UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-04367
Columbia Funds Series Trust I
(Exact name of registrant as specified in charter)
225 Franklin Street
Boston, Massachusetts 02110
(Address of principal executive offices) (Zip code)
Christopher O. Petersen, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, Massachusetts 02110
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
Boston, MA 02110
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: March 31
Date of reporting period: September 30,2020
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
Columbia Adaptive
Retirement Funds
Columbia Adaptive
Retirement 2020 Fund
Columbia Adaptive
Retirement 2025 Fund
Columbia Adaptive
Retirement 2030 Fund
Columbia Adaptive
Retirement 2035 Fund
Columbia Adaptive
Retirement 2040 Fund
Columbia Adaptive
Retirement 2045 Fund
Columbia Adaptive
Retirement 2050 Fund
Columbia Adaptive
Retirement 2055 Fund
Columbia Adaptive
Retirement 2060 Fund
Beginning on January 1, 2021, as permitted by
regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ 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 Funds’ 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 Funds electronically
at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, for Fund shares held directly with the Funds, 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
shareholder 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 Funds, you can call 800.345.6611 to let the Funds 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 Funds.
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
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Columbia Adaptive Retirement
Funds | Semiannual Report 2020
Fund at a Glance
Columbia Adaptive Retirement 2020 Fund (Unaudited)
Columbia Adaptive Retirement 2020 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2020 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2017
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 3 |
Fund at a Glance
Columbia Adaptive Retirement 2025 Fund (Unaudited)
Columbia Adaptive Retirement 2025 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2025 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2018
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2018
| 4 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Fund at a Glance
Columbia Adaptive Retirement 2030 Fund (Unaudited)
Columbia Adaptive Retirement 2030 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2030 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2017
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 5 |
Fund at a Glance
Columbia Adaptive Retirement 2035 Fund (Unaudited)
Columbia Adaptive Retirement 2035 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2035 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2018
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2018
| 6 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Fund at a Glance
Columbia Adaptive Retirement 2040 Fund (Unaudited)
Columbia Adaptive Retirement 2040 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2040 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2017
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 7 |
Fund at a Glance
Columbia Adaptive Retirement 2045 Fund (Unaudited)
Columbia Adaptive Retirement 2045 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2045 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2018
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2018
| 8 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Fund at a Glance
Columbia Adaptive Retirement 2050 Fund (Unaudited)
Columbia Adaptive Retirement 2050 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2050 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2017
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 9 |
Fund at a Glance
Columbia Adaptive Retirement 2055 Fund (Unaudited)
Columbia Adaptive Retirement 2055 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2055 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2018
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2018
| 10 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Fund at a Glance
Columbia Adaptive Retirement 2060 Fund (Unaudited)
Columbia Adaptive Retirement 2060 Fund (Unaudited)
Investment objective
Columbia
Adaptive Retirement 2060 Fund (the Fund) seeks capital appreciation and current income.
Portfolio management
Joshua Kutin, CFA
Lead Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Portfolio Manager
Managed Fund since 2017
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 11 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund
expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual
funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
In addition to the ongoing expenses
which the Fund bears directly, the Fund’s shareholders indirectly bear the Fund’s allocable share of the costs and expenses of each underlying fund in which the Fund invests. You can also estimate the
effective expenses paid during the period, which includes the indirect fees associated with investing in the underlying funds, by using the amounts listed in the “Effective expenses paid during the period”
column.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| April 1, 2020 — September 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 (%) | Effective expenses paid during the period ($) | Fund’s effective annualized expense ratio (%) | |||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | Actual | Hypothetical | Actual | |
| Columbia Adaptive Retirement 2020 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,069.20 | 1,022.86 | 2.28 | 2.23 | 0.44 | 2.59 | 2.54 | 0.50 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,069.20 | 1,022.86 | 2.28 | 2.23 | 0.44 | 2.59 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2025 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,078.50 | 1,022.81 | 2.34 | 2.28 | 0.45 | 2.66 | 2.59 | 0.51 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,078.50 | 1,022.86 | 2.29 | 2.23 | 0.44 | 2.61 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2030 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,087.60 | 1,022.26 | 2.93 | 2.84 | 0.56 | 3.24 | 3.14 | 0.62 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,088.50 | 1,022.86 | 2.30 | 2.23 | 0.44 | 2.62 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2035 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,103.10 | 1,022.46 | 2.74 | 2.64 | 0.52 | 3.06 | 2.94 | 0.58 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,103.00 | 1,022.86 | 2.32 | 2.23 | 0.44 | 2.64 | 2.54 | 0.50 |
| 12 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Understanding Your Fund’s
Expenses (continued)
(Unaudited)
(Unaudited)
| April 1, 2020 — September 30, 2020 | ||||||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | Effective expenses paid during the period ($) | Fund’s effective annualized expense ratio (%) | |||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | Actual | Hypothetical | Actual | |
| Columbia Adaptive Retirement 2040 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,115.90 | 1,022.56 | 2.65 | 2.54 | 0.50 | 2.97 | 2.84 | 0.56 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,116.90 | 1,022.86 | 2.33 | 2.23 | 0.44 | 2.65 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2045 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,129.70 | 1,022.76 | 2.46 | 2.33 | 0.46 | 2.78 | 2.64 | 0.52 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,129.70 | 1,022.86 | 2.35 | 2.23 | 0.44 | 2.67 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2050 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,139.00 | 1,022.71 | 2.52 | 2.38 | 0.47 | 2.84 | 2.69 | 0.53 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,139.00 | 1,022.86 | 2.36 | 2.23 | 0.44 | 2.68 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2055 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,139.40 | 1,022.81 | 2.41 | 2.28 | 0.45 | 2.74 | 2.59 | 0.51 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,139.40 | 1,022.86 | 2.36 | 2.23 | 0.44 | 2.68 | 2.54 | 0.50 |
| Columbia Adaptive Retirement 2060 Fund | ||||||||||
| Advisor Class | 1,000.00 | 1,000.00 | 1,139.10 | 1,022.76 | 2.47 | 2.33 | 0.46 | 2.79 | 2.64 | 0.52 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,140.10 | 1,022.86 | 2.36 | 2.23 | 0.44 | 2.68 | 2.54 | 0.50 |
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 365.
Effective expenses paid during the
period and the Fund’s effective annualized expense ratio include expenses borne directly to the class plus the Fund’s pro rata portion of the ongoing expenses charged by the underlying funds using the
expense ratio of each class of the underlying funds as of the underlying fund’s most recent shareholder report.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses for each Fund, account value at the end of the period would have been reduced.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 13 |
Portfolio of Investments
Columbia Adaptive Retirement 2020 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2020 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 467,821 | (163,776) | 22,965 | 327,010 | — | 5,077 | — | 20,161 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 896,556 | 172,651 | (1,044,267) | 543 | 25,483 | — | (47) | 962 | 25,485 | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 829,423 | 17,516 | (88,855) | 127,972 | 886,056 | — | 4,770 | — | 79,539 | |
| Columbia Solutions Conservative Portfolio | |||||||||
| 5,249,550 | 95,320 | (75,883) | 321,009 | 5,589,996 | — | (169) | — | 519,034 | |
| Total | 6,975,529 | 472,489 | 6,828,545 | — | 9,631 | 962 | |||
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2020 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2020 Fund, September 30, 2020 (Unaudited)
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.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 327,010 | — | — | — | 327,010 |
| Exchange-Traded Equity Funds | 324,150 | — | — | — | 324,150 |
| Exchange-Traded Fixed Income Funds | 646,155 | — | — | — | 646,155 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 6,476,052 | 6,476,052 |
| Money Market Funds | 25,483 | — | — | — | 25,483 |
| Total Investments in Securities | 1,322,798 | — | — | 6,476,052 | 7,798,850 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 15 |
Portfolio of Investments
Columbia Adaptive Retirement 2025 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2025 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 218,831 | (75,861) | 10,725 | 153,695 | — | 2,328 | — | 9,476 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 418,737 | 122,905 | (512,147) | 257 | 29,752 | — | (31) | 446 | 29,755 | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 693,497 | 15,326 | (70,408) | 107,676 | 746,091 | — | 3,122 | — | 66,974 | |
| Columbia Solutions Conservative Portfolio | |||||||||
| 2,142,116 | 62,880 | (37,745) | 130,964 | 2,298,215 | — | (188) | — | 213,390 | |
| Total | 3,254,350 | 249,622 | 3,227,753 | — | 5,231 | 446 | |||
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2025 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2025 Fund, September 30, 2020 (Unaudited)
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.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 153,695 | — | — | — | 153,695 |
| Exchange-Traded Equity Funds | 152,334 | — | — | — | 152,334 |
| Exchange-Traded Fixed Income Funds | 303,691 | — | — | — | 303,691 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 3,044,306 | 3,044,306 |
| Money Market Funds | 29,752 | — | — | — | 29,752 |
| Total Investments in Securities | 639,472 | — | — | 3,044,306 | 3,683,778 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 17 |
Portfolio of Investments
Columbia Adaptive Retirement 2030 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2030 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 146,893 | (51,435) | 7,144 | 102,602 | — | 1,501 | — | 6,326 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 303,395 | 113,318 | (416,896) | 183 | — | — | (31) | 292 | — | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 698,187 | 40,265 | (63,172) | 115,155 | 790,435 | — | 547 | — | 70,955 | |
| Columbia Solutions Conservative Portfolio | |||||||||
| 1,099,923 | 108,286 | (36,673) | 70,315 | 1,241,851 | — | (700) | — | 115,306 | |
| Total | 2,101,505 | 192,797 | 2,134,888 | — | 1,317 | 292 | |||
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input
that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For
example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active
market.
Fair value inputs are
summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2030 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2030 Fund, September 30, 2020 (Unaudited)
Fair value measurements (continued)
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 102,602 | — | — | — | 102,602 |
| Exchange-Traded Equity Funds | 101,716 | — | — | — | 101,716 |
| Exchange-Traded Fixed Income Funds | 202,660 | — | — | — | 202,660 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 2,032,286 | 2,032,286 |
| Total Investments in Securities | 406,978 | — | — | 2,032,286 | 2,439,264 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 19 |
Portfolio of Investments
Columbia Adaptive Retirement 2035 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2035 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 96,944 | (33,185) | 4,722 | 68,481 | — | 964 | — | 4,222 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 171,097 | 109,370 | (267,977) | 107 | 12,597 | — | (17) | 187 | 12,598 | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 643,850 | 58,728 | (55,771) | 109,585 | 756,392 | — | (1,336) | — | 67,899 | |
| Columbia Solutions Conservative Portfolio | |||||||||
| 512,654 | 73,379 | (18,796) | 33,369 | 600,606 | — | (495) | — | 55,766 | |
| Total | 1,327,601 | 147,783 | 1,438,076 | — | (884) | 187 | |||
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 20 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2035 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2035 Fund, September 30, 2020 (Unaudited)
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.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 68,481 | — | — | — | 68,481 |
| Exchange-Traded Equity Funds | 67,864 | — | — | — | 67,864 |
| Exchange-Traded Fixed Income Funds | 135,332 | — | — | — | 135,332 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 1,356,998 | 1,356,998 |
| Money Market Funds | 12,597 | — | — | — | 12,597 |
| Total Investments in Securities | 284,274 | — | — | 1,356,998 | 1,641,272 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 21 |
Portfolio of Investments
Columbia Adaptive Retirement 2040 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2040 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| - | 87,032 | (30,380) | 4,160 | 60,812 | — | 882 | — | 3,749 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 143,863 | 114,726 | (258,673) | 84 | — | — | (8) | 162 | — | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 658,491 | 147,618 | (46,723) | 123,016 | 882,402 | — | (231) | — | 79,210 | |
| Columbia Solutions Conservative Portfolio | |||||||||
| 241,584 | 76,935 | (13,096) | 17,454 | 322,877 | — | (277) | — | 29,980 | |
| Total | 1,043,938 | 144,714 | 1,266,091 | — | 366 | 162 | |||
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input
that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For
example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active
market.
Fair value inputs are
summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 22 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2040 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2040 Fund, September 30, 2020 (Unaudited)
Fair value measurements (continued)
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 60,812 | — | — | — | 60,812 |
| Exchange-Traded Equity Funds | 60,279 | — | — | — | 60,279 |
| Exchange-Traded Fixed Income Funds | 120,062 | — | — | — | 120,062 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 1,205,279 | 1,205,279 |
| Total Investments in Securities | 241,153 | — | — | 1,205,279 | 1,446,432 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 23 |
Portfolio of Investments
Columbia Adaptive Retirement 2045 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2045 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | ||||||||
| — | 72,771 | (24,947) | 3,459 | 51,283 | 626 | — | 3,162 | |
| Columbia Short-Term Cash Fund, 0.136% | ||||||||
| 119,771 | 111,235 | (219,948) | 75 | 11,133 | (13) | 135 | 11,134 | |
| Columbia Solutions Aggressive Portfolio | ||||||||
| 715,731 | 94,837 | (32,995) | 124,646 | 902,219 | (1,619) | — | 80,989 | |
| Columbia Solutions Conservative Portfolio | ||||||||
| 91,123 | 20,709 | (3,307) | 6,045 | 114,570 | (93) | — | 10,638 | |
| Total | 926,625 | 134,225 | 1,079,205 | (1,099) | 135 | |||
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 24 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2045 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2045 Fund, September 30, 2020 (Unaudited)
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.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 51,283 | — | — | — | 51,283 |
| Exchange-Traded Equity Funds | 50,858 | — | — | — | 50,858 |
| Exchange-Traded Fixed Income Funds | 101,322 | — | — | — | 101,322 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 1,016,789 | 1,016,789 |
| Money Market Funds | 11,133 | — | — | — | 11,133 |
| Total Investments in Securities | 214,596 | — | — | 1,016,789 | 1,231,385 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 25 |
Portfolio of Investments
Columbia Adaptive Retirement 2050 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2050 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 77,005 | (26,819) | 3,698 | 53,884 | — | 776 | — | 3,322 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 130,360 | 110,309 | (240,744) | 75 | — | — | (8) | 141 | — | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 800,626 | 173,100 | (63,257) | 147,254 | 1,057,723 | — | (176) | — | 94,948 | |
| Columbia Solutions Conservative Portfolio | |||||||||
| 8,355 | 1,842 | — | 568 | 10,765 | — | — | — | 1,000 | |
| Total | 939,341 | 151,595 | 1,122,372 | — | 592 | 141 | |||
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input
that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For
example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active
market.
Fair value inputs are
summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 26 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2050 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2050 Fund, September 30, 2020 (Unaudited)
Fair value measurements (continued)
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 53,884 | — | — | — | 53,884 |
| Exchange-Traded Equity Funds | 53,413 | — | — | — | 53,413 |
| Exchange-Traded Fixed Income Funds | 106,501 | — | — | — | 106,501 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 1,068,488 | 1,068,488 |
| Total Investments in Securities | 213,798 | — | — | 1,068,488 | 1,282,286 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 27 |
Portfolio of Investments
Columbia Adaptive Retirement 2055 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2055 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 63,998 | (21,573) | 3,092 | 45,517 | — | 623 | — | 2,806 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 119,447 | 74,480 | (182,779) | 75 | 11,223 | — | (13) | 128 | 11,224 | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 803,070 | 9,494 | (39,349) | 129,502 | 902,717 | — | (1,207) | — | 81,034 | |
| Total | 922,517 | 132,669 | 959,457 | — | (597) | 128 | |||
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
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.
| 28 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2055 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2055 Fund, September 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.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 45,517 | — | — | — | 45,517 |
| Exchange-Traded Equity Funds | 45,110 | — | — | — | 45,110 |
| Exchange-Traded Fixed Income Funds | 89,925 | — | — | — | 89,925 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 902,717 | 902,717 |
| Money Market Funds | 11,223 | — | — | — | 11,223 |
| Total Investments in Securities | 191,775 | — | — | 902,717 | 1,094,492 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 29 |
Portfolio of Investments
Columbia Adaptive Retirement 2060 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2060 Fund, September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
Notes to Portfolio of
Investments
| (a) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Capital gain distributions($) | Realized gain (loss)($) | Dividends — affiliated issuers ($) | End of period shares |
| Columbia Commodity Strategy Fund, Institutional 3 Class | |||||||||
| — | 68,521 | (24,668) | 3,246 | 47,099 | — | 718 | — | 2,904 | |
| Columbia Short-Term Cash Fund, 0.136% | |||||||||
| 130,736 | 67,044 | (197,855) | 75 | — | — | (6) | 136 | — | |
| Columbia Solutions Aggressive Portfolio | |||||||||
| 819,074 | 44,500 | (63,396) | 133,592 | 933,770 | — | (191) | — | 83,821 | |
| Total | 949,810 | 136,913 | 980,869 | — | 521 | 136 | |||
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.
| 30 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Portfolio of Investments (continued)
Columbia Adaptive Retirement 2060 Fund, September 30, 2020 (Unaudited)
Columbia Adaptive Retirement 2060 Fund, September 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.
Certain investments that have been
measured at fair value using the net asset value (NAV) per share (or its equivalent) are not categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to reconcile the fair
value hierarchy to the amounts presented in the Portfolio of Investments. The Columbia Solutions Portfolios serve as investment vehicles for the Columbia Adaptive Retirement Funds and each pursues consistent total
returns by seeking to allocate risks across multiple asset classes. Investments in the Columbia Solutions Portfolios may be redeemed on a daily basis without restriction.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Assets at NAV ($) | Total ($) | |
| Investments in Securities | |||||
| Alternative Strategies Funds | 47,099 | — | — | — | 47,099 |
| Exchange-Traded Equity Funds | 46,707 | — | — | — | 46,707 |
| Exchange-Traded Fixed Income Funds | 93,105 | — | — | — | 93,105 |
| Multi-Asset/Tactical Strategies Funds | — | — | — | 933,770 | 933,770 |
| Total Investments in Securities | 186,911 | — | — | 933,770 | 1,120,681 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 31 |
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Columbia Adaptive Retirement 2020 Fund | Columbia Adaptive Retirement 2025 Fund | Columbia Adaptive Retirement 2030 Fund | |
| Assets | |||
| Investments in securities, at value | |||
| Unaffiliated issuers (cost $920,023, $431,457, $291,046, respectively) | $970,305 | $456,026 | $304,376 |
| Affiliated issuers (cost $6,307,550, $2,979,144, $1,997,345, respectively) | 6,828,545 | 3,227,752 | 2,134,888 |
| Receivable for: | |||
| Investments sold | 357,156 | 160,731 | 126,116 |
| Dividends | 4 | 3 | 1 |
| Expense reimbursement due from Investment Manager | 205 | 205 | 205 |
| Prepaid expenses | 44 | 20 | 15 |
| Trustees’ deferred compensation plan | 14,448 | 11,795 | 14,371 |
| Other assets | 13,623 | — | 13,022 |
| Total assets | 8,184,330 | 3,856,532 | 2,592,994 |
| Liabilities | |||
| Due to custodian | — | — | 3,170 |
| Payable for: | |||
| Investments purchased | 55,583 | 33,412 | 14,666 |
| Management services fees | 98 | 46 | 31 |
| Transfer agent fees | 12 | 5 | 175 |
| Compensation of board members | 1,734 | 1,734 | 2,264 |
| Compensation of chief compliance officer | 1 | — | — |
| Audit fees | 5,515 | 5,516 | 5,515 |
| State registration fees | — | 6,259 | — |
| Other expenses | 1,007 | 884 | 1,206 |
| Trustees’ deferred compensation plan | 14,448 | 11,795 | 14,371 |
| Total liabilities | 78,398 | 59,651 | 41,398 |
| Net assets applicable to outstanding capital stock | $8,105,932 | $3,796,881 | $2,551,596 |
| Represented by | |||
| Paid in capital | 7,499,818 | 3,499,772 | 2,379,606 |
| Total distributable earnings (loss) | 606,114 | 297,109 | 171,990 |
| Total - representing net assets applicable to outstanding capital stock | $8,105,932 | $3,796,881 | $2,551,596 |
| Advisor Class | |||
| Net assets | $4,052,899 | $1,898,398 | $2,012,790 |
| Shares outstanding | 374,626 | 175,000 | 188,380 |
| Net asset value per share | $10.82 | $10.85 | $10.68 |
| Institutional 3 Class | |||
| Net assets | $4,053,033 | $1,898,483 | $538,806 |
| Shares outstanding | 374,626 | 175,000 | 50,338 |
| Net asset value per share | $10.82 | $10.85 | $10.70 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 32 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Statement of Assets and Liabilities (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Columbia Adaptive Retirement 2035 Fund | Columbia Adaptive Retirement 2040 Fund | Columbia Adaptive Retirement 2045 Fund | |
| Assets | |||
| Investments in securities, at value | |||
| Unaffiliated issuers (cost $193,454, $172,377, $144,824, respectively) | $203,196 | $180,341 | $152,180 |
| Affiliated issuers (cost $1,331,062, $1,144,408, $974,185, respectively) | 1,438,076 | 1,266,091 | 1,079,205 |
| Receivable for: | |||
| Investments sold | 75,378 | 79,173 | 54,652 |
| Dividends | 1 | 1 | 1 |
| Expense reimbursement due from Investment Manager | 205 | 206 | 205 |
| Prepaid expenses | 8 | 8 | 6 |
| Trustees’ deferred compensation plan | 11,759 | 14,334 | 11,757 |
| Other assets | — | 13,022 | — |
| Total assets | 1,728,623 | 1,553,176 | 1,298,006 |
| Liabilities | |||
| Due to custodian | — | 5,149 | — |
| Payable for: | |||
| Investments purchased | 14,492 | 6,515 | 9,138 |
| Capital shares purchased | — | 1 | — |
| Management services fees | 20 | 18 | 15 |
| Transfer agent fees | 63 | 17 | — |
| Compensation of board members | 1,576 | 2,118 | 1,576 |
| Audit fees | 5,515 | 5,516 | 5,515 |
| State registration fees | 6,259 | — | 6,259 |
| Other expenses | 1,068 | 1,249 | 1,022 |
| Trustees’ deferred compensation plan | 11,759 | 14,334 | 11,757 |
| Total liabilities | 40,752 | 34,917 | 35,282 |
| Net assets applicable to outstanding capital stock | $1,687,871 | $1,518,259 | $1,262,724 |
| Represented by | |||
| Paid in capital | 1,563,173 | 1,368,406 | 1,136,668 |
| Total distributable earnings (loss) | 124,698 | 149,853 | 126,056 |
| Total - representing net assets applicable to outstanding capital stock | $1,687,871 | $1,518,259 | $1,262,724 |
| Advisor Class | |||
| Net assets | $1,136,553 | $936,022 | $705,052 |
| Shares outstanding | 103,155 | 83,766 | 63,224 |
| Net asset value per share | $11.02 | $11.17 | $11.15 |
| Institutional 3 Class | |||
| Net assets | $551,318 | $582,237 | $557,672 |
| Shares outstanding | 50,000 | 52,086 | 50,000 |
| Net asset value per share | $11.03 | $11.18 | $11.15 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 33 |
Statement of Assets and Liabilities (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Columbia Adaptive Retirement 2050 Fund | Columbia Adaptive Retirement 2055 Fund | Columbia Adaptive Retirement 2060 Fund | |
| Assets | |||
| Investments in securities, at value | |||
| Unaffiliated issuers (cost $152,772, $128,059, $133,208, respectively) | $159,914 | $135,035 | $139,812 |
| Affiliated issuers (cost $1,000,385, $859,236, $874,131, respectively) | 1,122,372 | 959,457 | 980,869 |
| Receivable for: | |||
| Investments sold | 71,782 | 46,711 | 67,505 |
| Dividends | 1 | 1 | 1 |
| Expense reimbursement due from Investment Manager | 205 | 204 | 205 |
| Prepaid expenses | 7 | 5 | 7 |
| Trustees’ deferred compensation plan | 14,332 | 11,756 | 14,333 |
| Other assets | 13,022 | — | 13,021 |
| Total assets | 1,381,635 | 1,153,169 | 1,215,753 |
| Liabilities | |||
| Due to custodian | 5,602 | — | 9,138 |
| Payable for: | |||
| Investments purchased | 5,646 | 6,943 | 4,561 |
| Management services fees | 16 | 14 | 14 |
| Transfer agent fees | — | 3 | 2 |
| Compensation of board members | 2,118 | 1,576 | 2,118 |
| Audit fees | 5,516 | 5,515 | 5,515 |
| State registration fees | — | 6,258 | — |
| Other expenses | 1,181 | 998 | 1,206 |
| Trustees’ deferred compensation plan | 14,332 | 11,756 | 14,333 |
| Total liabilities | 34,411 | 33,063 | 36,887 |
| Net assets applicable to outstanding capital stock | $1,347,224 | $1,120,106 | $1,178,866 |
| Represented by | |||
| Paid in capital | 1,196,789 | 999,306 | 1,045,039 |
| Total distributable earnings (loss) | 150,435 | 120,800 | 133,827 |
| Total - representing net assets applicable to outstanding capital stock | $1,347,224 | $1,120,106 | $1,178,866 |
| Advisor Class | |||
| Net assets | $781,864 | $560,039 | $613,577 |
| Shares outstanding | 69,159 | 50,000 | 54,281 |
| Net asset value per share | $11.31 | $11.20 | $11.30 |
| Institutional 3 Class | |||
| Net assets | $565,360 | $560,067 | $565,289 |
| Shares outstanding | 50,000 | 50,000 | 50,000 |
| Net asset value per share | $11.31 | $11.20 | $11.31 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 34 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Statement of Operations
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Columbia Adaptive Retirement 2020 Fund | Columbia Adaptive Retirement 2025 Fund | Columbia Adaptive Retirement 2030 Fund | |
| Net investment income | |||
| Income: | |||
| Dividends — unaffiliated issuers | $10,796 | $5,044 | $3,326 |
| Dividends — affiliated issuers | 962 | 446 | 292 |
| Total income | 11,758 | 5,490 | 3,618 |
| Expenses: | |||
| Management services fees | 18,085 | 8,444 | 5,576 |
| Transfer agent fees | |||
| Advisor Class | 37 | 24 | 1,100 |
| Institutional 3 Class | 32 | 25 | 20 |
| Compensation of board members | 8,014 | 7,982 | 8,502 |
| Custodian fees | 517 | 615 | 565 |
| Printing and postage fees | 3,171 | 3,170 | 3,632 |
| Registration fees | 18,686 | 18,686 | 19,287 |
| Audit fees | 5,515 | 5,516 | 5,515 |
