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: July 31
Date of reporting period: January 31, 2024
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.
Semiannual ReportJanuary 31, 2024 (Unaudited) Columbia Large Cap Growth Fund
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule, "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.
Each Tailored Shareholder Report will be share-class specific and will highlight key fund information the SEC believes is most relevant to investors in assessing their investment in the Fund. Much of the information, including a Fund’s financial statements, that is currently disclosed in a Fund’s shareholder reports will instead be made available on the Fund’s website and filed on Form N-CSR on an annual and semiannual basis. This information will be delivered to investors free of charge upon request. Columbia Fund reports will follow the Tailored Shareholder Report approach beginning with reports covering the period ending May 31, 2024.
The new rule also requires the Fund to mail a printed version of the Tailored Shareholder Report to all shareholders who have not elected to receive shareholder reports electronically. Rather than receiving a postcard notifying investors that the shareholder report for Funds in which they invest is available online, investors will begin receiving the Tailored Shareholder Report in the mail unless they have elected to receive their Fund documents electronically.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Large Cap Growth 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 Large Cap Growth Fund | Semiannual Report 2024
Fund at a Glance(Unaudited) Investment objective
The Fund seeks long-term capital appreciation.
Portfolio management
Melda Mergen, CFA, CAIA
Co-Portfolio Manager
Managed Fund since 2019
Tiffany Wade
Co-Portfolio Manager
Managed Fund since 2021
Michael Guttag*
Co-Portfolio Manager
Managed Fund since January 2024
*Effective January 31, 2024, Mr. Guttag was named co-portfolio manager of the Fund.
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.
© 2024 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.
Average annual total returns (%) (for the period ended January 31, 2024) |
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Russell 1000 Growth Index | | | | | |
Returns for Class A shares are shown with and without the maximum initial sales charge of 5.75%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. Returns for Class E shares are shown with and without the maximum sales charge of 4.50%. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
The Russell 1000 Growth Index, an unmanaged index, measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Large Cap Growth Fund | Semiannual Report 2024
3
Fund at a Glance (continued)(Unaudited)
Portfolio breakdown (%) (at January 31, 2024) |
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Exchange-Traded Equity Funds | |
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Percentages indicated are based upon total investments excluding investments in derivatives, if any. The Fund’s portfolio composition is subject to change.
Equity sector breakdown (%) (at January 31, 2024) |
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Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
Equity sub-industry breakdown (%) (at January 31, 2024) |
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Electronic Manufacturing Services | |
Internet Services & Infrastructure | |
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Technology Hardware, Storage & Peripherals | |
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Percentages indicated are based upon total equity investments. The Fund’s portfolio composition is subject to change.
4
Columbia Large Cap Growth Fund | Semiannual Report 2024
Understanding Your Fund’s Expenses(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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
August 1, 2023 — January 31, 2024 |
| Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
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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 Large Cap Growth Fund | Semiannual Report 2024
5
Portfolio of InvestmentsJanuary 31, 2024 (Unaudited)(Percentages represent value of investments compared to net assets)
Investments in securities
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Communication Services 10.3% |
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Interactive Media & Services 9.7% |
Alphabet, Inc., Class A(a) | | |
Alphabet, Inc., Class C(a) | | |
Meta Platforms, Inc., Class A(a) | | |
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Total Communication Services | |
Consumer Discretionary 15.3% |
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Hotels, Restaurants & Leisure 4.4% |
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DraftKings, Inc., Class A(a) | | |
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Hilton Worldwide Holdings, Inc. | | |
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TJX Companies, Inc. (The)(b) | | |
Textiles, Apparel & Luxury Goods 1.3% |
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Total Consumer Discretionary | |
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Consumer Staples Distribution & Retail 2.8% |
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Procter & Gamble Co. (The) | | |
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Common Stocks (continued) |
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BioMarin Pharmaceutical, Inc.(a) | | |
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Vertex Pharmaceuticals, Inc.(a) | | |
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Health Care Equipment & Supplies 3.8% |
Cooper Companies, Inc. (The) | | |
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Intuitive Surgical, Inc.(a) | | |
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Health Care Providers & Services 3.2% |
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Commercial Services & Supplies 1.5% |
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Electrical Equipment 2.1% |
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Industrial Conglomerates 1.0% |
Honeywell International, Inc. | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
6
Columbia Large Cap Growth Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Common Stocks (continued) |
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Information Technology 43.4% |
Electronic Equipment, Instruments & Components 1.2% |
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Semiconductors & Semiconductor Equipment 10.6% |
Advanced Micro Devices, Inc.(a) | | |
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Palo Alto Networks, Inc.(a),(b) | | |
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Technology Hardware, Storage & Peripherals 10.2% |
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Total Information Technology | |
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Common Stocks (continued) |
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Total Common Stocks
(Cost $2,156,166,472) | |
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Exchange-Traded Equity Funds 0.3% |
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Columbia Research Enhanced Core ETF(c) | | |
Total Exchange-Traded Equity Funds
(Cost $13,534,816) | |
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Columbia Short-Term Cash Fund, 5.541%(c),(d) | | |
Total Money Market Funds
(Cost $39,545,347) | |
Total Investments in Securities
(Cost: $2,209,246,635) | |
Other Assets & Liabilities, Net | | |
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At January 31, 2024, securities and/or cash totaling $85,855,692 were pledged as collateral.
Investments in derivatives
Call option contracts written |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Semiannual Report 2024
7
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Notes to Portfolio of Investments
| Non-income producing investment. |
| This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
| As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended January 31, 2024 are as follows: |
| | | | Net change in
unrealized
appreciation
(depreciation)($) | | | | |
Columbia Research Enhanced Core ETF |
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Columbia Short-Term Cash Fund, 5.541% |
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| The rate shown is the seven-day current annualized yield at January 31, 2024. |
Currency Legend
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 accompanying Notes to Financial Statements are an integral part of this statement.
8
Columbia Large Cap Growth Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Fair value measurements (continued)
The following table is a summary of the inputs used to value the Fund’s investments at January 31, 2024:
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Investments in Securities | | | | |
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Exchange-Traded Equity Funds | | | | |
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Total Investments in Securities | | | | |
Investments in Derivatives | | | | |
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Call Option Contracts Written | | | | |
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See the Portfolio of Investments for all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Semiannual Report 2024
9
Statement of Assets and LiabilitiesJanuary 31, 2024 (Unaudited)
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Investments in securities, at value | |
Unaffiliated issuers (cost $2,156,166,472) | |
Affiliated issuers (cost $53,080,163) | |
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Expense reimbursement due from Investment Manager | |
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Deferred compensation of board members | |
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Option contracts written, at value (premiums received $385,696) | |
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Distribution and/or service fees | |
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Compensation of chief compliance officer | |
Compensation of board members | |
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Deferred compensation of board members | |
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Net assets applicable to outstanding capital stock | |
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Total distributable earnings (loss) | |
Total - representing net assets applicable to outstanding capital stock | |
The accompanying Notes to Financial Statements are an integral part of this statement.
10
Columbia Large Cap Growth Fund | Semiannual Report 2024
Statement of Assets and Liabilities (continued)January 31, 2024 (Unaudited) | |
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Net asset value per share | |
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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) | |
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Net asset value per share | |
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Net asset value per share | |
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Net asset value per share | |
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Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class E shares) | |
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Net asset value per share | |
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Net asset value per share | |
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Net asset value per share | |
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Net asset value per share | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Semiannual Report 2024
11
Statement of OperationsSix Months Ended January 31, 2024 (Unaudited)
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Dividends — unaffiliated issuers | |
Dividends — affiliated issuers | |
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Distribution and/or service fees | |
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Printing and postage fees | |
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Compensation of chief compliance officer | |
Compensation of board members | |
Deferred compensation of board members | |
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Fees waived or expenses reimbursed by Investment Manager and its affiliates | |
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Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | |
Investments — affiliated issuers | |
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Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | |
Investments — affiliated issuers | |
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Net change in unrealized appreciation (depreciation) | |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
The accompanying Notes to Financial Statements are an integral part of this statement.
12
Columbia Large Cap Growth Fund | Semiannual Report 2024
Statement of Changes in Net Assets
| Six Months Ended
January 31, 2024
(Unaudited) | |
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Net investment income (loss) | | |
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Net change in unrealized appreciation (depreciation) | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders | | |
Net investment income and net realized gains | | |
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Total distributions to shareholders | | |
Increase (decrease) in net assets from capital stock activity | | |
Total increase in net assets | | |
Net assets at beginning of period | | |
Net assets at end of period | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Semiannual Report 2024
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Statement of Changes in Net Assets (continued)
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| January 31, 2024 (Unaudited) | |
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Total net increase (decrease) | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
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Columbia Large Cap Growth Fund | Semiannual Report 2024
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Columbia Large Cap Growth Fund | Semiannual Report 2024
15
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 |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Columbia Large Cap Growth Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income (loss)
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Semiannual Report 2024
17
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 |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Notes to Financial Highlights |
| 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. |
| Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| The benefits derived from expense reductions had an impact of less than 0.01%. |
| Ratios include interest on collateral expense which is less than 0.01%. |
| |
The accompanying Notes to Financial Statements are an integral part of this statement.
18
Columbia Large Cap Growth Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income (loss)
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Large Cap Growth Fund | Semiannual Report 2024
19
Notes to Financial StatementsJanuary 31, 2024 (Unaudited) Note 1. Organization
Columbia Large Cap Growth 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 E shares are trust shares which are held in an irrevocable trust until the specified trust termination date and are closed to new investors and new accounts. Class V shares were available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
In September 2023, the Board of Trustees of the Fund approved a proposal to combine Class V shares into Class A shares of the Fund (the Proposal). Shareholders holding Class V shares of the Fund on the record date of October 6, 2023, received a proxy to vote on the Proposal and at a meeting held on December 7, 2023, the Proposal was approved. On December 8, 2023, Class V shareholders received Class A shares of the Fund with an aggregate net asset value equal to the aggregate net asset value of their Class V shares. The combination of Class V shares into Class A shares was tax-free for federal tax purposes.
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
20
Columbia Large Cap Growth Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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
Columbia Large Cap Growth Fund | Semiannual Report 2024
21
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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 has written option contracts to increase return on investments. 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
22
Columbia Large Cap Growth Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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 January 31, 2024:
| | |
| Statement
of assets and liabilities
location | |
| Option contracts written, at value | |
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 January 31, 2024:
Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| Option
contracts
written
($) |
| |
The following table is a summary of the average daily outstanding volume by derivative instrument for the six months ended January 31, 2024:
Columbia Large Cap Growth Fund | Semiannual Report 2024
23
Notes to Financial Statements (continued)January 31, 2024 (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 January 31, 2024:
| |
| |
Call option contracts written | |
Total Financial and Derivative Net Assets | |
Total collateral received (pledged) (a) | |
| |
| In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| 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
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.
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.
24
Columbia Large Cap Growth Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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 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, "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 0.77% to 0.57% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2024 was 0.65% of the Fund’s average daily net assets.
The Investment Manager has contractually agreed to implement a waiver with respect to Fund assets invested in funds that pay a management or advisory fee to the Investment Manager or its affiliate (underlying affiliated funds). Under this arrangement, the Investment Manager waives its net management fee (management fee less reimbursements/waivers) with respect to the Fund in an amount equal to the net management or advisory fee (fee less reimbursement/waivers) payable by an underlying affiliated fund on the assets invested by the Fund in the underlying affiliated fund.
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
Columbia Large Cap Growth Fund | Semiannual Report 2024
25
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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 "Deferred compensation of board members" 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.
For the six months ended January 31, 2024, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
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 January 31, 2024, these minimum account balance fees reduced total expenses of the Fund by $9,184.
26
Columbia Large Cap Growth Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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, Class C and Class E 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%, 0.10% and 0.50% of the average daily net assets attributable to Class A, Class C, Class E 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.
