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)
290 Congress Street
Boston, MA 02210
(Address of principal executive offices) (Zip code)
Daniel J. Beckman
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
Ryan C. Larrenaga, Esq.
c/o Columbia Management Investment Advisers, LLC
290 Congress Street
Boston, MA 02210
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 345-6611
Date of fiscal year end: July 31
Date of reporting period: January 31, 2022
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 Large Cap
Growth Fund
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Large Cap Growth Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Large Cap Growth
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks long-term capital appreciation.
Portfolio management
Melda Mergen, CFA, CAIA
Co-Portfolio Manager
Managed Fund since 2019
Tiffany Wade
Co-Portfolio Manager
Managed Fund since 2021
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.
© 2022 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 Large Cap Growth Fund | Semiannual Report 2022 | 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| August 1, 2021 — January 31, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 975.30 | 1,020.43 | 4.86 | 4.97 | 0.97 |
| Advisor Class | 1,000.00 | 1,000.00 | 976.40 | 1,021.69 | 3.61 | 3.69 | 0.72 |
| Class C | 1,000.00 | 1,000.00 | 971.40 | 1,016.62 | 8.59 | 8.79 | 1.72 |
| Class E | 1,000.00 | 1,000.00 | 973.70 | 1,019.01 | 6.25 | 6.40 | 1.25 |
| Institutional Class | 1,000.00 | 1,000.00 | 976.40 | 1,021.69 | 3.61 | 3.69 | 0.72 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 976.40 | 1,021.79 | 3.51 | 3.59 | 0.70 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 976.70 | 1,022.05 | 3.26 | 3.33 | 0.65 |
| Class R | 1,000.00 | 1,000.00 | 974.00 | 1,019.16 | 6.10 | 6.24 | 1.22 |
| Class V | 1,000.00 | 1,000.00 | 975.20 | 1,020.43 | 4.86 | 4.97 | 0.97 |
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 Large Cap Growth Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
January 31, 2022 (Unaudited)
January 31, 2022 (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 Large Cap Growth Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022,
securities and/or cash totaling $4,431,465 were pledged as collateral.
| Long futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| S&P 500 Index E-mini | 270 | 03/2022 | USD | 60,807,375 | — | (1,403,156) |
Notes to Portfolio of
Investments
| (a) | Non-income producing investment. |
| (b) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
| (c) | The rate shown is the seven-day current annualized yield at January 31, 2022. |
| (d) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended January 31, 2022 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.098% | ||||||||
| 53,826,343 | 337,876,200 | (325,902,015) | (4,464) | 65,796,064 | (2,555) | 25,606 | 65,809,226 | |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Currency Legend
| 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.
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 January 31, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Common Stocks | ||||
| Communication Services | 758,635,637 | — | — | 758,635,637 |
| Consumer Discretionary | 999,024,452 | — | — | 999,024,452 |
| Consumer Staples | 80,999,011 | — | — | 80,999,011 |
| Financials | 79,242,661 | — | — | 79,242,661 |
| Health Care | 580,395,984 | — | — | 580,395,984 |
| Industrials | 351,855,806 | — | — | 351,855,806 |
| Information Technology | 2,430,768,850 | — | — | 2,430,768,850 |
| Total Common Stocks | 5,280,922,401 | — | — | 5,280,922,401 |
| Money Market Funds | 65,796,064 | — | — | 65,796,064 |
| Total Investments in Securities | 5,346,718,465 | — | — | 5,346,718,465 |
| Investments in Derivatives | ||||
| Liability | ||||
| Futures Contracts | (1,403,156) | — | — | (1,403,156) |
| Total | 5,345,315,309 | — | — | 5,345,315,309 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
Derivative instruments are valued at
unrealized appreciation (depreciation).
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 8 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $2,607,724,731) | $5,280,922,401 |
| Affiliated issuers (cost $65,801,492) | 65,796,064 |
| Receivable for: | |
| Investments sold | 36,030,283 |
| Capital shares sold | 1,869,050 |
| Dividends | 444,228 |
| Variation margin for futures contracts | 1,093,500 |
| Prepaid expenses | 46,393 |
| Trustees’ deferred compensation plan | 520,505 |
| Other assets | 83,055 |
| Total assets | 5,386,805,479 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 35,434,896 |
| Capital shares purchased | 1,938,775 |
| Management services fees | 273,954 |
| Distribution and/or service fees | 66,336 |
| Transfer agent fees | 217,266 |
| Compensation of board members | 35,751 |
| Compensation of chief compliance officer | 139 |
| Other expenses | 32,761 |
| Trustees’ deferred compensation plan | 520,505 |
| Total liabilities | 38,520,383 |
| Net assets applicable to outstanding capital stock | $5,348,285,096 |
| Represented by | |
| Paid in capital | 2,511,322,355 |
| Total distributable earnings (loss) | 2,836,962,741 |
| Total - representing net assets applicable to outstanding capital stock | $5,348,285,096 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 9 |
Statement of Assets and Liabilities (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Class A | |
| Net assets | $2,709,911,111 |
| Shares outstanding | 48,255,826 |
| Net asset value per share | $56.16 |
| 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) | $59.59 |
| Advisor Class | |
| Net assets | $30,784,049 |
| Shares outstanding | 500,400 |
| Net asset value per share | $61.52 |
| Class C | |
| Net assets | $67,791,938 |
| Shares outstanding | 1,620,528 |
| Net asset value per share | $41.83 |
| Class E | |
| Net assets | $18,645,509 |
| Shares outstanding | 335,574 |
| Net asset value per share | $55.56 |
| Maximum sales charge | 4.50% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class E shares) | $58.18 |
| Institutional Class | |
| Net assets | $1,300,310,186 |
| Shares outstanding | 21,787,669 |
| Net asset value per share | $59.68 |
| Institutional 2 Class | |
| Net assets | $102,220,610 |
| Shares outstanding | 1,709,285 |
| Net asset value per share | $59.80 |
| Institutional 3 Class | |
| Net assets | $818,859,398 |
| Shares outstanding | 13,626,585 |
| Net asset value per share | $60.09 |
| Class R | |
| Net assets | $9,485,968 |
| Shares outstanding | 172,236 |
| Net asset value per share | $55.08 |
| Class V | |
| Net assets | $290,276,327 |
| Shares outstanding | 5,236,209 |
| Net asset value per share | $55.44 |
| 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 V shares) | $58.82 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Statement of Operations
Six Months Ended January 31, 2022 (Unaudited)
Six Months Ended January 31, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $30,182,257 |
| Dividends — affiliated issuers | 25,606 |
| Foreign taxes withheld | (26,239) |
| Total income | 30,181,624 |
| Expenses: | |
| Management services fees | 18,432,012 |
| Distribution and/or service fees | |
| Class A | 3,687,765 |
| Class C | 399,632 |
| Class E | 35,910 |
| Class R | 26,449 |
| Class V | 393,863 |
| Transfer agent fees | |
| Class A | 1,082,165 |
| Advisor Class | 11,946 |
| Class C | 29,309 |
| Class E | 25,872 |
| Institutional Class | 512,842 |
| Institutional 2 Class | 31,257 |
| Institutional 3 Class | 22,710 |
| Class R | 3,880 |
| Class V | 115,579 |
| Compensation of board members | 42,309 |
| Custodian fees | 14,882 |
| Printing and postage fees | 73,037 |
| Registration fees | 103,531 |
| Audit fees | 14,993 |
| Legal fees | 32,616 |
| Interest on collateral | 661 |
| Compensation of chief compliance officer | 729 |
| Other | 37,399 |
| Total expenses | 25,131,348 |
| Expense reduction | (9,062) |
| Total net expenses | 25,122,286 |
| Net investment income | 5,059,338 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 319,339,074 |
| Investments — affiliated issuers | (2,555) |
| Futures contracts | 4,459,527 |
| Net realized gain | 323,796,046 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (451,964,213) |
| Investments — affiliated issuers | (4,464) |
| Futures contracts | (2,500,660) |
| Net change in unrealized appreciation (depreciation) | (454,469,337) |
| Net realized and unrealized loss | (130,673,291) |
| Net decrease in net assets resulting from operations | $(125,613,953) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 11 |
Statement of Changes in Net Assets
| Six Months Ended January 31, 2022 (Unaudited) | Year Ended July 31, 2021 | |
| Operations | ||
| Net investment income (loss) | $5,059,338 | $(5,476,420) |
| Net realized gain | 323,796,046 | 566,809,565 |
| Net change in unrealized appreciation (depreciation) | (454,469,337) | 1,069,452,837 |
| Net increase (decrease) in net assets resulting from operations | (125,613,953) | 1,630,785,982 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (244,133,178) | (286,697,027) |
| Advisor Class | (2,720,087) | (1,594,971) |
| Class C | (7,868,155) | (13,498,493) |
| Class E | (1,646,962) | (2,128,937) |
| Institutional Class | (112,673,596) | (131,489,967) |
| Institutional 2 Class | (8,905,905) | (2,328,003) |
| Institutional 3 Class | (69,227,245) | (63,006,305) |
| Class R | (875,965) | (1,425,169) |
| Class V | (26,358,603) | (30,981,331) |
| Total distributions to shareholders | (474,409,696) | (533,150,203) |
| Increase in net assets from capital stock activity | 259,125,217 | 365,711,826 |
| Total increase (decrease) in net assets | (340,898,432) | 1,463,347,605 |
| Net assets at beginning of period | 5,689,183,528 | 4,225,835,923 |
| Net assets at end of period | $5,348,285,096 | $5,689,183,528 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 12 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| January 31, 2022 (Unaudited) | July 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 662,431 | 40,942,898 | 1,692,261 | 92,180,209 |
| Distributions reinvested | 3,855,701 | 235,930,339 | 5,459,391 | 276,791,144 |
| Redemptions | (2,551,075) | (158,224,525) | (5,058,719) | (274,713,720) |
| Net increase | 1,967,057 | 118,648,712 | 2,092,933 | 94,257,633 |
| Advisor Class | ||||
| Subscriptions | 220,206 | 15,158,618 | 119,324 | 7,179,335 |
| Distributions reinvested | 37,295 | 2,498,765 | 24,561 | 1,353,575 |
| Redemptions | (61,414) | (4,076,179) | (57,075) | (3,289,468) |
| Net increase | 196,087 | 13,581,204 | 86,810 | 5,243,442 |
| Class C | ||||
| Subscriptions | 114,418 | 5,345,472 | 232,886 | 9,800,732 |
| Distributions reinvested | 168,255 | 7,677,476 | 339,260 | 13,163,270 |
| Redemptions | (370,160) | (17,129,574) | (1,003,644) | (42,194,435) |
| Net decrease | (87,487) | (4,106,626) | (431,498) | (19,230,433) |
| Class E | ||||
| Subscriptions | 451 | 27,392 | 230 | 10,962 |
| Distributions reinvested | 27,191 | 1,646,962 | 42,367 | 2,128,937 |
| Redemptions | (20,781) | (1,294,703) | (54,829) | (2,953,716) |
| Net increase (decrease) | 6,861 | 379,651 | (12,232) | (813,817) |
| Institutional Class | ||||
| Subscriptions | 778,434 | 51,095,695 | 1,241,974 | 71,615,653 |
| Distributions reinvested | 1,613,177 | 104,856,520 | 2,277,626 | 122,057,961 |
| Redemptions | (1,114,525) | (72,988,482) | (2,869,901) | (163,390,306) |
| Net increase | 1,277,086 | 82,963,733 | 649,699 | 30,283,308 |
| Institutional 2 Class | ||||
| Subscriptions | 149,239 | 9,878,025 | 1,359,264 | 87,695,216 |
| Distributions reinvested | 136,672 | 8,901,412 | 43,360 | 2,328,003 |
| Redemptions | (202,843) | (13,248,075) | (110,786) | (6,394,925) |
| Net increase | 83,068 | 5,531,362 | 1,291,838 | 83,628,294 |
| Institutional 3 Class | ||||
| Subscriptions | 923,801 | 58,234,110 | 6,124,493 | 331,787,174 |
| Distributions reinvested | 754,572 | 49,379,219 | 679,477 | 36,637,408 |
| Redemptions | (1,193,015) | (80,266,916) | (3,441,935) | (200,663,745) |
| Net increase | 485,358 | 27,346,413 | 3,362,035 | 167,760,837 |
| Class R | ||||
| Subscriptions | 20,863 | 1,278,279 | 71,838 | 3,791,386 |
| Distributions reinvested | 13,640 | 818,807 | 21,288 | 1,060,751 |
| Redemptions | (28,913) | (1,710,276) | (163,052) | (8,872,547) |
| Net increase (decrease) | 5,590 | 386,810 | (69,926) | (4,020,410) |
| Class V | ||||
| Subscriptions | 95,481 | 5,776,482 | 144,581 | 7,309,544 |
| Distributions reinvested | 325,429 | 19,655,902 | 457,788 | 22,935,181 |
| Redemptions | (179,862) | (11,038,426) | (404,125) | (21,641,753) |
| Net increase | 241,048 | 14,393,958 | 198,244 | 8,602,972 |
| Total net increase | 4,174,668 | 259,125,217 | 7,167,903 | 365,711,826 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 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 1/31/2022 (Unaudited) | $62.66 | 0.02 | (1.12) | (1.10) | — | (5.40) | (5.40) |
| Year Ended 7/31/2021 | $50.90 | (0.11) | 18.52 | 18.41 | (0.07) | (6.58) | (6.65) |
| Year Ended 7/31/2020 | $43.43 | (0.01) | 11.15 | 11.14 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.86 | (0.04) | 2.98 | 2.94 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $39.81 | (0.05) | 6.62 | 6.57 | — | (2.52) | (2.52) |
| Year Ended 7/31/2017 | $33.82 | 0.06 | 6.47 | 6.53 | (0.08) | (0.46) | (0.54) |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $68.22 | 0.11 | (1.26) | (1.15) | — | (5.55) | (5.55) |
| Year Ended 7/31/2021 | $54.87 | 0.02 | 20.10 | 20.12 | (0.19) | (6.58) | (6.77) |
| Year Ended 7/31/2020 | $46.43 | 0.10 | 12.01 | 12.11 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $46.53 | 0.07 | 3.20 | 3.27 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $42.06 | 0.05 | 7.00 | 7.05 | (0.06) | (2.52) | (2.58) |
| Year Ended 7/31/2017 | $35.69 | 0.15 | 6.84 | 6.99 | (0.16) | (0.46) | (0.62) |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $47.73 | (0.16) | (0.80) | (0.96) | — | (4.94) | (4.94) |
| Year Ended 7/31/2021 | $40.39 | (0.39) | 14.31 | 13.92 | — | (6.58) | (6.58) |
| Year Ended 7/31/2020 | $35.43 | (0.27) | 8.90 | 8.63 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $36.70 | (0.29) | 2.39 | 2.10 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $33.95 | (0.30) | 5.57 | 5.27 | — | (2.52) | (2.52) |
| Year Ended 7/31/2017 | $29.06 | (0.18) | 5.53 | 5.35 | — | (0.46) | (0.46) |
| Class E | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $61.99 | (0.06) | (1.14) | (1.20) | — | (5.23) | (5.23) |
| Year Ended 7/31/2021 | $50.50 | (0.26) | 18.35 | 18.09 | (0.02) | (6.58) | (6.60) |
| Year Ended 7/31/2020 | $43.15 | (0.06) | 11.08 | 11.02 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.65 | (0.08) | 2.95 | 2.87 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $39.67 | (0.10) | 6.60 | 6.50 | — | (2.52) | (2.52) |
| Year Ended 7/31/2017 | $33.70 | 0.02 | 6.45 | 6.47 | (0.04) | (0.46) | (0.50) |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $66.34 | 0.11 | (1.22) | (1.11) | — | (5.55) | (5.55) |
| Year Ended 7/31/2021 | $53.52 | 0.03 | 19.56 | 19.59 | (0.19) | (6.58) | (6.77) |
| Year Ended 7/31/2020 | $45.38 | 0.10 | 11.71 | 11.81 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $45.56 | 0.06 | 3.13 | 3.19 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $41.23 | 0.06 | 6.86 | 6.92 | (0.07) | (2.52) | (2.59) |
| Year Ended 7/31/2017 | $35.00 | 0.15 | 6.70 | 6.85 | (0.16) | (0.46) | (0.62) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
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 1/31/2022 (Unaudited) | $56.16 | (2.47%) | 0.97%(c),(d) | 0.97%(c),(d),(e) | 0.07%(c) | 24% | $2,709,911 |
| Year Ended 7/31/2021 | $62.66 | 39.24% | 0.99%(d) | 0.99%(d),(e) | (0.21%) | 52% | $2,900,684 |
| Year Ended 7/31/2020 | $50.90 | 27.48% | 1.02% | 1.02%(e) | (0.03%) | 46% | $2,249,478 |
| Year Ended 7/31/2019 | $43.43 | 7.84% | 1.04% | 1.04% | (0.10%) | 35% | $1,932,367 |
| Year Ended 7/31/2018 | $43.86 | 17.26% | 1.05% | 1.05%(e) | (0.13%) | 32% | $1,976,097 |
| Year Ended 7/31/2017 | $39.81 | 19.61% | 1.09% | 1.09%(e) | 0.16% | 29% | $1,835,075 |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $61.52 | (2.36%) | 0.72%(c),(d) | 0.72%(c),(d),(e) | 0.33%(c) | 24% | $30,784 |
| Year Ended 7/31/2021 | $68.22 | 39.60% | 0.74%(d) | 0.74%(d),(e) | 0.03% | 52% | $20,760 |
| Year Ended 7/31/2020 | $54.87 | 27.81% | 0.77% | 0.77%(e) | 0.21% | 46% | $11,934 |
| Year Ended 7/31/2019 | $46.43 | 8.11% | 0.79% | 0.79% | 0.15% | 35% | $12,088 |
| Year Ended 7/31/2018 | $46.53 | 17.52% | 0.80% | 0.80%(e) | 0.12% | 32% | $14,629 |
| Year Ended 7/31/2017 | $42.06 | 19.92% | 0.84% | 0.84%(e) | 0.40% | 29% | $11,552 |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $41.83 | (2.86%) | 1.72%(c),(d) | 1.72%(c),(d),(e) | (0.67%)(c) | 24% | $67,792 |
| Year Ended 7/31/2021 | $47.73 | 38.22% | 1.74%(d) | 1.74%(d),(e) | (0.93%) | 52% | $81,519 |
| Year Ended 7/31/2020 | $40.39 | 26.54% | 1.77% | 1.77%(e) | (0.78%) | 46% | $86,411 |
| Year Ended 7/31/2019 | $35.43 | 7.03% | 1.79% | 1.79% | (0.86%) | 35% | $78,293 |
| Year Ended 7/31/2018 | $36.70 | 16.37% | 1.80% | 1.80%(e) | (0.87%) | 32% | $75,872 |
| Year Ended 7/31/2017 | $33.95 | 18.72% | 1.84% | 1.84%(e) | (0.58%) | 29% | $101,600 |
| Class E | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $55.56 | (2.63%) | 1.25%(c),(d) | 1.25%(c),(d),(e) | (0.21%)(c) | 24% | $18,646 |
| Year Ended 7/31/2021 | $61.99 | 38.87% | 1.27%(d) | 1.26%(d),(e) | (0.48%) | 52% | $20,376 |
| Year Ended 7/31/2020 | $50.50 | 27.37% | 1.12% | 1.12%(e) | (0.13%) | 46% | $17,216 |
| Year Ended 7/31/2019 | $43.15 | 7.71% | 1.14% | 1.14% | (0.20%) | 35% | $15,875 |
| Year Ended 7/31/2018 | $43.65 | 17.14% | 1.15% | 1.15%(e) | (0.23%) | 32% | $16,877 |
| Year Ended 7/31/2017 | $39.67 | 19.50% | 1.19% | 1.19%(e) | 0.06% | 29% | $16,478 |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $59.68 | (2.36%) | 0.72%(c),(d) | 0.72%(c),(d),(e) | 0.32%(c) | 24% | $1,300,310 |
| Year Ended 7/31/2021 | $66.34 | 39.61% | 0.74%(d) | 0.74%(d),(e) | 0.04% | 52% | $1,360,640 |
