N-Q 1 a16-19875_1nq.htm N-Q

 

 

 

OMB APPROVAL

 

 

OMB Number:

3235-0578

 

 

Expires:

March 31, 2019

 

UNITED STATES

Estimated average burden hours per response . . . . . . . . . . 10.5

 

SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-01829

 

Columbia Acorn Trust

(Exact name of registrant as specified in charter)

 

227 W. Monroe Street, Suite 3000, Chicago, IL

 

60606

(Address of principal executive offices)

 

(Zip code)

 

Mary C. Moynihan

Perkins Coie LLP

700 13th Street, NW

Suite 600

Washington, DC 20005

 

Paul B. Goucher, Esq.

Columbia Management Investment Advisers, LLC

100 Park Avenue

New York, New York 10017

 

P. Zachary Egan

Columbia Acorn Trust

227 West Monroe Street, Suite 3000

Chicago, Illinois 60606

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

312-634-9200

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

September 30, 2016

 

 



 

Item 1. Schedule of Investments.

 



 

Columbia Acorn Fund

Statement of Investments (Unaudited), September 30, 2016

 

Number of Shares

 

 

 

Value

 

 

 

 

 

Equities: 98.0%

 

Health Care 19.1%

 

 

 

 

 

> Health Care Equipment & Supplies 7.2%

 

 

 

1,429,073

 

Align Technology (a)
Invisalign System to Correct Malocclusion (Crooked Teeth)

 

$

133,975,594

 

996,818

 

ResMed
Medical Devices for Sleep Apnea Treatment

 

64,583,838

 

870,978

 

LivaNova (a)
Neuromodulation & Cardiac Devices

 

52,354,488

 

388,000

 

Varian Medical Systems (a)
Radiation Therapy Systems, Software & Services to Treat Cancer

 

38,617,640

 

516,239

 

West Pharmaceutical Services
Components & Systems for Injectable Drug Delivery

 

38,459,805

 

597,902

 

Dentsply Sirona
Dental Supplies Manufacturer

 

35,533,316

 

218,709

 

IDEXX Laboratories (a)
Diagnostic Equipment & Services for Veterinarians

 

24,655,065

 

 

 

 

 

388,179,746

 

 

 

> Life Sciences Tools & Services 5.2%

 

 

 

814,750

 

Quintiles Transnational Holdings (a)
Contract Research Organization

 

66,043,635

 

1,833,801

 

VWR (a)
Distributor of Lab Supplies

 

52,006,596

 

859,624

 

PRA Health Sciences (a)
Contract Research Organization

 

48,577,352

 

415,992

 

Bio-Techne
Maker of Consumables & Systems for the Life Science Market

 

45,551,124

 

79,588

 

Mettler-Toledo International (a)
Laboratory Equipment

 

33,413,430

 

684,850

 

Agilent Technologies
Provider of Systems, Consumables & Services for Life Science Labs

 

32,249,587

 

 

 

 

 

277,841,724

 

 

 

> Health Care Providers & Services 3.1%

 

 

 

2,101,278

 

HealthSouth
Inpatient Rehabilitation Facilities & Home Health Care

 

85,248,848

 

683,733

 

Centene (a)
Managed Care Organization

 

45,782,762

 

510,065

 

Mednax (a)
Physician Management for Pediatric & Anesthesia Practices

 

33,791,806

 

 

 

 

 

164,823,416

 

 

 

> Biotechnology 2.7%

 

 

 

667,993

 

Ultragenyx Pharmaceutical (a)
Biotech Focused on “Ultra-Orphan” Drugs

 

47,387,423

 

491,749

 

Seattle Genetics (a)
Antibody-based Therapies for Cancer

 

26,559,364

 

154,332

 

Intercept Pharmaceuticals (a) (b)
Biotech Developing Drugs for Several Diseases

 

25,401,504

 

445,705

 

Agios Pharmaceuticals (a) (b)
Biotech Focused on Cancer & Orphan Diseases

 

23,542,138

 

2,831,995

 

Celldex Therapeutics (a) (b)
Biotech Developing Drugs for Cancer

 

11,441,260

 

313,252

 

Genomic Health (a)
Cancer Diagnostics

 

9,059,248

 

 

 

 

 

143,390,937

 

 

 

> Health Care Technology 0.6%

 

 

 

583,521

 

Medidata Solutions (a)
Cloud-based Software for Drug Studies

 

32,537,131

 

 

 

 

 

 

 

 

 

> Pharmaceuticals 0.3%

 

 

 

719,638

 

Akorn (a)
Developer, Manufacturer & Distributor of Specialty Generic Drugs

 

19,617,332

 

Health Care: Total

 

1,026,390,286

 

 

 

 

 

 

 

Industrials 18.3%

 

 

 

 

 

> Machinery 4.8%

 

 

 

1,459,456

 

Toro
Turf Maintenance Equipment

 

68,360,919

 

729,975

 

Oshkosh Corporation
Specialty Truck Manufacturer

 

40,878,600

 

229,954

 

Snap-On
Tools

 

34,943,810

 

309,547

 

Nordson
Dispensing Systems for Adhesives & Coatings

 

30,840,168

 

403,577

 

Graco
Manufacturer of Dispensing Equipment

 

29,864,698

 

246,794

 

WABCO Holdings (a)
Truck & Bus Component Supplier

 

28,018,523

 

217,946

 

Middleby (a)
Manufacturer of Cooking Equipment

 

26,942,484

 

 

 

 

 

259,849,202

 

 

 

> Professional Services 2.9%

 

 

 

1,305,792

 

Robert Half International
Temporary & Permanent Staffing in Finance, Accounting & Other Professions

 

49,437,285

 

798,026

 

WageWorks (a)
Healthcare Consumer Directed Benefits & Commuter Account Management

 

48,607,764

 

1,822,232

 

Navigant Consulting (a)
Financial Consulting Firm

 

36,845,531

 

 

1



 

Number of Shares

 

 

 

Value

 

 

 

> Professional Services—continued

 

 

 

295,064

 

Manpower
Global Temporary Staffing Provider

 

$

21,321,324

 

 

 

 

 

156,211,904

 

 

 

> Road & Rail 2.2%

 

 

 

202,212

 

Amerco
North American Moving & Storage King

 

65,563,197

 

480,471

 

Old Dominion Freight Lines (a)
LTL Trucker

 

32,965,115

 

274,029

 

JB Hunt Transport Services
Truck & Intermodal Carrier

 

22,234,713

 

 

 

 

 

120,763,025

 

 

 

> Electrical Equipment 1.8%

 

 

 

253,877

 

Acuity Brands
Commercial Lighting Fixtures

 

67,175,854

 

890,312

 

Generac (a)
Standby Power Generators

 

32,318,326

 

 

 

 

 

99,494,180

 

 

 

> Aerospace & Defense 1.8%

 

 

 

936,847

 

HEICO
FAA-Approved Aircraft Replacement Parts

 

56,688,612

 

780,337

 

B/E Aerospace
Producer of Aircraft Interior Components

 

40,312,209

 

 

 

 

 

97,000,821

 

 

 

> Air Freight & Logistics 1.7%

 

 

 

1,741,234

 

Expeditors International of Washington
International Freight Forwarder

 

89,708,376

 

 

 

 

 

 

 

 

 

> Commercial Services & Supplies 1.7%

 

 

 

306,291

 

