N-Q 1 a14-3189_1nq.htm N-Q

 

 

 

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UNITED STATES

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SECURITIES AND EXCHANGE COMMISSION

 

 

Washington, D.C. 20549

 

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-04367

 

Columbia Funds Series Trust I

(Exact name of registrant as specified in charter)

 

225 Franklin Street, Boston, Massachusetts

 

02110

(Address of principal executive offices)

 

(Zip code)

 

Christopher O. Petersen, Esq.

c/o Columbia Management Investment Advisers, LLC

225 Franklin Street

Boston, MA 02110

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(800) 345-6611

 

 

Date of fiscal year end:

March 31

 

 

Date of reporting period:

December 31, 2013

 

 



 

Item 1. Schedule of Investments.

 


 

 


 

Portfolio of Investments

Columbia Pacific/Asia Fund

December 31, 2013 (Unaudited)

(Percentages represent value of investments compared to net assets)

 


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks 95.9%

 

 

 

 

 

AUSTRALIA 11.1%

 

 

 

 

 

Amcor Ltd.

 

328,862

 

$

3,106,362

 

Australia and New Zealand Banking Group Ltd.

 

223,932

 

6,464,520

 

BHP Billiton Ltd.

 

91,097

 

3,105,766

 

Commonwealth Bank of Australia

 

66,916

 

4,662,515

 

National Australia Bank Ltd.

 

98,282

 

3,067,582

 

Orora Ltd. (a)

 

328,862

 

340,624

 

Suncorp Group Ltd.

 

156,085

 

1,832,104

 

Telstra Corp., Ltd.

 

1,034,936

 

4,857,583

 

Wesfarmers Ltd.

 

96,496

 

3,799,333

 

Westpac Banking Corp.

 

110,134

 

3,192,640

 

Total

 

 

 

34,429,029

 

CHINA 14.2%

 

 

 

 

 

58.Com, Inc., ADR (a)

 

18,878

 

723,783

 

Baidu, Inc., ADR (a)

 

7,305

 

1,299,413

 

China Merchants Bank Co., Ltd., Class H

 

1,037,000

 

2,217,684

 

China Mobile Ltd., ADR

 

31,669

 

1,655,972

 

China Petroleum & Chemical Corp., Class H

 

4,356,200

 

3,574,376

 

China Vanke Co., Ltd., Class B

 

830,983

 

1,297,460

 

CIMC Enric Holdings Ltd.

 

782,000

 

1,264,074

 

CNOOC Ltd.

 

1,573,000

 

2,925,431

 

CSPC Pharmaceutical Group Ltd.

 

3,012,000

 

2,380,838

 

Guangdong Investment Ltd.

 

3,610,000

 

3,531,657

 

Industrial & Commercial Bank of China Ltd., Class H

 

7,918,100

 

5,369,348

 

Luthai Textile Co., Ltd., Class B

 

1,014,420

 

1,417,523

 

New Oriental Education & Technology Group, Inc., ADR

 

67,534

 

2,127,321

 

Sinopec Engineering Group Co. Ltd., Class H

 

1,038,500

 

1,557,142

 

Tencent Holdings Ltd.

 

57,500

 

3,681,580

 

Vipshop Holdings Ltd., ADS (a)

 

15,758

 

1,318,629

 

Wasion Group Holdings Ltd.

 

2,285,500

 

1,400,177

 

WuXi PharmaTech (Cayman), Inc. ADR (a)

 

85,172

 

3,268,901

 

Zhuzhou CSR Times Electric Co., Ltd., Class H

 

827,000

 

2,982,876

 

Total

 

 

 

43,994,185

 

HONG KONG 7.2%

 

 

 

 

 

AIA Group Ltd.

 

624,600

 

3,143,917

 

Cheung Kong Holdings Ltd.

 

129,000

 

2,040,880

 

Galaxy Entertainment Group Ltd. (a)

 

485,000

 

4,366,582

 

Hutchison Whampoa Ltd.

 

336,000

 

4,578,257

 

Link REIT (The)

 

465,500

 

2,257,702

 

Sands China Ltd.

 

496,800

 

4,071,442

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

HONG KONG (CONTINUED)

 

 

 

 

 

Wharf Holdings Ltd.

 

223,000

 

$

1,708,213

 

Total

 

 

 

22,166,993

 

INDIA 3.6%

 

 

 

 

 

HCL Technologies Ltd.

 

101,872

 

2,081,540

 

HDFC Bank Ltd., ADR

 

82,085

 

2,827,007

 

ITC Ltd.

 

409,888

 

2,134,414

 

Motherson Sumi Systems Ltd.

 

480,094

 

1,418,640

 

Tata Motors Ltd.

 

454,435

 

2,779,393

 

Total

 

 

 

11,240,994

 

INDONESIA 0.3%

 

 

 

 

 

PT Bank Rakyat Indonesia Persero Tbk

 

1,775,500

 

1,061,253

 

JAPAN 39.3%

 

 

 

 

 

Aoyama Trading Co., Ltd.