| Year Ended 7/31/2020 | $53.52 | 27.79% | 0.77% | 0.77%(e) | 0.22% | 46% | $1,062,936 |
| Year Ended 7/31/2019 | $45.38 | 8.11% | 0.79% | 0.79% | 0.15% | 35% | $975,664 |
| Year Ended 7/31/2018 | $45.56 | 17.54% | 0.80% | 0.80%(e) | 0.13% | 32% | $996,845 |
| Year Ended 7/31/2017 | $41.23 | 19.92% | 0.84% | 0.84%(e) | 0.40% | 29% | $1,132,702 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 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 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $66.47 | 0.11 | (1.22) | (1.11) | — | (5.56) | (5.56) |
| Year Ended 7/31/2021 | $53.62 | (0.00)(f) | 19.64 | 19.64 | (0.21) | (6.58) | (6.79) |
| Year Ended 7/31/2020 | $45.44 | 0.12 | 11.73 | 11.85 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $45.59 | 0.09 | 3.13 | 3.22 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $41.25 | 0.08 | 6.87 | 6.95 | (0.09) | (2.52) | (2.61) |
| Year Ended 7/31/2017 | $35.02 | 0.18 | 6.70 | 6.88 | (0.19) | (0.46) | (0.65) |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $66.78 | 0.13 | (1.23) | (1.10) | — | (5.59) | (5.59) |
| Year Ended 7/31/2021 | $53.84 | 0.05 | 19.70 | 19.75 | (0.23) | (6.58) | (6.81) |
| Year Ended 7/31/2020 | $45.59 | 0.14 | 11.78 | 11.92 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $45.70 | 0.11 | 3.15 | 3.26 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $41.35 | 0.09 | 6.88 | 6.97 | (0.10) | (2.52) | (2.62) |
| Year Ended 7/31/2017 | $35.10 | 0.16 | 6.76 | 6.92 | (0.21) | (0.46) | (0.67) |
| Class R | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $61.49 | (0.05) | (1.11) | (1.16) | — | (5.25) | (5.25) |
| Year Ended 7/31/2021 | $50.11 | (0.23) | 18.19 | 17.96 | — | (6.58) | (6.58) |
| Year Ended 7/31/2020 | $42.92 | (0.12) | 10.98 | 10.86 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.49 | (0.14) | 2.94 | 2.80 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $39.59 | (0.14) | 6.56 | 6.42 | — | (2.52) | (2.52) |
| Year Ended 7/31/2017 | $33.65 | (0.04) | 6.44 | 6.40 | — | (0.46) | (0.46) |
| Class V | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $61.93 | 0.02 | (1.11) | (1.09) | — | (5.40) | (5.40) |
| Year Ended 7/31/2021 | $50.37 | (0.11) | 18.32 | 18.21 | (0.07) | (6.58) | (6.65) |
| Year Ended 7/31/2020 | $43.01 | (0.01) | 11.04 | 11.03 | — | (3.67) | (3.67) |
| Year Ended 7/31/2019 | $43.47 | (0.04) | 2.95 | 2.91 | — | (3.37) | (3.37) |
| Year Ended 7/31/2018 | $39.48 | (0.05) | 6.56 | 6.51 | — | (2.52) | (2.52) |
| Year Ended 7/31/2017 | $33.55 | 0.06 | 6.41 | 6.47 | (0.08) | (0.46) | (0.54) |
| 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 interest on collateral expense which is less than 0.01%. |
| (e) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (f) | Rounds to zero. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
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 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $59.80 | (2.36%) | 0.70%(c),(d) | 0.70%(c),(d) | 0.33%(c) | 24% | $102,221 |
| Year Ended 7/31/2021 | $66.47 | 39.63% | 0.72%(d) | 0.72%(d) | (0.00%)(f) | 52% | $108,093 |
| Year Ended 7/31/2020 | $53.62 | 27.84% | 0.73% | 0.73% | 0.26% | 46% | $17,929 |
| Year Ended 7/31/2019 | $45.44 | 8.17% | 0.74% | 0.74% | 0.20% | 35% | $13,783 |
| Year Ended 7/31/2018 | $45.59 | 17.63% | 0.73% | 0.73% | 0.19% | 32% | $12,715 |
| Year Ended 7/31/2017 | $41.25 | 20.02% | 0.74% | 0.74% | 0.49% | 29% | $25,954 |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $60.09 | (2.33%) | 0.65%(c),(d) | 0.65%(c),(d) | 0.39%(c) | 24% | $818,859 |
| Year Ended 7/31/2021 | $66.78 | 39.70% | 0.66%(d) | 0.66%(d) | 0.09% | 52% | $877,535 |
| Year Ended 7/31/2020 | $53.84 | 27.91% | 0.68% | 0.68% | 0.31% | 46% | $526,471 |
| Year Ended 7/31/2019 | $45.59 | 8.24% | 0.69% | 0.69% | 0.26% | 35% | $394,049 |
| Year Ended 7/31/2018 | $45.70 | 17.65% | 0.69% | 0.69% | 0.20% | 32% | $428,819 |
| Year Ended 7/31/2017 | $41.35 | 20.09% | 0.69% | 0.69% | 0.41% | 29% | $184,471 |
| Class R | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $55.08 | (2.60%) | 1.22%(c),(d) | 1.22%(c),(d),(e) | (0.18%)(c) | 24% | $9,486 |
| Year Ended 7/31/2021 | $61.49 | 38.92% | 1.24%(d) | 1.24%(d),(e) | (0.44%) | 52% | $10,247 |
| Year Ended 7/31/2020 | $50.11 | 27.14% | 1.27% | 1.27%(e) | (0.28%) | 46% | $11,856 |
| Year Ended 7/31/2019 | $42.92 | 7.57% | 1.29% | 1.29% | (0.35%) | 35% | $13,233 |
| Year Ended 7/31/2018 | $43.49 | 16.96% | 1.30% | 1.30%(e) | (0.35%) | 32% | $15,911 |
| Year Ended 7/31/2017 | $39.59 | 19.29% | 1.34% | 1.34%(e) | (0.10%) | 29% | $29,781 |
| Class V | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $55.44 | (2.48%) | 0.97%(c),(d) | 0.97%(c),(d),(e) | 0.07%(c) | 24% | $290,276 |
| Year Ended 7/31/2021 | $61.93 | 39.26% | 0.99%(d) | 0.99%(d),(e) | (0.21%) | 52% | $309,330 |
| Year Ended 7/31/2020 | $50.37 | 27.49% | 1.02% | 1.02%(e) | (0.03%) | 46% | $241,606 |
| Year Ended 7/31/2019 | $43.01 | 7.84% | 1.04% | 1.04% | (0.11%) | 35% | $205,528 |
| Year Ended 7/31/2018 | $43.47 | 17.25% | 1.05% | 1.05%(e) | (0.13%) | 32% | $208,329 |
| Year Ended 7/31/2017 | $39.48 | 19.59% | 1.09% | 1.09%(e) | 0.16% | 29% | $194,803 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 17 |
Notes to Financial Statements
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 1. Organization
Columbia Large Cap Growth Fund
(the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class,
Institutional 3 Class and Class R shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also
described in the Fund’s prospectus. Class E shares are trust shares which are held in an irrevocable trust until the specified trust termination date and are closed to new investors and new accounts. Class V
shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Equity securities listed on an
exchange are valued at the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on
any exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are
valued based on the closing price or last trade price on their primary exchange at the close of business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available,
the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are determined at the scheduled closing time of the New York Stock Exchange.
Many securities markets and exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for securities in such markets or on such exchanges may not fully reflect
events that occur after such close but before the close 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
| 18 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
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.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
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 and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically
allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 19 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
counterparty that governs over-the-counter
derivatives and foreign exchange forward contracts and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement,
the Fund may, under certain circumstances, offset with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The
provisions of the ISDA Master Agreement typically permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or 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.
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 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 risks that it may not achieve
the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or
option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss
when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
| 20 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at January 31, 2022:
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Equity risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 1,403,156* |
| * | 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 January 31, 2022:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Equity risk | 4,459,527 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Equity risk | (2,500,660) |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended January 31, 2022:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — long | 62,467,763 |
| * | Based on the ending quarterly outstanding amounts for the six months ended January 31, 2022. |
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend
income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of an ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions
from holdings in equity securities, business development companies (BDCs), exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate investment trusts
(REITs), which report information as to the tax character of their distributions annually. These distributions are allocated to dividend income, capital gain and return of capital based on actual information reported.
Return of capital is recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of capital is recorded as a realized gain. With respect to REITs, to the
extent actual information has not yet been reported,
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 21 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
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.
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 Large Cap Growth Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.77% to 0.57% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2022 was 0.64% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
For the six months ended January
31, 2022, 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 | 0.07 |
| Advisor Class | 0.07 |
| Class C | 0.07 |
| Class E | 0.25 |
| Institutional Class | 0.07 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class R | 0.07 |
| Class V | 0.07 |
The Fund and certain other
associated investment companies have severally, but not jointly, guaranteed the performance and observance of all the terms and conditions of a lease entered into by Seligman Data Corp. (SDC), the former transfer
agent, including the payment of rent by SDC (the Guaranty).
The lease and the Guaranty expired
on January 31, 2019 and the formal dissolution of SDC is being undertaken. SDC is owned by six associated investment companies, including the Fund. The Fund’s ownership interest in SDC at January 31, 2022 is
recorded as a part of other assets in the Statement of Assets and Liabilities at a cost of $43,170, which approximates the fair value of the ownership interest.
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended January 31, 2022, these minimum account balance fees reduced total
expenses of the Fund by $9,062.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A, Class C and Class E shares of the Fund. Also under the Plans, the Fund
pays a monthly distribution fee to the Distributor at the maximum annual rates of 0.10%, 0.75%, 0.10% and 0.50% of the average daily net assets attributable to Class A, Class C, Class E and Class R
shares of the Fund, respectively.
Although the Fund may pay
distribution and service fees up to a maximum annual rate of 0.35% of the Fund’s average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for
shareholder services), the Fund currently limits such fees to an aggregate fee of not more than 0.25% of the Fund’s average daily net assets attributable to Class A shares.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.50%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.25% for shareholder services and up to 0.25% for administrative support services). These fees are currently limited to
an aggregate annual rate of not more than 0.25% of the Fund’s average daily net assets attributable to Class V shares.
| 24 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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 January 31, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 5.75 | 0.50 - 1.00(a) | 493,096 |
| Class C | — | 1.00(b) | 2,429 |
| Class E | 4.50 | 1.00(b) | 112 |
| Class V | 5.75 | 0.50 - 1.00(a) | 3,426 |
| (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 classes’ average daily net assets:
| December 1, 2021 through November 30, 2022 | Prior to December 1, 2021 | |
| Class A | 1.10% | 1.10% |
| Advisor Class | 0.85 | 0.85 |
| Class C | 1.85 | 1.85 |
| Class E | 1.36 | 1.40 |
| Institutional Class | 0.85 | 0.85 |
| Institutional 2 Class | 0.83 | 0.83 |
| Institutional 3 Class | 0.79 | 0.78 |
| Class R | 1.35 | 1.35 |
| Class V | 1.10 | 1.10 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are
not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022, 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 ($) |
| 2,673,526,000 | 2,771,305,000 | (99,516,000) | 2,671,789,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $1,355,293,932 and $1,578,359,289, respectively, for the six months ended January 31, 2022. 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 January 31, 2022.
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, 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 $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate
equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% 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
| 26 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
commitment fee equal to its pro rata share of the
unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or
renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank,
N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during
the six months ended January 31, 2022.
Note 9. Significant
risks
Information technology sector
risk
The Fund is 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 sector are subject
to certain risks, including the risk that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected by
factors including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including aggressive pricing of their products or services, new market entrants, competition for
market share and short product cycles due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or falling profit margins. As a result, the value of their
securities may fall or fail to rise. In addition, many information technology sector companies have limited operating histories and prices of these companies’ securities historically have been more volatile than
other securities, especially over the short term. Some companies in the information technology sector are facing increased government and regulatory scrutiny and may be subject to adverse government or regulatory
action, which could negatively impact the value of their securities.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, 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 large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and
duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international
sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have a severe
adverse impact on regional and/or global securities and commodities markets, including markets for oil and natural gas. These and other related events could have a negative impact on Fund performance and the value of
an investment in the Fund.
The pandemic caused by coronavirus
disease 2019 and its variants (COVID-19) 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
| Columbia Large Cap Growth Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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 its
investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Shareholder concentration risk
At January 31, 2022, affiliated
shareholders of record owned 44.6% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the
Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of
less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 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 or one or more of its affiliates that provides services to
the Fund.
| 28 | Columbia Large Cap Growth Fund | Semiannual Report 2022 |
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.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR174_07_M01_(03/22)
Columbia Oregon
Intermediate Municipal Bond Fund
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Oregon Intermediate Municipal Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive
shareholder reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Oregon Intermediate Municipal Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks a high level of income exempt from federal and Oregon income tax by investing at least 80% of its net assets (plus any borrowings for investment purposes) in municipal securities issued by the State of Oregon
(and its political subdivisions, agencies, authorities and instrumentalities).
Portfolio management
Paul Fuchs, CFA
Lead Portfolio Manager
Managed Fund since 2016
Anders Myhran, CFA
Portfolio Manager
Managed Fund since 2019
Deborah Vargo
Portfolio Manager
Managed Fund since 2017
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at January 31, 2022) | |
| AAA rating | 5.4 |
| AA rating | 66.4 |
| A rating | 20.3 |
| BBB rating | 1.9 |
| BB rating | 0.9 |
| Not rated | 5.1 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. If a security is
not rated but has a rating by Kroll and/or DBRS, the same methodology is applied to those bonds that would otherwise be not rated. When a bond is not rated by any rating agency, it is designated as “Not
rated.” Credit quality ratings assigned by a rating agency are subjective opinions, not statements of fact, and are subject to change, including daily. The ratings assigned by credit rating agencies are but one
of the considerations that the Investment Manager and/or Fund’s subadviser incorporates into its credit analysis process, along with such other issuer-specific factors as cash flows, capital structure and
leverage ratios, ability to de-leverage (repay) through free cash flow, quality of management, market positioning and access to capital, as well as such security-specific factors as the terms of the security (e.g.,
interest rate and time to maturity) and the amount and type of any collateral.