Cintas
Provider of Rental Uniforms & Floor Mats

 

34,488,367

 

220,648

 

UniFirst
Uniform Rental

 

29,094,645

 

887,660

 

Rollins
Pest Control & Wildlife Removal Services

 

25,990,685

 

 

 

 

 

89,573,697

 

 

 

> Trading Companies & Distributors 0.7%

 

 

 

258,581

 

Watsco
HVAC Distribution

 

36,434,063

 

 

 

 

 

 

 

 

 

> Industrial Conglomerates 0.7%

 

 

 

347,666

 

Carlisle Companies
 industrial Conglomerate

 

35,660,101

 

Industrials: Total

 

984,695,369

 

 

 

 

 

 

 

Consumer Discretionary 16.8%

 

 

 

 

 

> Hotels, Restaurants & Leisure 4.8%

 

 

 

449,288

 

Vail Resorts
Ski Resort Operator & Developer

 

70,484,301

 

694,647

 

Papa John’s International
Franchisor of Pizza Restaurants

 

54,772,916

 

672,348

 

Dunkin Brands
Franchisor of Quick Service Restaurants

 

35,015,884

 

190,656

 

Domino’s Pizza
Franchisor of Pizza Restaurants

 

28,951,113

 

503,240

 

Popeyes Louisiana Kitchen (a)
Popeyes Restaurants

 

26,742,174

 

570,826

 

Texas Roadhouse
Rural-focused Full Service Steakhouse

 

22,279,339

 

445,188

 

Choice Hotels
Franchisor of Budget Hotel Brands

 

20,069,075

 

 

 

 

 

258,314,802

 

 

 

> Auto Components 3.7%

 

 

 

1,238,085

 

Tenneco (a)
Auto Parts for Emission Control, Suspension

 

72,143,213

 

545,786

 

Drew Industries
RV & Manufactured Home Components

 

53,497,944

 

2,279,802

 

Gentex
Manufacturer of Auto Parts

 

40,033,306

 

312,658

 

Cooper-Standard Holdings (a)
Auto Supplier: Sealing, Fuel/Brake Delivery, Fluid Transfer, Anti-Vibrate Systems

 

30,890,610

 

 

 

 

 

196,565,073

 

 

 

> Specialty Retail 2.5%

 

 

 

959,069

 

Williams-Sonoma
Home Goods & Furnishing Retailer

 

48,989,245

 

537,680

 

Monro Muffler Brake
Automotive Services

 

32,889,886

 

132,128

 

Ulta Salon Cosmetics & Fragrance (a)
Specialty Beauty Product Retailer

 

31,443,821

 

496,991

 

Five Below (a)
Low-price Specialty Retailer Targeting Pre-Teens, Teens & Parents

 

20,023,767

 

 

 

 

 

133,346,719

 

 

 

> Household Durables 2.0%

 

 

 

1,003,971

 

iRobot (a)
Home Robots (Vacuums, Pool Cleaners) & Battlefield Reconnaissance Robots

 

44,154,644

 

22,610

 

NVR (a)
Homebuilder

 

37,077,461

 

283,853

 

Cavco Industries (a)
Manufactured Homes

 

28,115,640

 

 

 

 

 

109,347,745

 

 

 

> Distributors 1.0%

 

 

 

1,540,633

 

LKQ (a)
Alternative Auto Parts Distribution

 

54,630,846

 

 

2



 

Number of Shares

 

 

 

Value

 

 

 

> Textiles, Apparel & Luxury Goods 0.7%

 

 

 

1,423,717

 

Hanesbrands
Apparel Wholesaler

 

$

35,948,854

 

 

 

 

 

 

 

 

 

> Media 0.6%

 

 

 

3,645,055

 

Global Eagle Entertainment (a)
Provider of Entertainment & Wi-Fi on Airplanes

 

30,290,407

 

 

 

 

 

 

 

 

 

> Diversified Consumer Services 0.5%

 

 

 

433,256

 

Bright Horizons Family Solutions (a)
Child Care/Preschool Services

 

28,980,494

 

 

 

 

 

 

 

 

 

> Internet & Direct Marketing Retail 0.5%

 

 

 

1,222,084

 

Liberty TripAdvisor Holdings Class A (a)
Holding Company for Trip Advisor

 

26,702,535

 

 

 

 

 

 

 

 

 

> Leisure Products 0.5%

 

 

 

340,834

 

Polaris Industries (b)
Leisure Vehicles & Related Products

 

26,394,185

 

Consumer Discretionary: Total

 

900,521,660

 

 

 

 

 

 

 

Financials 14.6%

 

 

 

 

 

> Capital Markets 8.5%

 

 

 

2,190,555

 

Lazard
Corporate Advisory & Asset Management

 

79,648,580

 

1,256,877

 

Raymond James Financial
Full Service Wealth Management

 

73,162,810

 

1,377,791

 

Eaton Vance
Specialty Mutual Funds

 

53,802,739

 

370,140

 

Affiliated Managers Group (a)
Asset Manager Holding Company

 

53,559,258

 

727,504

 

CBOE Holdings
Marketplace for Trading Options & Futures

 

47,178,634

 

812,757

 

SEI Investments
Mutual Fund Administration & Investment Management

 

37,069,847

 

906,841

 

Interactive Brokers Group
Electronic Brokerage & Market Maker

 

31,984,282

 

182,734

 

Factset Research Systems
Securities Data Purveyor

 

29,621,181

 

168,189

 

MarketAxess
Bond Exchange

 

27,850,416

 

1,550,308

 

Ares Capital
Business Development Company

 

24,029,774

 

 

 

 

 

457,907,521

 

 

 

> Banks 4.3%

 

 

 

2,306,085

 

Associated Banc-Corp
Midwest Bank

 

45,176,205

 

629,191

 

BOK Financial (b)
Tulsa-based Southwest Bank

 

43,395,303

 

330,175

 

Signature Bank (a)
New York City Metro Area Bank

 

39,109,229

 

1,000,350

 

MB Financial
Chicago Bank

 

38,053,314

 

326,109

 

SVB Financial Group (a)
Bank to Venture Capitalists

 

36,048,089

 

352,000

 

First Republic Bank
San Francisco Bank to Affluent

 

27,142,720

 

 

 

 

 

228,924,860

 

 

 

> Insurance 1.8%

 

 

 

861,371

 

Allied World Assurance Company Holdings
Commercial Lines Insurance/Reinsurance

 

34,816,616

 

2,247,607

 

CNO Financial Group
Life, Long-term Care & Medical Supplement Insurance

 

34,320,959

 

714,000

 

FNF Group
Title Insurance & Related Services

 

26,353,740

 

 

 

 

 

95,491,315

 

Financials: Total

 

782,323,696

 

 

 

 

 

 

 

Information Technology 14.4%

 

 

 

 

 

> IT Services 5.2%

 

 

 

1,003,819

 

Vantiv (a)
Credit Card Processor

 

56,484,895

 

571,026

 

Broadridge Financial Solutions
Proxy & Mutual Fund Interim Processing & Distribution & Trade Processing

 

38,709,852

 

761,871

 

ExlService Holdings (a)
Business Process Outsourcing

 

37,971,651

 

1,176,611

 

Booz Allen Hamilton
IT Consulting for US Government

 

37,192,674

 

898,131

 

CoreLogic (a)
Data Processing Services for Real Estate, Insurance & Mortgages

 