| Legal fees | 104 | 48 | 31 |
| Compensation of chief compliance officer | 1 | — | — |
| Other | 2,257 | 2,235 | 1,943 |
| Total expenses | 56,419 | 46,745 | 46,171 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (38,839) | (38,529) | (39,671) |
| Total net expenses | 17,580 | 8,216 | 6,500 |
| Net investment loss | (5,822) | (2,726) | (2,882) |
| Realized and unrealized gain (loss) — net | |||
| Net realized gain (loss) on: | |||
| Investments — unaffiliated issuers | (3,909) | (1,577) | (1,408) |
| Investments — affiliated issuers | 9,631 | 5,231 | 1,317 |
| Net realized gain (loss) | 5,722 | 3,654 | (91) |
| Net change in unrealized appreciation (depreciation) on: | |||
| Investments — unaffiliated issuers | 51,637 | 23,737 | 15,785 |
| Investments — affiliated issuers | 472,489 | 249,622 | 192,797 |
| Net change in unrealized appreciation (depreciation) | 524,126 | 273,359 | 208,582 |
| Net realized and unrealized gain | 529,848 | 277,013 | 208,491 |
| Net increase in net assets resulting from operations | $524,026 | $274,287 | $205,609 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 35 |
Statement of Operations (continued)
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Columbia Adaptive Retirement 2035 Fund | Columbia Adaptive Retirement 2040 Fund | Columbia Adaptive Retirement 2045 Fund | |
| Net investment income | |||
| Income: | |||
| Dividends — unaffiliated issuers | $2,176 | $1,882 | $1,574 |
| Dividends — affiliated issuers | 187 | 162 | 135 |
| Total income | 2,363 | 2,044 | 1,709 |
| Expenses: | |||
| Management services fees | 3,651 | 3,184 | 2,648 |
| Transfer agent fees | |||
| Advisor Class | 425 | 227 | 72 |
| Institutional 3 Class | 19 | 24 | 19 |
| Compensation of board members | 8,097 | 8,637 | 8,093 |
| Custodian fees | 540 | 658 | 550 |
| Printing and postage fees | 3,208 | 3,642 | 3,171 |
| Registration fees | 18,686 | 19,287 | 18,686 |
| Audit fees | 5,515 | 5,515 | 5,515 |
| Legal fees | 20 | 17 | 15 |
| Other | 2,215 | 1,938 | 2,212 |
| Total expenses | 42,376 | 43,129 | 40,981 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (38,416) | (39,816) | (38,344) |
| Total net expenses | 3,960 | 3,313 | 2,637 |
| Net investment loss | (1,597) | (1,269) | (928) |
| Realized and unrealized gain (loss) — net | |||
| Net realized gain (loss) on: | |||
| Investments — unaffiliated issuers | (825) | (909) | (677) |
| Investments — affiliated issuers | (884) | 366 | (1,099) |
| Net realized loss | (1,709) | (543) | (1,776) |
| Net change in unrealized appreciation (depreciation) on: | |||
| Investments — unaffiliated issuers | 10,140 | 8,567 | 7,111 |
| Investments — affiliated issuers | 147,783 | 144,714 | 134,225 |
| Net change in unrealized appreciation (depreciation) | 157,923 | 153,281 | 141,336 |
| Net realized and unrealized gain | 156,214 | 152,738 | 139,560 |
| Net increase in net assets resulting from operations | $154,617 | $151,469 | $138,632 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 36 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Statement of Operations (continued)
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Columbia Adaptive Retirement 2050 Fund | Columbia Adaptive Retirement 2055 Fund | Columbia Adaptive Retirement 2060 Fund | |
| Net investment income | |||
| Income: | |||
| Dividends — unaffiliated issuers | $1,675 | $1,452 | $1,528 |
| Dividends — affiliated issuers | 141 | 128 | 136 |
| Total income | 1,816 | 1,580 | 1,664 |
| Expenses: | |||
| Management services fees | 2,817 | 2,438 | 2,568 |
| Transfer agent fees | |||
| Advisor Class | 113 | 18 | 51 |
| Institutional 3 Class | 19 | 20 | 18 |
| Compensation of board members | 8,636 | 8,093 | 8,635 |
| Custodian fees | 562 | 485 | 524 |
| Printing and postage fees | 3,602 | 3,170 | 3,638 |
| Registration fees | 19,287 | 18,686 | 19,287 |
| Audit fees | 5,515 | 5,515 | 5,515 |
| Legal fees | 15 | 14 | 15 |
| Other | 1,938 | 2,213 | 1,938 |
| Total expenses | 42,504 | 40,652 | 42,189 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (39,667) | (38,267) | (39,650) |
| Total net expenses | 2,837 | 2,385 | 2,539 |
| Net investment loss | (1,021) | (805) | (875) |
| Realized and unrealized gain (loss) — net | |||
| Net realized gain (loss) on: | |||
| Investments — unaffiliated issuers | (821) | (584) | (855) |
| Investments — affiliated issuers | 592 | (597) | 521 |
| Net realized loss | (229) | (1,181) | (334) |
| Net change in unrealized appreciation (depreciation) on: | |||
| Investments — unaffiliated issuers | 7,590 | 6,725 | 7,079 |
| Investments — affiliated issuers | 151,595 | 132,669 | 136,913 |
| Net change in unrealized appreciation (depreciation) | 159,185 | 139,394 | 143,992 |
| Net realized and unrealized gain | 158,956 | 138,213 | 143,658 |
| Net increase in net assets resulting from operations | $157,935 | $137,408 | $142,783 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 37 |
Statement of Changes in Net Assets
| Columbia Adaptive Retirement 2020 Fund | Columbia Adaptive Retirement 2025 Fund | |||
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||||
| Net investment income (loss) | $(5,822) | $161,052 | $(2,726) | $78,298 |
| Net realized gain | 5,722 | 200,966 | 3,654 | 110,040 |
| Net change in unrealized appreciation (depreciation) | 524,126 | (60,090) | 273,359 | (43,014) |
| Net increase in net assets resulting from operations | 524,026 | 301,928 | 274,287 | 145,324 |
| Distributions to shareholders | ||||
| Net investment income and net realized gains | ||||
| Advisor Class | — | (168,934) | — | (86,268) |
| Institutional 3 Class | — | (168,499) | — | (86,268) |
| Total distributions to shareholders | — | (337,433) | — | (172,536) |
| Increase in net assets from capital stock activity | — | 144 | — | — |
| Total increase (decrease) in net assets | 524,026 | (35,361) | 274,287 | (27,212) |
| Net assets at beginning of period | 7,581,906 | 7,617,267 | 3,522,594 | 3,549,806 |
| Net assets at end of period | $8,105,932 | $7,581,906 | $3,796,881 | $3,522,594 |
| Columbia Adaptive Retirement 2020 Fund | Columbia Adaptive Retirement 2025 Fund | |||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||
| September 30, 2020 (Unaudited) | March 31, 2020 | September 30, 2020 (Unaudited) | March 31, 2020 | |||||
| Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||||||
| Subscriptions | — | — | 966 | 10,000 | — | — | — | — |
| Distributions reinvested | — | — | 42 | 434 | — | — | — | — |
| Redemptions | — | — | (1,008) | (10,290) | — | — | — | — |
| Net increase | — | — | — | 144 | — | — | — | — |
| Total net increase | — | — | — | 144 | — | — | — | — |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 38 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Statement of Changes in Net Assets (continued)
| Columbia Adaptive Retirement 2030 Fund | Columbia Adaptive Retirement 2035 Fund | |||
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||||
| Net investment income (loss) | $(2,882) | $48,270 | $(1,597) | $34,823 |
| Net realized gain (loss) | (91) | 78,972 | (1,709) | 54,730 |
| Net change in unrealized appreciation (depreciation) | 208,582 | (74,243) | 157,923 | (52,491) |
| Net increase in net assets resulting from operations | 205,609 | 52,999 | 154,617 | 37,062 |
| Distributions to shareholders | ||||
| Net investment income and net realized gains | ||||
| Advisor Class | — | (79,705) | — | (52,077) |
| Institutional 3 Class | — | (24,000) | — | (28,914) |
| Total distributions to shareholders | — | (103,705) | — | (80,991) |
| Increase in net assets from capital stock activity | 113,674 | 1,138,256 | 109,000 | 454,892 |
| Total increase in net assets | 319,283 | 1,087,550 | 263,617 | 410,963 |
| Net assets at beginning of period | 2,232,313 | 1,144,763 | 1,424,254 | 1,013,291 |
| Net assets at end of period | $2,551,596 | $2,232,313 | $1,687,871 | $1,424,254 |
| Columbia Adaptive Retirement 2030 Fund | Columbia Adaptive Retirement 2035 Fund | |||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||
| September 30, 2020 (Unaudited) | March 31, 2020 | September 30, 2020 (Unaudited) | March 31, 2020 | |||||
| Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||||||
| Advisor Class | ||||||||
| Subscriptions | 11,340 | 113,674 | 106,532 | 1,082,395 | 10,665 | 109,000 | 40,301 | 431,650 |
| Distributions reinvested | — | — | 5,423 | 55,861 | — | — | 2,189 | 23,242 |
| Net increase | 11,340 | 113,674 | 111,955 | 1,138,256 | 10,665 | 109,000 | 42,490 | 454,892 |
| Total net increase | 11,340 | 113,674 | 111,955 | 1,138,256 | 10,665 | 109,000 | 42,490 | 454,892 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 39 |
Statement of Changes in Net Assets (continued)
| Columbia Adaptive Retirement 2040 Fund | Columbia Adaptive Retirement 2045 Fund | |||
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||||
| Net investment income (loss) | $(1,269) | $28,613 | $(928) | $27,803 |
| Net realized gain (loss) | (543) | 56,886 | (1,776) | 57,407 |
| Net change in unrealized appreciation (depreciation) | 153,281 | (37,429) | 141,336 | (39,922) |
| Net increase in net assets resulting from operations | 151,469 | 48,070 | 138,632 | 45,288 |
| Distributions to shareholders | ||||
| Net investment income and net realized gains | ||||
| Advisor Class | — | (35,561) | — | (35,195) |
| Institutional 3 Class | — | (30,033) | — | (35,195) |
| Total distributions to shareholders | — | (65,594) | — | (70,390) |
| Increase in net assets from capital stock activity | 256,370 | 93,576 | 136,734 | — |
| Total increase (decrease) in net assets | 407,839 | 76,052 | 275,366 | (25,102) |
| Net assets at beginning of period | 1,110,420 | 1,034,368 | 987,358 | 1,012,460 |
| Net assets at end of period | $1,518,259 | $1,110,420 | $1,262,724 | $987,358 |
| Columbia Adaptive Retirement 2040 Fund | Columbia Adaptive Retirement 2045 Fund | |||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||
| September 30, 2020 (Unaudited) | March 31, 2020 | September 30, 2020 (Unaudited) | March 31, 2020 | |||||
| Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||||||
| Advisor Class | ||||||||
| Subscriptions | 24,055 | 246,999 | 8,338 | 85,980 | 13,278 | 137,349 | — | — |
| Distributions reinvested | — | — | 560 | 6,028 | — | — | — | — |
| Redemptions | — | — | (1,055) | (11,498) | (54) | (615) | — | — |
| Net increase | 24,055 | 246,999 | 7,843 | 80,510 | 13,224 | 136,734 | — | — |
| Institutional 3 Class | ||||||||
| Subscriptions | 900 | 9,480 | 1,160 | 12,683 | — | — | — | — |
| Distributions reinvested | — | — | 39 | 422 | — | — | — | — |
| Redemptions | (10) | (109) | (3) | (39) | — | — | — | — |
| Net increase | 890 | 9,371 | 1,196 | 13,066 | — | — | — | — |
| Total net increase | 24,945 | 256,370 | 9,039 | 93,576 | 13,224 | 136,734 | — | — |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 40 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Statement of Changes in Net Assets (continued)
| Columbia Adaptive Retirement 2050 Fund | Columbia Adaptive Retirement 2055 Fund | |||
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||||
| Net investment income (loss) | $(1,021) | $27,905 | $(805) | $28,593 |
| Net realized gain (loss) | (229) | 61,040 | (1,181) | 59,129 |
| Net change in unrealized appreciation (depreciation) | 159,185 | (44,012) | 139,394 | (43,270) |
| Net increase in net assets resulting from operations | 157,935 | 44,933 | 137,408 | 44,452 |
| Distributions to shareholders | ||||
| Net investment income and net realized gains | ||||
| Advisor Class | — | (33,851) | — | (37,102) |
| Institutional 3 Class | — | (33,749) | — | (37,143) |
| Total distributions to shareholders | — | (67,600) | — | (74,245) |
| Increase in net assets from capital stock activity | 191,692 | 5,171 | — | — |
| Total increase (decrease) in net assets | 349,627 | (17,496) | 137,408 | (29,793) |
| Net assets at beginning of period | 997,597 | 1,015,093 | 982,698 | 1,012,491 |
| Net assets at end of period | $1,347,224 | $997,597 | $1,120,106 | $982,698 |
| Columbia Adaptive Retirement 2050 Fund | Columbia Adaptive Retirement 2055 Fund | |||||||
| Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||
| September 30, 2020 (Unaudited) | March 31, 2020 | September 30, 2020 (Unaudited) | March 31, 2020 | |||||
| Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||||||
| Advisor Class | ||||||||
| Subscriptions | 20,115 | 207,492 | 493 | 5,027 | — | — | — | — |
| Distributions reinvested | — | — | 13 | 144 | — | — | — | — |
| Redemptions | (1,462) | (15,800) | — | — | — | — | — | — |
| Net increase | 18,653 | 191,692 | 506 | 5,171 | — | — | — | — |
| Total net increase | 18,653 | 191,692 | 506 | 5,171 | — | — | — | — |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 41 |
Statement of Changes in Net Assets (continued)
| Columbia Adaptive Retirement 2060 Fund | ||
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||
| Net investment income (loss) | $(875) | $28,244 |
| Net realized gain (loss) | (334) | 60,798 |
| Net change in unrealized appreciation (depreciation) | 143,992 | (44,664) |
| Net increase in net assets resulting from operations | 142,783 | 44,378 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Advisor Class | — | (34,839) |
| Institutional 3 Class | — | (34,036) |
| Total distributions to shareholders | — | (68,875) |
| Increase in net assets from capital stock activity | 26,952 | 11,876 |
| Total increase (decrease) in net assets | 169,735 | (12,621) |
| Net assets at beginning of period | 1,009,131 | 1,021,752 |
| Net assets at end of period | $1,178,866 | $1,009,131 |
| Columbia Adaptive Retirement 2060 Fund | ||||
| Six Months Ended | Year Ended | |||
| September 30, 2020 (Unaudited) | March 31, 2020 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Advisor Class | ||||
| Subscriptions | 4,281 | 46,196 | 1,013 | 11,033 |
| Distributions reinvested | — | — | 78 | 843 |
| Redemptions | (1,720) | (19,244) | — | — |
| Net increase | 2,561 | 26,952 | 1,091 | 11,876 |
| Total net increase | 2,561 | 26,952 | 1,091 | 11,876 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 42 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights
Columbia Adaptive Retirement 2020 Fund
Columbia Adaptive Retirement 2020 Fund
The following tables are intended
to help you understand the Funds’ 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, a fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.12 | (0.01) | 0.71 | 0.70 | — | — | — |
| Year Ended 3/31/2020 | $10.17 | 0.21 | 0.19 | 0.40 | (0.41) | (0.04) | (0.45) |
| Year Ended 3/31/2019 | $10.04 | 0.33 | 0.18 | 0.51 | (0.35) | (0.03) | (0.38) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.04 | 0.07 | (0.03) | — | (0.03) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.12 | (0.01) | 0.71 | 0.70 | — | — | — |
| Year Ended 3/31/2020 | $10.17 | 0.21 | 0.19 | 0.40 | (0.41) | (0.04) | (0.45) |
| Year Ended 3/31/2019 | $10.04 | 0.33 | 0.18 | 0.51 | (0.35) | (0.03) | (0.38) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.04 | 0.07 | (0.03) | — | (0.03) |
| 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 Fund commenced operations on October 24, 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.
| 44 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2020 Fund
Columbia Adaptive Retirement 2020 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.82 | 6.92% | 1.42%(c) | 0.44%(c) | (0.15%)(c) | 8% | $4,053 |
| Year Ended 3/31/2020 | $10.12 | 3.80% | 1.52% | 0.43% | 2.05% | 25% | $3,791 |
| Year Ended 3/31/2019 | $10.17 | 5.41% | 1.87% | 0.42% | 3.27% | 26% | $3,809 |
| Year Ended 3/31/2018(d) | $10.04 | 0.71% | 2.14%(c) | 0.41%(c) | 0.58%(c) | 8% | $2,509 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.82 | 6.92% | 1.42%(c) | 0.44%(c) | (0.15%)(c) | 8% | $4,053 |
| Year Ended 3/31/2020 | $10.12 | 3.80% | 1.52% | 0.42% | 2.05% | 25% | $3,791 |
| Year Ended 3/31/2019 | $10.17 | 5.41% | 1.87% | 0.42% | 3.27% | 26% | $3,809 |
| Year Ended 3/31/2018(d) | $10.04 | 0.71% | 2.14%(c) | 0.41%(c) | 0.58%(c) | 8% | $2,509 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 45 |
Financial Highlights
Columbia Adaptive Retirement 2025 Fund
Columbia Adaptive Retirement 2025 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.06 | (0.01) | 0.80 | 0.79 | — | — | — |
| Year Ended 3/31/2020 | $10.14 | 0.22 | 0.19 | 0.41 | (0.43) | (0.06) | (0.49) |
| Year Ended 3/31/2019(d) | $10.00 | 0.34 | 0.20 | 0.54 | (0.38) | (0.02) | (0.40) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.06 | (0.01) | 0.80 | 0.79 | — | — | — |
| Year Ended 3/31/2020 | $10.14 | 0.22 | 0.19 | 0.41 | (0.43) | (0.06) | (0.49) |
| Year Ended 3/31/2019(d) | $10.00 | 0.34 | 0.20 | 0.54 | (0.38) | (0.02) | (0.40) |
| 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 Fund commenced operations on April 4, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 46 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2025 Fund
Columbia Adaptive Retirement 2025 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.85 | 7.85% | 2.53%(c) | 0.45%(c) | (0.15%)(c) | 8% | $1,898 |
| Year Ended 3/31/2020 | $10.06 | 3.89% | 2.78% | 0.42% | 2.13% | 29% | $1,761 |
| Year Ended 3/31/2019(d) | $10.14 | 5.71% | 3.75%(c) | 0.42%(c) | 3.50%(c) | 28% | $1,775 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.85 | 7.85% | 2.53%(c) | 0.44%(c) | (0.15%)(c) | 8% | $1,898 |
| Year Ended 3/31/2020 | $10.06 | 3.89% | 2.78% | 0.42% | 2.13% | 29% | $1,761 |
| Year Ended 3/31/2019(d) | $10.14 | 5.71% | 3.75%(c) | 0.42%(c) | 3.50%(c) | 28% | $1,775 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 47 |
Financial Highlights
Columbia Adaptive Retirement 2030 Fund
Columbia Adaptive Retirement 2030 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.82 | (0.01) | 0.87 | 0.86 | — | — | — |
| Year Ended 3/31/2020 | $9.91 | 0.31 | 0.07 | 0.38 | (0.45) | (0.02) | (0.47) |
| Year Ended 3/31/2019 | $10.05 | 0.35 | 0.20 | 0.55 | (0.41) | (0.28) | (0.69) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.06 | 0.09 | (0.04) | — | (0.04) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.83 | (0.01) | 0.88 | 0.87 | — | — | — |
| Year Ended 3/31/2020 | $9.92 | 0.23 | 0.16 | 0.39 | (0.46) | (0.02) | (0.48) |
| Year Ended 3/31/2019 | $10.05 | 0.34 | 0.22 | 0.56 | (0.41) | (0.28) | (0.69) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.06 | 0.09 | (0.04) | — | (0.04) |
| 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 Fund commenced operations on October 24, 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.
| 48 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2030 Fund
Columbia Adaptive Retirement 2030 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.68 | 8.76% | 3.80%(c) | 0.56%(c) | (0.26%)(c) | 10% | $2,013 |
| Year Ended 3/31/2020 | $9.82 | 3.65% | 5.30% | 0.52% | 3.00% | 41% | $1,738 |
| Year Ended 3/31/2019 | $9.91 | 6.19% | 8.55% | 0.45% | 3.40% | 23% | $645 |
| Year Ended 3/31/2018(d) | $10.05 | 0.86% | 1.29%(c) | 0.41%(c) | 0.67%(c) | 9% | $5,115 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.70 | 8.85% | 3.69%(c) | 0.44%(c) | (0.15%)(c) | 10% | $539 |
| Year Ended 3/31/2020 | $9.83 | 3.68% | 5.21% | 0.42% | 2.20% | 41% | $495 |
| Year Ended 3/31/2019 | $9.92 | 6.31% | 8.52% | 0.43% | 3.34% | 23% | $500 |
| Year Ended 3/31/2018(d) | $10.05 | 0.86% | 1.29%(c) | 0.41%(c) | 0.66%(c) | 9% | $5,014 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 49 |
Financial Highlights
Columbia Adaptive Retirement 2035 Fund
Columbia Adaptive Retirement 2035 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.99 | (0.01) | 1.04 | 1.03 | — | — | — |
| Year Ended 3/31/2020 | $10.13 | 0.31 | 0.13 | 0.44 | (0.52) | (0.06) | (0.58) |
| Year Ended 3/31/2019(d) | $10.00 | 0.40 | 0.18 | 0.58 | (0.43) | (0.02) | (0.45) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.00 | (0.01) | 1.04 | 1.03 | — | — | — |
| Year Ended 3/31/2020 | $10.13 | 0.25 | 0.20 | 0.45 | (0.52) | (0.06) | (0.58) |
| Year Ended 3/31/2019(d) | $10.00 | 0.40 | 0.18 | 0.58 | (0.43) | (0.02) | (0.45) |
| 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 Fund commenced operations on April 4, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 50 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2035 Fund
Columbia Adaptive Retirement 2035 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.02 | 10.31% | 5.32%(c) | 0.52%(c) | (0.23%)(c) | 10% | $1,137 |
| Year Ended 3/31/2020 | $9.99 | 3.97% | 6.94% | 0.48% | 2.90% | 42% | $924 |
| Year Ended 3/31/2019(d) | $10.13 | 6.31% | 11.96%(c) | 0.43%(c) | 4.04%(c) | 32% | $507 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.03 | 10.30% | 5.25%(c) | 0.44%(c) | (0.15%)(c) | 10% | $551 |
| Year Ended 3/31/2020 | $10.00 | 4.09% | 6.89% | 0.42% | 2.37% | 42% | $500 |
| Year Ended 3/31/2019(d) | $10.13 | 6.31% | 11.96%(c) | 0.43%(c) | 4.04%(c) | 32% | $507 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 51 |
Financial Highlights
Columbia Adaptive Retirement 2040 Fund
Columbia Adaptive Retirement 2040 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.01 | (0.01) | 1.17 | 1.16 | — | — | — |
| Year Ended 3/31/2020 | $10.15 | 0.27 | 0.18 | 0.45 | (0.55) | (0.04) | (0.59) |
| Year Ended 3/31/2019 | $10.05 | 0.43 | 0.16 | 0.59 | (0.45) | (0.04) | (0.49) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.07 | 0.10 | (0.04) | (0.01) | (0.05) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.01 | (0.01) | 1.18 | 1.17 | — | — | — |
| Year Ended 3/31/2020 | $10.15 | 0.26 | 0.19 | 0.45 | (0.55) | (0.04) | (0.59) |
| Year Ended 3/31/2019 | $10.05 | 0.44 | 0.15 | 0.59 | (0.45) | (0.04) | (0.49) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.07 | 0.10 | (0.04) | (0.01) | (0.05) |
| 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 Fund commenced operations on October 24, 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.
| 52 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2040 Fund
Columbia Adaptive Retirement 2040 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.17 | 11.59% | 6.19%(c) | 0.50%(c) | (0.21%)(c) | 10% | $936 |
| Year Ended 3/31/2020 | $10.01 | 4.03% | 7.83% | 0.45% | 2.51% | 41% | $598 |
| Year Ended 3/31/2019 | $10.15 | 6.54% | 10.76% | 0.43% | 4.26% | 30% | $527 |
| Year Ended 3/31/2018(d) | $10.05 | 0.96% | 8.70%(c) | 0.42%(c) | 0.72%(c) | 9% | $531 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.18 | 11.69% | 6.16%(c) | 0.44%(c) | (0.15%)(c) | 10% | $582 |
| Year Ended 3/31/2020 | $10.01 | 4.05% | 7.84% | 0.42% | 2.45% | 41% | $513 |
| Year Ended 3/31/2019 | $10.15 | 6.55% | 10.75% | 0.43% | 4.34% | 30% | $508 |
| Year Ended 3/31/2018(d) | $10.05 | 0.96% | 8.69%(c) | 0.42%(c) | 0.72%(c) | 9% | $503 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 53 |
Financial Highlights
Columbia Adaptive Retirement 2045 Fund
Columbia Adaptive Retirement 2045 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.87 | (0.01) | 1.29 | 1.28 | — | — | — |
| Year Ended 3/31/2020 | $10.12 | 0.28 | 0.17 | 0.45 | (0.60) | (0.10) | (0.70) |
| Year Ended 3/31/2019(d) | $10.00 | 0.45 | 0.16 | 0.61 | (0.46) | (0.03) | (0.49) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.87 | (0.01) | 1.29 | 1.28 | — | — | — |
| Year Ended 3/31/2020 | $10.12 | 0.28 | 0.17 | 0.45 | (0.60) | (0.10) | (0.70) |
| Year Ended 3/31/2019(d) | $10.00 | 0.45 | 0.16 | 0.61 | (0.46) | (0.03) | (0.49) |
| 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 Fund commenced operations on April 4, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 54 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2045 Fund
Columbia Adaptive Retirement 2045 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.15 | 12.97% | 7.06%(c) | 0.46%(c) | (0.17%)(c) | 9% | $705 |
| Year Ended 3/31/2020 | $9.87 | 3.92% | 8.27% | 0.43% | 2.60% | 35% | $494 |
| Year Ended 3/31/2019(d) | $10.12 | 6.89% | 11.97%(c) | 0.43%(c) | 4.59%(c) | 30% | $506 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.15 | 12.97% | 7.06%(c) | 0.44%(c) | (0.15%)(c) | 9% | $558 |
| Year Ended 3/31/2020 | $9.87 | 3.92% | 8.27% | 0.42% | 2.61% | 35% | $494 |
| Year Ended 3/31/2019(d) | $10.12 | 6.89% | 11.98%(c) | 0.43%(c) | 4.59%(c) | 30% | $506 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 55 |
Financial Highlights
Columbia Adaptive Retirement 2050 Fund
Columbia Adaptive Retirement 2050 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.93 | (0.01) | 1.39 | 1.38 | — | — | — |
| Year Ended 3/31/2020 | $10.15 | 0.28 | 0.17 | 0.45 | (0.61) | (0.06) | (0.67) |
| Year Ended 3/31/2019 | $10.06 | 0.47 | 0.15 | 0.62 | (0.49) | (0.04) | (0.53) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.08 | 0.11 | (0.05) | — | (0.05) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.93 | (0.01) | 1.39 | 1.38 | — | — | — |
| Year Ended 3/31/2020 | $10.15 | 0.28 | 0.17 | 0.45 | (0.61) | (0.06) | (0.67) |
| Year Ended 3/31/2019 | $10.06 | 0.47 | 0.15 | 0.62 | (0.49) | (0.04) | (0.53) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.08 | 0.11 | (0.05) | — | (0.05) |
| 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 Fund commenced operations on October 24, 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.
| 56 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2050 Fund
Columbia Adaptive Retirement 2050 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.31 | 13.90% | 6.87%(c) | 0.47%(c) | (0.18%)(c) | 11% | $782 |
| Year Ended 3/31/2020 | $9.93 | 3.91% | 8.16% | 0.43% | 2.60% | 31% | $501 |
| Year Ended 3/31/2019 | $10.15 | 7.01% | 11.02% | 0.43% | 4.73% | 27% | $508 |
| Year Ended 3/31/2018(d) | $10.06 | 1.08% | 8.76%(c) | 0.42%(c) | 0.77%(c) | 8% | $503 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.31 | 13.90% | 6.89%(c) | 0.44%(c) | (0.14%)(c) | 11% | $565 |
| Year Ended 3/31/2020 | $9.93 | 3.91% | 8.16% | 0.42% | 2.60% | 31% | $496 |
| Year Ended 3/31/2019 | $10.15 | 7.01% | 11.02% | 0.43% | 4.73% | 27% | $508 |
| Year Ended 3/31/2018(d) | $10.06 | 1.08% | 8.76%(c) | 0.42%(c) | 0.77%(c) | 8% | $503 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 57 |
Financial Highlights
Columbia Adaptive Retirement 2055 Fund
Columbia Adaptive Retirement 2055 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.83 | (0.01) | 1.38 | 1.37 | — | — | — |
| Year Ended 3/31/2020 | $10.12 | 0.29 | 0.16 | 0.45 | (0.63) | (0.11) | (0.74) |
| Year Ended 3/31/2019(d) | $10.00 | 0.47 | 0.15 | 0.62 | (0.47) | (0.03) | (0.50) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.83 | (0.01) | 1.38 | 1.37 | — | — | — |
| Year Ended 3/31/2020 | $10.12 | 0.29 | 0.16 | 0.45 | (0.63) | (0.11) | (0.74) |
| Year Ended 3/31/2019(d) | $10.00 | 0.47 | 0.15 | 0.62 | (0.47) | (0.03) | (0.50) |
| 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 Fund commenced operations on April 4, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 58 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2055 Fund
Columbia Adaptive Retirement 2055 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.20 | 13.94% | 7.61%(c) | 0.45%(c) | (0.15%)(c) | 9% | $560 |
| Year Ended 3/31/2020 | $9.83 | 3.82% | 8.25% | 0.43% | 2.67% | 33% | $491 |
| Year Ended 3/31/2019(d) | $10.12 | 7.05% | 12.00%(c) | 0.43%(c) | 4.73%(c) | 29% | $506 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.20 | 13.94% | 7.61%(c) | 0.44%(c) | (0.15%)(c) | 9% | $560 |
| Year Ended 3/31/2020 | $9.83 | 3.83% | 8.25% | 0.42% | 2.68% | 33% | $491 |
| Year Ended 3/31/2019(d) | $10.12 | 7.05% | 12.00%(c) | 0.43%(c) | 4.73%(c) | 29% | $506 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 59 |
Financial Highlights
Columbia Adaptive Retirement 2060 Fund
Columbia Adaptive Retirement 2060 Fund
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.92 | (0.01) | 1.39 | 1.38 | — | — | — |
| Year Ended 3/31/2020 | $10.15 | 0.28 | 0.17 | 0.45 | (0.62) | (0.06) | (0.68) |
| Year Ended 3/31/2019 | $10.06 | 0.47 | 0.14 | 0.61 | (0.49) | (0.03) | (0.52) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.08 | 0.11 | (0.04) | (0.01) | (0.05) |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.92 | (0.01) | 1.40 | 1.39 | — | — | — |
| Year Ended 3/31/2020 | $10.15 | 0.28 | 0.17 | 0.45 | (0.62) | (0.06) | (0.68) |
| Year Ended 3/31/2019 | $10.06 | 0.47 | 0.14 | 0.61 | (0.49) | (0.03) | (0.52) |
| Year Ended 3/31/2018(d) | $10.00 | 0.03 | 0.08 | 0.11 | (0.04) | (0.01) | (0.05) |
| 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 Fund commenced operations on October 24, 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.
| 60 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Financial Highlights (continued)
Columbia Adaptive Retirement 2060 Fund
Columbia Adaptive Retirement 2060 Fund
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.30 | 13.91% | 7.50%(c) | 0.46%(c) | (0.16%)(c) | 12% | $614 |
| Year Ended 3/31/2020 | $9.92 | 3.85% | 8.09% | 0.43% | 2.60% | 31% | $513 |
| Year Ended 3/31/2019 | $10.15 | 6.93% | 10.98% | 0.43% | 4.73% | 26% | $514 |
| Year Ended 3/31/2018(d) | $10.06 | 1.11% | 8.73%(c) | 0.42%(c) | 0.77%(c) | 7% | $508 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.31 | 14.01% | 7.50%(c) | 0.44%(c) | (0.14%)(c) | 12% | $565 |
| Year Ended 3/31/2020 | $9.92 | 3.86% | 8.09% | 0.42% | 2.61% | 31% | $496 |
| Year Ended 3/31/2019 | $10.15 | 6.93% | 10.97% | 0.43% | 4.73% | 26% | $508 |
| Year Ended 3/31/2018(d) | $10.06 | 1.11% | 8.73%(c) | 0.42%(c) | 0.77%(c) | 7% | $503 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 61 |
Notes to Financial Statements
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 1. Organization
Columbia Funds Series Trust I,
(the Trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as open-end management investment companies. Columbia Funds Series Trust I is organized as a Massachusetts business trust.
Information presented in these financial statements pertains to the following series of the Trust (each, a Fund and collectively, the Funds): Columbia Adaptive Retirement 2020 Fund, Columbia Adaptive Retirement 2025
Fund, Columbia Adaptive Retirement 2030 Fund, Columbia Adaptive Retirement 2035 Fund, Columbia Adaptive Retirement 2040 Fund, Columbia Adaptive Retirement 2045 Fund, Columbia Adaptive Retirement 2050 Fund, Columbia
Adaptive Retirement 2055 Fund and Columbia Adaptive Retirement 2060 Fund. Each Fund currently operates as a non-diversified fund.