| 4 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| August 1, 2021 — January 31, 2022 | |||||||
| Account value at the beginning of the period ($) | Account value at the end of the period ($) | Expenses paid during the period ($) | Fund’s annualized expense ratio (%) | ||||
| Actual | Hypothetical | Actual | Hypothetical | Actual | Hypothetical | Actual | |
| Class A | 1,000.00 | 1,000.00 | 972.20 | 1,021.24 | 4.05 | 4.15 | 0.81 |
| Advisor Class | 1,000.00 | 1,000.00 | 973.50 | 1,022.50 | 2.80 | 2.87 | 0.56 |
| Class C | 1,000.00 | 1,000.00 | 970.00 | 1,018.96 | 6.29 | 6.45 | 1.26 |
| Institutional Class | 1,000.00 | 1,000.00 | 973.50 | 1,022.50 | 2.80 | 2.87 | 0.56 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 973.60 | 1,022.66 | 2.65 | 2.72 | 0.53 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 973.10 | 1,022.91 | 2.40 | 2.46 | 0.48 |
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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
January 31, 2022 (Unaudited)
January 31, 2022 (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 Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Notes to Portfolio of
Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of January 31, 2022. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At January 31, 2022, the total value of these securities amounted to $2,954,536, which represents 0.83% of total net assets. |
| (e) | Represents a security purchased on a when-issued basis. |
| (f) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of January 31, 2022. |
| (g) | Zero coupon bond. |
| (h) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At January 31, 2022, the total value of these securities amounted to $6,693,948, which represents 1.88% of total net assets. |
| (i) | The rate shown is the seven-day current annualized yield at January 31, 2022. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| HUD | Department of Housing and Urban Development |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at January 31, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Floating Rate Notes | — | 2,600,000 | — | 2,600,000 |
| Municipal Bonds | — | 350,158,364 | — | 350,158,364 |
| Money Market Funds | 569,139 | — | — | 569,139 |
| Total Investments in Securities | 569,139 | 352,758,364 | — | 353,327,503 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $342,918,155) | $353,327,503 |
| Cash | 2,792 |
| Receivable for: | |
| Capital shares sold | 565,645 |
| Interest | 2,970,400 |
| Expense reimbursement due from Investment Manager | 760 |
| Prepaid expenses | 4,548 |
| Trustees’ deferred compensation plan | 133,751 |
| Other assets | 102 |
| Total assets | 357,005,501 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 708,755 |
| Capital shares purchased | 172,577 |
| Distributions to shareholders | 610,596 |
| Management services fees | 13,677 |
| Distribution and/or service fees | 1,139 |
| Transfer agent fees | 24,485 |
| Compensation of board members | 10,326 |
| Compensation of chief compliance officer | 12 |
| Other expenses | 15,346 |
| Trustees’ deferred compensation plan | 133,751 |
| Total liabilities | 1,690,664 |
| Net assets applicable to outstanding capital stock | $355,314,837 |
| Represented by | |
| Paid in capital | 344,574,820 |
| Total distributable earnings (loss) | 10,740,017 |
| Total - representing net assets applicable to outstanding capital stock | $355,314,837 |
| Class A | |
| Net assets | $43,757,847 |
| Shares outstanding | 3,575,514 |
| Net asset value per share | $12.24 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $12.62 |
| Advisor Class | |
| Net assets | $2,870,971 |
| Shares outstanding | 234,529 |
| Net asset value per share | $12.24 |
| Class C | |
| Net assets | $4,194,224 |
| Shares outstanding | 342,714 |
| Net asset value per share | $12.24 |
| Institutional Class | |
| Net assets | $259,146,848 |
| Shares outstanding | 21,175,444 |
| Net asset value per share | $12.24 |
| Institutional 2 Class | |
| Net assets | $32,653,169 |
| Shares outstanding | 2,672,505 |
| Net asset value per share | $12.22 |
| Institutional 3 Class | |
| Net assets | $12,691,778 |
| Shares outstanding | 1,035,757 |
| Net asset value per share | $12.25 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 15 |
Statement of Operations
Six Months Ended January 31, 2022 (Unaudited)
Six Months Ended January 31, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $638 |
| Interest | 4,680,133 |
| Total income | 4,680,771 |
| Expenses: | |
| Management services fees | 864,161 |
| Distribution and/or service fees | |
| Class A | 56,366 |
| Class C | 20,843 |
| Transfer agent fees | |
| Class A | 20,335 |
| Advisor Class | 1,599 |
| Class C | 2,077 |
| Institutional Class | 121,369 |
| Institutional 2 Class | 9,328 |
| Institutional 3 Class | 372 |
| Compensation of board members | 10,821 |
| Custodian fees | 1,174 |
| Printing and postage fees | 6,488 |
| Registration fees | 7,098 |
| Audit fees | 14,993 |
| Legal fees | 6,991 |
| Compensation of chief compliance officer | 47 |
| Other | 6,465 |
| Total expenses | 1,150,527 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (51,188) |
| Fees waived by distributor | |
| Class C | (4,698) |
| Expense reduction | (380) |
| Total net expenses | 1,094,261 |
| Net investment income | 3,586,510 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (5,710) |
| Net realized loss | (5,710) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (13,358,204) |
| Net change in unrealized appreciation (depreciation) | (13,358,204) |
| Net realized and unrealized loss | (13,363,914) |
| Net decrease in net assets resulting from operations | $(9,777,404) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended January 31, 2022 (Unaudited) | Year Ended July 31, 2021 | |
| Operations | ||
| Net investment income | $3,586,510 | $7,210,942 |
| Net realized gain (loss) | (5,710) | 25,280 |
| Net change in unrealized appreciation (depreciation) | (13,358,204) | (1,567,752) |
| Net increase (decrease) in net assets resulting from operations | (9,777,404) | 5,668,470 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (387,466) | (925,372) |
| Advisor Class | (34,828) | (62,877) |
| Class C | (29,209) | (93,304) |
| Institutional Class | (2,646,719) | (6,162,182) |
| Institutional 2 Class | (336,996) | (723,876) |
| Institutional 3 Class | (132,327) | (213,859) |
| Total distributions to shareholders | (3,567,545) | (8,181,470) |
| Increase in net assets from capital stock activity | 6,036,785 | 11,747,514 |
| Total increase (decrease) in net assets | (7,308,164) | 9,234,514 |
| Net assets at beginning of period | 362,623,001 | 353,388,487 |
| Net assets at end of period | $355,314,837 | $362,623,001 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 17 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| January 31, 2022 (Unaudited) | July 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 360,865 | 4,529,042 | 715,810 | 9,089,451 |
| Distributions reinvested | 29,546 | 369,548 | 70,270 | 890,456 |
| Redemptions | (327,421) | (4,110,639) | (859,891) | (10,921,882) |
| Net increase (decrease) | 62,990 | 787,951 | (73,811) | (941,975) |
| Advisor Class | ||||
| Subscriptions | 44,287 | 557,327 | 71,018 | 900,785 |
| Distributions reinvested | 2,785 | 34,828 | 4,962 | 62,877 |
| Redemptions | (67,473) | (832,268) | (9,880) | (124,988) |
| Net increase (decrease) | (20,401) | (240,113) | 66,100 | 838,674 |
| Class C | ||||
| Subscriptions | 22,938 | 288,543 | 44,033 | 557,658 |
| Distributions reinvested | 2,285 | 28,580 | 7,229 | 91,633 |
| Redemptions | (66,204) | (830,686) | (194,527) | (2,471,232) |
| Net decrease | (40,981) | (513,563) | (143,265) | (1,821,941) |
| Institutional Class | ||||
| Subscriptions | 1,153,182 | 14,482,760 | 1,580,881 | 20,062,241 |
| Distributions reinvested | 162,488 | 2,032,311 | 375,671 | 4,760,339 |
| Redemptions | (1,110,292) | (13,935,786) | (1,874,015) | (23,759,540) |
| Net increase | 205,378 | 2,579,285 | 82,537 | 1,063,040 |
| Institutional 2 Class | ||||
| Subscriptions | 291,165 | 3,647,914 | 1,164,410 | 14,768,697 |
| Distributions reinvested | 26,988 | 336,996 | 57,227 | 723,871 |
| Redemptions | (277,367) | (3,479,665) | (413,551) | (5,232,171) |
| Net increase | 40,786 | 505,245 | 808,086 | 10,260,397 |
| Institutional 3 Class | ||||
| Subscriptions | 313,335 | 3,960,180 | 228,471 | 2,901,112 |
| Distributions reinvested | 5,847 | 73,217 | 10,744 | 136,339 |
| Redemptions | (88,836) | (1,115,417) | (54,214) | (688,132) |
| Net increase | 230,346 | 2,917,980 | 185,001 | 2,349,319 |
| Total net increase | 478,118 | 6,036,785 | 924,648 | 11,747,514 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
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| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 19 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.70 | 0.11 | (0.46) | (0.35) | (0.11) | — | (0.11) |
| Year Ended 7/31/2021 | $12.79 | 0.23 | (0.06) | 0.17 | (0.23) | (0.03) | (0.26) |
| Year Ended 7/31/2020 | $12.52 | 0.27 | 0.29 | 0.56 | (0.27) | (0.02) | (0.29) |
| Year Ended 7/31/2019 | $12.14 | 0.30 | 0.41 | 0.71 | (0.31) | (0.02) | (0.33) |
| Year Ended 7/31/2018 | $12.45 | 0.31 | (0.31) | 0.00(e) | (0.31) | — | (0.31) |
| Year Ended 7/31/2017 | $12.82 | 0.32 | (0.37) | (0.05) | (0.32) | — | (0.32) |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.70 | 0.13 | (0.46) | (0.33) | (0.13) | — | (0.13) |
| Year Ended 7/31/2021 | $12.79 | 0.26 | (0.05) | 0.21 | (0.27) | (0.03) | (0.30) |
| Year Ended 7/31/2020 | $12.52 | 0.30 | 0.29 | 0.59 | (0.30) | (0.02) | (0.32) |
| Year Ended 7/31/2019 | $12.14 | 0.33 | 0.41 | 0.74 | (0.34) | (0.02) | (0.36) |
| Year Ended 7/31/2018 | $12.45 | 0.34 | (0.31) | 0.03 | (0.34) | — | (0.34) |
| Year Ended 7/31/2017 | $12.82 | 0.35 | (0.37) | (0.02) | (0.35) | — | (0.35) |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.70 | 0.08 | (0.46) | (0.38) | (0.08) | — | (0.08) |
| Year Ended 7/31/2021 | $12.79 | 0.17 | (0.05) | 0.12 | (0.18) | (0.03) | (0.21) |
| Year Ended 7/31/2020 | $12.52 | 0.22 | 0.28 | 0.50 | (0.21) | (0.02) | (0.23) |
| Year Ended 7/31/2019 | $12.14 | 0.25 | 0.40 | 0.65 | (0.25) | (0.02) | (0.27) |
| Year Ended 7/31/2018 | $12.45 | 0.25 | (0.31) | (0.06) | (0.25) | — | (0.25) |
| Year Ended 7/31/2017 | $12.83 | 0.26 | (0.38) | (0.12) | (0.26) | — | (0.26) |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.70 | 0.13 | (0.46) | (0.33) | (0.13) | — | (0.13) |
| Year Ended 7/31/2021 | $12.79 | 0.26 | (0.05) | 0.21 | (0.27) | (0.03) | (0.30) |
| Year Ended 7/31/2020 | $12.52 | 0.30 | 0.29 | 0.59 | (0.30) | (0.02) | (0.32) |
| Year Ended 7/31/2019 | $12.14 | 0.33 | 0.41 | 0.74 | (0.34) | (0.02) | (0.36) |
| Year Ended 7/31/2018 | $12.45 | 0.34 | (0.31) | 0.03 | (0.34) | — | (0.34) |
| Year Ended 7/31/2017 | $12.82 | 0.35 | (0.37) | (0.02) | (0.35) | — | (0.35) |
| Institutional 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.68 | 0.13 | (0.46) | (0.33) | (0.13) | — | (0.13) |
| Year Ended 7/31/2021 | $12.77 | 0.26 | (0.05) | 0.21 | (0.27) | (0.03) | (0.30) |
| Year Ended 7/31/2020 | $12.51 | 0.31 | 0.27 | 0.58 | (0.30) | (0.02) | (0.32) |
| Year Ended 7/31/2019 | $12.12 | 0.34 | 0.41 | 0.75 | (0.34) | (0.02) | (0.36) |
| Year Ended 7/31/2018 | $12.43 | 0.34 | (0.31) | 0.03 | (0.34) | — | (0.34) |
| Year Ended 7/31/2017 | $12.81 | 0.35 | (0.38) | (0.03) | (0.35) | — | (0.35) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.24 | (2.78%) | 0.84%(c) | 0.81%(c),(d) | 1.73%(c) | 1% | $43,758 |
| Year Ended 7/31/2021 | $12.70 | 1.38% | 0.84% | 0.81%(d) | 1.81% | 5% | $44,606 |
| Year Ended 7/31/2020 | $12.79 | 4.52% | 0.84% | 0.81%(d) | 2.16% | 9% | $45,868 |
| Year Ended 7/31/2019 | $12.52 | 5.94% | 0.84% | 0.83% | 2.49% | 8% | $44,185 |
| Year Ended 7/31/2018 | $12.14 | 0.01% | 0.84% | 0.84%(d) | 2.53% | 10% | $39,896 |
| Year Ended 7/31/2017 | $12.45 | (0.39%) | 0.83%(f) | 0.83%(d),(f) | 2.53% | 15% | $43,387 |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.24 | (2.65%) | 0.59%(c) | 0.56%(c),(d) | 1.98%(c) | 1% | $2,871 |
| Year Ended 7/31/2021 | $12.70 | 1.63% | 0.59% | 0.56%(d) | 2.06% | 5% | $3,238 |
| Year Ended 7/31/2020 | $12.79 | 4.78% | 0.59% | 0.56%(d) | 2.40% | 9% | $2,415 |
| Year Ended 7/31/2019 | $12.52 | 6.21% | 0.59% | 0.57% | 2.73% | 8% | $1,919 |
| Year Ended 7/31/2018 | $12.14 | 0.25% | 0.59% | 0.59%(d) | 2.78% | 10% | $660 |
| Year Ended 7/31/2017 | $12.45 | (0.14%) | 0.59%(f) | 0.59%(d),(f) | 2.80% | 15% | $664 |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.24 | (3.00%) | 1.49%(c) | 1.26%(c),(d) | 1.27%(c) | 1% | $4,194 |
| Year Ended 7/31/2021 | $12.70 | 0.92% | 1.59% | 1.26%(d),(g) | 1.36% | 5% | $4,873 |
| Year Ended 7/31/2020 | $12.79 | 4.05% | 1.59% | 1.26%(d),(g) | 1.72% | 9% | $6,740 |
| Year Ended 7/31/2019 | $12.52 | 5.46% | 1.59% | 1.28%(g) | 2.05% | 8% | $8,434 |
| Year Ended 7/31/2018 | $12.14 | (0.44%) | 1.59% | 1.29%(d) | 2.07% | 10% | $14,530 |
| Year Ended 7/31/2017 | $12.45 | (0.91%) | 1.58%(f) | 1.28%(d),(f) | 2.09% | 15% | $24,330 |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.24 | (2.65%) | 0.59%(c) | 0.56%(c),(d) | 1.98%(c) | 1% | $259,147 |
| Year Ended 7/31/2021 | $12.70 | 1.63% | 0.59% | 0.56%(d) | 2.06% | 5% | $266,298 |
| Year Ended 7/31/2020 | $12.79 | 4.78% | 0.59% | 0.56%(d) | 2.41% | 9% | $267,135 |
| Year Ended 7/31/2019 | $12.52 | 6.20% | 0.59% | 0.58% | 2.74% | 8% | $270,831 |
| Year Ended 7/31/2018 | $12.14 | 0.25% | 0.59% | 0.59%(d) | 2.77% | 10% | $293,485 |
| Year Ended 7/31/2017 | $12.45 | (0.14%) | 0.58%(f) | 0.58%(d),(f) | 2.79% | 15% | $333,321 |
| Institutional 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.22 | (2.64%) | 0.55%(c) | 0.53%(c) | 2.01%(c) | 1% | $32,653 |
| Year Ended 7/31/2021 | $12.68 | 1.67% | 0.56% | 0.53% | 2.10% | 5% | $33,366 |
| Year Ended 7/31/2020 | $12.77 | 4.73% | 0.56% | 0.53% | 2.45% | 9% | $23,286 |
| Year Ended 7/31/2019 | $12.51 | 6.33% | 0.56% | 0.54% | 2.77% | 8% | $25,397 |
| Year Ended 7/31/2018 | $12.12 | 0.28% | 0.56% | 0.56% | 2.80% | 10% | $31,451 |
| Year Ended 7/31/2017 | $12.43 | (0.18%) | 0.55%(f) | 0.55%(f) | 2.85% | 15% | $42,681 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 21 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.72 | 0.13 | (0.47) | (0.34) | (0.13) | — | (0.13) |
| Year Ended 7/31/2021 | $12.81 | 0.27 | (0.05) | 0.22 | (0.28) | (0.03) | (0.31) |
| Year Ended 7/31/2020 | $12.54 | 0.31 | 0.29 | 0.60 | (0.31) | (0.02) | (0.33) |
| Year Ended 7/31/2019 | $12.15 | 0.34 | 0.42 | 0.76 | (0.35) | (0.02) | (0.37) |
| Year Ended 7/31/2018 | $12.47 | 0.35 | (0.32) | 0.03 | (0.35) | — | (0.35) |
| Year Ended 7/31/2017(h) | $12.30 | 0.15 | 0.17(i) | 0.32 | (0.15) | — | (0.15) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Rounds to zero. |
| (f) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Institutional 2 Class |
| 07/31/2017 | 0.02% | 0.01% | 0.02% | 0.02% | 0.01% |
| (g) | Ratios include the impact of voluntary waivers paid by the Investment Manager. For the periods indicated below, if the Investment Manager had not paid these voluntary waivers, the Fund’s net expense ratio would increase by: |
| Class | 7/31/2021 | 7/31/2020 | 7/31/2019 |
| Class C | 0.06% | 0.30% | 0.30% |
| (h) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (i) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 22 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $12.25 | (2.69%) | 0.50%(c) | 0.48%(c) | 2.06%(c) | 1% | $12,692 |
| Year Ended 7/31/2021 | $12.72 | 1.72% | 0.51% | 0.48% | 2.14% | 5% | $10,242 |
| Year Ended 7/31/2020 | $12.81 | 4.86% | 0.51% | 0.48% | 2.49% | 9% | $7,945 |
| Year Ended 7/31/2019 | $12.54 | 6.37% | 0.51% | 0.49% | 2.82% | 8% | $6,909 |
| Year Ended 7/31/2018 | $12.15 | 0.26% | 0.51% | 0.51% | 2.90% | 10% | $3,871 |
| Year Ended 7/31/2017(h) | $12.47 | 2.59% | 0.53%(c) | 0.53%(c) | 2.84%(c) | 15% | $10 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 1. Organization
Columbia Oregon Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the
Fund’s prospectus.
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.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published
price for the security, if available.
The determination of fair value
often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used
to determine fair value.
| 24 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
GAAP requires disclosure regarding
the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following
the Fund’s Portfolio of Investments.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2022 was 0.47% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transactions with affiliates
The Fund is permitted to engage in
purchase and/or sale transactions with affiliates and/or accounts that have a common investment manager (or affiliated investment managers), common directors/trustees, and/or common officers under specified conditions
outlined in a policy adopted by the Board, pursuant to Rule 17a-7 under the 1940 Act (cross-trades). The Board relies on quarterly written representation from the Fund’s Chief Compliance Officer that
cross-trades complied with approved policy.
For the six months ended January
31, 2022, the Fund engaged in cross-trades as follows:
| Purchases ($) | Sales ($) | Net realized gain (loss) ($) |
| 3,044,730 | — | — |
| 26 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended January
31, 2022, 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 | 0.09 |
| Advisor Class | 0.09 |
| Class C | 0.09 |
| Institutional Class | 0.09 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended January 31, 2022, these minimum account balance fees reduced total
expenses of the Fund by $380.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a
monthly distribution fee to the Distributor at the maximum annual rates of 0.10% and 0.75% of the average daily net assets attributable to Class A and Class C shares of the Fund, respectively.