 

85,400

 

2,309,581

 

Astellas Pharma, Inc.

 

38,600

 

2,288,472

 

Central Japan Railway Co.

 

36,100

 

4,254,462

 

Daiichikosho Co., Ltd.

 

108,100

 

3,056,581

 

Denso Corp.

 

78,800

 

4,162,901

 

Enplas Corp.

 

25,200

 

1,731,878

 

Fuji Heavy Industries Ltd.

 

140,700

 

4,043,572

 

Glory Ltd.

 

83,300

 

2,161,801

 

Hino Motors Ltd.

 

229,000

 

3,607,379

 

Hoshizaki Electric Co., Ltd.

 

73,600

 

2,617,268

 

IT Holdings Corp.

 

108,000

 

1,705,659

 

ITOCHU Corp.

 

433,700

 

5,361,676

 

Japan Tobacco, Inc.

 

154,100

 

5,014,223

 

Kanamoto Co., Ltd.

 

104,000

 

2,647,534

 

KDDI Corp.

 

62,800

 

3,869,439

 

Lawson, Inc.

 

30,000

 

2,245,078

 

M3, Inc.

 

553

 

1,384,915

 

Mitsubishi UFJ Financial Group, Inc.

 

1,050,700

 

6,976,014

 

Mitsui & Co., Ltd.

 

225,500

 

3,143,727

 

MS&AD Insurance Group Holdings, Inc.

 

136,200

 

3,660,916

 

NAC Co., Ltd.

 

89,000

 

1,406,883

 

Namura Shipbuilding Co., Ltd.

 

178,900

 

2,419,052

 

Nidec Corp.

 

23,900

 

2,354,500

 

Olympus Corp. (a)

 

57,700

 

1,830,056

 

Omron Corp.

 

65,200

 

2,881,402

 

ORIX Corp.

 

243,790

 

4,283,846

 

PeptiDream, Inc. (a)

 

8,300

 

1,093,951

 

Pigeon Corp.

 

25,600

 

1,241,589

 

Raito Kogyo Co., Ltd.

 

349,800

 

2,572,724

 

Rakuten, Inc.

 

165,900

 

2,475,797

 

Resorttrust, Inc.

 

90,800

 

1,655,494

 


 

 


 


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

JAPAN (CONTINUED)

 

 

 

 

 

Shinmaywa Industries Ltd.

 

146,000

 

$

1,267,625

 

SoftBank Corp.

 

43,100

 

3,782,058

 

Sumitomo Mitsui Financial Group, Inc.

 

155,600

 

8,091,727

 

Sun Frontier Fudousan Co., Ltd.

 

109,100

 

1,741,193

 

T&D Holdings, Inc.

 

144,800

 

2,026,707

 

Tokyo Gas Co., Ltd.

 

524,000

 

2,582,642

 

Tokyo Tatemono Co., Ltd.

 

308,000

 

3,424,950

 

Toyota Motor Corp.

 

139,500

 

8,506,025

 

Total

 

 

 

121,881,297

 

MALAYSIA 0.9%

 

 

 

 

 

Tenaga Nasional Bhd

 

806,400

 

2,804,333

 

PHILIPPINES 2.3%

 

 

 

 

 

GT Capital Holdings, Inc.

 

154,720

 

2,693,415

 

Metropolitan Bank & Trust Co.

 

948,574

 

1,621,386

 

Robinsons Retail Holdings, Inc. (a)

 

840,640

 

1,045,532

 

Vista Land & Lifescapes, Inc.

 

14,235,850

 

1,670,527

 

Total

 

 

 

7,030,860

 

SINGAPORE 2.2%

 

 

 

 

 

DBS Group Holdings Ltd.

 

303,000

 

4,117,700

 

Wing Tai Holdings Ltd.

 

1,773,000

 

2,769,541

 

Total

 

 

 

6,887,241

 

SOUTH KOREA 7.2%

 

 

 

 

 

Hotel Shilla Co., Ltd.

 

25,941

 

1,635,137

 

Hyundai Motor Co.

 

20,670

 

4,639,727

 

NAVER Corp.

 

2,752

 

1,896,479

 

Samsung Electronics Co., Ltd.

 

8,310

 

10,828,323

 

SK Telecom Co., Ltd.

 

15,326

 

3,353,931

 

Total

 

 

 

22,353,597

 

TAIWAN 4.8%

 

 

 

 

 

Delta Electronics, Inc.

 

366,000

 

2,095,895

 

Gigabyte Technology Co., Ltd.

 

1,304,000

 

1,576,284

 

Hermes Microvision, Inc.

 

43,000

 

1,400,266

 

MediaTek, Inc.

 

168,000

 

2,504,021

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

TAIWAN (CONTINUED)

 

 

 

 

 

Merida Industry Co., Ltd.

 

218,000

 

$

1,583,639

 

St. Shine Optical Co., Ltd.

