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: October 31
Date of reporting period: April 30, 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
Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia 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 Intermediate Municipal Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks current income exempt from federal income tax, consistent with preservation of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2012
Douglas Rangel, CFA
Co-Portfolio Manager
Managed Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the
Fund.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| 4 | Columbia 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 936.10 | 1,021.89 | 2.94 | 3.07 | 0.61 |
| Advisor Class | 1,000.00 | 1,000.00 | 937.00 | 1,022.89 | 1.98 | 2.07 | 0.41 |
| Class C | 1,000.00 | 1,000.00 | 933.30 | 1,018.90 | 5.83 | 6.09 | 1.21 |
| Institutional Class | 1,000.00 | 1,000.00 | 937.10 | 1,022.89 | 1.98 | 2.07 | 0.41 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 936.40 | 1,023.29 | 1.59 | 1.66 | 0.33 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 937.70 | 1,023.54 | 1.35 | 1.41 | 0.28 |
| Class V | 1,000.00 | 1,000.00 | 936.40 | 1,022.14 | 2.70 | 2.82 | 0.56 |
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 Intermediate Municipal Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
April 30, 2022 (Unaudited)
April 30, 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 Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 15 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 17 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 19 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 21 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 22 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 23 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 24 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 25 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 26 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 27 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 28 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 29 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 30 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 31 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 2022, the total value of these securities amounted to $46,233,815, which represents 2.39% of total net assets. |
| (b) | Income from this security may be subject to alternative minimum tax. |
| (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 April 30, 2022. |
| (e) | Variable rate security. The interest rate shown was the current rate as of April 30, 2022. |
| (f) | Zero coupon bond. |
| (g) | 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 April 30, 2022. |
| (h) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At April 30, 2022, the total value of these securities amounted to $1,761,905, which represents 0.09% of total net assets. |
| (i) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2022, the total value of these securities amounted to $5,977,179, which represents 0.31% of total net assets. |
| (j) | Represents a variable rate security where the coupon adjusts periodically through an auction process. |
| (k) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| FGIC | Financial Guaranty Insurance Corporation |
| GNMA | Government National Mortgage Association |
| HUD | Department of Housing and Urban Development |
| LIBOR | London Interbank Offered Rate |
| NPFGC | National Public Finance Guarantee Corporation |
| SOFR | Secured Overnight Financing Rate |
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.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 32 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Fair value measurements (continued)
Fair value inputs are summarized in the three broad levels listed below:
Fair value inputs are summarized in the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Floating Rate Notes | — | 6,200,000 | — | 6,200,000 |
| Municipal Bonds | — | 1,898,017,866 | — | 1,898,017,866 |
| Money Market Funds | 5,229,174 | — | — | 5,229,174 |
| Total Investments in Securities | 5,229,174 | 1,904,217,866 | — | 1,909,447,040 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 33 |
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $1,894,455,302) | $1,909,447,040 |
| Receivable for: | |
| Investments sold | 13,797,800 |
| Capital shares sold | 5,031,870 |
| Interest | 24,662,905 |
| Expense reimbursement due from Investment Manager | 11,287 |
| Prepaid expenses | 9,874 |
| Trustees’ deferred compensation plan | 359,231 |
| Other assets | 83,627 |
| Total assets | 1,953,403,634 |
| Liabilities | |
| Due to custodian | 2,816 |
| Payable for: | |
| Capital shares purchased | 9,221,478 |