Although the Fund may pay
distribution and service fees up to a maximum annual rate of 0.35% of the Fund’s average daily net assets attributable to Class A shares (comprised of up to 0.10% for distribution services and up to 0.25% for
shareholder services), the Fund currently limits such fees to an aggregate fee of not more than 0.25% of the Fund’s average daily net assets attributable to Class A shares.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Effective December 1, 2021, the
Distributor has reduced the distribution fee for Class C shares to 0.45% annually of the average daily net assets attributable to Class C shares. Prior to December 1, 2021, the Distributor contractually waived a
portion of the distribution fee for Class C shares so that the distribution fee did not exceed 0.45% annually of the average daily net assets attributable to Class C shares. This arrangement could have
been modified or terminated at the sole discretion of the Board of Trustees.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended January 31, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 17,672 |
| Class C | — | 1.00(b) | — |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| December 1, 2021 through November 30, 2022 | Prior to December 1, 2021 | |
| Class A | 0.81% | 0.81% |
| Advisor Class | 0.56 | 0.56 |
| Class C | 1.26 | 1.56 |
| Institutional Class | 0.56 | 0.56 |
| Institutional 2 Class | 0.53 | 0.53 |
| Institutional 3 Class | 0.48 | 0.48 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Prior to December 1, 2021, Class C distribution fees waived by the Distributor, as discussed above, were in
addition to the waiver/reimbursement commitment under the agreement. 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.
| 28 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022, 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 ($) |
| 342,918,000 | 12,670,000 | (2,260,000) | 10,410,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $25,790,002 and $4,880,000, respectively, for the six months ended January 31, 2022. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended January 31, 2022.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, 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 $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate
equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit
facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The
commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had
access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was
charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight
bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during
the six months ended January 31, 2022.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise.
Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates
may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a
debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, 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 large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and
duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international
sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have a severe
adverse impact on regional and/or global securities and commodities markets, including markets for oil and natural gas. These and other related events could have a negative impact on Fund performance and the value of
an investment in the Fund.
| 30 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The pandemic caused by coronavirus
disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource
availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce
displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by
governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks,
epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks
and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate
other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner
and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt
obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of
the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The
value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing
authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such
as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors
such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory,
commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as
economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers
which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be
negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is
directly correlated to the Fund’s investment exposures.
Because the Fund invests
substantially in municipal securities issued by the state identified in the Fund’s name and political sub-divisions of that state, the Fund will be particularly affected by adverse tax, legislative, regulatory,
demographic or political changes as well as changes impacting the state’s financial, economic or other condition and prospects. In addition, because of the relatively small number of issuers of tax-exempt
securities in the state, the Fund may invest a higher percentage of assets in a single issuer and, therefore, be more exposed to the risk of loss than a fund that invests more broadly. The value of municipal and other
securities owned by the Fund also may be adversely affected by future changes in federal or state income tax laws.
Shareholder concentration risk
At January 31, 2022, one
unaffiliated shareholder of record owned 14.7% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription
and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times,
including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating
expenses for non-redeeming Fund shareholders.
| Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 | 31 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to
the Fund.
| 32 | Columbia Oregon Intermediate Municipal Bond Fund | Semiannual Report 2022 |
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.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR207_07_M01_(03/22)
Columbia Tax-Exempt
Fund
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Tax-Exempt Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder reports from
the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Tax-Exempt Fund | Semiannual
Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, consisting of current income exempt from federal income tax and of capital appreciation, consistent with moderate fluctuation of principal.
Portfolio management
Catherine Stienstra
Co-Portfolio Manager
Managed Fund since 2018
Douglas J. White, CFA
Co-Portfolio Manager
Managed Fund since February 2022
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| August 1, 2021 — January 31, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 968.50 | 1,021.69 | 3.59 | 3.69 | 0.72 |
| Advisor Class | 1,000.00 | 1,000.00 | 969.50 | 1,022.71 | 2.60 | 2.67 | 0.52 |
| Class C | 1,000.00 | 1,000.00 | 965.50 | 1,018.65 | 6.58 | 6.75 | 1.32 |
| Institutional Class | 1,000.00 | 1,000.00 | 969.50 | 1,022.71 | 2.60 | 2.67 | 0.52 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 969.60 | 1,022.81 | 2.50 | 2.56 | 0.50 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 969.20 | 1,023.01 | 2.30 | 2.36 | 0.46 |
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 Tax-Exempt Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
January 31, 2022 (Unaudited)
January 31, 2022 (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 Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 15 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 17 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 19 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 21 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 22 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 23 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 24 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 25 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 26 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 27 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022,
securities and/or cash totaling $1,527,000 were pledged as collateral.
Investments in
derivatives
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 10-Year Note | (1,018) | 03/2022 | USD | (130,272,188) | — | (329,942) |
Notes to Portfolio of
Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of January 31, 2022. |
| (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 January 31, 2022, the total value of these securities amounted to $99,883,262, which represents 3.24% of total net assets. |
| (d) | Represents a security purchased on a when-issued basis. |
| (e) | Income from this security may be subject to alternative minimum tax. |
| (f) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At January 31, 2022, the total value of these securities amounted to $67,302,077, which represents 2.18% of total net assets. |
| (g) | Zero coupon bond. |
| (h) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At January 31, 2022, the total value of these securities amounted to $54,931,975, which represents 1.78% of total net assets. |
| (i) | The rate shown is the seven-day current annualized yield at January 31, 2022. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 28 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Notes to Portfolio of Investments (continued)
| (j) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended January 31, 2022 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Multi-Sector Municipal Income ETF | ||||||||
| 6,252,495 | — | (5,972,532) | (279,963) | — | 164,937 | 21,878 | — | |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| FHA | Federal Housing Authority |
| FNMA | Federal National Mortgage Association |
| GNMA | Government National Mortgage Association |
| HUD | Department of Housing and Urban Development |
| NPFGC | National Public Finance Guarantee Corporation |
Currency Legend
| 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.
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
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 29 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Fair value measurements (continued)
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.
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 January 31, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Floating Rate Notes | — | 5,825,000 | — | 5,825,000 |
| Municipal Bonds | — | 3,027,786,560 | — | 3,027,786,560 |
| Money Market Funds | 31,027,196 | — | — | 31,027,196 |
| Total Investments in Securities | 31,027,196 | 3,033,611,560 | — | 3,064,638,756 |
| Investments in Derivatives | ||||
| Liability | ||||
| Futures Contracts | (329,942) | — | — | (329,942) |
| Total | 30,697,254 | 3,033,611,560 | — | 3,064,308,814 |
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.
| 30 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $2,977,454,810) | $3,064,638,756 |
| Cash | 14,005 |
| Margin deposits on: | |
| Futures contracts | 1,527,000 |
| Receivable for: | |
| Investments sold | 17,229,727 |
| Capital shares sold | 6,959,968 |
| Interest | 27,255,291 |
| Prepaid expenses | 30,672 |
| Trustees’ deferred compensation plan | 742,406 |
| Other assets | 16,498 |
| Total assets | 3,118,414,323 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 18,891,053 |
| Capital shares purchased | 4,648,986 |
| Distributions to shareholders | 7,039,277 |
| Variation margin for futures contracts | 15,906 |
| Management services fees | 113,137 |
| Distribution and/or service fees | 41,428 |
| Transfer agent fees | 162,165 |
| Compensation of board members | 73,077 |
| Compensation of chief compliance officer | 113 |
| Other expenses | 39,955 |
| Trustees’ deferred compensation plan | 742,406 |
| Total liabilities | 31,767,503 |
| Net assets applicable to outstanding capital stock | $3,086,646,820 |
| Represented by | |
| Paid in capital | 3,005,824,324 |
| Total distributable earnings (loss) | 80,822,496 |
| Total - representing net assets applicable to outstanding capital stock | $3,086,646,820 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 31 |
Statement of Assets and Liabilities (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Class A | |
| Net assets | $2,362,779,045 |
| Shares outstanding | 179,587,861 |
| Net asset value per share | $13.16 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $13.57 |
| Advisor Class | |
| Net assets | $28,369,347 |
| Shares outstanding | 2,156,741 |
| Net asset value per share | $13.15 |
| Class C | |
| Net assets | $39,214,481 |
| Shares outstanding | 2,981,406 |
| Net asset value per share | $13.15 |
| Institutional Class | |
| Net assets | $609,805,992 |
| Shares outstanding | 46,343,832 |
| Net asset value per share | $13.16 |
| Institutional 2 Class | |
| Net assets | $19,779,912 |
| Shares outstanding | 1,502,952 |
| Net asset value per share | $13.16 |
| Institutional 3 Class | |
| Net assets | $26,698,043 |
| Shares outstanding | 2,023,352 |
| Net asset value per share | $13.19 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 32 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Statement of Operations
Six Months Ended January 31, 2022 (Unaudited)
Six Months Ended January 31, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $1,397 |
| Dividends — affiliated issuers | 21,878 |
| Interest | 54,565,906 |
| Total income | 54,589,181 |
| Expenses: | |
| Management services fees | 7,238,100 |
| Distribution and/or service fees | |
| Class A | 2,505,121 |
| Class C | 191,564 |
| Transfer agent fees | |
| Class A | 811,828 |
| Advisor Class | 9,746 |
| Class C | 13,779 |
| Institutional Class | 207,505 |
| Institutional 2 Class | 5,054 |
| Institutional 3 Class | 814 |
| Compensation of board members | 30,794 |
| Custodian fees | 12,596 |
| Printing and postage fees | 40,903 |
| Registration fees | 67,804 |
| Audit fees | 20,076 |
| Legal fees | 20,479 |
| Compensation of chief compliance officer | 424 |
| Other | 24,990 |
| Total expenses | 11,201,577 |
| Fees waived by distributor | |
| Class C | (21,480) |
| Fees waived by transfer agent | |
| Institutional 3 Class | (268) |
| Expense reduction | (2,677) |
| Total net expenses | 11,177,152 |
| Net investment income | 43,412,029 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 4,309,154 |
| Investments — affiliated issuers | 164,937 |
| Futures contracts | 624,817 |
| Net realized gain | 5,098,908 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (148,655,311) |
| Investments — affiliated issuers | (279,963) |
| Futures contracts | (329,942) |
| Net change in unrealized appreciation (depreciation) | (149,265,216) |
| Net realized and unrealized loss | (144,166,308) |
| Net decrease in net assets resulting from operations | $(100,754,279) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 33 |
Statement of Changes in Net Assets
| Six Months Ended January 31, 2022 (Unaudited) | Year Ended July 31, 2021 | |
| Operations | ||
| Net investment income | $43,412,029 | $92,073,978 |
| Net realized gain | 5,098,908 | 15,567,724 |
| Net change in unrealized appreciation (depreciation) | (149,265,216) | 75,480,561 |
| Net increase (decrease) in net assets resulting from operations | (100,754,279) | 183,122,263 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (45,233,480) | (78,218,582) |
| Advisor Class | (573,911) | (938,943) |
| Class C | (639,637) | (1,273,646) |
| Institutional Class | (12,228,023) | (20,255,431) |
| Institutional 2 Class | (398,814) | (1,515,757) |
| Institutional 3 Class | (533,362) | (786,951) |
| Total distributions to shareholders | (59,607,227) | (102,989,310) |
| Decrease in net assets from capital stock activity | (50,570,413) | (100,510,779) |
| Total decrease in net assets | (210,931,919) | (20,377,826) |
| Net assets at beginning of period | 3,297,578,739 | 3,317,956,565 |
| Net assets at end of period | $3,086,646,820 | $3,297,578,739 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 34 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| January 31, 2022 (Unaudited) | July 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 3,521,418 | 47,921,917 | 9,044,414 | 123,055,854 |
| Distributions reinvested | 3,161,767 | 42,847,776 | 5,440,312 | 73,812,867 |
| Redemptions | (10,401,021) | (141,311,972) | (20,093,734) | (272,652,688) |
| Net decrease | (3,717,836) | (50,542,279) | (5,609,008) | (75,783,967) |
| Advisor Class | ||||
| Subscriptions | 224,093 | 3,047,005 | 576,110 | 7,801,333 |
| Distributions reinvested | 37,786 | 511,993 | 59,663 | 809,616 |
| Redemptions | (257,240) | (3,485,745) | (460,211) | (6,256,008) |
| Net increase | 4,639 | 73,253 | 175,562 | 2,354,941 |
| Class C | ||||
| Subscriptions | 200,877 | 2,733,476 | 434,523 | 5,910,689 |
| Distributions reinvested | 45,020 | 610,138 | 88,497 | 1,199,530 |
| Redemptions | (498,866) | (6,797,180) | (1,501,185) | (20,388,504) |
| Net decrease | (252,969) | (3,453,566) | (978,165) | (13,278,285) |
| Institutional Class | ||||
| Subscriptions | 3,199,659 | 43,517,062 | 8,888,085 | 120,971,238 |
| Distributions reinvested | 521,638 | 7,069,057 | 799,638 | 10,855,698 |
| Redemptions | (3,453,988) | (46,874,584) | (9,033,158) | (122,718,730) |
| Net increase | 267,309 | 3,711,535 | 654,565 | 9,108,206 |
| Institutional 2 Class | ||||
| Subscriptions | 205,104 | 2,796,326 | 855,835 | 11,612,819 |
| Distributions reinvested | 29,384 | 398,337 | 111,855 | 1,515,277 |
| Redemptions | (323,454) | (4,417,069) | (3,089,416) | (42,161,772) |
| Net decrease | (88,966) | (1,222,406) | (2,121,726) | (29,033,676) |
| Institutional 3 Class | ||||
| Subscriptions | 291,824 | 3,973,711 | 653,908 | 8,912,650 |
| Distributions reinvested | 37,131 | 504,514 | 54,163 | 737,556 |
| Redemptions | (265,933) | (3,615,175) | (259,378) | (3,528,204) |
| Net increase | 63,022 | 863,050 | 448,693 | 6,122,002 |
| Total net decrease | (3,724,801) | (50,570,413) | (7,430,079) | (100,510,779) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 35 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.84 | 0.18 | (0.61) | (0.43) | (0.18) | (0.07) | (0.25) |
| Year Ended 7/31/2021 | $13.50 | 0.38 | 0.38 | 0.76 | (0.38) | (0.04) | (0.42) |
| Year Ended 7/31/2020 | $13.63 | 0.43 | (0.06) | 0.37 | (0.43) | (0.07) | (0.50) |
| Year Ended 7/31/2019 | $13.35 | 0.50 | 0.34 | 0.84 | (0.55) | (0.01) | (0.56) |
| Year Ended 7/31/2018 | $13.60 | 0.53 | (0.25) | 0.28 | (0.53) | — | (0.53) |
| Year Ended 7/31/2017 | $14.25 | 0.55 | (0.66) | (0.11) | (0.54) | — | (0.54) |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.83 | 0.19 | (0.61) | (0.42) | (0.19) | (0.07) | (0.26) |
| Year Ended 7/31/2021 | $13.50 | 0.40 | 0.38 | 0.78 | (0.41) | (0.04) | (0.45) |
| Year Ended 7/31/2020 | $13.63 | 0.45 | (0.05) | 0.40 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.35 | 0.52 | 0.35 | 0.87 | (0.58) | (0.01) | (0.59) |
| Year Ended 7/31/2018 | $13.60 | 0.56 | (0.25) | 0.31 | (0.56) | — | (0.56) |
| Year Ended 7/31/2017 | $14.25 | 0.57 | (0.65) | (0.08) | (0.57) | — | (0.57) |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.83 | 0.14 | (0.61) | (0.47) | (0.14) | (0.07) | (0.21) |
| Year Ended 7/31/2021 | $13.50 | 0.29 | 0.38 | 0.67 | (0.30) | (0.04) | (0.34) |
| Year Ended 7/31/2020 | $13.63 | 0.34 | (0.06) | 0.28 | (0.34) | (0.07) | (0.41) |
| Year Ended 7/31/2019 | $13.35 | 0.41 | 0.35 | 0.76 | (0.47) | (0.01) | (0.48) |
| Year Ended 7/31/2018 | $13.60 | 0.44 | (0.25) | 0.19 | (0.44) | — | (0.44) |
| Year Ended 7/31/2017 | $14.24 | 0.46 | (0.65) | (0.19) | (0.45) | — | (0.45) |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.84 | 0.19 | (0.61) | (0.42) | (0.19) | (0.07) | (0.26) |
| Year Ended 7/31/2021 | $13.50 | 0.40 | 0.39 | 0.79 | (0.41) | (0.04) | (0.45) |
| Year Ended 7/31/2020 | $13.64 | 0.45 | (0.06) | 0.39 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.35 | 0.52 | 0.36 | 0.88 | (0.58) | (0.01) | (0.59) |
| Year Ended 7/31/2018 | $13.60 | 0.56 | (0.25) | 0.31 | (0.56) | — | (0.56) |
| Year Ended 7/31/2017 | $14.25 | 0.57 | (0.65) | (0.08) | (0.57) | — | (0.57) |
| Institutional 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.84 | 0.20 | (0.62) | (0.42) | (0.19) | (0.07) | (0.26) |
| Year Ended 7/31/2021 | $13.50 | 0.41 | 0.38 | 0.79 | (0.41) | (0.04) | (0.45) |
| Year Ended 7/31/2020 | $13.64 | 0.45 | (0.06) | 0.39 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.35 | 0.52 | 0.36 | 0.88 | (0.58) | (0.01) | (0.59) |
| Year Ended 7/31/2018 | $13.60 | 0.56 | (0.25) | 0.31 | (0.56) | — | (0.56) |