 

59,000

 

1,688,206

 

Taiwan Semiconductor Manufacturing Co., Ltd., ADR

 

238,132

 

4,153,022

 

Total

 

 

 

15,001,333

 

THAILAND 2.1%

 

 

 

 

 

Advanced Information Service PCL, Foreign Registered Shares

 

154,300

 

941,009

 

Bangkok Bank PCL, Foreign Registered Shares

 

208,700

 

1,135,833

 

Bangkok Expressway PCL, Foreign Registered Shares

 

1,782,600

 

1,822,880

 

PTT Global Chemical PCL, Foreign Registered Shares

 

1,073,600

 

2,592,797

 

Total

 

 

 

6,492,519

 

UNITED KINGDOM 0.7%

 

 

 

 

 

HSBC Holdings PLC, ADR

 

38,930

 

2,146,211

 

Total Common Stocks
(Cost: $237,928,316)

 

 

 

$

297,489,845

 

 

 

 

 

 

 

 

 

Shares

 

Value

 

 

 

 

 

 

 

Exchange-Traded Funds 1.7%

 

SPDR S&P 500 ETF Trust

 

16,798

 

3,102,087

 

iShares MSCI South Korea Capped ETF

 

33,311

 

2,154,222

 

Total Exchange-Traded Funds
(Cost: $4,993,015)

 

 

 

$

5,256,309

 

 

 

 

 

 

 

 

 

Shares

 

Value

 

 

 

 

 

 

 

Money Market Funds 1.9%

 

Columbia Short-Term Cash Fund, 0.096% (b)(c)

 

5,760,165

 

$

5,760,165

 

Total Money Market Funds
(Cost: $5,760,165)

 

 

 

$

5,760,165

 

Total Investments

 

 

 

 

 

(Cost: $248,681,496) (d)

 

 

 

$

308,506,319(e)

 

Other Assets & Liabilities, Net

 

 

 

1,502,655

 

Net Assets

 

 

 

$

310,008,974

 

 


 

 


 

Investments in Derivatives

Forward Foreign Currency Exchange Contracts Open at December 31, 2013

 

 

Counterparty

 

Exchange Date

 

Currency to be
Delivered

 

Currency to be
Received

 

Unrealized
Appreciation ($)

 

Unrealized
Depreciation ($)

 

Morgan Stanley & Co.

 

February 10, 2014

 

16,008,000
CNY

 

2,616,541
USD

 

 

(4,098)

 

Morgan Stanley & Co.

 

February 10, 2014

 

1,276,000
GBP

 

2,086,107
USD

 

 

(26,336)

 

Morgan Stanley & Co.

 

February 10, 2014

 

28,371,000
INR

 

457,988
USD

 

2,714

 

 

Morgan Stanley & Co.

 

February 10, 2014

 

908,534,000
JPY

 

8,783,702
USD

 

154,872

 

 

Morgan Stanley & Co.

 

February 10, 2014

 

232,582,000
PHP

 

5,257,278
USD

 

 

(8,134)

 

Morgan Stanley & Co.

 

February 10, 2014

 

107,625,000
THB

 

3,327,408
USD

 

58,124

 

 

Morgan Stanley & Co.

 

February 10, 2014

 

30,176,000
THB

 

912,431
USD

 

 

 

(4,214)

 

Morgan Stanley & Co.

 

February 10, 2014

 

3,460,955
USD

 

3,893,000
AUD

 

6,346

 

 

Morgan Stanley & Co.

 

February 10, 2014

 

5,982,883
USD

 

6,332,882,000
KRW

 

31,214

 

 

Morgan Stanley & Co.

 

February 10, 2014

 

698,603
USD

 

851,000
NZD

 

 

(680)

 

Morgan Stanley & Co.

 

February 10, 2014

 

1,812,605
USD

 

2,275,000
SGD

 

 

(9,838)

 

Morgan Stanley & Co.

 

February 10, 2014

 

5,230,389
USD

 

154,467,000
TWD

 

 

(51,509)

 

Morgan Stanley & Co.

 

February 10, 2014

 

453,145
USD

 

13,600,000
TWD

 

2,829

 

 

 

 

 

 

 

 

 

 

256,099

 

(104,809)

 

 

Notes to Portfolio of Investments

 

 

(a)

Non-income producing.

(b)

The rate shown is the seven-day current annualized yield at December 31, 2013.

(c)

As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of its outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended December 31, 2013, are as follows:

 

Issuer

 

Beginning
Cost ($)

 

Purchase
Cost ($)

 

Proceeds from
Sales ($)

 

Ending
Cost ($)

 

Dividends — Affiliated
Issuers ($)

 

Value ($)

 

Columbia Short-Term Cash Fund

 

1,206,677

 

108,574,542

 

(104,021,054

)

5,760,165

 

5,020

 

5,760,165

 

 

(d)

At December 31, 2013, the cost of securities for federal income tax purposes was approximately $248,681,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:

 

Unrealized Appreciation

 

$

61,944,000

 

Unrealized Depreciation

 

(2,119,000

)

Net Unrealized Appreciation

 

$

59,825,000

 

 

(e)

Investments are valued using policies described in the notes to financial statements in the most recent shareholder report.