35,224,698

 

333,189

 

Global Payments
Credit Card Processor

 

25,575,588

 

257,319

 

Gartner (a)
IT Research & Consulting Services

 

22,759,865

 

754,047

 

WNS - ADR (a)
Offshore Business Process Outsourcing Services

 

22,583,708

 

 

 

 

 

276,502,931

 

 

 

> Internet Software & Services 3.6%

 

 

 

707,725

 

SPS Commerce (a)
Supply Chain Management Software Delivered via the Web

 

51,954,092

 

1,265,181

 

GoDaddy (a)
Website Management for Small- & Medium-sized Companies

 

43,686,700

 

484,916

 

Verisign (a)
Internet Domain Registry for .COM/.NET

 

37,939,828

 

 

3



 

Number of Shares

 

 

 

Value

 

 

 

> Internet Software & Services—continued

 

 

 

2,539,629

 

Quotient Technology (a) (b)
Allows CPGs to Digitally Distribute Coupons, Advertising & Trade Promotion

 

$

33,802,462

 

952,838

 

NIC
Government Web Portal Development & Management Outsourcing

 

22,391,693

 

146,000

 

Nutanix (a)
Software Company Selling Hyper-converged Infrastructure Appliances

 

5,402,000

 

 

 

 

 

195,176,775

 

 

 

> Software 3.4%

 

 

 

557,422

 

Ansys (a)
Simulation Software for Engineers & Designers

 

51,622,851

 

651,125

 

Synopsys (a)
Software for Designing Semiconductor Chips

 

38,644,269

 

187,889

 

Ultimate Software (a)
Human Capital Management Systems

 

38,402,633

 

996,292

 

Cadence Design Systems (a)
Electronic Design Automation Software

 

25,435,335

 

371,927

 

Manhattan Associates (a)
Supply Chain Management Software & Services

 

21,430,434

 

242,086

 

Qualys (a)
Security Software Delivered Via the Cloud

 

9,245,264

 

 

 

 

 

184,780,786

 

 

 

> Electronic Equipment, Instruments & Components 1.4%

 

 

 

1,058,507

 

CDW
Value Added Reseller of IT Products & Services

 

48,405,525

 

296,310

 

IPG Photonics (a)
Fiber Lasers

 

24,401,128

 

 

 

 

 

72,806,653

 

 

 

> Semiconductors & Semiconductor Equipment 0.8%

 

 

 

600,967

 

MACOM Technology Solutions (a)
Radio Frequency, Microwave & Millimeterwave Semiconductors

 

25,444,943

 

239,074

 

Monolithic Power Systems
High Performance Analog & Mixed Signal Integrated Circuits

 

19,245,457

 

 

 

 

 

44,690,400

 

Information Technology: Total

 

773,957,545

 

 

 

 

 

 

 

Real Estate 5.3%

 

 

 

 

 

> Equity Real Estate Investment Trusts (REITs) 3.9%

 

 

 

2,328,914

 

EdR
Student Housing

 

100,469,350

 

248,023

 

Federal Realty
Shopping Centers & Mixed Use Projects

 

38,178,181

 

400,490

 

Equity LifeStyle Properties
Manufactured Home & RV Communities

 

30,909,818

 

342,456

 

Lamar Advertising
Outdoor Advertising

 

22,365,801

 

254,951

 

Extra Space Storage
Self Storage Facilities

 

20,245,659

 

 

 

 

 

212,168,809

 

 

 

> Real Estate Management & Development 1.4%

 

 

 

657,358

 

Jones Lang LaSalle
Real Estate Services

 

74,800,767

 

Total Real Estate: Total

 

286,969,576

 

 

 

 

 

 

 

Energy 4.0%

 

 

 

 

 

> Oil, Gas & Consumable Fuels 2.3%

 

 

 

345,862

 

Cimarex Energy
Oil & Gas Producer in Texas, New Mexico & Oklahoma

 

46,473,477

 

479,034

 

Diamondback Energy (a)
Oil & Gas Producer in Texas

 

46,245,942

 

696,004

 

Carrizo Oil & Gas (a)
Oil & Gas Producer

 

28,271,683

 

 

 

 

 

120,991,102

 

 

 

> Energy Equipment & Services 1.7%

 

 

 

1,460,416

 

ShawCor (Canada)
Oil & Gas Pipeline Products

 

36,033,131

 

2,111,716

 

RPC (a) (b)
North American Onshore Oil Service

 

35,476,829

 

660,669

 

Oil States International (a)
Oilfield Service Provider

 

20,857,320

 

 

 

 

 

92,367,280

 

Energy: Total

 

213,358,382

 

 

 

 

 

 

 

Consumer Staples 2.0%

 

 

 

 

 

> Household Products 1.5%

 

 

 

358,125

 

Spectrum Brands Holdings
Household Product Brands

 

49,310,231

 

294,074

 

WD-40
Manufacturer of Industrial Lubrications

 

33,062,740

 

 

 

 

 

82,372,971

 

 

 

> Food & Staples Retailing 0.5%

 

 

 

1,185,078

 

US Foods (a)
U.S. Food Distributor

 

27,979,692

 

 

 

Consumer Staples: Total

 

110,352,663

 

 

4



 

Number of Shares

 

 

 

Value

 

Materials 1.9%

 

 

 

 

 

> Chemicals 1.9%

 

 

 

284,388

 

International Flavors & Fragrances
Flavors & Fragrances

 

$

40,658,952

 

554,505

 

Celanese
Commodity & Specialty Chemicals Provider

 

36,907,853

 

885,394

 

Axalta Coating Systems (a)
Global Manufacturer of High Performance Coatings

 

25,030,089

 

 

 

 

 

102,596,894

 

Materials: Total

 

102,596,894

 

 

 

 

 

 

 

Telecommunication Services 1.6%

 

 

 

 

 

> Diversified Telecommunication Services 1.1%

 

 

 

340,337

 

SBA Communications (a)
Communications Towers

 

38,172,198

 

768,051

 

Zayo Group (a)
Fiber Optic Data Communications

 

22,818,795

 

 

 

 

 

60,990,993

 

 

 

> Wireless Telecommunication Services 0.5%

 

 

 

2,639,127

 

Boingo Wireless (a) (c) Wi-Fi & Cellular Communications Networks

 

27,130,226

 

 

 

Telecommunication Services: Total

 

88,121,219

 

 

 

 

 

 

 

Total Equities: 98.0%
(Cost: $3,735,974,223)

 

5,269,287,290

(d)

 

 

 

 

 

 

Short-Term Investments 2.9%

 

 

 

155,789,267

 

JPMorgan U.S. Government Money Market Fund, IM Shares (7 day yield of 0.35%)

 

155,789,267

 

 

 

 

 

 

 

Total Short-Term Investments: 2.9%
(Cost: $155,789,267)

 

155,789,267

 

 

 

 

 

 

 

Securities Lending Collateral 2.4%

 

 

 

126,588,683

 

Dreyfus Government Cash Management Fund, Institutional Shares (7 day yield of 0.30%) (e)

 

126,588,683

 

 

 

 

 

Total Securities Lending Collateral: 2.4%
(Cost: $126,588,683)

 

126,588,683

 

 

 

 

 

Total Investments: 103.3%
(Cost: $4,018,352,173) (f)

 

5,551,665,240

(g)

 

 

 

 

Obligation to Return Collateral for Securities Loaned: (2.4)%

 

(126,588,683

)

 

 

 

 

Cash and Other Assets Less Liabilities: (0.9)%

 

(50,409,604

)

 

 

 

 

Net Assets: 100.0%

 

$

5,374,666,953

 

 

ADR                     American Depositary Receipts

 

5



 


> Notes to Statement of Investments

(a)                     Non-income producing security.