| Distributions to shareholders | 4,953,552 |
| Management services fees | 24,588 |
| Distribution and/or service fees | 3,102 |
| Transfer agent fees | 282,352 |
| Compensation of board members | 348,852 |
| Other expenses | 44,633 |
| Trustees’ deferred compensation plan | 359,231 |
| Total liabilities | 15,240,604 |
| Net assets applicable to outstanding capital stock | $1,938,163,030 |
| Represented by | |
| Paid in capital | 1,925,219,473 |
| Total distributable earnings (loss) | 12,943,557 |
| Total - representing net assets applicable to outstanding capital stock | $1,938,163,030 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 34 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Class A | |
| Net assets | $501,262,789 |
| Shares outstanding | 52,016,629 |
| Net asset value per share | $9.64 |
| 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) | $9.94 |
| Advisor Class | |
| Net assets | $427,703,333 |
| Shares outstanding | 44,409,562 |
| Net asset value per share | $9.63 |
| Class C | |
| Net assets | $14,405,053 |
| Shares outstanding | 1,494,655 |
| Net asset value per share | $9.64 |
| Institutional Class | |
| Net assets | $704,971,796 |
| Shares outstanding | 73,120,945 |
| Net asset value per share | $9.64 |
| Institutional 2 Class | |
| Net assets | $276,024,708 |
| Shares outstanding | 28,682,523 |
| Net asset value per share | $9.62 |
| Institutional 3 Class | |
| Net assets | $4,269,750 |
| Shares outstanding | 442,486 |
| Net asset value per share | $9.65 |
| Class V | |
| Net assets | $9,525,601 |
| Shares outstanding | 988,494 |
| Net asset value per share | $9.64 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.12 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 35 |
Statement of Operations
Six Months Ended April 30, 2022 (Unaudited)
Six Months Ended April 30, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $1,119 |
| Interest | 32,706,876 |
| Total income | 32,707,995 |
| Expenses: | |
| Management services fees | 4,581,790 |
| Distribution and/or service fees | |
| Class A | 457,681 |
| Class C | 63,732 |
| Class V | 7,634 |
| Transfer agent fees | |
| Class A | 323,134 |
| Advisor Class | 369,105 |
| Class C | 10,986 |
| Institutional Class | 557,314 |
| Institutional 2 Class | 53,553 |
| Institutional 3 Class | 154 |
| Class V | 7,025 |
| Compensation of board members | 28,446 |
| Custodian fees | 8,434 |
| Printing and postage fees | 14,841 |
| Registration fees | 130,269 |
| Audit fees | 14,691 |
| Legal fees | 13,667 |
| Compensation of chief compliance officer | 181 |
| Other | 13,547 |
| Total expenses | 6,656,184 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (2,109,765) |
| Total net expenses | 4,546,419 |
| Net investment income | 28,161,576 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (3,213,220) |
| Net realized loss | (3,213,220) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (177,008,608) |
| Net change in unrealized appreciation (depreciation) | (177,008,608) |
| Net realized and unrealized loss | (180,221,828) |
| Net decrease in net assets resulting from operations | $(152,060,252) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 36 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
| Operations | ||
| Net investment income | $28,161,576 | $30,001,179 |
| Net realized gain (loss) | (3,213,220) | 2,478,782 |
| Net change in unrealized appreciation (depreciation) | (177,008,608) | (1,306,017) |
| Net increase (decrease) in net assets resulting from operations | (152,060,252) | 31,173,944 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (6,542,017) | (5,097,345) |
| Advisor Class | (7,414,305) | (211,361) |
| Class C | (202,009) | (474,038) |
| Institutional Class | (13,429,140) | (28,632,229) |
| Institutional 2 Class | (2,869,165) | (943,115) |
| Institutional 3 Class | (63,434) | (92,953) |
| Class V | (161,679) | (330,141) |
| Total distributions to shareholders | (30,681,749) | (35,781,182) |
| Increase (decrease) in net assets from capital stock activity | 1,043,510,907 | (46,659,482) |
| Total increase (decrease) in net assets | 860,768,906 | (51,266,720) |
| Net assets at beginning of period | 1,077,394,124 | 1,128,660,844 |
| Net assets at end of period | $1,938,163,030 | $1,077,394,124 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 37 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2022 (Unaudited) | October 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 4,616,788 | 46,019,233 | 3,590,256 | 38,025,004 |
| Fund reorganization | 40,018,544 | 418,942,544 | — | — |
| Distributions reinvested | 609,905 | 6,151,879 | 418,945 | 4,428,423 |
| Redemptions | (9,617,198) | (97,162,009) | (2,552,880) | (26,990,697) |
| Net increase | 35,628,039 | 373,951,647 | 1,456,321 | 15,462,730 |
| Advisor Class | ||||
| Subscriptions | 3,837,106 | 38,496,540 | 144,951 | 1,536,076 |