Each Fund is a
“fund-of-funds”, investing significantly in affiliated funds managed by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc.
(Ameriprise Financial), or its affiliates, as well as third-party advised (unaffiliated) funds, including exchange-traded funds (collectively, Underlying Funds). Each Fund is exposed to the same risks as the
Underlying Funds in direct proportion to the allocation of its assets among the Underlying Funds. For information on the investment strategies and risks of the Underlying Funds, please refer to the Fund’s
current prospectus and the prospectuses of the Underlying Funds, which are available, free of charge, from the Securities and Exchange Commission website at www.sec.gov.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Funds offer 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 structure. Different share classes may have different minimum
initial investment amounts and pay different 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.
Advisor Class and Institutional 3
Class shares are available for purchase through authorized investment professionals, to omnibus retirement plans or to institutional and to certain other investors as described in the Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
Each 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 Funds in the preparation of their financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any
exchange are valued at the mean between the closing bid and asked prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Investments in the Underlying Funds
(other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
| 62 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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 Funds’ 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
Corporate actions and dividend
income are recorded on the ex-dividend date.
The Funds may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
Income and capital gain
distributions from the Underlying Funds, if any, are recorded on the ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Funds 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 a Fund are
charged to that 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 directly to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of a 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
For federal income tax purposes,
each Fund is treated as a separate entity. The Funds intend to qualify each year as separate regulated investment companies under Subchapter M of the Internal Revenue Code, as amended, and will distribute
substantially all of their investment company taxable income and net capital gain, if any, for their tax year, and as such will
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 63 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
not be subject to federal income taxes. In
addition, the Funds intend to distribute in each calendar year substantially all of their ordinary income, capital gain net income and certain other amounts, if any, such that the Funds should not be subject to
federal excise tax. Therefore, no federal income or excise tax provisions are recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Funds’ contracts with their service providers contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Funds cannot be determined, and the Funds have no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees and
underlying fund fees
The Funds have entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager). Under the Management Agreement, the Investment Manager provides each Fund with investment research and advice, as well
as administrative and accounting services. The management services fee is an annual fee that is a blend of (i) 0.02% on assets invested in affiliated Underlying Funds that pay a management or advisory fee to the
Investment Manager and (ii) 0.47% on its assets that are invested in securities, instruments and other assets not described above, including without limitation affiliated funds that do not pay a management or advisory
fee to the Investment Manager, third party funds, derivatives and individual securities.
The annualized effective management
services fee rates based on each Fund’s average daily net assets for the six months ended September 30, 2020 were as follows:
| Effective management services fee rate (%) | |
| Columbia Adaptive Retirement 2020 Fund | 0.46 |
| Columbia Adaptive Retirement 2025 Fund | 0.46 |
| Columbia Adaptive Retirement 2030 Fund | 0.46 |
| Columbia Adaptive Retirement 2035 Fund | 0.46 |
| Columbia Adaptive Retirement 2040 Fund | 0.46 |
| Columbia Adaptive Retirement 2045 Fund | 0.46 |
| Columbia Adaptive Retirement 2050 Fund | 0.46 |
| Columbia Adaptive Retirement 2055 Fund | 0.46 |
| Columbia Adaptive Retirement 2060 Fund | 0.46 |
In addition to the fees and
expenses which the Funds bear directly, the Funds indirectly bear a pro rata share of the fees and expenses of the Underlying Funds in which the Funds invest. Because the Underlying Funds have varied expense and fee
levels and the Funds may own different proportions of Underlying Funds at different times, the amount of fees and expenses incurred indirectly by the Funds will vary. These expenses are not reflected in the expenses
shown in Statement of Operations and are not included in the ratios to average net assets shown in the Financial Highlights.
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 Funds 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 each Fund’s assets, and all amounts payable
under the Deferred Plan constitute a general unsecured obligation of the Funds.
| 64 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Funds 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 Funds, 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 September
30, 2020, the Funds’ annualized effective transfer agency fee rates as a percentage of average daily net assets of each class were as follows:
| Fund | Advisor Class (%) | Institutional 3 Class (%) |
| Columbia Adaptive Retirement 2020 Fund | 0.00 | 0.00 |
| Columbia Adaptive Retirement 2025 Fund | 0.00 | 0.00 |
| Columbia Adaptive Retirement 2030 Fund | 0.11 | 0.01 |
| Columbia Adaptive Retirement 2035 Fund | 0.08 | 0.01 |
| Columbia Adaptive Retirement 2040 Fund | 0.05 | 0.01 |
| Columbia Adaptive Retirement 2045 Fund | 0.02 | 0.01 |
| Columbia Adaptive Retirement 2050 Fund | 0.03 | 0.01 |
| Columbia Adaptive Retirement 2055 Fund | 0.01 | 0.01 |
| Columbia Adaptive Retirement 2060 Fund | 0.02 | 0.01 |
Distribution and service fees
The Funds have 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 Funds
do not pay the Distributor a fee for the distribution services it provides to the Funds.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 65 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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 each Fund’s net operating expenses, including indirect expenses of the Underlying Funds, after giving effect to fees waived/expenses reimbursed and any balance
credits and/or overdraft charges from the Funds’ custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| Fee Rate Contractual through July 31, 2030 | ||
| Advisor Class (%) | Institutional 3 Class (%) | |
| Columbia Adaptive Retirement 2020 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2025 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2030 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2035 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2040 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2045 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2050 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2055 Fund | 0.68 | 0.50 |
| Columbia Adaptive Retirement 2060 Fund | 0.68 | 0.50 |
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), 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.
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 September 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:
| Fund | Tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized appreciation ($) |
| Columbia Adaptive Retirement 2020 Fund | 7,228,000 | 571,000 | — | 571,000 |
| Columbia Adaptive Retirement 2025 Fund | 3,411,000 | 273,000 | — | 273,000 |
| Columbia Adaptive Retirement 2030 Fund | 2,288,000 | 151,000 | — | 151,000 |
| Columbia Adaptive Retirement 2035 Fund | 1,525,000 | 116,000 | — | 116,000 |
| Columbia Adaptive Retirement 2040 Fund | 1,317,000 | 129,000 | — | 129,000 |
| Columbia Adaptive Retirement 2045 Fund | 1,119,000 | 112,000 | — | 112,000 |
| Columbia Adaptive Retirement 2050 Fund | 1,153,000 | 129,000 | — | 129,000 |
| Columbia Adaptive Retirement 2055 Fund | 987,000 | 107,000 | — | 107,000 |
| Columbia Adaptive Retirement 2060 Fund | 1,007,000 | 114,000 | — | 114,000 |
| 66 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Funds will elect to treat the following late-year ordinary losses and post-October capital losses at March 31, 2020 as arising on April 1, 2020.
| Fund | Late year ordinary losses ($) | Post-October capital losses ($) |
| Columbia Adaptive Retirement 2020 Fund | 5,052 | — |
| Columbia Adaptive Retirement 2025 Fund | 2,333 | — |
| Columbia Adaptive Retirement 2030 Fund | 2,109 | — |
| Columbia Adaptive Retirement 2035 Fund | 1,192 | — |
| Columbia Adaptive Retirement 2040 Fund | 805 | — |
| Columbia Adaptive Retirement 2045 Fund | 682 | — |
| Columbia Adaptive Retirement 2050 Fund | 695 | — |
| Columbia Adaptive Retirement 2055 Fund | 684 | — |
| Columbia Adaptive Retirement 2060 Fund | 702 | — |
Management of the Funds has
concluded that there are no significant uncertain tax positions in the Funds that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment
at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Funds’ federal tax returns for
the prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
For the six months ended
September 30, 2020, the cost of purchases and proceeds from sales of securities, excluding short-term investments and derivatives, if any, for each Fund aggregated to:
| Purchases ($) | Proceeds from sales ($) | |
| Columbia Adaptive Retirement 2020 Fund | 1,114,235 | 557,637 |
| Columbia Adaptive Retirement 2025 Fund | 549,890 | 292,457 |
| Columbia Adaptive Retirement 2030 Fund | 472,845 | 218,485 |
| Columbia Adaptive Retirement 2035 Fund | 351,474 | 150,099 |
| Columbia Adaptive Retirement 2040 Fund | 434,875 | 130,478 |
| Columbia Adaptive Retirement 2045 Fund | 287,176 | 93,202 |
| Columbia Adaptive Retirement 2050 Fund | 362,184 | 128,072 |
| Columbia Adaptive Retirement 2055 Fund | 153,914 | 91,578 |
| Columbia Adaptive Retirement 2060 Fund | 201,879 | 125,102 |
The amount of purchase and sale
activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
Each Fund may invest in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by each Fund and other affiliated funds (the Affiliated MMF). The income earned by the Funds from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, each Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with
a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to
as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 67 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, each 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 Funds did not borrow or lend
money under the Interfund Program during the six months ended September 30, 2020.
Note 8. Line of credit
Each 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 Funds 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.
No Fund had borrowings during the
six months ended September 30, 2020.
Note 9. Significant
risks
Alternative strategies investment
and multi-asset/tactical strategies risk
An investment in alternative
investment strategies and multi-asset/tactical strategies (the Strategies) involves risks, which may be significant. The Strategies may include strategies, instruments or other assets, such as derivatives, that seek
investment returns uncorrelated with the broad equity and fixed income/debt markets, as well as those providing exposure to other markets (such as commodity markets), including but not limited to absolute (positive)
return strategies. The Strategies may fail to achieve their desired performance, market or other exposure, or their returns (or lack thereof) may be more correlated with the broad equity and/or fixed income/debt
markets than was anticipated, and the Funds may lose money.
Market and environment risk
The Funds may incur losses due to
declines in the value of one or more securities in which they invest. 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 Funds, 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.
| 68 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The Funds performance may also be
significantly negatively impacted by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic. 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 Funds from executing advantageous investment decisions in a timely manner and negatively impact the Funds’ ability to achieve their investment objectives. Any such event(s) could
have a significant adverse impact on the value and risk profile of the Funds.
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 our employees and to assure the continuity of our
business operations, we have implemented a work from home protocol for virtually all of our 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. Our operations teams seek to operate without significant disruptions in service. Our 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. We cannot, however, predict the impact that natural or man-made disasters, including
the COVID-19 pandemic, may have on the ability of our 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 September 30, 2020, certain
shareholder accounts owned more than 10% of the outstanding shares of one or more of the Funds. For unaffiliated shareholder accounts, the Funds have no knowledge about whether any portion of those shares were owned
beneficially. Subscription and redemption activity of these accounts may have a significant effect on the operations of the Funds. 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.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 69 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The number of accounts and
aggregate percentages of shares outstanding held therein were as follows:
| Fund | Number of unaffiliated accounts | Percentage of shares outstanding held — unaffiliated (%) | Percentage of shares outstanding held — affiliated (%) |
| Columbia Adaptive Retirement 2020 Fund | — | — | 100.0 |
| Columbia Adaptive Retirement 2025 Fund | — | — | 100.0 |
| Columbia Adaptive Retirement 2030 Fund | 1 | 57.8 | 42.2 |
| Columbia Adaptive Retirement 2035 Fund | 1 | 34.7 | 65.3 |
| Columbia Adaptive Retirement 2040 Fund | 1 | 24.8 | 73.6 |
| Columbia Adaptive Retirement 2045 Fund | 1 | 11.7 | 88.3 |
| Columbia Adaptive Retirement 2050 Fund | 1 | 16.1 | 83.9 |
| Columbia Adaptive Retirement 2055 Fund | — | — | 100.0 |
| Columbia Adaptive Retirement 2060 Fund | — | — | 95.9 |
Note 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates 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 Funds are 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 Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts
with the Funds. 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 Funds. Further, although we believe
proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, 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.
| 70 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreements
On June 17, 2020, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreements (the Management Agreements) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Adaptive Retirement 2020 Fund, Columbia
Adaptive Retirement 2025 Fund, Columbia Adaptive Retirement 2030 Fund, Columbia Adaptive Retirement 2035 Fund, Columbia Adaptive Retirement 2040 Fund, Columbia Adaptive Retirement 2045 Fund, Columbia Adaptive
Retirement 2050 Fund, Columbia Adaptive Retirement 2055 Fund and Columbia Adaptive Retirement 2060 Fund (the Funds), each a series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses
Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the management team of the Investment Manager and with an independent fee consultant, materials provided
by the Investment Manager, the independent fee consultant and others before determining to approve the continuation of the Management Agreements.
In connection with their
deliberations regarding the continuation of the Management Agreements, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Funds and the Management Agreements, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 10, 2020, April 30, 2020 and June 17, 2020 and at Board meetings held on March 11, 2020 and June 17, 2020.
In addition, the Board and its various committees consider matters bearing on the Management Agreements at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust
and the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at
various times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various
matters with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 17, 2020, the Committee recommended that the Board
approve the continuation of the Management Agreements. On June 17, 2020, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreements for the
Funds.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreements. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreements for the Funds included the
following:
| • | Information on the investment performance of the Funds relative to the performance of a group of mutual funds determined to be comparable to the Funds by the Investment Manager, as well as performance relative to benchmarks; |
| • | Information on the Funds’ management fees and total expenses, including information comparing the Funds’ expenses to those of a group of comparable mutual funds, as determined by the Investment Manager; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Funds through July 31, 2030 so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of each Fund’s net assets; |
| • | The terms and conditions of the Management Agreements; |
| • | The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Funds, including agreements with respect to the provision of transfer agency and shareholder services to the Funds; |
| • | Descriptions of various functions performed by the Investment Manager under the Management Agreements, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 71 |
Board Consideration and Approval of
Management
Agreements (continued)
| • | Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Funds’ Chief Compliance Officer; and |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Funds. |
Nature, extent and quality of
services provided under the Management Agreements
The Committee and the Board
considered the nature, extent and quality of services provided to the Funds by the Investment Manager and its affiliates under the Management Agreements and under separate agreements for the provision of transfer
agency and shareholder services, and the resources dedicated to the Funds and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the
Investment Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund
management, reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade
execution services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and
investment disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Funds. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Funds by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Funds and
coordinate the activities of the Funds’ other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Funds under the Management Agreements supported the continuation of the Management Agreements.
Investment performance
The Committee and the Board
reviewed information about the performance of the Funds over various time periods, including performance information relative to benchmarks, information that compared the performance of the Funds to the performance of
a group of comparable mutual funds as determined by the Investment Manager, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a description of the
Investment Manager’s methodology for identifying the Funds’ peer groups for purposes of performance and expense comparisons. Although each of the Columbia Adaptive Retirement 2020 Fund’s, Columbia
Adaptive Retirement 2025 Fund’s, Columbia Adaptive Retirement 2030 Fund’s and the Columbia Adaptive Retirement 2035 Fund’s performance lagged that of a relevant peer group for the one-year period,
the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of the Management Agreement. Those factors included one or
more of the following: (i) that each Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent,
to investment decisions that were reasonable and consistent with each Fund’s investment strategy and policies and that each Fund was performing within a reasonable range of expectations, given those investment
decisions, market conditions and each Fund’s investment strategy; (iii) that each Fund’s performance was competitive when compared to other relevant performance benchmarks or peer groups; and (iv) that the
Investment Manager had taken or was taking steps designed to help improve each Fund’s’ investment performance, including, but not limited to, replacing portfolio managers, enhancing the resources
supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2019, Columbia Adaptive Retirement 2020 Fund’s performance was in the eightieth percentile, Columbia Adaptive Retirement 2025 Fund’s performance was in the eighty-seventh
percentile, Columbia Adaptive Retirement 2030 Fund’s performance was in the seventy-seventh percentile, Columbia Adaptive Retirement 2035 Fund’s performance was in the fifty-ninth percentile, Columbia
Adaptive Retirement 2040
| 72 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreements (continued)
Fund’s performance was in the fourteenth
percentile, Columbia Adaptive Retirement 2045 Fund’s performance was in the first percentile, Columbia Adaptive Retirement 2050 Fund’s performance was in the first percentile, Columbia Adaptive Retirement
2055 Fund’s performance was in the first percentile and Columbia Adaptive Retirement 2060 Fund’s performance was in the first percentile (where the best performance would be in the first percentile) of its
category selected by the Investment Manager for the purposes of performance comparisons for the one-year period.
The Committee and the Board also
considered the Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s
willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the
Funds and the Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreements.
Investment Management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Funds under the Management Agreements as well as the total expenses incurred by the Funds. In assessing the reasonableness of the fees under the Management Agreements, the
Committee and the Board considered, among other information, each Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the Investment
Manager and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2019, Columbia Adaptive Retirement 2020 Fund’s actual management fee and net total expense ratio were ranked
in the first and third quintiles, respectively, Columbia Adaptive Retirement 2025 Fund’s actual management fee and net total expense ratio were ranked in the first and third quintiles, respectively, Columbia
Adaptive Retirement 2030 Fund’s actual management fee and net total expense ratio were ranked in the first and third quintiles, respectively, Columbia Adaptive Retirement 2035 Fund’s actual management fee
and net total expense ratio were ranked in the first and third quintiles, respectively, Columbia Adaptive Retirement 2040 Fund’s actual management fee and net total expense ratio were ranked in the first and
third quintiles, respectively, Columbia Adaptive Retirement 2045 Fund’s actual management fee and net total expense ratio were ranked in the first and third quintiles, respectively, Columbia Adaptive Retirement
2050 Fund’s actual management fee and net total expense ratio were ranked in the first and third quintiles, respectively, Columbia Adaptive Retirement 2055 Fund’s actual management fee and net total
expense ratio were ranked in the first and third quintiles, respectively, Columbia Adaptive Retirement 2060 Fund’s actual management fee and net total expense ratio were ranked in the first and third quintiles,
respectively, (where the lowest fees and expenses would be in the first quintile) against each Fund’s expense universe as determined by the Investment Manager for purposes of expense comparison. The Committee
and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Funds’ management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Funds.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Funds, in light of other considerations, supported the continuation of
the Management Agreements.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Funds, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
| Columbia Adaptive Retirement Funds | Semiannual Report 2020 | 73 |
Board Consideration and Approval of
Management
Agreements (continued)
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Funds. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Funds, information about the allocation of expenses used to calculate profitability, and comparisons
of profitability levels realized in 2019 to profitability levels realized in 2018. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Funds, and the expense ratios of the Funds. In addition, the Committee and the Board considered information provided by the
Investment Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In
this regard, the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Funds supported the continuation of the Management Agreements.
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Funds, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Funds through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Funds, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Funds supported
the continuation of the Management Agreements.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Funds, such as the
engagement of the Investment Manager’s affiliates to provide transfer agency and shareholder services to the Funds. The Committee and the Board also considered the benefits of research made available to the
Investment Manager by reason of brokerage commissions generated by the Funds’ securities transactions, and reviewed information about the Investment Manager’s practices with respect to considering
brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made available to the Investment Manager by reason of brokerage commissions
had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreements. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreements.
| 74 | Columbia Adaptive Retirement Funds | Semiannual Report 2020 |
Additional information
The Funds mail 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 Funds hold 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 Funds 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 Funds file a complete
schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Funds’ Form N-PORT filings are available on the SEC’s website at sec.gov. The
Funds’ complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Funds, 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
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 Adaptive Retirement Funds | Semiannual Report 2020 | 75 |
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 Funds, go to
columbiathreadneedleus.com/investor/. The Funds are distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Funds are 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/
SAR295_03_K01_(11/20)
Columbia
Pacific/Asia 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
shareholder 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
| 3 | |
| 5 | |
| 6 | |
| 10 | |
| 11 | |
| 12 | |
| 14 | |
| 18 | |
| 30 |
Columbia Pacific/Asia 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. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, 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 Pacific/Asia Fund | Semiannual
Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks long-term capital appreciation.
Portfolio management
Daisuke Nomoto, CMA (SAAJ)
Lead Portfolio Manager
Managed Fund since 2008
Christine Seng, CFA
Portfolio Manager
Managed Fund since 2014
Morningstar style boxTM
The Morningstar Style Box is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows
investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2020 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 3 |
Understanding Your Fund’s
Expenses
(Unaudited)
(Unaudited)
As an investor, you incur two types
of costs. There are shareholder transaction costs, which generally include sales charges on purchases and may include redemption fees. There are also ongoing fund costs, which generally include management fees,
distribution and/or service fees, and other fund expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with
the ongoing costs of investing in other mutual funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| April 1, 2020 — September 30, 2020 | |||||||
| Account value at the beginning of the period ($) | 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 | 1,344.00 | 1,017.40 | 8.99 | 7.74 | 1.53 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,346.20 | 1,018.65 | 7.53 | 6.48 | 1.28 |
| Class C | 1,000.00 | 1,000.00 | 1,340.40 | 1,013.64 | 13.38 | 11.51 | 2.28 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,347.00 | 1,018.65 | 7.53 | 6.48 | 1.28 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,348.00 | 1,019.60 | 6.42 | 5.52 | 1.09 |
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 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
September 30, 2020 (Unaudited)
September 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 Pacific/Asia Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Investments in
derivatives
| Forward foreign currency exchange contracts | |||||
| Currency to be sold | Currency to be purchased | Counterparty | Settlement date | Unrealized appreciation ($) | Unrealized depreciation ($) |
| 21,251,000 TWD | 734,439 USD | State Street | 11/19/2020 | — | (4,771) |
| 735,064 USD | 54,516,000 INR | State Street | 11/19/2020 | 2,279 | — |
| 732,943 USD | 858,181,000 KRW | State Street | 11/19/2020 | 3,075 | — |
| Total | 5,354 | (4,771) | |||
Notes to Portfolio of
Investments
| (a) | Non-income producing investment. |
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
| (c) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.136% | ||||||||
| 5,047,321 | 24,573,527 | (28,157,037) | 1,229 | 1,465,040 | 2,087 | 5,056 | 1,465,186 | |
Abbreviation Legend
| ADR | American Depositary Receipt |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Currency Legend
| INR | Indian Rupee |
| KRW | South Korean Won |
| TWD | New Taiwan Dollar |
| USD | US Dollar |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Foreign equity securities actively
traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact
of market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Australia | 2,960,076 | 10,284,097 | — | 13,244,173 |
| China | 18,111,147 | 20,128,888 | — | 38,240,035 |
| Hong Kong | — | 7,369,153 | — | 7,369,153 |
| India | 2,287,369 | 2,528,224 | — | 4,815,593 |
| Indonesia | — | 1,430,582 | — | 1,430,582 |
| Japan | — | 55,652,767 | — | 55,652,767 |
| Singapore | — | 2,944,666 | — | 2,944,666 |
| South Korea | — | 7,617,847 | — | 7,617,847 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 8 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Fair value measurements (continued)
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Taiwan | 8,390,015 | 6,059,663 | — | 14,449,678 |
| Thailand | — | 351,345 | — | 351,345 |
| Total Common Stocks | 31,748,607 | 114,367,232 | — | 146,115,839 |
| Money Market Funds | 1,465,040 | — | — | 1,465,040 |
| Total Investments in Securities | 33,213,647 | 114,367,232 | — | 147,580,879 |
| Investments in Derivatives | ||||
| Asset | ||||
| Forward Foreign Currency Exchange Contracts | — | 5,354 | — | 5,354 |
| Liability | ||||
| Forward Foreign Currency Exchange Contracts | — | (4,771) | — | (4,771) |
| Total | 33,213,647 | 114,367,815 | — | 147,581,462 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets. These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The model utilized by such third party statistical
pricing service takes into account a security’s correlation to available market data including, but not limited to, intraday index, ADR, and exchange-traded fund movements.