Shareholder services fees
The Fund had adopted a shareholder services plan that permitted it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may have paid shareholder servicing fees up to an aggregate annual rate of 0.50% of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.25% for shareholder services and up to 0.25% for administrative support services). These fees were limited to an aggregate annual rate of not more than 0.25% of the Fund’s average daily net assets attributable to Class V shares. As a result of Class V shares of the Fund being combined into Class A shares, December 8, 2023 was the last day the Fund paid a shareholder services fee for 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 January 31, 2024, if any, are listed below:
| 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. |
| 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 Large Cap Growth Fund | Semiannual Report 2024
27
Notes to Financial Statements (continued)January 31, 2024 (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:
| December 1, 2023
through
November 30, 2024 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
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 January 31, 2024, 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:
| Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
appreciation ($) |
| | | |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
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 July 31, 2023 as arising on August 1, 2023.
Late year
ordinary losses ($) | Post-October
capital losses ($) |
| |
28
Columbia Large Cap Growth Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (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 $851,542,755 and $1,007,719,528, respectively, for the six months ended January 31, 2024. 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 April 2, 2024, to a discretionary liquidity fee of up to 2% if the imposition of such a fee is determined to be in the best interest of the Affiliated MMF and, by October 2, 2024, to a liquidity fee if daily net redemptions exceed 5% of net assets.
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 did not borrow or lend money under the Interfund Program during the six months ended January 31, 2024.
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 January 31, 2024.
Columbia Large Cap Growth Fund | Semiannual Report 2024
29
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Note 9. Significant risks
Information technology sector risk
The Fund may be vulnerable to the particular risks that may affect companies in the information technology sector. Companies in the information technology sector are subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected by factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies’ securities historically have been more volatile than other securities, especially over the short term. Some companies in the information technology sector are facing increased government and regulatory scrutiny and may be subject to adverse government or regulatory action, which could negatively impact the value of their securities.
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 countermeasures 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 January 31, 2024, affiliated shareholders of record owned 45.2% 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.
30
Columbia Large Cap Growth Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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 Large Cap Growth Fund | Semiannual Report 2024
31
Results of Meeting of Shareholders
During the period, the Board of Trustees of Columbia Funds Series Trust I solicited approval of the holders of Class V shares of Columbia Large Cap Growth Fund (the “Fund”) for the combination of the Fund’s Class V shares with Class A shares of the Fund including, as part of such combination, the adoption with respect to Class V shares of a distribution plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 identical to that currently in effect with respect to Class A shares of the Fund (the “Proposal”). At a Joint Special Meeting of Shareholders held on December 7, 2023, Class V shareholders approved the Proposal. Shareholders of each Fund were entitled to one vote for each dollar of net asset value (number of shares owned times net asset value per share) determined at the close of business on the record date, and each fractional dollar amount is entitled to a proportionate fractional vote.
32
Columbia Large Cap Growth Fund | Semiannual Report 2024
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Columbia Large Cap Growth Fund
P.O. Box 219104
Kansas City, MO 64121-9104
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.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Semiannual ReportJanuary 31, 2024 (Unaudited) Columbia Ultra Short Term Bond Fund
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule, "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.
Each Tailored Shareholder Report will be share-class specific and will highlight key fund information the SEC believes is most relevant to investors in assessing their investment in the Fund. Much of the information, including a Fund’s financial statements, that is currently disclosed in a Fund’s shareholder reports will instead be made available on the Fund’s website and filed on Form N-CSR on an annual and semiannual basis. This information will be delivered to investors free of charge upon request. Columbia Fund reports will follow the Tailored Shareholder Report approach beginning with reports covering the period ending May 31, 2024.
The new rule also requires the Fund to mail a printed version of the Tailored Shareholder Report to all shareholders who have not elected to receive shareholder reports electronically. Rather than receiving a postcard notifying investors that the shareholder report for Funds in which they invest is available online, investors will begin receiving the Tailored Shareholder Report in the mail unless they have elected to receive their Fund documents electronically.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Ultra Short Term 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 Ultra Short Term Bond Fund | Semiannual Report 2024
Fund at a Glance(Unaudited) Investment objective
The Fund seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital.
Portfolio management
Gregory Liechty
Co-Portfolio Manager
Managed Fund since 2016
Ronald Stahl, CFA
Co-Portfolio Manager
Managed Fund since 2015
Average annual total returns (%) (for the period ended January 31, 2024) |
| | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Bloomberg U.S. Short-Term Government/Corporate Index | | | | | |
Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower. All results shown assume reinvestment of distributions. The table does not reflect the deduction of taxes that a shareholder may pay on fund distributions or on the redemption of shares.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/or calling 800.345.6611.
*The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
The Bloomberg U.S. Short-Term Government/Corporate Index tracks the performance of U.S. Government and corporate bonds rated investment grade or better, with maturities of less than one year.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
3
Fund at a Glance (continued)(Unaudited)
Portfolio breakdown (%) (at January 31, 2024) |
Asset-Backed Securities — Non-Agency | |
Commercial Mortgage-Backed Securities - Non-Agency | |
| |
Foreign Government Obligations | |
| |
Residential Mortgage-Backed Securities - Agency | |
Residential Mortgage-Backed Securities - Non-Agency | |
| |
U.S. Government & Agency Obligations | |
| |
Percentages indicated are based upon total investments excluding investments in derivatives, if any. The Fund’s portfolio composition is subject to change.
Quality breakdown (%) (at January 31, 2024) |
| |
| |
| |
| |
| |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Understanding Your Fund’s Expenses(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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
August 1, 2023 — January 31, 2024 |
| Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
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 Ultra Short Term Bond Fund | Semiannual Report 2024
5
Portfolio of InvestmentsJanuary 31, 2024 (Unaudited)(Percentages represent value of investments compared to net assets)
Investments in securities
Asset-Backed Securities — Non-Agency 33.9% |
| | | | |
Affirm Asset Securitization Trust(a) |
|
| | | | |
American Credit Acceptance Receivables Trust(a) |
|
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Subordinated Series 2021-3 Class C |
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Subordinated Series 2022-2 Class C |
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Subordinated Series 2022-2 Class D |
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AmeriCredit Automobile Receivables Trust |
|
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Amur Equipment Finance Receivables XIII LLC(a) |
|
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Arivo Acceptance Auto Loan Receivables Trust(a) |
|
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Atalaya Equipment Leasing Trust(a) |
|
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Capital One Multi-Asset Execution Trust |
|
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Carvana Auto Receivables Trust |
|
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|
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|
|
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|
|
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Commercial Equipment Finance LLC(a) |
|
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Credito Real USA Auto Receivables Trust(a) |
|
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Dext Asset-Backed Security LLC(a) |
|
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Asset-Backed Securities — Non-Agency (continued) |
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|
|
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|
|
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Subordinated Series 2020-1A Class D |
| | | | |
Ent Auto Receivables Trust(a) |
|
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Enterprise Fleet Financing LLC(a) |
|
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Exeter Automobile Receivables Trust |
|
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|
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Subordinated Series 2021-4A Class C |
| | | | |
|
|
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|
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First Investors Auto Owner Trust(a) |
|
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Flagship Credit Auto Trust(a) |
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Ford Credit Auto Lease Trust |
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Ford Credit Auto Owner Trust |
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GLS Auto Receivables Issuer Trust(a) |
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Subordinated Series 2021-1A Class C |
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GM Financial Automobile Leasing Trust |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
6
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Asset-Backed Securities — Non-Agency (continued) |
| | | | |
GM Financial Consumer Automobile Receivables Trust |
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GreatAmerica Leasing Receivables(a) |
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Harley-Davidson Motorcycle Trust |
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Hertz Vehicle Financing LLC(a) |
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Hyundai Auto Receivables Trust |
|
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JPMorgan Chase Bank NA(a) |
Subordinated Series 2021-1 Class C |
| | | | |
Subordinated Series 2021-2 Class C |
| | | | |
JPMorgan Chase Bank NA - CACLN(a) |
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LAD Auto Receivables Trust(a) |
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Lendbuzz Securitization Trust(a) |
|
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Mercedes-Benz Auto Receivables Trust |
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Octane Receivables Trust(a) |
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Oportun Issuance Trust(a) |
|
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Pagaya AI Debt Selection Trust(a) |
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Asset-Backed Securities — Non-Agency (continued) |
| | | | |
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Pagaya AI Debt Trust(a),(b) |
Subordinated Series 2023-7 Class AB |
| | | | |
Prosper Marketplace Issuance Trust(a) |
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Santander Drive Auto Receivables Trust |
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Subordinated Series 2022-6 Class B |
| | | | |
Santander Retail Auto Lease Trust(a) |
|
| | | | |
Santander Revolving Auto Loan Trust(a) |
Subordinated Series 2019-A Class C |
| | | | |
SoFi Consumer Loan Program Trust(a) |
|
| | | | |
Toyota Auto Loan Extended Note Trust(a) |
|
| | | | |
Upstart Pass-Through Trust(a) |
|
| | | | |
|
| | | | |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
7
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Asset-Backed Securities — Non-Agency (continued) |
| | | | |
|
| | | | |
|
| | | | |
|
|
| | | | |
|
| | | | |
|
|
| | | | |
|
|
| | | | |
Westlake Automobile Receivables Trust(a) |
|
| | | | |
|
| | | | |
Subordinated Series 2021-3 Class C |
| | | | |
Subordinated Series 2021-3A Class D |
| | | | |
World Omni Auto Receivables Trust |
|
| | | | |
|
| | | | |
World Omni Select Auto Trust |
|
| | | | |
Total Asset-Backed Securities — Non-Agency
(Cost $373,875,283) | |
|
Commercial Mortgage-Backed Securities - Non-Agency 3.0% |
| | | | |
|
Series 2015-CR24 Class A4 |
| | | | |
Commercial Mortgage Trust |
Series 2014-CR16 Class A4 |
| | | | |
JPMBB Commercial Mortgage Securities Trust |
|
| | | | |
Morgan Stanley Bank of America Merrill Lynch Trust |
|
| | | | |
Commercial Mortgage-Backed Securities - Non-Agency (continued) |
| | | | |
Progress Residential Trust(a) |
|
| | | | |
|
| | | | |
Wells Fargo Commercial Mortgage Trust(a),(d) |
|
1-month Term SOFR + 1.047%
Floor 0.875%
12/15/2034 | | | | |
Total Commercial Mortgage-Backed Securities - Non-Agency
(Cost $33,462,766) | |
|
Corporate Bonds & Notes 48.0% |
| | | | |
|
BAE Systems Holdings, Inc.(a) |
| | | | |
|
| | | | |
|
| | | | |
United Technologies Corp. |
| | | | |
| |
|
Daimler Trucks Finance North America LLC(a),(d) |
| | | | |
Toyota Motor Credit Corp.(d) |
| | | | |
| |
|
|
| | | | |
|
| | | | |
|
| | | | |
Bank of New York Mellon Corp. (The)(d) |
| | | | |
Bank of Nova Scotia (The)(d) |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
8
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Corporate Bonds & Notes (continued) |
| | | | |
|
| | | | |
Canadian Imperial Bank of Commerce(d) |
| | | | |
|
| | | | |
Commonwealth Bank of Australia(a),(d) |
3-month Term SOFR + 1.082%
06/04/2024 | | | | |
Cooperatieve Rabobank UA(d) |
| | | | |
Goldman Sachs Group, Inc. (The)(d) |
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
National Australia Bank Ltd. |
| | | | |
|
| | | | |
|
| | | | |
Skandinaviska Enskilda Banken AB(a) |
| | | | |
|
| | | | |
Svenska Handelsbanken AB(a) |
| | | | |
Toronto-Dominion Bank (The)(d) |
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
Corporate Bonds & Notes (continued) |
| | | | |
|
| | | | |
| |
|
Charter Communications Operating LLC/Capital |
| | | | |
|
| | | | |
| |
|
|
| | | | |
LYB International Finance III LLC |
| | | | |
| |
Construction Machinery 1.0% |
Caterpillar Financial Services Corp. |
| | | | |
|
| | | | |
| |
Diversified Manufacturing 0.9% |
|
| | | | |
Siemens Financieringsmaatschappij NV(a) |
| | | | |
| |
|
CenterPoint Energy, Inc.(d) |
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
9
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Corporate Bonds & Notes (continued) |
| | | | |
NextEra Energy Capital Holdings, Inc. |
| | | | |
Public Service Enterprise Group, Inc. |
| | | | |
|
| | | | |
|
| | | | |
| |
|
|
| | | | |
|
| | | | |
Mondelez International, Inc. |
| | | | |
|
| | | | |
| |
|
|
| | | | |
|
| | | | |
|
| | | | |
GE HealthCare Technologies, Inc. |
| | | | |
|
| | | | |
Thermo Fisher Scientific, Inc. |
| | | | |
| |
Healthcare Insurance 0.8% |
|
| | | | |
|
| | | | |
| |
|
Pioneer Natural Resources Co. |
| | | | |
Corporate Bonds & Notes (continued) |
| | | | |
|
| | | | |
| |
|
BP Capital Markets America, Inc. |
| | | | |
|
Corebridge Financial, Inc. |
| | | | |
Met Tower Global Funding(a) |
| | | | |
New York Life Global Funding(a) |
| | | | |
Pricoa Global Funding I(a) |
| | | | |
Principal Life Global Funding II(a) |
| | | | |
| |
Media and Entertainment 0.9% |
Discovery Communications LLC |
| | | | |
|
| | | | |
| |
|
|
| | | | |
Energy Transfer Partners LP |
| | | | |
Enterprise Products Operating LLC |
| | | | |
Kinder Morgan Energy Partners LP |
| | | | |
| | | | |
Plains All American Pipeline LP/Finance Corp. |
| | | | |
Western Midstream Operating LP |
| | | | |
Williams Companies, Inc. (The) |
| | | | |
| |
The accompanying Notes to Financial Statements are an integral part of this statement.