| Year Ended 7/31/2017 | $14.25 | 0.58 | (0.66) | (0.08) | (0.57) | — | (0.57) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 36 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.16 | (3.15%) | 0.72%(c) | 0.72%(c),(d) | 2.62%(c) | 5% | $2,362,779 |
| Year Ended 7/31/2021 | $13.84 | 5.74% | 0.72%(e) | 0.72%(d),(e) | 2.78% | 13% | $2,536,239 |
| Year Ended 7/31/2020 | $13.50 | 2.76% | 0.73%(e) | 0.73%(d),(e) | 3.16% | 29% | $2,550,497 |
| Year Ended 7/31/2019 | $13.63 | 6.51% | 0.73% | 0.73% | 3.74% | 20% | $2,548,777 |
| Year Ended 7/31/2018 | $13.35 | 2.08% | 0.72% | 0.72%(d) | 3.93% | 17% | $2,642,009 |
| Year Ended 7/31/2017 | $13.60 | (0.70%) | 0.72%(e),(f) | 0.72%(d),(e),(f) | 3.98% | 13% | $2,882,268 |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.15 | (3.05%) | 0.52%(c) | 0.52%(c),(d) | 2.82%(c) | 5% | $28,369 |
| Year Ended 7/31/2021 | $13.83 | 5.88% | 0.52%(e) | 0.52%(d),(e) | 2.97% | 13% | $29,770 |
| Year Ended 7/31/2020 | $13.50 | 2.96% | 0.53%(e) | 0.53%(d),(e) | 3.36% | 29% | $26,679 |
| Year Ended 7/31/2019 | $13.63 | 6.72% | 0.53% | 0.53% | 3.93% | 20% | $21,407 |
| Year Ended 7/31/2018 | $13.35 | 2.29% | 0.52% | 0.52%(d) | 4.16% | 17% | $13,745 |
| Year Ended 7/31/2017 | $13.60 | (0.50%) | 0.52%(e),(f) | 0.52%(d),(e),(f) | 4.20% | 13% | $6,997 |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.15 | (3.45%) | 1.42%(c) | 1.32%(c),(d) | 2.02%(c) | 5% | $39,214 |
| Year Ended 7/31/2021 | $13.83 | 5.03% | 1.47%(e) | 1.33%(d),(e),(g) | 2.17% | 13% | $44,740 |
| Year Ended 7/31/2020 | $13.50 | 2.09% | 1.48%(e) | 1.38%(d),(e),(g) | 2.51% | 29% | $56,855 |
| Year Ended 7/31/2019 | $13.63 | 5.82% | 1.48% | 1.38%(g) | 3.09% | 20% | $59,114 |
| Year Ended 7/31/2018 | $13.35 | 1.42% | 1.47% | 1.37%(d) | 3.27% | 17% | $72,134 |
| Year Ended 7/31/2017 | $13.60 | (1.27%) | 1.47%(e),(f) | 1.37%(d),(e),(f) | 3.33% | 13% | $105,081 |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.16 | (3.05%) | 0.52%(c) | 0.52%(c),(d) | 2.82%(c) | 5% | $609,806 |
| Year Ended 7/31/2021 | $13.84 | 5.95% | 0.52%(e) | 0.52%(d),(e) | 2.97% | 13% | $637,596 |
| Year Ended 7/31/2020 | $13.50 | 2.89% | 0.53%(e) | 0.53%(d),(e) | 3.37% | 29% | $613,307 |
| Year Ended 7/31/2019 | $13.64 | 6.80% | 0.53% | 0.53% | 3.94% | 20% | $781,834 |
| Year Ended 7/31/2018 | $13.35 | 2.29% | 0.52% | 0.52%(d) | 4.13% | 17% | $775,309 |
| Year Ended 7/31/2017 | $13.60 | (0.50%) | 0.52%(e),(f) | 0.52%(d),(e),(f) | 4.18% | 13% | $807,282 |
| Institutional 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.16 | (3.04%) | 0.50%(c) | 0.50%(c) | 2.84%(c) | 5% | $19,780 |
| Year Ended 7/31/2021 | $13.84 | 5.97% | 0.51%(e) | 0.51%(e) | 3.00% | 13% | $22,033 |
| Year Ended 7/31/2020 | $13.50 | 2.90% | 0.52%(e) | 0.52%(e) | 3.36% | 29% | $50,150 |
| Year Ended 7/31/2019 | $13.64 | 6.81% | 0.52% | 0.52% | 3.94% | 20% | $8,978 |
| Year Ended 7/31/2018 | $13.35 | 2.29% | 0.51% | 0.51% | 4.16% | 17% | $6,239 |
| Year Ended 7/31/2017 | $13.60 | (0.47%) | 0.51%(e),(f) | 0.51%(e),(f) | 4.21% | 13% | $1,990 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 37 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.88 | 0.20 | (0.62) | (0.42) | (0.20) | (0.07) | (0.27) |
| Year Ended 7/31/2021 | $13.54 | 0.41 | 0.39 | 0.80 | (0.42) | (0.04) | (0.46) |
| Year Ended 7/31/2020 | $13.67 | 0.46 | (0.06) | 0.40 | (0.46) | (0.07) | (0.53) |
| Year Ended 7/31/2019 | $13.39 | 0.53 | 0.35 | 0.88 | (0.59) | (0.01) | (0.60) |
| Year Ended 7/31/2018 | $13.64 | 0.57 | (0.26) | 0.31 | (0.56) | — | (0.56) |
| Year Ended 7/31/2017(h) | $13.45 | 0.23 | 0.19(i) | 0.42 | (0.23) | — | (0.23) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (e) | Ratios include interest and fee expense related to the participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by less than 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund’s net assets, net asset value per share, total return or net investment income. |
| (f) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Institutional 2 Class |
| 07/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (g) | Ratios include the impact of voluntary waivers paid by the Investment Manager. For the periods indicated below, if the Investment Manager had not paid these voluntary waivers, the Fund’s net expense ratio would increase by: |
| Class | 7/31/2021 | 7/31/2020 | 7/31/2019 |
| Class C | 0.01% | 0.10% | 0.10% |
| (h) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (i) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (j) | Ratios include interest and fee expense related to the participation in certain inverse floater programs. If interest and fee expense related to the participation in certain inverse floater programs had been excluded, expenses would have been lower by 0.01%. Due to an equal increase in interest income from fixed rate municipal bonds held in trust, there is no impact on the Fund’s net assets, net asset value per share, total return or net investment income. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 38 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $13.19 | (3.08%) | 0.46%(c) | 0.46%(c) | 2.88%(c) | 5% | $26,698 |
| Year Ended 7/31/2021 | $13.88 | 6.01% | 0.47%(e) | 0.47%(e) | 3.03% | 13% | $27,202 |
| Year Ended 7/31/2020 | $13.54 | 3.03% | 0.47%(e) | 0.47%(e) | 3.42% | 29% | $20,467 |
| Year Ended 7/31/2019 | $13.67 | 6.78% | 0.47% | 0.47% | 3.97% | 20% | $17,056 |
| Year Ended 7/31/2018 | $13.39 | 2.35% | 0.47% | 0.47% | 4.25% | 17% | $7,731 |
| Year Ended 7/31/2017(h) | $13.64 | 3.17% | 0.49%(c),(j) | 0.49%(c),(j) | 4.19%(c) | 13% | $71 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 39 |
Notes to Financial Statements
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 1. Organization
Columbia Tax-Exempt Fund (the
Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the
Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued 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.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
| 40 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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.
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 and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically
allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may
impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or 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
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 41 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
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.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss
when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at January 31, 2022:
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 329,942* |
| * | 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. |
| 42 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended January 31, 2022:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 624,817 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | (329,942) |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended January 31, 2022:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — short | 65,136,094 |
| * | Based on the ending quarterly outstanding amounts for the six months ended January 31, 2022. |
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 43 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.48% to 0.29% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2022 was 0.44% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
| 44 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class. In addition, effective December 1, 2021 through November 30, 2022, Institutional 3
Class shares are subject to a contractual transfer agency fee annual limitation of not more than 0.00% of the average daily net assets attributable to that share class.
For the six months
ended January 31, 2022, 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 | 0.06 |
| Advisor Class | 0.06 |
| Class C | 0.06 |
| Institutional Class | 0.06 |
| Institutional 2 Class | 0.05 |
| Institutional 3 Class | 0.00 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended January 31, 2022, these minimum account balance fees reduced total
expenses of the Fund by $2,677.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.20% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 45 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Effective December 1, 2021, the
Distributor has reduced the distribution fee for Class C shares to 0.60% annually of the average daily net assets attributable to Class C shares. Prior to December 1, 2021, the Distributor contractually waived a
portion of the distribution fee for Class C shares so that the distribution fee did not exceed 0.60% annually of the average daily net assets attributable to Class C shares. This arrangement could have
been modified or terminated at the sole discretion of the Board of Trustees.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended January 31, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 269,129 |
| Class C | — | 1.00(b) | 432 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| December 1, 2021 through November 30, 2022 | Prior to December 1, 2021 | |
| Class A | 0.77% | 0.80% |
| Advisor Class | 0.57 | 0.60 |
| Class C | 1.37 | 1.55 |
| Institutional Class | 0.57 | 0.60 |
| Institutional 2 Class | 0.55 | 0.59 |
| Institutional 3 Class | 0.51 | 0.54 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Reflected in the contractual cap commitment, effective December 1, 2021 through November 30, 2022, is the
Transfer Agent’s contractual agreement to limit total transfer agency fees to an annual rate of not more than 0.00% for Institutional 3 Class of the average daily net assets attributable to that share class,
unless sooner terminated at the sole discretion of the Board of Trustees. Prior to December 1, 2021, Class C distribution fees waived by the Distributor, as discussed above, were in addition to the
waiver/reimbursement commitment under the agreement. 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.
| 46 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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 January 31, 2022, 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 ($) |
| 2,977,455,000 | 160,727,000 | (73,873,000) | 86,854,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $152,941,601 and $243,674,964, respectively, for the six months ended January 31, 2022. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended January 31, 2022.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, 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 $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate
equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit
facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The
commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had
access to a revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 47 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
permitted collective borrowings up to $950
million. Interest was charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and
(iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during
the six months ended January 31, 2022.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise.
Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates
may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a
debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, 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 large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and
duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international
sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser
| 48 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
preferences, cyberattacks and espionage) could
have a severe adverse impact on regional and/or global securities and commodities markets, including markets for oil and natural gas. These and other related events could have a negative impact on Fund performance and
the value of an investment in the Fund.
The pandemic caused by coronavirus
disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource
availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce
displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by
governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks,
epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks
and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate
other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner
and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt
obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of
the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The
value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing
authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such
as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors
such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory,
commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as
economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers
which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be
negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is
directly correlated to the Fund’s investment exposures.
Securities issued by a particular
state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political
changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At January 31, 2022, one
unaffiliated shareholder of record owned 12.1% 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 40.1% 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
| Columbia Tax-Exempt Fund | Semiannual Report 2022 | 49 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
large redemption, the Fund may be forced to sell
investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased
economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to
the Fund.
| 50 | Columbia Tax-Exempt Fund | Semiannual Report 2022 |
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.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR233_07_M01_(03/22)
Columbia Ultra
Short Term Bond Fund
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Ultra Short Term Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia Ultra Short Term Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital.
Portfolio management
Gregory Liechty
Co-Portfolio Manager
Managed Fund since 2016
Ronald Stahl, CFA
Co-Portfolio Manager
Managed Fund since 2015
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as redemption or exchange fees. Therefore, the hypothetical calculations are useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| August 1, 2021 — January 31, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 997.00 | 1,023.21 | 2.13 | 2.15 | 0.42 |
| Advisor Class | 1,000.00 | 1,000.00 | 997.80 | 1,023.97 | 1.37 | 1.38 | 0.27 |
| Institutional Class | 1,000.00 | 1,000.00 | 997.80 | 1,023.97 | 1.37 | 1.38 | 0.27 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 998.00 | 1,024.13 | 1.22 | 1.23 | 0.24 |
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 Ultra Short Term Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
January 31, 2022 (Unaudited)
January 31, 2022 (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 Ultra Short Term Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022,
securities and/or cash totaling $1,000,000 were pledged as collateral.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 15 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Investments in derivatives
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 2-Year Note | (2,000) | 03/2022 | USD | (433,312,500) | 3,855,616 | — |
Notes to Portfolio of
Investments
| (a) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At January 31, 2022, the total value of these securities amounted to $1,844,934,627, which represents 47.17% of total net assets. |
| (b) | Represents a security purchased on a when-issued basis. |
| (c) | Variable rate security. The interest rate shown was the current rate as of January 31, 2022. |
| (d) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of January 31, 2022. |
| (e) | Principal and interest may not be guaranteed by a governmental entity. |
| (f) | Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At January 31, 2022, the total value of these securities amounted to $745,378, which represents 0.02% of total net assets. |
| (g) | Valuation based on significant unobservable inputs. |
| (h) | Variable or floating rate security, the interest rate of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The interest rate shown was the current rate as of January 31, 2022. |
| (i) | The rate shown is the seven-day current annualized yield at January 31, 2022. |
| (j) | As defined in the Investment Company Act of 1940, as amended, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended January 31, 2022 are as follows: |
| Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
| Columbia Short-Term Cash Fund, 0.098% | ||||||||
| 69,999,006 | 1,324,944,830 | (1,228,000,951) | (306) | 166,942,579 | (6,029) | 40,110 | 166,975,974 | |
Abbreviation Legend
| CMO | Collateralized Mortgage Obligation |
| CMT | Constant Maturity Treasury |
| LIBOR | London Interbank Offered Rate |
| SOFR | Secured Overnight Financing Rate |
Currency Legend
| 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). |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Fair value measurements (continued)
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at January 31, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Asset-Backed Securities — Non-Agency | — | 1,326,023,682 | — | 1,326,023,682 |
| Commercial Mortgage-Backed Securities - Non-Agency | — | 11,970,214 | — | 11,970,214 |
| Corporate Bonds & Notes | — | 2,009,243,116 | — | 2,009,243,116 |
| Foreign Government Obligations | — | 34,985,732 | — | 34,985,732 |
| Residential Mortgage-Backed Securities - Agency | — | 27,449 | — | 27,449 |
| Residential Mortgage-Backed Securities - Non-Agency | — | 344,546,218 | 10,980,261 | 355,526,479 |
| Treasury Bills | 40,143,616 | — | — | 40,143,616 |
| U.S. Government & Agency Obligations | — | 55,583,382 | — | 55,583,382 |
| Money Market Funds | 166,942,579 | — | — | 166,942,579 |
| Total Investments in Securities | 207,086,195 | 3,782,379,793 | 10,980,261 | 4,000,446,249 |
| Investments in Derivatives | ||||
| Asset | ||||
| Futures Contracts | 3,855,616 | — | — | 3,855,616 |
| Total | 210,941,811 | 3,782,379,793 | 10,980,261 | 4,004,301,865 |
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 following table is a
reconciliation of Level 3 assets for which significant observable and unobservable inputs were used to determine fair value:
| Balance as of 07/31/2021 ($) | Increase (decrease) in accrued discounts/ premiums ($) | Realized gain (loss) ($) | Change in unrealized appreciation (depreciation)(a) ($) | Purchases ($) | Sales ($) | Transfers into Level 3 ($) | Transfers out of Level 3 ($) | Balance as of 01/31/2022 ($) | |
| Asset-Backed Securities — Non-Agency | 11,250,000 | — | — | — | — | — | — | (11,250,000) | — |
| Residential Mortgage-Backed Securities — Non-Agency | 44,162,200 | — | — | 1,339 | 10,500,000 | (25,233,278) | — | (18,450,000) | 10,980,261 |
| Total | 55,412,200 | — | — | 1,339 | 10,500,000 | (25,233,278) | — | (29,700,000) | 10,980,261 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 17 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Fair value measurements (continued)
(a) Change in unrealized appreciation (depreciation) relating to securities held at January 31, 2022 was $1,339 which is comprised of Residential Mortgage-Backed Securities — Non-Agency of $1,339.
(a) Change in unrealized appreciation (depreciation) relating to securities held at January 31, 2022 was $1,339 which is comprised of Residential Mortgage-Backed Securities — Non-Agency of $1,339.
The Fund’s assets assigned to
the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain residential mortgage backed securities classified as Level 3 securities are valued using the
market approach and utilize single market quotations from broker dealers which may have included, but were not limited to, observable transactions for identical or similar assets in the market and the distressed
nature of the security. The appropriateness of fair values for these securities is monitored on an ongoing basis which may include results of back testing, manual price reviews and other control procedures.
Significant increases (decreases) to any of these inputs would have resulted in a significantly higher (lower) fair value measurement.