Derivative instruments are valued at
unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 9 |
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $75,616,362) | $146,115,839 |
| Affiliated issuers (cost $1,465,028) | 1,465,040 |
| Unrealized appreciation on forward foreign currency exchange contracts | 5,354 |
| Receivable for: | |
| Investments sold | 465,910 |
| Capital shares sold | 59,234 |
| Dividends | 436,033 |
| Foreign tax reclaims | 23,649 |
| Prepaid expenses | 901 |
| Trustees’ deferred compensation plan | 63,296 |
| Total assets | 148,635,256 |
| Liabilities | |
| Due to custodian | 220 |
| Unrealized depreciation on forward foreign currency exchange contracts | 4,771 |
| Payable for: | |
| Investments purchased | 232,238 |
| Capital shares purchased | 216,942 |
| Management services fees | 3,821 |
| Distribution and/or service fees | 87 |
| Transfer agent fees | 8,753 |
| Compensation of board members | 1,767 |
| Compensation of chief compliance officer | 14 |
| Other expenses | 38,414 |
| Trustees’ deferred compensation plan | 63,296 |
| Total liabilities | 570,323 |
| Net assets applicable to outstanding capital stock | $148,064,933 |
| Represented by | |
| Paid in capital | 67,587,076 |
| Total distributable earnings (loss) | 80,477,857 |
| Total - representing net assets applicable to outstanding capital stock | $148,064,933 |
| Class A | |
| Net assets | $7,090,498 |
| Shares outstanding | 605,077 |
| Net asset value per share | $11.72 |
| Maximum sales charge | 5.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $12.44 |
| Advisor Class | |
| Net assets | $1,918,768 |
| Shares outstanding | 162,276 |
| Net asset value per share | $11.82 |
| Class C | |
| Net assets | $1,422,804 |
| Shares outstanding | 125,480 |
| Net asset value per share | $11.34 |
| Institutional Class | |
| Net assets | $27,776,017 |
| Shares outstanding | 2,353,790 |
| Net asset value per share | $11.80 |
| Institutional 3 Class | |
| Net assets | $109,856,846 |
| Shares outstanding | 9,418,108 |
| Net asset value per share | $11.66 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Statement of Operations
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $1,547,924 |
| Dividends — affiliated issuers | 5,056 |
| Foreign taxes withheld | (122,624) |
| Total income | 1,430,356 |
| Expenses: | |
| Management services fees | 713,538 |
| Distribution and/or service fees | |
| Class A | 7,573 |
| Class C | 6,220 |
| Transfer agent fees | |
| Class A | 5,822 |
| Advisor Class | 1,981 |
| Class C | 1,195 |
| Institutional Class | 21,187 |
| Institutional 3 Class | 4,694 |
| Compensation of board members | 9,157 |
| Custodian fees | 23,883 |
| Printing and postage fees | 7,767 |
| Registration fees | 39,317 |
| Audit fees | 15,430 |
| Legal fees | 1,922 |
| Interest on interfund lending | 17 |
| Compensation of chief compliance officer | 28 |
| Other | 6,020 |
| Total expenses | 865,751 |
| Net investment income | 564,605 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 13,391,420 |
| Investments — affiliated issuers | 2,087 |
| Foreign currency translations | (35,091) |
| Forward foreign currency exchange contracts | (116,169) |
| Net realized gain | 13,242,247 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 31,325,430 |
| Investments — affiliated issuers | 1,229 |
| Foreign currency translations | (519) |
| Forward foreign currency exchange contracts | 42,987 |
| Net change in unrealized appreciation (depreciation) | 31,369,127 |
| Net realized and unrealized gain | 44,611,374 |
| Net increase in net assets resulting from operations | $45,175,979 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 11 |
Statement of Changes in Net Assets
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||
| Net investment income | $564,605 | $1,943,726 |
| Net realized gain | 13,242,247 | 3,923,471 |
| Net change in unrealized appreciation (depreciation) | 31,369,127 | (12,254,406) |
| Net increase (decrease) in net assets resulting from operations | 45,175,979 | (6,387,209) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | — | (360,880) |
| Advisor Class | — | (131,931) |
| Class C | — | (75,582) |
| Institutional Class | — | (948,373) |
| Institutional 3 Class | — | (9,842,684) |
| Total distributions to shareholders | — | (11,359,450) |
| Decrease in net assets from capital stock activity | (37,522,972) | (1,320,443) |
| Total increase (decrease) in net assets | 7,653,007 | (19,067,102) |
| Net assets at beginning of period | 140,411,926 | 159,479,028 |
| Net assets at end of period | $148,064,933 | $140,411,926 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| September 30, 2020 (Unaudited) | March 31, 2020 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 119,362 | 1,292,387 | 279,327 | 2,755,906 |
| Distributions reinvested | — | — | 35,613 | 356,611 |
| Redemptions | (86,954) | (908,356) | (267,793) | (2,638,293) |
| Net increase | 32,408 | 384,031 | 47,147 | 474,224 |
| Advisor Class | ||||
| Subscriptions | 40,483 | 427,577 | 89,556 | 886,631 |
| Distributions reinvested | — | — | 13,016 | 131,732 |
| Redemptions | (104,165) | (1,143,012) | (37,601) | (372,187) |
| Net increase (decrease) | (63,682) | (715,435) | 64,971 | 646,176 |
| Class C | ||||
| Subscriptions | 25,329 | 265,592 | 22,313 | 215,871 |
| Distributions reinvested | — | — | 7,801 | 75,582 |
| Redemptions | (22,678) | (231,770) | (41,096) | (391,438) |
| Net increase (decrease) | 2,651 | 33,822 | (10,982) | (99,985) |
| Institutional Class | ||||
| Subscriptions | 516,332 | 5,708,273 | 1,191,790 | 11,155,009 |
| Distributions reinvested | — | — | 65,524 | 657,749 |
| Redemptions | (151,427) | (1,607,242) | (301,656) | (2,968,270) |
| Net increase | 364,905 | 4,101,031 | 955,658 | 8,844,488 |
| Institutional 3 Class | ||||
| Subscriptions | 77,939 | 763,919 | 99,558 | 981,869 |
| Distributions reinvested | — | — | 989,777 | 9,806,967 |
| Redemptions | (3,944,326) | (42,090,340) | (2,212,987) | (21,974,182) |
| Net decrease | (3,866,387) | (41,326,421) | (1,123,652) | (11,185,346) |
| Total net decrease | (3,530,105) | (37,522,972) | (66,858) | (1,320,443) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 13 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $8.72 | 0.02 | 2.98 | 3.00 | — | — | — |
| Year Ended 3/31/2020 | $9.87 | 0.08 | (0.55) | (0.47) | (0.20) | (0.48) | (0.68) |
| Year Ended 3/31/2019 | $11.56 | 0.08 | (0.89) | (0.81) | (0.02) | (0.86) | (0.88) |
| Year Ended 3/31/2018 | $9.80 | 0.04 | 2.69 | 2.73 | (0.09) | (0.88) | (0.97) |
| Year Ended 3/31/2017 | $9.26 | 0.05 | 1.05 | 1.10 | (0.02) | (0.54) | (0.56) |
| Year Ended 3/31/2016 | $9.91 | 0.06 | (0.64) | (0.58) | (0.04) | (0.03) | (0.07) |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $8.78 | 0.03 | 3.01 | 3.04 | — | — | — |
| Year Ended 3/31/2020 | $9.94 | 0.11 | (0.57) | (0.46) | (0.22) | (0.48) | (0.70) |
| Year Ended 3/31/2019 | $11.63 | 0.11 | (0.89) | (0.78) | (0.05) | (0.86) | (0.91) |
| Year Ended 3/31/2018 | $9.86 | 0.05 | 2.71 | 2.76 | (0.11) | (0.88) | (0.99) |
| Year Ended 3/31/2017 | $9.31 | 0.14 | 0.99 | 1.13 | (0.04) | (0.54) | (0.58) |
| Year Ended 3/31/2016 | $9.96 | 0.07 | (0.62) | (0.55) | (0.07) | (0.03) | (0.10) |
| Class C | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $8.46 | (0.02) | 2.90 | 2.88 | — | — | — |
| Year Ended 3/31/2020 | $9.60 | 0.01 | (0.54) | (0.53) | (0.13) | (0.48) | (0.61) |
| Year Ended 3/31/2019 | $11.32 | 0.00(h) | (0.86) | (0.86) | — | (0.86) | (0.86) |
| Year Ended 3/31/2018 | $9.63 | (0.04) | 2.62 | 2.58 | (0.01) | (0.88) | (0.89) |
| Year Ended 3/31/2017 | $9.15 | (0.02) | 1.04 | 1.02 | (0.00)(h) | (0.54) | (0.54) |
| Year Ended 3/31/2016 | $9.83 | (0.01) | (0.64) | (0.65) | (0.00)(h) | (0.03) | (0.03) |
| Institutional Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $8.76 | 0.04 | 3.00 | 3.04 | — | — | — |
| Year Ended 3/31/2020 | $9.92 | 0.11 | (0.57) | (0.46) | (0.22) | (0.48) | (0.70) |
| Year Ended 3/31/2019 | $11.62 | 0.11 | (0.90) | (0.79) | (0.05) | (0.86) | (0.91) |
| Year Ended 3/31/2018 | $9.84 | 0.07 | 2.70 | 2.77 | (0.11) | (0.88) | (0.99) |
| Year Ended 3/31/2017 | $9.30 | 0.07 | 1.05 | 1.12 | (0.04) | (0.54) | (0.58) |
| Year Ended 3/31/2016 | $9.95 | 0.08 | (0.63) | (0.55) | (0.07) | (0.03) | (0.10) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Columbia Pacific/Asia 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 (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.72 | 34.40% | 1.53%(c),(d) | 1.53%(c),(d) | 0.41%(c) | 22% | $7,090 |
| Year Ended 3/31/2020 | $8.72 | (5.54%) | 1.55%(e) | 1.52%(e),(f) | 0.80% | 42% | $4,992 |
| Year Ended 3/31/2019 | $9.87 | (6.85%) | 1.57%(d),(e) | 1.51%(d),(e),(f) | 0.81% | 44% | $5,186 |
| Year Ended 3/31/2018 | $11.56 | 28.38% | 1.55% | 1.54%(f) | 0.40% | 49% | $6,147 |
| Year Ended 3/31/2017 | $9.80 | 12.50% | 1.49%(g) | 1.49%(f),(g) | 0.48% | 80% | $2,303 |
| Year Ended 3/31/2016 | $9.26 | (5.88%) | 1.52% | 1.52%(f) | 0.62% | 73% | $3,190 |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.82 | 34.62% | 1.28%(c),(d) | 1.28%(c),(d) | 0.62%(c) | 22% | $1,919 |
| Year Ended 3/31/2020 | $8.78 | (5.39%) | 1.30%(e) | 1.27%(e),(f) | 1.08% | 42% | $1,985 |
| Year Ended 3/31/2019 | $9.94 | (6.54%) | 1.32%(d),(e) | 1.26%(d),(e),(f) | 1.11% | 44% | $1,599 |
| Year Ended 3/31/2018 | $11.63 | 28.58% | 1.32% | 1.30%(f) | 0.47% | 49% | $909 |
| Year Ended 3/31/2017 | $9.86 | 12.82% | 1.27%(g) | 1.27%(f),(g) | 1.53% | 80% | $23 |
| Year Ended 3/31/2016 | $9.31 | (5.61%) | 1.25% | 1.25%(f) | 0.72% | 73% | $4 |
| Class C | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.34 | 34.04% | 2.28%(c),(d) | 2.28%(c),(d) | (0.35%)(c) | 22% | $1,423 |
| Year Ended 3/31/2020 | $8.46 | (6.27%) | 2.30%(e) | 2.27%(e),(f) | 0.06% | 42% | $1,040 |
| Year Ended 3/31/2019 | $9.60 | (7.52%) | 2.32%(d),(e) | 2.26%(d),(e),(f) | 0.04% | 44% | $1,285 |
| Year Ended 3/31/2018 | $11.32 | 27.27% | 2.30% | 2.29%(f) | (0.38%) | 49% | $1,576 |
| Year Ended 3/31/2017 | $9.63 | 11.79% | 2.24%(g) | 2.24%(f),(g) | (0.25%) | 80% | $854 |
| Year Ended 3/31/2016 | $9.15 | (6.64%) | 2.27% | 2.27%(f) | (0.13%) | 73% | $1,080 |
| Institutional Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.80 | 34.70% | 1.28%(c),(d) | 1.28%(c),(d) | 0.71%(c) | 22% | $27,776 |
| Year Ended 3/31/2020 | $8.76 | (5.40%) | 1.30%(e) | 1.27%(e),(f) | 1.06% | 42% | $17,430 |
| Year Ended 3/31/2019 | $9.92 | (6.63%) | 1.29%(d),(e) | 1.26%(d),(e),(f) | 1.06% | 44% | $10,246 |
| Year Ended 3/31/2018 | $11.62 | 28.76% | 1.29% | 1.28%(f) | 0.67% | 49% | $57,538 |
| Year Ended 3/31/2017 | $9.84 | 12.72% | 1.24%(g) | 1.24%(f),(g) | 0.73% | 80% | $63,870 |
| Year Ended 3/31/2016 | $9.30 | (5.61%) | 1.27% | 1.27%(f) | 0.81% | 73% | $83,696 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 15 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $8.65 | 0.04 | 2.97 | 3.01 | — | — | — |
| Year Ended 3/31/2020 | $9.80 | 0.12 | (0.55) | (0.43) | (0.24) | (0.48) | (0.72) |
| Year Ended 3/31/2019 | $11.49 | 0.13 | (0.89) | (0.76) | (0.07) | (0.86) | (0.93) |
| Year Ended 3/31/2018 | $9.75 | 0.09 | 2.66 | 2.75 | (0.13) | (0.88) | (1.01) |
| Year Ended 3/31/2017(i) | $9.51 | 0.12 | 0.12 | 0.24 | — | — | — |
| 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) | Ratios include interest on collateral expense which is less than 0.01%. |
| (f) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (g) | 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 |
| 03/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% |
| (h) | Rounds to zero. |
| (i) | 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.
| 16 | Columbia Pacific/Asia 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 (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.66 | 34.80% | 1.09%(c),(d) | 1.09%(c),(d) | 0.79%(c) | 22% | $109,857 |
| Year Ended 3/31/2020 | $8.65 | (5.20%) | 1.11%(e) | 1.08%(e) | 1.25% | 42% | $114,965 |
| Year Ended 3/31/2019 | $9.80 | (6.41%) | 1.13%(d),(e) | 1.07%(d),(e) | 1.23% | 44% | $141,163 |
| Year Ended 3/31/2018 | $11.49 | 28.82% | 1.11% | 1.11% | 0.83% | 49% | $174,262 |
| Year Ended 3/31/2017(i) | $9.75 | 2.52% | 1.12%(c) | 1.12%(c) | 15.80%(c) | 80% | $146,742 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 17 |
Notes to Financial Statements
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 1. Organization
Columbia Pacific/Asia 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 and Institutional 3
Class shares are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any
exchange are valued at the mean between the closing bid and asked prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are
valued based on the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available, the
securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange. Many
securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events
that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy adopted by the Board of Trustees. Under the policy, the
Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities
markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably
reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
| 18 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Forward foreign currency exchange
contracts are marked-to-market based upon foreign currency exchange rates provided by a pricing service.
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.
Foreign currency transactions and
translations
The values of all assets and
liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains
(losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes,
the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations
are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements
which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial
statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (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 clearing brokers are required to segregate customer margin from their own assets, in
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 19 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
the event that a clearing broker becomes insolvent
or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a
pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative 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 for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as
well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and
comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount
threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from
counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. 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.
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.
Forward foreign currency exchange
contracts
Forward foreign currency exchange
contracts are over-the-counter agreements between two parties to buy and sell a currency at a set price on a future date. The Fund utilized forward foreign currency exchange contracts to hedge the currency exposure
associated with some or all of the Fund’s securities, to shift investment exposure from one currency to another, to shift U.S. dollar exposure to achieve a representative weighted mix of major currencies in its
benchmark and to recover an underweight country exposure in its portfolio. These instruments may be used for other purposes in future periods.
The values of forward foreign
currency exchange contracts fluctuate daily with changes in foreign currency exchange rates. Changes in the value of these contracts are recorded as unrealized appreciation or depreciation until the contract is
exercised or has expired. The Fund will realize a gain or loss when the forward foreign currency exchange contract is closed or expires. Non-deliverable forward foreign currency exchange contracts are settled with the
counterparty in U.S. dollars without delivery of foreign currency.
| 20 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The use of forward foreign currency
exchange contracts does not eliminate fluctuations in the prices of the Fund’s portfolio securities. The risks of forward foreign currency exchange contracts include movement in the values of the foreign
currencies relative to the U.S. dollar (or other foreign currencies) and the possibility that counterparties will not complete their contractual obligations, which may be in excess of the amount reflected, if any, in
the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at September 30, 2020:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Foreign exchange risk | Unrealized appreciation on forward foreign currency exchange contracts | 5,354 |
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Foreign exchange risk | Unrealized depreciation on forward foreign currency exchange contracts | 4,771 |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended September 30, 2020:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Forward foreign currency exchange contracts ($) |
| Foreign exchange risk | (116,169) |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Forward foreign currency exchange contracts ($) |
| Foreign exchange risk | 42,987 |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended September 30, 2020:
| Derivative instrument | Average unrealized appreciation ($)* | Average unrealized depreciation ($)* |
| Forward foreign currency exchange contracts | 14,757 | (2,386) |
| * | Based on the ending quarterly outstanding amounts for the six months ended September 30, 2020. |
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 21 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Offsetting of assets and
liabilities
The following table presents the
Fund’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Fund as of September 30, 2020:
| State Street ($) | |
| Assets | |
| Forward foreign currency exchange contracts | 5,354 |
| Liabilities | |
| Forward foreign currency exchange contracts | 4,771 |
| Total financial and derivative net assets | 583 |
| Total collateral received (pledged) (a) | - |
| Net amount (b) | 583 |
| (a) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| (b) | Represents the net amount due from/(to) counterparties in the event of default. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend
income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
| 22 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid semi-annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
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 0.95% to 0.72% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended September 30, 2020 was 0.95% of
the Fund’s average daily net assets.
Participating Affiliates
The Investment Manager and its
investment advisory affiliates (Participating Affiliates) around the world may coordinate in providing services to their clients. From time to time the Investment Manager (or any affiliated investment subadviser to
the Fund, as the case may be) may engage its Participating Affiliates to provide a variety of services such as investment research, investment monitoring, trading and discretionary investment management (including
portfolio management) to certain accounts managed by the Investment Manager, including the Fund. These Participating Affiliates provide services to the Investment Manager (or any affiliated investment subadviser to
the Fund as the case may be) either pursuant to subadvisory agreements, personnel-sharing agreements or other inter-company arrangements and the Fund pays no additional fees and expenses as a result of any such
arrangements.
These Participating Affiliates,
like the Investment Manager, are direct or indirect subsidiaries of Ameriprise Financial and are registered, as appropriate, with respective regulators in their home jurisdictions and, where required, the Securities
and Exchange Commission and the Commodity Futures Trading Commission in the United States.
Pursuant to some of these
arrangements, certain employees of these Participating Affiliates may serve as "associated persons" of the Investment Manager and, in this capacity, subject to the oversight and supervision of the Investment Manager
and consistent with the investment objectives, policies and limitations set forth in the Fund’s prospectus and Statement of Additional Information (SAI), may provide such services to the Fund on behalf of the
Investment Manager.
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.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 23 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 September
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 | 0.19 |
| Advisor Class | 0.19 |
| Class C | 0.19 |
| Institutional Class | 0.19 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended September 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
| 24 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended September 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 5.75 | 0.50 - 1.00(a) | 6,349 |
| Class C | — | 1.00(b) | — |
| (a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
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:
| August 1, 2020 through July 31, 2021 | Prior to August 1, 2020 | |
| Class A | 1.56% | 1.60% |
| Advisor Class | 1.31 | 1.35 |
| Class C | 2.31 | 2.35 |
| Institutional Class | 1.31 | 1.35 |
| Institutional 3 Class | 1.15 | 1.16 |
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 September 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 ($) |
| 77,081,000 | 70,821,000 | (321,000) | 70,500,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Fund will elect to treat the following late-year ordinary losses and post-October capital losses at March 31, 2020 as arising on April 1, 2020.
| Late year ordinary losses ($) | Post-October capital losses ($) |
| 16,154 | 495,719 |
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 $31,627,746 and $63,916,725, respectively, for the six months ended September 30, 2020. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to
as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended September 30, 2020 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Borrower | 333,333 | 0.62 | 3 |
Interest expense incurred by the
Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at September 30, 2020.
Note 8. 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
| 26 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 September 30, 2020.
Note 9. Significant
risks
Foreign securities and emerging
market countries risk
Investing in foreign securities may
involve certain risks not typically associated with investing in U.S. securities, such as increased currency volatility and risks associated with political, regulatory, economic, social, diplomatic and other
conditions or events occurring in the country or region, which may result in significant market volatility. In addition, certain foreign securities may not be as liquid as U.S. securities. Investing in emerging
markets may increase these risks and expose the Fund to elevated risks associated with increased inflation, deflation or currency devaluation. To the extent that the Fund concentrates its investment exposure to any
one or a few specific countries, the Fund will be particularly susceptible to the risks associated with the conditions, events or other factors impacting those countries or regions and may, therefore, have a greater
risk than that of a fund that is more geographically diversified.
Geographic focus risk
The Fund may be particularly
susceptible to economic, political, regulatory or other events or conditions affecting issuers and countries within the specific geographic regions in which the Fund invests. The Fund’s NAV may be more volatile
than the NAV of a more geographically diversified fund.
Asia Pacific Region. The Fund is particularly susceptible to economic, political, regulatory or other events or conditions affecting issuers and countries in the Asia Pacific region. Many of the countries in
the region are considered underdeveloped or developing, including from a political, economic and/or social perspective, and may have relatively unstable governments and economies based on limited business, industries
and/or natural resources or commodities. Events in any one country within the region may impact other countries in the region or the region as a whole. As a result, events in the region will generally have a greater
effect on the Fund than if the Fund were more geographically diversified. This could result in increased volatility in the value of the Fund’s investments and losses for the Fund. Also, securities of some
companies in the region can be less liquid than U.S. or other foreign securities, potentially making it difficult for the Fund to sell such securities at a desirable time and price.
Greater China. The Fund is particularly susceptible to economic, political, regulatory or other events or conditions affecting issuers in the Greater China region. The region consists of Hong Kong, The
People’s Republic of China and Taiwan, among other countries, and the Fund’s investments in the region are particularly susceptible to risks in that region. The Hong Kong, Taiwanese, and Chinese economies
are dependent on the economies of other countries and can be significantly affected by currency fluctuations and increasing competition from other emerging economies in Asia with lower costs. Adverse events in any one
country within the region may impact the other countries in the region or Asia as a whole. As a result, adverse events in the region will generally have a greater effect on the Fund than if the Fund were more
geographically diversified, which could result in greater volatility in the Fund’s NAV and losses. Markets in the Greater China region can experience significant volatility due to social, economic, regulatory
and political uncertainties. The public health crises caused by the COVID-19 outbreak have exacerbated political and diplomatic tensions between the United States and China, which could adversely affect international
trade and the value of the Fund’s portfolio securities. Changes in Chinese government policy and economic growth rates could significantly affect local markets and the entire Greater China region. China has yet
to develop comprehensive securities, corporate, or commercial laws, its market is relatively new and less developed, and its economy is experiencing a relative slowdown. Export growth continues to be a major driver of
China’s economic growth. As a result, a
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 27 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
reduction in spending on Chinese products and
services, the institution of additional tariffs or other trade barriers, including as a result of heightened trade tensions between China and the United States, or a downturn in any of the economies of China’s
key trading partners may have an adverse impact on the Chinese economy.
Japan. The Fund is particularly susceptible to the social, political, economic, regulatory and other conditions or events that may affect Japan’s economy. The Japanese economy is heavily
dependent upon international trade, including, among other things, the export of finished goods and the import of oil and other commodities and raw materials. Because of its trade dependence, the Japanese economy is
particularly exposed to the risks of currency fluctuation, foreign trade policy and regional and global economic disruption, including the risk of increased tariffs, embargoes, and other trade limitations or factors.
Strained relationships between Japan and its neighboring countries, including China, South Korea and North Korea, based on historical grievances, territorial disputes, and defense concerns, may also cause uncertainty
in Japanese markets. As a result, additional tariffs, other trade barriers, or boycotts may have an adverse impact on the Japanese economy. Japanese government policy has been characterized by economic regulation,
intervention, protectionism and large government deficits. The Japanese economy is also challenged by an unstable financial services sector, highly leveraged corporate balance sheets and extensive cross-ownership
among major corporations. Structural social and labor market changes, including an aging workforce, population decline and traditional aversion to labor mobility may adversely affect Japan’s economic
competitiveness and growth potential. The potential for natural disasters, such as earthquakes, volcanic eruptions, typhoons and tsunamis, could also have significant negative effects on Japan’s economy. As a
result of the Fund’s investment in Japanese securities, the Fund’s NAV may be more volatile than the NAV of a more geographically diversified fund. If securities of issuers in Japan fall out of favor, it
may cause the Fund to underperform other funds that do not focus their investments in Japan.
Information technology sector risk
The Fund may be more susceptible to
the particular risks that may affect companies in the information technology sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the information technology sectors are
subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected
by factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for
market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their
securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies’ securities historically have been more volatile than
other securities, especially over the short term.
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 Fund performance may also be
significantly negatively impacted by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic. 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
| 28 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 their
investment objectives. 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 our employees and to assure the continuity of our
business operations, we have implemented a work from home protocol for virtually all of our 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. Our operations teams seek to operate without significant disruptions in service. Our 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. We cannot, however, predict the impact that natural or man-made disasters, including
the COVID-19 pandemic, may have on the ability of our employees and third-party service providers to continue ordinary business operations and technology functions over near- or longer-term periods.
Shareholder concentration risk
At September 30, 2020, affiliated
shareholders of record owned 75.3% 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 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates 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 Pacific/Asia Fund | Semiannual Report 2020 | 29 |
Board Consideration
and Approval of ManagementAgreement
On June 17, 2020, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Pacific/Asia Fund (the Fund), a series of the
Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the management team of the
Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation of the Management
Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 10, 2020, April 30, 2020 and June 17, 2020 and at Board meetings held on March 11, 2020 and June 17, 2020.
In addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust
and the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at
various times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various
matters with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 17, 2020, the Committee recommended that the Board
approve the continuation of the Management Agreement. On June 17, 2020, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the
Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through July 31, 2021 so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | The terms and conditions of the Management Agreement; |
| • | The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of distribution, transfer agency and shareholder services to the Fund; |
| • | Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| 30 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreement (continued)
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief Compliance Officer; and |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund. |
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons.
The Committee and the Board noted
that, through December 31, 2019, the Fund’s performance was in the thirty-fourth, thirty-fourth and thirty-fourth percentile (where the best performance would be in the first percentile) of its category selected
by the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
The Committee and the Board also
considered the Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s
willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the
Fund and the Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that because the independent third-party data provider was unable to identify more than two peers in the Fund’s
expense universe as
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 31 |
Board Consideration and Approval of
Management
Agreement (continued)
determined by the independent third-party data
provider, the Fund’s actual management fee and total expense ratio were not ranked by quintile against the Fund’s expense universe. The Committee and the Board also took into account the fee waiver and
expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2019 to profitability levels realized in 2018. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
| 32 | Columbia Pacific/Asia Fund | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreement (continued)
Other benefits to the Investment Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
| Columbia Pacific/Asia Fund | Semiannual Report 2020 | 33 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR209_03_K01_(11/20)
Multi-Manager
Growth Strategies 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
shareholder 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
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| 11 | |
| 12 | |
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| 14 | |
| 16 | |
| 24 |
Multi-Manager Growth Strategies
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. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, 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
Multi-Manager Growth Strategies
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks long-term capital appreciation.
Portfolio management
Columbia Management Investment Advisers, LLC
Thomas Galvin, CFA
Richard Carter
Todd Herget
Loomis, Sayles & Company, L.P.
Aziz Hamzaogullari, CFA
Los Angeles Capital Management and Equity Research, Inc.
Thomas Stevens, CFA
Hal Reynolds, CFA
Daniel Allen, CFA
Daniel Arche, CFA
Morningstar style boxTM
The Morningstar Style Box is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows
investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2020 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Multi-Manager Growth Strategies 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 may include redemption fees. There are also ongoing fund costs, which generally include management fees, distribution and/or service fees, and other fund
expenses. The following information is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to help you compare these costs with the ongoing costs of investing in other mutual
funds.
Analyzing your Fund’s
expenses
To illustrate these ongoing
costs, we have provided examples and calculated the expenses paid by investors in each share class of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment
of $1,000 at the beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the
“Actual” column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the
expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| April 1, 2020 — September 30, 2020 | |||||||
| Account value at the beginning of the period ($) | 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 | |
| Institutional Class | 1,000.00 | 1,000.00 | 1,435.00 | 1,021.56 | 4.27 | 3.55 | 0.70 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,435.70 | 1,022.06 | 3.66 | 3.04 | 0.60 |
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 365.
Expenses do not include fees and
expenses incurred indirectly by the Fund from its investment in underlying funds, including affiliated and non-affiliated pooled investment vehicles, such as mutual funds and exchange-traded funds.
Had Columbia Management Investment
Advisers, LLC and/or certain of its affiliates not waived/reimbursed certain fees and expenses, account value at the end of the period would have been reduced.
The Fund is offered only through
certain wrap fee programs sponsored and/or managed by Ameriprise Financial, Inc. or its affiliates. Participants in wrap fee programs pay other fees that are not included in the above table. Please refer to the wrap
program documents for information about the fees charged.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
September 30, 2020 (Unaudited)
September 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 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Notes to Portfolio of
Investments
| (a) | Non-income producing investment. |
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
| (c) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.136% | ||||||||
| 42,353,538 | 601,171,988 | (605,254,805) | 133 | 38,270,854 | 11,727 | 56,822 | 38,274,681 | |
Abbreviation Legend
| ADR | American Depositary Receipt |
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input
that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For
example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active
market.
Fair value inputs are
summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in
determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable
inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs
will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date,
which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between
the various levels within the hierarchy.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Fair value measurements (continued)
Foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact of market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation.
Foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange are classified as Level 2. The values of these securities may include an adjustment to reflect the impact of market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Communication Services | 372,251,515 | — | — | 372,251,515 |
| Consumer Discretionary | 610,696,638 | — | — | 610,696,638 |
| Consumer Staples | 158,865,439 | — | — | 158,865,439 |
| Energy | 7,013,966 | — | — | 7,013,966 |
| Financials | 92,922,611 | — | — | 92,922,611 |
| Health Care | 545,456,383 | 35,263,480 | — | 580,719,863 |
| Industrials | 181,849,285 | — | — | 181,849,285 |
| Information Technology | 1,391,998,597 | — | — | 1,391,998,597 |
| Materials | 28,206,526 | — | — | 28,206,526 |
| Total Common Stocks | 3,389,260,960 | 35,263,480 | — | 3,424,524,440 |
| Money Market Funds | 38,270,854 | — | — | 38,270,854 |
| Total Investments in Securities | 3,427,531,814 | 35,263,480 | — | 3,462,795,294 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets. These assets include certain foreign securities for which a third party statistical pricing service may be employed for purposes of fair market valuation. The model utilized by such third party statistical
pricing service takes into account a security’s correlation to available market data including, but not limited to, intraday index, ADR, and exchange-traded fund movements.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $2,254,127,191) | $3,424,524,440 |
| Affiliated issuers (cost $38,273,385) | 38,270,854 |
| Receivable for: | |
| Investments sold | 16,640,606 |
| Capital shares sold | 6,258,399 |
| Dividends | 562,415 |
| Foreign tax reclaims | 44,954 |
| Expense reimbursement due from Investment Manager | 8,175 |
| Prepaid expenses | 18,148 |
| Trustees’ deferred compensation plan | 151,641 |
| Other assets | 18 |
| Total assets | 3,486,479,650 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 18,757,540 |
| Capital shares purchased | 3,940,572 |
| Management services fees | 62,010 |
| Transfer agent fees | 307,972 |
| Compensation of board members | 1,126 |
| Compensation of chief compliance officer | 202 |
| Other expenses | 77,251 |
| Trustees’ deferred compensation plan | 151,641 |
| Total liabilities | 23,298,314 |
| Net assets applicable to outstanding capital stock | $3,463,181,336 |
| Represented by | |
| Paid in capital | 2,156,560,718 |
| Total distributable earnings (loss) | 1,306,620,618 |
| Total - representing net assets applicable to outstanding capital stock | $3,463,181,336 |
| Institutional Class | |
| Net assets | $3,463,178,311 |
| Shares outstanding | 191,362,578 |
| Net asset value per share | $18.10 |
| Institutional 3 Class | |
| Net assets | $3,025 |
| Shares outstanding | 167 |
| Net asset value per share(a) | $18.08 |
| (a) | Net asset value per share rounds to this amount due to fractional shares outstanding. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 11 |
Statement of Operations
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $10,008,210 |
| Dividends — affiliated issuers | 56,822 |
| Foreign taxes withheld | (308,669) |
| Total income | 9,756,363 |
| Expenses: | |
| Management services fees | 10,313,432 |
| Transfer agent fees | |
| Institutional Class | 1,730,499 |
| Compensation of board members | 28,564 |
| Custodian fees | 13,130 |
| Printing and postage fees | 108,062 |
| Registration fees | 48,464 |
| Audit fees | 14,790 |
| Legal fees | 35,597 |
| Compensation of chief compliance officer | 461 |
| Other | 38,829 |
| Total expenses | 12,331,828 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (1,451,236) |
| Total net expenses | 10,880,592 |
| Net investment loss | (1,124,229) |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 177,458,297 |
| Investments — affiliated issuers | 11,727 |
| Net realized gain | 177,470,024 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 866,350,761 |
| Investments — affiliated issuers | 133 |
| Net change in unrealized appreciation (depreciation) | 866,350,894 |
| Net realized and unrealized gain | 1,043,820,918 |
| Net increase in net assets resulting from operations | $1,042,696,689 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 (a) | |
| Operations | ||
| Net investment income (loss) | $(1,124,229) | $4,063,106 |
| Net realized gain | 177,470,024 | 155,957,421 |
| Net change in unrealized appreciation (depreciation) | 866,350,894 | (218,835,211) |
| Net increase (decrease) in net assets resulting from operations | 1,042,696,689 | (58,814,684) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | — | (438,544) |
| Institutional Class | (105,958,879) | (124,416,111) |
| Institutional 3 Class | (91) | (2) |
| Total distributions to shareholders | (105,958,970) | (124,854,657) |
| Increase in net assets from capital stock activity | 361,588,930 | 382,758,776 |
| Total increase in net assets | 1,298,326,649 | 199,089,435 |
| Net assets at beginning of period | 2,164,854,687 | 1,965,765,252 |
| Net assets at end of period | $3,463,181,336 | $2,164,854,687 |
| Six Months Ended | Year Ended | |||
| September 30, 2020 (Unaudited) | March 31, 2020 (a) | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | — | — | 120 | 4,074 |
| Distributions reinvested | — | — | 30,148 | 438,387 |
| Redemptions | — | — | (613,169) | (9,517,660) |
| Net decrease | — | — | (582,901) | (9,075,199) |
| Institutional Class | ||||
| Subscriptions | 46,322,449 | 720,289,420 | 52,316,391 | 760,529,291 |
| Distributions reinvested | 6,805,323 | 105,958,879 | 8,651,278 | 124,416,110 |
| Redemptions | (27,707,128) | (464,659,369) | (33,969,098) | (493,113,926) |
| Net increase | 25,420,644 | 361,588,930 | 26,998,571 | 391,831,475 |
| Institutional 3 Class | ||||
| Subscriptions | — | — | 167 | 2,500 |
| Net increase | — | — | 167 | 2,500 |
| Total net increase | 25,420,644 | 361,588,930 | 26,415,837 | 382,758,776 |
| (a) | Institutional 3 Class shares are based on operations from December 18, 2019 (commencement of operations) through the stated period end. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 13 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $13.05 | (0.01) | 5.60 | 5.59 | (0.01) | (0.53) | (0.54) |
| Year Ended 3/31/2020 | $14.09 | 0.03 | (0.23) | (0.20) | (0.02) | (0.82) | (0.84) |
| Year Ended 3/31/2019 | $14.86 | 0.00(e) | 1.50 | 1.50 | — | (2.27) | (2.27) |
| Year Ended 3/31/2018 | $12.89 | 0.01 | 2.64 | 2.65 | (0.02) | (0.66) | (0.68) |
| Year Ended 3/31/2017(f) | $11.74 | 0.01 | 1.14 | 1.15 | — | — | — |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $13.03 | 0.00(e) | 5.59 | 5.59 | (0.01) | (0.53) | (0.54) |
| Year Ended 3/31/2020(g) | $14.94 | 0.02 | (1.92) | (1.90) | (0.01) | — | (0.01) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | Ratios include interfund lending expense which is less than 0.01%. |
| (e) | Rounds to zero. |
| (f) | Institutional Class shares commenced operations on January 3, 2017. Per share data and total return reflect activity from that date. |
| (g) | Institutional 3 Class shares commenced operations on December 18, 2019. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Multi-Manager Growth Strategies 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 (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $18.10 | 43.50% | 0.80%(c) | 0.70%(c) | (0.07%)(c) | 24% | $3,463,178 |
| Year Ended 3/31/2020 | $13.05 | (1.88%) | 0.86%(d) | 0.76%(d) | 0.19% | 42% | $2,164,853 |
| Year Ended 3/31/2019 | $14.09 | 11.09% | 0.88%(d) | 0.88%(d) | 0.02% | 41% | $1,957,462 |
| Year Ended 3/31/2018 | $14.86 | 21.09% | 0.85% | 0.85% | 0.09% | 50% | $2,155,633 |
| Year Ended 3/31/2017(f) | $12.89 | 9.80% | 0.89%(c) | 0.89%(c) | 0.38%(c) | 48% | $2,207,702 |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $18.08 | 43.57% | 0.68%(c) | 0.60%(c) | 0.03%(c) | 24% | $3 |
| Year Ended 3/31/2020(g) | $13.03 | (12.69%) | 0.74%(c),(d) | 0.60%(c),(d) | 0.44%(c) | 42% | $2 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 15 |
Notes to Financial Statements
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 1. Organization
Multi-Manager Growth Strategies
Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund is offered only through certain wrap fee programs sponsored and/or managed by Ameriprise Financial, Inc. (Ameriprise Financial) or its affiliates. The Fund offers each of
the share classes listed in the Statement of Assets and Liabilities which are not subject to any front-end sales charge or contingent deferred sales charge.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any
exchange are valued at the mean between the closing bid and asked prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are
valued based on the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available, the
securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange. Many
securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events
that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy adopted by the Board of Trustees. Under the policy, the
Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities
markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably
reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
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.
| 16 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend
income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 17 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid each calendar quarter. 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.