(b)                     All or a portion of this security was on loan at September 30, 2016. The total market value of securities on loan at September 30, 2016 was $125,881,333.

(c)                      An affiliated person of the Fund, as defined in the Investment Company Act of 1940, may include any company in which the Fund owns five percent or more of its outstanding voting shares. Holdings and transactions in these affiliated companies during the period ended September 30, 2016, are as follows:

 

Security

 

Balance of
Shares Held
12/31/15

 

Purchases/
Additions

 

Sales/
Reductions

 

Balance of
Shares Held
9/30/16

 

Value

 

Dividend

 

Quotient Technology (1)

 

4,634,954

 

1,782,619

 

3,877,944

 

2,539,629

 

$

33,802,462

 

$

 

Boingo Wireless

 

2,727,319

 

647,886

 

736,078

 

2,639,127

 

27,130,226

 

 

Bankrate (1)

 

7,126,562

 

 

7,126,562

 

 

 

 

Fiesta Restaurant Group (1)

 

1,453,484

 

516,572

 

1,970,056

 

 

 

 

Gaiam (1)

 

1,893,824

 

 

1,893,824

 

 

 

 

Hackett Group (1)

 

1,899,313

 

 

1,899,313

 

 

 

 

Kirkland Lake Gold (1)

 

5,119,843

 

 

5,119,843

 

 

 

 

ShaMaran Petroleum (1)

 

90,046,000

 

 

90,046,000

 

 

 

 

Vonage (1)

 

13,576,409

 

 

13,576,409

 

 

 

 

Total of Affiliated Transactions

 

128,477,708

 

2,947,077

 

126,246,029

 

5,178,756

 

$

60,932,688

 

$

 

 


(1) At September 30, 2016, the Fund owned less than five percent of the company’s outstanding voting shares.

 

The aggregate cost and value of these companies at September 30, 2016, was $22,148,435 and $27,130,226, respectively.  Investments in affiliated companies represented 0.50% of the Fund’s total net assets at September 30, 2016.

 

(d)                     On September 30, 2016, the market value of foreign securities represented 0.67% of total net assets. The Fund’s foreign portfolio was diversified as follows:

 

Country

 

Value

 

Percentage of
Net Assets

 

Canada

 

$

36,033,131

 

0.67

 

 

(e)                      Investment made with cash collateral received from securities lending activity.

(f)                       At September 30, 2016, for federal income tax purposes, the cost of investments was approximately $4,018,352,173 and net unrealized appreciation was $1,533,313,067 consisting of gross unrealized appreciation of $1,598,173,530 and gross unrealized depreciation of $64,860,463.

(g)                      Securities are valued using policies described in the Notes to Financial Statements in the shareholder report dated June 30, 2016.

 

Fair Value Measurements

 

Various inputs are used in determining the value of the Fund’s investments, following the input prioritization hierarchy established by accounting principles generally accepted in the United States of America (GAAP). These inputs are summarized in the three broad levels listed below:

 

·                  Level 1 – quoted prices in active markets for identical securities

 

·                  Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

 

·                  Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Examples of the types of securities in which the Fund would typically invest and how they are classified within this hierarchy are as follows. Typical Level 1 securities include exchange traded domestic equities, mutual funds whose NAVs are published each

 

6



 

day and exchange traded foreign equities that are not statistically fair valued. Typical Level 2 securities include exchange traded foreign equities that are statistically fair valued, forward foreign currency exchange contracts and short-term investments valued at amortized cost. Additionally, securities fair valued by CWAM’s Valuation Committee (the Committee) that rely on significant observable inputs are also included in Level 2. Typical Level 3 securities include any security fair valued by the Committee that relies on significant unobservable inputs.

 

The Committee is responsible for applying the Trust’s Portfolio Pricing Policy and the CWAM pricing procedures (the Policies), which are approved by and subject to the oversight of the Board.

 

The Committee meets as necessary, and no less frequently than quarterly, to determine fair values for securities for which market quotations are not readily available or for which CWAM believes that available market quotations are unreliable. The Committee also reviews the continuing appropriateness of the Policies. In circumstances where a security has been fair valued, the Committee will also review the continuing appropriateness of the current value of the security. The Policies address, among other things: circumstances under which market quotations will be deemed readily available; selection of third party pricing vendors; appropriate pricing methodologies; events that require fair valuation and fair value techniques; circumstances under which securities will be deemed to pose a potential for stale pricing, including when securities are illiquid, restricted, or in default; and certain delegations of authority to determine fair values to the Fund’s investment manager. The Committee may also meet to discuss additional valuation matters, which may include review of back-testing results, review of time-sensitive information or approval of other valuation related actions, and to review the appropriateness of the Policies.

 

For investments categorized as Level 3, the significant unobservable inputs used in the fair value measurement of the Fund’s securities may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. Significant changes in any of these factors could result in lower or higher fair value measurements. Various factors impact the frequency of monitoring (which may occur as often as daily), however the Committee may determine that changes to inputs, assumptions and models are not required with the same frequency.

 

The following table summarizes the inputs used, as of September 30, 2016, in valuing the Fund’s assets:

 

Investment Type

 

Quoted Prices
(Level 1)

 

Other Significant
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

 

Equities

 

 

 

 

 

 

 

 

 

Health Care

 

$

1,026,390,286

 

$

 

$

 

$

1,026,390,286

 

Industrials

 

984,695,369

 

 

 

984,695,369

 

Consumer Discretionary

 

900,521,660

 

 

 

900,521,660

 

Financials

 

782,323,696

 

 

 

782,323,696

 

Information Technology

 

773,957,545

 

 

 

773,957,545

 

Real Estate

 

286,969,576

 

 

 

286,969,576

 

Energy

 

213,358,382

 

 

 

213,358,382

 

Consumer Staples

 

110,352,663

 

 

 

110,352,663

 

Materials

 

102,596,894

 

 

 

102,596,894

 

Telecommunication Services

 

88,121,219

 

 

 

88,121,219

 

Total Equities

 

5,269,287,290

 

 

 

5,269,287,290

 

Total Short-Term Investments

 

155,789,267

 

 

 

155,789,267

 

Total Securities Lending Collateral

 

126,588,683

 

 

 

126,588,683

 

Total Investments

 

$

5,551,665,240

 

$

 

$

 

$

5,551,665,240

 

 

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

 

7



 

Columbia Acorn International

Statement of Investments (Unaudited), September 30, 2016

 

Number of Shares

 

 

 

Value

 

 

 

 

Equities: 96.7%

 

Europe 44.6%

 

 

 

 

 

> United Kingdom 12.9%

 

 

 

1,725,000

 

Rightmove
Internet Real Estate Listings

 

$

94,397,913

 

5,715,171

 

Halma
Health & Safety Sensor Technology

 

77,706,935

 

5,956,658

 

Abcam
Online Sales of Antibodies

 

64,854,037

 

4,852,498

 

Shaftesbury
London Prime Retail REIT

 