10
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Corporate Bonds & Notes (continued) |
| | | | |
|
|
| | | | |
|
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
Pfizer Investment Enterprises Pte., Ltd. |
| | | | |
Roche Holdings, Inc.(a),(d) |
| | | | |
| |
|
|
| | | | |
|
| | | | |
| |
|
|
| | | | |
|
| | | | |
| |
|
|
| | | | |
|
|
| | | | |
International Business Machines Corp. |
| | | | |
Microchip Technology, Inc. |
| | | | |
|
| | | | |
Corporate Bonds & Notes (continued) |
| | | | |
|
| | | | |
| |
Transportation Services 0.5% |
|
| | | | |
|
|
| | | | |
|
| | | | |
| |
|
|
3-month Term SOFR + 1.442%
06/12/2024 | | | | |
Verizon Communications, Inc. |
| | | | |
| |
Total Corporate Bonds & Notes
(Cost $529,103,290) | |
|
Foreign Government Obligations(f) 1.0% |
| | | | |
|
|
| | | | |
|
| | | | |
| |
Total Foreign Government Obligations
(Cost $10,995,245) | |
|
Residential Mortgage-Backed Securities - Agency 0.0% |
| | | | |
Federal Home Loan Mortgage Corp.(d) |
1-year CMT + 2.255%
Cap 11.233%
02/01/2036 | | | | |
Total Residential Mortgage-Backed Securities - Agency
(Cost $17,903) | |
|
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
11
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Residential Mortgage-Backed Securities - Non-Agency 9.5% |
| | | | |
Bellemeade Re Ltd.(a),(d) |
CMO Series 2021-3A Class M1A |
30-day Average SOFR + 1.000%
Floor 1.000%
09/25/2031 | | | | |
|
CMO Series 2021-EBO1 Class A |
| | | | |
Connecticut Avenue Securities Trust(a),(d) |
CMO Series 2022-R05 Class 2M1 |
30-day Average SOFR + 1.900%
04/25/2042 | | | | |
Freddie Mac STACR REMIC Trust(a),(d) |
CMO Series 2022-HQA1 Class M1A |
30-day Average SOFR + 2.100%
03/25/2042 | | | | |
|
CMO Series 2020-NQM3 Class A3 |
| | | | |
NRZ Excess Spread-Collateralized Notes(a) |
|
| | | | |
Pretium Mortgage Credit Partners LLC(a),(b) |
CMO Series 2021-RN2 Class A1 |
| | | | |
RCO Mortgage LLC(a),(c),(g),(h) |
CMO Series 2024-1 Class A1 |
| | | | |
Towd Point Mortgage Trust(a),(b) |
CMO Series 2021-SJ1 Class A1 |
| | | | |
CMO Series 2022-EBO1 Class A |
| | | | |
CMO Series 2022-SJ1 Class A1B |
| | | | |
VCAT Asset Securitization LLC(a),(b) |
CMO Series 2021-NPL6 Class A1 |
| | | | |
|
CMO Series 2021-NPL1 Class A1 |
| | | | |
CMO Series 2021-NPL4 Class A1 |
| | | | |
CMO Series 2021-NPL5 Class A1 |
| | | | |
Vericrest Opportunity Loan Transferee XCIII LLC(a),(b) |
CMO Series 2021-NPL2 Class A1 |
| | | | |
Residential Mortgage-Backed Securities - Non-Agency (continued) |
| | | | |
Verus Securitization Trust(a),(b) |
CMO Series 2020-1 Class A1 |
| | | | |
Total Residential Mortgage-Backed Securities - Non-Agency
(Cost $109,067,756) | |
|
|
| | | | |
|
|
| | | | |
Total Treasury Bills
(Cost $11,739,776) | |
|
U.S. Government & Agency Obligations 1.0% |
| | | | |
Federal Farm Credit Banks Funding Corp.(d) |
| | | | |
| | | | |
| | | | |
| | | | |
Federal Farm Credit Banks Funding Corp. |
| | | | |
Federal National Mortgage Association |
| | | | |
Total U.S. Government & Agency Obligations
(Cost $11,406,664) | |
|
| | |
Columbia Short-Term Cash Fund, 5.541%(i),(j) | | |
Total Money Market Funds
(Cost $28,151,166) | |
Total Investments in Securities
(Cost: $1,107,819,849) | |
Other Assets & Liabilities, Net | | |
| |
The accompanying Notes to Financial Statements are an integral part of this statement.
12
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) At January 31, 2024, securities and/or cash totaling $1,247,750 were pledged as collateral.
Investments in derivatives
|
| | | | | Value/Unrealized
appreciation ($) | Value/Unrealized
depreciation ($) |
U.S. Treasury 2-Year Note | | | | | | |
Notes to Portfolio of Investments
| 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 January 31, 2024, the total value of these securities amounted to $426,843,643, which represents 38.57% of total net assets. |
| 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 January 31, 2024. |
| Represents a security purchased on a when-issued basis. |
| Variable rate security. The interest rate shown was the current rate as of January 31, 2024. |
| 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 January 31, 2024. |
| Principal and interest may not be guaranteed by a governmental entity. |
| Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At January 31, 2024, the total value of these securities amounted to $1,099,999, which represents 0.10% of total net assets. |
| Valuation based on significant unobservable inputs. |
| The rate shown is the seven-day current annualized yield at January 31, 2024. |
| As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended January 31, 2024 are as follows: |
| | | | Net change in
unrealized
appreciation
(depreciation)($) | | | | |
Columbia Short-Term Cash Fund, 5.541% |
| | | | | | | | |
Abbreviation Legend
| Collateralized Mortgage Obligation |
| Constant Maturity Treasury |
| Secured Overnight Financing Rate |
Currency Legend
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.).
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
13
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Fair value measurements (continued)
■
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 January 31, 2024:
| | | | |
Investments in Securities | | | | |
Asset-Backed Securities — Non-Agency | | | | |
Commercial Mortgage-Backed Securities - Non-Agency | | | | |
| | | | |
Foreign Government Obligations | | | | |
Residential Mortgage-Backed Securities - Agency | | | | |
Residential Mortgage-Backed Securities - Non-Agency | | | | |
| | | | |
U.S. Government & Agency Obligations | | | | |
| | | | |
Total Investments in Securities | | | | |
Investments in Derivatives | | | | |
| | | | |
| | | | |
| | | | |
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.
14
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Statement of Assets and LiabilitiesJanuary 31, 2024 (Unaudited)
| |
Investments in securities, at value | |
Unaffiliated issuers (cost $1,079,668,683) | |
Affiliated issuers (cost $28,151,166) | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Deferred compensation of board members | |
| |
| |
| |
| |
| |
Investments purchased on a delayed delivery basis | |
| |
Distributions to shareholders | |
Variation margin for futures contracts | |
| |
Distribution and/or service fees | |
| |
Compensation of chief compliance officer | |
Compensation of board members | |
| |
Deferred compensation of board members | |
| |
Net assets applicable to outstanding capital stock | |
| |
| |
Total distributable earnings (loss) | |
Total - representing net assets applicable to outstanding capital stock | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
15
Statement of OperationsSix Months Ended January 31, 2024 (Unaudited)
| |
| |
Dividends — affiliated issuers | |
| |
| |
| |
| |
| |
Distribution and/or service fees | |
| |
| |
| |
| |
| |
| |
| |
Printing and postage fees | |
| |
| |
| |
Compensation of chief compliance officer | |
Compensation of board members | |
Deferred compensation of board members | |
| |
| |
| |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | |
Investments — affiliated issuers | |
| |
| |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | |
Investments — affiliated issuers | |
| |
Net change in unrealized appreciation (depreciation) | |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Statement of Changes in Net Assets
| Six Months Ended
January 31, 2024
(Unaudited) | |
| | |
| | |
| | |
Net change in unrealized appreciation (depreciation) | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders | | |
Net investment income and net realized gains | | |
| | |
| | |
| | |
| | |
Total distributions to shareholders | | |
Decrease in net assets from capital stock activity | | |
Total decrease in net assets | | |
Net assets at beginning of period | | |
Net assets at end of period | | |
| | |
| January 31, 2024 (Unaudited) | |
| | | | |
|
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
17
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
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Total
distributions to
shareholders |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Notes to Financial Highlights |
| 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. |
| Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| |
| Class A shares commenced operations on February 20, 2019. Per share data and total return reflect activity from that date. |
| Advisor Class shares commenced operations on December 3, 2018. Per share data and total return reflect activity from that date. |
| Institutional Class shares commenced operations on December 3, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to Financial Statements are an integral part of this statement.
18
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
19
Notes to Financial StatementsJanuary 31, 2024 (Unaudited) Note 1. Organization
Columbia Ultra Short Term 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.
Columbia Ultra Short Term Bond Fund must be purchased through financial intermediaries that, by written agreement with Columbia Management Investment Distributors, Inc., are specifically authorized to sell the Fund’s shares.
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 shares are offered to the general public for investment. Advisor Class, Institutional 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 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.
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.
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Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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
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Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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. 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.
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Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (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 January 31, 2024:
| | |
| Statement
of assets and liabilities
location | |
| Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | |
| 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 January 31, 2024:
Amount of realized gain (loss) on derivatives recognized in income |
| |
| |
|
Change in unrealized appreciation (depreciation) on derivatives recognized in income |
| |
| |
The following table is a summary of the average daily outstanding volume by derivative instrument for the six months ended January 31, 2024:
| Average notional
amounts ($) |
Futures contracts — short | |
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.
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.
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Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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.
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.
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Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Recent accounting pronouncements and regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission adopted a final rule, "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 0.21% of the Fund’s 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 "Deferred compensation of board members" 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 3 Class shares are subject to an annual limitation of not more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
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Notes to Financial Statements (continued)January 31, 2024 (Unaudited) For the six months ended January 31, 2024, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
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 combined distribution and service fee to the Distributor at the maximum annual rate of 0.15% of the average daily net assets attributable to Class A shares of 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 for Class A, Advisor Class and Institutional Class and permanently for as long as the Investment Manager manages the Fund for Institutional 3 Class, 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:
| December 1, 2023
through
November 30, 2024 | |
| | |
| | |
| | |
| | |
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.