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 Investment Manager is responsible for the ultimate oversight of investments made by the
Fund. The Fund’s subadvisers (see Subadvisory agreements below) have the primary responsibility for the day-to-day portfolio management of their portion of the Fund. The management services fee is an annual fee
that is equal to a percentage of the Fund’s daily net assets that declines from 0.77% to 0.57% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months
ended September 30, 2020 was 0.67% of the Fund’s average daily net assets.
Subadvisory agreements
The Investment Manager has entered
into Subadvisory Agreements with each of Loomis, Sayles & Company, L.P. and Los Angeles Capital Management and Equity Research, Inc., each of which subadvises a portion of the assets of the Fund. New investments
in the Fund, net of any redemptions, are allocated in accordance with the Investment Manager’s determination, subject to the oversight of the Fund’s Board of Trustees. Each subadviser’s proportionate
share of investments in the Fund will vary due to market fluctuations. The Investment Manager compensates each subadviser to manage the investment of the Fund’s assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. 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.
| 18 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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. In addition, effective August 1, 2020 through July 31, 2021, Institutional 3 Class shares are subject to a contractual transfer
agency fee annual limitation of not more than 0.01% of the average daily net assets attributable to Institutional 3 Class.
For the six months ended September
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 (%) | |
| Institutional Class | 0.11 |
| Institutional 3 Class | 0.02 |
Distribution and service fees
The Fund has an agreement with
Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Fund
does not pay the Distributor a fee for the distribution services it provides to the Fund.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the class’ average daily net assets:
| Fee rate(s) contractual through July 31, 2021 | |
| Institutional Class | 0.74% |
| Institutional 3 Class | 0.60 |
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
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 19 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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. Reflected in the contractual cap
commitments, effective August 1, 2020 through July 31, 2021, is the Transfer Agent’s contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.01% for Institutional 3 Class
of the average daily net assets attributable to Institutional 3 Class, unless sooner terminated at the sole discretion of the Board of Trustees. Any fees waived and/or expenses reimbursed under the expense
reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At September 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 ($) |
| 2,292,401,000 | 1,187,463,000 | (17,069,000) | 1,170,394,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Fund will elect to treat the following late-year ordinary losses and post-October capital losses at March 31, 2020 as arising on April 1, 2020.
| Late year ordinary losses ($) | Post-October capital losses ($) |
| — | 30,832,709 |
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 $979,805,695 and $719,949,747, respectively, for the six months ended September 30, 2020. The amount of
purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to
as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
| 20 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended September 30, 2020.
Note 8. 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 September 30, 2020.
Note 9. Significant
risks
Information technology sector
risk
The Fund may be more susceptible to
the particular risks that may affect companies in the information technology sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the information technology sectors are
subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected
by factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for
market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their
securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies’ securities historically have been more volatile than
other securities, especially over the short term.
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
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 21 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 Fund performance may also be
significantly negatively impacted by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic. 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 their investment objectives. 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 our employees and to assure the continuity of our
business operations, we have implemented a work from home protocol for virtually all of our 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. Our operations teams seek to operate without significant disruptions in service. Our 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. We cannot, however, predict the impact that natural or man-made disasters, including
the COVID-19 pandemic, may have on the ability of our employees and third-party service providers to continue ordinary business operations and technology functions over near- or longer-term periods.
Shareholder concentration risk
At September 30, 2020, affiliated
shareholders of record owned 100.0% 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 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates 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.
| 22 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 23 |
Board Consideration
and Approval of Managementand Subadvisory Agreements
On June 17, 2020, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) and the Subadvisory Agreements (the Subadvisory Agreements) between the
Investment Manager and Loomis, Sayles & Company, L.P. and Los Angeles Capital Management and Equity Research, Inc. (the Subadvisers) with respect to Multi-Manager Growth Strategies Fund (the Fund), a series of the
Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the management team of the
Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation of the Management
Agreement and the Subadvisory Agreements (collectively, the Agreements).
In connection with their
deliberations regarding the continuation of the Management Agreement and the Subadvisory Agreements, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the
Agreements, and discussed these materials with representatives of the Investment Manager at Committee meetings held on March 10, 2020, April 30, 2020 and June 17, 2020 and at Board meetings held on March 11, 2020 and
June 17, 2020. In addition, the Board and its various committees consider matters bearing on the Agreements at other meetings throughout the year and in prior years and meet regularly with senior management of the
Trust and the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at
various times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various
matters with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 17, 2020, the Committee recommended that the Board
approve the continuation of the Management Agreement and the Subadvisory Agreements. On June 17, 2020, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement and the Subadvisory Agreements for the Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement and the Subadvisory Agreements. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement and the
Subadvisory Agreements for the Fund included the following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through July 31, 2021 so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | The terms and conditions of the Agreements; |
| • | The subadvisory fees payable by the Investment Manager under the Subadvisory Agreements; |
| • | The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various functions performed by the Investment Manager and the Subadvisers under the Agreements, including portfolio management and portfolio trading practices; |
| 24 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Board Consideration and Approval of
Management
and Subadvisory Agreements (continued)
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the reputation, regulatory history and resources of the Investment Manager and Subadvisers, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager and the Subadvisers with respect to compliance monitoring services, including an assessment of the Investment Manager’s and the Subadvisers’ compliance systems by the Fund’s Chief Compliance Officer; and |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund. |
Nature, extent and quality of
services provided under the Agreements
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager, the Subadvisers and the Investment Manager’s affiliates under the Agreements and under separate agreements
for the provision of transfer agency and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager, the Subadvisers and the Investment Manager’s
affiliates. The Committee and the Board considered, among other things, the Investment Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment
professionals (including compensation programs for personnel involved in fund management, reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality
of the Investment Manager’s and the Subadvisers’ investment research capabilities and trade execution services. The Committee and the Board also considered the potential benefits to shareholders of
investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager and the Subadvisers, which included consideration of the Investment Manager’s and each
Subadviser’s experience with funds using an investment strategy similar to that used by the Investment Manager and the Subadvisers for the Fund. The Committee and the Board noted the compliance programs of and
the compliance-related resources provided to the Fund by the Investment Manager and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the
Investment Manager’s ability to provide administrative services to the Fund and coordinate the activities of the Fund’s other service providers. The Board also noted that, based on information provided by
the Investment Manager, the Board had approved each Subadviser’s code of ethics and compliance program, and that the Chief Compliance Officer of the Funds reports to the Trustees on each Subadviser’s
compliance program.
The Committee and the Board
considered the diligence and selection process undertaken by the Investment Manager to select each Subadviser, including the Investment Manager’s rationale for recommending the continuation of the Subadvisory
Agreements, and the process for monitoring each Subadviser’s ongoing performance of services for the Fund. As part of these deliberations, the Committee and the Board considered the ability of the Investment
Manager, subject to the approval of the Board, to modify or enter into new subadvisory agreements without a shareholder vote pursuant to an exemptive order of the Securities and Exchange Commission. The Committee and
the Board also considered the scope of services provided to the Fund by the Investment Manager that are distinct from and in addition to those provided by the Subadvisers, including cash flow management, treasury
services, risk oversight, investment oversight and Subadviser selection, oversight and transition management. After reviewing these and related factors, the Committee and the Board concluded, within the context of
their overall conclusions, that the nature, extent and quality of the services provided to the Fund under the Agreements supported the continuation of the Management Agreement and the Subadvisory Agreements.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 25 |
Board Consideration and Approval of
Management
and Subadvisory Agreements (continued)
the Fund’s performance lagged that of a
relevant peer group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support
continuation of the Management Agreement and the Subadvisory Agreements. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was
stronger over the longer term; (ii) that the underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and
policies and that the Fund was performing within a reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s
performance was competitive when compared to other relevant performance benchmarks or peer groups; and (iv) that the Investment Manager or Subadvisers had taken or were taking steps designed to help improve the
Fund’s investment performance, including, but not limited to, replacing portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2019, the Fund’s performance was in the fifty-second, fifty-ninth and seventy-fifth percentile (where the best performance would be in the first percentile) of its category selected by
the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
The Committee and the Board also
considered the Investment Manager’s and Subadvisers’ performance and reputation generally, the Investment Manager’s evaluation of each Subadviser’s contribution to the Fund’s broader
investment mandate, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take steps intended to improve performance. After
reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund, the Investment Manager and the Subadvisers were
sufficient, in light of other considerations, to support the continuation of the Management Agreement and the Subadvisory Agreements.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement and the Subadvisory Agreements, as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under
the Management Agreement, the Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data
provided by the independent third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2019, the Fund’s actual management fee and net total expense
ratio were both ranked in the first quintile (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for
purposes of expense comparison. The Committee and the Board also considered the fees that the Subadvisers charge to their other clients, and noted that the Investment Manager pays the fees of the Subadvisers. The
Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement and the Subadvisory Agreements.
| 26 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
Board Consideration and Approval of
Management
and Subadvisory Agreements (continued)
Costs of services provided and profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, including with respect to funds for which unaffiliated subadvisers provide services information
about the allocation of expenses used to calculate profitability, and comparisons of profitability levels realized in 2019 to profitability levels realized in 2018. When reviewing profitability, the Committee and the
Board also considered court cases in which adviser profitability was an issue in whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In
addition, the Committee and the Board considered information provided by the Investment Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset
management firms that are, or are subsidiaries of, publicly traded companies. In this regard, the Committee and the Board also considered data provided by the independent fee consultant. Because the Subadvisory
Agreements were negotiated at arms-length by the Investment Manager, which is responsible for payments to the Subadvisers thereunder, the Committee and the Board did not consider the profitability to each Subadviser
from its relationship with the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement and the Subadvisory Agreements.
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
The Committee and the Board noted
that the breakpoints, if any, in the Subadvisory Agreements did not occur at the same levels as the breakpoints in the Management Agreement. The Committee and the Board noted that absent a shareholder vote, the
Investment Manager would bear any increase in fees payable under the Subadvisory Agreements. The Committee and the Board also noted the potential challenges of seeking to tailor the Management Agreement breakpoints to
those of a subadvisory agreement in this context, and the effect that capacity constraints on a subadviser’s ability to manage assets could potentially have on the ability of the Investment Manager to achieve
economies of scale, as new subadvisers may need to be added as the Fund grows, increasing the Investment Manager’s cost of compensating and overseeing the Fund’s subadvisers.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement and the Subadvisory Agreements.
Other benefits to the Investment
Manager and Subadvisers
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide transfer agency and shareholder services to the Fund. The Committee and the Board also considered the benefits of research made available to the Investment
Manager and the Subadvisers by reason of
| Multi-Manager Growth Strategies Fund | Semiannual Report 2020 | 27 |
Board Consideration and Approval of
Management
and Subadvisory Agreements (continued)
brokerage commissions generated by the
Fund’s securities transactions, and reviewed information about the Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this
connection, the Board also noted that the amount of research made available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the
Board recognized that the Investment Manager’s profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement and the Subadvisory Agreements. In their deliberations, the Trustees did not
identify any particular information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they
deemed to be material, including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the
continuation of the Management Agreement and the Subadvisory Agreements.
| 28 | Multi-Manager Growth Strategies Fund | Semiannual Report 2020 |
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/
SAR117_03_K01_(11/20)
Columbia Select
Large Cap Growth 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
shareholder 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
| 3 | |
| 5 | |
| 6 | |
| 9 | |
| 11 | |
| 12 | |
| 14 | |
| 18 | |
| 26 |
Columbia Select Large Cap Growth
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. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, 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 Select Large Cap Growth
Fund | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks long-term capital appreciation.
Portfolio management
Thomas Galvin, CFA
Lead Portfolio Manager
Managed Fund since 2003
Richard Carter
Portfolio Manager
Managed Fund since 2009
Todd Herget
Portfolio Manager
Managed Fund since 2009
Morningstar style boxTM
The Morningstar Style Box is based on a fund’s portfolio holdings. For equity funds, the vertical axis shows the market capitalization of the stocks owned, and the horizontal axis shows
investment style (value, blend, or growth). Information shown is based on the most recent data provided by Morningstar.
© 2020 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or
distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia Select Large Cap Growth 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| April 1, 2020 — September 30, 2020 | |||||||
| Account value at the beginning of the period ($) | 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 | 1,520.70 | 1,019.50 | 7.01 | 5.62 | 1.11 |
| Advisor Class | 1,000.00 | 1,000.00 | 1,523.60 | 1,020.71 | 5.50 | 4.41 | 0.87 |
| Class C | 1,000.00 | 1,000.00 | 1,515.60 | 1,015.74 | 11.73 | 9.40 | 1.86 |
| Institutional Class | 1,000.00 | 1,000.00 | 1,524.20 | 1,020.76 | 5.44 | 4.36 | 0.86 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 1,525.00 | 1,021.31 | 4.75 | 3.80 | 0.75 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 1,525.10 | 1,021.56 | 4.43 | 3.55 | 0.70 |
| Class R | 1,000.00 | 1,000.00 | 1,520.00 | 1,018.25 | 8.59 | 6.88 | 1.36 |
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 365.
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 Select Large Cap Growth Fund | Semiannual Report 2020 | 5 |
Portfolio of Investments
September 30, 2020 (Unaudited)
September 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 Select Large Cap Growth Fund | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Notes to Portfolio of
Investments
| (a) | Non-income producing investment. |
| (b) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
| (c) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.136% | ||||||||
| 62,707,939 | 287,309,685 | (328,297,607) | 12,121 | 21,732,138 | 2,661 | 27,922 | 21,734,312 | |
Abbreviation Legend
| ADR | American Depositary Receipt |
Fair value
measurements
The Fund categorizes
its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when
available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that
reflect the Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input
that is deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For
example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active
market.
Fair value inputs are
summarized in the three broad levels listed below:
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Communication Services | 192,642,528 | — | — | 192,642,528 |
| Consumer Discretionary | 403,504,759 | — | — | 403,504,759 |
| Consumer Staples | 78,877,486 | — | — | 78,877,486 |
| Financials | 52,291,461 | — | — | 52,291,461 |
| Health Care | 524,727,995 | — | — | 524,727,995 |
| Industrials | 100,040,712 | — | — | 100,040,712 |
| Information Technology | 748,919,178 | — | — | 748,919,178 |
| Materials | 47,343,483 | — | — | 47,343,483 |
| Total Common Stocks | 2,148,347,602 | — | — | 2,148,347,602 |
| Money Market Funds | 21,732,138 | — | — | 21,732,138 |
| Total Investments in Securities | 2,170,079,740 | — | — | 2,170,079,740 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 8 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $866,340,310) | $2,148,347,602 |
| Affiliated issuers (cost $21,732,283) | 21,732,138 |
| Receivable for: | |
| Investments sold | 24,823,546 |
| Capital shares sold | 889,398 |
| Dividends | 221,611 |
| Expense reimbursement due from Investment Manager | 2,850 |
| Prepaid expenses | 10,788 |
| Trustees’ deferred compensation plan | 376,543 |
| Other assets | 31,445 |
| Total assets | 2,196,435,921 |
| Liabilities | |
| Due to custodian | 460 |
| Payable for: | |
| Investments purchased | 17,063,564 |
| Capital shares purchased | 2,333,235 |
| Management services fees | 40,650 |
| Distribution and/or service fees | 3,471 |
| Transfer agent fees | 259,775 |
| Compensation of board members | 1,899 |
| Compensation of chief compliance officer | 193 |
| Other expenses | 64,168 |
| Trustees’ deferred compensation plan | 376,543 |
| Total liabilities | 20,143,958 |
| Net assets applicable to outstanding capital stock | $2,176,291,963 |
| Represented by | |
| Paid in capital | 606,470,495 |
| Total distributable earnings (loss) | 1,569,821,468 |
| Total - representing net assets applicable to outstanding capital stock | $2,176,291,963 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 9 |
Statement of Assets and Liabilities (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Class A | |
| Net assets | $228,049,414 |
| Shares outstanding | 15,919,945 |
| Net asset value per share | $14.32 |
| Maximum sales charge | 5.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $15.19 |
| Advisor Class | |
| Net assets | $19,415,998 |
| Shares outstanding | 1,208,442 |
| Net asset value per share | $16.07 |
| Class C | |
| Net assets | $65,036,997 |
| Shares outstanding | 5,784,614 |
| Net asset value per share | $11.24 |
| Institutional Class | |
| Net assets | $999,426,157 |
| Shares outstanding | 65,464,250 |
| Net asset value per share | $15.27 |
| Institutional 2 Class | |
| Net assets | $199,645,242 |
| Shares outstanding | 12,270,481 |
| Net asset value per share | $16.27 |
| Institutional 3 Class | |
| Net assets | $652,527,780 |
| Shares outstanding | 39,342,615 |
| Net asset value per share | $16.59 |
| Class R | |
| Net assets | $12,190,375 |
| Shares outstanding | 971,249 |
| Net asset value per share | $12.55 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Statement of Operations
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $3,959,898 |
| Dividends — affiliated issuers | 27,922 |
| Total income | 3,987,820 |
| Expenses: | |
| Management services fees | 6,932,668 |
| Distribution and/or service fees | |
| Class A | 245,718 |
| Class C | 326,953 |
| Class R | 27,606 |
| Transfer agent fees | |
| Class A | 158,333 |
| Advisor Class | 17,819 |
| Class C | 53,218 |
| Institutional Class | 739,800 |
| Institutional 2 Class | 51,662 |
| Institutional 3 Class | 24,415 |
| Class R | 8,931 |
| Compensation of board members | 22,888 |
| Custodian fees | 5,252 |
| Printing and postage fees | 63,088 |
| Registration fees | 70,952 |
| Audit fees | 14,790 |
| Legal fees | 24,748 |
| Compensation of chief compliance officer | 348 |
| Other | 34,292 |
| Total expenses | 8,823,481 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (175,761) |
| Fees waived by transfer agent | |
| Institutional 2 Class | (10,371) |
| Institutional 3 Class | (16,708) |
| Total net expenses | 8,620,641 |
| Net investment loss | (4,632,821) |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 296,162,108 |
| Investments — affiliated issuers | 2,661 |
| Net realized gain | 296,164,769 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 518,346,785 |
| Investments — affiliated issuers | 12,121 |
| Net change in unrealized appreciation (depreciation) | 518,358,906 |
| Net realized and unrealized gain | 814,523,675 |
| Net increase in net assets resulting from operations | $809,890,854 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 11 |
Statement of Changes in Net Assets
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||
| Net investment loss | $(4,632,821) | $(10,543,395) |
| Net realized gain | 296,164,769 | 433,277,082 |
| Net change in unrealized appreciation (depreciation) | 518,358,906 | (445,617,773) |
| Net increase (decrease) in net assets resulting from operations | 809,890,854 | (22,884,086) |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (17,389,731) | (62,359,419) |
| Advisor Class | (1,891,996) | (7,937,313) |
| Class C | (7,763,478) | (28,820,075) |
| Institutional Class | (80,140,320) | (334,322,198) |
| Institutional 2 Class | (14,336,169) | (48,653,797) |
| Institutional 3 Class | (49,435,581) | (211,282,836) |
| Class R | (1,128,865) | (3,352,970) |
| Total distributions to shareholders | (172,086,140) | (696,728,608) |
| Decrease in net assets from capital stock activity | (136,540,586) | (272,629,217) |
| Total increase (decrease) in net assets | 501,264,128 | (992,241,911) |
| Net assets at beginning of period | 1,675,027,835 | 2,667,269,746 |
| Net assets at end of period | $2,176,291,963 | $1,675,027,835 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| September 30, 2020 (Unaudited) | March 31, 2020 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 2,570,133 | 33,272,038 | 3,109,462 | 39,382,407 |
| Distributions reinvested | 1,306,233 | 15,674,794 | 4,621,135 | 56,698,747 |
| Redemptions | (2,599,899) | (33,218,432) | (7,804,231) | (99,235,870) |
| Net increase (decrease) | 1,276,467 | 15,728,400 | (73,634) | (3,154,716) |
| Advisor Class | ||||
| Subscriptions | 132,205 | 1,905,974 | 797,326 | 11,002,881 |
| Distributions reinvested | 135,183 | 1,818,206 | 566,692 | 7,659,177 |
| Redemptions | (772,866) | (11,298,593) | (1,717,471) | (23,498,213) |
| Net decrease | (505,478) | (7,574,413) | (353,453) | (4,836,155) |
| Class C | ||||
| Subscriptions | 463,549 | 4,582,129 | 1,024,889 | 10,419,128 |
| Distributions reinvested | 687,304 | 6,488,151 | 2,378,936 | 24,074,822 |
| Redemptions | (2,006,829) | (20,619,690) | (3,706,799) | (38,948,483) |
| Net decrease | (855,976) | (9,549,410) | (302,974) | (4,454,533) |
| Institutional Class | ||||
| Subscriptions | 7,457,946 | 101,060,142 | 21,382,381 | 283,798,237 |
| Distributions reinvested | 5,480,053 | 70,035,081 | 22,962,536 | 296,705,193 |
| Redemptions | (15,286,303) | (206,172,267) | (60,538,720) | (812,687,078) |
| Net decrease | (2,348,304) | (35,077,044) | (16,193,803) | (232,183,648) |
| Institutional 2 Class | ||||
| Subscriptions | 735,708 | 10,091,471 | 3,612,293 | 52,915,268 |
| Distributions reinvested | 1,052,266 | 14,331,864 | 3,574,785 | 48,638,364 |
| Redemptions | (1,960,693) | (28,143,026) | (4,987,590) | (69,290,649) |
| Net increase (decrease) | (172,719) | (3,719,691) | 2,199,488 | 32,262,983 |
| Institutional 3 Class | ||||
| Subscriptions | 2,423,374 | 35,086,127 | 4,053,027 | 58,465,131 |
| Distributions reinvested | 925,419 | 12,844,814 | 4,452,189 | 61,548,813 |
| Redemptions | (10,525,224) | (144,257,922) | (12,663,043) | (183,068,728) |
| Net decrease | (7,176,431) | (96,326,981) | (4,157,827) | (63,054,784) |
| Class R | ||||
| Subscriptions | 61,615 | 701,396 | 117,118 | 1,329,946 |
| Distributions reinvested | 107,307 | 1,128,865 | 305,169 | 3,352,970 |
| Redemptions | (162,907) | (1,851,708) | (167,897) | (1,891,280) |
| Net increase (decrease) | 6,015 | (21,447) | 254,390 | 2,791,636 |
| Total net decrease | (9,776,426) | (136,540,586) | (18,627,813) | (272,629,217) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 13 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.37 | (0.05) | 5.21 | 5.16 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $15.01 | (0.09) | (0.20) | (0.29) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $16.93 | (0.11) | 1.34 | 1.23 | (3.15) | (3.15) |
| Year Ended 3/31/2018 | $15.36 | (0.08) | 3.45 | 3.37 | (1.80) | (1.80) |
| Year Ended 3/31/2017 | $14.58 | (0.11) | 2.70 | 2.59 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $18.49 | (0.12) | (1.45) | (1.57) | (2.34) | (2.34) |
| Advisor Class | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.50 | (0.03) | 5.81 | 5.78 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $16.16 | (0.07) | (0.24) | (0.31) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $17.96 | (0.07) | 1.43 | 1.36 | (3.16) | (3.16) |
| Year Ended 3/31/2018 | $16.18 | (0.05) | 3.66 | 3.61 | (1.83) | (1.83) |
| Year Ended 3/31/2017 | $15.23 | (0.07) | 2.83 | 2.76 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $19.22 | (0.08) | (1.52) | (1.60) | (2.39) | (2.39) |
| Class C | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $8.37 | (0.07) | 4.15 | 4.08 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $13.00 | (0.16) | (0.12) | (0.28) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $15.16 | (0.20) | 1.16 | 0.96 | (3.12) | (3.12) |
| Year Ended 3/31/2018 | $13.99 | (0.18) | 3.12 | 2.94 | (1.77) | (1.77) |
| Year Ended 3/31/2017 | $13.53 | (0.21) | 2.48 | 2.27 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $17.32 | (0.23) | (1.35) | (1.58) | (2.21) | (2.21) |
| Institutional Class | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $10.97 | (0.03) | 5.54 | 5.51 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $15.61 | (0.06) | (0.23) | (0.29) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $17.45 | (0.07) | 1.39 | 1.32 | (3.16) | (3.16) |
| Year Ended 3/31/2018 | $15.78 | (0.03) | 3.53 | 3.50 | (1.83) | (1.83) |
| Year Ended 3/31/2017 | $14.89 | (0.07) | 2.77 | 2.70 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $18.84 | (0.08) | (1.48) | (1.56) | (2.39) | (2.39) |
| Institutional 2 Class | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.62 | (0.03) | 5.89 | 5.86 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $16.27 | (0.05) | (0.25) | (0.30) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $18.05 | (0.06) | 1.45 | 1.39 | (3.17) | (3.17) |
| Year Ended 3/31/2018 | $16.25 | (0.02) | 3.66 | 3.64 | (1.84) | (1.84) |
| Year Ended 3/31/2017 | $15.27 | (0.05) | 2.84 | 2.79 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $19.26 | (0.06) | (1.51) | (1.57) | (2.42) | (2.42) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Select Large Cap Growth 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 (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $14.32 | 52.07% | 1.13%(c) | 1.11%(c) | (0.71%)(c) | 11% | $228,049 |
| Year Ended 3/31/2020 | $10.37 | (4.31%) | 1.12%(d) | 1.12%(d),(e) | (0.71%) | 22% | $151,807 |
| Year Ended 3/31/2019 | $15.01 | 8.79% | 1.07%(d) | 1.07%(d),(e) | (0.67%) | 27% | $220,858 |
| Year Ended 3/31/2018 | $16.93 | 23.42% | 1.08%(f) | 1.08%(e),(f) | (0.50%) | 44% | $409,344 |
| Year Ended 3/31/2017 | $15.36 | 19.42% | 1.08% | 1.08%(e) | (0.71%) | 35% | $856,339 |
| Year Ended 3/31/2016 | $14.58 | (10.08%) | 1.08% | 1.08%(e) | (0.72%) | 56% | $1,097,096 |
| Advisor Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $16.07 | 52.36% | 0.88%(c) | 0.87%(c) | (0.47%)(c) | 11% | $19,416 |
| Year Ended 3/31/2020 | $11.50 | (4.10%) | 0.87%(d) | 0.87%(d),(e) | (0.46%) | 22% | $19,707 |
| Year Ended 3/31/2019 | $16.16 | 9.04% | 0.82%(d) | 0.82%(d),(e) | (0.42%) | 27% | $33,403 |
| Year Ended 3/31/2018 | $17.96 | 23.76% | 0.83%(f) | 0.83%(e),(f) | (0.29%) | 44% | $61,176 |
| Year Ended 3/31/2017 | $16.18 | 19.72% | 0.83% | 0.83%(e) | (0.46%) | 35% | $27,302 |
| Year Ended 3/31/2016 | $15.23 | (9.89%) | 0.83% | 0.83%(e) | (0.45%) | 56% | $31,199 |
| Class C | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.24 | 51.56% | 1.88%(c) | 1.86%(c) | (1.46%)(c) | 11% | $65,037 |
| Year Ended 3/31/2020 | $8.37 | (5.04%) | 1.88%(d) | 1.88%(d),(e) | (1.46%) | 22% | $55,584 |
| Year Ended 3/31/2019 | $13.00 | 7.93% | 1.83%(d) | 1.83%(d),(e) | (1.42%) | 27% | $90,268 |
| Year Ended 3/31/2018 | $15.16 | 22.55% | 1.83%(f) | 1.83%(e),(f) | (1.24%) | 44% | $128,181 |
| Year Ended 3/31/2017 | $13.99 | 18.52% | 1.83% | 1.83%(e) | (1.46%) | 35% | $160,526 |
| Year Ended 3/31/2016 | $13.53 | (10.79%) | 1.83% | 1.83%(e) | (1.46%) | 56% | $218,181 |
| Institutional Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $15.27 | 52.42% | 0.88%(c) | 0.86%(c) | (0.46%)(c) | 11% | $999,426 |
| Year Ended 3/31/2020 | $10.97 | (4.12%) | 0.87%(d) | 0.87%(d),(e) | (0.46%) | 22% | $744,099 |
| Year Ended 3/31/2019 | $15.61 | 9.08% | 0.83%(d) | 0.83%(d),(e) | (0.42%) | 27% | $1,311,174 |
| Year Ended 3/31/2018 | $17.45 | 23.66% | 0.83%(f) | 0.83%(e),(f) | (0.20%) | 44% | $1,471,337 |
| Year Ended 3/31/2017 | $15.78 | 19.77% | 0.83% | 0.83%(e) | (0.46%) | 35% | $2,661,832 |
| Year Ended 3/31/2016 | $14.89 | (9.88%) | 0.83% | 0.83%(e) | (0.46%) | 56% | $3,384,999 |
| Institutional 2 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $16.27 | 52.50% | 0.77%(c) | 0.75%(c) | (0.35%)(c) | 11% | $199,645 |
| Year Ended 3/31/2020 | $11.62 | (4.00%) | 0.77%(d) | 0.75%(d) | (0.34%) | 22% | $144,651 |
| Year Ended 3/31/2019 | $16.27 | 9.14% | 0.73%(d) | 0.72%(d) | (0.32%) | 27% | $166,669 |
| Year Ended 3/31/2018 | $18.05 | 23.87% | 0.73%(f) | 0.72%(f) | (0.14%) | 44% | $753,356 |
| Year Ended 3/31/2017 | $16.25 | 19.87% | 0.71% | 0.71% | (0.34%) | 35% | $711,730 |
| Year Ended 3/31/2016 | $15.27 | (9.75%) | 0.70% | 0.70% | (0.33%) | 56% | $617,120 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 15 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income (loss) | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $11.83 | (0.02) | 5.99 | 5.97 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $16.48 | (0.04) | (0.26) | (0.30) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $18.23 | (0.05) | 1.47 | 1.42 | (3.17) | (3.17) |
| Year Ended 3/31/2018 | $16.40 | (0.03) | 3.71 | 3.68 | (1.85) | (1.85) |
| Year Ended 3/31/2017 | $15.39 | (0.04) | 2.86 | 2.82 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $19.39 | (0.05) | (1.53) | (1.58) | (2.42) | (2.42) |
| Class R | ||||||
| Six Months Ended 9/30/2020 (Unaudited) | $9.21 | (0.05) | 4.60 | 4.55 | (1.21) | (1.21) |
| Year Ended 3/31/2020 | $13.83 | (0.11) | (0.16) | (0.27) | (4.35) | (4.35) |
| Year Ended 3/31/2019 | $15.87 | (0.14) | 1.24 | 1.10 | (3.14) | (3.14) |
| Year Ended 3/31/2018 | $14.51 | (0.11) | 3.24 | 3.13 | (1.77) | (1.77) |
| Year Ended 3/31/2017 | $13.90 | (0.14) | 2.56 | 2.42 | (1.81) | (1.81) |
| Year Ended 3/31/2016 | $17.74 | (0.16) | (1.38) | (1.54) | (2.30) | (2.30) |
| 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) | Ratios include line of credit interest expense which is less than 0.01%. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia Select Large Cap Growth 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 (loss) ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $16.59 | 52.51% | 0.72%(c) | 0.70%(c) | (0.30%)(c) | 11% | $652,528 |
| Year Ended 3/31/2020 | $11.83 | (3.93%) | 0.72%(d) | 0.71%(d) | (0.30%) | 22% | $550,287 |
| Year Ended 3/31/2019 | $16.48 | 9.24% | 0.69%(d) | 0.68%(d) | (0.27%) | 27% | $835,068 |
| Year Ended 3/31/2018 | $18.23 | 23.86% | 0.68%(f) | 0.68%(f) | (0.20%) | 44% | $1,239,700 |
| Year Ended 3/31/2017 | $16.40 | 19.91% | 0.67% | 0.67% | (0.22%) | 35% | $190,421 |
| Year Ended 3/31/2016 | $15.39 | (9.69%) | 0.65% | 0.65% | (0.27%) | 56% | $29,698 |
| Class R | |||||||
| Six Months Ended 9/30/2020 (Unaudited) | $12.55 | 52.00% | 1.38%(c) | 1.36%(c) | (0.96%)(c) | 11% | $12,190 |
| Year Ended 3/31/2020 | $9.21 | (4.59%) | 1.38%(d) | 1.38%(d),(e) | (0.97%) | 22% | $8,892 |
| Year Ended 3/31/2019 | $13.83 | 8.53% | 1.33%(d) | 1.33%(d),(e) | (0.92%) | 27% | $9,830 |
| Year Ended 3/31/2018 | $15.87 | 23.09% | 1.33%(f) | 1.33%(e),(f) | (0.75%) | 44% | $12,263 |
| Year Ended 3/31/2017 | $14.51 | 19.13% | 1.33% | 1.33%(e) | (0.96%) | 35% | $13,963 |
| Year Ended 3/31/2016 | $13.90 | (10.34%) | 1.33% | 1.33%(e) | (0.97%) | 56% | $17,358 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 17 |
Notes to Financial Statements
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 1. Organization
Columbia Select Large Cap Growth
Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 10 years. Advisor Class, Institutional Class, Institutional 2
Class, Institutional 3 Class and Class R shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also
described in the Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any
exchange are valued at the mean between the closing bid and asked prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are
valued based on the closing price or last trade on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available, the
securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange. Many
securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect events
that occur after such close but before the close of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy adopted by the Board of Trustees. Under the policy, the
Fund may utilize a third-party pricing service to determine these fair values. The third-party pricing service takes into account multiple factors, including, but not limited to, movements in the U.S. securities
markets, certain depositary receipts, futures contracts and foreign exchange rates that have occurred subsequent to the close of the foreign exchange or market, to determine a good faith estimate that reasonably
reflects the current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different from the quoted or published price, if available.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
| 18 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend
income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported, estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise
Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to shareholders.