61,008,755

 

21,000,000

 

Rentokil Initial
Pest Control, Washroom & Workwear Service Provider

 

60,508,143

 

2,458,480

 

WH Smith
Newsprint, Books & General Stationery Retailer

 

49,009,253

 

1,055,758

 

Croda International
Oleo-chemicals & Industrial Chemicals

 

47,675,756

 

2,915,904

 

Smith & Nephew
Medical Equipment & Supplies

 

47,016,323

 

9,222,000

 

Domino’s Pizza UK & Ireland
Pizza Delivery in the UK, Ireland & Switzerland

 

44,644,790

 

638,583

 

Next
Clothes & Home Retailer in the UK

 

39,530,903

 

602,203

 

Spirax Sarco
Steam Systems & Pumps for Manufacturing & Process Industries

 

35,085,500

 

9,295,866

 

Ocado (a) (b)
Online Grocery Retailer

 

31,869,158

 

5,797,788

 

DS Smith
Packaging

 

28,879,374

 

5,960,358

 

Regus
Rental Office Space in Full-service Business Center

 

20,155,867

 

704,677

 

PureCircle (a)
Natural Sweeteners

 

2,520,892

 

 

 

 

 

704,863,599

 

 

 

> Sweden 6.2%

 

 

 

2,399,596

 

Hexagon
Design, Measurement & Visualization Software & Equipment

 

104,780,233

 

4,611,015

 

Trelleborg
Manufacturer of Sealing, Dampening & Protective Solutions for Industry

 

90,298,237

 

7,374,685

 

Unibet
European Online Gaming Operator

 

68,513,358

 

826,173

 

Millicom
Telecoms Operator in Latin America & Africa

 

42,855,293

 

1,312,822

 

Sweco
Engineering Consultants

 

27,055,874

 

243,961

 

Mekonomen (b)
Nordic Integrated Wholesaler/Retailer of Automotive Parts & Service

 

4,749,089

 

 

 

 

 

338,252,084

 

 

 

> Germany 5.8%

 

 

 

1,968,514

 

Wirecard (b)
Online Payment Processing & Risk Management

 

102,273,965

 

565,000

 

MTU Aero Engines
Airplane Engine Components & Services

 

57,154,051

 

636,639

 

Fielmann
Retail Optician Chain

 

51,885,440

 

1,010,000

 

Zalando (a)
Online Platform for Apparel Sales

 

42,149,754

 

853,000

 

Ströer (b)
Out of Home & Online Advertising

 

37,063,834

 

58,610

 

Rational
Commercial Ovens

 

29,364,420

 

 

 

 

 

319,891,464

 

 

 

> Switzerland 5.0%

 

 

 

204,500

 

Partners Group
Private Markets Asset Management

 

103,144,622

 

136,000

 

Geberit
Plumbing Systems

 

59,551,621

 

28,285

 

Givaudan
Fragrances & Flavors

 

57,559,902

 

301,310

 

Actelion
Swiss Orphan Drug Company

 

52,167,105

 

 

 

 

 

272,423,250

 

 

 

> Denmark 4.4%

 

 

 

2,490,923

 

Novozymes
Industrial Enzymes

 

109,552,657

 

1,263,620

 

SimCorp
Software for Investment Managers

 

73,400,881

 

2,966,887

 

William Demant Holding (a)
Manufacture & Distribution of Hearing Aids & Diagnostic Equipment

 

60,565,158

 

 

 

 

 

243,518,696

 

 

 

> Spain 3.9%

 

 

 

12,927,171

 

Distribuidora Internacional de Alimentación
Discount Retailer in Spain & Latin America

 

80,029,251

 

10,392,279

 

Prosegur
Security Guards

 

72,613,276

 

609,424

 

Viscofan
Sausage Casings Maker

 

32,970,147

 

948,207

 

Bolsas y Mercados Españoles
Spanish Stock Markets

 

28,168,361

 

 

 

 

 

213,781,035

 

 

 

> France 2.4%

 

 

 

880,603

 

Legrand
Electrical Components

 

51,914,519

 

 

1



 

Number of Shares

 

 

 

Value

 

 

 

> France—continued

 

 

 

1,966,291

 

Elior Group
Contract Caterer & Travel Concessionary

 

$

45,015,992

 

78,730

 

Eurofins Scientific
Food, Pharmaceuticals & Materials Screening & Testing

 

35,761,238

 

 

 

 

 

132,691,749

 

 

 

> Netherlands 2.3%

 

 

 

2,044,797

 

Aalberts Industries
Flow Control & Heat Treatment

 

69,714,601

 

734,808

 

Gemalto
Digital Security Solutions

 

47,116,464

 

606,135

 

Brunel
Temporary Specialist & Energy Staffing

 

10,605,039

 

 

 

 

 

127,436,104

 

 

 

> Italy 1.1%

 

 

 

1,048,543

 

Brembo
High Performance Auto Braking Systems Supplier

 

62,545,435

 

 

 

 

 

 

 

 

 

> Finland 0.6%

 

 

 

902,120

 

Konecranes (b)
Manufacture & Service of Industrial Cranes & Port Handling Equipment

 

31,962,508

 

Europe: Total

 

2,447,365,924

 

 

 

 

 

 

 

Asia 38.5%

 

 

 

 

 

> Japan 22.3%

 

 

 

4,700,000

 

Aeon Mall
Suburban Shopping Mall Developer, Owner & Operator

 

74,235,929

 

958,600

 

FamilyMart
Convenience Store Operator

 

63,992,648

 

536,300

 

Hikari Tsushin
Office IT/Mobiles/Insurance Distribution

 

49,801,133

 

2,996,600

 

Santen Pharmaceutical
Specialty Pharma (Ophthalmic Medicine)

 

44,248,918

 

13,100,000

 

Seven Bank
ATM Processing Services

 

41,957,868

 

2,905,000

 

Sekisui Chemical
Housing, Infrastructure & Functional Plastics

 

41,780,265

 

1,336,000

 

DIP
Mobile Temporary Job Information Provider

 

41,576,453

 

339,600

 

Disco
Semiconductor Dicing & Grinding Equipment

 

40,220,793

 

2,900,000

 

Sony Financial Holdings
Life Insurance, Assurance & Internet Banking

 

39,937,986

 

437,400

 

Hoshizaki Electric
Commercial Kitchen Equipment

 

39,915,299

 

865,200

 

Asahi Intecc
Medical Guidewires for Surgery

 

39,595,445

 

1,200,000

 

Glory
Currency Handling Systems & Related Equipment

 

39,568,835

 

3,827,000

 

NOF
Specialty Chemicals, Life Science & Rocket Fuels

 

38,962,101

 

2,149,400

 

Aeon Financial Service
Diversified Consumer-related Finance Company in Japan

 

37,623,477

 

3,000,000

 

Ushio
Industrial Light Sources

 

34,564,348

 

645,300

 

OBIC
Computer Software

 

34,361,478

 

881,400

 

Askul
Online & Mail Order Distribution to Businesses and Consumers

 

33,432,793

 

13,500

 

Japan Retail Fund
Largest Retail REIT in Japan

 

33,295,988

 

5,300

 

Kenedix Office Investment
Tokyo Mid-size Office REIT

 

32,583,519

 

1,196,800

 

Aica Kogyo
Laminated Sheets, Building Materials & Chemical Adhesives

 

