Columbia Strategic
California Municipal Income Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
Columbia Strategic California
Municipal Income Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and Form N-PORT
filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Strategic California Municipal Income
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, with a focus on income exempt from federal income tax and California individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2016
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2020) | |
| AAA rating | 0.8 |
| AA rating | 44.9 |
| A rating | 25.6 |
| BBB rating | 19.6 |
| BB rating | 1.5 |
| Not rated | 7.6 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2019 — April 30, 2020 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 965.50 | 1,020.93 | 3.86 | 3.97 | 0.79 |
| Advisor Class | 1,000.00 | 1,000.00 | 966.70 | 1,022.18 | 2.64 | 2.72 | 0.54 |
| Class C | 1,000.00 | 1,000.00 | 963.40 | 1,018.70 | 6.05 | 6.22 | 1.24 |
| Institutional Class | 1,000.00 | 1,000.00 | 966.70 | 1,022.18 | 2.64 | 2.72 | 0.54 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 965.60 | 1,022.28 | 2.54 | 2.61 | 0.52 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 967.30 | 1,022.53 | 2.30 | 2.36 | 0.47 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 11 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 13 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Notes to Portfolio of
Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 2020. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At April 30, 2020, the total value of these securities amounted to $27,388,661, which represents 4.88% of total net assets. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Notes to Portfolio of Investments (continued)
| (e) | Zero coupon bond. |
| (f) | Represents a security purchased on a when-issued basis. |
| (g) | Inverse floating rate security issued by a tender option bond (TOB) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association (SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. The interest rate shown was the current rate as of April 30, 2020. |
| (h) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At April 30, 2020, the total value of these securities amounted to $54,900, which represents 0.01% of total net assets. |
| (i) | The rate shown is the seven-day current annualized yield at April 30, 2020. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| FHLMC | Federal Home Loan Mortgage Corporation |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 15 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Fair value measurements (continued)
The following table is a summary of the inputs used to value the Fund’s investments at April 30, 2020:
The following table is a summary of the inputs used to value the Fund’s investments at April 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Floating Rate Notes | — | 1,865,000 | — | 1,865,000 |
| Municipal Bonds | — | 557,117,080 | — | 557,117,080 |
| Money Market Funds | 6,462,069 | — | — | 6,462,069 |
| Total Investments in Securities | 6,462,069 | 558,982,080 | — | 565,444,149 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $561,459,413) | $565,444,149 |
| Cash | 23,930 |
| Receivable for: | |
| Investments sold | 6,556,925 |
| Capital shares sold | 1,788,943 |
| Interest | 6,100,838 |
| Expense reimbursement due from Investment Manager | 383 |
| Prepaid expenses | 699 |
| Trustees’ deferred compensation plan | 98,369 |
| Other assets | 981 |
| Total assets | 580,015,217 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 15,658,917 |
| Capital shares purchased | 1,242,678 |
| Distributions to shareholders | 1,317,122 |
| Management services fees | 7,069 |
| Distribution and/or service fees | 2,757 |
| Transfer agent fees | 35,738 |
| Compensation of board members | 24,484 |
| Compensation of chief compliance officer | 16 |
| Other expenses | 18,330 |
| Trustees’ deferred compensation plan | 98,369 |
| Total liabilities | 18,405,480 |
| Net assets applicable to outstanding capital stock | $561,609,737 |
| Represented by | |
| Paid in capital | 557,306,831 |
| Total distributable earnings (loss) | 4,302,906 |
| Total - representing net assets applicable to outstanding capital stock | $561,609,737 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 17 |
Statement of Assets and Liabilities (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Class A | |
| Net assets | $324,984,593 |
| Shares outstanding | 44,301,238 |
| Net asset value per share | $7.34 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $7.57 |
| Advisor Class | |
| Net assets | $3,438,530 |
| Shares outstanding | 468,385 |
| Net asset value per share | $7.34 |
| Class C | |
| Net assets | $28,315,283 |
| Shares outstanding | 3,859,437 |
| Net asset value per share | $7.34 |
| Institutional Class | |
| Net assets | $194,229,269 |
| Shares outstanding | 26,466,821 |
| Net asset value per share | $7.34 |
| Institutional 2 Class | |
| Net assets | $3,398,216 |
| Shares outstanding | 462,301 |
| Net asset value per share | $7.35 |
| Institutional 3 Class | |
| Net assets | $7,243,846 |
| Shares outstanding | 981,962 |
| Net asset value per share | $7.38 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Statement of Operations
Six Months Ended April 30, 2020 (Unaudited)
Six Months Ended April 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $43,748 |
| Interest | 10,364,544 |
| Total income | 10,408,292 |
| Expenses: | |
| Management services fees | 1,358,646 |
| Distribution and/or service fees | |
| Class A | 428,817 |
| Class C | 156,137 |
| Transfer agent fees | |
| Class A | 134,018 |
| Advisor Class | 2,319 |
| Class C | 12,196 |
| Institutional Class | 78,488 |
| Institutional 2 Class | 1,007 |
| Institutional 3 Class | 308 |
| Compensation of board members | 6,127 |
| Custodian fees | 2,578 |
| Printing and postage fees | 11,352 |
| Registration fees | 5,350 |
| Audit fees | 14,660 |
| Legal fees | 6,530 |
| Compensation of chief compliance officer | 107 |
| Other | 10,366 |
| Total expenses | 2,229,006 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (56,123) |
| Fees waived by distributor | |
| Class C | (46,811) |
| Total net expenses | 2,126,072 |
| Net investment income | 8,282,220 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 1,318,919 |
| Futures contracts | 33,834 |
| Net realized gain | 1,352,753 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (31,641,964) |
| Net change in unrealized appreciation (depreciation) | (31,641,964) |
| Net realized and unrealized loss | (30,289,211) |
| Net decrease in net assets resulting from operations | $(22,006,991) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 19 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |
| Operations | ||
| Net investment income | $8,282,220 | $17,690,601 |
| Net realized gain | 1,352,753 | 5,082,534 |
| Net change in unrealized appreciation (depreciation) | (31,641,964) | 24,321,471 |
| Net increase (decrease) in net assets resulting from operations | (22,006,991) | 47,094,606 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (7,994,357) | (11,667,135) |
| Advisor Class | (150,154) | (105,641) |
| Class C | (658,594) | (997,548) |
| Institutional Class | (4,872,287) | (5,895,137) |
| Institutional 2 Class | (84,981) | (36,037) |
| Institutional 3 Class | (172,383) | (198,531) |
| Total distributions to shareholders | (13,932,756) | (18,900,029) |
| Increase in net assets from capital stock activity | 10,074,135 | 51,791,541 |
| Total increase (decrease) in net assets | (25,865,612) | 79,986,118 |
| Net assets at beginning of period | 587,475,349 | 507,489,231 |
| Net assets at end of period | $561,609,737 | $587,475,349 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2020 (Unaudited) | October 31, 2019 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 2,605,356 | 20,150,999 | 6,603,427 | 50,368,103 |
| Distributions reinvested | 864,161 | 6,648,944 | 1,268,043 | 9,637,698 |
| Redemptions | (3,881,028) | (29,440,120) | (7,075,778) | (53,717,867) |
| Net increase (decrease) | (411,511) | (2,640,177) | 795,692 | 6,287,934 |
| Advisor Class | ||||
| Subscriptions | 209,738 | 1,622,634 | 656,892 | 5,048,896 |
| Distributions reinvested | 19,420 | 149,906 | 13,669 | 105,265 |
| Redemptions | (557,972) | (3,930,711) | (58,193) | (437,121) |
| Net increase (decrease) | (328,814) | (2,158,171) | 612,368 | 4,717,040 |
| Class C | ||||
| Subscriptions | 573,286 | 4,408,610 | 804,684 | 6,140,955 |
| Distributions reinvested | 58,502 | 450,195 | 86,374 | 655,595 |
| Redemptions | (809,411) | (6,122,031) | (1,621,441) | (12,279,875) |
| Net decrease | (177,623) | (1,263,226) | (730,383) | (5,483,325) |
| Institutional Class | ||||
| Subscriptions | 6,130,473 | 47,167,498 | 11,730,006 | 89,434,865 |
| Distributions reinvested | 402,864 | 3,100,972 | 461,332 | 3,516,101 |
| Redemptions | (4,743,938) | (35,494,565) | (6,927,461) | (52,227,871) |
| Net increase | 1,789,399 | 14,773,905 | 5,263,877 | 40,723,095 |
| Institutional 2 Class | ||||
| Subscriptions | 40,687 | 309,968 | 395,896 | 3,066,598 |
| Distributions reinvested | 10,994 | 84,744 | 4,589 | 35,677 |
| Redemptions | (12,995) | (100,229) | (3,461) | (26,729) |
| Net increase | 38,686 | 294,483 | 397,024 | 3,075,546 |
| Institutional 3 Class | ||||
| Subscriptions | 287,255 | 2,224,967 | 440,727 | 3,359,946 |
| Distributions reinvested | 22,218 | 171,821 | 25,862 | 198,148 |
| Redemptions | (177,403) | (1,329,467) | (143,515) | (1,086,843) |
| Net increase | 132,070 | 1,067,321 | 323,074 | 2,471,251 |
| Total net increase | 1,042,207 | 10,074,135 | 6,661,652 | 51,791,541 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 21 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.78 | 0.10 | (0.36) | (0.26) | (0.11) | (0.07) | (0.18) |
| Year Ended 10/31/2019 | $7.37 | 0.25 | 0.43 | 0.68 | (0.25) | (0.02) | (0.27) |
| Year Ended 10/31/2018 | $7.72 | 0.27 | (0.32) | (0.05) | (0.26) | (0.04) | (0.30) |
| Year Ended 10/31/2017 | $7.94 | 0.28 | (0.17) | 0.11 | (0.28) | (0.05) | (0.33) |
| Year Ended 10/31/2016 | $7.90 | 0.29 | 0.08 | 0.37 | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2015 | $7.99 | 0.30 | (0.05) | 0.25 | (0.30) | (0.04) | (0.34) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.78 | 0.11 | (0.36) | (0.25) | (0.12) | (0.07) | (0.19) |
| Year Ended 10/31/2019 | $7.37 | 0.26 | 0.43 | 0.69 | (0.26) | (0.02) | (0.28) |
| Year Ended 10/31/2018 | $7.72 | 0.29 | (0.32) | (0.03) | (0.28) | (0.04) | (0.32) |
| Year Ended 10/31/2017 | $7.94 | 0.29 | (0.16) | 0.13 | (0.30) | (0.05) | (0.35) |
| Year Ended 10/31/2016 | $7.90 | 0.31 | 0.08 | 0.39 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2015 | $7.99 | 0.32 | (0.05) | 0.27 | (0.32) | (0.04) | (0.36) |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.78 | 0.09 | (0.37) | (0.28) | (0.09) | (0.07) | (0.16) |
| Year Ended 10/31/2019 | $7.37 | 0.21 | 0.43 | 0.64 | (0.21) | (0.02) | (0.23) |
| Year Ended 10/31/2018 | $7.72 | 0.23 | (0.31) | (0.08) | (0.23) | (0.04) | (0.27) |
| Year Ended 10/31/2017 | $7.94 | 0.24 | (0.17) | 0.07 | (0.24) | (0.05) | (0.29) |
| Year Ended 10/31/2016 | $7.90 | 0.25 | 0.09 | 0.34 | (0.26) | (0.04) | (0.30) |
| Year Ended 10/31/2015 | $7.99 | 0.27 | (0.06) | 0.21 | (0.26) | (0.04) | (0.30) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.78 | 0.11 | (0.36) | (0.25) | (0.12) | (0.07) | (0.19) |
| Year Ended 10/31/2019 | $7.37 | 0.27 | 0.42 | 0.69 | (0.26) | (0.02) | (0.28) |
| Year Ended 10/31/2018 | $7.72 | 0.28 | (0.31) | (0.03) | (0.28) | (0.04) | (0.32) |
| Year Ended 10/31/2017 | $7.94 | 0.30 | (0.17) | 0.13 | (0.30) | (0.05) | (0.35) |
| Year Ended 10/31/2016 | $7.90 | 0.31 | 0.08 | 0.39 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2015 | $7.99 | 0.32 | (0.05) | 0.27 | (0.32) | (0.04) | (0.36) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.80 | 0.11 | (0.37) | (0.26) | (0.12) | (0.07) | (0.19) |
| Year Ended 10/31/2019 | $7.39 | 0.25 | 0.45 | 0.70 | (0.27) | (0.02) | (0.29) |
| Year Ended 10/31/2018 | $7.73 | 0.29 | (0.30) | (0.01) | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2017 | $7.95 | 0.30 | (0.17) | 0.13 | (0.30) | (0.05) | (0.35) |
| Year Ended 10/31/2016(i) | $7.96 | 0.21 | (0.01)(j) | 0.20 | (0.21) | — | (0.21) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 22 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Proceeds from regulatory settlements | Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $7.34 | (3.45%) | 0.81%(c) | 0.79%(c) | 2.73%(c) | 16% | $324,985 |
| Year Ended 10/31/2019 | — | $7.78 | 9.31% | 0.82%(d) | 0.80%(d),(e) | 3.26% | 37% | $347,854 |
| Year Ended 10/31/2018 | — | $7.37 | (0.62%) | 0.82% | 0.82%(e) | 3.52% | 13% | $323,725 |
| Year Ended 10/31/2017 | — | $7.72 | 1.49% | 0.82%(f) | 0.81%(e),(f) | 3.61% | 17% | $339,354 |
| Year Ended 10/31/2016 | — | $7.94 | 4.78% | 0.87% | 0.81%(e) | 3.62% | 13% | $385,410 |
| Year Ended 10/31/2015 | 0.00(g) | $7.90 | 3.16%(h) | 0.88% | 0.79%(e) | 3.81% | 12% | $370,795 |
| Advisor Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $7.34 | (3.33%) | 0.55%(c) | 0.54%(c) | 2.95%(c) | 16% | $3,439 |
| Year Ended 10/31/2019 | — | $7.78 | 9.59% | 0.57%(d) | 0.54%(d),(e) | 3.37% | 37% | $6,206 |
| Year Ended 10/31/2018 | — | $7.37 | (0.38%) | 0.57% | 0.57%(e) | 3.76% | 13% | $1,363 |
| Year Ended 10/31/2017 | — | $7.72 | 1.75% | 0.57% | 0.56%(e) | 3.82% | 17% | $3,231 |
| Year Ended 10/31/2016 | — | $7.94 | 5.04% | 0.63% | 0.57%(e) | 3.87% | 13% | $1,021 |
| Year Ended 10/31/2015 | 0.00(g) | $7.90 | 3.42%(h) | 0.63% | 0.54%(e) | 4.05% | 12% | $120 |
| Class C | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $7.34 | (3.66%) | 1.56%(c) | 1.24%(c) | 2.28%(c) | 16% | $28,315 |
| Year Ended 10/31/2019 | — | $7.78 | 8.82% | 1.57%(d) | 1.25%(d),(e) | 2.82% | 37% | $31,410 |
| Year Ended 10/31/2018 | — | $7.37 | (1.07%) | 1.57% | 1.27%(e) | 3.07% | 13% | $35,145 |
| Year Ended 10/31/2017 | — | $7.72 | 1.03% | 1.57%(f) | 1.26%(e),(f) | 3.16% | 17% | $46,521 |
| Year Ended 10/31/2016 | — | $7.94 | 4.31% | 1.62% | 1.26%(e) | 3.16% | 13% | $54,502 |
| Year Ended 10/31/2015 | 0.00(g) | $7.90 | 2.70%(h) | 1.63% | 1.24%(e) | 3.36% | 12% | $43,775 |
| Institutional Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $7.34 | (3.33%) | 0.56%(c) | 0.54%(c) | 2.98%(c) | 16% | $194,229 |
| Year Ended 10/31/2019 | — | $7.78 | 9.58% | 0.57%(d) | 0.55%(d),(e) | 3.49% | 37% | $192,055 |
| Year Ended 10/31/2018 | — | $7.37 | (0.37%) | 0.57% | 0.57%(e) | 3.77% | 13% | $143,156 |
| Year Ended 10/31/2017 | — | $7.72 | 1.74% | 0.57%(f) | 0.56%(e),(f) | 3.86% | 17% | $120,839 |
| Year Ended 10/31/2016 | — | $7.94 | 5.04% | 0.62% | 0.56%(e) | 3.87% | 13% | $120,169 |
| Year Ended 10/31/2015 | 0.00(g) | $7.90 | 3.42%(h) | 0.63% | 0.54%(e) | 4.06% | 12% | $106,799 |
| Institutional 2 Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $7.35 | (3.44%) | 0.54%(c) | 0.52%(c) | 3.00%(c) | 16% | $3,398 |
| Year Ended 10/31/2019 | — | $7.80 | 9.59% | 0.56%(d) | 0.53%(d) | 3.29% | 37% | $3,302 |
| Year Ended 10/31/2018 | — | $7.39 | (0.21%) | 0.56% | 0.55% | 3.80% | 13% | $196 |
| Year Ended 10/31/2017 | — | $7.73 | 1.75% | 0.55%(f) | 0.53%(f) | 3.95% | 17% | $78 |
| Year Ended 10/31/2016(i) | — | $7.95 | 2.45% | 0.55%(c) | 0.52%(c) | 4.01%(c) | 13% | $1,349 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 23 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.82 | 0.12 | (0.37) | (0.25) | (0.12) | (0.07) | (0.19) |
| Year Ended 10/31/2019 | $7.41 | 0.27 | 0.43 | 0.70 | (0.27) | (0.02) | (0.29) |
| Year Ended 10/31/2018 | $7.76 | 0.29 | (0.31) | (0.02) | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2017(k) | $7.63 | 0.20 | 0.13(j) | 0.33 | (0.20) | — | (0.20) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | Ratios include interfund lending expense which is less than 0.01%. |
| (e) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (f) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Class C | Institutional Class | Institutional 2 Class |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% |
| (g) | Rounds to zero. |
| (h) | The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.06%. |
| (i) | Institutional 2 Class shares commenced operations on March 1, 2016. Per share data and total return reflect activity from that date. |
| (j) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (k) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 24 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Proceeds from regulatory settlements | Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $7.38 | (3.27%) | 0.49%(c) | 0.47%(c) | 3.05%(c) | 16% | $7,244 |
| Year Ended 10/31/2019 | — | $7.82 | 9.63% | 0.50%(d) | 0.48%(d) | 3.55% | 37% | $6,648 |
| Year Ended 10/31/2018 | — | $7.41 | (0.28%) | 0.50% | 0.50% | 3.85% | 13% | $3,905 |
| Year Ended 10/31/2017(k) | — | $7.76 | 4.34% | 0.52%(c) | 0.51%(c) | 3.93%(c) | 17% | $3,187 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 25 |
Notes to Financial Statements
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 1. Organization
Columbia Strategic California
Municipal Income Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the
Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 26 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities,
currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets),
for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks,
such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms
of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund
to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract;
therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin
that is held in a broker’s customer account. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time
there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s customers
(including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives contract counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and typically contains, among
other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty
certain derivative instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment
in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain
circumstances. Collateral terms are contract specific for over-the-counter derivatives. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by
netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount
of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully
collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 27 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
paid by the Fund is shown on the Statement of
Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial
stability of those counterparties.