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Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) At January 31, 2024, 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:
| Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| | | |
Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss carryforwards, determined at July 31, 2023, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
No expiration
short-term ($) | No expiration
long-term ($) | |
| | |
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 $418,748,855 and $659,359,518, respectively, for the six months ended January 31, 2024, of which $8,481,703 and $25,064,252, 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 April 2, 2024, to a discretionary liquidity fee of up to 2% if the imposition of such a fee is determined to be in the best interest of the Affiliated MMF and, by October 2, 2024, to a liquidity fee if daily net redemptions exceed 5% of net assets.
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.
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Notes to Financial Statements (continued)January 31, 2024 (Unaudited) The Fund’s activity in the Interfund Program during the six months ended January 31, 2024 was as follows:
| | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| | | |
Interest income earned by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at January 31, 2024.
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 January 31, 2024.
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.
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Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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 countermeasures 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.
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
29
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Shareholder concentration risk
At January 31, 2024, one unaffiliated shareholder of record owned 31.2% 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. Affiliated shareholders of record owned 50.4% 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.
30
Columbia Ultra Short Term Bond Fund | Semiannual Report 2024
[THIS PAGE INTENTIONALLY LEFT BLANK]
Columbia Ultra Short Term Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
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.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Semiannual ReportJanuary 31, 2024 (Unaudited) In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule, "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.
Each Tailored Shareholder Report will be share-class specific and will highlight key fund information the SEC believes is most relevant to investors in assessing their investment in the Fund. Much of the information, including a Fund’s financial statements, that is currently disclosed in a Fund’s shareholder reports will instead be made available on the Fund’s website and filed on Form N-CSR on an annual and semiannual basis. This information will be delivered to investors free of charge upon request. Columbia Fund reports will follow the Tailored Shareholder Report approach beginning with reports covering the period ending May 31, 2024.
The new rule also requires the Fund to mail a printed version of the Tailored Shareholder Report to all shareholders who have not elected to receive shareholder reports electronically. Rather than receiving a postcard notifying investors that the shareholder report for Funds in which they invest is available online, investors will begin receiving the Tailored Shareholder Report in the mail unless they have elected to receive their Fund documents electronically.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Tax-Exempt 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 Tax-Exempt Fund | Semiannual Report 2024
Fund at a Glance(Unaudited) Investment objective
The Fund seeks total return, consisting of current income exempt from federal income tax and of capital appreciation, consistent with moderate fluctuation of principal.
Portfolio management
Catherine Stienstra
Co-Portfolio Manager
Managed Fund since 2018
Douglas J. White, CFA
Co-Portfolio Manager
Managed Fund since 2022
Average annual total returns (%) (for the period ended January 31, 2024) |
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Bloomberg Municipal Bond Index | | | | | |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products/mutual-funds/appended-performance for more information.
The Bloomberg Municipal Bond Index is an unmanaged index considered representative of the broad market for investment-grade, tax-exempt bonds with a maturity of at least one year.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Tax-Exempt Fund | Semiannual Report 2024
3
Fund at a Glance (continued)(Unaudited)
Quality breakdown (%) (at January 31, 2024) |
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Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
Top Ten States/Territories (%)
(at January 31, 2024) |
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Percentages indicated are based upon total investments excluding Money Market Funds and investments in derivatives, if any.
For further detail about these holdings, please refer to the section entitled “Portfolio of Investments.”
Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.
4
Columbia Tax-Exempt Fund | Semiannual Report 2024
Understanding Your Fund’s Expenses(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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
August 1, 2023 — January 31, 2024 |
| Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
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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 Tax-Exempt Fund | Semiannual Report 2024
5
Portfolio of InvestmentsJanuary 31, 2024 (Unaudited)(Percentages represent value of investments compared to net assets)
Investments in securities
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New York City Water & Sewer System(a),(b) |
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Series 2013 (JPMorgan Chase Bank) |
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Total Floating Rate Notes
(Cost $650,000) | |
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Black Belt Energy Gas District |
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Series 2023D-1 (Mandatory Put 02/01/29) |
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County of Jefferson Sewer |
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Southeast Energy Authority |
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Series 2002B-1 (Mandatory Put 08/01/28) |
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Northern Tobacco Securitization Corp. |
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Arizona Industrial Development Authority |
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Macombs Facility Project Social Bonds |
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Social Bonds - Macombs Facility Project |
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Industrial Development Authority of the County of Pima (The)(c) |
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American Leadership Academy |
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Municipal Bonds (continued) |
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Industrial Development Authority of the County of Yavapai (The) |
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Yavapai Regional Medical Center |
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La Paz County Industrial Development Authority |
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Charter School Solutions - Harmony Public Schools Project |
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Salt River Project Agricultural Improvement & Power District |
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Salt Verde Financial Corp. |
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California Community Choice Financing Authority |
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Green Bonds - Clean Energy Project |
Series 2023 (Mandatory Put 03/01/31) |
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California Community Choice Financing Authority(d) |
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Green Bonds - Clean Energy Project |
Series 2023 (Mandatory Put 11/01/30) |
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California Health Facilities Financing Authority |
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Subordinated Series 2017A-2 |
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California Municipal Finance Authority |
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Community Medical Centers |
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The accompanying Notes to Financial Statements are an integral part of this statement.
6
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
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California Municipal Finance Authority(c),(e),(f) |
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UTS Renewable Energy-Waste Water Facilities |
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California Public Finance Authority |
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California School Finance Authority(c) |
Prerefunded 07/01/25 Revenue Bonds |
River Springs Charter School Project |
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California State Public Works Board |
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Various Correctional Facilities |
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California Statewide Communities Development Authority(c) |
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California Baptist University |
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California Statewide Communities Development Authority |
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Loma Linda University Medical Center |
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Castaic Lake Water Agency(g) |
Certificate of Participation |
Capital Appreciation - Water System Improvement Project |
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Golden State Tobacco Securitization Corp.(g) |
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Subordinated Series 2021B-2 |
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Golden State Tobacco Securitization Corp. |
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Municipal Bonds (continued) |
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San Diego County Regional Airport Authority(e) |
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San Francisco City & County Airport Commission - San Francisco International Airport(e) |
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Unlimited General Obligation Bonds |
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Unrefunded Unlimited General Obligation Bonds |
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West Contra Costa Unified School District |
Unlimited General Obligation Refunding Bonds |
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City & County of Denver Airport System(e) |
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Subordinated Series 2018A |
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Colorado Bridge Enterprise(e) |
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Colorado Educational & Cultural Facilities Authority(c) |
Improvement Refunding Revenue Bonds |
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Colorado Health Facilities Authority |
Improvement Refunding Revenue Bonds |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
7
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
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Covenant Retirement Communities |
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CommonSpirit Health Obligation Group |
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NJH-SJH Center for Outpatient Health |
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Fiddlers Business Improvement District(c) |
Unlimited General Obligation Refunding Bonds |
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Connecticut State Health & Educational Facilities Authority(c) |
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Church Home of Hartford, Inc. |
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District of Columbia 1.1% |
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Friendship Public Charter School |
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Unlimited General Obligation Bonds |
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Metropolitan Washington Airports Authority(e) |
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Municipal Bonds (continued) |
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Metropolitan Washington Airports Authority Dulles Toll Road |
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Capital Trust Agency, Inc.(c) |
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Capital Trust Agency, Inc.(c),(f) |
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1st Mortgage Tallahassee Tapestry Senior Housing Project |
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Capital Trust Agency, Inc.(c),(g) |
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Capital Trust Authority(c) |
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County of Broward Airport System(e) |
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County of Miami-Dade Aviation(e) |
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County of Osceola Transportation(g) |
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The accompanying Notes to Financial Statements are an integral part of this statement.
8
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
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Florida Development Finance Corp.(c) |
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Renaissance Charter School, Inc. Projects |
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Florida Housing Finance Corp. |
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Hillsborough County Aviation Authority(e) |
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Tampa International Airport |
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Palm Beach County Health Facilities Authority |
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Toby & Leon Cooperman Sinai |
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Polk County Industrial Development Authority |
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Putnam County Development Authority |
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Sarasota County Public Hospital District |
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Sarasota Memorial Hospital |
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Seminole County Industrial Development Authority |
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Legacy Pointe at UCF Project |
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Municipal Bonds (continued) |
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Tampa-Hillsborough County Expressway Authority |
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Atlanta Urban Residential Finance Authority |
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Series 2023B (Mandatory Put 06/01/25) |
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Fulton County Residential Care Facilities for the Elderly Authority |
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Lenbrook Square Foundation, Inc. |
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Georgia State Road & Tollway Authority(c),(g) |
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I-75 S Express Lanes Project |
Series 2014 Escrowed to Maturity |
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Main Street Natural Gas, Inc. |
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Series 2022B (Mandatory Put 06/01/29) |
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Series 2023A (Mandatory Put 06/01/30) |
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Series 2023C (Mandatory Put 09/01/30) |
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Municipal Electric Authority of Georgia |
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Plant Vogtle Units 3&4 Project |
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Oconee County Industrial Development Authority |
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Presbyterian Village Athens Project |
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Idaho Health Facilities Authority |
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St. Luke’s Health System Project |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
9
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
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Taxable - Terraces of Boise Project |
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Terraces of Boise Project |
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Chicago Board of Education(c) |
Unlimited General Obligation Bonds |
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Chicago Board of Education |
Unlimited General Obligation Bonds |
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Chicago Midway International Airport(e) |
Prerefunded 04/03/24 Revenue Bonds |
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Chicago O’Hare International Airport(e) |
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Municipal Bonds (continued) |
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Chicago O’Hare International Airport |
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City of Chicago Wastewater Transmission |
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City of Chicago Waterworks |
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Cook County Community College District No. 508 |
Unlimited General Obligation Bonds |
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Illinois Finance Authority |
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Northshore University Health System |
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Silver Cross Hospital & Medical Centers |
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Illinois Housing Development Authority |
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Illinois State Toll Highway Authority |
|
|
| | | | |
Metropolitan Pier & Exposition Authority(g) |
|
McCormick Place Expansion |
|
| | | | |
| | | | |
| | | | |
McCormick Place Expansion Project |
|
| | | | |
Metropolitan Pier & Exposition Authority |
|
McCormick Place Expansion |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
10
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
McCormick Place Expansion Project |
|
| | | | |
Metropolitan Water Reclamation District of Greater Chicago |
Limited General Obligation Refunding Bonds |
|
| | | | |
Regional Transportation Authority |
|
|
| | | | |
|
Unlimited General Obligation Bonds |
|
| | | | |
|
|
| | | | |
|
| | | | |
| | | | |
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
| | | | |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
State of Illinois Sales Tax(h) |
|
|
|
| | | | |
| |
|
Indiana Housing & Community Development Authority |
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Indiana Housing & Community Development Authority(h) |
|
|
|
| | | | |
Indianapolis Local Public Improvement Bond Bank |
|
|
|
| | | | |
| |
|
|
|
Iowa Fertilizer Co. Project |
|
| | | | |
Lifespace Communities, Inc. |
|
| | | | |
| | | | |
|
Lifespace Communities, Inc. |
|
| | | | |
| |
|
Kentucky Economic Development Finance Authority |
|
|
|
| | | | |
Kentucky Municipal Power Agency |
|
|
| | | | |
Kentucky Public Energy Authority |
|
Series 2023A-1 (Mandatory Put 02/01/32) |
| | | | |
| |
|
Louisiana Public Facilities Authority |
Prerefunded 05/15/26 Revenue Bonds |
Ochsner Clinic Foundation Project |
|
| | | | |
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
11
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
|
Ochsner Clinic Foundation Project |
|
| | | | |
|
Provident Group - Flagship Properties |
|
| | | | |
Louisiana Public Facilities Authority(e) |
|
Impala Warehousing LLC Project |
|
| | | | |
New Orleans Aviation Board(e) |
|
General Airport-North Terminal |
|
| | | | |
|
| | | | |
|
|
Nustar Logistics LP Project |
Series 2011 (Mandatory Put 06/01/25) |
| | | | |
| |
|
Maryland Community Development Administration |
|
|
| | | | |
|
|
| | | | |
Maryland Economic Development Corp.(e) |
|
Green Bonds - Purple Line Light Rail Project |
|
| | | | |
Maryland Economic Development Corp. |
|
|
|
| | | | |
Maryland Health & Higher Educational Facilities Authority |
|
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Meritus Medical Center Issue |
|
| | | | |
| |
|
Commonwealth of Massachusetts |
|
|
| | | | |
Massachusetts Bay Transportation Authority |
|
|
| | | | |
Massachusetts Clean Water Trust (The) |
|
|
|
| | | | |
Massachusetts Development Finance Agency(f) |
|
|
|
| | | | |
Massachusetts Development Finance Agency |
|
UMass Boston Student Housing Project |
|
| | | | |
WGBH Educational Foundation |
|
| | | | |
Massachusetts Health & Educational Facilities Authority |
|
|
|
| | | | |
Massachusetts Housing Finance Agency |
|
|
|
| | | | |
Massachusetts Port Authority(e) |
|
|
|
| | | | |
| |
The accompanying Notes to Financial Statements are an integral part of this statement.