Financial assets were transferred
from Level 3 to Level 2 as observable market inputs were utilized and management determined that there was sufficient, reliable and observable market data to value these assets as of period end.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $3,853,259,797) | $3,833,503,670 |
| Affiliated issuers (cost $166,941,662) | 166,942,579 |
| Cash | 50,764 |
| Margin deposits on: | |
| Futures contracts | 1,000,000 |
| Receivable for: | |
| Investments sold | 51,148,645 |
| Capital shares sold | 3,609,775 |
| Dividends | 11,034 |
| Interest | 8,530,997 |
| Foreign tax reclaims | 15,105 |
| Prepaid expenses | 30,019 |
| Trustees’ deferred compensation plan | 200,790 |
| Other assets | 15,063 |
| Total assets | 4,065,058,441 |
| Liabilities | |
| Payable for: | |
| Investments purchased | 56,824,270 |
| Investments purchased on a delayed delivery basis | 86,906,586 |
| Capital shares purchased | 8,030,274 |
| Distributions to shareholders | 1,239,590 |
| Variation margin for futures contracts | 46,876 |
| Management services fees | 67,618 |
| Distribution and/or service fees | 11,050 |
| Transfer agent fees | 40,968 |
| Compensation of board members | 26,923 |
| Compensation of chief compliance officer | 90 |
| Other expenses | 61,052 |
| Trustees’ deferred compensation plan | 200,790 |
| Total liabilities | 153,456,087 |
| Net assets applicable to outstanding capital stock | $3,911,602,354 |
| Represented by | |
| Paid in capital | 3,934,644,191 |
| Total distributable earnings (loss) | (23,041,837) |
| Total - representing net assets applicable to outstanding capital stock | $3,911,602,354 |
| Class A | |
| Net assets | $894,444,919 |
| Shares outstanding | 99,363,702 |
| Net asset value per share | $9.00 |
| Advisor Class | |
| Net assets | $38,341,821 |
| Shares outstanding | 4,255,637 |
| Net asset value per share | $9.01 |
| Institutional Class | |
| Net assets | $369,786,070 |
| Shares outstanding | 41,041,677 |
| Net asset value per share | $9.01 |
| Institutional 3 Class | |
| Net assets | $2,609,029,544 |
| Shares outstanding | 289,439,115 |
| Net asset value per share | $9.01 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 19 |
Statement of Operations
Six Months Ended January 31, 2022 (Unaudited)
Six Months Ended January 31, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — affiliated issuers | $40,110 |
| Interest | 13,250,010 |
| Interfund lending | 58 |
| Total income | 13,290,178 |
| Expenses: | |
| Management services fees | 4,290,369 |
| Distribution and/or service fees | |
| Class A | 726,050 |
| Transfer agent fees | |
| Class A | 201,347 |
| Advisor Class | 7,194 |
| Institutional Class | 85,513 |
| Institutional 3 Class | 70,391 |
| Compensation of board members | 31,910 |
| Custodian fees | 13,152 |
| Printing and postage fees | 19,191 |
| Registration fees | 279,848 |
| Audit fees | 14,993 |
| Legal fees | 24,140 |
| Compensation of chief compliance officer | 514 |
| Other | 27,890 |
| Total expenses | 5,792,502 |
| Net investment income | 7,497,676 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 895,591 |
| Investments — affiliated issuers | (6,029) |
| Futures contracts | 1,339,288 |
| Net realized gain | 2,228,850 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (21,995,607) |
| Investments — affiliated issuers | (306) |
| Futures contracts | 3,865,033 |
| Net change in unrealized appreciation (depreciation) | (18,130,880) |
| Net realized and unrealized loss | (15,902,030) |
| Net decrease in net assets resulting from operations | $(8,404,354) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended January 31, 2022 (Unaudited) | Year Ended July 31, 2021 | |
| Operations | ||
| Net investment income | $7,497,676 | $22,495,472 |
| Net realized gain | 2,228,850 | 5,914,847 |
| Net change in unrealized appreciation (depreciation) | (18,130,880) | (6,980,451) |
| Net increase (decrease) in net assets resulting from operations | (8,404,354) | 21,429,868 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (1,392,321) | (4,935,165) |
| Advisor Class | (74,040) | (95,070) |
| Institutional Class | (897,670) | (2,527,296) |
| Institutional 3 Class | (6,320,881) | (17,427,490) |
| Total distributions to shareholders | (8,684,912) | (24,985,021) |
| Increase (decrease) in net assets from capital stock activity | (46,772,010) | 1,740,629,181 |
| Total increase (decrease) in net assets | (63,861,276) | 1,737,074,028 |
| Net assets at beginning of period | 3,975,463,630 | 2,238,389,602 |
| Net assets at end of period | $3,911,602,354 | $3,975,463,630 |
| Six Months Ended | Year Ended | |||
| January 31, 2022 (Unaudited) | July 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 24,892,835 | 224,796,817 | 121,956,238 | 1,103,440,357 |
| Distributions reinvested | 154,135 | 1,391,132 | 543,784 | 4,919,688 |
| Redemptions | (33,947,003) | (306,427,661) | (63,535,032) | (574,792,443) |
| Net increase (decrease) | (8,900,033) | (80,239,712) | 58,964,990 | 533,567,602 |
| Advisor Class | ||||
| Subscriptions | 5,584,298 | 50,490,186 | 5,647,873 | 51,136,063 |
| Distributions reinvested | 8,196 | 74,017 | 10,488 | 94,970 |
| Redemptions | (3,543,733) | (32,010,350) | (3,730,005) | (33,765,846) |
| Net increase | 2,048,761 | 18,553,853 | 1,928,356 | 17,465,187 |
| Institutional Class | ||||
| Subscriptions | 18,090,401 | 163,499,318 | 53,485,336 | 484,322,411 |
| Distributions reinvested | 98,310 | 888,197 | 277,639 | 2,514,378 |
| Redemptions | (22,028,054) | (198,995,689) | (33,349,666) | (301,983,894) |
| Net increase (decrease) | (3,839,343) | (34,608,174) | 20,413,309 | 184,852,895 |
| Institutional 3 Class | ||||
| Subscriptions | 97,954,596 | 885,324,704 | 279,779,317 | 2,534,105,345 |
| Distributions reinvested | 104,191 | 941,320 | 337,244 | 3,054,320 |
| Redemptions | (92,594,616) | (836,744,001) | (169,206,209) | (1,532,416,168) |
| Net increase | 5,464,171 | 49,522,023 | 110,910,352 | 1,004,743,497 |
| Total net increase (decrease) | (5,226,444) | (46,772,010) | 192,217,007 | 1,740,629,181 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 21 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Total distributions to shareholders | |
| Class A | ||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.04 | 0.01 | (0.04) | (0.03) | (0.01) | (0.01) |
| Year Ended 7/31/2021 | $9.05 | 0.05 | 0.00(d) | 0.05 | (0.06) | (0.06) |
| Year Ended 7/31/2020 | $9.03 | 0.16 | 0.03 | 0.19 | (0.17) | (0.17) |
| Year Ended 7/31/2019(e) | $9.01 | 0.09 | 0.02 | 0.11 | (0.09) | (0.09) |
| Advisor Class | ||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.05 | 0.02 | (0.04) | (0.02) | (0.02) | (0.02) |
| Year Ended 7/31/2021 | $9.06 | 0.06 | 0.00(d) | 0.06 | (0.07) | (0.07) |
| Year Ended 7/31/2020 | $9.04 | 0.16 | 0.05 | 0.21 | (0.19) | (0.19) |
| Year Ended 7/31/2019(f) | $8.99 | 0.14 | 0.05 | 0.19 | (0.14) | (0.14) |
| Institutional Class | ||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.05 | 0.02 | (0.04) | (0.02) | (0.02) | (0.02) |
| Year Ended 7/31/2021 | $9.06 | 0.06 | 0.00(d) | 0.06 | (0.07) | (0.07) |
| Year Ended 7/31/2020 | $9.04 | 0.17 | 0.04 | 0.21 | (0.19) | (0.19) |
| Year Ended 7/31/2019(g) | $8.99 | 0.15 | 0.04 | 0.19 | (0.14) | (0.14) |
| Institutional 3 Class | ||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.05 | 0.02 | (0.04) | (0.02) | (0.02) | (0.02) |
| Year Ended 7/31/2021 | $9.06 | 0.07 | 0.00(d) | 0.07 | (0.08) | (0.08) |
| Year Ended 7/31/2020 | $9.04 | 0.18 | 0.03 | 0.21 | (0.19) | (0.19) |
| Year Ended 7/31/2019 | $9.00 | 0.22 | 0.04 | 0.26 | (0.22) | (0.22) |
| Year Ended 7/31/2018 | $9.02 | 0.14 | (0.01) | 0.13 | (0.15) | (0.15) |
| Year Ended 7/31/2017 | $9.01 | 0.10 | 0.01 | 0.11 | (0.10) | (0.10) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | Rounds to zero. |
| (e) | Class A shares commenced operations on February 20, 2019. Per share data and total return reflect activity from that date. |
| (f) | Advisor Class shares commenced operations on December 3, 2018. Per share data and total return reflect activity from that date. |
| (g) | Institutional Class shares commenced operations on December 3, 2018. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 22 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.00 | (0.30%) | 0.42%(c) | 0.42%(c) | 0.23%(c) | 47% | $894,445 |
| Year Ended 7/31/2021 | $9.04 | 0.56% | 0.43% | 0.43% | 0.55% | 87% | $978,846 |
| Year Ended 7/31/2020 | $9.05 | 2.17% | 0.43% | 0.43% | 1.79% | 100% | $446,211 |
| Year Ended 7/31/2019(e) | $9.03 | 1.27% | 0.42%(c) | 0.42%(c) | 2.43%(c) | 95% | $118,625 |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.01 | (0.22%) | 0.27%(c) | 0.27%(c) | 0.37%(c) | 47% | $38,342 |
| Year Ended 7/31/2021 | $9.05 | 0.71% | 0.28% | 0.28% | 0.63% | 87% | $19,969 |
| Year Ended 7/31/2020 | $9.06 | 2.32% | 0.27% | 0.27% | 1.81% | 100% | $2,522 |
| Year Ended 7/31/2019(f) | $9.04 | 2.16% | 0.27%(c) | 0.27%(c) | 2.52%(c) | 95% | $12 |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.01 | (0.22%) | 0.27%(c) | 0.27%(c) | 0.38%(c) | 47% | $369,786 |
| Year Ended 7/31/2021 | $9.05 | 0.71% | 0.28% | 0.28% | 0.71% | 87% | $406,157 |
| Year Ended 7/31/2020 | $9.06 | 2.32% | 0.28% | 0.28% | 1.94% | 100% | $221,636 |
| Year Ended 7/31/2019(g) | $9.04 | 2.18% | 0.30%(c) | 0.30%(c) | 2.63%(c) | 95% | $61,044 |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $9.01 | (0.20%) | 0.24%(c) | 0.24%(c) | 0.42%(c) | 47% | $2,609,030 |
| Year Ended 7/31/2021 | $9.05 | 0.75% | 0.24% | 0.24% | 0.75% | 87% | $2,570,491 |
| Year Ended 7/31/2020 | $9.06 | 2.35% | 0.25% | 0.25% | 2.00% | 100% | $1,568,020 |
| Year Ended 7/31/2019 | $9.04 | 2.91% | 0.25% | 0.25% | 2.40% | 95% | $780,430 |
| Year Ended 7/31/2018 | $9.00 | 1.40% | 0.26% | 0.25% | 1.56% | 66% | $1,128,076 |
| Year Ended 7/31/2017 | $9.02 | 1.19% | 0.26% | 0.25% | 1.08% | 111% | $1,735,029 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 1. Organization
Columbia Ultra Short Term Bond
Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Columbia Ultra Short Term Bond Fund
must be purchased through financial intermediaries that, by written agreement with Columbia Management Investment Distributors, Inc., are specifically authorized to sell the Fund’s shares.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A shares are offered to the general public for investment. Advisor Class, Institutional Class and Institutional 3 Class shares are available for purchase through authorized investment professionals
to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued 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.
Asset- and mortgage-backed
securities are generally valued by pricing services, which utilize pricing models that incorporate the securities’ cash flow and loan performance data. These models also take into account available market data,
including trades, market quotations, and benchmark yield curves for identical or similar securities. Factors used to identify similar securities may include, but are not limited to, issuer, collateral type, vintage,
prepayment speeds, collateral performance, credit ratings, credit enhancement and expected life. Asset-backed securities for which quotations are readily available may also be valued based upon an over-the-counter or
exchange bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or less are valued primarily at amortized market value, unless this method results in a valuation that management
believes does not approximate fair value.
| 24 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Investments in open-end investment
companies (other than exchange-traded funds (ETFs)), are valued at the latest net asset value reported by those companies as of the valuation time.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
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 and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically
allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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.
Futures contracts
Futures contracts are
exchange-traded and represent commitments for the future purchase or sale of an asset at a specified price on a specified date. The Fund bought and sold futures contracts to manage the duration and yield curve
exposure of the Fund versus the benchmark and to manage exposure to movements in interest rates. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears
risks that it may not achieve the anticipated benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in
the value of the contract or option may not correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss
when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| 26 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at January 31, 2022:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 3,855,616* |
| * | 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 January 31, 2022:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 1,339,288 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 3,865,033 |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended January 31, 2022:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — short | 403,018,750 |
| * | Based on the ending quarterly outstanding amounts for the six months ended January 31, 2022. |
Asset- and mortgage-backed
securities
The Fund may invest in asset-backed
and mortgage-backed securities. The maturity dates shown represent the original maturity of the underlying obligation. Actual maturity may vary based upon prepayment activity on these obligations. All, or a portion,
of the obligation may be prepaid at any time because the underlying asset may be prepaid. As a result, decreasing market interest rates could result in an increased level of prepayment. An increased prepayment rate
will have the effect of shortening the maturity of the security. Unless otherwise noted, the coupon rates presented are fixed rates.
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted. The
Fund classifies gains and losses realized on prepayments received on mortgage-backed securities as adjustments to interest income.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its
tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net income and certain other
amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign
taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules
and regulations that exist in the markets in which it invests.
Realized gains in certain countries
may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The
amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| 28 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to 0.21% of the Fund’s
daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Deferred Plan. All
amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred during the current period as well as any
gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
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 January
31, 2022, 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 | 0.04 |
| Advisor Class | 0.04 |
| Institutional Class | 0.04 |
| Institutional 3 Class | 0.01 |
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
Under the Plans, the Fund pays a
monthly combined distribution and service fee to the Distributor at the maximum annual rate of 0.15% of the average daily net assets attributable to Class A shares of the Fund.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees for Class A, Advisor Class and Institutional Class and permanently for as long as the Investment Manager manages the Fund for Institutional 3 Class, so that the Fund’s net
operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s custodian, do not exceed the following annual rate(s) as a percentage
of the classes’ average daily net assets:
| December 1, 2021 through November 30, 2022 | Prior to December 1, 2021 | |
| Class A | 0.43% | 0.50% |
| Advisor Class | 0.28 | 0.35 |
| Institutional Class | 0.28 | 0.35 |
| Institutional 3 Class | 0.25 | 0.25 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are
not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
At January 31, 2022, the
approximate cost of all investments for federal income tax purposes and the aggregate gross approximate unrealized appreciation and depreciation based on that cost was:
| Federal tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized (depreciation) ($) | Net unrealized (depreciation) ($) |
| 4,020,201,000 | 4,426,000 | (20,325,000) | (15,899,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
| 30 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The following capital loss
carryforwards, determined at July 31, 2021, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| — | (6,627,039) | (6,627,039) |
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 $1,834,873,919 and $1,824,554,605, respectively, for the six months ended January 31, 2022, of which
$7,291,025 and $47,638,485, respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Affiliated money
market fund
The Fund invests in Columbia
Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included as
Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a
floating net asset value. 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 January 31, 2022 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Lender | 3,000,000 | 0.69 | 1 |
Interest income earned by the Fund
is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at January 31, 2022.
Note 8. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, the credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment
Manager or an affiliated
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 31 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
investment manager, severally and not jointly,
permits collective borrowings up to $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the federal funds effective rate, (ii) the
secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit facility matures no later than 60 days after the date of borrowing.
The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The commitment fee is included in other expenses in the Statement of
Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had access to a revolving credit facility with a syndicate of banks
led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate
equal to the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during
the six months ended January 31, 2022.
Note 9. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Derivatives risk
Losses involving derivative
instruments may be substantial, because a relatively small movement in the underlying reference (which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency,
index or other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the use of derivative instruments may lead to increased volatility within the Fund.
Derivatives will typically increase the Fund’s exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including correlation risk, counterparty risk, hedging
risk, leverage risk, liquidity risk and pricing risk.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise.
Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates
may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a
debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
LIBOR replacement risk
The elimination of London
Inter-Bank Offered Rate (LIBOR), among other "inter-bank offered" reference rates, may adversely affect the interest rates on, and value of, certain Fund investments for which the value is tied to LIBOR. The U.K.
Financial Conduct Authority and the ICE Benchmark Administration have announced that a majority of U.S. dollar LIBOR settings will cease publication after June 30, 2023. It is possible that a subset of LIBOR settings
will be published after this date on a “synthetic” basis, but any such publications would be considered non-representative of the underlying market. Markets are slowly developing in response to the
elimination of LIBOR. Uncertainty related to the liquidity impact of the change in rates, and how to appropriately adjust these rates at the time of transition, poses risks for the Fund. These risks are likely to
persist until new reference rates and fallbacks for both legacy and new instruments and contracts are commercially accepted and market practices become settled. Alternatives to LIBOR have been established or are in
development in most major currencies, including the Secured Overnight Financing Rate (SOFR) that is intended to replace U.S. dollar LIBOR.
| 32 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, 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 large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and
duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international
sanctions, a downgrade in the country’s credit rating, purchasing and financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have a severe
adverse impact on regional and/or global securities and commodities markets, including markets for oil and natural gas. These and other related events could have a negative impact on Fund performance and the value of
an investment in the Fund.
The pandemic caused by coronavirus
disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource
availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce
displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by
governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks,
epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks
and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate
other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner
and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Mortgage- and other asset-backed
securities risk
The value of any mortgage-backed
and other asset-backed securities including collateralized debt obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the
interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities
| Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 | 33 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
that provide any supporting letters of credit,
surety bonds or other credit enhancements; or the market’s assessment of the quality of underlying assets. Payment of principal and interest on some mortgage-backed securities (but not the market value of the
securities themselves) may be guaranteed by the full faith and credit of a particular U.S. Government agency, authority, enterprise or instrumentality, and some, but not all, are also insured or guaranteed by the U.S.
Government. Mortgage-backed securities issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market
issuers) may entail greater risk than obligations guaranteed by the U.S. Government. Mortgage- and other asset-backed securities are subject to liquidity risk and prepayment risk. A decline or flattening of housing
values may cause delinquencies in mortgages (especially sub-prime or non-prime mortgages) underlying mortgage-backed securities and thereby adversely affect the ability of the mortgage-backed securities issuer to make
principal and/or interest payments to mortgage-backed securities holders, including the Fund. Rising or high interest rates tend to extend the duration of mortgage- and other asset-backed securities, making their
prices more volatile and more sensitive to changes in interest rates.
Shareholder concentration risk
At January 31, 2022, one
unaffiliated shareholder of record owned 56.8% 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 35.2% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the
Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of
less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 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 or one or more of its affiliates that provides services to
the Fund.
| 34 | Columbia Ultra Short Term Bond Fund | Semiannual Report 2022 |
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.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR103_07_M01_(03/22)
Columbia U.S.
Social Bond Fund
Not Federally Insured • No
Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia U.S. Social Bond Fund (the Fund) in paper, mailed to you, the Fund mails one shareholder report to each shareholder address, unless such shareholder elects to receive shareholder
reports from the Fund electronically via e-mail or by having a paper notice mailed to you (Postcard Notice) that your Fund’s shareholder report is available at the Columbia funds’ website
(columbiathreadneedleus.com/investor/). If you would like more than one report in paper to be mailed to you, or would like to elect to receive reports via e-mail or access them through Postcard Notice, please call
shareholder services at 800.345.6611 and additional reports will be sent to you.