Awards from class action litigation
are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded as
realized gains.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 19 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid each calendar quarter. 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.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.77% to 0.57% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended September 30, 2020 was 0.69% 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
| 20 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
share class. In addition, prior to August 1, 2020,
Institutional 2 Class shares were subject to a contractual transfer agency fee annual limitation of not more than 0.04% and Institutional 3 Class shares were subject to a contractual transfer agency fee annual
limitation of not more than 0.00% of the average daily net assets attributable to each share class.
For the six months ended September
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 | 0.16 |
| Advisor Class | 0.16 |
| Class C | 0.16 |
| Institutional Class | 0.16 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
| Class R | 0.16 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended September 30, 2020, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a
monthly distribution fee to the Distributor at the maximum annual rates of 0.75% and 0.50% of the average daily net assets attributable to Class C and Class R shares of the Fund, respectively.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended September 30, 2020, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 5.75 | 0.50 - 1.00(a) | 89,009 |
| Class C | — | 1.00(b) | 1,251 |
| (a) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 21 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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:
| August 1, 2020 through July 31, 2021 | Prior to August 1, 2020 | |
| Class A | 1.10% | 1.15% |
| Advisor Class | 0.85 | 0.90 |
| Class C | 1.85 | 1.90 |
| Institutional Class | 0.85 | 0.90 |
| Institutional 2 Class | 0.72 | 0.78 |
| Institutional 3 Class | 0.67 | 0.74 |
| Class R | 1.35 | 1.40 |
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. Reflected in the contractual cap commitment, prior to August 1, 2020, is the Transfer Agent’s contractual agreement to limit total transfer agency
fees to an annual rate of not more than 0.04% for Institutional 2 Class and 0.00% for Institutional 3 Class of the average daily net assets attributable to each share class. Any fees waived and/or expenses reimbursed
under the expense reimbursement arrangements described above are not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At September 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 ($) |
| 888,073,000 | 1,282,007,000 | — | 1,282,007,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Fund will elect to treat the following late-year ordinary losses and post-October capital losses at March 31, 2020 as arising on April 1, 2020.
| Late year ordinary losses ($) | Post-October capital losses ($) |
| 2,689,059 | — |
| 22 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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 $223,135,325 and $502,650,420, respectively, for the six months ended September 30, 2020. The amount of
purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes referred to
as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended September 30, 2020.
Note 8. 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 September 30, 2020.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 23 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 9. Significant
risks
Health care sector risk
The Fund may be more susceptible to
the particular risks that may affect companies in the health care sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the health care sector are subject to certain risks,
including restrictions on government reimbursement for medical expenses, government approval of medical products and services, competitive pricing pressures, and the rising cost of medical products and services
(especially for companies dependent upon a relatively limited number of products or services). Performance of such companies may be affected by factors including government regulation, obtaining and protecting patents
(or the failure to do so), product liability and other similar litigation as well as product obsolescence.
Information technology sector risk
The Fund may be more susceptible to
the particular risks that may affect companies in the information technology sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the information technology sectors are
subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected
by factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for
market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their
securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies’ securities historically have been more volatile than
other securities, especially over the short term.
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 Fund performance may also be
significantly negatively impacted by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic. 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
| 24 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 their
investment objectives. 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 our employees and to assure the continuity of our
business operations, we have implemented a work from home protocol for virtually all of our 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. Our operations teams seek to operate without significant disruptions in service. Our 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. We cannot, however, predict the impact that natural or man-made disasters, including
the COVID-19 pandemic, may have on the ability of our employees and third-party service providers to continue ordinary business operations and technology functions over near- or longer-term periods.
Shareholder concentration risk
At September 30, 2020, two
unaffiliated shareholders of record owned 38.8% 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. Affiliated
shareholders of record owned 24.0% 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 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates 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 Select Large Cap Growth Fund | Semiannual Report 2020 | 25 |
Board Consideration
and Approval of ManagementAgreement
On June 17, 2020, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Select Large Cap Growth Fund (the Fund), a series
of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the management team of the
Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation of the Management
Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 10, 2020, April 30, 2020 and June 17, 2020 and at Board meetings held on March 11, 2020 and June 17, 2020.
In addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust
and the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at
various times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various
matters with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 17, 2020, the Committee recommended that the Board
approve the continuation of the Management Agreement. On June 17, 2020, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the
Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
| • | Information on the investment performance of the Fund relative to the performance of a group of mutual funds determined to be comparable to the Fund by an independent third-party data provider, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses to those of a group of comparable mutual funds, as determined by the independent third-party data provider; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through July 31, 2021 so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | The terms and conditions of the Management Agreement; |
| • | The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of distribution, transfer agency and shareholder services to the Fund; |
| • | Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| 26 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreement (continued)
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief Compliance Officer; and |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund. |
Nature, extent and quality of
services provided under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, information that compared the performance of the Fund to the performance of a
group of comparable mutual funds as determined by the independent third-party data provider, and information and analysis provided by the independent fee consultant. The Committee and the Board also reviewed a
description of the third party’s methodology for identifying the Fund’s peer groups for purposes of performance and expense comparisons. Although the Fund’s performance lagged that of a relevant peer
group for certain (although not necessarily all) periods, the Committee and the Board concluded that other factors relevant to performance were sufficient, in light of other considerations, to support continuation of
the Management Agreement. Those factors included one or more of the following: (i) that the Fund’s performance, although lagging in certain recent periods, was stronger over the longer term; (ii) that the
underperformance was attributable, to a significant extent, to investment decisions that were reasonable and consistent with the Fund’s investment strategy and policies and that the Fund was performing within a
reasonable range of expectations, given those investment decisions, market conditions and the Fund’s investment strategy; (iii) that the Fund’s performance was competitive when compared to other relevant
performance benchmarks or peer groups; and (iv) that the Investment Manager had taken or was taking steps designed to help improve the Fund’s investment performance, including, but not limited to, replacing
portfolio managers, enhancing the resources supporting the portfolio managers, or modifying investment strategies.
The Committee and the Board noted
that, through December 31, 2019, the Fund’s performance was in the thirteenth, thirty-ninth and eighty-fifth percentile (where the best performance would be in the first percentile) of its category selected by
the independent third-party data provider for the purposes of performance comparisons for the one-, three- and five-year periods, respectively.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 27 |
Board Consideration and Approval of
Management
Agreement (continued)
The Committee and the Board also considered the
Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s willingness to take
steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the Fund and the
Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board considered data provided by the independent
third-party data provider and the independent fee consultant. The Committee and the Board noted that, as of December 31, 2019, the Fund’s actual management fee and net total expense ratio were both ranked in the
third quintile, (where the lowest fees and expenses would be in the first quintile) against the Fund’s expense universe as determined by the independent third-party data provider for purposes of expense
comparison. The Committee and the Board also took into account the fee waiver and expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
Costs of services provided and
profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2019 to profitability levels realized in 2018. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
| 28 | Columbia Select Large Cap Growth Fund | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreement (continued)
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources. The Committee and the Board noted that the management fee schedules for the Fund contained breakpoints that would reduce the fee rate
on assets above specified threshold levels.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide distribution, transfer agency and shareholder services to the Fund. In this regard, among other matters, the Committee and the Board considered that the
Fund’s distributor retains a portion of the distribution fees from the Fund and receives a portion of the sales charges on sales or redemptions of certain classes of shares of the Fund. The Committee and the
Board also considered the benefits of research made available to the Investment Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the
Investment Manager’s practices with respect to considering brokerage and research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made
available to the Investment Manager by reason of brokerage commissions had been declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability
would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
| Columbia Select Large Cap Growth Fund | Semiannual Report 2020 | 29 |
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/
SAR215_03_K01_(11/20)
Columbia Solutions
Conservative Portfolio
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
shareholder 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
| 3 | |
| 5 | |
| 6 | |
| 11 | |
| 12 | |
| 13 | |
| 14 | |
| 15 | |
| 29 |
Columbia Solutions Conservative
Portfolio (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. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, 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 Solutions Conservative
Portfolio | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
pursues consistent total returns by seeking to allocate risks across multiple asset classes.
Portfolio management
Joshua Kutin, CFA
Co-Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Co-Portfolio Manager
Managed Fund since 2017
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia Solutions Conservative Portfolio | 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 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 of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the
beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual”
column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over
the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual”
column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense
ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during
the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| April 1, 2020 — September 30, 2020 | |||||||
| Account value at the beginning of the period ($) | 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 | |
| Columbia Solutions Conservative Portfolio | 1,000.00 | 1,000.00 | 1,061.10 | 1,025.02 | 0.05 | 0.05 | 0.01 |
Expenses paid during the period
are equal to the annualized expense ratio 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 365.
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 Solutions Conservative Portfolio | Semiannual Report 2020 | 5 |
Portfolio of Investments
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
At September 30, 2020,
securities and/or cash totaling $610,562 were pledged as collateral.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 6 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Investments in derivatives
| Forward foreign currency exchange contracts | |||||
| Currency to be sold | Currency to be purchased | Counterparty | Settlement date | Unrealized appreciation ($) | Unrealized depreciation ($) |
| 266,000 CNY | 38,656 USD | Citi | 10/19/2020 | — | (446) |
| 673,522,000 IDR | 45,203 USD | Citi | 10/19/2020 | — | (27) |
| 12,516,000 KRW | 10,533 USD | Citi | 10/19/2020 | — | (187) |
| 2,000 MXN | 92 USD | Citi | 10/19/2020 | 2 | — |
| 89,104,000 CLP | 115,733 USD | Goldman Sachs | 10/19/2020 | 2,217 | — |
| 528,654,000 IDR | 35,504 USD | Goldman Sachs | 10/19/2020 | 3 | — |
| 3,135 USD | 2,400,000 CLP | Goldman Sachs | 10/19/2020 | — | (77) |
| 104,000 GBP | 135,179 USD | HSBC | 10/19/2020 | 970 | — |
| 75,689,034 JPY | 714,912 USD | HSBC | 10/19/2020 | — | (2,896) |
| 2,201,000 MXN | 101,889 USD | HSBC | 10/19/2020 | 2,555 | — |
| 1,037,000 MXN | 46,746 USD | HSBC | 10/19/2020 | — | (55) |
| 68,000 NOK | 7,536 USD | HSBC | 10/19/2020 | 246 | — |
| 390,000 SEK | 44,554 USD | HSBC | 10/19/2020 | 999 | — |
| 20,000 SGD | 14,634 USD | HSBC | 10/19/2020 | — | (18) |
| 89,077 USD | 69,000 GBP | HSBC | 10/19/2020 | — | (35) |
| 171,616 USD | 18,093,000 JPY | HSBC | 10/19/2020 | — | (29) |
| 21,774 USD | 195,000 SEK | HSBC | 10/19/2020 | 3 | — |
| 685 USD | 6,000 SEK | HSBC | 10/19/2020 | — | (15) |
| 8,057 USD | 11,000 SGD | HSBC | 10/19/2020 | 1 | — |
| 676,000 ZAR | 40,499 USD | HSBC | 10/19/2020 | 225 | — |
| 149,000 AUD | 108,424 USD | Morgan Stanley | 10/19/2020 | 1,699 | — |
| 3,000 CAD | 2,277 USD | Morgan Stanley | 10/19/2020 | 24 | — |
| 131,000 CHF | 143,505 USD | Morgan Stanley | 10/19/2020 | 1,207 | — |
| 215,000 DKK | 34,199 USD | Morgan Stanley | 10/19/2020 | 331 | — |
| 386,000 EUR | 456,862 USD | Morgan Stanley | 10/19/2020 | 4,130 | — |
| 91,000 GBP | 118,289 USD | Morgan Stanley | 10/19/2020 | 856 | — |
| 324,000 HKD | 41,790 USD | Morgan Stanley | 10/19/2020 | — | (13) |
| 50,839 USD | 71,000 AUD | Morgan Stanley | 10/19/2020 | 17 | — |
| 74,935 USD | 69,000 CHF | Morgan Stanley | 10/19/2020 | 16 | — |
| 17,324 USD | 110,000 DKK | Morgan Stanley | 10/19/2020 | 4 | — |
| 219,246 USD | 187,000 EUR | Morgan Stanley | 10/19/2020 | 82 | — |
| 2,379 USD | 2,000 EUR | Morgan Stanley | 10/19/2020 | — | (33) |
| 21,938 USD | 170,000 HKD | Morgan Stanley | 10/19/2020 | — | (4) |
| 1,305,000 ZAR | 78,160 USD | Morgan Stanley | 10/19/2020 | 413 | — |
| 202,915,000 IDR | 13,644 USD | Standard Chartered | 10/19/2020 | 18 | — |
| 85,836,000 KRW | 72,341 USD | Standard Chartered | 10/19/2020 | — | (1,179) |
| Total | 16,018 | (5,014) | |||
| Long futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| Australian 10-Year Bond | 1 | 12/2020 | AUD | 149,393 | 1,174 | — |
| Canadian Government 10-Year Bond | 2 | 12/2020 | CAD | 303,620 | — | (58) |
| Euro-Bobl | 1 | 12/2020 | EUR | 135,170 | — | (1) |
| Euro-BTP | 1 | 12/2020 | EUR | 147,580 | — | (84) |
| Euro-OAT | 1 | 12/2020 | EUR | 168,550 | 19 | — |
| Long Gilt | 2 | 12/2020 | GBP | 272,220 | 9 | — |
| MSCI EAFE Index | 7 | 12/2020 | USD | 648,620 | — | (11,973) |
| MSCI Emerging Markets Index | 6 | 12/2020 | USD | 326,550 | 2,396 | — |
| S&P 500 Index E-mini | 9 | 12/2020 | USD | 1,508,400 | 9,765 | — |
| S&P/TSX 60 Index | 1 | 12/2020 | CAD | 192,300 | — | (81) |
| U.S. Long Bond | 2 | 12/2020 | USD | 352,563 | — | (4) |
| U.S. Treasury 10-Year Note | 6 | 12/2020 | USD | 837,188 | 597 | — |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Long futures contracts (continued) | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 5-Year Note | 5 | 12/2020 | USD | 630,156 | 232 | — |
| U.S. Ultra Bond 10-Year Note | 3 | 12/2020 | USD | 479,766 | — | (309) |
| Total | 14,192 | (12,510) | ||||
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| Short Term Euro-BTP | (1) | 12/2020 | EUR | (113,270) | — | (379) |
| Cleared credit default swap contracts - sell protection | ||||||||||||
| Reference entity | Counterparty | Maturity date | Receive fixed rate (%) | Payment frequency | Implied credit spread (%)* | Notional currency | Notional amount | Value ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Markit CDX North America High Yield Index, Series 35 | Morgan Stanley | 12/20/2025 | 5.000 | Quarterly | 4.098 | USD | 1,107,000 | 1,106 | — | — | 1,106 | — |
| Markit CDX North America Investment Grade Index, Series 35 | Morgan Stanley | 12/20/2025 | 1.000 | Quarterly | 0.593 | USD | 625,000 | (1,729) | — | — | — | (1,729) |
| Total | (623) | — | — | 1,106 | (1,729) | |||||||
| * | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
Notes to Portfolio of
Investments
| (a) | Principal amounts are denominated in United States Dollars unless otherwise noted. |
| (b) | Principal and interest may not be guaranteed by a governmental entity. |
| (c) | Represents a security purchased on a forward commitment basis. |
| (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. At September 30, 2020, the total value of these securities amounted to $63,614, which represents 0.62% of total net assets. |
| (e) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
| (f) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.136% | ||||||||
| 4,963,719 | 6,126,778 | (3,186,058) | 1,742 | 7,906,181 | (80) | 8,270 | 7,906,972 | |
Currency Legend
| AUD | Australian Dollar |
| CAD | Canada Dollar |
| CHF | Swiss Franc |
| CLP | Chilean Peso |
| CNY | China Yuan Renminbi |
| DKK | Danish Krone |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 8 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Currency Legend (continued)
| EUR | Euro |
| GBP | British Pound |
| HKD | Hong Kong Dollar |
| IDR | Indonesian Rupiah |
| JPY | Japanese Yen |
| KRW | South Korean Won |
| MXN | Mexican Peso |
| NOK | Norwegian Krone |
| SEK | Swedish Krona |
| SGD | Singapore Dollar |
| USD | US Dollar |
| ZAR | South African Rand |
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 September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Foreign Government Obligations | — | 1,097,958 | — | 1,097,958 |
| U.S. Treasury Obligations | 1,699,915 | — | — | 1,699,915 |
| Money Market Funds | 7,906,181 | — | — | 7,906,181 |
| Total Investments in Securities | 9,606,096 | 1,097,958 | — | 10,704,054 |
| Investments in Derivatives |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Fair value measurements (continued)
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Asset | ||||
| Forward Foreign Currency Exchange Contracts | — | 16,018 | — | 16,018 |
| Futures Contracts | 14,192 | — | — | 14,192 |
| Swap Contracts | — | 1,106 | — | 1,106 |
| Liability | ||||
| Forward Foreign Currency Exchange Contracts | — | (5,014) | — | (5,014) |
| Futures Contracts | (12,889) | — | — | (12,889) |
| Swap Contracts | — | (1,729) | — | (1,729) |
| Total | 9,607,399 | 1,108,339 | — | 10,715,738 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
Derivative instruments are valued at
unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $2,708,367) | $2,797,873 |
| Affiliated issuers (cost $7,906,394) | 7,906,181 |
| Foreign currency (cost $9,704) | 9,686 |
| Margin deposits on: | |
| Futures contracts | 424,974 |
| Swap contracts | 185,588 |
| Unrealized appreciation on forward foreign currency exchange contracts | 16,018 |
| Receivable for: | |
| Investments sold | 10,660 |
| Dividends | 907 |
| Interest | 15,089 |
| Foreign tax reclaims | 328 |
| Variation margin for futures contracts | 26,162 |
| Variation margin for swap contracts | 51,208 |
| Expense reimbursement due from Investment Manager | 239 |
| Prepaid expenses | 55 |
| Trustees’ deferred compensation plan | 14,472 |
| Total assets | 11,459,440 |
| Liabilities | |
| Unrealized depreciation on forward foreign currency exchange contracts | 5,014 |
| Payable for: | |
| Investments purchased | 1,049,189 |
| Investments purchased on a delayed delivery basis | 71,508 |
| Capital shares purchased | 81,378 |
| Variation margin for futures contracts | 11,089 |
| Variation margin for swap contracts | 7,714 |
| Foreign capital gains taxes deferred | 231 |
| Compensation of board members | 1,734 |
| Compensation of chief compliance officer | 1 |
| Other expenses | 26,807 |
| Trustees’ deferred compensation plan | 14,472 |
| Total liabilities | 1,269,137 |
| Net assets applicable to outstanding capital stock | $10,190,303 |
| Represented by | |
| Paid in capital | 9,557,257 |
| Total distributable earnings (loss) | 633,046 |
| Total - representing net assets applicable to outstanding capital stock | $10,190,303 |
| Shares outstanding | 946,114 |
| Net asset value per share | 10.77 |
The accompanying Notes to Portfolio of Investments
are an integral part of this statement.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 11 |
Statement of Operations
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $8,270 |
| Interest | 35,396 |
| Foreign taxes withheld | (1,147) |
| Total income | 42,519 |
| Expenses: | |
| Compensation of board members | 8,029 |
| Custodian fees | 13,044 |
| Printing and postage fees | 3,393 |
| Audit fees | 19,804 |
| Legal fees | 129 |
| Compensation of chief compliance officer | 2 |
| Other | 1,225 |
| Total expenses | 45,626 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (45,131) |
| Total net expenses | 495 |
| Net investment income | 42,024 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 175,370 |
| Investments — affiliated issuers | (80) |
| Foreign currency translations | 1,781 |
| Forward foreign currency exchange contracts | (149,092) |
| Futures contracts | 510,373 |
| Swap contracts | 58,979 |
| Net realized gain | 597,331 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (22,677) |
| Investments — affiliated issuers | 1,742 |
| Foreign currency translations | 1,964 |
| Forward foreign currency exchange contracts | 36,238 |
| Futures contracts | (77,960) |
| Swap contracts | (336) |
| Foreign capital gains tax | (231) |
| Net change in unrealized appreciation (depreciation) | (61,260) |
| Net realized and unrealized gain | 536,071 |
| Net increase in net assets resulting from operations | $578,095 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||
| Net investment income | $42,024 | $181,639 |
| Net realized gain | 597,331 | 232,595 |
| Net change in unrealized appreciation (depreciation) | (61,260) | 45,273 |
| Net increase in net assets resulting from operations | 578,095 | 459,507 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | — | (586,320) |
| Total distributions to shareholders | — | (586,320) |
| Increase in net assets from capital stock activity | 255,773 | 1,120,633 |
| Total increase in net assets | 833,868 | 993,820 |
| Net assets at beginning of period | 9,356,435 | 8,362,615 |
| Net assets at end of period | $10,190,303 | $9,356,435 |
| Six Months Ended | Year Ended | |||
| September 30, 2020 (Unaudited) | March 31, 2020 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Subscriptions | 41,787 | 439,351 | 132,839 | 1,406,817 |
| Distributions reinvested | — | — | 57,084 | 585,684 |
| Redemptions | (17,393) | (183,578) | (84,741) | (871,868) |
| Total net increase | 24,394 | 255,773 | 105,182 | 1,120,633 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 13 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The 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.
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, | |||
| 2020 | 2019 | 2018 (a) | ||
| Per share data | ||||
| Net asset value, beginning of period | $10.15 | $10.24 | $10.05 | $10.00 |
| Income from investment operations: | ||||
| Net investment income | 0.04 | 0.21 | 0.21 | 0.06 |
| Net realized and unrealized gain | 0.58 | 0.34 | 0.36 | 0.03 |
| Total from investment operations | 0.62 | 0.55 | 0.57 | 0.09 |
| Less distributions to shareholders from: | ||||
| Net investment income | — | (0.26) | (0.30) | (0.03) |
| Net realized gains | — | (0.38) | (0.08) | (0.01) |
| Total distributions to shareholders | — | (0.64) | (0.38) | (0.04) |
| Net asset value, end of period | $10.77 | $10.15 | $10.24 | $10.05 |
| Total return | 6.11% | 5.26% | 5.85% | 0.90% |
| Ratios to average net assets | ||||
| Total gross expenses(b) | 0.92%(c) | 1.01% | 1.44% | 0.95%(c) |
| Total net expenses(b),(d) | 0.01%(c) | 0.01% | 0.01% | 0.01%(c) |
| Net investment income | 0.85%(c) | 1.98% | 2.11% | 1.45%(c) |
| Supplemental data | ||||
| Portfolio turnover | 40% | 218% | 141% | 30% |
| Net assets, end of period (in thousands) | $10,190 | $9,356 | $8,363 | $7,938 |
| Notes to Financial Highlights | |
| (a) | The Fund commenced operations on October 24, 2017. Per share data and total return reflect activity from that date. |
| (b) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (c) | Annualized. |
| (d) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 1. Organization
Columbia Solutions Conservative
Portfolio (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 is sold only to other Columbia Funds and certain collective investment trusts managed by Columbia Management Investment Advisers, LLC.
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 market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Forward foreign currency exchange
contracts are marked-to-market based upon foreign currency exchange rates provided by a pricing service.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Swap transactions are valued
through an independent pricing service or broker, or if neither is available, through an internal model based upon observable inputs.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 15 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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.
Foreign currency transactions and
translations
The values of all assets and
liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains
(losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes,
the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations
are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements
which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial
statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (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 clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy
and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the
clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the
| 16 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
ISDA Master Agreement typically permit a single
net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose
restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain
circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as
well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and
comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount
threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from
counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. 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.
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.