12
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
|
Michigan Finance Authority |
Prerefunded 12/01/29 Revenue Bonds |
|
|
| | | | |
|
|
|
| | | | |
Senior Lien - Great Lakes Water Authority |
|
| | | | |
|
|
|
| | | | |
|
|
| | | | |
Michigan State Housing Development Authority |
|
|
| | | | |
|
|
| | | | |
Michigan Strategic Fund(e) |
|
|
|
| | | | |
| | | | |
|
Unlimited General Obligation Refunding Bonds |
Series 1998 (NPFGC) (Qualified School Board Loan Fund) |
| | | | |
St. John’s Public Schools |
Unlimited General Obligation Refunding Bonds |
Series 1998 (NPFGC) (Qualified School Bond Loan Fund) |
| | | | |
|
|
Rebuilding Michigan Program |
|
| | | | |
Wayne County Airport Authority(e) |
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Wayne County Airport Authority |
|
|
| | | | |
Williamston Community School District |
Unlimited General Obligation Bonds |
Series 1996 (NPFGC) (Qualified School Bond Loan Fund) |
| | | | |
| |
|
|
|
|
|
| | | | |
|
|
Folkstone Senior Living Co. |
|
| | | | |
Southern Minnesota Municipal Power Agency(g) |
|
|
|
| | | | |
St. Cloud Housing & Redevelopment Authority(d) |
|
Sanctuary St. Cloud Project |
|
| | | | |
| |
|
Health & Educational Facilities Authority |
|
|
|
| | | | |
Health & Educational Facilities Authority of the State of Missouri |
|
|
|
| | | | |
| | | | |
Kansas City Industrial Development Authority(e) |
|
Kansas City International Airport |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
13
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Kirkwood Industrial Development Authority |
|
|
|
| | | | |
| | | | |
Missouri Housing Development Commission |
|
First Place Homeownership Loan Program |
|
| | | | |
| | | | |
Missouri Joint Municipal Electric Utility Commission |
|
|
| | | | |
St. Louis County Industrial Development Authority |
|
Friendship Village Sunset Hills |
|
| | | | |
| |
|
Central Plains Energy Project |
|
|
Series 2022-1 (Mandatory Put 10/01/29) |
| | | | |
Douglas County Hospital Authority No. 2 |
|
Madonna Rehabilitation Hospital |
|
| | | | |
| | | | |
Douglas County Hospital Authority No. 3 |
|
Health Facilities - Nebraska Methodist Health System |
|
| | | | |
Nebraska Educational Health Cultural & Social Services Finance Authority |
|
|
|
| | | | |
| | | | |
Nebraska Investment Finance Authority |
|
|
| | | | |
| |
Municipal Bonds (continued) |
| | | | |
|
|
|
Carson Tahoe Regional Medical Center |
|
| | | | |
|
Carson Tahoe Regional Medical Center |
|
| | | | |
State of Nevada Department of Business & Industry(c) |
|
|
|
| | | | |
|
| | | | |
| | | | |
| |
|
New Hampshire Business Finance Authority |
|
|
|
| | | | |
New Hampshire Business Finance Authority(c) |
|
|
|
| | | | |
New Hampshire Health & Education Facilities Authority Act(f) |
|
|
|
| | | | |
| | | | |
| |
|
City of Newark Mass Transit Access Tax |
|
Mulberry Pedestrian Bridge Redevelopment Project |
|
| | | | |
Middlesex County Improvement Authority(f) |
|
|
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
14
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
New Jersey Economic Development Authority |
Prerefunded 06/15/25 Revenue Bonds |
|
| | | | |
Prerefunded 06/15/27 Revenue Bonds |
|
| | | | |
|
School Facilities Construction |
|
| | | | |
|
| | | | |
Subordinated Series 2017A |
| | | | |
|
Portal North Bridge Project |
|
| | | | |
New Jersey Housing & Mortgage Finance Agency |
|
|
| | | | |
New Jersey Transportation Trust Fund Authority |
|
|
|
| | | | |
|
|
|
| | | | |
|
| | | | |
New Jersey Turnpike Authority |
|
|
| | | | |
|
|
| | | | |
| | | | |
Tobacco Settlement Financing Corp. |
|
|
| | | | |
Subordinated Series 2018B |
| | | | |
| |
Municipal Bonds (continued) |
| | | | |
|
New Mexico Mortgage Finance Authority |
|
Single Family Mortgage Program |
Series 2019C Class I (GNMA) |
| | | | |
| | | | |
| | | | |
| |
|
Build NYC Resource Corp.(c),(e) |
|
Pratt Paper, Inc. Project |
|
| | | | |
|
Unlimited General Obligation Bonds |
|
| | | | |
Subordinated Series 2022B-1 |
| | | | |
Subordinated Series 2023E-1 |
| | | | |
Housing Development Corp. |
|
|
|
| | | | |
Metropolitan Transportation Authority |
|
|
|
| | | | |
New York City Housing Development Corp. |
|
|
|
| | | | |
New York City Municipal Water Finance Authority |
|
|
| | | | |
New York City Transitional Finance Authority |
|
|
Subordinated Series 2020D |
| | | | |
Subordinated Series 2022A-1 |
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
15
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Subordinated Series 2022F-1 |
| | | | |
New York Counties Tobacco Trust VI |
Tobacco Settlement Pass-Through Bonds |
|
| | | | |
New York Liberty Development Corp. |
|
|
| | | | |
New York State Dormitory Authority |
|
Independent School District-Educational Housing Services |
|
| | | | |
NYU Langone Hospitals Obligated Group |
|
| | | | |
New York State Thruway Authority |
|
Personal Income Tax - Bidding Group |
|
| | | | |
New York Transportation Development Corp.(e) |
|
Delta Air Lines, Inc. LaGuardia |
|
| | | | |
John F. Kennedy International Airport New Terminal One Project |
|
| | | | |
LaGuardia Airport Terminal C&D |
|
| | | | |
New York State Thruway Service Areas Project |
|
| | | | |
Terminal 4 John F. Kennedy International Airport Project |
|
| | | | |
| | | | |
Port Authority of New York & New Jersey(e) |
|
|
| | | | |
|
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
|
|
| | | | |
State of New York Mortgage Agency |
|
|
| | | | |
Triborough Bridge & Tunnel Authority |
|
|
|
| | | | |
|
| | | | |
Ulster County Capital Resource Corp.(c) |
|
Woodland Pond at New Paltz |
|
| | | | |
| | | | |
| | | | |
Westchester County Local Development Corp. |
|
Westchester Medical Center |
|
| | | | |
| |
|
North Carolina Department of Transportation(e) |
|
|
|
| | | | |
North Carolina Medical Care Commission |
|
|
| | | | |
|
|
| | | | |
| | | | |
|
Lutheran Services for the Aging |
|
| | | | |
North Carolina Turnpike Authority(g) |
|
|
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
|
| | | | |
Triangle Expressway System |
|
| | | | |
| | | | |
|
| | | | |
| |
|
North Dakota Housing Finance Agency |
|
|
|
| | | | |
|
|
| | | | |
Housing Finance Program-Home Mortgage Finance |
|
| | | | |
| |
|
Buckeye Tobacco Settlement Financing Authority |
Refunding Senior Revenue Bonds |
|
| | | | |
|
|
United Church Homes, Inc. |
|
| | | | |
| | | | |
Lake County Port & Economic Development Authority(c),(f) |
|
1st Mortgage - Tapestry Wickliffe LLC |
|
| | | | |
| | | | |
Ohio Air Quality Development Authority(c),(e) |
|
|
|
| | | | |
Ohio Turnpike & Infrastructure Commission |
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
|
|
Portsmouth Bypass Project |
|
| | | | |
Toledo-Lucas County Port Authority |
|
University of Toledo Project |
|
| | | | |
| |
|
Tulsa County Industrial Authority |
|
|
|
| | | | |
|
Clackamas County Hospital Facility Authority |
|
|
|
| | | | |
Hospital Facilities Authority of Multnomah County |
Prerefunded 10/01/24 Revenue Bonds |
Mirabella at South Waterfront |
|
| | | | |
Port of Portland Airport(e) |
|
|
|
| | | | |
|
Unlimited General Obligation Bonds |
Article XI - Q State Project |
|
| | | | |
State of Oregon Housing & Community Services Department |
|
|
| | | | |
Washington & Multnomah Counties School District No. 48J Beaverton(g) |
Unlimited General Obligation Bonds |
|
| | | | |
| |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
17
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
|
Commonwealth Financing Authority |
|
Tobacco Master Settlement Payment |
|
| | | | |
Commonwealth of Pennsylvania |
Refunding Certificate of Participation |
|
| | | | |
Cumberland County Municipal Authority |
Prerefunded 01/01/25 Revenue Bonds |
Diakon Lutheran Social Ministries |
|
| | | | |
|
|
|
| | | | |
Delaware Valley Regional Finance Authority |
|
|
| | | | |
Franklin County Industrial Development Authority |
|
Menno-Haven, Inc. Project |
|
| | | | |
|
|
|
|
| | | | |
Montgomery County Industrial Development Authority |
|
Meadowood Senior Living Project |
|
| | | | |
Northampton County General Purpose Authority |
|
St. Luke’s University Health Network |
|
| | | | |
Pennsylvania Economic Development Financing Authority |
|
Presbyterian Senior Living Project |
|
| | | | |
|
| | | | |
Municipal Bonds (continued) |
| | | | |
|
Presbyterian Senior Living Project |
|
| | | | |
Pennsylvania Economic Development Financing Authority(c),(f) |
|
Tapestry Moon Senior Housing Project |
|
| | | | |
Pennsylvania Economic Development Financing Authority(e) |
|
|
|
| | | | |
| | | | |
Proctor & Gamble Paper Project |
|
| | | | |
The PennDOT Major Bridges Package One Project |
|
| | | | |
|
| | | | |
Pennsylvania Housing Finance Agency |
|
|
| | | | |
|
|
| | | | |
Pennsylvania Turnpike Commission |
|
Subordinated Series 2015A-1 |
| | | | |
|
|
| | | | |
Subordinated Series 2014A-1 |
| | | | |
Subordinated Series 2017B-1 |
| | | | |
Subordinated Series 2018B |
| | | | |
Philadelphia Authority for Industrial Development |
|
First Philadelphia Preparatory Charter School |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
18
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
School District of Philadelphia (The) |
Limited General Obligation Bonds |
|
| | | | |
| |
|
Commonwealth of Puerto Rico(g),(i) |
|
|
| | | | |
|
| | | | |
Puerto Rico Commonwealth Aqueduct & Sewer Authority(c),(i) |
|
|
|
| | | | |
Puerto Rico Electric Power Authority(f),(i) |
|
|
| | | | |
|
| | | | |
Puerto Rico Public Finance Corp.(i) |
|
Commonwealth Appropriation |
Series 2002E Escrowed to Maturity (AMBAC) |
| | | | |
|
Commonwealth Appropriation |
Series 2002E Escrowed to Maturity |
| | | | |
Series 2002E Escrowed to Maturity (AMBAC) |
| | | | |
Puerto Rico Sales Tax Financing Corp.(g),(i) |
|
|
| | | | |
Puerto Rico Sales Tax Financing Corp.(i) |
|
|
| | | | |
| |
|
Patriots Energy Group Financing Agency |
|
Series 2023B-1 (Mandatory Put 03/01/31) |
| | | | |
Municipal Bonds (continued) |
| | | | |
Piedmont Municipal Power Agency |
|
|
| | | | |
South Carolina Jobs-Economic Development Authority |
Prerefunded 11/01/24 Revenue Bonds |
York Preparatory Academy Project |
|
| | | | |
South Carolina Public Service Authority |
|
|
| | | | |
South Carolina State Housing Finance & Development Authority |
|
|
| | | | |
| | | | |
| |
|
South Dakota Health & Educational Facilities Authority |
|
|
|
| | | | |
|
Chattanooga Health Educational & Housing Facility Board |
|
Student Housing - CDFI Phase I |
|
| | | | |
| | | | |
Greeneville Health & Educational Facilities Board |
|
Ballad Health Obligation Group |
|
| | | | |
New Memphis Arena Public Building Authority(g) |
|
|
|
| | | | |
| | | | |
| | | | |
| | | | |
Shelby County Health Educational & Housing Facilities Board |
|
The Farms at Bailey Station Project |
|
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
19
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Tennessee Energy Acquisition Corp. |
|
|
Series 2023A-1 (Mandatory Put 05/01/28) |
| | | | |
Tennessee Housing Development Agency |
|
|
|
| | | | |
| | | | |
|
|
| | | | |
|
|
| | | | |
| |
|
Arlington Higher Education Finance Corp.(c) |
|
Legacy Traditional Schools - Texas Project |
|
| | | | |
Austin Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Central Texas Regional Mobility Authority(g) |
|
|
|
| | | | |
Central Texas Turnpike System |
|
Subordinated Series 2015C |
| | | | |
City of Houston Airport System(e) |
|
Subordinated Series 2023A (AGM) |
| | | | |
|
Subordinated Series 2020A |
| | | | |
Clifton Higher Education Finance Corp. |
|
|
|
| | | | |
| | | | |