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights
if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether
termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to
varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended April 30, 2020:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 33,834 |
| 28 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended April 30, 2020:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — short | 1,522,174 |
| * | Based on the ending daily outstanding amounts for the six months ended April 30, 2020. |
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 29 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2020 was 0.46% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| 30 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
For the six months ended April 30,
2020, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 53,292 |
| Class C | — | 1.00(b) | 4,535 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 31 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| March 1, 2020 through February 28, 2021 | Prior to March 1, 2020 | |
| Class A | 0.79% | 0.79% |
| Advisor Class | 0.54 | 0.54 |
| Class C | 1.54 | 1.54 |
| Institutional Class | 0.54 | 0.54 |
| Institutional 2 Class | 0.52 | 0.53 |
| Institutional 3 Class | 0.47 | 0.47 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2020, the approximate
cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 561,459,000 | 15,927,000 | (11,942,000) | 3,985,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $100,998,610 and $94,569,614, respectively, for the six months ended April 30, 2020. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
| 32 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 2020.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the six months ended April 30, 2020.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject
to the risk that the income generated by its investments may not keep pace with inflation.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 33 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies
and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks
may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global
events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The coronavirus disease 2019
(COVID-19) public health crisis has become a pandemic that has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions,
workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken
by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness
outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness
outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may
exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a
timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
The Investment Manager and its
affiliates have systematically implemented strategies to address the operating environment spurred by the COVID-19 pandemic. To promote the safety and security of its employees and to assure the continuity of its
business operations, the Investment Manager and its affiliates have implemented a work from home protocol for virtually all of its employee population, restricted business travel, and provided resources for complying
with the guidance from the World Health Organization, the U.S. Centers for Disease Control and governments. The Investment Manager’s operations teams seek to operate without significant disruptions in service.
Its pandemic strategy takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. The Fund cannot,
however, predict the impact that natural or man-made disasters, including the COVID-19 pandemic, may have on the ability of the Investment Manager, its employees and third-party service providers to continue ordinary
business operations and technology functions over near- or longer-term periods.
| 34 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2020, one unaffiliated
shareholder of record owned 21.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of
record owned 30.2% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case
of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid
positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued. Other than as noted below, there were no items requiring adjustment of the financial statements or additional
disclosure.
The Fund’s Board of Trustees
approved reverse stock splits of the issued and outstanding shares of the Fund (the Reverse Stock Split). This event does not affect the overall net assets of the class. The Reverse Stock Split is expected to occur in
the second half of 2020.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2020 | 35 |
Liquidity Risk
Management Program
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (“Program”). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity
risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the “Committee”). At
a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period December
1, 2018, through December 31, 2019, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 36 | | Semiannual Report 2020 |
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BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR123_10_K01_(06/20)
Columbia
Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
Columbia Intermediate Municipal
Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one report,
please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and Form N-PORT
filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Intermediate Municipal Bond
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks current income exempt from federal income tax, consistent with preservation of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2019 — April 30, 2020 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 970.70 | 1,021.13 | 3.67 | 3.77 | 0.75 |
| Advisor Class | 1,000.00 | 1,000.00 | 971.60 | 1,022.13 | 2.70 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 968.50 | 1,017.90 | 6.85 | 7.02 | 1.40 |
| Institutional Class | 1,000.00 | 1,000.00 | 971.70 | 1,022.13 | 2.70 | 2.77 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 971.90 | 1,022.48 | 2.35 | 2.41 | 0.48 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 972.30 | 1,022.73 | 2.11 | 2.16 | 0.43 |
| Class V | 1,000.00 | 1,000.00 | 970.90 | 1,021.38 | 3.43 | 3.52 | 0.70 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 11 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 13 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 15 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 17 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Notes to Portfolio of
Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 2020. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At April 30, 2020, the total value of these securities amounted to $15,003,267, which represents 1.34% of total net assets. |
| (e) | Zero coupon bond. |
| (f) | Represents a security purchased on a when-issued basis. |
| (g) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At April 30, 2020, the total value of these securities amounted to $86,806, which represents 0.01% of total net assets. |
| (h) | The rate shown is the seven-day current annualized yield at April 30, 2020. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Fair value measurements (continued)
pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Floating Rate Notes | — | 6,165,000 | — | 6,165,000 |
| Municipal Bonds | — | 1,104,709,305 | — | 1,104,709,305 |
| Money Market Funds | 2,686,478 | — | — | 2,686,478 |
| Total Investments in Securities | 2,686,478 | 1,110,874,305 | — | 1,113,560,783 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 19 |
Statement of Assets and Liabilities
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,078,501,796) | $1,113,560,783 |
| Receivable for: | |
| Investments sold | 241,463 |
| Capital shares sold | 1,269,157 |
| Interest | 13,730,545 |
| Expense reimbursement due from Investment Manager | 3,055 |
| Prepaid expenses | 1,646 |
| Trustees’ deferred compensation plan | 284,136 |
| Other assets | 33,030 |
| Total assets | 1,129,123,815 |
| Liabilities | |
| Due to custodian | 25,763 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 3,779,435 |
| Capital shares purchased | 741,563 |
| Distributions to shareholders | 2,747,428 |
| Management services fees | 14,529 |
| Distribution and/or service fees | 1,375 |
| Transfer agent fees | 116,799 |
| Compensation of board members | 272,640 |
| Compensation of chief compliance officer | 49 |
| Other expenses | 19,842 |
| Trustees’ deferred compensation plan | 284,136 |
| Total liabilities | 8,003,559 |
| Net assets applicable to outstanding capital stock | $1,121,120,256 |
| Represented by | |
| Paid in capital | 1,080,953,735 |
| Total distributable earnings (loss) | 40,166,521 |
| Total - representing net assets applicable to outstanding capital stock | $1,121,120,256 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 20 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Class A | |
| Net assets | $144,860,225 |
| Shares outstanding | 14,335,976 |
| Net asset value per share | $10.10 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.41 |
| Advisor Class | |
| Net assets | $5,709,009 |
| Shares outstanding | 565,319 |
| Net asset value per share | $10.10 |
| Class C | |
| Net assets | $23,369,849 |
| Shares outstanding | 2,312,414 |
| Net asset value per share | $10.11 |
| Institutional Class | |
| Net assets | $892,495,081 |
| Shares outstanding | 88,283,571 |
| Net asset value per share | $10.11 |
| Institutional 2 Class | |
| Net assets | $41,462,272 |
| Shares outstanding | 4,108,441 |
| Net asset value per share | $10.09 |
| Institutional 3 Class | |
| Net assets | $2,539,145 |
| Shares outstanding | 250,926 |
| Net asset value per share | $10.12 |
| Class V | |
| Net assets | $10,684,675 |
| Shares outstanding | 1,057,403 |
| Net asset value per share | $10.10 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.60 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 21 |
Statement of Operations
Six Months Ended April 30, 2020 (Unaudited)
Six Months Ended April 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $37,010 |
| Interest | 21,022,605 |
| Total income | 21,059,615 |
| Expenses: | |
| Management services fees | 2,854,661 |
| Distribution and/or service fees | |
| Class A | 151,331 |
| Class C | 101,444 |
| Class V | 8,587 |
| Transfer agent fees | |
| Class A | 95,290 |
| Advisor Class | 3,840 |
| Class C | 15,043 |
| Institutional Class | 610,170 |
| Institutional 2 Class | 12,714 |
| Institutional 3 Class | 165 |
| Class V | 7,208 |
| Compensation of board members | (35,406) |
| Custodian fees | 2,203 |
| Printing and postage fees | 12,027 |
| Registration fees | 59,029 |
| Audit fees | 14,659 |
| Legal fees | 13,453 |
| Compensation of chief compliance officer | 224 |
| Other | 15,204 |
| Total expenses | 3,941,846 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (399,903) |
| Total net expenses | 3,541,943 |
| Net investment income | 17,517,672 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 2,825,840 |
| Net realized gain | 2,825,840 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (53,967,849) |
| Net change in unrealized appreciation (depreciation) | (53,967,849) |
| Net realized and unrealized loss | (51,142,009) |
| Net decrease in net assets resulting from operations | $(33,624,337) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 22 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |
| Operations | ||
| Net investment income | $17,517,672 | $40,611,668 |
| Net realized gain | 2,825,840 | 4,904,348 |
| Net change in unrealized appreciation (depreciation) | (53,967,849) | 56,482,128 |
| Net increase (decrease) in net assets resulting from operations | (33,624,337) | 101,998,144 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (2,678,887) | (4,693,722) |
| Advisor Class | (114,693) | (351,686) |
| Class C | (341,085) | (625,926) |
| Institutional Class | (18,181,822) | (34,208,884) |
| Institutional 2 Class | (873,402) | (889,531) |
| Institutional 3 Class | (51,308) | (79,422) |
| Class T | — | (40) |
| Class V | (205,474) | (363,570) |
| Total distributions to shareholders | (22,446,671) | (41,212,781) |
| Decrease in net assets from capital stock activity | (67,001,573) | (286,383,429) |
| Total decrease in net assets | (123,072,581) | (225,598,066) |
| Net assets at beginning of period | 1,244,192,837 | 1,469,790,903 |
| Net assets at end of period | $1,121,120,256 | $1,244,192,837 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 23 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2020 (Unaudited) | October 31, 2019 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 1,084,611 | 11,370,717 | 1,851,275 | 19,214,102 |
| Distributions reinvested | 223,068 | 2,344,136 | 390,395 | 4,075,257 |
| Redemptions | (1,374,856) | (14,213,506) | (3,420,104) | (35,553,470) |
| Net decrease | (67,177) | (498,653) | (1,178,434) | (12,264,111) |
| Advisor Class | ||||
| Subscriptions | 65,578 | 692,943 | 282,020 | 2,873,794 |
| Distributions reinvested | 10,869 | 114,178 | 33,970 | 351,232 |
| Redemptions | (71,017) | (730,548) | (1,769,512) | (18,219,538) |
| Net increase (decrease) | 5,430 | 76,573 | (1,453,522) | (14,994,512) |
| Class C | ||||
| Subscriptions | 370,416 | 3,875,210 | 234,173 | 2,426,061 |
| Distributions reinvested | 26,792 | 281,633 | 49,533 | 516,386 |
| Redemptions | (304,908) | (3,192,119) | (940,107) | (9,780,101) |
| Net increase (decrease) | 92,300 | 964,724 | (656,401) | (6,837,654) |
| Institutional Class | ||||
| Subscriptions | 2,524,428 | 26,484,718 | 5,041,580 | 52,387,010 |
| Distributions reinvested | 281,938 | 2,964,583 | 463,688 | 4,844,138 |
| Redemptions | (10,033,162) | (104,474,153) | (31,841,094) | (327,841,315) |
| Net decrease | (7,226,796) | (75,024,852) | (26,335,826) | (270,610,167) |
| Institutional 2 Class | ||||
| Subscriptions | 1,408,238 | 14,828,802 | 2,322,152 | 24,023,898 |
| Distributions reinvested | 83,214 | 873,226 | 84,869 | 888,838 |
| Redemptions | (769,860) | (8,005,667) | (574,080) | (5,927,557) |
| Net increase | 721,592 | 7,696,361 | 1,832,941 | 18,985,179 |
| Institutional 3 Class | ||||
| Subscriptions | 44,754 | 472,726 | 161,835 | 1,672,363 |
| Distributions reinvested | 3,703 | 38,952 | 5,954 | 62,274 |
| Redemptions | (37,148) | (385,951) | (109,443) | (1,135,693) |
| Net increase | 11,309 | 125,727 | 58,346 | 598,944 |
| Class T | ||||
| Redemptions | — | — | (959) | (9,763) |
| Net decrease | — | — | (959) | (9,763) |
| Class V | ||||
| Subscriptions | 13,219 | 140,307 | 3,631 | 37,848 |
| Distributions reinvested | 14,559 | 153,012 | 25,535 | 266,493 |
| Redemptions | (61,865) | (634,772) | (149,920) | (1,555,686) |
| Net decrease | (34,087) | (341,453) | (120,754) | (1,251,345) |
| Total net decrease | (6,497,429) | (67,001,573) | (27,854,609) | (286,383,429) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 24 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
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| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 25 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.59 | 0.14 | (0.44) | (0.30) | (0.15) | (0.04) | (0.19) |
| Year Ended 10/31/2019 | $10.11 | 0.31 | 0.48 | 0.79 | (0.31) | (0.00)(d) | (0.31) |
| Year Ended 10/31/2018 | $10.54 | 0.31 | (0.43) | (0.12) | (0.31) | — | (0.31) |
| Year Ended 10/31/2017 | $10.71 | 0.31 | (0.17) | 0.14 | (0.31) | — | (0.31) |
| Year Ended 10/31/2016 | $10.68 | 0.32 | 0.03 | 0.35 | (0.32) | — | (0.32) |
| Year Ended 10/31/2015 | $10.81 | 0.34 | (0.13) | 0.21 | (0.34) | — | (0.34) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.59 | 0.15 | (0.44) | (0.29) | (0.16) | (0.04) | (0.20) |
| Year Ended 10/31/2019 | $10.11 | 0.33 | 0.48 | 0.81 | (0.33) | (0.00)(d) | (0.33) |
| Year Ended 10/31/2018 | $10.53 | 0.33 | (0.42) | (0.09) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.71 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Year Ended 10/31/2016 | $10.67 | 0.34 | 0.04 | 0.38 | (0.34) | — | (0.34) |
| Year Ended 10/31/2015 | $10.81 | 0.36 | (0.14) | 0.22 | (0.36) | — | (0.36) |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.59 | 0.11 | (0.44) | (0.33) | (0.11) | (0.04) | (0.15) |
| Year Ended 10/31/2019 | $10.12 | 0.24 | 0.48 | 0.72 | (0.25) | (0.00)(d) | (0.25) |
| Year Ended 10/31/2018 | $10.54 | 0.24 | (0.42) | (0.18) | (0.24) | — | (0.24) |
| Year Ended 10/31/2017 | $10.72 | 0.25 | (0.19) | 0.06 | (0.24) | — | (0.24) |
| Year Ended 10/31/2016 | $10.68 | 0.25 | 0.04 | 0.29 | (0.25) | — | (0.25) |
| Year Ended 10/31/2015 | $10.82 | 0.27 | (0.14) | 0.13 | (0.27) | — | (0.27) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.60 | 0.15 | (0.44) | (0.29) | (0.16) | (0.04) | (0.20) |
| Year Ended 10/31/2019 | $10.12 | 0.33 | 0.48 | 0.81 | (0.33) | (0.00)(d) | (0.33) |
| Year Ended 10/31/2018 | $10.54 | 0.33 | (0.42) | (0.09) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.72 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Year Ended 10/31/2016 | $10.69 | 0.34 | 0.03 | 0.37 | (0.34) | — | (0.34) |
| Year Ended 10/31/2015 | $10.82 | 0.36 | (0.13) | 0.23 | (0.36) | — | (0.36) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.58 | 0.16 | (0.45) | (0.29) | (0.16) | (0.04) | (0.20) |
| Year Ended 10/31/2019 | $10.10 | 0.34 | 0.48 | 0.82 | (0.34) | (0.00)(d) | (0.34) |
| Year Ended 10/31/2018 | $10.53 | 0.34 | (0.44) | (0.10) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.70 | 0.34 | (0.17) | 0.17 | (0.34) | — | (0.34) |
| Year Ended 10/31/2016 | $10.66 | 0.35 | 0.04 | 0.39 | (0.35) | — | (0.35) |