 

Abbreviation Legend

 

 

ADR

American Depositary Receipt

ADS

American Depositary Share

 

Currency Legend

 

 

AUD

Australian Dollar

CNY

China, Yuan Renminbi

GBP

British Pound

INR

Indian Rupee

JPY

Japanese Yen

KRW

Korean Won

NZD

New Zealand Dollar

PHP

Philippine Peso

SGD

Singapore Dollar

THB

Thailand Baht

TWD

Taiwan Dollar

USD

US Dollar

 

Fair Value Measurements

 

 

Generally accepted accounting principles (GAAP) require 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.

 


 

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 or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

 

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

 

·                   Level 1 - Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds).  Valuation adjustments are not applied to Level 1 investments.

 

·                   Level 2 – Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

 

·                   Level 3 – Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).

 

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

 

Foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange (NYSE) are classified as Level 2.  The values of these securities may include an adjustment to reflect the impact of significant market movements following the close of local trading, as described in Note 2 to the financial statements – Security Valuation in the most recent Semiannual Report dated October 31, 2013.

 

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

 

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

 

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

 


 

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

 

The following table is a summary of the inputs used to value the Fund’s investments at December 31, 2013:

 

Description

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

Quoted Prices in

 

 

Other Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets ($)

 

 

Inputs ($)

 

 

Inputs ($)

 

 

Total ($)

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

 

3,445,950

 

 

48,122,035

 

 

 

 

51,567,985

 

Consumer Staples

 

 

 

 

15,480,168

 

 

 

 

15,480,168

 

Energy

 

 

 

 

6,499,807

 

 

 

 

6,499,807

 

Financials

 

 

4,973,218

 

 

82,529,573

 

 

 

 

87,502,791

 

Health Care

 

 

3,268,901

 

 

10,666,438

 

 

 

 

13,935,339

 

Industrials

 

 

 

 

46,019,860

 

 

 

 

46,019,860

 

Information Technology

 

 

6,176,218

 

 

33,783,505

 

 

 

 

39,959,723

 

Materials

 

 

 

 

9,145,548

 

 

 

 

9,145,548

 

Telecommunication Services

 

 

1,655,972

 

 

16,804,020

 

 

 

 

18,459,992

 

Utilities

 

 

 

 

8,918,632

 

 

 

 

8,918,632

 

Exchange-Traded Funds

 

 

5,256,309

 

 

 

 

 

 

5,256,309

 

Total Equity Securities

 

 

24,776,568

 

 

277,969,586

 

 

 

 

302,746,154

 

Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market Funds

 

 

5,760,165

 

 

 

 

 

 

5,760,165

 

Total Mutual Funds

 

 

5,760,165

 

 

 

 

 

 

5,760,165

 

Investments in Securities

 

 

30,536,733

 

 

277,969,586

 

 

 

 

308,506,319

 

Derivatives

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward Foreign Currency Exchange Contracts

 

 

 

 

256,099

 

 

 

 

256,099

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward Foreign Currency Exchange Contracts

 

 

 

 

(104,809)

 

 

 

 

(104,809)

 

Total

 

 

30,536,733

 

 

278,120,876

 

 

 

 

308,657,609

 

 

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

 

The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical assets.  These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation.  The models utilized by the third party statistical pricing service take into account a security’s correlation to available market data including, but not limited to, intraday index, ADR, and ETF movements.

 

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

 

Derivative instruments are valued at unrealized appreciation (depreciation).

 

 


 

Portfolio of Investments

Columbia Select Large Cap Growth Fund

December 31, 2013 (Unaudited)

(Percentages represent value of investments compared to net assets)

 


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks 99.4%

 

 

 

 

 

CONSUMER DISCRETIONARY 21.7%

 

 

 

 

 

Automobiles 3.9%

 

 

 

 

 

Tesla Motors, Inc. (a)

 

1,761,960

 

$

264,963,545

 

Internet & Catalog Retail 7.7%

 

 

 

 

 

Amazon.com, Inc. (a)

 

594,518

 

237,087,833

 

priceline.com, Inc. (a)

 

242,198

 

281,530,955

 

Total

 

 

 

518,618,788

 

Media 2.6%

 

 

 

 

 

Discovery Communications, Inc., Class A (a)

 

1,910,740

 

172,769,111

 

Specialty Retail 3.3%

 

 

 

 

 

TJX Companies, Inc.

 

3,535,480

 

225,316,140

 

Textiles, Apparel & Luxury Goods 4.2%

 

 

 

 

 

Michael Kors Holdings Ltd. (a)

 

3,500,920

 

284,239,695

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

1,465,907,279

 

ENERGY 6.4%

 

 

 

 

 

Energy Equipment & Services 3.7%

 

 

 

 

 

FMC Technologies, Inc. (a)

 

4,807,185

 

250,983,129

 

Oil, Gas & Consumable Fuels 2.7%

 

 

 

 

 

EOG Resources, Inc.