31,835,563

 

772,100

 

Recruit Holdings
Recruitment & Media Services

 

31,496,430

 

580,000

 

Sohgo Security Services
Home & Office Security Services in Japan

 

31,170,839

 

1,153,000

 

MonotaRO
Online Maintenance, Repair & Operations Goods Distributor in Japan

 

31,082,491

 

665,800

 

JIN (b)
Eyeglasses Retailer

 

30,886,842

 

1,275,000

 

Suruga Bank
Regional Bank

 

30,561,284

 

1,523,600

 

OSG (b)
Consumable Cutting Tools

 

30,377,454

 

633,300

 

Otsuka
One-stop IT Services & Office Supplies Provider

 

30,079,629

 

974,800

 

Bandai Namco
Branded Toys & Related Content

 

29,836,760

 

380,000

 

Makita
Power Tools

 

27,074,931

 

441,100

 

Ezaki Glico
Confectionary, Ice Cream & Dairy Products

 

26,790,999

 

1,250,000

 

NGK Insulators
Ceramic Products for Auto, Power & Electronics

 

25,975,714

 

1,420,000

 

NGK Spark Plug
Automobile Parts

 

25,091,877

 

630,000

 

Japan Airport Terminal (b)
Airport Terminal Operator at Haneda

 

24,090,181

 

189,100

 

Seria
100 Yen Discount Stores

 

15,203,076

 

5,720

 

Hirose Electric
Electrical Connectors

 

752,079

 

 

 

 

 

1,223,961,425

 

 

 

> Taiwan 4.0%

 

 

 

340,000

 

Largan Precision
Mobile Device Camera Lenses & Modules

 

41,438,009

 

3,256,844

 

PChome Online
Taiwanese E-commerce Company

 

38,551,164

 

4,125,686

 

Advantech
Industrial PC & Components

 

35,510,612

 

 

2



 

Number of Shares

 

 

 

Value

 

 

 

> Taiwan—continued

 

 

 

17,148,352

 

Vanguard International Semiconductor
Semiconductor Foundry

 

$

32,217,511

 

12,426,000

 

Far EasTone Telecom
Mobile Operator in Taiwan

 

29,380,428

 

1,198,000

 

St. Shine Optical
Disposable Contact Lens Original Equipment Manufacturer

 

27,983,972

 

1,100,000

 

Silergy
Chinese Provider of Analog & Mixed Digital Integrated Circuits

 

16,315,799

 

 

 

 

 

221,397,495

 

 

 

> Korea 2.5%

 

 

 

781,101

 

KEPCO Plant Service & Engineering
 Power Plant & Grid Maintenance

 

41,135,723

 

1,096,382

 

Korea Investment Holdings
Brokerage & Asset Management

 

40,856,703

 

36,669

 

Orion Corp
Confectionery & Snack Manufacturer

 

27,635,317

 

230,661

 

KT&G
Tobacco & Ginseng Products

 

26,267,538

 

 

 

 

 

135,895,281

 

 

 

> China 2.2%

 

 

 

3,028,652

 

Vipshop - ADR (a)
Internet Discount Retailer

 

44,430,325

 

16,586,000

 

TravelSky Technology
Chinese Air Travel Transaction Processor

 

39,587,583

 

30,407,000

 

China Everbright International
Municipal Waste Operator

 

36,455,027

 

2,706,000

 

NewOcean Energy
Southern China Liquefied Petroleum Gas Distributor

 

729,246

 

 

 

 

 

121,202,181

 

 

 

> India 2.1%

 

 

 

7,930,285

 

Zee Entertainment Enterprises
Indian Programmer of Pay Television Content

 

65,279,797

 

6,416,931

 

TVS Motor
Indian Maker of Scooters, Mopeds, Motorcycles & Three-wheelers

 

35,363,203

 

1,271,334

 

United Breweries
Indian Brewer

 

17,289,324

 

 

 

 

 

117,932,324

 

 

 

> Hong Kong 1.5%

 

 

 

12,860,600

 

Samsonite International
Mass Market Luggage & Travel Accessories

 

41,466,758

 

38,079,000

 

Value Partners
Mutual Fund Management

 

39,451,433

 

 

 

 

 

80,918,191

 

 

 

> Singapore 1.4%

 

 

 

7,897,000

 

Singapore Exchange
Singapore Equity & Derivatives Market Operator

 

43,073,974

 

25,000,000

 

Mapletree Commercial Trust
Retail & Office Property Landlord

 

29,331,965

 

12,332,500

 

SIIC Environment (a)
Waste Water Treatment Operator

 

5,606,915

 

 

 

 

 

78,012,854

 

 

 

> Thailand 1.1%

 

 

 

103,058,001

 

Home Product Center
Home Improvement Retailer

 

29,828,114

 

2,579,900

 

Airports of Thailand
Airport Operator of Thailand

 

29,753,829

 

 

 

 

 

59,581,943

 

 

 

> Indonesia 0.6%

 

 

 

24,382,400

 

Matahari Department Store
Department Store Chain in Indonesia

 

34,621,372

 

 

 

 

 

 

 

 

 

> Philippines 0.5%

 

 

 

6,800,000

 

Universal Robina
Branded Consumer Food Manufacturer in the Philippines

 

25,025,404

 

 

 

 

 

 

 

 

 

> Cambodia 0.3%

 

 

 

22,000,000

 

Nagacorp
Casino & Entertainment Complex in Cambodia

 

14,521,186

 

Asia: Total

 

2,113,069,656

 

 

 

 

 

 

 

Other Countries 12.5%

 

 

 

 

 

> Canada 5.8%

 

 

 

582,939

 

CCL Industries
Global Label Converter

 

112,242,251

 

1,145,719

 

Vermilion Energy (b)
Canadian Exploration & Production Company

 

44,380,837

 

1,975,105

 

PrairieSky Royalty (b)
Canadian Owner of Oil & Gas Mineral Interests

 

40,271,397

 

1,010,554

 

Boardwalk Real Estate Investment Trust (b)
Canadian Residential REIT

 

39,861,404

 

2,295,066

 

CAE
Flight Simulator Equipment & Training Centers

 

32,590,479

 

1,185,000

 

ShawCor
Oil & Gas Pipeline Products

 

29,237,738

 

 

3



 

Number of Shares

 

 

 

Value

 

 

 

> Canada—continued

 

 

 

817,269

 

Uni-Select
Distribution of Automotive Paint & Replacement Parts in North America

 

$

19,921,691

 

 

 

 

 

318,505,797

 

 

 

> Australia 2.5%

 

 

 

1,602,353

 

Domino’s Pizza Enterprises
Domino’s Pizza Operator in Australia & New Zealand

 

86,818,767

 

2,475,208

 

Amcor
Flexible & Rigid Packaging

 

28,829,486

 

891,207

 

Sirtex
Selective Internal Radiation Therapy Biotech Company

 

21,664,159

 

 

 

 

 

137,312,412

 

 

 

> United States 1.4%

 

 

 

952,000

 

LivaNova (a)
Neuromodulation & Cardiac Devices

 

57,224,720

 

290,000

 

Ultragenyx Pharmaceutical (a)
Biotech Focused on “Ultra-Orphan” Drugs

 

20,572,600

 

 

 

 

 

77,797,320

 

 

 

> South Africa 1.4%

 

 

 

8,281,610

 

Coronation Fund Managers
South African Fund Manager

 