Forward foreign currency exchange
contracts
Forward foreign currency exchange
contracts are over-the-counter agreements between two parties to buy and sell a currency at a set price on a future date. The Fund utilized forward foreign currency exchange contracts to hedge the currency exposure
associated with some or all of the Fund’s securities, to shift foreign currency exposure back to U.S. dollars, to shift U.S. dollar exposure to achieve a representative weighted mix of major currencies in its
benchmark and to generate total return through long and short positions versus the U.S. dollar. These instruments may be used for other purposes in future periods.
The values of forward foreign
currency exchange contracts fluctuate daily with changes in foreign currency exchange rates. Changes in the value of these contracts are recorded as unrealized appreciation or depreciation until the contract is
exercised or has expired. The Fund will realize a gain or loss when the forward foreign currency exchange contract is closed or expires. Non-deliverable forward foreign currency exchange contracts are settled with the
counterparty in U.S. dollars without delivery of foreign currency.
The use of forward foreign currency
exchange contracts does not eliminate fluctuations in the prices of the Fund’s portfolio securities. The risks of forward foreign currency exchange contracts include movement in the values of the foreign
currencies relative to the U.S. dollar (or other foreign currencies) and the possibility that counterparties will not complete their contractual obligations, which may be in excess of the amount reflected, if any, in
the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark, to manage exposure to movements in interest rates, to manage exposure to the securities market and to maintain appropriate equity market exposure while keeping sufficient
cash to accommodate daily redemptions. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 17 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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.
Swap contracts
Swap contracts are negotiated in
the over-the-counter market and may be entered into as a bilateral contract or centrally cleared (centrally cleared swap contract). In a centrally cleared swap contract, immediately following execution of the swap
contract with a broker, the swap contract is novated to a central counterparty (the CCP) and the CCP becomes the Fund’s counterparty to the centrally cleared swap contract. The Fund is required to deposit
initial margin with the futures commission merchant (FCM), which pledges it through to the CCP in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap
contract. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is recorded in the Statement of Assets and Liabilities as margin deposits. For a bilateral swap
contract, the Fund has credit exposure to the broker, but exchanges daily variation margin with the broker based on the mark-to-market value of the swap contract to minimize that exposure. For centrally cleared swap
contracts, the Fund has minimal credit exposure to the FCM because the CCP stands between the Fund and the relevant buyer/seller on the other side of the contract. Swap contracts are marked-to-market daily and changes
in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swap contracts, if any, is recorded as a receivable or payable for variation margin in the Statement
of Assets and Liabilities.
Entering into these contracts
involves, to varying degrees, elements of interest, liquidity and counterparty credit risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there
may be unfavorable changes in interest rates, market conditions or other conditions, that it may be difficult to initiate a swap transaction or liquidate a position at an advantageous time or price which may result in
significant losses, and that the FCM or CCP may not fulfill its obligation under the contract.
Credit default swap contracts
The Fund entered into credit
default swap contracts to increase or decrease its credit exposure to an index and to manage credit risk exposure. These instruments may be used for other purposes in future periods. Credit default swap contracts are
transactions in which one party pays fixed periodic payments to a counterparty in consideration for an agreement from the counterparty to make a specific payment should a specified credit event(s) take place. Although
specified credit events are contract specific, credit events are typically bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium.
As the purchaser of a credit
default swap contract, the Fund purchases protection by paying a periodic interest rate on the notional amount to the counterparty. The interest amount is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as a realized loss upon payment. If a credit event as specified in the contract occurs, the Fund may have the option either to deliver the reference obligation to the seller in exchange
for a cash payment of its par amount, or to receive a net cash settlement equal to the par amount less an agreed-upon value of the reference obligation as of the date of the credit event. The difference between the
value of the obligation or cash delivered and the notional amount received will be recorded as a realized gain (loss).
| 18 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
As the seller of a credit default
swap contract, the Fund sells protection to a buyer and will generally receive a periodic interest rate on a notional amount. The interest amount is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as a realized gain upon receipt of the payment. If a credit event as specified in the contract with the counterparty occurs, the Fund may either be required to accept the reference
obligation from the buyer in exchange for a cash payment of its notional amount, or to pay the buyer a net cash settlement equal to the notional amount less an agreed-upon value of the reference obligation (recovery
value) as of the date of the credit event. The difference between the value of the obligation or cash received and the notional amount paid will be recorded as a realized gain (loss). The maximum potential amount of
undiscounted future payments the Fund could be required to make as the seller of protection under a credit default swap contract is equal to the notional amount of the reference obligation. These potential amounts may
be partially offset by any recovery values of the respective reference obligations or upfront receipts upon entering into the agreement. The notional amounts and market values of all credit default swap contracts in
which the Fund is the seller of protection, if any, are disclosed in the Credit Default Swap Contracts Outstanding schedule following the Portfolio of Investments.
As a protection seller, the Fund
bears the risk of loss from the credit events specified in the contract with the counterparty. For credit default swap contracts on credit indices, quoted market prices and resulting market values serve as an
indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s
credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract.
Any upfront payments or receipts by
the Fund upon entering into a credit default swap contract is recorded as an asset or liability, respectively, and amortized daily as a component of realized gain (loss) in the Statement of Operations. Credit default
swap contracts are valued daily, and the change in value is recorded as unrealized appreciation (depreciation) until the termination of the swap, at which time a realized gain (loss) is recorded.
Credit default swap contracts can
involve greater risks than if a fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to counterparty credit risk, leverage risk, hedging
risk, correlation risk and liquidity risk.
Interest rate swap contracts
The Fund entered into interest rate
swap transactions which may include inflation rate swap contracts to manage interest rate and market risk exposure to produce incremental earnings, to gain exposure to or protect itself from market rate changes and to
synthetically add or subtract principal exposure to a market. These instruments may be used for other purposes in future periods. An interest rate swap is an agreement between two parties where there are two flows and
payments are made between the two counterparties and the payments are dependent upon changes in an interest rate, inflation rate or inflation index calculated on a nominal amount. Interest rate swaps are agreements
between two parties that involve the exchange of one type of interest rate for another type of interest rate cash flow on specified dates in the future, based on a predetermined, specified notional amount. Certain
interest rate swaps are considered forward-starting, whereby the accrual for the exchange of cash flows does not begin until a specified date in the future. The net cash flow for a standard interest rate swap
transaction is generally the difference between a floating market interest rate versus a fixed interest rate.
Interest rate swaps are valued
daily and unrealized appreciation (depreciation) is recorded. Certain interest rate swaps may accrue periodic interest on a daily basis as a component of unrealized appreciation (depreciation); the Fund will realize a
gain or loss upon the payment or receipt of accrued interest. The Fund will realize a gain or a loss when the interest rate swap is terminated.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 19 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at September 30, 2020:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Credit risk | Component of total distributable earnings (loss) — unrealized appreciation on swap contracts | 1,106* |
| Equity risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 12,161* |
| Foreign exchange risk | Unrealized appreciation on forward foreign currency exchange contracts | 16,018 |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 2,031* |
| Total | 31,316 |
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Credit risk | Component of total distributable earnings (loss) — unrealized depreciation on swap contracts | 1,729* |
| Equity risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 12,054* |
| Foreign exchange risk | Unrealized depreciation on forward foreign currency exchange contracts | 5,014 |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 835* |
| Total | 19,632 |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended September 30, 2020:
| Amount of realized gain (loss) on derivatives recognized in income | ||||
| Risk exposure category | Forward foreign currency exchange contracts ($) | Futures contracts ($) | Swap contracts ($) | Total ($) |
| Credit risk | — | — | 60,898 | 60,898 |
| Equity risk | — | 443,196 | — | 443,196 |
| Foreign exchange risk | (149,092) | — | — | (149,092) |
| Interest rate risk | — | 67,177 | (1,919) | 65,258 |
| Total | (149,092) | 510,373 | 58,979 | 420,260 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | ||||
| Risk exposure category | Forward foreign currency exchange contracts ($) | Futures contracts ($) | Swap contracts ($) | Total ($) |
| Credit risk | — | — | (1,629) | (1,629) |
| Equity risk | — | (32,780) | — | (32,780) |
| Foreign exchange risk | 36,238 | — | — | 36,238 |
| Interest rate risk | — | (45,180) | 1,293 | (43,887) |
| Total | 36,238 | (77,960) | (336) | (42,058) |
| 20 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended September 30, 2020:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — long | 5,639,966 |
| Futures contracts — short | 255,386 |
| Credit default swap contracts — sell protection | 1,723,525 |
| Derivative instrument | Average unrealized appreciation ($)* | Average unrealized depreciation ($)* |
| Forward foreign currency exchange contracts | 14,210 | (8,638) |
| Interest rate swap contracts | 11 | (1,228) |
| * | Based on the ending quarterly outstanding amounts for the six months ended September 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.
Offsetting of assets and
liabilities
The following table presents the
Fund’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Fund as of September 30, 2020:
| Citi ($) | Goldman Sachs ($) | HSBC ($) | Morgan Stanley ($)(a) | Morgan Stanley ($)(a) | Standard Chartered ($) | Total ($) | |
| Assets | |||||||
| Centrally cleared credit default swap contracts (b) | - | - | - | - | 51,208 | - | 51,208 |
| Forward foreign currency exchange contracts | 2 | 2,220 | 4,999 | 8,779 | - | 18 | 16,018 |
| Total assets | 2 | 2,220 | 4,999 | 8,779 | 51,208 | 18 | 67,226 |
| Liabilities | |||||||
| Centrally cleared credit default swap contracts (b) | - | - | - | - | 7,714 | - | 7,714 |
| Forward foreign currency exchange contracts | 660 | 77 | 3,048 | 50 | - | 1,179 | 5,014 |
| Total liabilities | 660 | 77 | 3,048 | 50 | 7,714 | 1,179 | 12,728 |
| Total financial and derivative net assets | (658) | 2,143 | 1,951 | 8,729 | 43,494 | (1,161) | 54,498 |
| Total collateral received (pledged) (c) | - | - | - | - | - | - | - |
| Net amount (d) | (658) | 2,143 | 1,951 | 8,729 | 43,494 | (1,161) | 54,498 |
| (a) | Exposure can only be netted across transactions governed under the same master agreement with the same legal entity. |
| (b) | Centrally cleared swaps are included within payable/receivable for variation margin on the Statement of Assets and Liabilities. |
| (c) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| (d) | Represents the net amount due from/(to) counterparties in the event of default. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 21 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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.
Determination of net asset value
The NAV per share of the Fund is
computed by dividing the value of the net assets of the Fund by the total number of outstanding shares of that Fund, rounded to the nearest cent, at the close of regular trading (ordinarily 4:00 p.m. Eastern Time)
every day the New York Stock Exchange is open.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| 22 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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, subject
to the policies set by the Board of Trustees, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The Fund does not pay a management fee for
the investment advisory or administrative services provided to the Fund, but it may pay taxes, brokerage commissions and nonadvisory expenses.
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
The Fund has a Transfer and
Dividend Disbursing Agent Agreement with Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, under which
the Fund does not pay an annual fee to the Transfer Agent.
Distribution and service fees
The Fund has an agreement with
Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Fund
does not pay the Distributor a fee for the distribution services it provides to the Fund.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below), through July 31, 2030, 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 annual rate of 0.01% of the Fund’s average daily net assets.
Under the agreement governing this
fee waiver and/or expense reimbursement arrangement, 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.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 23 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At September 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 ($) |
| 10,615,000 | 144,000 | (43,000) | 101,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Fund will elect to treat the following late-year ordinary losses and post-October capital losses at March 31, 2020 as arising on April 1, 2020.
| Late year ordinary losses ($) | Post-October capital losses ($) |
| — | 128,020 |
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $1,413,493 and $3,149,880, respectively, for the six months ended September 30, 2020, of which $666,336 and
$2,239,912, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests significantly in
Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is
included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its
shares with a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes
referred to as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
| 24 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 September 30, 2020.
Note 8. 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 September 30, 2020.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency or
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
Foreign currency risk
The performance of the Fund may be
materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar, particularly if the Fund invests a significant percentage of its assets in foreign securities or other
assets denominated in currencies other than the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short or long periods of time for a number of reasons, including changes in interest
rates, imposition of currency controls and economic or political developments in the U.S. or abroad. The Fund may also incur currency conversion costs when converting foreign currencies into U.S. dollars and vice
versa.
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 Solutions Conservative Portfolio | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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 Fund performance may also be
significantly negatively impacted by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic. 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 their investment objectives. 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 our employees and to assure the continuity of our
business operations, we have implemented a work from home protocol for virtually all of our 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. Our operations teams seek to operate without significant disruptions in service. Our 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. We cannot, however, predict the impact that natural or man-made disasters, including
the COVID-19 pandemic, may have on the ability of our employees and third-party service providers to continue ordinary business operations and technology functions over near- or longer-term periods.
| 26 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Money market fund investment risk
An investment in a money market
fund is not a bank deposit and is not insured or guaranteed by any bank, the FDIC or any other government agency. Certain money market funds float their net asset value while others seek to preserve the value of
investments at a stable net asset value (typically, $1.00 per share). An investment in a money market fund, even an investment in a fund seeking to maintain a stable net asset value per share, is not guaranteed and it
is possible for the Fund to lose money by investing in these and other types of money market funds. If the liquidity of a money market fund’s portfolio deteriorates below certain levels, the money market fund
may suspend redemptions (i.e., impose a redemption gate) and thereby prevent the Fund from selling its investment in the money market fund or impose a fee of up to 2% on amounts the Fund redeems from the money market
fund (i.e., impose a liquidity fee). These measures may result in an investment loss or prohibit the Fund from redeeming shares when the Investment Manager would otherwise redeem shares. In addition to the fees and
expenses that the Fund directly bears, the Fund indirectly bears the fees and expenses of any money market funds in which it invests, including affiliated money market funds. By investing in a money market fund, the
Fund will be exposed to the investment risks of the money market fund in direct proportion of such investment. To the extent the Fund invests in instruments such as derivatives, the Fund may hold investments, which
may be significant, in money market fund shares to cover its obligations resulting from the Fund’s investments in derivatives. Money market funds and the securities they invest in are subject to comprehensive
regulations. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operation, performance and/or yield of money market
funds.
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 September 30, 2020, affiliated
shareholders of record owned 100.0% 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 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates 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
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 27 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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.
| 28 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Board Consideration
and Approval of ManagementAgreement
On June 17, 2020, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Solutions Conservative Portfolio (the Fund), a
series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the management team
of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation of the
Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 10, 2020, April 30, 2020 and June 17, 2020 and at Board meetings held on March 11, 2020 and June 17, 2020.
In addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust
and the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at
various times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various
matters with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 17, 2020, the Committee recommended that the Board
approve the continuation of the Management Agreement. On June 17, 2020, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the
Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
| • | Information on the investment performance of the Fund, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through July 31, 2030 so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | The terms and conditions of the Management Agreement; |
| • | The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief Compliance Officer; and |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund. |
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 29 |
Board Consideration and Approval of
Management
Agreement (continued)
Nature, extent and quality of services provided
under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, and information and analysis provided by the independent fee consultant.
The Committee and the Board also
considered the Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s
willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the
Fund and the Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board also took into account the fee waiver and
expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
| 30 | Columbia Solutions Conservative Portfolio | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreement (continued)
Costs of services provided and profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2019 to profitability levels realized in 2018. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide transfer agency and shareholder services to the Fund. The Committee and the Board also considered the benefits of research made available to the Investment
Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the Investment Manager’s practices with respect to considering brokerage and
research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made available to the Investment Manager by reason of brokerage commissions had been
declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
| Columbia Solutions Conservative Portfolio | Semiannual Report 2020 | 31 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR296_03_K01_(11/20)
Columbia Solutions
Aggressive Portfolio
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
shareholder 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
| 3 | |
| 5 | |
| 6 | |
| 11 | |
| 12 | |
| 13 | |
| 14 | |
| 15 | |
| 28 |
Columbia Solutions Aggressive
Portfolio (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. The Fund’s Form N-PORT is available on the SEC’s website at sec.gov. The Fund’s complete
schedule of portfolio holdings, as filed on 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.
You may obtain the current net
asset value (NAV) of Fund shares at no cost by calling 800.345.6611 or by sending an e-mail to serviceinquiries@columbiathreadneedle.com.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
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 Solutions Aggressive
Portfolio | Semiannual Report 2020
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
pursues consistent total returns by seeking to allocate risks across multiple asset classes.
Portfolio management
Joshua Kutin, CFA
Co-Portfolio Manager
Managed Fund since 2017
Alexander Wilkinson, CFA, CAIA
Co-Portfolio Manager
Managed Fund since 2017
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia Solutions Aggressive Portfolio | 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 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 of the Fund during the period. The actual and hypothetical information in the table is based on an initial investment of $1,000 at the
beginning of the period indicated and held for the entire period. Expense information is calculated two ways and each method provides you with different information. The amount listed in the “Actual”
column is calculated using the Fund’s actual operating expenses and total return for the period. You may use the Actual information, together with the amount invested, to estimate the expenses that you paid over
the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the results by the expenses paid during the period under the “Actual”
column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the Fund’s actual expense
ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or the expenses you paid during
the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| April 1, 2020 — September 30, 2020 | |||||||
| Account value at the beginning of the period ($) | 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 | |
| Columbia Solutions Aggressive Portfolio | 1,000.00 | 1,000.00 | 1,165.10 | 1,025.02 | 0.05 | 0.05 | 0.01 |
Expenses paid during the period
are equal to the annualized expense ratio 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 365.
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 Solutions Aggressive Portfolio | Semiannual Report 2020 | 5 |
Portfolio of Investments
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
(Percentages represent value of
investments compared to net assets)
Investments in securities
At September 30, 2020,
securities and/or cash totaling $976,513 were pledged as collateral.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 6 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Investments in derivatives
| Forward foreign currency exchange contracts | |||||
| Currency to be sold | Currency to be purchased | Counterparty | Settlement date | Unrealized appreciation ($) | Unrealized depreciation ($) |
| 256,000 CNY | 37,203 USD | Citi | 10/19/2020 | — | (430) |
| 1,084,560,000 IDR | 72,789 USD | Citi | 10/19/2020 | — | (43) |
| 116,283,000 KRW | 97,865 USD | Citi | 10/19/2020 | — | (1,733) |
| 3,000 MXN | 139 USD | Citi | 10/19/2020 | 3 | — |
| 118,856,000 CLP | 154,376 USD | Goldman Sachs | 10/19/2020 | 2,958 | — |
| 4,310 USD | 3,300,000 CLP | Goldman Sachs | 10/19/2020 | — | (106) |
| 45,000 GBP | 58,491 USD | HSBC | 10/19/2020 | 420 | — |
| 14,000 GBP | 18,011 USD | HSBC | 10/19/2020 | — | (56) |
| 3,397,000 JPY | 32,219 USD | HSBC | 10/19/2020 | 3 | — |
| 104,520,000 JPY | 986,099 USD | HSBC | 10/19/2020 | — | (5,132) |
| 3,543,000 MXN | 164,013 USD | HSBC | 10/19/2020 | 4,113 | — |
| 126,000 NOK | 13,964 USD | HSBC | 10/19/2020 | 455 | — |
| 797,000 SEK | 91,020 USD | HSBC | 10/19/2020 | 2,012 | — |
| 38,000 SGD | 27,805 USD | HSBC | 10/19/2020 | — | (34) |
| 85,204 USD | 66,000 GBP | HSBC | 10/19/2020 | — | (33) |
| 144,545 USD | 15,239,000 JPY | HSBC | 10/19/2020 | — | (24) |
| 222 USD | 2,000 NOK | HSBC | 10/19/2020 | — | (7) |
| 17,531 USD | 157,000 SEK | HSBC | 10/19/2020 | 2 | — |
| 800 USD | 7,000 SEK | HSBC | 10/19/2020 | — | (18) |
| 5,860 USD | 8,000 SGD | HSBC | 10/19/2020 | 1 | — |
| 2,136,000 ZAR | 127,967 USD | HSBC | 10/19/2020 | 710 | — |
| 321,000 AUD | 233,585 USD | Morgan Stanley | 10/19/2020 | 3,660 | — |
| 264,000 CHF | 289,331 USD | Morgan Stanley | 10/19/2020 | 2,563 | — |
| 402,000 DKK | 63,945 USD | Morgan Stanley | 10/19/2020 | 618 | — |
| 1,000,043 EUR | 1,183,708 USD | Morgan Stanley | 10/19/2020 | 10,783 | — |
| 246,000 GBP | 319,769 USD | Morgan Stanley | 10/19/2020 | 2,314 | — |
| 672,000 HKD | 86,676 USD | Morgan Stanley | 10/19/2020 | — | (27) |
| 34,370 USD | 48,000 AUD | Morgan Stanley | 10/19/2020 | 12 | — |
| 3,795 USD | 5,000 CAD | Morgan Stanley | 10/19/2020 | — | (39) |
| 66,247 USD | 61,000 CHF | Morgan Stanley | 10/19/2020 | 14 | — |
| 8,820 USD | 56,000 DKK | Morgan Stanley | 10/19/2020 | 2 | — |
| 207,521 USD | 177,000 EUR | Morgan Stanley | 10/19/2020 | 78 | — |
| 4,757 USD | 4,000 EUR | Morgan Stanley | 10/19/2020 | — | (66) |
| 21,550 USD | 167,000 HKD | Morgan Stanley | 10/19/2020 | — | (4) |
| 1,096,000 ZAR | 65,643 USD | Morgan Stanley | 10/19/2020 | 346 | — |
| 584,000 CNY | 85,844 USD | Standard Chartered | 10/19/2020 | — | (4) |
| 1,264,213,000 IDR | 85,006 USD | Standard Chartered | 10/19/2020 | 109 | — |
| 55,233,000 KRW | 46,549 USD | Standard Chartered | 10/19/2020 | — | (759) |
| Total | 31,176 | (8,515) | |||
| Long futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| 10-Year Mini Japanese Government Bond | 2 | 12/2020 | JPY | 30,422,000 | 469 | — |
| Australian 10-Year Bond | 1 | 12/2020 | AUD | 149,393 | 1,174 | — |
| Canadian Government 10-Year Bond | 2 | 12/2020 | CAD | 303,620 | — | (58) |
| Euro-Bobl | 1 | 12/2020 | EUR | 135,170 | 118 | — |
| Euro-Bobl | 1 | 12/2020 | EUR | 135,170 | — | (1) |
| Euro-OAT | 1 | 12/2020 | EUR | 168,550 | 19 | — |
| Long Gilt | 2 | 12/2020 | GBP | 272,220 | — | (340) |
| MSCI EAFE Index | 23 | 12/2020 | USD | 2,131,180 | — | (39,339) |
| MSCI Emerging Markets Index | 18 | 12/2020 | USD | 979,650 | 7,188 | — |
| S&P 500 Index E-mini | 28 | 12/2020 | USD | 4,692,800 | 30,381 | — |
| S&P/TSX 60 Index | 1 | 12/2020 | CAD | 192,300 | — | (81) |
| U.S. Long Bond | 1 | 12/2020 | USD | 176,281 | — | (2) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 7 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Long futures contracts (continued) | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 10-Year Note | 4 | 12/2020 | USD | 558,125 | 445 | — |
| U.S. Treasury 5-Year Note | 7 | 12/2020 | USD | 882,219 | 315 | — |
| U.S. Ultra Bond 10-Year Note | 2 | 12/2020 | USD | 319,844 | — | (2) |
| Total | 40,109 | (39,823) | ||||
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| Euro-BTP | (1) | 12/2020 | EUR | (147,580) | — | (2,227) |
| Short Term Euro-BTP | (1) | 12/2020 | EUR | (113,270) | — | (379) |
| Total | — | (2,606) | ||||
| Cleared credit default swap contracts - sell protection | ||||||||||||
| Reference entity | Counterparty | Maturity date | Receive fixed rate (%) | Payment frequency | Implied credit spread (%)* | Notional currency | Notional amount | Value ($) | Upfront payments ($) | Upfront receipts ($) | Unrealized appreciation ($) | Unrealized depreciation ($) |
| Markit CDX North America High Yield Index, Series 35 | Morgan Stanley | 12/20/2025 | 5.000 | Quarterly | 4.098 | USD | 854,000 | 854 | — | — | 854 | — |
| Markit CDX North America Investment Grade Index, Series 35 | Morgan Stanley | 12/20/2025 | 1.000 | Quarterly | 0.593 | USD | 483,000 | (1,331) | — | — | — | (1,331) |
| Total | (477) | — | — | 854 | (1,331) | |||||||
| * | Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate or sovereign issues as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. |
Notes to Portfolio of
Investments
| (a) | Principal amounts are denominated in United States Dollars unless otherwise noted. |
| (b) | Principal and interest may not be guaranteed by a governmental entity. |
| (c) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At September 30, 2020, the total value of these securities amounted to $281,090, which represents 3.57% of total net assets. |
| (d) | Represents a security purchased on a forward commitment basis. |
| (e) | The rate shown is the seven-day current annualized yield at September 30, 2020. |
| (f) | As defined in the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended September 30, 2020 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.136% | ||||||||
| 1,843,483 | 7,898,727 | (5,561,697) | 522 | 4,181,035 | (14) | 3,817 | 4,181,453 | |
Currency Legend
| AUD | Australian Dollar |
| CAD | Canada Dollar |
| CHF | Swiss Franc |
| CLP | Chilean Peso |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 8 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Currency Legend (continued)
| CNY | China Yuan Renminbi |
| DKK | Danish Krone |
| EUR | Euro |
| GBP | British Pound |
| HKD | Hong Kong Dollar |
| IDR | Indonesian Rupiah |
| JPY | Japanese Yen |
| KRW | South Korean Won |
| MXN | Mexican Peso |
| NOK | Norwegian Krone |
| SEK | Swedish Krona |
| SGD | Singapore Dollar |
| USD | US Dollar |
| ZAR | South African Rand |
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 Solutions Aggressive Portfolio | Semiannual Report 2020 | 9 |
Portfolio of Investments (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Fair value measurements (continued)
The following table is a summary of the inputs used to value the Fund’s investments at September 30, 2020:
The following table is a summary of the inputs used to value the Fund’s investments at September 30, 2020:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Foreign Government Obligations | — | 1,492,156 | — | 1,492,156 |
| U.S. Treasury Obligations | 1,938,957 | — | — | 1,938,957 |
| Money Market Funds | 4,181,035 | — | — | 4,181,035 |
| Total Investments in Securities | 6,119,992 | 1,492,156 | — | 7,612,148 |
| Investments in Derivatives | ||||
| Asset | ||||
| Forward Foreign Currency Exchange Contracts | — | 31,176 | — | 31,176 |
| Futures Contracts | 40,109 | — | — | 40,109 |
| Swap Contracts | — | 854 | — | 854 |
| Liability | ||||
| Forward Foreign Currency Exchange Contracts | — | (8,515) | — | (8,515) |
| Futures Contracts | (42,429) | — | — | (42,429) |
| Swap Contracts | — | (1,331) | — | (1,331) |
| Total | 6,117,672 | 1,514,340 | — | 7,632,012 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
Derivative instruments are valued at
unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Statement of Assets and Liabilities
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $3,285,529) | $3,431,113 |
| Affiliated issuers (cost $4,181,101) | 4,181,035 |
| Foreign currency (cost $25,083) | 24,758 |
| Margin deposits on: | |
| Futures contracts | 831,207 |
| Swap contracts | 145,306 |
| Unrealized appreciation on forward foreign currency exchange contracts | 31,176 |
| Receivable for: | |
| Investments sold | 8,443 |
| Capital shares sold | 48,166 |
| Dividends | 488 |
| Interest | 19,699 |
| Foreign tax reclaims | 743 |
| Variation margin for futures contracts | 51,836 |
| Variation margin for swap contracts | 39,546 |
| Expense reimbursement due from Investment Manager | 245 |
| Prepaid expenses | 40 |
| Trustees’ deferred compensation plan | 14,440 |
| Total assets | 8,828,241 |
| Liabilities | |
| Unrealized depreciation on forward foreign currency exchange contracts | 8,515 |
| Payable for: | |
| Investments purchased | 760,065 |
| Investments purchased on a delayed delivery basis | 85,809 |
| Capital shares purchased | 32,288 |
| Variation margin for futures contracts | 19,842 |
| Variation margin for swap contracts | 6,182 |
| Compensation of board members | 1,734 |
| Other expenses | 26,284 |
| Trustees’ deferred compensation plan | 14,440 |
| Total liabilities | 955,159 |
| Net assets applicable to outstanding capital stock | $7,873,082 |
| Represented by | |
| Paid in capital | 6,984,524 |
| Total distributable earnings (loss) | 888,558 |
| Total - representing net assets applicable to outstanding capital stock | $7,873,082 |
| Shares outstanding | 706,369 |
| Net asset value per share | 11.15 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 11 |
Statement of Operations
Six Months Ended September 30, 2020 (Unaudited)
Six Months Ended September 30, 2020 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $3,817 |
| Interest | 40,901 |
| Foreign taxes withheld | (873) |
| Total income | 43,845 |
| Expenses: | |
| Compensation of board members | 8,008 |
| Custodian fees | 12,969 |
| Printing and postage fees | 3,392 |
| Audit fees | 19,804 |
| Legal fees | 95 |
| Compensation of chief compliance officer | 1 |
| Other | 1,205 |
| Total expenses | 45,474 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (45,100) |
| Total net expenses | 374 |
| Net investment income | 43,471 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 142,819 |
| Investments — affiliated issuers | (14) |
| Foreign currency translations | 3,378 |
| Forward foreign currency exchange contracts | (243,631) |
| Futures contracts | 1,187,096 |
| Swap contracts | 42,348 |
| Net realized gain | 1,131,996 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | 30,311 |
| Investments — affiliated issuers | 522 |
| Foreign currency translations | 2,798 |
| Forward foreign currency exchange contracts | 57,652 |
| Futures contracts | (136,153) |
| Swap contracts | 587 |
| Net change in unrealized appreciation (depreciation) | (44,283) |
| Net realized and unrealized gain | 1,087,713 |
| Net increase in net assets resulting from operations | $1,131,184 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Statement of Changes in Net Assets
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, 2020 | |
| Operations | ||
| Net investment income | $43,471 | $141,075 |
| Net realized gain | 1,131,996 | 284,738 |
| Net change in unrealized appreciation (depreciation) | (44,283) | (14,111) |
| Net increase in net assets resulting from operations | 1,131,184 | 411,702 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | — | (777,112) |
| Total distributions to shareholders | — | (777,112) |
| Increase in net assets from capital stock activity | 73,777 | 599,692 |
| Total increase in net assets | 1,204,961 | 234,282 |
| Net assets at beginning of period | 6,668,121 | 6,433,839 |
| Net assets at end of period | $7,873,082 | $6,668,121 |
| Six Months Ended | Year Ended | |||
| September 30, 2020 (Unaudited) | March 31, 2020 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Subscriptions | 59,075 | 601,384 | 117,819 | 1,235,717 |
| Distributions reinvested | — | — | 73,755 | 775,902 |
| Redemptions | (49,835) | (527,607) | (130,054) | (1,411,927) |
| Total net increase | 9,240 | 73,777 | 61,520 | 599,692 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 13 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share 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.
| Six Months Ended September 30, 2020 (Unaudited) | Year Ended March 31, | |||
| 2020 | 2019 | 2018 (a) | ||
| Per share data | ||||
| Net asset value, beginning of period | $9.57 | $10.12 | $10.07 | $10.00 |
| Income from investment operations: | ||||
| Net investment income | 0.06 | 0.21 | 0.21 | 0.07 |
| Net realized and unrealized gain | 1.52 | 0.45 | 0.50 | 0.08 |
| Total from investment operations | 1.58 | 0.66 | 0.71 | 0.15 |
| Less distributions to shareholders from: | ||||
| Net investment income | — | (0.35) | (0.51) | — |
| Net realized gains | — | (0.86) | (0.15) | (0.08) |
| Total distributions to shareholders | — | (1.21) | (0.66) | (0.08) |
| Net asset value, end of period | $11.15 | $9.57 | $10.12 | $10.07 |
| Total return | 16.51% | 5.44% | 8.05% | 1.53% |
| Ratios to average net assets | ||||
| Total gross expenses(b) | 1.22%(c) | 1.33% | 1.78% | 1.10%(c) |
| Total net expenses(b),(d) | 0.01%(c) | 0.01% | 0.01% | 0.01%(c) |
| Net investment income | 1.16%(c) | 2.01% | 2.08% | 1.49%(c) |
| Supplemental data | ||||
| Portfolio turnover | 29% | 184% | 149% | 24% |
| Net assets, end of period (in thousands) | $7,873 | $6,668 | $6,434 | $6,557 |
| Notes to Financial Highlights | |
| (a) | The Fund commenced operations on October 24, 2017. Per share data and total return reflect activity from that date. |
| (b) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (c) | Annualized. |
| (d) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 1. Organization
Columbia Solutions Aggressive
Portfolio (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 is sold only to other Columbia Funds and certain collective investment trusts managed by Columbia Management Investment Advisers, LLC.