 

1,074,066

 

180,271,237

 

TOTAL ENERGY

 

 

 

431,254,366

 

FINANCIALS 2.0%

 

 

 

 

 

Capital Markets 2.0%

 

 

 

 

 

Franklin Resources, Inc.

 

2,354,814

 

135,943,412

 

TOTAL FINANCIALS

 

 

 

135,943,412

 

HEALTH CARE 21.1%

 

 

 

 

 

Biotechnology 15.9%

 

 

 

 

 

Alexion Pharmaceuticals, Inc. (a)

 

1,018,948

 

135,581,221

 

Biogen Idec, Inc. (a)

 

618,774

 

173,102,027

 

Celgene Corp. (a)

 

1,691,702

 

285,829,970

 

Gilead Sciences, Inc. (a)

 

3,519,820

 

264,514,473

 

Vertex Pharmaceuticals, Inc. (a)

 

2,831,360

 

210,370,048

 

Total

 

 

 

1,069,397,739

 

Pharmaceuticals 5.2%

 

 

 

 

 

Allergan, Inc.

 

2,004,882

 

222,702,293

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

HEALTH CARE (CONTINUED)

 

 

 

 

 

Pharmaceuticals (continued)

 

 

 

 

 

Bristol-Myers Squibb Co.

 

2,383,210

 

$

126,667,611

 

Total

 

 

 

349,369,904

 

TOTAL HEALTH CARE

 

 

 

1,418,767,643

 

INDUSTRIALS 7.3%

 

 

 

 

 

Aerospace & Defense 3.8%

 

 

 

 

 

Precision Castparts Corp.

 

957,525

 

257,861,483

 

Trading Companies & Distributors 3.5%

 

 

 

 

 

Fastenal Co.

 

4,935,196

 

234,471,162

 

TOTAL INDUSTRIALS

 

 

 

492,332,645

 

INFORMATION TECHNOLOGY 37.5%

 

 

 

 

 

Internet Software & Services 15.1%

 

 

 

 

 

Baidu, Inc., ADR (a)

 

1,103,114

 

196,221,918

 

Facebook, Inc., Class A (a)

 

3,626,053

 

198,200,057

 

Google, Inc., Class A (a)

 

211,835

 

237,405,603

 

LinkedIn Corp., Class A (a)

 

835,509

 

181,163,416

 

MercadoLibre, Inc.

 

1,889,905

 

203,712,860

 

Total

 

 

 

1,016,703,854

 

IT Services 7.3%

 

 

 

 

 

Cognizant Technology Solutions Corp., Class A (a)

 

2,541,195

 

256,609,871

 

Visa, Inc., Class A

 

1,040,023

 

231,592,322

 

Total

 

 

 

488,202,193

 

Semiconductors & Semiconductor Equipment 2.8%

 

 

 

ARM Holdings PLC, ADR

 

3,440,120

 

188,312,169

 

Software 12.3%

 

 

 

 

 

Red Hat, Inc. (a)

 

4,971,810

 

278,620,232

 

Salesforce.com, Inc. (a)

 

4,801,196

 

264,978,007

 

VMware, Inc., Class A (a)

 

3,205,160

 

287,534,904

 

Total

 

 

 

831,133,143

 

TOTAL INFORMATION TECHNOLOGY

 

 

 

2,524,351,359

 

MATERIALS 3.4%

 

 

 

 

 

Chemicals 3.4%

 

 

 

 

 

Monsanto Co.

 

1,989,935

 

231,926,924

 

TOTAL MATERIALS

 

 

 

231,926,924

 

Total Common Stocks
(Cost: $4,046,171,562)

 

 

 

$

6,700,483,628

 

 


 

 


 


 

 

 

Shares

 

Value

 

 

 

 

 

 

 

Money Market Funds 0.7%

 

 

 

 

 

Columbia Short-Term Cash Fund, 0.096% (b)(c)

 

45,221,772

 

$

45,221,772

 

Total Money Market Funds
(Cost: $45,221,772)

 

 

 

$

45,221,772

 

Total Investments

 

 

 

 

 

(Cost: $4,091,393,334) (d)

 

 

 

$

6,745,705,400(e)

 

Other Assets & Liabilities, Net

 

 

 

(7,488,711)

 

Net Assets

 

 

 

$

6,738,216,689

 

 

 

 

 


 

Notes to Portfolio of Investments

 

 

(a)

Non-income producing.

(b)

The rate shown is the seven-day current annualized yield at December 31, 2013.