| Year Ended 10/31/2015 | $10.80 | 0.37 | (0.14) | 0.23 | (0.37) | — | (0.37) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 26 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Proceeds from regulatory settlements | Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.10 | (2.93%) | 0.81%(c) | 0.75%(c) | 2.74%(c) | 5% | $144,860 |
| Year Ended 10/31/2019 | — | $10.59 | 7.94% | 0.82%(e) | 0.76%(e),(f) | 2.97% | 14% | $152,575 |
| Year Ended 10/31/2018 | — | $10.11 | (1.18%) | 0.81%(g) | 0.76%(f),(g) | 2.98% | 8% | $157,597 |
| Year Ended 10/31/2017 | — | $10.54 | 1.39% | 0.84%(h) | 0.77%(f),(h) | 2.99% | 11% | $189,260 |
| Year Ended 10/31/2016 | — | $10.71 | 3.28% | 0.86% | 0.77%(f) | 2.95% | 6% | $246,873 |
| Year Ended 10/31/2015 | 0.00(d) | $10.68 | 2.00%(i) | 0.87% | 0.75%(f) | 3.19% | 15% | $233,125 |
| Advisor Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.10 | (2.84%) | 0.61%(c) | 0.55%(c) | 2.94%(c) | 5% | $5,709 |
| Year Ended 10/31/2019 | — | $10.59 | 8.15% | 0.62%(e) | 0.56%(e),(f) | 3.22% | 14% | $5,927 |
| Year Ended 10/31/2018 | — | $10.11 | (0.89%) | 0.61%(g) | 0.56%(f),(g) | 3.18% | 8% | $20,349 |
| Year Ended 10/31/2017 | — | $10.53 | 1.50% | 0.63% | 0.58%(f) | 3.16% | 11% | $17,306 |
| Year Ended 10/31/2016 | — | $10.71 | 3.58% | 0.66% | 0.57%(f) | 3.15% | 6% | $8,325 |
| Year Ended 10/31/2015 | 0.00(d) | $10.67 | 2.11%(i) | 0.67% | 0.55%(f) | 3.42% | 15% | $2,975 |
| Class C | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.11 | (3.15%) | 1.46%(c) | 1.40%(c) | 2.09%(c) | 5% | $23,370 |
| Year Ended 10/31/2019 | — | $10.59 | 7.14% | 1.47%(e) | 1.41%(e),(f) | 2.33% | 14% | $23,522 |
| Year Ended 10/31/2018 | — | $10.12 | (1.72%) | 1.46%(g) | 1.41%(f),(g) | 2.32% | 8% | $29,097 |
| Year Ended 10/31/2017 | — | $10.54 | 0.64% | 1.49%(h) | 1.42%(f),(h) | 2.34% | 11% | $44,951 |
| Year Ended 10/31/2016 | — | $10.72 | 2.70% | 1.51% | 1.42%(f) | 2.29% | 6% | $59,746 |
| Year Ended 10/31/2015 | 0.00(d) | $10.68 | 1.24%(i) | 1.52% | 1.40%(f) | 2.54% | 15% | $53,774 |
| Institutional Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.11 | (2.83%) | 0.61%(c) | 0.55%(c) | 2.94%(c) | 5% | $892,495 |
| Year Ended 10/31/2019 | — | $10.60 | 8.15% | 0.62%(e) | 0.56%(e),(f) | 3.17% | 14% | $1,012,229 |
| Year Ended 10/31/2018 | — | $10.12 | (0.88%) | 0.61%(g) | 0.56%(f),(g) | 3.17% | 8% | $1,232,944 |
| Year Ended 10/31/2017 | — | $10.54 | 1.50% | 0.63%(h) | 0.57%(f),(h) | 3.18% | 11% | $1,679,211 |
| Year Ended 10/31/2016 | — | $10.72 | 3.48% | 0.66% | 0.57%(f) | 3.15% | 6% | $2,087,345 |
| Year Ended 10/31/2015 | 0.00(d) | $10.69 | 2.20%(i) | 0.67% | 0.55%(f) | 3.39% | 15% | $1,846,198 |
| Institutional 2 Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.09 | (2.81%) | 0.54%(c) | 0.48%(c) | 3.02%(c) | 5% | $41,462 |
| Year Ended 10/31/2019 | — | $10.58 | 8.24% | 0.55%(e) | 0.49%(e) | 3.21% | 14% | $35,836 |
| Year Ended 10/31/2018 | — | $10.10 | (0.92%) | 0.55%(g) | 0.50%(g) | 3.25% | 8% | $15,697 |
| Year Ended 10/31/2017 | — | $10.53 | 1.67% | 0.54%(h) | 0.50%(h) | 3.26% | 11% | $12,401 |
| Year Ended 10/31/2016 | — | $10.70 | 3.68% | 0.53% | 0.48% | 3.23% | 6% | $8,895 |
| Year Ended 10/31/2015 | 0.00(d) | $10.66 | 2.20%(i) | 0.53% | 0.45% | 3.50% | 15% | $5,106 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 27 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.61 | 0.16 | (0.45) | (0.29) | (0.16) | (0.04) | (0.20) |
| Year Ended 10/31/2019 | $10.13 | 0.34 | 0.49 | 0.83 | (0.35) | (0.00)(d) | (0.35) |
| Year Ended 10/31/2018 | $10.55 | 0.34 | (0.42) | (0.08) | (0.34) | — | (0.34) |
| Year Ended 10/31/2017(j) | $10.43 | 0.22 | 0.13(k) | 0.35 | (0.23) | — | (0.23) |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.59 | 0.15 | (0.45) | (0.30) | (0.15) | (0.04) | (0.19) |
| Year Ended 10/31/2019 | $10.11 | 0.32 | 0.48 | 0.80 | (0.32) | (0.00)(d) | (0.32) |
| Year Ended 10/31/2018 | $10.54 | 0.31 | (0.43) | (0.12) | (0.31) | — | (0.31) |
| Year Ended 10/31/2017 | $10.71 | 0.32 | (0.17) | 0.15 | (0.32) | — | (0.32) |
| Year Ended 10/31/2016 | $10.68 | 0.33 | 0.02 | 0.35 | (0.32) | — | (0.32) |
| Year Ended 10/31/2015 | $10.81 | 0.35 | (0.13) | 0.22 | (0.35) | — | (0.35) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | Rounds to zero. |
| (e) | Ratios include line of credit interest expense which is less than 0.01%. |
| (f) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (g) | Ratios include interfund lending expense which is less than 0.01%. |
| (h) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Class C | Institutional Class | Institutional 2 Class | Class V |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (i) | The Fund received proceeds from regulatory settlements. Had the Fund not received these proceeds, the total return would have been lower by 0.02%. |
| (j) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (k) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 28 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Proceeds from regulatory settlements | Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.12 | (2.77%) | 0.50%(c) | 0.43%(c) | 3.06%(c) | 5% | $2,539 |
| Year Ended 10/31/2019 | — | $10.61 | 8.27% | 0.51%(e) | 0.44%(e) | 3.28% | 14% | $2,542 |
| Year Ended 10/31/2018 | — | $10.13 | (0.76%) | 0.50%(g) | 0.45%(g) | 3.31% | 8% | $1,836 |
| Year Ended 10/31/2017(j) | — | $10.55 | 3.35% | 0.51%(c) | 0.47%(c) | 3.25%(c) | 11% | $1,865 |
| Class V | ||||||||
| Six Months Ended 4/30/2020 (Unaudited) | — | $10.10 | (2.91%) | 0.76%(c) | 0.70%(c) | 2.79%(c) | 5% | $10,685 |
| Year Ended 10/31/2019 | — | $10.59 | 7.99% | 0.77%(e) | 0.71%(e),(f) | 3.02% | 14% | $11,562 |
| Year Ended 10/31/2018 | — | $10.11 | (1.13%) | 0.76%(g) | 0.71%(f),(g) | 3.03% | 8% | $12,260 |
| Year Ended 10/31/2017 | — | $10.54 | 1.44% | 0.79%(h) | 0.72%(f),(h) | 3.03% | 11% | $13,371 |
| Year Ended 10/31/2016 | — | $10.71 | 3.33% | 0.81% | 0.72%(f) | 3.00% | 6% | $14,060 |
| Year Ended 10/31/2015 | 0.00(d) | $10.68 | 2.05%(i) | 0.82% | 0.70%(f) | 3.24% | 15% | $14,263 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 29 |
Notes to Financial Statements
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 1. Organization
Columbia Intermediate Municipal
Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 30 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 31 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.48% to 0.29% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2020 was 0.47% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
As a result of a fund merger, the
Fund assumed the liabilities of a prior Deferred Compensation Plan of the acquired fund’s Board of Trustees, which are included in "Compensation of board members" on the Statement of Assets and Liabilities.
Deferred amounts of the prior Deferred Compensation Plan are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. The Fund’s liability for
these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Compensation Plan. The expense for the Deferred Compensation Plan, which includes any gains
or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
| 32 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended April 30,
2020, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.13 |
| Advisor Class | 0.13 |
| Class C | 0.13 |
| Institutional Class | 0.13 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class V | 0.13 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.20% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a
monthly distribution fee to the Distributor at the maximum annual rates of 0.65% of the average daily net assets attributable to Class C shares of the Fund.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 17,063 |
| Class C | — | 1.00(b) | 813 |
| Class V | 4.75 | 0.50 - 1.00(c) | 98 |
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 33 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| March 1, 2020 through February 28, 2021 | Prior to March 1, 2020 | |
| Class A | 0.73% | 0.76% |
| Advisor Class | 0.53 | 0.56 |
| Class C | 1.38 | 1.41 |
| Institutional Class | 0.53 | 0.56 |
| Institutional 2 Class | 0.46 | 0.49 |
| Institutional 3 Class | 0.41 | 0.44 |
| Class V | 0.68 | 0.71 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2020, the approximate
cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 1,078,502,000 | 50,941,000 | (15,882,000) | 35,059,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
| 34 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $59,994,725 and $134,537,716, respectively, for the six months ended April 30, 2020. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 2020.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the six months ended April 30, 2020.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 35 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
affect the value of debt securities held by the
Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in
interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies
and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks
may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global
events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The coronavirus disease 2019
(COVID-19) public health crisis has become a pandemic that has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions,
workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken
by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness
outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness
outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may
exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a
timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
The Investment Manager and its
affiliates have systematically implemented strategies to address the operating environment spurred by the COVID-19 pandemic. To promote the safety and security of its employees and to assure the continuity of its
business operations, the Investment Manager and its affiliates have implemented a work from home protocol for virtually all of its employee population, restricted business travel, and provided resources for complying
with the guidance from the World Health Organization, the U.S. Centers for Disease Control and governments. The Investment Manager’s operations teams seek to operate without significant disruptions in service.
Its pandemic strategy takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. The Fund cannot,
however, predict the impact that natural or man-made disasters, including the COVID-19 pandemic, may have on the ability of the Investment Manager, its employees and third-party service providers to continue ordinary
business operations and technology functions over near- or longer-term periods.
| 36 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Municipal securities risk
Securities issued by a particular
state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political
changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At April 30, 2020, one unaffiliated
shareholder of record owned 66.3% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption
activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid
positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for
non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 | 37 |
Liquidity Risk
Management Program
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (“Program”). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity
risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the “Committee”). At
a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period December
1, 2018, through December 31, 2019, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 38 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2020 |
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR167_10_K01_(06/20)
Columbia
Massachusetts Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
Columbia Massachusetts Intermediate
Municipal Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and Form N-PORT
filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Massachusetts Intermediate Municipal Bond
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Massachusetts individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2020) | |
| AAA rating | 4.4 |
| AA rating | 52.5 |
| A rating | 22.8 |
| BBB rating | 17.6 |
| BB rating | 1.8 |
| Not rated | 0.9 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2019 — April 30, 2020 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 979.20 | 1,020.89 | 3.94 | 4.02 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 980.40 | 1,022.13 | 2.71 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 977.00 | 1,018.65 | 6.14 | 6.27 | 1.25 |
| Institutional Class | 1,000.00 | 1,000.00 | 980.50 | 1,022.13 | 2.71 | 2.77 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 980.70 | 1,022.43 | 2.41 | 2.46 | 0.49 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 981.10 | 1,022.68 | 2.17 | 2.21 | 0.44 |
| Class V | 1,000.00 | 1,000.00 | 979.70 | 1,021.38 | 3.45 | 3.52 | 0.70 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Notes to Portfolio of
Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 2020. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Zero coupon bond. |
| (e) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2020, the total value of these securities amounted to $1,176,179, which represents 0.53% of total net assets. |
| (f) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At April 30, 2020, the total value of these securities amounted to $2,719,635, which represents 1.22% of total net assets. |
| (g) | The rate shown is the seven-day current annualized yield at April 30, 2020. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| NPFGC | National Public Finance Guarantee Corporation |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Abbreviation Legend (continued)
| TCRS | Transferable Custody Receipts |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Floating Rate Notes | — | 100,000 | — | 100,000 |
| Municipal Bonds | — | 215,683,353 | — | 215,683,353 |
| Money Market Funds | 5,225,196 | — | — | 5,225,196 |
| Total Investments in Securities | 5,225,196 | 215,783,353 | — | 221,008,549 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 11 |
Statement of Assets and Liabilities
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $215,230,703) | $221,008,549 |
| Receivable for: | |
| Capital shares sold | 109,121 |
| Interest | 2,366,137 |
| Expense reimbursement due from Investment Manager | 617 |
| Prepaid expenses | 286 |
| Trustees’ deferred compensation plan | 74,132 |
| Other assets | 4,265 |
| Total assets | 223,563,107 |
| Liabilities | |
| Due to custodian | 12,032 |
| Payable for: | |
| Capital shares purchased | 223,574 |
| Distributions to shareholders | 456,737 |
| Management services fees | 2,862 |
| Distribution and/or service fees | 277 |
| Transfer agent fees | 23,156 |
| Compensation of board members | 608 |
| Compensation of chief compliance officer | 6 |
| Other expenses | 15,252 |
| Trustees’ deferred compensation plan | 74,132 |
| Total liabilities | 808,636 |
| Net assets applicable to outstanding capital stock | $222,754,471 |
| Represented by | |
| Paid in capital | 216,742,378 |
| Total distributable earnings (loss) | 6,012,093 |
| Total - representing net assets applicable to outstanding capital stock | $222,754,471 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Class A | |
| Net assets | $25,662,807 |
| Shares outstanding | 2,492,239 |
| Net asset value per share | $10.30 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.62 |
| Advisor Class | |
| Net assets | $3,446,623 |
| Shares outstanding | 334,975 |
| Net asset value per share | $10.29 |
| Class C | |
| Net assets | $2,776,310 |
| Shares outstanding | 269,712 |
| Net asset value per share | $10.29 |
| Institutional Class | |
| Net assets | $178,668,190 |
| Shares outstanding | 17,350,587 |
| Net asset value per share | $10.30 |
| Institutional 2 Class | |
| Net assets | $92,606 |
| Shares outstanding | 8,979 |
| Net asset value per share | $10.31 |
| Institutional 3 Class | |
| Net assets | $160,894 |
| Shares outstanding | 15,549 |
| Net asset value per share | $10.35 |
| Class V | |
| Net assets | $11,947,041 |
| Shares outstanding | 1,160,224 |
| Net asset value per share | $10.30 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.81 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 13 |
Statement of Operations
Six Months Ended April 30, 2020 (Unaudited)
Six Months Ended April 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $33,906 |
| Interest | 3,610,502 |
| Total income | 3,644,408 |
| Expenses: | |
| Management services fees | 534,861 |
| Distribution and/or service fees | |
| Class A | 32,518 |
| Class C | 15,592 |
| Class V | 9,356 |
| Transfer agent fees | |
| Class A | 16,970 |
| Advisor Class | 2,099 |
| Class C | 2,033 |
| Institutional Class | 118,914 |
| Institutional 2 Class | 130 |
| Institutional 3 Class | 15 |
| Class V | 8,137 |
| Compensation of board members | 8,245 |
| Custodian fees | 943 |
| Printing and postage fees | 5,998 |
| Registration fees | 13,106 |
| Audit fees | 14,660 |
| Legal fees | 2,471 |
| Compensation of chief compliance officer | 40 |
| Other | 6,949 |
| Total expenses | 793,037 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (107,583) |
| Fees waived by distributor | |
| Class C | (4,675) |
| Total net expenses | 680,779 |
| Net investment income | 2,963,629 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 170,520 |
| Net realized gain | 170,520 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (7,782,739) |