Proxy voting policies and
procedures
The policy of the Board of Trustees
is to vote the proxies of the companies in which the Fund holds investments consistent with the procedures as stated in the Statement of Additional Information (SAI). You may obtain a copy of the SAI without charge by
calling 800.345.6611; contacting your financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the website of the Securities and Exchange Commission (SEC) at sec.gov. Information regarding
how the Fund voted proxies relating to portfolio securities is filed with the SEC by August 31st for the most recent 12-month period ending June 30th of that year, and is available without charge by visiting
columbiathreadneedleus.com/investor/, or searching the website of the SEC at sec.gov.
Quarterly schedule of
investments
The Fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. The Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio holdings, as filed on Form N-PORT, can also be obtained without charge, upon request, by calling 800.345.6611.
Additional Fund information
For more information about the
Fund, please visit columbiathreadneedleus.com/investor/ or call 800.345.6611. Customer Service Representatives are available to answer your questions Monday through Friday from 8 a.m. to 7 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the
Investment Manager)
290 Congress Street
Boston, MA 02210
Fund distributor
Columbia Management Investment Distributors,
Inc.
290 Congress Street
Boston, MA 02210
Fund transfer agent
Columbia Management Investment Services Corp.
P.O. Box 219104
Kansas City, MO 64121-9104
Columbia U.S. Social Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, consisting of current income and capital appreciation, through investments that seek to support and fund socially beneficial activities and developments, primarily in the U.S.
Portfolio management
Catherine Stienstra
Lead Portfolio Manager
Managed Fund since February 2022
Tom Murphy, CFA
Portfolio Manager
Managed Fund since 2015
Malcolm (Mac) Ryerse
Portfolio Manager
Managed Fund since 2018
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| August 1, 2021 — January 31, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 968.50 | 1,021.79 | 3.49 | 3.59 | 0.70 |
| Advisor Class | 1,000.00 | 1,000.00 | 969.70 | 1,023.06 | 2.25 | 2.31 | 0.45 |
| Class C | 1,000.00 | 1,000.00 | 963.90 | 1,017.99 | 7.22 | 7.42 | 1.45 |
| Institutional Class | 1,000.00 | 1,000.00 | 969.70 | 1,023.06 | 2.25 | 2.31 | 0.45 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 969.90 | 1,023.21 | 2.10 | 2.15 | 0.42 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 969.30 | 1,023.47 | 1.85 | 1.90 | 0.37 |
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 U.S. Social Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
January 31, 2022 (Unaudited)
January 31, 2022 (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 U.S. Social Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022,
securities and/or cash totaling $66,000 were pledged as collateral.
Investments in
derivatives
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 10-Year Note | (19) | 03/2022 | USD | (2,431,406) | 38,874 | — |
| U.S. Treasury 10-Year Note | (25) | 03/2022 | USD | (3,199,219) | — | (7,103) |
| Total | 38,874 | (7,103) | ||||
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 15 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Notes to Portfolio of
Investments
| (a) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At January 31, 2022, the total value of these securities amounted to $2,575,179, which represents 3.45% of total net assets. |
| (b) | Represents a variable rate security with a step coupon where the rate adjusts according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The interest rate shown was the current rate as of January 31, 2022. |
| (c) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (d) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of January 31, 2022. |
| (e) | Represents a security purchased on a when-issued basis. |
| (f) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At January 31, 2022, the total value of these securities amounted to $204,000, which represents 0.27% of total net assets. |
| (g) | Income from this security may be subject to alternative minimum tax. |
| (h) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At January 31, 2022, the total value of these securities amounted to $805,597, which represents 1.08% of total net assets. |
| (i) | Zero coupon bond. |
| (j) | The rate shown is the seven-day current annualized yield at January 31, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| FNMA | Federal National Mortgage Association |
| GNMA | Government National Mortgage Association |
| HUD | Department of Housing and Urban Development |
| NPFGC | National Public Finance Guarantee Corporation |
Currency Legend
| 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.
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 accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Fair value measurements (continued)
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 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 January 31, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Corporate Bonds & Notes | — | 6,432,102 | — | 6,432,102 |
| Floating Rate Notes | — | 450,000 | — | 450,000 |
| Municipal Bonds | — | 61,997,259 | — | 61,997,259 |
| Money Market Funds | 5,105,840 | — | — | 5,105,840 |
| Total Investments in Securities | 5,105,840 | 68,879,361 | — | 73,985,201 |
| Investments in Derivatives | ||||
| Asset | ||||
| Futures Contracts | 38,874 | — | — | 38,874 |
| Liability | ||||
| Futures Contracts | (7,103) | — | — | (7,103) |
| Total | 5,137,611 | 68,879,361 | — | 74,016,972 |
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.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 17 |
Statement of Assets and Liabilities
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $72,416,919) | $73,985,201 |
| Cash | 90,856 |
| Margin deposits on: | |
| Futures contracts | 66,000 |
| Receivable for: | |
| Capital shares sold | 130,078 |
| Interest | 677,434 |
| Expense reimbursement due from Investment Manager | 2,146 |
| Prepaid expenses | 1,956 |
| Trustees’ deferred compensation plan | 42,013 |
| Other assets | 65 |
| Total assets | 74,995,749 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 148,490 |
| Capital shares purchased | 68,533 |
| Distributions to shareholders | 125,470 |
| Variation margin for futures contracts | 688 |
| Management services fees | 2,942 |
| Distribution and/or service fees | 413 |
| Transfer agent fees | 4,491 |
| Compensation of board members | 8,853 |
| Compensation of chief compliance officer | 2 |
| Other expenses | 26,746 |
| Trustees’ deferred compensation plan | 42,013 |
| Total liabilities | 428,641 |
| Net assets applicable to outstanding capital stock | $74,567,108 |
| Represented by | |
| Paid in capital | 73,372,291 |
| Total distributable earnings (loss) | 1,194,817 |
| Total - representing net assets applicable to outstanding capital stock | $74,567,108 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Class A | |
| Net assets | $14,950,824 |
| Shares outstanding | 1,435,307 |
| Net asset value per share | $10.42 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $10.74 |
| Advisor Class | |
| Net assets | $2,614,290 |
| Shares outstanding | 250,992 |
| Net asset value per share | $10.42 |
| Class C | |
| Net assets | $1,294,194 |
| Shares outstanding | 124,276 |
| Net asset value per share | $10.41 |
| Institutional Class | |
| Net assets | $44,434,599 |
| Shares outstanding | 4,265,597 |
| Net asset value per share | $10.42 |
| Institutional 2 Class | |
| Net assets | $3,787,389 |
| Shares outstanding | 363,272 |
| Net asset value per share | $10.43 |
| Institutional 3 Class | |
| Net assets | $7,485,812 |
| Shares outstanding | 716,127 |
| Net asset value per share | $10.45 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 19 |
Statement of Operations
Six Months Ended January 31, 2022 (Unaudited)
Six Months Ended January 31, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $69 |
| Interest | 924,502 |
| Total income | 924,571 |
| Expenses: | |
| Management services fees | 173,969 |
| Distribution and/or service fees | |
| Class A | 18,842 |
| Class C | 7,148 |
| Transfer agent fees | |
| Class A | 6,566 |
| Advisor Class | 1,159 |
| Class C | 623 |
| Institutional Class | 18,437 |
| Institutional 2 Class | 1,056 |
| Institutional 3 Class | 259 |
| Compensation of board members | 9,112 |
| Custodian fees | 853 |
| Printing and postage fees | 5,398 |
| Registration fees | 49,689 |
| Audit fees | 14,993 |
| Legal fees | 5,624 |
| Compensation of chief compliance officer | 9 |
| Other | 4,715 |
| Total expenses | 318,452 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (133,886) |
| Total net expenses | 184,566 |
| Net investment income | 740,005 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | 6,092 |
| Futures contracts | 13,479 |
| Net realized gain | 19,571 |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (3,122,956) |
| Futures contracts | 31,771 |
| Net change in unrealized appreciation (depreciation) | (3,091,185) |
| Net realized and unrealized loss | (3,071,614) |
| Net decrease in net assets resulting from operations | $(2,331,609) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended January 31, 2022 (Unaudited) | Year Ended July 31, 2021 | |
| Operations | ||
| Net investment income | $740,005 | $1,450,306 |
| Net realized gain | 19,571 | 33,459 |
| Net change in unrealized appreciation (depreciation) | (3,091,185) | 734,051 |
| Net increase (decrease) in net assets resulting from operations | (2,331,609) | 2,217,816 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (138,321) | (286,103) |
| Advisor Class | (27,720) | (47,112) |
| Class C | (7,777) | (21,380) |
| Institutional Class | (441,161) | (884,786) |
| Institutional 2 Class | (37,956) | (71,421) |
| Institutional 3 Class | (80,230) | (135,066) |
| Total distributions to shareholders | (733,165) | (1,445,868) |
| Increase in net assets from capital stock activity | 6,349,024 | 7,480,454 |
| Total increase in net assets | 3,284,250 | 8,252,402 |
| Net assets at beginning of period | 71,282,858 | 63,030,456 |
| Net assets at end of period | $74,567,108 | $71,282,858 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 21 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| January 31, 2022 (Unaudited) | July 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 98,311 | 1,053,501 | 276,112 | 2,970,060 |
| Distributions reinvested | 9,249 | 98,557 | 20,204 | 216,513 |
| Redemptions | (38,378) | (408,069) | (298,959) | (3,208,079) |
| Net increase (decrease) | 69,182 | 743,989 | (2,643) | (21,506) |
| Advisor Class | ||||
| Subscriptions | 45,414 | 485,114 | 88,294 | 949,990 |
| Distributions reinvested | 2,590 | 27,607 | 4,372 | 46,874 |
| Redemptions | (32,138) | (341,293) | (44,592) | (478,911) |
| Net increase | 15,866 | 171,428 | 48,074 | 517,953 |
| Class C | ||||
| Subscriptions | 9,050 | 97,189 | 51,442 | 549,748 |
| Distributions reinvested | 508 | 5,415 | 1,522 | 16,303 |
| Redemptions | (19,347) | (206,250) | (83,018) | (891,596) |
| Net decrease | (9,789) | (103,646) | (30,054) | (325,545) |
| Institutional Class | ||||
| Subscriptions | 838,255 | 8,911,610 | 1,454,645 | 15,589,987 |
| Distributions reinvested | 30,549 | 325,584 | 61,656 | 660,810 |
| Redemptions | (455,832) | (4,860,819) | (1,053,333) | (11,276,538) |
| Net increase | 412,972 | 4,376,375 | 462,968 | 4,974,259 |
| Institutional 2 Class | ||||
| Subscriptions | 66,253 | 708,526 | 49,318 | 530,169 |
| Distributions reinvested | 3,548 | 37,841 | 6,634 | 71,181 |
| Redemptions | (24,858) | (267,200) | (9,151) | (98,319) |
| Net increase | 44,943 | 479,167 | 46,801 | 503,031 |
| Institutional 3 Class | ||||
| Subscriptions | 87,501 | 938,724 | 213,261 | 2,295,089 |
| Distributions reinvested | 7,144 | 76,400 | 12,047 | 129,625 |
| Redemptions | (31,114) | (333,413) | (55,063) | (592,452) |
| Net increase | 63,531 | 681,711 | 170,245 | 1,832,262 |
| Total net increase | 596,705 | 6,349,024 | 695,391 | 7,480,454 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 22 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.86 | 0.10 | (0.44) | (0.34) | (0.10) | — | (0.10) |
| Year Ended 7/31/2021 | $10.75 | 0.21 | 0.11 | 0.32 | (0.21) | — | (0.21) |
| Year Ended 7/31/2020 | $10.51 | 0.25 | 0.25 | 0.50 | (0.25) | (0.01) | (0.26) |
| Year Ended 7/31/2019 | $10.05 | 0.27 | 0.45 | 0.72 | (0.26) | — | (0.26) |
| Year Ended 7/31/2018 | $10.18 | 0.24 | (0.13) | 0.11 | (0.24) | — | (0.24) |
| Year Ended 7/31/2017 | $10.43 | 0.22 | (0.26) | (0.04) | (0.21) | — | (0.21) |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.86 | 0.11 | (0.44) | (0.33) | (0.11) | — | (0.11) |
| Year Ended 7/31/2021 | $10.75 | 0.24 | 0.11 | 0.35 | (0.24) | — | (0.24) |
| Year Ended 7/31/2020 | $10.51 | 0.28 | 0.25 | 0.53 | (0.28) | (0.01) | (0.29) |
| Year Ended 7/31/2019 | $10.05 | 0.29 | 0.46 | 0.75 | (0.29) | — | (0.29) |
| Year Ended 7/31/2018 | $10.18 | 0.28 | (0.14) | 0.14 | (0.27) | — | (0.27) |
| Year Ended 7/31/2017 | $10.43 | 0.24 | (0.25) | (0.01) | (0.24) | — | (0.24) |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.86 | 0.06 | (0.45) | (0.39) | (0.06) | — | (0.06) |
| Year Ended 7/31/2021 | $10.74 | 0.13 | 0.12 | 0.25 | (0.13) | — | (0.13) |
| Year Ended 7/31/2020 | $10.51 | 0.17 | 0.24 | 0.41 | (0.17) | (0.01) | (0.18) |
| Year Ended 7/31/2019 | $10.05 | 0.19 | 0.46 | 0.65 | (0.19) | — | (0.19) |
| Year Ended 7/31/2018 | $10.17 | 0.17 | (0.12) | 0.05 | (0.17) | — | (0.17) |
| Year Ended 7/31/2017 | $10.43 | 0.14 | (0.26) | (0.12) | (0.14) | — | (0.14) |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.86 | 0.11 | (0.44) | (0.33) | (0.11) | — | (0.11) |
| Year Ended 7/31/2021 | $10.75 | 0.24 | 0.11 | 0.35 | (0.24) | — | (0.24) |
| Year Ended 7/31/2020 | $10.51 | 0.28 | 0.25 | 0.53 | (0.28) | (0.01) | (0.29) |
| Year Ended 7/31/2019 | $10.05 | 0.29 | 0.46 | 0.75 | (0.29) | — | (0.29) |
| Year Ended 7/31/2018 | $10.18 | 0.27 | (0.13) | 0.14 | (0.27) | — | (0.27) |
| Year Ended 7/31/2017 | $10.43 | 0.24 | (0.25) | (0.01) | (0.24) | — | (0.24) |
| Institutional 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.87 | 0.12 | (0.45) | (0.33) | (0.11) | — | (0.11) |
| Year Ended 7/31/2021 | $10.76 | 0.24 | 0.11 | 0.35 | (0.24) | — | (0.24) |
| Year Ended 7/31/2020 | $10.52 | 0.28 | 0.25 | 0.53 | (0.28) | (0.01) | (0.29) |
| Year Ended 7/31/2019 | $10.06 | 0.29 | 0.46 | 0.75 | (0.29) | — | (0.29) |
| Year Ended 7/31/2018 | $10.18 | 0.27 | (0.12) | 0.15 | (0.27) | — | (0.27) |
| Year Ended 7/31/2017 | $10.43 | 0.25 | (0.26) | (0.01) | (0.24) | — | (0.24) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 24 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Class A | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.42 | (3.15%) | 1.07%(c) | 0.70%(c) | 1.85%(c) | 3% | $14,951 |
| Year Ended 7/31/2021 | $10.86 | 3.03% | 1.08% | 0.70% | 1.98% | 13% | $14,841 |
| Year Ended 7/31/2020 | $10.75 | 4.87% | 1.12% | 0.70% | 2.39% | 14% | $14,709 |
| Year Ended 7/31/2019 | $10.51 | 7.33% | 1.14% | 0.70% | 2.63% | 11% | $11,797 |
| Year Ended 7/31/2018 | $10.05 | 1.10% | 1.20% | 0.70% | 2.40% | 21% | $7,030 |
| Year Ended 7/31/2017 | $10.18 | (0.31%) | 1.31% | 0.72% | 2.12% | 20% | $5,184 |
| Advisor Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.42 | (3.03%) | 0.82%(c) | 0.45%(c) | 2.10%(c) | 3% | $2,614 |
| Year Ended 7/31/2021 | $10.86 | 3.29% | 0.83% | 0.45% | 2.23% | 13% | $2,554 |
| Year Ended 7/31/2020 | $10.75 | 5.13% | 0.87% | 0.45% | 2.64% | 14% | $2,010 |
| Year Ended 7/31/2019 | $10.51 | 7.60% | 0.89% | 0.45% | 2.86% | 11% | $629 |
| Year Ended 7/31/2018 | $10.05 | 1.36% | 0.94% | 0.45% | 2.76% | 21% | $86 |
| Year Ended 7/31/2017 | $10.18 | (0.06%) | 1.06% | 0.47% | 2.38% | 20% | $10 |
| Class C | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.41 | (3.61%) | 1.82%(c) | 1.45%(c) | 1.10%(c) | 3% | $1,294 |
| Year Ended 7/31/2021 | $10.86 | 2.36% | 1.83% | 1.45% | 1.23% | 13% | $1,456 |
| Year Ended 7/31/2020 | $10.74 | 3.99% | 1.87% | 1.45% | 1.64% | 14% | $1,763 |
| Year Ended 7/31/2019 | $10.51 | 6.53% | 1.89% | 1.45% | 1.88% | 11% | $1,803 |
| Year Ended 7/31/2018 | $10.05 | 0.45% | 1.95% | 1.45% | 1.65% | 21% | $1,470 |
| Year Ended 7/31/2017 | $10.17 | (1.16%) | 2.05% | 1.46% | 1.42% | 20% | $1,165 |
| Institutional Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.42 | (3.03%) | 0.82%(c) | 0.45%(c) | 2.10%(c) | 3% | $44,435 |
| Year Ended 7/31/2021 | $10.86 | 3.29% | 0.83% | 0.45% | 2.23% | 13% | $41,856 |
| Year Ended 7/31/2020 | $10.75 | 5.13% | 0.86% | 0.45% | 2.64% | 14% | $36,426 |
| Year Ended 7/31/2019 | $10.51 | 7.60% | 0.90% | 0.45% | 2.88% | 11% | $31,708 |
| Year Ended 7/31/2018 | $10.05 | 1.36% | 0.95% | 0.45% | 2.65% | 21% | $36,887 |
| Year Ended 7/31/2017 | $10.18 | (0.06%) | 1.06% | 0.47% | 2.39% | 20% | $34,257 |
| Institutional 2 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.43 | (3.01%) | 0.79%(c) | 0.42%(c) | 2.13%(c) | 3% | $3,787 |
| Year Ended 7/31/2021 | $10.87 | 3.31% | 0.80% | 0.43% | 2.25% | 13% | $3,461 |
| Year Ended 7/31/2020 | $10.76 | 5.14% | 0.84% | 0.44% | 2.66% | 14% | $2,920 |
| Year Ended 7/31/2019 | $10.52 | 7.60% | 0.87% | 0.44% | 2.89% | 11% | $3,018 |
| Year Ended 7/31/2018 | $10.06 | 1.46% | 0.93% | 0.44% | 2.67% | 21% | $1,581 |
| Year Ended 7/31/2017 | $10.18 | (0.05%) | 1.10% | 0.44% | 2.48% | 20% | $1,123 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 25 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.90 | 0.12 | (0.45) | (0.33) | (0.12) | — | (0.12) |
| Year Ended 7/31/2021 | $10.78 | 0.25 | 0.12 | 0.37 | (0.25) | — | (0.25) |
| Year Ended 7/31/2020 | $10.55 | 0.28 | 0.25 | 0.53 | (0.29) | (0.01) | (0.30) |
| Year Ended 7/31/2019 | $10.09 | 0.30 | 0.45 | 0.75 | (0.29) | — | (0.29) |
| Year Ended 7/31/2018 | $10.21 | 0.27 | (0.12) | 0.15 | (0.27) | — | (0.27) |
| Year Ended 7/31/2017(d) | $9.94 | 0.10 | 0.27(e) | 0.37 | (0.10) | — | (0.10) |
| 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) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (e) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 26 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Financial Highlights (continued)
| Net asset value, end of period | Total return | Total gross expense ratio to average net assets(a) | Total net expense ratio to average net assets(a),(b) | Net investment income ratio to average net assets | Portfolio turnover | Net assets, end of period (000’s) | |
| Institutional 3 Class | |||||||
| Six Months Ended 1/31/2022 (Unaudited) | $10.45 | (3.07%) | 0.74%(c) | 0.37%(c) | 2.18%(c) | 3% | $7,486 |
| Year Ended 7/31/2021 | $10.90 | 3.46% | 0.75% | 0.38% | 2.30% | 13% | $7,115 |
| Year Ended 7/31/2020 | $10.78 | 5.08% | 0.79% | 0.40% | 2.69% | 14% | $5,202 |
| Year Ended 7/31/2019 | $10.55 | 7.61% | 0.84% | 0.42% | 2.91% | 11% | $3,515 |
| Year Ended 7/31/2018 | $10.09 | 1.49% | 0.90% | 0.43% | 2.72% | 21% | $2,420 |
| Year Ended 7/31/2017(d) | $10.21 | 3.76% | 1.02%(c) | 0.44%(c) | 2.46%(c) | 20% | $10 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Note 1. Organization
Columbia U.S. Social Bond Fund
(the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class shares are available for purchase through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the
Fund’s prospectus.