(c)

As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of its outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended December 31, 2013, are as follows:

 

Issuer

 

Beginning
Cost ($)

 

Purchase Cost ($)

 

Proceeds from
Sales ($)

 

Ending Cost ($)

 

Dividends —
Affiliated Issuers ($)

 

Value ($)

 

Columbia Short-Term Cash Fund

 

38,068,512

 

1,458,898,052

 

(1,451,744,792

)

45,221,772

 

57,753

 

45,221,772

 

 

(d)

At December 31, 2013, the cost of securities for federal income tax purposes was approximately $4,091,393,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:

 

Unrealized Appreciation

 

$

2,680,836,000

 

Unrealized Depreciation

 

(26,524,000

)

Net Unrealized Appreciation

 

$

2,654,312,000

 

 

(e)

Investments are valued using policies described in the notes to financial statements in the most recent shareholder report.

 

Abbreviation Legend

 

 

ADR

American Depositary Receipt

 

Fair Value Measurements

 

 

Generally accepted accounting principles (GAAP) require 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.

 

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 or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

 

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

 

·                   Level 1 - Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds).  Valuation adjustments are not applied to Level 1 investments.

 

·                   Level 2 – Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

 

·                   Level 3 – Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).

 


 

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

 

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

 

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

 

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

 

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

 

The following table is a summary of the inputs used to value the Fund’s investments at December 31, 2013:

 

Description

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

Quoted Prices in

 

 

Other Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets ($)

 

 

Inputs ($)

 

 

Inputs ($)

 

 

Total ($)

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

 

1,465,907,279

 

 

 

 

 

 

1,465,907,279

 

Energy

 

 

431,254,366

 

 

 

 

 

 

431,254,366

 

Financials

 

 

135,943,412

 

 

 

 

 

 

135,943,412

 

Health Care

 

 

1,418,767,643

 

 

 

 

 

 

1,418,767,643

 

Industrials

 

 

492,332,645

 

 

 

 

 

 

492,332,645

 

Information Technology

 

 

2,524,351,359

 

 

 

 

 

 

2,524,351,359

 

Materials

 

 

231,926,924

 

 

 

 

 

 

231,926,924

 

Total Equity Securities

 

 

6,700,483,628

 

 

 

 

 

 

6,700,483,628

 

Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market Funds

 

 

45,221,772

 

 

 

 

 

 

45,221,772

 

Total Mutual Funds

 

 

45,221,772

 

 

 

 

 

 

45,221,772

 

Total

 

 

6,745,705,400

 

 

 

 

 

 

6,745,705,400

 

 

 


 

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

 

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

 


 

Portfolio of Investments

Active Portfolios® Multi-Manager Growth Fund

December 31, 2013 (Unaudited)

(Percentages represent value of investments compared to net assets)

 


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks 98.8%

 

 

 

 

 

CONSUMER DISCRETIONARY 21.6%

 

 

 

 

 

Automobiles 3.9%

 

 

 

 

 

Tesla Motors, Inc. (a)

 

416,870

 

$

62,688,911

 

Internet & Catalog Retail 7.9%

 

 

 

 

 

Amazon.com, Inc. (a)

 

146,205

 

58,305,092

 

priceline.com, Inc. (a)

 

59,990

 

69,732,376

 

Total

 

 

 

128,037,468

 

Media 2.5%

 

 

 

 

 

Discovery Communications, Inc., Class A (a)

 

452,480

 

40,913,242

 

Specialty Retail 3.2%

 

 

 

 

 

Lowe’s Companies, Inc.

 

20,073

 

994,617

 

TJX Companies, Inc.

 

811,870

 

51,740,475

 

Total

 

 

 

52,735,092

 

Textiles, Apparel & Luxury Goods 4.1%

 

 

 

 

 

Michael Kors Holdings Ltd. (a)

 

819,090

 

66,501,917

 

TOTAL CONSUMER DISCRETIONARY

 

 

 

350,876,630

 

CONSUMER STAPLES 0.2%

 

 

 

 

 

Beverages 0.1%

 

 

 

 

 

Coca-Cola Co. (The)

 

12,524

 

517,366

 

Diageo PLC, ADR

 

723

 

95,740

 

Monster Beverage Corp. (a)

 

11,306

 

766,208

 

SABMiller PLC, ADR

 

11,055

 

566,900

 

Total

 

 

 

1,946,214

 

Food Products 0.1%

 

 

 

 

 

Danone, ADR

 

72,948

 

1,059,205

 

Household Products —%

 

 

 

 

 

Procter & Gamble Co. (The)

 

8,810

 

717,222

 

TOTAL CONSUMER STAPLES

 

 

 

3,722,641

 

ENERGY 6.3%

 

 

 

 

 

Energy Equipment & Services 3.7%

 

 

 

 

 

FMC Technologies, Inc. (a)

 

1,139,935

 

59,516,007

 

Schlumberger Ltd.

 

9,202

 

829,192

 

Total

 

 

 

60,345,199

 

Oil, Gas & Consumable Fuels 2.6%

 

 

 

 

 

EOG Resources, Inc.

 

246,010

 

41,290,318

 

TOTAL ENERGY

 

 

 

101,635,517

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

FINANCIALS 2.1%

 

 

 

 

 

Capital Markets 2.0%

 

 

 

 

 

Franklin Resources, Inc.