| Net change in unrealized appreciation (depreciation) | (7,782,739) |
| Net realized and unrealized loss | (7,612,219) |
| Net decrease in net assets resulting from operations | $(4,648,590) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |
| Operations | ||
| Net investment income | $2,963,629 | $6,373,698 |
| Net realized gain | 170,520 | 135,560 |
| Net change in unrealized appreciation (depreciation) | (7,782,739) | 10,274,380 |
| Net increase (decrease) in net assets resulting from operations | (4,648,590) | 16,783,638 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (325,025) | (605,638) |
| Advisor Class | (44,214) | (94,143) |
| Class C | (32,249) | (124,550) |
| Institutional Class | (2,505,363) | (5,585,067) |
| Institutional 2 Class | (5,245) | (7,633) |
| Institutional 3 Class | (2,103) | (3,827) |
| Class V | (162,629) | (486,871) |
| Total distributions to shareholders | (3,076,828) | (6,907,729) |
| Increase in net assets from capital stock activity | 8,811,344 | 2,136,522 |
| Total increase in net assets | 1,085,926 | 12,012,431 |
| Net assets at beginning of period | 221,668,545 | 209,656,114 |
| Net assets at end of period | $222,754,471 | $221,668,545 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 15 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2020 (Unaudited) | October 31, 2019 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 337,217 | 3,593,256 | 718,754 | 7,578,798 |
| Distributions reinvested | 28,593 | 303,480 | 53,157 | 556,718 |
| Redemptions | (125,026) | (1,334,712) | (393,920) | (4,102,662) |
| Net increase | 240,784 | 2,562,024 | 377,991 | 4,032,854 |
| Advisor Class | ||||
| Subscriptions | 55,347 | 576,255 | 95,742 | 995,390 |
| Distributions reinvested | 4,159 | 44,080 | 8,966 | 93,827 |
| Redemptions | (24,216) | (242,802) | (57,794) | (600,647) |
| Net increase | 35,290 | 377,533 | 46,914 | 488,570 |
| Class C | ||||
| Subscriptions | 9,084 | 97,394 | 51,432 | 533,573 |
| Distributions reinvested | 2,703 | 28,696 | 10,287 | 107,255 |
| Redemptions | (68,350) | (728,458) | (304,166) | (3,186,747) |
| Net decrease | (56,563) | (602,368) | (242,447) | (2,545,919) |
| Institutional Class | ||||
| Subscriptions | 2,155,732 | 22,960,824 | 2,953,295 | 30,814,296 |
| Distributions reinvested | 16,250 | 172,488 | 37,995 | 397,613 |
| Redemptions | (1,509,655) | (15,903,262) | (2,660,096) | (27,672,739) |
| Net increase | 662,327 | 7,230,050 | 331,194 | 3,539,170 |
| Institutional 2 Class | ||||
| Subscriptions | 4,313 | 46,398 | 33,721 | 352,716 |
| Distributions reinvested | 478 | 5,095 | 689 | 7,317 |
| Redemptions | (34,078) | (361,218) | (145) | (1,538) |
| Net increase (decrease) | (29,287) | (309,725) | 34,265 | 358,495 |
| Institutional 3 Class | ||||
| Subscriptions | 3,459 | 37,117 | 1,073 | 11,497 |
| Distributions reinvested | 184 | 1,960 | 332 | 3,492 |
| Redemptions | (26) | (271) | (41) | (429) |
| Net increase | 3,617 | 38,806 | 1,364 | 14,560 |
| Class V | ||||
| Subscriptions | 3,385 | 35,932 | 30,690 | 320,390 |
| Distributions reinvested | 8,780 | 93,184 | 23,185 | 242,624 |
| Redemptions | (57,954) | (614,092) | (404,470) | (4,314,222) |
| Net decrease | (45,789) | (484,976) | (350,595) | (3,751,208) |
| Total net increase | 810,379 | 8,811,344 | 198,686 | 2,136,522 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
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| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 17 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.65 | 0.13 | (0.35) | (0.22) | (0.12) | (0.01) | (0.13) |
| Year Ended 10/31/2019 | $10.17 | 0.29 | 0.51 | 0.80 | (0.29) | (0.03) | (0.32) |
| Year Ended 10/31/2018 | $10.62 | 0.28 | (0.42) | (0.14) | (0.28) | (0.03) | (0.31) |
| Year Ended 10/31/2017 | $10.88 | 0.29 | (0.19) | 0.10 | (0.29) | (0.07) | (0.36) |
| Year Ended 10/31/2016 | $10.93 | 0.31 | (0.05) | 0.26 | (0.31) | (0.00)(f) | (0.31) |
| Year Ended 10/31/2015 | $11.01 | 0.32 | (0.08) | 0.24 | (0.32) | — | (0.32) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.64 | 0.14 | (0.34) | (0.20) | (0.14) | (0.01) | (0.15) |
| Year Ended 10/31/2019 | $10.16 | 0.31 | 0.51 | 0.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2018 | $10.61 | 0.31 | (0.43) | (0.12) | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2017 | $10.87 | 0.32 | (0.20) | 0.12 | (0.31) | (0.07) | (0.38) |
| Year Ended 10/31/2016 | $10.92 | 0.33 | (0.05) | 0.28 | (0.33) | (0.00)(f) | (0.33) |
| Year Ended 10/31/2015 | $11.01 | 0.35 | (0.09) | 0.26 | (0.35) | — | (0.35) |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.64 | 0.10 | (0.34) | (0.24) | (0.10) | (0.01) | (0.11) |
| Year Ended 10/31/2019 | $10.16 | 0.24 | 0.51 | 0.75 | (0.24) | (0.03) | (0.27) |
| Year Ended 10/31/2018 | $10.62 | 0.24 | (0.44) | (0.20) | (0.23) | (0.03) | (0.26) |
| Year Ended 10/31/2017 | $10.88 | 0.24 | (0.19) | 0.05 | (0.24) | (0.07) | (0.31) |
| Year Ended 10/31/2016 | $10.93 | 0.26 | (0.05) | 0.21 | (0.26) | (0.00)(f) | (0.26) |
| Year Ended 10/31/2015 | $11.01 | 0.27 | (0.08) | 0.19 | (0.27) | — | (0.27) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.65 | 0.14 | (0.34) | (0.20) | (0.14) | (0.01) | (0.15) |
| Year Ended 10/31/2019 | $10.17 | 0.31 | 0.51 | 0.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2018 | $10.62 | 0.31 | (0.43) | (0.12) | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2017 | $10.88 | 0.32 | (0.20) | 0.12 | (0.31) | (0.07) | (0.38) |
| Year Ended 10/31/2016 | $10.93 | 0.33 | (0.05) | 0.28 | (0.33) | (0.00)(f) | (0.33) |
| Year Ended 10/31/2015 | $11.02 | 0.35 | (0.09) | 0.26 | (0.35) | — | (0.35) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.66 | 0.14 | (0.34) | (0.20) | (0.14) | (0.01) | (0.15) |
| Year Ended 10/31/2019 | $10.18 | 0.32 | 0.51 | 0.83 | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2018 | $10.64 | 0.31 | (0.43) | (0.12) | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2017 | $10.90 | 0.32 | (0.19) | 0.13 | (0.32) | (0.07) | (0.39) |
| Year Ended 10/31/2016(g) | $11.03 | 0.23 | (0.13) | 0.10 | (0.23) | — | (0.23) |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.70 | 0.15 | (0.35) | (0.20) | (0.14) | (0.01) | (0.15) |
| Year Ended 10/31/2019 | $10.22 | 0.33 | 0.50 | 0.83 | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2018 | $10.67 | 0.32 | (0.42) | (0.10) | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2017(h) | $10.56 | 0.22 | 0.11(i) | 0.33 | (0.22) | — | (0.22) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.30 | (2.08%) | 0.90%(c) | 0.80%(c) | 2.40%(c) | 9% | $25,663 |
| Year Ended 10/31/2019 | $10.65 | 7.92% | 0.90% | 0.80%(d) | 2.75% | 15% | $23,968 |
| Year Ended 10/31/2018 | $10.17 | (1.36%) | 0.90% | 0.81%(d) | 2.72% | 13% | $19,046 |
| Year Ended 10/31/2017 | $10.62 | 0.95% | 0.90%(e) | 0.78%(d),(e) | 2.74% | 5% | $18,512 |
| Year Ended 10/31/2016 | $10.88 | 2.34% | 0.96% | 0.81%(d) | 2.77% | 16% | $27,398 |
| Year Ended 10/31/2015 | $10.93 | 2.21% | 0.97% | 0.81%(d) | 2.93% | 8% | $23,583 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.29 | (1.96%) | 0.65%(c) | 0.55%(c) | 2.65%(c) | 9% | $3,447 |
| Year Ended 10/31/2019 | $10.64 | 8.19% | 0.65% | 0.55%(d) | 3.00% | 15% | $3,188 |
| Year Ended 10/31/2018 | $10.16 | (1.12%) | 0.65% | 0.56%(d) | 2.97% | 13% | $2,568 |
| Year Ended 10/31/2017 | $10.61 | 1.20% | 0.66%(e) | 0.54%(d),(e) | 2.98% | 5% | $3,502 |
| Year Ended 10/31/2016 | $10.87 | 2.60% | 0.71% | 0.56%(d) | 3.02% | 16% | $3,804 |
| Year Ended 10/31/2015 | $10.92 | 2.38% | 0.72% | 0.56%(d) | 3.19% | 8% | $2,959 |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.29 | (2.30%) | 1.65%(c) | 1.25%(c) | 1.96%(c) | 9% | $2,776 |
| Year Ended 10/31/2019 | $10.64 | 7.44% | 1.65% | 1.25%(d) | 2.32% | 15% | $3,472 |
| Year Ended 10/31/2018 | $10.16 | (1.90%) | 1.65% | 1.26%(d) | 2.27% | 13% | $5,780 |
| Year Ended 10/31/2017 | $10.62 | 0.50% | 1.66%(e) | 1.24%(d),(e) | 2.29% | 5% | $7,470 |
| Year Ended 10/31/2016 | $10.88 | 1.88% | 1.71% | 1.26%(d) | 2.32% | 16% | $10,315 |
| Year Ended 10/31/2015 | $10.93 | 1.76% | 1.72% | 1.26%(d) | 2.48% | 8% | $9,790 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.30 | (1.95%) | 0.65%(c) | 0.55%(c) | 2.65%(c) | 9% | $178,668 |
| Year Ended 10/31/2019 | $10.65 | 8.19% | 0.65% | 0.55%(d) | 3.01% | 15% | $177,665 |
| Year Ended 10/31/2018 | $10.17 | (1.11%) | 0.65% | 0.56%(d) | 2.97% | 13% | $166,289 |
| Year Ended 10/31/2017 | $10.62 | 1.20% | 0.66%(e) | 0.54%(d),(e) | 2.98% | 5% | $199,199 |
| Year Ended 10/31/2016 | $10.88 | 2.60% | 0.71% | 0.56%(d) | 3.03% | 16% | $235,472 |
| Year Ended 10/31/2015 | $10.93 | 2.38% | 0.72% | 0.56%(d) | 3.18% | 8% | $235,129 |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.31 | (1.93%) | 0.58%(c) | 0.49%(c) | 2.71%(c) | 9% | $93 |
| Year Ended 10/31/2019 | $10.66 | 8.25% | 0.59% | 0.49% | 3.03% | 15% | $408 |
| Year Ended 10/31/2018 | $10.18 | (1.15%) | 0.57% | 0.50% | 3.01% | 13% | $41 |
| Year Ended 10/31/2017 | $10.64 | 1.28% | 0.56%(e) | 0.47%(e) | 3.05% | 5% | $10 |
| Year Ended 10/31/2016(g) | $10.90 | 0.86% | 0.59%(c) | 0.47%(c) | 3.07%(c) | 16% | $10 |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.35 | (1.89%) | 0.54%(c) | 0.44%(c) | 2.75%(c) | 9% | $161 |
| Year Ended 10/31/2019 | $10.70 | 8.28% | 0.54% | 0.44% | 3.12% | 15% | $128 |
| Year Ended 10/31/2018 | $10.22 | (0.99%) | 0.54% | 0.45% | 3.08% | 13% | $108 |
| Year Ended 10/31/2017(h) | $10.67 | 3.10% | 0.55%(c) | 0.45%(c) | 3.21%(c) | 5% | $110 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 19 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.65 | 0.13 | (0.34) | (0.21) | (0.13) | (0.01) | (0.14) |
| Year Ended 10/31/2019 | $10.17 | 0.30 | 0.51 | 0.81 | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2018 | $10.62 | 0.29 | (0.42) | (0.13) | (0.29) | (0.03) | (0.32) |
| Year Ended 10/31/2017 | $10.88 | 0.30 | (0.19) | 0.11 | (0.30) | (0.07) | (0.37) |
| Year Ended 10/31/2016 | $10.93 | 0.32 | (0.05) | 0.27 | (0.32) | (0.00)(f) | (0.32) |
| Year Ended 10/31/2015 | $11.02 | 0.33 | (0.09) | 0.24 | (0.33) | — | (0.33) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Institutional 2 Class | Class V |
| 10/31/2017 | 0.03% | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% |
| (f) | Rounds to zero. |
| (g) | Institutional 2 Class shares commenced operations on March 1, 2016. Per share data and total return reflect activity from that date. |
| (h) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (i) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.30 | (2.03%) | 0.80%(c) | 0.70%(c) | 2.51%(c) | 9% | $11,947 |
| Year Ended 10/31/2019 | $10.65 | 8.03% | 0.80% | 0.70%(d) | 2.86% | 15% | $12,839 |
| Year Ended 10/31/2018 | $10.17 | (1.26%) | 0.80% | 0.71%(d) | 2.82% | 13% | $15,825 |
| Year Ended 10/31/2017 | $10.62 | 1.05% | 0.81%(e) | 0.69%(d),(e) | 2.83% | 5% | $17,934 |
| Year Ended 10/31/2016 | $10.88 | 2.45% | 0.86% | 0.71%(d) | 2.88% | 16% | $18,697 |
| Year Ended 10/31/2015 | $10.93 | 2.22% | 0.87% | 0.71%(d) | 3.03% | 8% | $19,185 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 21 |
Notes to Financial Statements
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 1. Organization
Columbia Massachusetts
Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940
Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 22 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 23 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2020 was 0.47% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended April 30,
2020, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.13 |
| Advisor Class | 0.13 |
| Class C | 0.13 |
| Institutional Class | 0.13 |
| Institutional 2 Class | 0.07 |
| Institutional 3 Class | 0.02 |
| Class V | 0.13 |
| 24 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 1,597 |
| Class C | — | 1.00(b) | — |
| Class V | 4.75 | 0.50 - 1.00(c) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| March 1, 2020 through February 28, 2021 | Prior to March 1, 2020 | |
| Class A | 0.81% | 0.81% |
| Advisor Class | 0.56 | 0.56 |
| Class C | 1.56 | 1.56 |
| Institutional Class | 0.56 | 0.56 |
| Institutional 2 Class | 0.50 | 0.49 |
| Institutional 3 Class | 0.45 | 0.44 |
| Class V | 0.71 | 0.71 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have voluntarily agreed to waive fees and/or reimburse
Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share class) are waived proportionately across all
share classes, but the Fund’s net operating expenses shall not exceed the contractual annual rates listed in the table above. This arrangement may be revised or discontinued at any time. Any fees waived and/or
expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods. Class C distribution and service fees waived by the
Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2020, the approximate
cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 215,231,000 | 8,213,000 | (2,435,000) | 5,778,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
| 26 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $29,630,010 and $20,795,363, respectively, for the six months ended April 30, 2020. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 2020.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the six months ended April 30, 2020.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 27 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject
to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies
and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks
may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global
events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The coronavirus disease 2019
(COVID-19) public health crisis has become a pandemic that has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions,
workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken
by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness
outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness
outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may
exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a
timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
The Investment Manager and its
affiliates have systematically implemented strategies to address the operating environment spurred by the COVID-19 pandemic. To promote the safety and security of its employees and to assure the continuity of its
business operations, the Investment Manager and its affiliates have implemented a work from home protocol for virtually all of its employee population, restricted business travel, and provided resources for complying
with the guidance from the World Health Organization, the U.S. Centers for Disease Control and governments. The Investment Manager’s operations teams
| 28 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
seek to operate without significant disruptions in
service. Its pandemic strategy takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. The Fund
cannot, however, predict the impact that natural or man-made disasters, including the COVID-19 pandemic, may have on the ability of the Investment Manager, its employees and third-party service providers to continue
ordinary business operations and technology functions over near- or longer-term periods.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2020, one unaffiliated
shareholder of record owned 76.6% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption
activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid
positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for
non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 | 29 |
Liquidity Risk
Management Program
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (“Program”). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity
risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the “Committee”). At
a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period December
1, 2018, through December 31, 2019, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 30 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2020 |
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Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR191_10_K01_(06/20)
Columbia Strategic
New York Municipal Income Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
Columbia Strategic New York
Municipal Income Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and Form N-PORT
filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Strategic New York Municipal Income
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, with a focus on income exempt from federal income tax and New York individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2016
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2020) | |
| AAA rating | 2.1 |
| AA rating | 43.4 |
| A rating | 35.3 |
| BBB rating | 11.8 |
| BB rating | 0.8 |
| B rating | 0.9 |
| Not rated | 5.7 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2019 — April 30, 2020 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 955.50 | 1,020.89 | 3.89 | 4.02 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 956.60 | 1,022.13 | 2.68 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 952.00 | 1,018.65 | 6.07 | 6.27 | 1.25 |
| Institutional Class | 1,000.00 | 1,000.00 | 955.30 | 1,022.13 | 2.67 | 2.77 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 955.20 | 1,022.23 | 2.58 | 2.66 | 0.53 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 955.60 | 1,022.43 | 2.38 | 2.46 | 0.49 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 11 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Municipal Short Term 1.1% | ||||
| Issue Description | Effective Yield | Principal Amount ($) | Value ($) | |