Municipal Bonds (continued) |
| | | | |
|
| | | | |
|
|
| | | | |
International Leadership of Texas |
|
| | | | |
|
| | | | |
| | | | |
Conroe Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Crowley Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
| | | | |
Cypress-Fairbanks Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Dallas Independent School District(h) |
Unlimited General Obligation Bonds |
|
| | | | |
|
|
|
| | | | |
Deaf Smith County Hospital District |
Limited General Obligation Refunding Bonds |
|
| | | | |
Denton Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Harris County Toll Road Authority (The) |
|
|
|
| | | | |
Hays Consolidated Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
20
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Humble Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Katy Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
|
| | | | |
Lamar Consolidated Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
New Hope Cultural Education Facilities Finance Corp. |
|
Texas Children’s Health System |
|
| | | | |
|
|
|
| | | | |
Collegiate Housing College Station |
|
| | | | |
New Hope Cultural Education Facilities Finance Corp.(g) |
|
|
|
| | | | |
New Hope Cultural Education Facilities Finance Corp.(f) |
|
Cardinal Bay, Inc. - Village on the Park |
|
| | | | |
| | | | |
Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project |
|
| | | | |
Northwest Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Pottsboro Higher Education Finance Corp. |
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Prosper Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Red River Health Facilities Development Corp. |
Prerefunded 11/15/24 Revenue Bonds |
|
|
| | | | |
Rockwall Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Sanger Industrial Development Corp.(c),(e),(f) |
|
|
|
| | | | |
Sherman Independent School District |
Unlimited General Obligation Bonds |
|
| | | | |
Tarrant County College District |
Limited General Obligation Bonds |
|
| | | | |
Tarrant County Cultural Education Facilities Finance Corp. |
|
|
|
| | | | |
| | | | |
|
Methodist Hospitals of Dallas |
|
| | | | |
Tarrant County Cultural Education Facilities Finance Corp.(f) |
|
|
|
| | | | |
Texas Private Activity Bond Surface Transportation Corp. |
|
LBJ Infrastructure Group LLC I-635 Managed Lanes Project |
|
| | | | |
Senior Lien - North Tarrant Express |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
21
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Texas Private Activity Bond Surface Transportation Corp.(e) |
|
NTE Mobility Partners LLC North Tarrant Express Project |
|
| | | | |
|
|
| | | | |
Senior Lien - Blueridge Transportation Group LLC |
|
| | | | |
| | | | |
Texas Transportation Commission |
|
State Highway 249 System Toll |
|
| | | | |
Texas Water Development Board |
|
|
| | | | |
Tomball Independent School District |
Unlimited General Obligation Bonds |
|
|
| | | | |
| | | | |
| | | | |
| |
|
City of Salt Lake City Airport(e) |
|
|
| | | | |
Salt Lake City Corp. Airport(e) |
|
|
| | | | |
UIPA Crossroads Public Infrastructure District(c) |
|
|
| | | | |
| |
|
Fredericksburg Economic Development Authority |
|
Mary Washington Healthcare Obligation |
|
| | | | |
| | | | |
Municipal Bonds (continued) |
| | | | |
Virginia Small Business Financing Authority(e) |
|
Senior Lien - 95 Express Lanes LLC Project |
|
| | | | |
|
|
|
| | | | |
| | | | |
| |
|
King County Housing Authority |
|
|
| | | | |
King County Public Hospital District No. 4 |
|
|
| | | | |
| | | | |
Washington Health Care Facilities Authority |
|
|
|
| | | | |
Virginia Mason Medical Center |
|
| | | | |
Washington State Housing Finance Commission |
Prerefunded 07/01/25 Revenue Bonds |
|
|
| | | | |
| | | | |
|
|
|
| | | | |
Washington State Housing Finance Commission(c) |
Prerefunded 07/01/25 Revenue Bonds |
|
|
| | | | |
|
Seattle Academy of Arts and Sciences Project |
|
| | | | |
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
22
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
|
|
| | | | |
| |
|
West Virginia Hospital Finance Authority |
|
West Virginia University Health System Obligation |
|
| | | | |
|
|
|
|
|
| | | | |
|
ACTS Retirement - Life Communities |
|
| | | | |
|
| | | | |
Public Finance Authority(c) |
|
Mary’s Woods at Marylhurst |
|
| | | | |
| | | | |
Mary’s Woods at Marylhurst, Inc. |
|
| | | | |
Public Finance Authority(c),(g) |
|
|
|
| | | | |
University of Wisconsin Hospitals & Clinics |
|
Green Bonds - University of Wisconsin Hospital |
|
| | | | |
Wisconsin Center District(g) |
|
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Wisconsin Health & Educational Facilities Authority |
|
St. Camillus Health System, Inc. |
|
| | | | |
|
Covenant Communities, Inc. Project |
|
| | | | |
| | | | |
|
| | | | |
| | | | |
| | | | |
Unrefunded Refunding Revenue Bond |
|
|
| | | | |
| |
|
|
|
Basin Electric Power Cooperative |
|
| | | | |
Total Municipal Bonds
(Cost $2,209,398,594) | |
|
| | |
BlackRock Liquidity Funds MuniCash, Institutional | | |
Total Money Market Funds
(Cost $79,423) | |
Total Investments in Securities
(Cost $2,210,128,017) | |
Other Assets & Liabilities, Net | | |
| |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
23
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Notes to Portfolio of Investments
| The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of January 31, 2024. |
| 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 January 31, 2024, the total value of these securities amounted to $87,300,642, which represents 4.17% of total net assets. |
| 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 January 31, 2024. |
| Income from this security may be subject to alternative minimum tax. |
| Represents a security in default. |
| |
| Represents a security purchased on a when-issued basis. |
| Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At January 31, 2024, the total value of these securities amounted to $53,394,646, which represents 2.55% of total net assets. |
| The rate shown is the seven-day current annualized yield at January 31, 2024. |
Abbreviation Legend
| Assured Guaranty Municipal Corporation |
| Ambac Assurance Corporation |
| Build America Mutual Assurance Co. |
| Federal Housing Authority |
| Government National Mortgage Association |
| U.S. Department of Housing and Urban Development |
| National Public Finance Guarantee Corporation |
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
The accompanying Notes to Financial Statements are an integral part of this statement.
24
Columbia Tax-Exempt Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Fair value measurements (continued)
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 January 31, 2024:
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Investments in Securities | | | | |
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Total Investments in Securities | | | | |
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 Tax-Exempt Fund | Semiannual Report 2024
25
Statement of Assets and LiabilitiesJanuary 31, 2024 (Unaudited)
| |
Investments in securities, at value | |
Unaffiliated issuers (cost $2,210,128,017) | |
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Deferred compensation of board members | |
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Investments purchased on a delayed delivery basis | |
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Distributions to shareholders | |
| |
Distribution and/or service fees | |
| |
Compensation of chief compliance officer | |
Compensation of board members | |
| |
Deferred compensation of board members | |
| |
Net assets applicable to outstanding capital stock | |
| |
| |
Total distributable earnings (loss) | |
Total - representing net assets applicable to outstanding capital stock | |
The accompanying Notes to Financial Statements are an integral part of this statement.
26
Columbia Tax-Exempt Fund | Semiannual Report 2024
Statement of Assets and Liabilities (continued)January 31, 2024 (Unaudited) | |
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| |
Net asset value per share | |
| |
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) | |
| |
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Net asset value per share | |
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Net asset value per share | |
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| |
Net asset value per share | |
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| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
27
Statement of OperationsSix Months Ended January 31, 2024 (Unaudited)
| |
| |
Dividends — unaffiliated issuers | |
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Distribution and/or service fees | |
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Printing and postage fees | |
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| |
| |
Interest on interfund lending | |
Compensation of chief compliance officer | |
Compensation of board members | |
Deferred compensation of board members | |
| |
| |
Fees waived or expenses reimbursed by Investment Manager and its affiliates | |
| |
| |
| |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | |
| |
| |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | |
Net change in unrealized appreciation (depreciation) | |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
The accompanying Notes to Financial Statements are an integral part of this statement.
28
Columbia Tax-Exempt Fund | Semiannual Report 2024
Statement of Changes in Net Assets
| Six Months Ended
January 31, 2024
(Unaudited) | |
| | |
| | |
| | |
Net change in unrealized appreciation (depreciation) | | |
Net increase (decrease) in net assets resulting from operations | | |
Distributions to shareholders | | |
Net investment income and net realized gains | | |
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| | |
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| | |
| | |
Total distributions to shareholders | | |
Decrease in net assets from capital stock activity | | |
Total decrease in net assets | | |
Net assets at beginning of period | | |
Net assets at end of period | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
29
Statement of Changes in Net Assets (continued)
| | |
| January 31, 2024 (Unaudited) | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
30
Columbia Tax-Exempt Fund | Semiannual Report 2024
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Columbia Tax-Exempt Fund | Semiannual Report 2024
31
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
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
32
Columbia Tax-Exempt Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
33
Financial Highlights (continued)
| Net asset value,
beginning of
period | | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
| | | | | | | |
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| | | | | | | |
| | | | | | | |
| | | | | | | |
Notes to Financial Highlights |
| 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. |
| Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| Ratios include interfund lending expense which is less than 0.01%. |
| The benefits derived from expense reductions had an impact of less than 0.01%. |
| Ratios include interest and fee expense related to the participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund’s net assets, net asset value per share, total return or net investment income. |
| 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: |
The accompanying Notes to Financial Statements are an integral part of this statement.