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 market value, unless this method results in a valuation that management believes does not approximate fair value.
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Forward foreign currency exchange
contracts are marked-to-market based upon foreign currency exchange rates provided by a pricing service.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Swap transactions are valued
through an independent pricing service or broker, or if neither is available, through an internal model based upon observable inputs.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 15 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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.
Foreign currency transactions and
translations
The values of all assets and
liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized gains
(losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising
from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.
For financial statement purposes,
the Fund does not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations
are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund invests in certain
derivative instruments, as detailed below, in seeking to meet its investment objectives. Derivatives are instruments whose values depend on, or are derived from, in whole or in part, the value of one or more
securities, currencies, commodities, indices, or other assets or instruments. Derivatives may be used to increase investment flexibility (including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes, to facilitate trading, to reduce transaction costs and to pursue higher investment returns. The Fund may also use derivative instruments to mitigate certain
investment risks, such as foreign currency exchange rate risk, interest rate risk and credit risk. Derivatives may involve various risks, including the potential inability of the counterparty to fulfill its
obligations under the terms of the contract, the potential for an illiquid secondary market (making it difficult for the Fund to sell or terminate, including at favorable prices) and the potential for market movements
which may expose the Fund to gains or losses in excess of the amount shown in the Statement of Assets and Liabilities. The notional amounts of derivative instruments, if applicable, are not recorded in the financial
statements.
A derivative instrument may suffer
a marked-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit risk on over-the-counter derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by
the Fund and the amount of any variation margin held by the counterparty, plus any replacement costs or related amounts. With exchange-traded or centrally cleared derivatives, there is reduced counterparty credit risk
to the Fund since the clearinghouse or central counterparty (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 clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy
and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, U.S. bankruptcy laws will typically allocate that shortfall on a pro-rata basis across all the
clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instrument’s payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the
| 16 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
ISDA Master Agreement typically permit a single
net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may impose
restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or CCP for exchange-traded and centrally cleared derivatives. Brokers can ask for margin in excess of the minimum in certain
circumstances. Collateral terms for most over-the-counter derivatives are subject to regulatory requirements to exchange variation margin with trading counterparties and may have contract specific margin terms as
well. For over-the-counter derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the marked-to-market amount for each transaction under such agreement and
comparing that amount to the value of any variation margin currently pledged by the Fund and/or the counterparty. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount
threshold (e.g., $250,000) before a transfer has to be made. To the extent amounts due to the Fund from its counterparties are not fully collateralized, contractually or otherwise, the Fund bears the risk of loss from
counterparty nonperformance. The Fund may also pay interest expense on cash collateral received from the broker. 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.
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.
Forward foreign currency exchange
contracts
Forward foreign currency exchange
contracts are over-the-counter agreements between two parties to buy and sell a currency at a set price on a future date. The Fund utilized forward foreign currency exchange contracts to hedge the currency exposure
associated with some or all of the Fund’s securities, to shift foreign currency exposure back to U.S. dollars, to shift U.S. dollar exposure to achieve a representative weighted mix of major currencies in its
benchmark and to generate total return through long and short positions versus the U.S. dollar. These instruments may be used for other purposes in future periods.
The values of forward foreign
currency exchange contracts fluctuate daily with changes in foreign currency exchange rates. Changes in the value of these contracts are recorded as unrealized appreciation or depreciation until the contract is
exercised or has expired. The Fund will realize a gain or loss when the forward foreign currency exchange contract is closed or expires. Non-deliverable forward foreign currency exchange contracts are settled with the
counterparty in U.S. dollars without delivery of foreign currency.
The use of forward foreign currency
exchange contracts does not eliminate fluctuations in the prices of the Fund’s portfolio securities. The risks of forward foreign currency exchange contracts include movement in the values of the foreign
currencies relative to the U.S. dollar (or other foreign currencies) and the possibility that counterparties will not complete their contractual obligations, which may be in excess of the amount reflected, if any, in
the Statement of Assets and Liabilities.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark, to manage exposure to movements in interest rates, to manage exposure to the securities market and to maintain appropriate equity market exposure while keeping sufficient
cash to accommodate daily redemptions. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 17 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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.
Swap contracts
Swap contracts are negotiated in
the over-the-counter market and may be entered into as a bilateral contract or centrally cleared (centrally cleared swap contract). In a centrally cleared swap contract, immediately following execution of the swap
contract with a broker, the swap contract is novated to a central counterparty (the CCP) and the CCP becomes the Fund’s counterparty to the centrally cleared swap contract. The Fund is required to deposit
initial margin with the futures commission merchant (FCM), which pledges it through to the CCP in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap
contract. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is recorded in the Statement of Assets and Liabilities as margin deposits. For a bilateral swap
contract, the Fund has credit exposure to the broker, but exchanges daily variation margin with the broker based on the mark-to-market value of the swap contract to minimize that exposure. For centrally cleared swap
contracts, the Fund has minimal credit exposure to the FCM because the CCP stands between the Fund and the relevant buyer/seller on the other side of the contract. Swap contracts are marked-to-market daily and changes
in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swap contracts, if any, is recorded as a receivable or payable for variation margin in the Statement
of Assets and Liabilities.
Entering into these contracts
involves, to varying degrees, elements of interest, liquidity and counterparty credit risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there
may be unfavorable changes in interest rates, market conditions or other conditions, that it may be difficult to initiate a swap transaction or liquidate a position at an advantageous time or price which may result in
significant losses, and that the FCM or CCP may not fulfill its obligation under the contract.
Credit default swap contracts
The Fund entered into credit
default swap contracts to increase or decrease its credit exposure to an index and to manage credit risk exposure. These instruments may be used for other purposes in future periods. Credit default swap contracts are
transactions in which one party pays fixed periodic payments to a counterparty in consideration for an agreement from the counterparty to make a specific payment should a specified credit event(s) take place. Although
specified credit events are contract specific, credit events are typically bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium.
As the purchaser of a credit
default swap contract, the Fund purchases protection by paying a periodic interest rate on the notional amount to the counterparty. The interest amount is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as a realized loss upon payment. If a credit event as specified in the contract occurs, the Fund may have the option either to deliver the reference obligation to the seller in exchange
for a cash payment of its par amount, or to receive a net cash settlement equal to the par amount less an agreed-upon value of the reference obligation as of the date of the credit event. The difference between the
value of the obligation or cash delivered and the notional amount received will be recorded as a realized gain (loss).
| 18 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
As the seller of a credit default
swap contract, the Fund sells protection to a buyer and will generally receive a periodic interest rate on a notional amount. The interest amount is accrued daily as a component of unrealized appreciation
(depreciation) and is recorded as a realized gain upon receipt of the payment. If a credit event as specified in the contract with the counterparty occurs, the Fund may either be required to accept the reference
obligation from the buyer in exchange for a cash payment of its notional amount, or to pay the buyer a net cash settlement equal to the notional amount less an agreed-upon value of the reference obligation (recovery
value) as of the date of the credit event. The difference between the value of the obligation or cash received and the notional amount paid will be recorded as a realized gain (loss). The maximum potential amount of
undiscounted future payments the Fund could be required to make as the seller of protection under a credit default swap contract is equal to the notional amount of the reference obligation. These potential amounts may
be partially offset by any recovery values of the respective reference obligations or upfront receipts upon entering into the agreement. The notional amounts and market values of all credit default swap contracts in
which the Fund is the seller of protection, if any, are disclosed in the Credit Default Swap Contracts Outstanding schedule following the Portfolio of Investments.
As a protection seller, the Fund
bears the risk of loss from the credit events specified in the contract with the counterparty. For credit default swap contracts on credit indices, quoted market prices and resulting market values serve as an
indicator of the current status of the payment/performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the reference entity’s
credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the contract.
Any upfront payments or receipts by
the Fund upon entering into a credit default swap contract is recorded as an asset or liability, respectively, and amortized daily as a component of realized gain (loss) in the Statement of Operations. Credit default
swap contracts are valued daily, and the change in value is recorded as unrealized appreciation (depreciation) until the termination of the swap, at which time a realized gain (loss) is recorded.
Credit default swap contracts can
involve greater risks than if a fund had invested in the reference obligation directly since, in addition to general market risks, credit default swaps are subject to counterparty credit risk, leverage risk, hedging
risk, correlation risk and liquidity risk.
Interest rate swap contracts
The Fund entered into interest rate
swap transactions which may include inflation rate swap contracts to manage interest rate and market risk exposure to produce incremental earnings, to gain exposure to or protect itself from market rate changes and to
synthetically add or subtract principal exposure to a market. These instruments may be used for other purposes in future periods. An interest rate swap is an agreement between two parties where there are two flows and
payments are made between the two counterparties and the payments are dependent upon changes in an interest rate, inflation rate or inflation index calculated on a nominal amount. Interest rate swaps are agreements
between two parties that involve the exchange of one type of interest rate for another type of interest rate cash flow on specified dates in the future, based on a predetermined, specified notional amount. Certain
interest rate swaps are considered forward-starting, whereby the accrual for the exchange of cash flows does not begin until a specified date in the future. The net cash flow for a standard interest rate swap
transaction is generally the difference between a floating market interest rate versus a fixed interest rate.
Interest rate swaps are valued
daily and unrealized appreciation (depreciation) is recorded. Certain interest rate swaps may accrue periodic interest on a daily basis as a component of unrealized appreciation (depreciation); the Fund will realize a
gain or loss upon the payment or receipt of accrued interest. The Fund will realize a gain or a loss when the interest rate swap is terminated.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 19 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at September 30, 2020:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Credit risk | Component of total distributable earnings (loss) — unrealized appreciation on swap contracts | 854* |
| Equity risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 37,569* |
| Foreign exchange risk | Unrealized appreciation on forward foreign currency exchange contracts | 31,176 |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 2,540* |
| Total | 72,139 |
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Credit risk | Component of total distributable earnings (loss) — unrealized depreciation on swap contracts | 1,331* |
| Equity risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 39,420* |
| Foreign exchange risk | Unrealized depreciation on forward foreign currency exchange contracts | 8,515 |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 3,009* |
| Total | 52,275 |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended September 30, 2020:
| Amount of realized gain (loss) on derivatives recognized in income | ||||
| Risk exposure category | Forward foreign currency exchange contracts ($) | Futures contracts ($) | Swap contracts ($) | Total ($) |
| Credit risk | — | — | 44,923 | 44,923 |
| Equity risk | — | 1,140,692 | — | 1,140,692 |
| Foreign exchange risk | (243,631) | — | — | (243,631) |
| Interest rate risk | — | 46,404 | (2,575) | 43,829 |
| Total | (243,631) | 1,187,096 | 42,348 | 985,813 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | ||||
| Risk exposure category | Forward foreign currency exchange contracts ($) | Futures contracts ($) | Swap contracts ($) | Total ($) |
| Credit risk | — | — | (1,239) | (1,239) |
| Equity risk | — | (106,137) | — | (106,137) |
| Foreign exchange risk | 57,652 | — | — | 57,652 |
| Interest rate risk | — | (30,016) | 1,826 | (28,190) |
| Total | 57,652 | (136,153) | 587 | (77,914) |
| 20 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended September 30, 2020:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — long | 10,585,287 |
| Futures contracts — short | 152,917 |
| Credit default swap contracts — sell protection | 1,319,650 |
| Derivative instrument | Average unrealized appreciation ($)* | Average unrealized depreciation ($)* |
| Forward foreign currency exchange contracts | 23,356 | (14,520) |
| Interest rate swap contracts | 12 | (1,581) |
| * | Based on the ending quarterly outstanding amounts for the six months ended September 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.
Offsetting of assets and
liabilities
The following table presents the
Fund’s gross and net amount of assets and liabilities available for offset under netting arrangements as well as any related collateral received or pledged by the Fund as of September 30, 2020:
| Citi ($) | Goldman Sachs ($) | HSBC ($) | Morgan Stanley ($)(a) | Morgan Stanley ($)(a) | Standard Chartered ($) | Total ($) | |
| Assets | |||||||
| Centrally cleared credit default swap contracts (b) | - | - | - | - | 39,546 | - | 39,546 |
| Forward foreign currency exchange contracts | 3 | 2,958 | 7,716 | 20,390 | - | 109 | 31,176 |
| Total assets | 3 | 2,958 | 7,716 | 20,390 | 39,546 | 109 | 70,722 |
| Liabilities | |||||||
| Centrally cleared credit default swap contracts (b) | - | - | - | - | 6,182 | - | 6,182 |
| Forward foreign currency exchange contracts | 2,206 | 106 | 5,304 | 136 | - | 763 | 8,515 |
| Total liabilities | 2,206 | 106 | 5,304 | 136 | 6,182 | 763 | 14,697 |
| Total financial and derivative net assets | (2,203) | 2,852 | 2,412 | 20,254 | 33,364 | (654) | 56,025 |
| Total collateral received (pledged) (c) | - | - | - | - | - | - | - |
| Net amount (d) | (2,203) | 2,852 | 2,412 | 20,254 | 33,364 | (654) | 56,025 |
| (a) | Exposure can only be netted across transactions governed under the same master agreement with the same legal entity. |
| (b) | Centrally cleared swaps are included within payable/receivable for variation margin on the Statement of Assets and Liabilities. |
| (c) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
| (d) | Represents the net amount due from/(to) counterparties in the event of default. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 21 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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.
Determination of net asset value
The NAV per share of the Fund is
computed by dividing the value of the net assets of the Fund by the total number of outstanding shares of that Fund, rounded to the nearest cent, at the close of regular trading (ordinarily 4:00 p.m. Eastern Time)
every day the New York Stock Exchange is open.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared and paid annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| 22 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 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, subject
to the policies set by the Board of Trustees, the Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The Fund does not pay a management fee for
the investment advisory or administrative services provided to the Fund, but it may pay taxes, brokerage commissions and nonadvisory expenses.
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
The Fund has a Transfer and
Dividend Disbursing Agent Agreement with Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, under which
the Fund does not pay an annual fee to the Transfer Agent.
Distribution and service fees
The Fund has an agreement with
Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder services. The Fund
does not pay the Distributor a fee for the distribution services it provides to the Fund.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below), through July 31, 2030, 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 annual rate of 0.01% of the Fund’s average daily net assets.
Under the agreement governing this
fee waiver and/or expense reimbursement arrangement, 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.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 23 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At September 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 ($) |
| 7,467,000 | 255,000 | (90,000) | 165,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Under current tax rules, regulated
investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year.
The Fund will elect to treat the following late-year ordinary losses and post-October capital losses at March 31, 2020 as arising on April 1, 2020.
| Late year ordinary losses ($) | Post-October capital losses ($) |
| — | 473,498 |
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $1,151,662 and $2,499,765, respectively, for the six months ended September 30, 2020, of which $502,238 and
$2,016,079, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests significantly in
Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is
included as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its
shares with a floating net asset value. In addition, the Board of Trustees of the Affiliated MMF may impose a fee on redemptions (sometimes referred to as a liquidity fee) or temporarily suspend redemptions (sometimes
referred to as imposing a redemption gate) in the event its liquidity falls below regulatory limits.
Note 7. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
| 24 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 September 30, 2020.
Note 8. 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 September 30, 2020.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency or
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if 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.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 25 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
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 Fund performance may also be
significantly negatively impacted by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic. 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 their investment objectives. 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 our employees and to assure the continuity of our
business operations, we have implemented a work from home protocol for virtually all of our 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. Our operations teams seek to operate without significant disruptions in service. Our 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. We cannot, however, predict the impact that natural or man-made disasters, including
the COVID-19 pandemic, may have on the ability of our employees and third-party service providers to continue ordinary business operations and technology functions over near- or longer-term periods.
Money market fund investment risk
An investment in a money market
fund is not a bank deposit and is not insured or guaranteed by any bank, the FDIC or any other government agency. Certain money market funds float their net asset value while others seek to preserve the value of
investments at a stable net asset value (typically, $1.00 per share). An investment in a money market fund, even an investment in a fund seeking to maintain a stable net asset value per share, is not guaranteed and it
is possible for the Fund to lose money by investing in these and other types of money market funds. If the liquidity of a money market fund’s portfolio deteriorates below certain levels, the money market fund
may suspend redemptions (i.e., impose a redemption gate) and thereby prevent the Fund from selling its investment in the money market fund or impose a fee of up to 2% on amounts the
| 26 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Notes to Financial Statements (continued)
September 30, 2020 (Unaudited)
September 30, 2020 (Unaudited)
Fund redeems from the money market fund (i.e.,
impose a liquidity fee). These measures may result in an investment loss or prohibit the Fund from redeeming shares when the Investment Manager would otherwise redeem shares. In addition to the fees and expenses that
the Fund directly bears, the Fund indirectly bears the fees and expenses of any money market funds in which it invests, including affiliated money market funds. By investing in a money market fund, the Fund will be
exposed to the investment risks of the money market fund in direct proportion of such investment. To the extent the Fund invests in instruments such as derivatives, the Fund may hold investments, which may be
significant, in money market fund shares to cover its obligations resulting from the Fund’s investments in derivatives. Money market funds and the securities they invest in are subject to comprehensive
regulations. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operation, performance and/or yield of money market
funds.
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 September 30, 2020, affiliated
shareholders of record owned 100.0% 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 10. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 11. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates 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 Solutions Aggressive Portfolio | Semiannual Report 2020 | 27 |
Board Consideration
and Approval of ManagementAgreement
On June 17, 2020, the Board of
Trustees (the Board) and the Trustees who are not interested persons (as defined in the Investment Company Act of 1940) (the Independent Trustees) of Columbia Funds Series Trust I (the Trust) unanimously approved the
continuation of the Management Agreement (the Management Agreement) with Columbia Management Investment Advisers, LLC (the Investment Manager) with respect to Columbia Solutions Aggressive Portfolio (the Fund), a
series of the Trust. As detailed below, the Board’s Advisory Fees and Expenses Committee (the Committee) and the Board met on multiple occasions to review and discuss, among themselves, with the management team
of the Investment Manager and with an independent fee consultant, materials provided by the Investment Manager, the independent fee consultant and others before determining to approve the continuation of the
Management Agreement.
In connection with their
deliberations regarding the continuation of the Management Agreement, the Committee and the Board evaluated materials requested from the Investment Manager regarding the Fund and the Management Agreement, and
discussed these materials with representatives of the Investment Manager at Committee meetings held on March 10, 2020, April 30, 2020 and June 17, 2020 and at Board meetings held on March 11, 2020 and June 17, 2020.
In addition, the Board and its various committees consider matters bearing on the Management Agreement at other meetings throughout the year and in prior years and meet regularly with senior management of the Trust
and the Investment Manager. Through the Board’s Investment Oversight Committees, Trustees also meet with selected portfolio managers of the funds the Trustees oversee and with other investment personnel at
various times throughout the year. The Committee and the Board also consulted with the independent fee consultant, Fund counsel and the Independent Trustees’ independent legal counsel, who advised on various
matters with respect to the Committee’s and the Board’s considerations and otherwise assisted the Committee and the Board in their deliberations. On June 17, 2020, the Committee recommended that the Board
approve the continuation of the Management Agreement. On June 17, 2020, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the Management Agreement for the
Fund.
The Committee and the Board
considered all information that they, their legal counsel or the Investment Manager believed reasonably necessary to evaluate and to determine whether to recommend for approval or approve the continuation of the
Management Agreement. The information and factors considered by the Committee and the Board in recommending for approval or approving the continuation of the Management Agreement for the Fund included the
following:
| • | Information on the investment performance of the Fund, as well as performance relative to benchmarks; |
| • | Information on the Fund’s management fees and total expenses; |
| • | The Investment Manager’s agreement to contractually limit or cap total operating expenses for the Fund through July 31, 2030 so that total operating expenses (excluding certain fees and expenses, such as transaction costs and certain other investment related expenses, interest, taxes, acquired fund fees and expenses, and infrequent and/or unusual expenses) would not exceed a specified annual rate, as a percentage of the Fund’s net assets; |
| • | The terms and conditions of the Management Agreement; |
| • | The current and proposed terms and conditions of other agreements and arrangements with affiliates of the Investment Manager relating to the operations of the Fund, including agreements with respect to the provision of transfer agency and shareholder services to the Fund; |
| • | Descriptions of various functions performed by the Investment Manager under the Management Agreement, including portfolio management and portfolio trading practices; |
| • | Information regarding any recently negotiated management fees of similarly-managed portfolios of other institutional clients of the Investment Manager; |
| • | Information regarding the reputation, regulatory history and resources of the Investment Manager, including information regarding senior management, portfolio managers and other personnel; |
| • | Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services, including an assessment of the Investment Manager’s compliance system by the Fund’s Chief Compliance Officer; and |
| • | The profitability to the Investment Manager and its affiliates from their relationships with the Fund. |
| 28 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Board Consideration and Approval of
Management
Agreement (continued)
Nature, extent and quality of services provided
under the Management Agreement
The Committee and the Board
considered the nature, extent and quality of services provided to the Fund by the Investment Manager and its affiliates under the Management Agreement and under separate agreements for the provision of transfer agency
and shareholder services, and the resources dedicated to the Fund and the other Columbia Funds by the Investment Manager and its affiliates. The Committee and the Board considered, among other things, the Investment
Manager’s ability to attract, motivate and retain highly qualified research, advisory and supervisory investment professionals (including compensation programs for personnel involved in fund management,
reputation and other attributes), the portfolio management services provided by those investment professionals, and the quality of the Investment Manager’s investment research capabilities and trade execution
services. The Committee and the Board also considered the potential benefits to shareholders of investing in a mutual fund that is part of a fund complex offering exposure to a variety of asset classes and investment
disciplines and providing a variety of fund and shareholder services.
The Committee and the Board also
considered the professional experience and qualifications of the senior personnel of the Investment Manager, which included consideration of the Investment Manager’s experience with funds using an investment
strategy similar to that used by the Investment Manager for the Fund. The Committee and the Board noted the compliance programs of and the compliance-related resources provided to the Fund by the Investment Manager
and its affiliates and the resources dedicated by the Investment Manager and its affiliates to risk management, and considered the Investment Manager’s ability to provide administrative services to the Fund and
coordinate the activities of the Fund’s other service providers. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the
nature, extent and quality of the services provided to the Fund under the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Committee and the Board
reviewed information about the performance of the Fund over various time periods, including performance information relative to benchmarks, and information and analysis provided by the independent fee consultant.
The Committee and the Board also
considered the Investment Manager’s performance and reputation generally, the Investment Manager’s historical responsiveness to Board concerns about performance, and the Investment Manager’s
willingness to take steps intended to improve performance. After reviewing these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the performance of the
Fund and the Investment Manager was sufficient, in light of other considerations, to support the continuation of the Management Agreement.
Investment management fee rates
and other expenses
The Committee and the Board
considered the management fees charged to the Fund under the Management Agreement as well as the total expenses incurred by the Fund. In assessing the reasonableness of the fees under the Management Agreement, the
Committee and the Board considered, among other information, the Fund’s total expense ratio as a percentage of average daily net assets. The Committee and the Board also took into account the fee waiver and
expense limitation arrangements agreed to by the Investment Manager, as noted above.
The Committee and the Board also
received and considered information about the management fees charged by the Investment Manager to institutional accounts. In considering the fees charged to those accounts, the Committee and the Board took into
account, among other things, the Investment Manager’s representations about the differences between managing mutual funds as compared to other types of accounts, including differences in the services provided,
differences in the risk profile of such business for the Investment Manager and the additional resources required to manage mutual funds effectively. The Committee and the Board also received and considered
information about the fees charged by the Investment Manager for sub-advisory services it provides to comparable unaffiliated funds. In evaluating the Fund’s management fees, the Committee and the Board also
took into account the demands, complexity and quality of the investment management of the Fund.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the management fee rates and expenses of the Fund, in light of other considerations, supported the continuation of
the Management Agreement.
| Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 | 29 |
Board Consideration and Approval of
Management
Agreement (continued)
Costs of services provided and profitability
The Committee and the Board also
took note of the costs the Investment Manager and its affiliates incur in connection with the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the
Fund, and the efforts undertaken by the Investment Manager and its affiliates to manage efficiently their costs to provide such services.
The Committee and the Board also
considered the compensation directly or indirectly received by the Investment Manager’s affiliates in connection with their relationships with the Fund. The Committee and the Board reviewed information provided
by management as to the profitability to the Investment Manager and its affiliates of their relationships with the Fund, information about the allocation of expenses used to calculate profitability, and comparisons of
profitability levels realized in 2019 to profitability levels realized in 2018. When reviewing profitability, the Committee and the Board also considered court cases in which adviser profitability was an issue in
whole or in part, the performance of similarly managed funds, the performance of the Fund, and the expense ratio of the Fund. In addition, the Committee and the Board considered information provided by the Investment
Manager regarding the Investment Manager’s financial condition and comparing its profitability to that of other asset management firms that are, or are subsidiaries of, publicly traded companies. In this regard,
the Committee and the Board also considered data provided by the independent fee consultant.
After reviewing these and related
factors, the Committee and the Board concluded, within the context of their overall conclusions, that the costs of services provided and the profitability to the Investment Manager and its affiliates from their
relationships with the Fund supported the continuation of the Management Agreement.
Economies of scale
The Committee and the Board
considered the potential existence of economies of scale in the provision by the Investment Manager of services to the Fund, to groups of related funds, and to the Investment Manager’s investment advisory
clients as a whole, and whether those economies of scale were shared with the Fund through breakpoints in investment management fees or other means, such as expense limitation arrangements and additional investments
by the Investment Manager in investment, trading, compliance and other resources.
In considering these matters, the
Committee and the Board also considered the costs of the services provided and the profitability to the Investment Manager and its affiliates from their relationships with the Fund, as noted above. After reviewing
these and related factors, the Committee and the Board concluded, within the context of their overall conclusions, that the extent to which any economies of scale were expected to be shared with the Fund supported the
continuation of the Management Agreement.
Other benefits to the Investment
Manager
The Committee and the Board
received and considered information regarding “fall-out” or ancillary benefits received by the Investment Manager and its affiliates as a result of their relationships with the Fund, such as the engagement
of the Investment Manager’s affiliates to provide transfer agency and shareholder services to the Fund. The Committee and the Board also considered the benefits of research made available to the Investment
Manager by reason of brokerage commissions generated by the Fund’s securities transactions, and reviewed information about the Investment Manager’s practices with respect to considering brokerage and
research services when allocating portfolio transactions. In this connection, the Board also noted that the amount of research made available to the Investment Manager by reason of brokerage commissions had been
declining over time, and may decline further. The Committee and the Board recognized that the Investment Manager’s profitability would be somewhat lower without these benefits.
Conclusion
The Committee and the Board
reviewed all of the above considerations in reaching their decisions to recommend or approve the continuation of the Management Agreement. In their deliberations, the Trustees did not identify any particular
information that was all-important or controlling, and individual Trustees may have attributed different weights to the various factors. Based on their evaluation of all factors that they deemed to be material,
including those factors described above, and assisted by the advice of independent legal counsel, the Board, including the Independent Trustees, voting separately, unanimously approved the continuation of the
Management Agreement.
| 30 | Columbia Solutions Aggressive Portfolio | Semiannual Report 2020 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2020 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR296_03_K01_(11/20)