| Transportation 1.1% | ||||
| Metropolitan Transportation Authority(e) | ||||
| Revenue Notes | ||||
| Series 2019B-2 | ||||
| 05/15/2020 | 4.000% | 2,000,000 | 1,996,429 | |
| Total Municipal Short Term (Cost $1,996,410) | 1,996,429 | |||
| Money Market Funds 0.6% | ||
| Shares | Value ($) | |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.180%(f) | 1,000,078 | 1,000,078 |
| Total Money Market Funds (Cost $1,000,078) | 1,000,078 | |
| Total Investments in Securities (Cost: $182,386,747) | 181,512,601 | |
| Other Assets & Liabilities, Net | (557,839) | |
| Net Assets | 180,954,762 | |
Notes to Portfolio of
Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At April 30, 2020, the total value of these securities amounted to $5,556,870, which represents 3.07% of total net assets. |
| (c) | Represents a security purchased on a when-issued basis. |
| (d) | Zero coupon bond. |
| (e) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (f) | The rate shown is the seven-day current annualized yield at April 30, 2020. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Fair value measurements (continued)
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 178,516,094 | — | 178,516,094 |
| Municipal Short Term | — | 1,996,429 | — | 1,996,429 |
| Money Market Funds | 1,000,078 | — | — | 1,000,078 |
| Total Investments in Securities | 1,000,078 | 180,512,523 | — | 181,512,601 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 13 |
Statement of Assets and Liabilities
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $182,386,747) | $181,512,601 |
| Cash | 1,911 |
| Receivable for: | |
| Investments sold | 2,262,125 |
| Capital shares sold | 411,427 |
| Interest | 2,481,221 |
| Expense reimbursement due from Investment Manager | 278 |
| Prepaid expenses | 248 |
| Trustees’ deferred compensation plan | 62,788 |
| Other assets | 126 |
| Total assets | 186,732,725 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 3,616,060 |
| Capital shares purchased | 1,643,481 |
| Distributions to shareholders | 422,285 |
| Management services fees | 2,350 |
| Distribution and/or service fees | 1,064 |
| Transfer agent fees | 12,408 |
| Compensation of board members | 650 |
| Compensation of chief compliance officer | 7 |
| Other expenses | 16,870 |
| Trustees’ deferred compensation plan | 62,788 |
| Total liabilities | 5,777,963 |
| Net assets applicable to outstanding capital stock | $180,954,762 |
| Represented by | |
| Paid in capital | 180,908,100 |
| Total distributable earnings (loss) | 46,662 |
| Total - representing net assets applicable to outstanding capital stock | $180,954,762 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Class A | |
| Net assets | $108,727,273 |
| Shares outstanding | 15,389,442 |
| Net asset value per share | $7.07 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $7.29 |
| Advisor Class | |
| Net assets | $5,087,996 |
| Shares outstanding | 721,190 |
| Net asset value per share | $7.06 |
| Class C | |
| Net assets | $16,831,333 |
| Shares outstanding | 2,383,329 |
| Net asset value per share | $7.06 |
| Institutional Class | |
| Net assets | $47,479,506 |
| Shares outstanding | 6,726,113 |
| Net asset value per share | $7.06 |
| Institutional 2 Class | |
| Net assets | $2,111,028 |
| Shares outstanding | 299,776 |
| Net asset value per share | $7.04 |
| Institutional 3 Class | |
| Net assets | $717,626 |
| Shares outstanding | 101,596 |
| Net asset value per share | $7.06 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 15 |
Statement of Operations
Six Months Ended April 30, 2020 (Unaudited)
Six Months Ended April 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $13,090 |
| Interest | 3,444,076 |
| Total income | 3,457,166 |
| Expenses: | |
| Management services fees | 469,482 |
| Distribution and/or service fees | |
| Class A | 144,575 |
| Class C | 95,071 |
| Transfer agent fees | |
| Class A | 46,772 |
| Advisor Class | 2,731 |
| Class C | 7,684 |
| Institutional Class | 21,789 |
| Institutional 2 Class | 1,098 |
| Institutional 3 Class | 59 |
| Compensation of board members | 8,099 |
| Custodian fees | 1,130 |
| Printing and postage fees | 7,988 |
| Registration fees | 5,447 |
| Audit fees | 14,659 |
| Legal fees | 2,219 |
| Compensation of chief compliance officer | 37 |
| Other | 6,367 |
| Total expenses | 835,207 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (47,808) |
| Fees waived by distributor | |
| Class C | (28,502) |
| Total net expenses | 758,897 |
| Net investment income | 2,698,269 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 704,664 |
| Futures contracts | 12,407 |
| Net realized gain | 717,071 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (12,664,061) |
| Net change in unrealized appreciation (depreciation) | (12,664,061) |
| Net realized and unrealized loss | (11,946,990) |
| Net decrease in net assets resulting from operations | $(9,248,721) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |
| Operations | ||
| Net investment income | $2,698,269 | $5,831,342 |
| Net realized gain | 717,071 | 1,972,547 |
| Net change in unrealized appreciation (depreciation) | (12,664,061) | 9,473,002 |
| Net increase (decrease) in net assets resulting from operations | (9,248,721) | 17,276,891 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (2,647,719) | (3,471,161) |
| Advisor Class | (159,648) | (170,492) |
| Class C | (398,676) | (511,479) |
| Institutional Class | (1,302,145) | (1,485,753) |
| Institutional 2 Class | (94,267) | (137,065) |
| Institutional 3 Class | (17,847) | (13,587) |
| Total distributions to shareholders | (4,620,302) | (5,789,537) |
| Decrease in net assets from capital stock activity | (6,094,383) | (3,691,252) |
| Total increase (decrease) in net assets | (19,963,406) | 7,796,102 |
| Net assets at beginning of period | 200,918,168 | 193,122,066 |
| Net assets at end of period | $180,954,762 | $200,918,168 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 17 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2020 (Unaudited) | October 31, 2019 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 957,161 | 7,195,658 | 1,527,367 | 11,248,892 |
| Distributions reinvested | 300,997 | 2,249,329 | 387,703 | 2,869,665 |
| Redemptions | (1,328,460) | (9,814,807) | (3,379,884) | (24,683,575) |
| Net decrease | (70,302) | (369,820) | (1,464,814) | (10,565,018) |
| Advisor Class | ||||
| Subscriptions | 242,222 | 1,794,513 | 324,669 | 2,394,757 |
| Distributions reinvested | 21,370 | 159,388 | 22,954 | 170,161 |
| Redemptions | (397,955) | (2,834,280) | (169,308) | (1,220,921) |
| Net increase (decrease) | (134,363) | (880,379) | 178,315 | 1,343,997 |
| Class C | ||||
| Subscriptions | 116,177 | 871,823 | 279,767 | 2,057,853 |
| Distributions reinvested | 39,683 | 296,646 | 53,047 | 392,243 |
| Redemptions | (374,353) | (2,764,447) | (694,322) | (5,090,282) |
| Net decrease | (218,493) | (1,595,978) | (361,508) | (2,640,186) |
| Institutional Class | ||||
| Subscriptions | 1,143,807 | 8,609,611 | 2,491,505 | 18,346,332 |
| Distributions reinvested | 121,203 | 906,362 | 138,004 | 1,022,144 |
| Redemptions | (1,510,495) | (11,048,357) | (1,424,939) | (10,373,641) |
| Net increase (decrease) | (245,485) | (1,532,384) | 1,204,570 | 8,994,835 |
| Institutional 2 Class | ||||
| Subscriptions | — | — | 167,446 | 1,215,560 |
| Distributions reinvested | 12,577 | 94,013 | 18,550 | 136,733 |
| Redemptions | (270,226) | (1,833,962) | (396,655) | (2,858,245) |
| Net decrease | (257,649) | (1,739,949) | (210,659) | (1,505,952) |
| Institutional 3 Class | ||||
| Subscriptions | 8,415 | 60,729 | 94,190 | 693,242 |
| Distributions reinvested | 2,355 | 17,599 | 1,765 | 13,255 |
| Redemptions | (7,053) | (54,201) | (3,361) | (25,425) |
| Net increase | 3,717 | 24,127 | 92,594 | 681,072 |
| Total net decrease | (922,575) | (6,094,383) | (561,502) | (3,691,252) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
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| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 19 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.57 | 0.10 | (0.43) | (0.33) | (0.10) | (0.07) | (0.17) |
| Year Ended 10/31/2019 | $7.13 | 0.22 | 0.44 | 0.66 | (0.22) | — | (0.22) |
| Year Ended 10/31/2018 | $7.45 | 0.23 | (0.30) | (0.07) | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2017 | $7.58 | 0.24 | (0.13) | 0.11 | (0.23) | (0.01) | (0.24) |
| Year Ended 10/31/2016 | $7.50 | 0.24 | 0.10 | 0.34 | (0.24) | (0.02) | (0.26) |
| Year Ended 10/31/2015 | $7.51 | 0.27 | (0.01) | 0.26 | (0.27) | — | (0.27) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.56 | 0.11 | (0.43) | (0.32) | (0.11) | (0.07) | (0.18) |
| Year Ended 10/31/2019 | $7.12 | 0.24 | 0.44 | 0.68 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $7.44 | 0.25 | (0.31) | (0.06) | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2017 | $7.57 | 0.26 | (0.13) | 0.13 | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2016 | $7.49 | 0.25 | 0.11 | 0.36 | (0.26) | (0.02) | (0.28) |
| Year Ended 10/31/2015 | $7.50 | 0.29 | (0.02) | 0.27 | (0.28) | — | (0.28) |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.57 | 0.08 | (0.44) | (0.36) | (0.08) | (0.07) | (0.15) |
| Year Ended 10/31/2019 | $7.12 | 0.19 | 0.45 | 0.64 | (0.19) | — | (0.19) |
| Year Ended 10/31/2018 | $7.45 | 0.20 | (0.32) | (0.12) | (0.20) | (0.01) | (0.21) |
| Year Ended 10/31/2017 | $7.58 | 0.20 | (0.12) | 0.08 | (0.20) | (0.01) | (0.21) |
| Year Ended 10/31/2016 | $7.50 | 0.21 | 0.09 | 0.30 | (0.20) | (0.02) | (0.22) |
| Year Ended 10/31/2015 | $7.51 | 0.24 | (0.02) | 0.22 | (0.23) | — | (0.23) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.57 | 0.11 | (0.44) | (0.33) | (0.11) | (0.07) | (0.18) |
| Year Ended 10/31/2019 | $7.12 | 0.24 | 0.45 | 0.69 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $7.45 | 0.25 | (0.32) | (0.07) | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2017 | $7.58 | 0.26 | (0.13) | 0.13 | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2016 | $7.50 | 0.26 | 0.10 | 0.36 | (0.26) | (0.02) | (0.28) |
| Year Ended 10/31/2015 | $7.51 | 0.29 | (0.02) | 0.27 | (0.28) | — | (0.28) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.07 | (4.45%) | 0.85%(c) | 0.80%(c) | 2.67%(c) | 13% | $108,727 |
| Year Ended 10/31/2019 | $7.57 | 9.37% | 0.85% | 0.80%(d) | 3.00% | 46% | $117,062 |
| Year Ended 10/31/2018 | $7.13 | (1.02%) | 0.85% | 0.80%(d) | 3.21% | 19% | $120,625 |
| Year Ended 10/31/2017 | $7.45 | 1.59% | 0.85% | 0.79%(d) | 3.21% | 7% | $134,602 |
| Year Ended 10/31/2016 | $7.58 | 4.53% | 0.91% | 0.80%(d) | 3.17% | 9% | $179,419 |
| Year Ended 10/31/2015 | $7.50 | 3.46% | 0.92% | 0.78%(d) | 3.60% | 11% | $147,143 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.06 | (4.34%) | 0.60%(c) | 0.55%(c) | 2.92%(c) | 13% | $5,088 |
| Year Ended 10/31/2019 | $7.56 | 9.66% | 0.60% | 0.55%(d) | 3.23% | 46% | $6,470 |
| Year Ended 10/31/2018 | $7.12 | (0.78%) | 0.60% | 0.55%(d) | 3.48% | 19% | $4,821 |
| Year Ended 10/31/2017 | $7.44 | 1.84% | 0.59% | 0.55%(d) | 3.46% | 7% | $2,518 |
| Year Ended 10/31/2016 | $7.57 | 4.80% | 0.66% | 0.56%(d) | 3.32% | 9% | $291 |
| Year Ended 10/31/2015 | $7.49 | 3.72% | 0.67% | 0.53%(d) | 3.86% | 11% | $41 |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.06 | (4.80%) | 1.60%(c) | 1.25%(c) | 2.21%(c) | 13% | $16,831 |
| Year Ended 10/31/2019 | $7.57 | 9.04% | 1.60% | 1.25%(d) | 2.56% | 46% | $19,693 |
| Year Ended 10/31/2018 | $7.12 | (1.60%) | 1.60% | 1.25%(d) | 2.76% | 19% | $21,111 |
| Year Ended 10/31/2017 | $7.45 | 1.13% | 1.60% | 1.24%(d) | 2.76% | 7% | $27,972 |
| Year Ended 10/31/2016 | $7.58 | 4.07% | 1.66% | 1.25%(d) | 2.69% | 9% | $30,350 |
| Year Ended 10/31/2015 | $7.50 | 3.00% | 1.67% | 1.23%(d) | 3.15% | 11% | $19,165 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.06 | (4.47%) | 0.60%(c) | 0.55%(c) | 2.91%(c) | 13% | $47,480 |
| Year Ended 10/31/2019 | $7.57 | 9.80% | 0.60% | 0.55%(d) | 3.24% | 46% | $52,745 |
| Year Ended 10/31/2018 | $7.12 | (0.91%) | 0.60% | 0.55%(d) | 3.46% | 19% | $41,072 |
| Year Ended 10/31/2017 | $7.45 | 1.84% | 0.60% | 0.55%(d) | 3.48% | 7% | $46,257 |
| Year Ended 10/31/2016 | $7.58 | 4.79% | 0.66% | 0.55%(d) | 3.40% | 9% | $25,827 |
| Year Ended 10/31/2015 | $7.50 | 3.72% | 0.67% | 0.53%(d) | 3.85% | 11% | $17,088 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 21 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.55 | 0.11 | (0.44) | (0.33) | (0.11) | (0.07) | (0.18) |
| Year Ended 10/31/2019 | $7.10 | 0.24 | 0.45 | 0.69 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $7.43 | 0.25 | (0.32) | (0.07) | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2017 | $7.55 | 0.26 | (0.12) | 0.14 | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2016 | $7.48 | 0.25 | 0.10 | 0.35 | (0.26) | (0.02) | (0.28) |
| Year Ended 10/31/2015 | $7.49 | 0.29 | (0.01) | 0.28 | (0.29) | — | (0.29) |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.57 | 0.11 | (0.44) | (0.33) | (0.11) | (0.07) | (0.18) |
| Year Ended 10/31/2019 | $7.13 | 0.24 | 0.44 | 0.68 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $7.45 | 0.26 | (0.31) | (0.05) | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2017(e) | $7.33 | 0.17 | 0.12(f) | 0.29 | (0.17) | — | (0.17) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (f) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 22 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.04 | (4.48%) | 0.57%(c) | 0.53%(c) | 2.90%(c) | 13% | $2,111 |
| Year Ended 10/31/2019 | $7.55 | 9.84% | 0.58% | 0.53% | 3.28% | 46% | $4,207 |
| Year Ended 10/31/2018 | $7.10 | (0.91%) | 0.58% | 0.54% | 3.46% | 19% | $5,457 |
| Year Ended 10/31/2017 | $7.43 | 1.98% | 0.59% | 0.54% | 3.46% | 7% | $6,497 |
| Year Ended 10/31/2016 | $7.55 | 4.71% | 0.60% | 0.51% | 3.33% | 9% | $390 |
| Year Ended 10/31/2015 | $7.48 | 3.76% | 0.58% | 0.49% | 3.89% | 11% | $10 |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $7.06 | (4.44%) | 0.53%(c) | 0.49%(c) | 2.98%(c) | 13% | $718 |
| Year Ended 10/31/2019 | $7.57 | 9.71% | 0.54% | 0.49% | 3.17% | 46% | $741 |
| Year Ended 10/31/2018 | $7.13 | (0.72%) | 0.54% | 0.50% | 3.49% | 19% | $38 |
| Year Ended 10/31/2017(e) | $7.45 | 4.00% | 0.54%(c) | 0.50%(c) | 3.62%(c) | 7% | $105 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 23 |
Notes to Financial Statements
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 1. Organization
Columbia Strategic New York
Municipal Income Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the
Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
| 24 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more securities,
currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to certain assets),
for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain investment risks,
such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its obligations under the terms
of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements which may expose the Fund
to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (CCP) provides some protection in the case of clearing member default. The clearinghouse or CCP stands between the buyer and the seller of the contract;
therefore, additional counterparty credit risk is failure of the clearinghouse or CCP. However, credit risk still exists in exchange-traded or centrally cleared derivatives with respect to initial and variation margin
that is held in a broker’s customer account. While brokers are required to segregate customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time
there is a shortfall in the aggregate amount of margin held by the broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the broker’s customers
(including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives contract counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and typically contains, among
other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty
certain derivative instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment
in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain
circumstances. Collateral terms are contract specific for over-the-counter derivatives. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by
netting the marked-to-market amount for each transaction under such agreement and comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount
of collateral due from or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully
collateralized, contractually or otherwise, the Fund bears the risk of loss from counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. Any interest expense
paid by the Fund is shown on the Statement of Operations. The Fund attempts to mitigate counterparty risk by only entering into agreements with counterparties that it believes have the financial resources to honor
their obligations and by monitoring the financial stability of those counterparties.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Certain ISDA Master Agreements
allow counterparties of over-the-counter derivatives transactions to terminate derivatives contracts prior to maturity in the event the Fund’s net asset value declines by a stated percentage over a specified
time period or if the Fund fails to meet certain terms of the ISDA Master Agreement, which would cause the Fund to accelerate payment of any net liability owed to the counterparty. The Fund also has termination rights
if the counterparty fails to meet certain terms of the ISDA Master Agreement. In determining whether to exercise such termination rights, the Fund would consider, in addition to counterparty credit risk, whether
termination would result in a net liability owed from the counterparty.