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.
Futures and options on futures
contracts are valued based upon the settlement price at the close of regular trading on their principal exchanges or, in the absence of a settlement price, at the mean of the latest quoted bid and ask prices.
Investments for which market
quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by
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.
| 28 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (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.
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 and such shortfall is remedied by the CCP or otherwise, U.S. bankruptcy laws will typically
allocate that shortfall on a pro-rata basis across all the clearing broker’s customers (including the Fund), potentially resulting in losses to the Fund.
In order to better define its
contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (ISDA Master Agreement)
or similar agreement with its derivatives counterparties. An ISDA Master Agreement is an agreement between the Fund and a counterparty that governs over-the-counter derivatives and foreign exchange forward contracts
and contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset
with the counterparty certain derivative instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event of default (close-out netting), including the bankruptcy or insolvency of the counterparty. Note, however, that bankruptcy or insolvency laws of a particular jurisdiction may
impose restrictions on or prohibitions against the right of offset or netting in bankruptcy, insolvency or other events.
Collateral (margin) requirements
differ by type of derivative. Margin requirements are established by the clearinghouse or 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
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
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.
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. These instruments may be used for other purposes in future periods. Upon entering into futures contracts, the Fund bears risks that it may not achieve the anticipated
benefits of the futures contracts and may realize a loss. Additional risks include counterparty credit risk, the possibility of an illiquid market, and that a change in the value of the contract or option may not
correlate with changes in the value of the underlying asset.
Upon entering into a futures
contract, the Fund deposits cash or securities with the broker, known as a futures commission merchant (FCM), in an amount sufficient to meet the initial margin requirement. The initial margin deposit must be
maintained at an established level over the life of the contract. Cash deposited as initial margin is recorded in the Statement of Assets and Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily change in the contract value and are
recorded as variation margin receivable or payable and are offset in unrealized gains or losses. The Fund generally expects to earn interest income on its margin deposits. The Fund recognizes a realized gain or loss
when the contract is closed or expires. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed in the Statement of Assets and Liabilities.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at January 31, 2022:
| Asset derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized appreciation on futures contracts | 38,874* |
| 30 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
| Liability derivatives | ||
| Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
| Interest rate risk | Component of total distributable earnings (loss) — unrealized depreciation on futures contracts | 7,103* |
| * | Includes cumulative appreciation (depreciation) as reported in the tables following the Portfolio of Investments. Only the current day’s variation margin is reported in receivables or payables in the Statement of Assets and Liabilities. |
The following table indicates the
effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in the Statement of Operations for the six months ended January 31, 2022:
| Amount of realized gain (loss) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 13,479 |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 31,771 |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended January 31, 2022:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — short | 2,815,313 |
| * | Based on the ending quarterly outstanding amounts for the six months ended January 31, 2022. |
Delayed delivery securities
The Fund may trade securities on
other than normal settlement terms, including securities purchased or sold on a “when-issued” or "forward commitment" basis. This may increase risk to the Fund since the other party to the transaction may
fail to deliver, which could cause the Fund to subsequently invest at less advantageous prices. The Fund designates cash or liquid securities in an amount equal to the delayed delivery commitment.
Security transactions
Security transactions are accounted
for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.
Income recognition
Interest income is recorded on an
accrual basis. Market premiums and discounts, including original issue discounts, are amortized and accreted, respectively, over the expected life of the security on all debt securities, unless otherwise noted.
The Fund may place a debt security
on non-accrual status and reduce related interest income when it becomes probable that the interest will not be collected and the amount of uncollectible interest can be reasonably estimated. A defaulted debt security
is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Dividend income is recorded on the
ex-dividend date.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 31 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Expenses
General expenses of the Trust are
allocated to the Fund and other funds of the Trust based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to the Fund are
charged to the Fund. Expenses directly attributable to a specific class of shares are charged to that share class.
Determination of class net asset
value
All income, expenses (other than
class-specific expenses, which are charged to that share class, as shown in the Statement of Operations) and realized and unrealized gains (losses) are allocated to each class of the Fund on a daily basis, based on
the relative net assets of each class, for purposes of determining the net asset value of each class.
Federal income tax status
The Fund intends to qualify each
year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its net tax-exempt and investment company taxable income and net capital
gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each calendar year substantially all of its ordinary income, capital gain net
income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Distributions to shareholders
Distributions from net investment
income, if any, are declared daily and paid monthly. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal
income tax regulations, which may differ from GAAP.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
Note 3. Fees and other
transactions with affiliates
Management services fees
The Fund has entered into a
Management Agreement with Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). Under the Management Agreement, the
Investment Manager provides the Fund with investment research and advice, as well as administrative and accounting services. The management services fee is an annual fee that is equal to a percentage of the
Fund’s daily net assets that declines from 0.48% to 0.29% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended January 31, 2022 was 0.48% of the
Fund’s average daily net assets.
Subadvisory agreement
The Fund’s Board of Trustees
has approved a Subadvisory Agreement between the Investment Manager and Threadneedle International Limited (Threadneedle), an affiliate of the Investment Manager and an indirect wholly-owned subsidiary of Ameriprise
Financial. As of January 31, 2022, Threadneedle is not providing services to the Fund pursuant to the Subadvisory Agreement.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the
Deferred Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of
certain funds managed by the Investment Manager. The Fund’s liability for these amounts is adjusted for market value changes and
| 32 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
remains in the Fund until distributed in
accordance with the Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Fund. The expense for the Deferred Plan, which includes Trustees’ fees deferred
during the current period as well as any gains or losses on the Trustees’ deferred compensation balances as a result of market fluctuations, is included in "Compensation of board members" on the Statement of
Operations.
Compensation of Chief Compliance
Officer
The Board of Trustees has appointed
a Chief Compliance Officer for the Fund in accordance with federal securities regulations. As disclosed in the Statement of Operations, a portion of the Chief Compliance Officer’s total compensation is allocated
to the Fund, along with other allocations to affiliated registered investment companies managed by the Investment Manager and its affiliates, based on relative net assets.
Transfer agency fees
Under a Transfer and Dividend
Disbursing Agent Agreement, Columbia Management Investment Services Corp. (the Transfer Agent), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, is responsible for
providing transfer agency services to the Fund. The Transfer Agent has contracted with DST Asset Manager Solutions, Inc. (DST) to serve as sub-transfer agent. The Transfer Agent pays the fees of DST for services as
sub-transfer agent and DST is not entitled to reimbursement for such fees from the Fund (with the exception of out-of-pocket fees).
The Fund pays the Transfer Agent a
monthly transfer agency fee based on the number or the average value of accounts, depending on the type of account. In addition, the Fund pays the Transfer Agent a fee for shareholder services based on the number of
accounts or on a percentage of the average aggregate value of the Fund’s shares maintained in omnibus accounts up to the lesser of the amount charged by the financial intermediary or a cap established by the
Board of Trustees from time to time.
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended January
31, 2022, 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 | 0.09 |
| Advisor Class | 0.09 |
| Class C | 0.09 |
| Institutional Class | 0.09 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended January 31, 2022, no minimum account balance fees were charged by the
Fund.
Distribution and service fees
The Fund has entered into an
agreement with Columbia Management Investment Distributors, Inc. (the Distributor), an affiliate of the Investment Manager and a wholly-owned subsidiary of Ameriprise Financial, for distribution and shareholder
services. The Board of Trustees has approved, and the Fund has adopted, distribution and shareholder service plans (the Plans) applicable to certain share classes, which set the distribution and service fees for the
Fund. These fees are calculated daily and are intended to compensate the Distributor and/or eligible selling and/or servicing agents for selling shares of the Fund and providing services to investors.
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 33 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
Under the Plans, the Fund pays a
monthly service fee to the Distributor at the maximum annual rate of 0.25% of the average daily net assets attributable to Class A and Class C shares of the Fund. Also under the Plans, the Fund pays a monthly
distribution fee to the Distributor at the maximum annual rate of 0.75% of the average daily net assets attributable to Class C shares of the Fund.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended January 31, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 2,703 |
| Class C | — | 1.00(b) | 100 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| Fee rate(s) contractual through November 30, 2022 | |
| Class A | 0.70% |
| Advisor Class | 0.45 |
| Class C | 1.45 |
| Institutional Class | 0.45 |
| Institutional 2 Class | 0.42 |
| Institutional 3 Class | 0.37 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, costs associated with shareholder meetings, infrequent and/or unusual expenses and any other expenses the exclusion of which is specifically approved by the Board of Trustees. This agreement may be
modified or amended only with approval from the Investment Manager, certain of its affiliates and the Fund. Any fees waived and/or expenses reimbursed under the expense reimbursement arrangements described above are
not recoverable by the Investment Manager or its affiliates in future periods.
Note 4. Federal tax
information
The timing and character of
income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.
| 34 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
At January 31, 2022, 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 ($) |
| 72,417,000 | 2,475,000 | (875,000) | 1,600,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
The following capital loss
carryforwards, determined at July 31, 2021, may be available to reduce future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code.
| No expiration short-term ($) | No expiration long-term ($) | Total ($) |
| (16,953) | — | (16,953) |
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 $4,650,111 and $1,894,987, respectively, for the six months ended January 31, 2022. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended January 31, 2022.
Note 7. Line of credit
The Fund has access to a
revolving credit facility with a syndicate of banks led by JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for
other temporary or emergency purposes. Pursuant to an October 28, 2021 amendment and restatement, 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 $950 million. Interest is currently charged to each participating fund based on its borrowings at a rate
equal to the higher of (i) the federal funds effective rate, (ii) the secured overnight financing rate plus 0.11448% and (iii) the overnight bank funding rate, plus in each case, 1.00%. Each borrowing under the credit
facility matures no later than 60 days after the date of borrowing. The Fund also pays a commitment fee equal to its pro rata share of the unused amount of the credit facility at a rate of 0.15% per annum. The
commitment fee is included in other expenses in the Statement of Operations. This agreement expires annually in October unless extended or renewed. Prior to the October 28, 2021 amendment and restatement, the Fund had
access to a revolving
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 35 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
credit facility with a syndicate of banks led by
JPMorgan Chase Bank, N.A., Citibank, N.A. and Wells Fargo Bank, N.A. which permitted collective borrowings up to $950 million. Interest was charged to each participating fund based on its borrowings at a rate equal to
the higher of (i) the federal funds effective rate, (ii) the one-month London Interbank Offered Rate (LIBOR) rate and (iii) the overnight bank funding rate, plus in each case, 1.25%.
The Fund had no borrowings during
the six months ended January 31, 2022.
Note 8. Significant
risks
Credit risk
Credit risk is the risk that the
value of debt instruments in the Fund’s portfolio may decline because the issuer defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations,
such as making payments to the Fund when due. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. Lower-rated or unrated debt instruments held by the Fund may
present increased credit risk as compared to higher-rated debt instruments.
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise.
Actions by governments and central banking authorities can result in increases or decreases in interest rates. Higher periods of inflation could lead such authorities to raise interest rates. Increasing interest rates
may negatively affect the value of debt securities held by the Fund, resulting in a negative impact on the Fund’s performance and net asset value per share. In general, the longer the maturity or duration of a
debt security, the greater its sensitivity to changes in interest rates. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation.
Liquidity risk
Liquidity risk is the risk
associated with a lack of marketability of investments which may make it difficult to sell the investment at a desirable time or price. Changing regulatory, market or other conditions or environments (for example, the
interest rate or credit environments) may adversely affect the liquidity of the Fund’s investments. The Fund may have to accept a lower selling price for the holding, sell other investments, or forego another,
more appealing investment opportunity. Generally, the less liquid the market at the time the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can
lead to an increase in Fund redemptions, which may negatively impact Fund performance and net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market risk
The Fund may incur losses due to
declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers,
which could adversely affect the Fund, 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 large-scale invasion of Ukraine
by Russia in February 2022 has resulted in sanctions and market disruptions, including declines in regional and global stock and commodity markets and significant devaluations of Russian currency. The extent and
duration of the military action are impossible to predict but could be significant. Market disruption caused by the Russian military action, and any counter measures or responses thereto (including international
sanctions, a downgrade in the
| 36 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
country’s credit rating, purchasing and
financing restrictions, boycotts, tariffs, changes in consumer or purchaser preferences, cyberattacks and espionage) could have a severe adverse impact on regional and/or global securities and commodities markets,
including markets for oil and natural gas. These and other related events could have a negative impact on Fund performance and the value of an investment in the Fund.
The pandemic caused by coronavirus
disease 2019 and its variants (COVID-19) has resulted in, and may continue to result in, significant global economic and societal disruption and market volatility due to disruptions in market access, resource
availability, facilities operations, imposition of tariffs, export controls and supply chain disruption, among others. Such disruptions may be caused, or exacerbated by, quarantines and travel restrictions, workforce
displacement and loss in human and other resources. The uncertainty surrounding the magnitude, duration, reach, costs and effects of the global pandemic, as well as actions that have been or could be taken by
governmental authorities or other third parties, present unknowns that are yet to unfold. The impacts, as well as the uncertainty over impacts to come, of COVID-19 – and any other infectious illness outbreaks,
epidemics and pandemics that may arise in the future – could negatively affect global economies and markets in ways that cannot necessarily be foreseen. In addition, the impact of infectious illness outbreaks
and epidemics in emerging market countries may be greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate
other pre-existing political, social and economic risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner
and negatively impact the Fund’s ability to achieve its investment objectives. Any such event(s) could have a significant adverse impact on the value and risk profile of the Fund.
Municipal securities risk
Municipal securities are debt
obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of
the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The
value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing
authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such
as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. Because many municipal securities are issued to finance projects in sectors
such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market.
Issuers in a state, territory,
commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as
economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers
which in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund’s shares will be
negatively impacted to the extent it invests in such securities. The Fund’s annual and semiannual reports show the Fund’s investment exposures at a point in time. The risk of investing in the Fund is
directly correlated to the Fund’s investment exposures.
Securities issued by a particular
state and its instrumentalities are subject to the risk of unfavorable developments in such state. A municipal security can be significantly affected by adverse tax, legislative, regulatory, demographic or political
changes as well as changes in a particular state’s (state and its instrumentalities’) financial, economic or other condition and prospects.
Shareholder concentration risk
At January 31, 2022, three
unaffiliated shareholders of record owned 44.3% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated
shareholders of record owned 26.2% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the
Fund. In the case of a
| Columbia U.S. Social Bond Fund | Semiannual Report 2022 | 37 |
Notes to Financial Statements (continued)
January 31, 2022 (Unaudited)
January 31, 2022 (Unaudited)
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.
Social impact risk
The Investment Manager’s
consideration of social impact may limit the Fund’s investment opportunities and, as a result, the Fund may underperform funds that do not consider social impact or consider it but make different investment
decisions based thereon.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in
connection with the conduct of their business activities. Ameriprise Financial believes that the Fund is not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject
of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with
the Fund. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to
Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.
There can be no assurance that
these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Fund. Further, although we believe
proceedings are not likely to have a material adverse effect on the Fund or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Fund, these proceedings are subject to
uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines,
penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial or one or more of its affiliates that provides services to
the Fund.
| 38 | Columbia U.S. Social Bond Fund | Semiannual Report 2022 |
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.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR262_07_M01_(03/22)