42,390,256

 

10,864,098

 

Rand Merchant Insurance
Directly Sold Property & Casualty Insurance; Holdings in Other Insurers

 

32,776,364

 

 

 

 

 

75,166,620

 

 

 

> Guatemala 0.7%

 

 

 

3,151,582

 

Tahoe Resources
Silver & Gold Projects in Guatemala, Canada & Peru

 

40,405,205

 

 

 

 

 

 

 

 

 

> New Zealand 0.7%

 

 

 

7,017,369

 

Auckland International Airport
Auckland Airport Operator

 

37,611,849

 

Other Countries: Total

 

686,799,203

 

 

 

 

 

 

 

Latin America 1.1%

 

 

 

 

 

> Mexico 1.1%

 

 

 

384,900

 

Grupo Aeroportuario del Sureste - ADR
Mexican Airport Operator

 

56,357,058

 

Latin America: Total

 

56,357,058

 

 

 

 

 

 

 

Total Equities: 96.7%
(Cost: $3,931,078,946)

 

5,303,591,841

(c)

 

 

 

 

 

 

Short-Term Investments 3.4%

 

 

 

$

189,056,620

 

JPMorgan U.S. Government Money Market Fund, IM Shares (7 day yield of 0.35%)

 

189,056,620

 

 

 

 

 

 

 

Total Short-Term Investments: 3.4%
(Cost: $189,056,620)

 

189,056,620

 

 

 

 

 

 

 

Securities Lending Collateral 4.7%

 

 

 

256,628,949

 

Dreyfus Government Cash Management Fund, Institutional Shares (7 day yield of 0.30%) (d)

 

256,628,949

 

 

 

 

 

 

 

Total Securities Lending Collateral: 4.7%
(Cost: $256,628,949)

 

256,628,949

 

 

 

 

 

 

 

Total Investments: 104.8%
(Cost: $4,376,764,515)(e)

 

5,749,277,410

(f) (g)

 

 

 

 

 

 

Obligation to Return Collateral for Securities Loaned: (4.7)%

 

(256,628,949

)

 

 

 

 

 

 

Cash and Other Assets Less Liabilities: (0.1)%

 

(5,993,313

)

 

 

 

 

 

 

Net Assets: 100.0%

 

$

5,486,655,148

 

 

ADR           American Depositary Receipts

REIT        Real Estate Investment Trust

 

4



 


> Notes to Statement of Investments

(a)                       Non-income producing security.

(b)                       All or a portion of this security was on loan at September 30, 2016. The total market value of securities on loan at September 30, 2016 was $243,762,763.

(c)                        On September 30, 2016, the Fund’s total equity investments were denominated in currencies as follows:

 

Currency

 

Value

 

Percentage of
Net Assets

 

Japanese Yen

 

1,223,961,425

 

22.3

 

Euro

 

888,308,295

 

16.2

 

British Pound

 

704,863,599

 

12.9

 

Canadian Dollar

 

358,911,003

 

6.5

 

Swedish Krona

 

338,252,084

 

6.2

 

Swiss Franc

 

272,423,250

 

5.0

 

Other currencies less than 5% of total net assets

 

1,516,872,185

 

27.6

 

Total Equities

 

$

5,303,591,841

 

96.7

 

 

(d)                       Investment made with cash collateral received from securities lending activity.

(e)                        At September 30, 2016, for federal income tax purposes, the cost of investments was approximately $4,376,764,515 and net unrealized appreciation was $1,372,512,895 consisting of gross unrealized appreciation of $1,527,314,403 and gross unrealized depreciation of $154,801,508.

(f)                         An affiliated person of the Fund, as defined in the Investment Company Act of 1940, may include any company in which the Fund owns five percent or more of its outstanding voting shares.  Holdings and transactions in these affiliated companies during the period ended September 30, 2016, are as follows:

 

Security

 

Balance of
Shares Held
12/31/15

 

Purchases/
Additions

 

Sales/
Reductions

 

Balance of
Shares Held
9/30/16

 

Value

 

Dividend

 

Spotless

 

63,000,000

 

 

63,000,000

 

 

$

 

$

1,686,164

 

 

At September 30, 2016, the fund did not hold any investments in affiliated companies.

 

(g)                        Securities are valued using policies described in the Notes to Financial Statements in the shareholder report dated June 30, 2016.

 

Fair Value Measurements

 

Various inputs are used in determining the value of the Fund’s investments, following the input prioritization hierarchy established by accounting principles generally accepted in the United States of America (GAAP). These inputs are summarized in the three broad levels listed below:

 

·                  Level 1 – quoted prices in active markets for identical securities

 

·                  Level 2 – prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others)

 

·                  Level 3 – prices determined using significant unobservable inputs where quoted prices or observable inputs are unavailable or less reliable (including management’s own assumptions about the factors market participants would use in pricing an investment)

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Examples of the types of securities in which the Fund would typically invest and how they are classified within this hierarchy are as follows. Typical Level 1 securities include exchange traded domestic equities, mutual funds whose NAVs are published each day and exchange traded foreign equities that are not statistically fair valued. Typical Level 2 securities include exchange traded foreign equities that are statistically fair valued, forward foreign currency exchange contracts and short-term investments valued at amortized cost. Additionally, securities fair valued by CWAM’s Valuation Committee (the Committee) that rely on significant observable inputs are also included in Level 2. Typical Level 3 securities include any security fair valued by the Committee that relies on significant unobservable inputs.

 

5



 

The Committee is responsible for applying the Trust’s Portfolio Pricing Policy and the CWAM pricing procedures (the Policies), which are approved by and subject to the oversight of the Board.

 

The Committee meets as necessary, and no less frequently than quarterly, to determine fair values for securities for which market quotations are not readily available or for which CWAM believes that available market quotations are unreliable. The Committee also reviews the continuing appropriateness of the Policies. In circumstances where a security has been fair valued, the Committee will also review the continuing appropriateness of the current value of the security. The Policies address, among other things: circumstances under which market quotations will be deemed readily available; selection of third party pricing vendors; appropriate pricing methodologies; events that require fair valuation and fair value techniques; circumstances under which securities will be deemed to pose a potential for stale pricing, including when securities are illiquid, restricted, or in default; and certain delegations of authority to determine fair values to the Fund’s investment manager. The Committee may also meet to discuss additional valuation matters, which may include review of back-testing results, review of time-sensitive information or approval of other valuation related actions, and to review the appropriateness of the Policies.

 

For investments categorized as Level 3, the significant unobservable inputs used in the fair value measurement of the Fund’s securities may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. Significant changes in any of these factors could result in lower or higher fair value measurements. Various factors impact the frequency of monitoring (which may occur as often as daily), however the Committee may determine that changes to inputs, assumptions and models are not required with the same frequency.