For financial reporting purposes,
the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund recognizes a realized gain or loss when the contract is closed or expires. Futures contracts involve, to
varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended April 30, 2020:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 12,407 |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended April 30, 2020:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — long | 14,922 |
| Futures contracts — short | 1,040,634 |
| * | Based on the ending daily outstanding amounts for the six months ended April 30, 2020. |
| 26 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 27 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2020 was 0.47% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended April 30,
2020, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.02 |
| 28 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 32,269 |
| Class C | — | —(b) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| Fee rate(s) contractual through February 28, 2021 | |
| Class A | 0.80% |
| Advisor Class | 0.55 |
| Class C | 1.55 |
| Institutional Class | 0.55 |
| Institutional 2 Class | 0.53 |
| Institutional 3 Class | 0.49 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 29 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
pooled investment vehicles (including mutual funds
and exchange-traded funds), transaction costs and brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and
expenses, transaction charges and interest on borrowed money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This
agreement may be modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements
described above are not recoverable by the Investment Manager or its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement
commitment under the agreement.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2020, the approximate
cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized (depreciation) ($) |
| 182,387,000 | 4,504,000 | (5,378,000) | (874,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $25,805,086 and $32,448,017, respectively, for the six months ended April 30, 2020. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 2020.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the
| 30 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
higher of (i) the federal funds effective rate,
(ii) the one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays
a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the six months ended April 30, 2020.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject
to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies
and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks
may be magnified if certain events or developments adversely interrupt the global supply chain;
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 31 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
in these and other circumstances, such risks might
affect companies worldwide. As a result, local, regional or global events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or
other events – or the potential for such events – could have a significant negative impact on global economic and market conditions.
The coronavirus disease 2019
(COVID-19) public health crisis has become a pandemic that has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions,
workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken
by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness
outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness
outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may
exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a
timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
The Investment Manager and its
affiliates have systematically implemented strategies to address the operating environment spurred by the COVID-19 pandemic. To promote the safety and security of its employees and to assure the continuity of its
business operations, the Investment Manager and its affiliates have implemented a work from home protocol for virtually all of its employee population, restricted business travel, and provided resources for complying
with the guidance from the World Health Organization, the U.S. Centers for Disease Control and governments. The Investment Manager’s operations teams seek to operate without significant disruptions in service.
Its pandemic strategy takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. The Fund cannot,
however, predict the impact that natural or man-made disasters, including the COVID-19 pandemic, may have on the ability of the Investment Manager, its employees and third-party service providers to continue ordinary
business operations and technology functions over near- or longer-term periods.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2020, one unaffiliated
shareholder of record owned 14.9% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of
record owned 25.6% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case
of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid
positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued. Other than as noted below, there were no items requiring adjustment of the financial statements or additional
disclosure.
| 32 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The Fund’s Board of Trustees
approved reverse stock splits of the issued and outstanding shares of the Fund (the Reverse Stock Split). This event does not affect the overall net assets of the class. The Reverse Stock Split is expected to occur in
the second half of 2020.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 | 33 |
Liquidity Risk
Management Program
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (“Program”). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity
risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the “Committee”). At
a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period December
1, 2018, through December 31, 2019, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 34 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2020 |
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR205_10_K01_(06/20)
Columbia New York
Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
Columbia New York Intermediate
Municipal Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and Form N-PORT
filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia New York Intermediate Municipal Bond
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from New York individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2012
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2020) | |
| AAA rating | 6.7 |
| AA rating | 36.3 |
| A rating | 46.8 |
| BBB rating | 6.4 |
| Not rated | 3.8 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2019 — April 30, 2020 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 972.50 | 1,021.13 | 3.68 | 3.77 | 0.75 |
| Advisor Class | 1,000.00 | 1,000.00 | 973.70 | 1,022.38 | 2.45 | 2.51 | 0.50 |
| Class C | 1,000.00 | 1,000.00 | 970.30 | 1,018.90 | 5.88 | 6.02 | 1.20 |
| Institutional Class | 1,000.00 | 1,000.00 | 973.70 | 1,022.38 | 2.45 | 2.51 | 0.50 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 974.10 | 1,022.73 | 2.11 | 2.16 | 0.43 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 973.60 | 1,022.92 | 1.91 | 1.96 | 0.39 |
| Class V | 1,000.00 | 1,000.00 | 973.00 | 1,021.63 | 3.19 | 3.27 | 0.65 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 11 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Notes to Portfolio of
Investments
| (a) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At April 30, 2020, the total value of these securities amounted to $1,514,327, which represents 0.69% of total net assets. |
| (b) | Represents a security purchased on a when-issued basis. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Zero coupon bond. |
| (e) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2020, the total value of these securities amounted to $388,412, which represents 0.18% of total net assets. |
| (f) | The rate shown is the seven-day current annualized yield at April 30, 2020. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input
that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For
example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active
market.
Fair value inputs are
summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Fair value measurements (continued)
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 211,740,214 | — | 211,740,214 |
| Money Market Funds | 6,949,675 | — | — | 6,949,675 |
| Total Investments in Securities | 6,949,675 | 211,740,214 | — | 218,689,889 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 13 |
Statement of Assets and Liabilities
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $215,196,780) | $218,689,889 |
| Receivable for: | |
| Investments sold | 266,500 |
| Capital shares sold | 188,659 |
| Interest | 2,819,284 |
| Expense reimbursement due from Investment Manager | 940 |
| Prepaid expenses | 291 |
| Trustees’ deferred compensation plan | 65,279 |
| Other assets | 3,029 |
| Total assets | 222,033,871 |
| Liabilities | |
| Due to custodian | 3,101 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,420,828 |
| Capital shares purchased | 456,612 |
| Distributions to shareholders | 425,180 |
| Management services fees | 2,825 |
| Distribution and/or service fees | 328 |
| Transfer agent fees | 25,130 |
| Compensation of board members | 622 |
| Compensation of chief compliance officer | 7 |
| Other expenses | 15,568 |
| Trustees’ deferred compensation plan | 65,279 |
| Total liabilities | 2,415,480 |
| Net assets applicable to outstanding capital stock | $219,618,391 |
| Represented by | |
| Paid in capital | 215,880,528 |
| Total distributable earnings (loss) | 3,737,863 |
| Total - representing net assets applicable to outstanding capital stock | $219,618,391 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Class A | |
| Net assets | $20,145,720 |
| Shares outstanding | 1,734,763 |
| Net asset value per share | $11.61 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $11.97 |
| Advisor Class | |
| Net assets | $3,075,434 |
| Shares outstanding | 265,228 |
| Net asset value per share | $11.60 |
| Class C | |
| Net assets | $8,741,166 |
| Shares outstanding | 752,632 |
| Net asset value per share | $11.61 |
| Institutional Class | |
| Net assets | $178,467,735 |
| Shares outstanding | 15,369,428 |
| Net asset value per share | $11.61 |
| Institutional 2 Class | |
| Net assets | $3,163,346 |
| Shares outstanding | 271,988 |
| Net asset value per share | $11.63 |
| Institutional 3 Class | |
| Net assets | $612,609 |
| Shares outstanding | 52,565 |
| Net asset value per share | $11.65 |
| Class V | |
| Net assets | $5,412,381 |
| Shares outstanding | 466,123 |
| Net asset value per share | $11.61 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $12.19 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 15 |
Statement of Operations
Six Months Ended April 30, 2020 (Unaudited)
Six Months Ended April 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $17,815 |
| Interest | 3,363,230 |
| Total income | 3,381,045 |
| Expenses: | |
| Management services fees | 542,999 |
| Distribution and/or service fees | |
| Class A | 24,402 |
| Class C | 46,757 |
| Class V | 4,222 |
| Transfer agent fees | |
| Class A | 12,709 |
| Advisor Class | 1,377 |
| Class C | 6,080 |
| Institutional Class | 123,533 |
| Institutional 2 Class | 1,118 |
| Institutional 3 Class | 67 |
| Class V | 3,661 |
| Compensation of board members | 8,308 |
| Custodian fees | 1,117 |
| Printing and postage fees | 6,192 |
| Registration fees | 7,005 |
| Audit fees | 14,659 |
| Legal fees | 2,556 |
| Compensation of chief compliance officer | 43 |
| Other | 5,554 |
| Total expenses | 812,359 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (163,375) |
| Fees waived by distributor | |
| Class C | (14,018) |
| Total net expenses | 634,966 |
| Net investment income | 2,746,079 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 49,524 |
| Net realized gain | 49,524 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (8,882,446) |
| Net change in unrealized appreciation (depreciation) | (8,882,446) |
| Net realized and unrealized loss | (8,832,922) |
| Net decrease in net assets resulting from operations | $(6,086,843) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |
| Operations | ||
| Net investment income | $2,746,079 | $5,756,899 |
| Net realized gain | 49,524 | 117,926 |
| Net change in unrealized appreciation (depreciation) | (8,882,446) | 10,719,015 |
| Net increase (decrease) in net assets resulting from operations | (6,086,843) | 16,593,840 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (215,917) | (418,858) |
| Advisor Class | (25,905) | (22,102) |
| Class C | (82,366) | (230,180) |
| Institutional Class | (2,337,905) | (4,825,185) |
| Institutional 2 Class | (47,574) | (93,377) |
| Institutional 3 Class | (8,558) | (14,351) |
| Class V | (65,051) | (152,846) |
| Total distributions to shareholders | (2,783,276) | (5,756,899) |
| Increase (decrease) in net assets from capital stock activity | (3,981,228) | 17,619,060 |
| Total increase (decrease) in net assets | (12,851,347) | 28,456,001 |
| Net assets at beginning of period | 232,469,738 | 204,013,737 |
| Net assets at end of period | $219,618,391 | $232,469,738 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 17 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2020 (Unaudited) | October 31, 2019 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 241,050 | 2,854,680 | 600,175 | 7,077,877 |
| Distributions reinvested | 14,237 | 171,344 | 27,505 | 327,603 |
| Redemptions | (116,627) | (1,397,560) | (197,870) | (2,335,727) |
| Net increase | 138,660 | 1,628,464 | 429,810 | 5,069,753 |
| Advisor Class | ||||
| Subscriptions | 184,797 | 2,212,702 | 91,879 | 1,086,222 |
| Distributions reinvested | 2,153 | 25,782 | 1,834 | 21,832 |
| Redemptions | (24,086) | (279,881) | (56,450) | (655,886) |
| Net increase | 162,864 | 1,958,603 | 37,263 | 452,168 |
| Class C | ||||
| Subscriptions | 34,372 | 413,542 | 62,129 | 737,099 |
| Distributions reinvested | 4,543 | 54,690 | 13,647 | 161,897 |
| Redemptions | (114,185) | (1,367,443) | (337,572) | (4,001,905) |
| Net decrease | (75,270) | (899,211) | (261,796) | (3,102,909) |
| Institutional Class | ||||
| Subscriptions | 1,125,519 | 13,535,849 | 3,989,833 | 47,292,715 |
| Distributions reinvested | 29,600 | 356,228 | 63,656 | 756,979 |
| Redemptions | (1,664,029) | (19,832,820) | (2,979,678) | (34,907,978) |
| Net increase (decrease) | (508,910) | (5,940,743) | 1,073,811 | 13,141,716 |
| Institutional 2 Class | ||||
| Subscriptions | 4,321 | 52,138 | 228,297 | 2,672,431 |
| Distributions reinvested | 3,933 | 47,450 | 7,793 | 93,105 |
| Redemptions | (60,081) | (712,547) | (40,504) | (479,767) |
| Net increase (decrease) | (51,827) | (612,959) | 195,586 | 2,285,769 |
| Institutional 3 Class | ||||
| Subscriptions | 4,321 | 50,323 | 51,818 | 613,997 |
| Distributions reinvested | 510 | 6,169 | 760 | 9,099 |
| Redemptions | (8,223) | (101,486) | (13,121) | (157,447) |
| Net increase (decrease) | (3,392) | (44,994) | 39,457 | 465,649 |
| Class V | ||||
| Subscriptions | 917 | 11,026 | 2,766 | 32,917 |
| Distributions reinvested | 3,308 | 39,812 | 7,786 | 92,550 |
| Redemptions | (9,976) | (121,226) | (68,927) | (818,553) |
| Net decrease | (5,751) | (70,388) | (58,375) | (693,086) |
| Total net increase (decrease) | (343,626) | (3,981,228) | 1,455,756 | 17,619,060 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
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| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 19 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.07 | 0.13 | (0.46) | (0.33) | (0.13) | (0.00)(c) | (0.13) |
| Year Ended 10/31/2019 | $11.46 | 0.29 | 0.61 | 0.90 | (0.29) | — | (0.29) |
| Year Ended 10/31/2018 | $11.91 | 0.31 | (0.44) | (0.13) | (0.31) | (0.01) | (0.32) |
| Year Ended 10/31/2017 | $12.09 | 0.32 | (0.18) | 0.14 | (0.32) | (0.00)(c) | (0.32) |
| Year Ended 10/31/2016 | $12.11 | 0.34 | (0.02) | 0.32 | (0.34) | — | (0.34) |