34
Columbia Tax-Exempt Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Tax-Exempt Fund | Semiannual Report 2024
35
Notes to Financial StatementsJanuary 31, 2024 (Unaudited) Note 1. Organization
Columbia Tax-Exempt 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 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.
36
Columbia Tax-Exempt Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (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.
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.
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
Columbia Tax-Exempt Fund | Semiannual Report 2024
37
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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 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.
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 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 January 31, 2024:
Amount of realized gain (loss) on derivatives recognized in income |
| |
| |
The following table is a summary of the average daily outstanding volume by derivative instrument for the six months ended January 31, 2024:
| Average notional
amounts ($) |
Futures contracts — short | |
38
Columbia Tax-Exempt Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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 net tax-exempt and 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.
Columbia Tax-Exempt Fund | Semiannual Report 2024
39
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Recent accounting pronouncements and regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission adopted a final rule, "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 0.48% to 0.29% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2024 was 0.46% 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 "Deferred compensation of board members" 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.
40
Columbia Tax-Exempt Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
For the six months ended January 31, 2024, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
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 January 31, 2024, these minimum account balance fees reduced total expenses of the Fund by $2,634.
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 0.20% 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 0.60% 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 January 31, 2024, if any, are listed below:
| This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| 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 Tax-Exempt Fund | Semiannual Report 2024
41
Notes to Financial Statements (continued)January 31, 2024 (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:
| December 1, 2023
through
November 30, 2024 | |
| | |
| | |
| | |
| | |
| | |
| | |
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 January 31, 2024, 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:
| Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| | | |
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 July 31, 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 ($) | No expiration
long-term ($) | |
| | |
42
Columbia Tax-Exempt Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (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 $250,876,429 and $371,050,001, respectively, for the six months ended January 31, 2024. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. 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 January 31, 2024 was as follows:
| | Weighted average
interest rate (%) | Number of days
with outstanding loans |
| | | |
Interest expense incurred by the Fund is recorded as interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at January 31, 2024.
Note 7. 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 January 31, 2024.
Columbia Tax-Exempt Fund | Semiannual Report 2024
43
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Note 8. 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.
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.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support,
44
Columbia Tax-Exempt Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
Securities issued by a particular state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At January 31, 2024, affiliated shareholders of record owned 38.2% 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 9. 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 10. 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 Tax-Exempt Fund | Semiannual Report 2024
45
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Columbia Tax-Exempt Fund
P.O. Box 219104
Kansas City, MO 64121-9104
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.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
Semiannual ReportJanuary 31, 2024 (Unaudited) Columbia Oregon Intermediate Municipal Bond Fund
In October 2022, the Securities and Exchange Commission (SEC) adopted a final rule, "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.
Each Tailored Shareholder Report will be share-class specific and will highlight key fund information the SEC believes is most relevant to investors in assessing their investment in the Fund. Much of the information, including a Fund’s financial statements, that is currently disclosed in a Fund’s shareholder reports will instead be made available on the Fund’s website and filed on Form N-CSR on an annual and semiannual basis. This information will be delivered to investors free of charge upon request. Columbia Fund reports will follow the Tailored Shareholder Report approach beginning with reports covering the period ending May 31, 2024.
The new rule also requires the Fund to mail a printed version of the Tailored Shareholder Report to all shareholders who have not elected to receive shareholder reports electronically. Rather than receiving a postcard notifying investors that the shareholder report for Funds in which they invest is available online, investors will begin receiving the Tailored Shareholder Report in the mail unless they have elected to receive their Fund documents electronically.
Not FDIC or NCUA Insured • No Financial Institution Guarantee • May Lose Value
If you elect to receive the shareholder report for Columbia Oregon Intermediate Municipal 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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Fund at a Glance(Unaudited) Investment objective
The Fund seeks a high level of income exempt from federal and Oregon income tax by investing at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities issued by the State of Oregon (and its political subdivisions, agencies, authorities and instrumentalities).
Portfolio management
Paul Fox, CFA
Lead Portfolio Manager
Managed Fund since 2016
Douglas Rangel, CFA
Portfolio Manager
Managed Fund since 2022
Average annual total returns (%) (for the period ended January 31, 2024) |
| | | | | | |
| | | | | | |
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| | | | | | |
| | | | | | |
| | | | | |
| | | | | |
| | | | | |
Bloomberg 3-15 Year Blend Municipal Bond Index | | | | | |
Returns for Class A shares are shown with and without the maximum initial sales charge of 3.00%. Returns for Class C shares are shown with and without the 1.00% contingent deferred sales charge for the first year only. The Fund’s other share classes are not subject to sales charges and have limited eligibility. Please see the Fund’s prospectus for details. Performance for different share classes will vary based on differences in sales charges and fees associated with each share class. All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by Columbia Management Investment Advisers, LLC and/or any of its affiliates. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.
The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by contacting your financial intermediary, visiting columbiathreadneedleus.com/investor/ or calling 800.345.6611.
*
The returns shown for periods prior to the share class inception date (including returns for the Life of the Fund, if shown, which are since Fund inception) include the returns of the Fund’s oldest share class. These returns are adjusted to reflect any higher class-related operating expenses of the newer share classes, as applicable. Please visit columbiathreadneedleus.com/investor/investment-products /mutual-funds/appended-performance for more information.
The Bloomberg 3–15 Year Blend Municipal Bond Index is an unmanaged index that tracks the performance of municipal bonds issued after December 31, 1990, with remaining maturities between 2 and 17 years and at least $7 million in principal amount outstanding.
Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
3
Fund at a Glance (continued)(Unaudited)
Quality breakdown (%) (at January 31, 2024) |
| |
| |
| |
| |
| |
| |
| |
Percentages indicated are based upon total fixed income investments.
Bond ratings apply to the underlying holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
4
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Understanding Your Fund’s Expenses(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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
August 1, 2023 — January 31, 2024 |
| Account value at the
beginning of the
period ($) | Account value at the
end of the
period ($) | Expenses paid during
the period ($) | Fund’s annualized
expense ratio (%) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
5
Portfolio of InvestmentsJanuary 31, 2024 (Unaudited)(Percentages represent value of investments compared to net assets)
Investments in securities
|
| | | | |
|
|
|
Portland International Airport |
|
| | | | |
| | | | |
| | | | |
|
|
Portland International Airport |
|
| | | | |
Port of Portland Airport(a) |
|
Portland International Airport |
|
| | | | |
| | | | |
|
| | | | |
| |
|
Oregon State Facilities Authority(b) |
|
Redmond Proficiency Academy Project |
|
| | | | |
| | | | |
| |
|
|
|
Campus Improvement Pacific University Project |
|
| | | | |
| | | | |
Oak Tree Foundation Project |
|
| | | | |
|
|
| | | | |
|
|
George Fox University Project |
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Oregon State Facilities Authority |
|
|
|
| | | | |
| | | | |
| |
|
Klamath Falls Intercommunity Hospital Authority |
|
Sky Lakes Medical Center Project |
|
| | | | |
| | | | |
| | | | |
| | | | |
Medford Hospital Facilities Authority |
|
|
|
| | | | |
| | | | |
| | | | |
Oregon Health & Science University |
|
|
| | | | |
|
| | | | |
Series 2021B-2 (Mandatory Put 02/01/32) |
| | | | |
|
|
|
| | | | |
Oregon State Facilities Authority |
|
|
|
| | | | |
| | | | |
|
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
6
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Salem Hospital Facility Authority |
|
|
|
| | | | |
| | | | |
| | | | |
| | | | |
|
| | | | |
| |
Local General Obligation 29.1% |
Benton & Linn Counties Consolidated School District No. 509J & 509A Corvallis(c) |
Unlimited General Obligation Bonds |
|
| | | | |
Blue Mountain Community College District |
Unlimited General Obligation Bonds |
|
| | | | |
Boardman Park & Recreation District |
Unlimited General Obligation Bonds |
|
| | | | |
Central Oregon Community College |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
Chemeketa Community College District |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
|
| | | | |
|
Unlimited General Obligation Refunding Bonds |
|
| | | | |
| | | | |
|
Limited General Obligation Bonds |
Limited Tax Sellwood Bridge Project |
|
| | | | |
Unlimited General Obligation Refunding Bonds |
Public Safety Projects and Emergency Facilities |
|
| | | | |
Municipal Bonds (continued) |
| | | | |
|
Limited General Obligation Bonds |
|
| | | | |
|
Unlimited General Obligation Bonds |
|
| | | | |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
|
Limited General Obligation Refunding Bonds |
|
| | | | |
Clackamas & Washington Counties School District No. 3 |
Unlimited General Obligation Bonds |
|
| | | | |
| | | | |
Clackamas Community College District(c) |
Unlimited General Obligation Bonds |
Convertible Deferred Interest |
|
| | | | |
Clackamas County School District No. 108 Estacada |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
Clackamas County School District No. 12 North Clackamas |
Unlimited General Obligation Bonds |
|
| | | | |
Clatsop County School District No. 1-C |
Unlimited General Obligation Bonds |
|
| | | | |
Clatsop County School District No. 30 Warrenton-Hammond(d) |
Unlimited General Obligation Bonds |
|
|
| | | | |
Columbia County School District No. 502(d) |
Unlimited General Obligation Bonds |
|
|
| | | | |
Coos County School District No. 9 Coos Bay |
Unlimited General Obligation Bonds |
|
| | | | |
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
7
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Deschutes & Jefferson Counties School District No. 2J Redmond |
Unlimited General Obligation Bonds |
|
| | | | |
Deschutes County School District No. 6 Sisters |
Unlimited General Obligation Bonds |
|
| | | | |
Hillsboro School District No. 1J |
Unlimited General Obligation Bonds |
Washington, Yamhill and Multnomah Counties |
|
| | | | |
|
| | | | |
| | | | |
Jackson County School District No. 4(d) |
Unlimited General Obligation Bonds |
|
| | | | |
Jackson County School District No. 5 Ashland |
Unlimited General Obligation Bonds |
|
| | | | |
Jackson County School District No. 6 Central Point |
Unlimited General Obligation Bonds |
|
| | | | |
|
Unlimited General Obligation Bonds |
|
| | | | |
| | | | |
Lane County School District No. 1 Pleasant Hill(d) |
Unlimited General Obligation Bonds |
|
| | | | |
Lane County School District No. 19 Springfield(d) |
Unlimited General Obligation Bonds |
|
| | | | |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
| | | | |
Lane County School District No. 52 Bethel |
Unlimited General Obligation Bonds |
|
| | | | |
Municipal Bonds (continued) |
| | | | |
Linn & Benton Counties School District No. 8J Greater Albany |
Unlimited General Obligation Bonds |
|
| | | | |
Marion County School District No. 15 North Marion |
Unlimited General Obligation Bonds |
|
| | | | |
| | | | |
Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow(d) |
Unlimited General Obligation Bonds |
|
| | | | |
Multnomah & Clackamas Counties School District No. 10JT Gresham-Barlow |
Unlimited General Obligation Bonds |
|
| | | | |
Multnomah County School District No. 7 Reynolds(d) |
Unlimited General Obligation Bonds |
|
|
| | | | |
Polk Marion & Benton Counties School District No. 13J Central |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
| | | | |
Portland Community College District |
Unlimited General Obligation Bonds |
|
| | | | |
|
| | | | |
Unlimited General Obligation Refunding Bonds |
|
| | | | |
Salem-Keizer School District No. 24J |
Unlimited General Obligation Bonds |
|
| | | | |
|
| | | | |
| | | | |
Washington Clackamas & Yamhill Counties School District No. 88J(d) |
Unlimited General Obligation Bonds |
|
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
8
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Washington Clackamas & Yamhill Counties School District No. 88J |
Unlimited General Obligation Bonds |
|
|
| | | | |
| |
|
Oregon State Facilities Authority(b) |
|
College Housing Northwest Project |
|
| | | | |
| | | | |
State of Oregon Housing & Community Services Department(c) |
|
Plaza Los Amigos Apartments Project |
Series 2022 (Mandatory Put 02/01/25) |
| | | | |
| |
|
Central Lincoln People’s Utility District JATC, Inc. |
|
|
| | | | |
| | | | |
| | | | |