 

564,364

 

$

32,580,734

 

Greenhill & Co., Inc.

 

4,611

 

267,161

 

SEI Investments Co.

 

22,535

 

782,640

 

Total

 

 

 

33,630,535

 

Consumer Finance 0.1%

 

 

 

 

 

American Express Co.

 

9,342

 

847,600

 

TOTAL FINANCIALS

 

 

 

34,478,135

 

HEALTH CARE 20.6%

 

 

 

 

 

Biotechnology 15.6%

 

 

 

 

 

Alexion Pharmaceuticals, Inc. (a)

 

242,624

 

32,283,549

 

Amgen, Inc.

 

5,513

 

629,364

 

Biogen Idec, Inc. (a)

 

143,114

 

40,036,142

 

Celgene Corp. (a)

 

396,850

 

67,051,776

 

Gilead Sciences, Inc. (a)

 

856,988

 

64,402,648

 

Vertex Pharmaceuticals, Inc. (a)

 

656,000

 

48,740,800

 

Total

 

 

 

253,144,279

 

Health Care Equipment & Supplies 0.1%

 

 

 

 

 

Varian Medical Systems, Inc. (a)

 

9,570

 

743,493

 

Zimmer Holdings, Inc.

 

11,728

 

1,092,933

 

Total

 

 

 

1,836,426

 

Pharmaceuticals 4.9%

 

 

 

 

 

Allergan, Inc.

 

437,465

 

48,593,612

 

Bristol-Myers Squibb Co.

 

544,600

 

28,945,490

 

Merck & Co., Inc.

 

8,316

 

416,216

 

Novartis AG, ADR

 

10,314

 

829,039

 

Total

 

 

 

78,784,357

 

TOTAL HEALTH CARE

 

 

 

333,765,062

 

INDUSTRIALS 7.4%

 

 

 

 

 

Aerospace & Defense 3.9%

 

 

 

 

 

Precision Castparts Corp.

 

236,191

 

63,606,236

 

Air Freight & Logistics 0.1%

 

 

 

 

 

Expeditors International of Washington, Inc.

 

21,145

 

935,666

 

United Parcel Service, Inc., Class B

 

9,027

 

948,557

 

Total

 

 

 

1,884,223

 

 


 

 

 


 


 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

 

 

INDUSTRIALS (CONTINUED)

 

 

 

 

 

Trading Companies & Distributors 3.4%

 

 

 

 

 

Fastenal Co.

 

1,165,770

 

$

55,385,733

 

TOTAL INDUSTRIALS

 

 

 

120,876,192

 

INFORMATION TECHNOLOGY 37.3%

 

 

 

 

 

Communications Equipment 0.2%

 

 

 

 

 

Cisco Systems, Inc.

 

60,586

 

1,360,156

 

QUALCOMM, Inc.

 

14,747

 

1,094,965

 

Total

 

 

 

2,455,121

 

Internet Software & Services 14.9%

 

 

 

 

 

Baidu, Inc., ADR (a)

 

261,583

 

46,530,384

 

Facebook, Inc., Class A (a)

 

884,053

 

48,322,337

 

Google, Inc., Class A (a)

 

51,550

 

57,772,601

 

LinkedIn Corp., Class A (a)

 

184,287

 

39,958,950

 

MercadoLibre, Inc.

 

447,160

 

48,199,376

 

Total

 

 

 

240,783,648

 

IT Services 7.1%

 

 

 

 

 

Automatic Data Processing, Inc.

 

4,964

 

401,141

 

Cognizant Technology Solutions Corp., Class A (a)

 

615,457

 

62,148,848

 

Visa, Inc., Class A

 

237,089

 

52,794,978

 

Total

 

 

 

115,344,967

 

Semiconductors & Semiconductor Equipment 2.8%

 

 

 

Altera Corp.

 

1,986

 

64,605

 

Analog Devices, Inc.

 

2,376

 

121,010

 

ARM Holdings PLC, ADR

 

831,317

 

45,506,292

 

Total

 

 

 

45,691,907

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Common Stocks (continued)

 

 

 

INFORMATION TECHNOLOGY (CONTINUED)

 

 

 

Software 12.3%

 

 

 

 

 

Autodesk, Inc. (a)

 

15,436

 

$

776,894

 

Factset Research Systems, Inc.

 

4,908

 

532,911

 

Microsoft Corp.

 

16,094

 

602,398

 

Oracle Corp.

 

31,458

 

1,203,583

 

Red Hat, Inc. (a)

 

1,179,480

 

66,098,059

 

Salesforce.com, Inc. (a)

 

1,157,992

 

63,909,578

 

VMware, Inc., Class A (a)

 

746,350

 

66,955,059

 

Total

 

 

 

200,078,482

 

TOTAL INFORMATION TECHNOLOGY

 

 

 

604,354,125

 

MATERIALS 3.3%

 

 

 

 

 

Chemicals 3.3%

 

 

 

 

 

Monsanto Co.