| Year Ended 10/31/2015 | $12.21 | 0.36 | (0.10) | 0.26 | (0.36) | — | (0.36) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.06 | 0.14 | (0.45) | (0.31) | (0.15) | (0.00)(c) | (0.15) |
| Year Ended 10/31/2019 | $11.45 | 0.32 | 0.61 | 0.93 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $11.90 | 0.34 | (0.44) | (0.10) | (0.34) | (0.01) | (0.35) |
| Year Ended 10/31/2017 | $12.08 | 0.35 | (0.18) | 0.17 | (0.35) | (0.00)(c) | (0.35) |
| Year Ended 10/31/2016 | $12.10 | 0.37 | (0.02) | 0.35 | (0.37) | — | (0.37) |
| Year Ended 10/31/2015 | $12.19 | 0.39 | (0.09) | 0.30 | (0.39) | — | (0.39) |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.07 | 0.10 | (0.45) | (0.35) | (0.11) | (0.00)(c) | (0.11) |
| Year Ended 10/31/2019 | $11.46 | 0.24 | 0.61 | 0.85 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $11.91 | 0.26 | (0.44) | (0.18) | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2017 | $12.09 | 0.27 | (0.18) | 0.09 | (0.27) | (0.00)(c) | (0.27) |
| Year Ended 10/31/2016 | $12.11 | 0.28 | (0.02) | 0.26 | (0.28) | — | (0.28) |
| Year Ended 10/31/2015 | $12.20 | 0.30 | (0.09) | 0.21 | (0.30) | — | (0.30) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.07 | 0.15 | (0.46) | (0.31) | (0.15) | (0.00)(c) | (0.15) |
| Year Ended 10/31/2019 | $11.46 | 0.32 | 0.61 | 0.93 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $11.91 | 0.34 | (0.44) | (0.10) | (0.34) | (0.01) | (0.35) |
| Year Ended 10/31/2017 | $12.09 | 0.35 | (0.18) | 0.17 | (0.35) | (0.00)(c) | (0.35) |
| Year Ended 10/31/2016 | $12.11 | 0.37 | (0.02) | 0.35 | (0.37) | — | (0.37) |
| Year Ended 10/31/2015 | $12.20 | 0.39 | (0.09) | 0.30 | (0.39) | — | (0.39) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.09 | 0.15 | (0.46) | (0.31) | (0.15) | (0.00)(c) | (0.15) |
| Year Ended 10/31/2019 | $11.48 | 0.33 | 0.61 | 0.94 | (0.33) | — | (0.33) |
| Year Ended 10/31/2018 | $11.93 | 0.35 | (0.44) | (0.09) | (0.35) | (0.01) | (0.36) |
| Year Ended 10/31/2017 | $12.11 | 0.36 | (0.18) | 0.18 | (0.36) | (0.00)(c) | (0.36) |
| Year Ended 10/31/2016(g) | $12.23 | 0.25 | (0.12) | 0.13 | (0.25) | — | (0.25) |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.12 | 0.15 | (0.47) | (0.32) | (0.15) | (0.00)(c) | (0.15) |
| Year Ended 10/31/2019 | $11.50 | 0.33 | 0.63 | 0.96 | (0.34) | — | (0.34) |
| Year Ended 10/31/2018 | $11.95 | 0.36 | (0.45) | (0.09) | (0.35) | (0.01) | (0.36) |
| Year Ended 10/31/2017(h) | $11.81 | 0.24 | 0.14(i) | 0.38 | (0.24) | — | (0.24) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.61 | (2.75%) | 0.89%(d) | 0.75%(d) | 2.18%(d) | 4% | $20,146 |
| Year Ended 10/31/2019 | $12.07 | 7.96% | 0.90% | 0.75%(e) | 2.46% | 19% | $19,270 |
| Year Ended 10/31/2018 | $11.46 | (1.11%) | 0.89% | 0.75%(e) | 2.68% | 15% | $13,368 |
| Year Ended 10/31/2017 | $11.91 | 1.24% | 0.91%(f) | 0.74%(e),(f) | 2.70% | 9% | $15,639 |
| Year Ended 10/31/2016 | $12.09 | 2.63% | 0.95% | 0.75%(e) | 2.76% | 13% | $29,857 |
| Year Ended 10/31/2015 | $12.11 | 2.15% | 0.96% | 0.75%(e) | 2.95% | 12% | $33,348 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.60 | (2.63%) | 0.65%(d) | 0.50%(d) | 2.45%(d) | 4% | $3,075 |
| Year Ended 10/31/2019 | $12.06 | 8.23% | 0.65% | 0.50%(e) | 2.71% | 19% | $1,234 |
| Year Ended 10/31/2018 | $11.45 | (0.87%) | 0.64% | 0.50%(e) | 2.91% | 15% | $745 |
| Year Ended 10/31/2017 | $11.90 | 1.49% | 0.66%(f) | 0.49%(e),(f) | 2.96% | 9% | $1,296 |
| Year Ended 10/31/2016 | $12.08 | 2.89% | 0.71% | 0.50%(e) | 3.00% | 13% | $1,611 |
| Year Ended 10/31/2015 | $12.10 | 2.49% | 0.72% | 0.50%(e) | 3.20% | 12% | $682 |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.61 | (2.97%) | 1.64%(d) | 1.20%(d) | 1.73%(d) | 4% | $8,741 |
| Year Ended 10/31/2019 | $12.07 | 7.47% | 1.65% | 1.20%(e) | 2.05% | 19% | $9,996 |
| Year Ended 10/31/2018 | $11.46 | (1.56%) | 1.64% | 1.20%(e) | 2.23% | 15% | $12,491 |
| Year Ended 10/31/2017 | $11.91 | 0.78% | 1.66%(f) | 1.19%(e),(f) | 2.25% | 9% | $17,015 |
| Year Ended 10/31/2016 | $12.09 | 2.17% | 1.71% | 1.20%(e) | 2.31% | 13% | $24,011 |
| Year Ended 10/31/2015 | $12.11 | 1.77% | 1.71% | 1.20%(e) | 2.50% | 12% | $19,817 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.61 | (2.63%) | 0.64%(d) | 0.50%(d) | 2.43%(d) | 4% | $178,468 |
| Year Ended 10/31/2019 | $12.07 | 8.23% | 0.65% | 0.50%(e) | 2.72% | 19% | $191,680 |
| Year Ended 10/31/2018 | $11.46 | (0.87%) | 0.64% | 0.50%(e) | 2.93% | 15% | $169,671 |
| Year Ended 10/31/2017 | $11.91 | 1.49% | 0.66%(f) | 0.49%(e),(f) | 2.95% | 9% | $197,180 |
| Year Ended 10/31/2016 | $12.09 | 2.89% | 0.71% | 0.50%(e) | 3.02% | 13% | $230,980 |
| Year Ended 10/31/2015 | $12.11 | 2.49% | 0.72% | 0.50%(e) | 3.20% | 12% | $216,139 |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.63 | (2.59%) | 0.57%(d) | 0.43%(d) | 2.50%(d) | 4% | $3,163 |
| Year Ended 10/31/2019 | $12.09 | 8.29% | 0.58% | 0.43% | 2.77% | 19% | $3,916 |
| Year Ended 10/31/2018 | $11.48 | (0.77%) | 0.58% | 0.44% | 3.03% | 15% | $1,472 |
| Year Ended 10/31/2017 | $11.93 | 1.56% | 0.58%(f) | 0.42%(f) | 3.02% | 9% | $215 |
| Year Ended 10/31/2016(g) | $12.11 | 1.08% | 0.58%(d) | 0.41%(d) | 3.19%(d) | 13% | $156 |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.65 | (2.64%) | 0.53%(d) | 0.39%(d) | 2.54%(d) | 4% | $613 |
| Year Ended 10/31/2019 | $12.12 | 8.41% | 0.54% | 0.39% | 2.80% | 19% | $678 |
| Year Ended 10/31/2018 | $11.50 | (0.73%) | 0.54% | 0.38% | 3.05% | 15% | $190 |
| Year Ended 10/31/2017(h) | $11.95 | 3.24% | 0.52%(d) | 0.39%(d) | 3.06%(d) | 9% | $335 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 21 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $12.07 | 0.14 | (0.46) | (0.32) | (0.14) | (0.00)(c) | (0.14) |
| Year Ended 10/31/2019 | $11.46 | 0.31 | 0.61 | 0.92 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $11.91 | 0.33 | (0.45) | (0.12) | (0.32) | (0.01) | (0.33) |
| Year Ended 10/31/2017 | $12.09 | 0.33 | (0.17) | 0.16 | (0.34) | (0.00)(c) | (0.34) |
| Year Ended 10/31/2016 | $12.11 | 0.35 | (0.02) | 0.33 | (0.35) | — | (0.35) |
| Year Ended 10/31/2015 | $12.20 | 0.37 | (0.09) | 0.28 | (0.37) | — | (0.37) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Rounds to zero. |
| (d) | Annualized. |
| (e) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (f) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Institutional 2 Class | Class V |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (g) | Institutional 2 Class shares commenced operations on March 1, 2016. Per share data and total return reflect activity from that date. |
| (h) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (i) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 22 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $11.61 | (2.70%) | 0.79%(d) | 0.65%(d) | 2.28%(d) | 4% | $5,412 |
| Year Ended 10/31/2019 | $12.07 | 8.07% | 0.80% | 0.65%(e) | 2.59% | 19% | $5,696 |
| Year Ended 10/31/2018 | $11.46 | (1.01%) | 0.79% | 0.65%(e) | 2.78% | 15% | $6,077 |
| Year Ended 10/31/2017 | $11.91 | 1.33% | 0.81%(f) | 0.64%(e),(f) | 2.80% | 9% | $6,533 |
| Year Ended 10/31/2016 | $12.09 | 2.74% | 0.86% | 0.65%(e) | 2.87% | 13% | $7,022 |
| Year Ended 10/31/2015 | $12.11 | 2.33% | 0.87% | 0.65%(e) | 3.05% | 12% | $7,406 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 23 |
Notes to Financial Statements
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 1. Organization
Columbia New York Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 24 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2020 was 0.47% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| 26 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
For the six months ended April 30,
2020, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.13 |
| Advisor Class | 0.13 |
| Class C | 0.13 |
| Institutional Class | 0.13 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.02 |
| Class V | 0.13 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 4,728 |
| Class C | — | 1.00(b) | 30 |
| Class V | 4.75 | 0.50 - 1.00(c) | 11 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 27 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| Fee rate(s) contractual through February 28, 2021 | |
| Class A | 0.75% |
| Advisor Class | 0.50 |
| Class C | 1.50 |
| Institutional Class | 0.50 |
| Institutional 2 Class | 0.43 |
| Institutional 3 Class | 0.39 |
| Class V | 0.65 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2020, the approximate
cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 215,197,000 | 6,415,000 | (2,922,000) | 3,493,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
| 28 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $9,844,675 and $12,260,556, respectively, for the six months ended April 30, 2020. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 2020.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the six months ended April 30, 2020.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 29 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject
to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies
and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks
may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global
events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The coronavirus disease 2019
(COVID-19) public health crisis has become a pandemic that has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions,
workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken
by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness
outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness
outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may
exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a
timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
The Investment Manager and its
affiliates have systematically implemented strategies to address the operating environment spurred by the COVID-19 pandemic. To promote the safety and security of its employees and to assure the continuity of its
business operations, the Investment Manager and its affiliates have implemented a work from home protocol for virtually all of its employee population, restricted business travel, and provided resources for complying
with the guidance from the World Health Organization, the U.S. Centers for Disease Control and governments. The Investment Manager’s operations teams
| 30 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
seek to operate without significant disruptions in
service. Its pandemic strategy takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. The Fund
cannot, however, predict the impact that natural or man-made disasters, including the COVID-19 pandemic, may have on the ability of the Investment Manager, its employees and third-party service providers to continue
ordinary business operations and technology functions over near- or longer-term periods.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2020, one unaffiliated
shareholder of record owned 69.8% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption
activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid
positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for
non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 | 31 |
Liquidity Risk
Management Program
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (“Program”). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity
risk. Liquidity risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the “Committee”). At
a board meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period December
1, 2018, through December 31, 2019, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 32 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2020 |
[THIS PAGE INTENTIONALLY LEFT
BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR204_10_K01_(06/20)
Columbia
Connecticut Intermediate Municipal Bond Fund
Beginning on January 1, 2021, as
permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you
specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (columbiathreadneedleus.com/investor/), and each time a report is posted you will be notified
by mail and provided with a website address to access the report.
If you have already elected to
receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Fund, by calling 800.345.6611 or by enrolling in “eDelivery” by logging
into your account at columbiathreadneedleus.com/investor/.
You may elect to receive all future
reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. If you
invest directly with the Fund, you can call 800.345.6611 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia
Funds held in your account if you invest through a financial intermediary or all Columbia Funds held with the fund complex if you invest directly with the Fund.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
Columbia Connecticut Intermediate
Municipal Bond Fund (the Fund) mails one shareholder report to each shareholder address, unless such shareholder elected to receive shareholder reports from the Fund electronically. If you would like more than one
report, please call shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT, and for reporting periods ended prior to March 31, 2019, on Form N-Q. The Fund’s Form N-Q and Form N-PORT
filings are available on the SEC’s website at sec.gov. The Fund’s complete schedule of portfolio holdings, as filed on Form N-Q or Form N-PORT, can also be obtained without charge, upon request, by calling
800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
225 Franklin Street
Boston, MA 02110
Fund distributor
Columbia Management Investment Distributors,
Inc.
225 Franklin Street
Boston, MA 02110
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Connecticut Intermediate Municipal Bond
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Connecticut individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2016
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2020) | |
| AAA rating | 12.2 |
| AA rating | 28.5 |
| A rating | 51.9 |
| BBB rating | 4.0 |
| BB rating | 1.0 |
| Not rated | 2.4 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. When a bond is not
rated by any rating agency, it is designated as “Not rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily.
The ratings assigned by credit rating agencies are but one of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other
issuer-specific factors as cash flows, capital structure and leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such
security-specific factors as the terms of the security (e.g., interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2019 — April 30, 2020 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 983.50 | 1,020.84 | 3.99 | 4.07 | 0.81 |
| Advisor Class | 1,000.00 | 1,000.00 | 984.70 | 1,022.08 | 2.76 | 2.82 | 0.56 |
| Class C | 1,000.00 | 1,000.00 | 981.30 | 1,018.60 | 6.21 | 6.32 | 1.26 |
| Institutional Class | 1,000.00 | 1,000.00 | 984.70 | 1,022.08 | 2.76 | 2.82 | 0.56 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 986.20 | 1,022.63 | 2.22 | 2.26 | 0.45 |
| Class V | 1,000.00 | 1,000.00 | 983.90 | 1,021.33 | 3.50 | 3.57 | 0.71 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 366.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 6 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Money Market Funds 5.5% | ||
| Shares | Value ($) | |
| Dreyfus AMT-Free Tax Exempt Cash Management Fund, Institutional Shares, 0.164%(d) | 229,552 | 229,529 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.180%(d) | 4,949,809 | 4,949,809 |
| Total Money Market Funds (Cost $5,179,361) | 5,179,338 | |
| Total Investments in Securities (Cost: $91,445,045) | 94,023,120 | |
| Other Assets & Liabilities, Net | 860,177 | |
| Net Assets | 94,883,297 | |
Notes to Portfolio of
Investments
| (a) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2020, the total value of these securities amounted to $979,237, which represents 1.03% of total net assets. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund’s Board of Trustees. At April 30, 2020, the total value of these securities amounted to $884,020, which represents 0.93% of total net assets. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | The rate shown is the seven-day current annualized yield at April 30, 2020. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Fair value measurements (continued)
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.