| | | | |
City of Eugene Electric Utility System |
|
|
| | | | |
| | | | |
| | | | |
| | | | |
Northern Wasco County Peoples Utility District |
|
|
| | | | |
| | | | |
| |
|
Warm Springs Reservation Confederated Tribe(b),(e) |
|
Green Bonds - Pelton-Round Butte Project |
|
| | | | |
Municipal Bonds (continued) |
| | | | |
|
|
|
|
| | | | |
| | | | |
| |
|
|
Limited General Obligation Refunding Bonds |
Subordinated Series 2021D |
| | | | |
| | | | |
| |
Refunded / Escrowed 10.1% |
Clackamas County School District No. 12 North Clackamas |
Prerefunded 06/15/24 Unlimited General Obligation Bonds |
|
| | | | |
Hospital Facilities Authority of Multnomah County |
Prerefunded 10/01/24 Revenue Bonds |
Mirabella at South Waterfront |
|
| | | | |
Klamath Falls City Schools |
Prerefunded 06/15/25 Unlimited General Obligation Bonds |
|
| | | | |
Lane County School District No. 19 Springfield |
Prerefunded 06/15/25 Unlimited General Obligation Bonds |
|
| | | | |
Oregon State Facilities Authority |
Prerefunded 07/01/27 Revenue Bonds |
|
|
| | | | |
Puerto Rico Public Finance Corp.(e) |
|
Commonwealth Appropriation |
Series 2002E Escrowed to Maturity |
| | | | |
|
Prerefunded 08/01/25 Unlimited General Obligation Bonds |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
9
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Tri-County Metropolitan Transportation District of Oregon |
Prerefunded 09/01/26 Revenue Bonds |
|
|
| | | | |
| | | | |
|
|
| | | | |
Prerefunded 09/01/27 Revenue Bonds |
|
| | | | |
| | | | |
Umatilla County School District No. 16R Pendleton |
Prerefunded 06/15/24 Unlimited General Obligation Bonds |
|
| | | | |
| | | | |
Union County School District No. 1 La Grande |
Prerefunded 06/15/25 Unlimited General Obligation Bonds |
|
| | | | |
Washington & Multnomah Counties School District No. 48J Beaverton |
Prerefunded 06/15/24 Unlimited General Obligation Bonds |
|
| | | | |
| |
Retirement Communities 1.0% |
Clackamas County Hospital Facility Authority |
|
Mary’s Woods at Marylhurst, Inc. |
|
| | | | |
Hospital Facilities Authority of Multnomah County |
|
|
|
| | | | |
| | | | |
Salem Hospital Facility Authority |
|
|
|
| | | | |
|
|
|
| | | | |
| | | | |
| |
Municipal Bonds (continued) |
| | | | |
|
State of Oregon Housing & Community Services Department |
|
|
| | | | |
|
| | | | |
| | | | |
|
| | | | |
Single-Family Mortgage Program |
|
| | | | |
| | | | |
| | | | |
| |
Special Non Property Tax 13.0% |
|
|
|
|
| | | | |
| | | | |
| | | | |
|
|
|
| | | | |
|
| | | | |
| | | | |
|
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
State of Oregon Department of Transportation |
|
|
|
| | | | |
|
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
10
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
Subordinated Series 2019A |
| | | | |
| | | | |
|
|
| | | | |
Subordinated Series 2020A |
| | | | |
Subordinated Series 2023A |
| | | | |
Tri-County Metropolitan Transportation District |
|
|
| | | | |
Tri-County Metropolitan Transportation District of Oregon |
|
|
| | | | |
| | | | |
| |
State General Obligation 7.2% |
|
Limited General Obligation Bonds |
Article XI-Q State Projects |
|
| | | | |
Limited General Obligation Refunding Bonds |
|
|
| | | | |
| | | | |
Unlimited General Obligation Bonds |
Article XI - Q State Projects |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
|
| | | | |
Unlimited General Obligation Notes |
|
|
| | | | |
Municipal Bonds (continued) |
| | | | |
|
| | | | |
| | | | |
| |
|
Tri-County Metropolitan Transportation District of Oregon |
|
|
| | | | |
| | | | |
|
|
| | | | |
| |
|
|
|
|
| | | | |
|
|
|
| | | | |
City of Eugene Water Utility System |
|
|
|
| | | | |
|
|
| | | | |
| | | | |
City of Portland Sewer System |
|
|
Subordinated Series 2023A |
| | | | |
| | | | |
City of Portland Water System |
|
|
|
| | | | |
|
|
Subordinated Series 2019A |
| | | | |
|
| | | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
11
Portfolio of Investments (continued)January 31, 2024 (Unaudited) Municipal Bonds (continued) |
| | | | |
City of Springfield Sewer System |
|
|
| | | | |
| | | | |
| | | | |
|
|
|
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Tualatin Valley Water District |
|
|
| | | | |
| |
Total Municipal Bonds
(Cost $306,956,600) | |
|
| | |
BlackRock Liquidity Funds MuniCash, Institutional Shares, | | |
Total Money Market Funds
(Cost $365,178) | |
Total Investments in Securities
(Cost: $307,321,778) | |
Other Assets & Liabilities, Net | | |
| |
Notes to Portfolio of Investments
| Income from this security may be subject to alternative minimum tax. |
| 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 January 31, 2024, the total value of these securities amounted to $2,513,388, which represents 0.83% of total net assets. |
| 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 January 31, 2024. |
| |
| Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At January 31, 2024, the total value of these securities amounted to $6,034,700, which represents 1.98% of total net assets. |
| The rate shown is the seven-day current annualized yield at January 31, 2024. |
Abbreviation Legend
| Assured Guaranty Municipal Corporation |
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.
12
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Portfolio of Investments (continued)January 31, 2024 (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.
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 January 31, 2024:
| | | | |
Investments in Securities | | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
13
Statement of Assets and LiabilitiesJanuary 31, 2024 (Unaudited)
| |
Investments in securities, at value | |
Unaffiliated issuers (cost $307,321,778) | |
| |
| |
| |
| |
| |
Expense reimbursement due from Investment Manager | |
| |
Deferred compensation of board members | |
| |
| |
| |
| |
| |
| |
Distributions to shareholders | |
| |
Distribution and/or service fees | |
| |
Compensation of chief compliance officer | |
Compensation of board members | |
| |
Deferred compensation of board members | |
| |
Net assets applicable to outstanding capital stock | |
| |
| |
Total distributable earnings (loss) | |
Total - representing net assets applicable to outstanding capital stock | |
The accompanying Notes to Financial Statements are an integral part of this statement.
14
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Statement of Assets and Liabilities (continued)January 31, 2024 (Unaudited) | |
| |
| |
Net asset value per share | |
| |
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) | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
| |
| |
| |
Net asset value per share | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
15
Statement of OperationsSix Months Ended January 31, 2024 (Unaudited)
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Dividends — unaffiliated issuers | |
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Distribution and/or service fees | |
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Printing and postage fees | |
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Compensation of chief compliance officer | |
Compensation of board members | |
Deferred compensation of board members | |
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Fees waived or expenses reimbursed by Investment Manager and its affiliates | |
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Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | |
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Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | |
Net change in unrealized appreciation (depreciation) | |
Net realized and unrealized gain | |
Net increase in net assets resulting from operations | |
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Statement of Changes in Net Assets
| Six Months Ended
January 31, 2024
(Unaudited) | |
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Net change in unrealized appreciation (depreciation) | | |
Net increase in net assets resulting from operations | | |
Distributions to shareholders | | |
Net investment income and net realized gains | | |
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Total distributions to shareholders | | |
Decrease in net assets from capital stock activity | | |
Total increase (decrease) in net assets | | |
Net assets at beginning of period | | |
Net assets at end of period | | |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
17
Statement of Changes in Net Assets (continued)
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The accompanying Notes to Financial Statements are an integral part of this statement.
18
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
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Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
19
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
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
20
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
21
Financial Highlights (continued)
| Net asset value,
beginning of
period | | Net
realized
and
unrealized
gain (loss) | Total from
investment
operations | Distributions
from net
investment
income | Distributions
from net
realized
gains | Total
distributions to
shareholders |
|
Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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Notes to Financial Highlights |
| 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. |
| Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| The benefits derived from expense reductions had an impact of less than 0.01%. |
| Ratios include interfund lending expense which is less than 0.01%. |
| 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: |
The accompanying Notes to Financial Statements are an integral part of this statement.
22
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Financial Highlights (continued)
| Net
asset
value,
end of
period | | Total gross
expense
ratio to
average
| Total net
expense
ratio to
average
| Net investment
income
ratio to
average
net assets | | Net
assets,
end of
period
(000’s) |
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Six Months Ended 1/31/2024 (Unaudited) | | | | | | | |
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The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
23
Notes to Financial StatementsJanuary 31, 2024 (Unaudited) Note 1. Organization
Columbia Oregon Intermediate Municipal 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 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.
The Fund’s Board of Trustees approved a proposal to accelerate the conversion of Class C shares into Class A shares of the Fund. Effective on February 12, 2024, Class C shares of the Fund were closed to new and existing investors and effective on April 15, 2024, shares held by Class C shareholders will be converted into Class A shares in a tax-free transaction.
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.
24
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
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 net tax-exempt and 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.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
25
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Recent accounting pronouncements and regulatory updates
Tailored Shareholder Reports
In October 2022, the Securities and Exchange Commission adopted a final rule, "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 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2024 was 0.47% 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 "Deferred compensation of board members" 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.
26
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) 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.
For the six months ended January 31, 2024, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
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 January 31, 2024, these minimum account balance fees reduced total expenses of the Fund by $260.
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% and 0.45% of the average daily net assets attributable to Class A and Class C 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.
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 January 31, 2024, if any, are listed below:
| This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| 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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
27
Notes to Financial Statements (continued)January 31, 2024 (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:
| December 1, 2023
through
November 30, 2024 | |
| | |
| | |
| | |
| | |
| | |
| | |
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. 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 January 31, 2024, 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:
| Gross unrealized
appreciation ($) | Gross unrealized
(depreciation) ($) | Net unrealized
(depreciation) ($) |
| | | |
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 July 31, 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 ($) | No expiration
long-term ($) | |
| | |
28
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (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 $17,617,685 and $10,525,312, respectively, for the six months ended January 31, 2024. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. 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 did not borrow or lend money under the Interfund Program during the six months ended January 31, 2024.
Note 7. 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 January 31, 2024.
Note 8. 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.
Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
29
Notes to Financial Statements (continued)January 31, 2024 (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.
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.
Municipal securities risk
Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is directly correlated to the Fund’s investment exposures.
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Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
Notes to Financial Statements (continued)January 31, 2024 (Unaudited) Because the Fund invests substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory, demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At January 31, 2024, one unaffiliated shareholder of record owned 20.8% 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.
Note 9. 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 10. 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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2024
31
Columbia Oregon Intermediate Municipal Bond Fund
P.O. Box 219104
Kansas City, MO 64121-9104
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.
Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2024 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
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. |
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.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(registrant) | Columbia Funds Series Trust I |
| |
By (Signature and Title) | /s/ Daniel J. Beckman |
| Daniel J. Beckman, President and Principal Executive Officer |
| |
Date | March 22, 2024 |
| |
| |
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 | March 22, 2024 |
By (Signature and Title) | /s/ Michael G. Clarke |
| Michael G. Clarke, Chief Financial Officer, Treasurer, |
| Chief Accounting Officer, Principal Financial Officer and Senior Vice President |
| |
Date | March 22, 2024 |