 

464,530

 

54,140,972

 

TOTAL MATERIALS

 

 

 

54,140,972

 

Total Common Stocks
(Cost: $1,174,020,853)

 

 

 

$

1,603,849,274

 

 

 

 

 

 

 

Issuer

 

Shares

 

Value

 

 

 

 

 

 

 

Money Market Funds 1.2%

 

 

 

 

 

Columbia Short-Term Cash Fund, 0.096% (b)(c)

 

18,991,051

 

$

18,991,051

 

Total Money Market Funds
(Cost: $18,991,051)

 

 

 

$

18,991,051

 

Total Investments

 

 

 

 

 

(Cost: $1,193,011,904) (d)

 

 

 

$

1,622,840,325(e)

 

Other Assets & Liabilities, Net

 

 

 

(731,909)

 

Net Assets

 

 

 

$

1,622,108,416

 

 


 

Notes to Portfolio of Investments

 

 

(a)

Non-income producing.

(b)

The rate shown is the seven-day current annualized yield at December 31, 2013.

(c)

As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of its outstanding voting securities, or a company which is under common ownership or control with the Fund. Holdings and transactions in these affiliated companies during the period ended December 31, 2013, are as follows:

 

Issuer

 

Beginning
Cost ($)

 

Purchase
Cost ($)

 

Proceeds from
Sales ($)

 

Ending Cost ($)

 

Dividends —
Affiliated Issuers ($)

 

Value ($)

 

Columbia Short-Term Cash Fund

 

20,871,770

 

428,944,254

 

(430,824,973

)

18,991,051

 

34,929

 

18,991,051

 

 

(d)

At December 31, 2013, the cost of securities for federal income tax purposes was approximately $1,193,012,000 and the approximate aggregate gross unrealized appreciation and depreciation based on that cost was:

 

Unrealized Appreciation

 

$

435,938,000

 

Unrealized Depreciation

 

(6,110,000

)

Net Unrealized Appreciation

 

$

429,828,000

 

 

 


 

(e)

Investments are valued using policies described in the notes to financial statements in the most recent shareholder report.

 

Abbreviation Legend

 

 

ADR

American Depositary Receipt

 

Fair Value Measurements

 

 

Generally accepted accounting principles (GAAP) require 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.

 

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 or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

 

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

 

·                   Level 1 - Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds).  Valuation adjustments are not applied to Level 1 investments.

 

·                   Level 2 – Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

 

·                   Level 3 – Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments).

 

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

 

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

 

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

 

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

 


 

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

 

The following table is a summary of the inputs used to value the Fund’s investments at December 31, 2013:

 

Description

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

Quoted Prices in

 

 

Other Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets for

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets ($)

 

 

Inputs ($)

 

 

Inputs ($)

 

 

Total ($)

 

Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stocks

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Discretionary

 

 

350,876,630

 

 

 

 

 

 

350,876,630

 

Consumer Staples

 

 

3,722,641

 

 

 

 

 

 

3,722,641

 

Energy

 

 

101,635,517

 

 

 

 

 

 

101,635,517

 

Financials

 

 

34,478,135

 

 

 

 

 

 

34,478,135

 

Health Care

 

 

333,765,062

 

 

 

 

 

 

333,765,062

 

Industrials

 

 

120,876,192

 

 

 

 

 

 

120,876,192

 

Information Technology

 

 

604,354,125

 

 

 

 

 

 

604,354,125

 

Materials

 

 

54,140,972

 

 

 

 

 

 

54,140,972

 

Total Equity Securities

 

 

1,603,849,274

 

 

 

 

 

 

1,603,849,274

 

Mutual Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

Money Market Funds

 

 

18,991,051

 

 

 

 

 

 

18,991,051

 

Total Mutual Funds

 

 

18,991,051

 

 

 

 

 

 

18,991,051

 

Total

 

 

1,622,840,325

 

 

 

 

 

 

1,622,840,325

 

 

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

 

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

 


 

Item  2. Controls and Procedures.

 

(a)         The registrant’s principal executive officer and principal financial officers, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-Q is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

 

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

 

Item 3. Exhibits.

 

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

 


 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(registrant)

 

Columbia Funds Series Trust I

 

 

 

 

 

 

 

By (Signature and Title)

 

/s/ J. Kevin Connaughton

 

 

J. Kevin Connaughton, President and Principal Executive Officer

 

 

 

 

 

 

Date

 

February 19, 2014

 

 

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/ J. Kevin Connaughton

 

 

J. Kevin Connaughton, President and Principal Executive Officer

 

 

 

 

 

 

Date

 

February 19, 2014

 

 

 

 

 

 

 

By (Signature and Title)

 

/s/ Michael G. Clarke

 

 

Michael G. Clarke, Treasurer and Chief Financial Officer

 

 

 

 

 

 

 

Date

 

February 19, 2014