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.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 88,843,782 | — | 88,843,782 |
| Money Market Funds | 5,179,338 | — | — | 5,179,338 |
| Total Investments in Securities | 5,179,338 | 88,843,782 | — | 94,023,120 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $91,445,045) | $94,023,120 |
| Receivable for: | |
| Capital shares sold | 84,865 |
| Interest | 1,021,187 |
| Expense reimbursement due from Investment Manager | 325 |
| Prepaid expenses | 125 |
| Trustees’ deferred compensation plan | 61,290 |
| Other assets | 2,417 |
| Total assets | 95,193,329 |
| Liabilities | |
| Due to custodian | 170 |
| Payable for: | |
| Capital shares purchased | 28,313 |
| Distributions to shareholders | 193,194 |
| Management services fees | 1,218 |
| Distribution and/or service fees | 123 |
| Transfer agent fees | 10,219 |
| Compensation of board members | 759 |
| Compensation of chief compliance officer | 3 |
| Other expenses | 14,743 |
| Trustees’ deferred compensation plan | 61,290 |
| Total liabilities | 310,032 |
| Net assets applicable to outstanding capital stock | $94,883,297 |
| Represented by | |
| Paid in capital | 92,329,691 |
| Total distributable earnings (loss) | 2,553,606 |
| Total - representing net assets applicable to outstanding capital stock | $94,883,297 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 11 |
Statement of Assets and Liabilities (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
| Class A | |
| Net assets | $7,642,429 |
| Shares outstanding | 735,922 |
| Net asset value per share | $10.38 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.70 |
| Advisor Class | |
| Net assets | $939,773 |
| Shares outstanding | 90,611 |
| Net asset value per share | $10.37 |
| Class C | |
| Net assets | $1,787,243 |
| Shares outstanding | 172,113 |
| Net asset value per share | $10.38 |
| Institutional Class | |
| Net assets | $75,446,891 |
| Shares outstanding | 7,268,001 |
| Net asset value per share | $10.38 |
| Institutional 3 Class | |
| Net assets | $155,768 |
| Shares outstanding | 14,967 |
| Net asset value per share | $10.41 |
| Class V | |
| Net assets | $8,911,193 |
| Shares outstanding | 859,364 |
| Net asset value per share | $10.37 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.89 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Operations
Six Months Ended April 30, 2020 (Unaudited)
Six Months Ended April 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $15,085 |
| Interest | 1,585,298 |
| Total income | 1,600,383 |
| Expenses: | |
| Management services fees | 235,906 |
| Distribution and/or service fees | |
| Class A | 9,655 |
| Class C | 9,417 |
| Class V | 6,828 |
| Transfer agent fees | |
| Class A | 4,841 |
| Advisor Class | 541 |
| Class C | 1,180 |
| Institutional Class | 50,530 |
| Institutional 3 Class | 11 |
| Class V | 5,706 |
| Compensation of board members | 7,451 |
| Custodian fees | 446 |
| Printing and postage fees | 5,227 |
| Registration fees | 4,821 |
| Audit fees | 14,660 |
| Legal fees | 1,111 |
| Compensation of chief compliance officer | 19 |
| Other | 5,281 |
| Total expenses | 363,631 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (59,608) |
| Fees waived by distributor | |
| Class C | (2,823) |
| Total net expenses | 301,200 |
| Net investment income | 1,299,183 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 101,889 |
| Net realized gain | 101,889 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (2,969,407) |
| Net change in unrealized appreciation (depreciation) | (2,969,407) |
| Net realized and unrealized loss | (2,867,518) |
| Net decrease in net assets resulting from operations | $(1,568,335) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 13 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2020 (Unaudited) | Year Ended October 31, 2019 | |
| Operations | ||
| Net investment income | $1,299,183 | $2,673,118 |
| Net realized gain | 101,889 | 76,184 |
| Net change in unrealized appreciation (depreciation) | (2,969,407) | 4,720,534 |
| Net increase (decrease) in net assets resulting from operations | (1,568,335) | 7,469,836 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (92,081) | (206,881) |
| Advisor Class | (11,367) | (18,856) |
| Class C | (18,198) | (47,272) |
| Institutional Class | (1,062,897) | (2,213,310) |
| Institutional 3 Class | (1,533) | (301) |
| Class V | (113,107) | (261,499) |
| Total distributions to shareholders | (1,299,183) | (2,748,119) |
| Decrease in net assets from capital stock activity | (3,538,501) | (3,359,046) |
| Total increase (decrease) in net assets | (6,406,019) | 1,362,671 |
| Net assets at beginning of period | 101,289,316 | 99,926,645 |
| Net assets at end of period | $94,883,297 | $101,289,316 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2020 (Unaudited) | October 31, 2019 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 28,305 | 302,599 | 127,282 | 1,321,971 |
| Distributions reinvested | 5,892 | 62,856 | 13,152 | 138,360 |
| Redemptions | (38,645) | (412,799) | (85,664) | (904,494) |
| Net increase (decrease) | (4,448) | (47,344) | 54,770 | 555,837 |
| Advisor Class | ||||
| Subscriptions | 23,333 | 250,000 | 41,052 | 425,066 |
| Distributions reinvested | 1,056 | 11,238 | 1,765 | 18,573 |
| Redemptions | (8,807) | (93,438) | (2,993) | (30,939) |
| Net increase | 15,582 | 167,800 | 39,824 | 412,700 |
| Class C | ||||
| Subscriptions | 11,841 | 127,456 | 35,619 | 380,579 |
| Distributions reinvested | 1,573 | 16,783 | 4,150 | 43,569 |
| Redemptions | (32,052) | (339,485) | (76,601) | (807,446) |
| Net decrease | (18,638) | (195,246) | (36,832) | (383,298) |
| Institutional Class | ||||
| Subscriptions | 631,417 | 6,717,510 | 1,783,284 | 18,733,992 |
| Distributions reinvested | 10,759 | 114,706 | 19,969 | 210,214 |
| Redemptions | (993,066) | (10,446,640) | (2,139,366) | (22,105,242) |
| Net decrease | (350,890) | (3,614,424) | (336,113) | (3,161,036) |
| Institutional 3 Class | ||||
| Subscriptions | 14,018 | 150,000 | — | — |
| Distributions reinvested | 131 | 1,395 | — | — |
| Redemptions | (130) | (1,395) | — | — |
| Net increase | 14,019 | 150,000 | — | — |
| Class V | ||||
| Subscriptions | 1,098 | 11,693 | 3,350 | 35,102 |
| Distributions reinvested | 6,076 | 64,727 | 13,915 | 146,102 |
| Redemptions | (7,116) | (75,707) | (91,918) | (964,453) |
| Net increase (decrease) | 58 | 713 | (74,653) | (783,249) |
| Total net decrease | (344,317) | (3,538,501) | (353,004) | (3,359,046) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 15 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.68 | 0.13 | (0.30) | (0.17) | (0.13) | — | (0.13) |
| Year Ended 10/31/2019 | $10.16 | 0.27 | 0.53 | 0.80 | (0.28) | — | (0.28) |
| Year Ended 10/31/2018 | $10.56 | 0.27 | (0.37) | (0.10) | (0.28) | (0.02) | (0.30) |
| Year Ended 10/31/2017 | $10.86 | 0.29 | (0.26) | 0.03 | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2016 | $10.91 | 0.29 | (0.03) | 0.26 | (0.29) | (0.02) | (0.31) |
| Year Ended 10/31/2015 | $11.06 | 0.30 | (0.13) | 0.17 | (0.30) | (0.02) | (0.32) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.67 | 0.14 | (0.30) | (0.16) | (0.14) | — | (0.14) |
| Year Ended 10/31/2019 | $10.15 | 0.30 | 0.53 | 0.83 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $10.54 | 0.30 | (0.37) | (0.07) | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2017 | $10.84 | 0.31 | (0.26) | 0.05 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2016 | $10.90 | 0.32 | (0.04) | 0.28 | (0.32) | (0.02) | (0.34) |
| Year Ended 10/31/2015 | $11.05 | 0.33 | (0.13) | 0.20 | (0.33) | (0.02) | (0.35) |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.68 | 0.10 | (0.30) | (0.20) | (0.10) | — | (0.10) |
| Year Ended 10/31/2019 | $10.16 | 0.23 | 0.52 | 0.75 | (0.23) | — | (0.23) |
| Year Ended 10/31/2018 | $10.55 | 0.23 | (0.37) | (0.14) | (0.23) | (0.02) | (0.25) |
| Year Ended 10/31/2017 | $10.86 | 0.24 | (0.27) | (0.03) | (0.24) | (0.04) | (0.28) |
| Year Ended 10/31/2016 | $10.91 | 0.24 | (0.03) | 0.21 | (0.24) | (0.02) | (0.26) |
| Year Ended 10/31/2015 | $11.06 | 0.25 | (0.13) | 0.12 | (0.25) | (0.02) | (0.27) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.68 | 0.14 | (0.30) | (0.16) | (0.14) | — | (0.14) |
| Year Ended 10/31/2019 | $10.16 | 0.30 | 0.53 | 0.83 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $10.55 | 0.30 | (0.37) | (0.07) | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2017 | $10.86 | 0.31 | (0.27) | 0.04 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2016 | $10.91 | 0.32 | (0.03) | 0.29 | (0.32) | (0.02) | (0.34) |
| Year Ended 10/31/2015 | $11.06 | 0.33 | (0.13) | 0.20 | (0.33) | (0.02) | (0.35) |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.70 | 0.14 | (0.28) | (0.14) | (0.15) | — | (0.15) |
| Year Ended 10/31/2019 | $10.18 | 0.31 | 0.53 | 0.84 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $10.58 | 0.31 | (0.37) | (0.06) | (0.32) | (0.02) | (0.34) |
| Year Ended 10/31/2017(f) | $10.55 | 0.21 | 0.03(g) | 0.24 | (0.21) | — | (0.21) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.38 | (1.65%) | 0.92%(c) | 0.81%(c) | 2.39%(c) | 10% | $7,642 |
| Year Ended 10/31/2019 | $10.68 | 7.95% | 0.93% | 0.80%(d) | 2.59% | 12% | $7,910 |
| Year Ended 10/31/2018 | $10.16 | (0.97%) | 0.92% | 0.81%(d) | 2.63% | 13% | $6,967 |
| Year Ended 10/31/2017 | $10.56 | 0.28% | 0.93%(e) | 0.77%(d),(e) | 2.71% | 6% | $6,424 |
| Year Ended 10/31/2016 | $10.86 | 2.40% | 0.98% | 0.81%(d) | 2.64% | 12% | $10,952 |
| Year Ended 10/31/2015 | $10.91 | 1.60% | 0.99% | 0.81%(d) | 2.76% | 6% | $8,090 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.37 | (1.53%) | 0.68%(c) | 0.56%(c) | 2.64%(c) | 10% | $940 |
| Year Ended 10/31/2019 | $10.67 | 8.23% | 0.68% | 0.55%(d) | 2.84% | 12% | $801 |
| Year Ended 10/31/2018 | $10.15 | (0.63%) | 0.67% | 0.56%(d) | 2.89% | 13% | $357 |
| Year Ended 10/31/2017 | $10.54 | 0.54% | 0.66%(e) | 0.51%(d),(e) | 2.96% | 6% | $511 |
| Year Ended 10/31/2016 | $10.84 | 2.56% | 0.73% | 0.56%(d) | 2.89% | 12% | $1,376 |
| Year Ended 10/31/2015 | $10.90 | 1.86% | 0.74% | 0.56%(d) | 3.04% | 6% | $1,279 |
| Class C | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.38 | (1.87%) | 1.67%(c) | 1.26%(c) | 1.93%(c) | 10% | $1,787 |
| Year Ended 10/31/2019 | $10.68 | 7.47% | 1.68% | 1.25%(d) | 2.15% | 12% | $2,038 |
| Year Ended 10/31/2018 | $10.16 | (1.32%) | 1.67% | 1.26%(d) | 2.17% | 13% | $2,312 |
| Year Ended 10/31/2017 | $10.55 | (0.27%) | 1.68%(e) | 1.23%(d),(e) | 2.26% | 6% | $3,914 |
| Year Ended 10/31/2016 | $10.86 | 1.94% | 1.73% | 1.26%(d) | 2.20% | 12% | $5,742 |
| Year Ended 10/31/2015 | $10.91 | 1.14% | 1.74% | 1.26%(d) | 2.32% | 6% | $6,574 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.38 | (1.53%) | 0.67%(c) | 0.56%(c) | 2.64%(c) | 10% | $75,447 |
| Year Ended 10/31/2019 | $10.68 | 8.22% | 0.68% | 0.55%(d) | 2.83% | 12% | $81,364 |
| Year Ended 10/31/2018 | $10.16 | (0.63%) | 0.67% | 0.56%(d) | 2.87% | 13% | $80,804 |
| Year Ended 10/31/2017 | $10.55 | 0.44% | 0.68%(e) | 0.53%(d),(e) | 2.95% | 6% | $100,370 |
| Year Ended 10/31/2016 | $10.86 | 2.66% | 0.73% | 0.56%(d) | 2.90% | 12% | $131,129 |
| Year Ended 10/31/2015 | $10.91 | 1.85% | 0.74% | 0.56%(d) | 3.02% | 6% | $129,107 |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.41 | (1.38%) | 0.58%(c) | 0.45%(c) | 2.79%(c) | 10% | $156 |
| Year Ended 10/31/2019 | $10.70 | 8.32% | 0.57% | 0.45% | 2.94% | 12% | $10 |
| Year Ended 10/31/2018 | $10.18 | (0.61%) | 0.57% | 0.45% | 2.99% | 13% | $10 |
| Year Ended 10/31/2017(f) | $10.58 | 2.31% | 0.56%(c) | 0.45%(c) | 3.02%(c) | 6% | $10 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 17 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.67 | 0.13 | (0.30) | (0.17) | (0.13) | — | (0.13) |
| Year Ended 10/31/2019 | $10.15 | 0.28 | 0.53 | 0.81 | (0.29) | — | (0.29) |
| Year Ended 10/31/2018 | $10.54 | 0.28 | (0.36) | (0.08) | (0.29) | (0.02) | (0.31) |
| Year Ended 10/31/2017 | $10.85 | 0.30 | (0.27) | 0.03 | (0.30) | (0.04) | (0.34) |
| Year Ended 10/31/2016 | $10.90 | 0.30 | (0.03) | 0.27 | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2015 | $11.05 | 0.31 | (0.12) | 0.19 | (0.32) | (0.02) | (0.34) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Class V |
| 10/31/2017 | 0.04% | 0.05% | 0.03% | 0.03% | 0.03% |
| (f) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (g) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 18 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class V | |||||||
| Six Months Ended 4/30/2020 (Unaudited) | $10.37 | (1.61%) | 0.82%(c) | 0.71%(c) | 2.49%(c) | 10% | $8,911 |
| Year Ended 10/31/2019 | $10.67 | 8.06% | 0.83% | 0.70%(d) | 2.69% | 12% | $9,167 |
| Year Ended 10/31/2018 | $10.15 | (0.78%) | 0.82% | 0.71%(d) | 2.73% | 13% | $9,477 |
| Year Ended 10/31/2017 | $10.54 | 0.28% | 0.83%(e) | 0.68%(d),(e) | 2.80% | 6% | $10,456 |
| Year Ended 10/31/2016 | $10.85 | 2.50% | 0.88% | 0.71%(d) | 2.75% | 12% | $11,536 |
| Year Ended 10/31/2015 | $10.90 | 1.72% | 0.89% | 0.71%(d) | 2.87% | 6% | $11,823 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 19 |
Notes to Financial Statements
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 1. Organization
Columbia Connecticut Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class and Institutional 3
Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class V shares
are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized cost value, unless this method results in a valuation that management believes does not approximate market value.
Investments in open-end investment
companies, including money market funds, are valued at their latest net asset value.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 20 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectibility of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 21 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2020 was 0.47% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. These members of the Board of Trustees
may participate in a Deferred Compensation Plan (the Deferred Plan) which may be terminated at any time. Obligations of the Deferred Plan will be paid solely out of the Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Fund.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 3 Class shares are subject to an annual limitation of not
more than 0.02% of the average daily net assets attributable to Institutional 3 Class shares.
For the six months ended April 30,
2020, the Fund’s annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Effective rate (%) | |
| Class A | 0.13 |
| Advisor Class | 0.13 |
| Class C | 0.13 |
| Institutional Class | 0.13 |
| Institutional 3 Class | 0.02 |
| Class V | 0.13 |
| 22 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
The Distributor has voluntarily
agreed to waive a portion of the distribution fee for Class C shares so that the distribution fee does not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement may be
modified or terminated by the Distributor at any time.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder liaison services and up to 0.20% for administrative support services). These fees are currently
limited to an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 1,813 |
| Class C | — | 1.00(b) | — |
| Class V | 4.75 | 0.50 - 1.00(c) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 23 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| Fee rate(s) contractual through February 28, 2021 | |
| Class A | 0.81% |
| Advisor Class | 0.56 |
| Class C | 1.56 |
| Institutional Class | 0.56 |
| Institutional 3 Class | 0.45 |
| Class V | 0.71 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be modified or amended only with approval from
the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or
its affiliates in future periods. Class C distribution fees waived by the Distributor, as discussed above, are in addition to the waiver/reimbursement commitment under the agreement.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At April 30, 2020, the approximate
cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| 91,445,000 | 3,424,000 | (846,000) | 2,578,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at October 31, 2019, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (80,644) | (23,400) | (104,044) |
| 24 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $9,490,394 and $12,447,188, respectively, for the six months ended April 30, 2020. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 2020.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager or an affiliated investment manager, severally and
not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month LIBOR rate and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. The Fund also pays a
commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement
expires annually in December unless extended or renewed.
The Fund had no borrowings during
the six months ended April 30, 2020.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Geographic concentration risk
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
assets in a single issuer and, therefore, be more
exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt securities tend to fall, and if interest rates fall, the values of debt securities tend to rise.
Actions by governments and central banking authorities can result in increases in interest rates. Increasing interest rates may negatively affect the value of debt securities held by the Fund, resulting in a negative
impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a debt security, the greater its sensitivity to changes in interest rates. The Fund is subject
to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market and environment risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, including causing difficulty in assigning prices to hard-to-value assets in thinly traded and closed markets, significant redemptions and operational challenges. Global economies
and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks
may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global
events such as terrorism, war, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could
have a significant negative impact on global economic and market conditions.
The coronavirus disease 2019
(COVID-19) public health crisis has become a pandemic that has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access,
resource availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions,
workforce displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken
by governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness
outbreaks, epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness
outbreaks and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may
exacerbate other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a
timely manner and negatively impact the Fund’s ability to achieve its investment objective. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
| 26 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
April 30, 2020 (Unaudited)
April 30, 2020 (Unaudited)
The Investment Manager and its
affiliates have systematically implemented strategies to address the operating environment spurred by the COVID-19 pandemic. To promote the safety and security of its employees and to assure the continuity of its
business operations, the Investment Manager and its affiliates have implemented a work from home protocol for virtually all of its employee population, restricted business travel, and provided resources for complying
with the guidance from the World Health Organization, the U.S. Centers for Disease Control and governments. The Investment Manager’s operations teams seek to operate without significant disruptions in service.
Its pandemic strategy takes into consideration that a pandemic could be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. The Fund cannot,
however, predict the impact that natural or man-made disasters, including the COVID-19 pandemic, may have on the ability of the Investment Manager, its employees and third-party service providers to continue ordinary
business operations and technology functions over near- or longer-term periods.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2020, one unaffiliated
shareholder of record owned 72.4% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption
activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid
positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for
non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2020 | 27 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR131_10_K01_(06/20)