 

The following table summarizes the inputs used, as of September 30, 2016, in valuing the Fund’s assets:

 

Investment Type

 

Quoted Prices
(Level 1)

 

Other
Significant
Observable
Inputs
(Level 2)

 

Significant
Unobservable
Inputs
(Level 3)

 

Total

 

Equities

 

 

 

 

 

 

 

 

 

Europe

 

$

 

$

2,447,365,924

 

$

 

$

2,447,365,924

 

Asia

 

44,430,325

 

2,068,639,331

 

 

2,113,069,656

 

Other Countries

 

436,708,322

 

250,090,881

 

 

686,799,203

 

Latin America

 

56,357,058

 

 

 

56,357,058

 

Total Equities

 

537,495,705

 

4,766,096,136

 

 

5,303,591,841

 

Total Short-Term Investments

 

189,056,620

 

 

 

189,056,620

 

Total Securities Lending Collateral

 

256,628,949

 

 

 

256,628,949

 

Total Investments

 

$

983,181,274

 

$

4,766,096,136

 

$

 

$

5,749,277,410

 

 

The Fund’s assets assigned to the Level 2 input category are generally valued using a market approach, in which a security’s value is determined through its correlation to prices and information from observable market transactions for similar or identical assets. Foreign equities are generally valued at the last sale price on the foreign exchange or market on which they trade. The Fund may use a statistical fair valuation model, in accordance with the policy adopted by the Board, provided by an independent third party to value securities principally traded in foreign markets in order to adjust for possible stale pricing that may occur between the close of the foreign exchanges and the time for valuation. These models take into account available market data including intraday index, ADR, and ETF movements.

 

There were no transfers of financial assets between Levels 1 and 2 during the period.

 

Financial assets were transferred from Level 3 to Level 2 as trading resumed during the period.

 

The following table shows transfers from Level 2 and Level 3 of the fair value hierarchy:

 

6



 

Transfers In

 

Transfers Out

 

Level 2

 

Level 3

 

Level 2

 

Level 3

 

$

34,937,684

 

 

 

$

34,937,684

 

 

Transfers into and/or out of Level 3 are determined based on the fair value at the beginning of the period for security positions.

 

7



 

Portfolio Diversification (Unaudited)

 

At September 30, 2016, the Fund’s portfolio investments as a percentage of net assets were diversified as follows:

 

 

 

Value

 

Percentage
of Net Assets

 

> Industrials

 

 

 

 

 

Machinery

 

$

419,337,500

 

7.6

 

Commercial Services & Supplies

 

262,038,874

 

4.8

 

Transportation Infrastructure

 

147,812,917

 

2.7

 

Building Products

 

91,387,184

 

1.7

 

Aerospace & Defense

 

89,744,530

 

1.6

 

Electrical Equipment

 

86,478,867

 

1.6

 

Professional Services

 

42,101,469

 

0.8

 

Trading Companies & Distributors

 

31,082,491

 

0.5

 

Construction & Engineering

 

27,055,874

 

0.5

 

 

 

1,197,039,706

 

21.8

 

> Consumer Discretionary

 

 

 

 

 

Hotels, Restaurants & Leisure

 

259,514,092

 

4.7

 

Specialty Retail

 

216,159,871

 

3.9

 

Internet & Catalog Retail

 

151,882,030

 

2.8

 

Media

 

102,343,632

 

1.9

 

Multiline Retail

 

89,355,351

 

1.6

 

Auto Components

 

87,637,312

 

1.6

 

Household Durables

 

41,780,265

 

0.8

 

Textiles, Apparel & Luxury Goods

 

41,466,758

 

0.8

 

Automobiles

 

35,363,202

 

0.6

 

Leisure Products

 

29,836,760

 

0.5

 

Distributors

 

19,921,691

 

0.4

 

 

 

1,075,260,964

 

19.6

 

> Information Technology

 

 

 

 

 

Electronic Equipment, Instruments & Components

 

224,677,255

 

4.1

 

IT Services

 

206,302,655

 

3.8

 

Internet Software & Services

 

174,525,529

 

3.2

 

Software

 

120,517,345

 

2.2

 

Semiconductors & Semiconductor Equipment

 

88,754,103

 

1.6

 

Technology Hardware, Storage & Peripherals

 

35,510,613

 

0.6

 

 

 

850,287,500

 

15.5

 

> Financials

 

 

 

 

 

Capital Markets

 

297,085,348

 

5.4

 

Insurance

 

72,714,350

 

1.4

 

Banks

 

72,519,152

 

1.3

 

Consumer Finance

 

37,623,478

 

0.7

 

 

 

479,942,328

 

8.8

 

> Health Care

 

 

 

 

 

Health Care Equipment & Supplies

 

232,385,619

 

4.2

 

Biotechnology

 

159,257,900

 

2.9

 

Pharmaceuticals

 

44,248,918

 

0.8

 

Life Sciences Tools & Services

 

35,761,238

 

0.7

 

 

 

471,653,675

 

8.6

 

> Materials

 

 

 

 

 

Chemicals

 

253,750,417

 

4.7

 

Containers & Packaging

 

169,951,111

 

3.1

 

Metals & Mining

 

40,405,205

 

0.7

 

 

 

464,106,733

 

8.5

 

> Consumer Staples

 

 

 

 

 

Food & Staples Retailing

 

144,021,900

 

2.6

 

Food Products

 

114,942,758

 

2.1

 

Tobacco

 

26,267,538

 

0.5

 

Beverages

 

17,289,324

 

0.3

 

 

 

302,521,520

 

5.5

 

> Real Estate

 

 

 

 

 

Equity Real Estate Investment Trusts (REITs)

 

196,081,631

 

3.5

 

Real Estate Management & Development

 

74,235,930

 

1.4

 

 

 

270,317,561

 

4.9

 

> Energy

 

 

 

 

 

Oil, Gas & Consumable Fuels

 

85,381,480

 

1.6

 

Energy Equipment & Services

 

29,237,738

 

0.5

 

 

 

114,619,218

 

2.1

 

> Telecommunication Services

 

 

 

 

 

Wireless Telecommunication Services

 

72,235,721

 

1.3

 

 

 

72,235,721

 

1.3

 

> Utilities

 

 

 

 

 

Water Utilities

 

5,606,915

 

0.1

 

 

 

5,606,915

 

0.1

 

 

 

 

 

 

 

Total Equities:

 

5,303,591,841

 

96.7

 

 

 

 

 

 

 

Short-Term Investments:

 

189,056,620

 

3.4

 

Securities Lending Collateral:

 

256,628,949

 

4.7

 

Total Investments:

 

5,749,277,410

 

104.8

 

Obligation to Return Collateral for Securities Loaned:

 

(256,628,949

)

(4.7

)

Cash and Other Assets Less Liabilities:

 

(5,993,313

)

(0.1

)

 

 

 

 

 

 

Net Assets:

 

$

5,486,655,148

 

100.0

 

 

8



 

Columbia Acorn USA

Statement of Investments (Unaudited), September 30, 2016

 

Number of Shares

 

 

 

Value

 

 

 

 

Equities: 95.9%

 

Health Care 21.5%

 

 

 

 

 

> Biotechnology 5.8%

 

 

 

242,202

 

Repligen (a)
Supplier to Biopharma Industry

 

$

7,312,078

 

53,632

 

Ligand Pharmaceuticals (a) (b)
Royalties from Licensing Drug Delivery Technology

 

5,473,682

 

74,940

 

Ultragenyx Pharmaceutical (a)
Biotech Focused on “Ultra-Orphan” Drugs

 

5,316,244

 

242,039

 

Exact Sciences (a)
Molecular Diagnostics

 

4,494,664

 

77,129

 

Seattle Genetics (a)
Antibody-based Therapies for Cancer

 

4,165,737

 

73,192

 

Agios Pharmaceuticals (a) (b)
Biotech Focused on Cancer & Orphan Diseases

 

3,866,002