anticipated for 2023. In evaluating the quality of services provided under the
Management Agreement, the Board also took into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also reviewed the financial condition of
the Investment Manager and its affiliates and each entity’s ability to carry out its responsibilities under the Management Agreement and the Fund’s other service agreements.
In addition, the Board discussed
the acceptability of the terms of the Management Agreement, noting that no changes were proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance
services provided to the Fund under the Management Agreement.
After reviewing these and related
factors (including investment performance as discussed below), the Board concluded, within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the
Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the
investment performance of the Fund, including detailed reports providing the results of analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods (including
since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and benchmarks and (iii) the net assets of the Fund. The Board observed that the Fund’s
performance for certain periods ranked above median based on information provided by Broadridge.
The Board also reviewed a
description of the third-party data provider’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Board also considered the
Investment Manager’s performance and reputation generally. After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund
and the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of
services provided and the profits realized by the Investment Manager and its affiliates from their relationships with the Fund
The Board reviewed comparative
fees and the costs of services provided under the Management Agreement. The Board members considered detailed comparative information set forth in an annual report on fees and expenses, including, among other
things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses with median expenses paid by funds in its comparative peer universe, as well as data showing the
Fund’s contribution to the Investment Manager’s profitability.
| Columbia Corporate Income Fund | Semiannual Report 2023 | 43 |
Approval of Management Agreement (continued)
(Unaudited)
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
(Unaudited)
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund family, while assuring that the overall fees for each Fund (with certain exceptions) are generally in line with the current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median expense ratios of funds in the same Lipper comparison universe. The Board took into account that the Fund’s total expense ratio (after considering proposed expense caps/waivers) approximated the peer universe’s median expense ratio.
After reviewing these and related
factors, the Board concluded, within the context of their overall conclusions, that the levels of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the
Management Agreement.
The Board also considered the
profitability of the Investment Manager and its affiliates in connection with the Investment Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its
affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and Ameriprise Financial from managing, operating and distributing the Funds. The Board
considered that the profitability generated by the Investment Manager in 2022 had declined from 2021 levels, due to a variety of factors, including the decreased assets under management of the Funds. It also
took into account the indirect economic benefits flowing to the Investment Manager or its affiliates in connection with managing or distributing the Funds, such as the enhanced ability to offer various other financial
products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive
compensation to its personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related factors, the Board concluded, within the context of their overall
conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Board considered the
potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, and whether those economies of scale were shared with the Fund through breakpoints in investment management
fees or other means, such as expense limitation arrangements and additional investments by the Investment Manager in investment, trading, compliance and other resources. The Board considered the economies of scale
that might be realized as the Fund’s net asset level grows and took note of the extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that
management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board observed that the Management Agreement provided for breakpoints in the management fee rate schedule that allow opportunities for shareholders to realize lower fees as
Fund assets grow and that there are additional opportunities through other means for sharing economies of scale with shareholders.
Conclusion
The Board reviewed all of the
above considerations in reaching its decision to approve the continuation of the Management Agreement. In reaching its conclusions, no single factor was determinative.
On June 22, 2023, the Board,
including all of the Independent Trustees, determined that fees payable under the Management Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the
Management Agreement.
| 44 | Columbia Corporate Income Fund | Semiannual Report 2023 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2023 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR136_04_N01_(12/23)
Item 2. Code of Ethics.
Not applicable for semiannual reports.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable for semiannual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
|
(a) |
The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in 17 CFR 210.12-12) is included in Item 1 of this Form N-CSR. |
|
(b) |
Not applicable. |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.
Item 11. Controls and Procedures.
|
(a) |
The registrant’s principal executive officer and principal financial officer, 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) |
Columbia Funds Series Trust I |
|
|
|
|
By (Signature and Title) |
/s/ Daniel J. Beckman |
|
|
Daniel J. Beckman, President and Principal Executive Officer |
|
|
|
|
Date |
December 20, 2023 |
|
|
|
|
|
|
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 |
December 20, 2023 |
|
By (Signature and Title) |
/s/ Michael G. Clarke |
|
|
Michael G. Clarke, Chief Financial Officer, |
|
|
Principal Financial Officer and Senior Vice President |
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|
|
|
Date |
December 20, 2023 |
|
By (Signature and Title) |
/s/ Joseph Beranek |
|
|
Joseph Beranek, Treasurer, Chief Accounting |
|
|
Officer and Principal Financial Officer |
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|
|
|
Date |
December 20, 2023 |