| Fund reorganization | 104,285,243 | 1,091,126,562 | — | — |
| Distributions reinvested | 470,326 | 4,764,512 | 19,977 | 211,036 |
| Redemptions | (64,815,915) | (664,178,317) | (127,353) | (1,343,291) |
| Net increase | 43,776,760 | 470,209,297 | 37,575 | 403,821 |
| Class C | ||||
| Subscriptions | 102,577 | 1,043,020 | 387,986 | 4,106,394 |
| Distributions reinvested | 19,507 | 198,771 | 43,653 | 461,575 |
| Redemptions | (229,049) | (2,319,615) | (873,307) | (9,252,987) |
| Net decrease | (106,965) | (1,077,824) | (441,668) | (4,685,018) |
| Institutional Class | ||||
| Subscriptions | 9,609,576 | 97,603,350 | 5,497,647 | 58,228,372 |
| Distributions reinvested | 300,817 | 3,058,463 | 531,186 | 5,617,499 |
| Redemptions | (17,422,621) | (174,859,511) | (11,089,869) | (117,227,760) |
| Net decrease | (7,512,228) | (74,197,698) | (5,061,036) | (53,381,889) |
| Institutional 2 Class | ||||
| Subscriptions | 31,726,308 | 327,702,969 | 130,766 | 1,382,805 |
| Distributions reinvested | 288,490 | 2,868,404 | 89,315 | 943,115 |
| Redemptions | (5,773,245) | (57,535,860) | (643,990) | (6,819,315) |
| Net increase (decrease) | 26,241,553 | 273,035,513 | (423,909) | (4,493,395) |
| Institutional 3 Class | ||||
| Subscriptions | 240,810 | 2,444,610 | 97,746 | 1,036,989 |
| Distributions reinvested | 5,169 | 52,387 | 6,662 | 70,519 |
| Redemptions | (80,067) | (798,956) | (64,961) | (685,910) |
| Net increase | 165,912 | 1,698,041 | 39,447 | 421,598 |
| Class V | ||||
| Subscriptions | 1,944 | 19,868 | 8,149 | 86,535 |
| Distributions reinvested | 11,993 | 122,065 | 23,602 | 249,503 |
| Redemptions | (25,125) | (250,002) | (68,390) | (723,367) |
| Net decrease | (11,188) | (108,069) | (36,639) | (387,329) |
| Total net increase (decrease) | 98,181,883 | 1,043,510,907 | (4,429,909) | (46,659,482) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 38 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
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| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 39 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.46 | 0.14 | (0.80) | (0.66) | (0.14) | (0.02) | (0.16) |
| Year Ended 10/31/2021 | $10.51 | 0.27 | 0.00(d) | 0.27 | (0.27) | (0.05) | (0.32) |
| Year Ended 10/31/2020 | $10.59 | 0.28 | (0.03) | 0.25 | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2019 | $10.11 | 0.31 | 0.48 | 0.79 | (0.31) | (0.00)(d) | (0.31) |
| Year Ended 10/31/2018 | $10.54 | 0.31 | (0.43) | (0.12) | (0.31) | — | (0.31) |
| Year Ended 10/31/2017 | $10.71 | 0.31 | (0.17) | 0.14 | (0.31) | — | (0.31) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.45 | 0.15 | (0.80) | (0.65) | (0.15) | (0.02) | (0.17) |
| Year Ended 10/31/2021 | $10.50 | 0.29 | 0.00(d) | 0.29 | (0.29) | (0.05) | (0.34) |
| Year Ended 10/31/2020 | $10.59 | 0.30 | (0.04) | 0.26 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2019 | $10.11 | 0.33 | 0.48 | 0.81 | (0.33) | (0.00)(d) | (0.33) |
| Year Ended 10/31/2018 | $10.53 | 0.33 | (0.42) | (0.09) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.71 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.46 | 0.10 | (0.79) | (0.69) | (0.11) | (0.02) | (0.13) |
| Year Ended 10/31/2021 | $10.51 | 0.21 | 0.00(d) | 0.21 | (0.21) | (0.05) | (0.26) |
| Year Ended 10/31/2020 | $10.59 | 0.21 | (0.03) | 0.18 | (0.22) | (0.04) | (0.26) |
| Year Ended 10/31/2019 | $10.12 | 0.24 | 0.48 | 0.72 | (0.25) | (0.00)(d) | (0.25) |
| Year Ended 10/31/2018 | $10.54 | 0.24 | (0.42) | (0.18) | (0.24) | — | (0.24) |
| Year Ended 10/31/2017 | $10.72 | 0.25 | (0.19) | 0.06 | (0.24) | — | (0.24) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.46 | 0.15 | (0.80) | (0.65) | (0.15) | (0.02) | (0.17) |
| Year Ended 10/31/2021 | $10.51 | 0.29 | 0.00(d) | 0.29 | (0.29) | (0.05) | (0.34) |
| Year Ended 10/31/2020 | $10.60 | 0.30 | (0.04) | 0.26 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2019 | $10.12 | 0.33 | 0.48 | 0.81 | (0.33) | (0.00)(d) | (0.33) |
| Year Ended 10/31/2018 | $10.54 | 0.33 | (0.42) | (0.09) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.72 | 0.33 | (0.18) | 0.15 | (0.33) | — | (0.33) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.45 | 0.15 | (0.81) | (0.66) | (0.15) | (0.02) | (0.17) |
| Year Ended 10/31/2021 | $10.49 | 0.30 | 0.01 | 0.31 | (0.30) | (0.05) | (0.35) |
| Year Ended 10/31/2020 | $10.58 | 0.31 | (0.05) | 0.26 | (0.31) | (0.04) | (0.35) |
| Year Ended 10/31/2019 | $10.10 | 0.34 | 0.48 | 0.82 | (0.34) | (0.00)(d) | (0.34) |
| Year Ended 10/31/2018 | $10.53 | 0.34 | (0.44) | (0.10) | (0.33) | — | (0.33) |
| Year Ended 10/31/2017 | $10.70 | 0.34 | (0.17) | 0.17 | (0.34) | — | (0.34) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 40 | Columbia 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 4/30/2022 (Unaudited) | $9.64 | (6.39%) | 0.82%(c) | 0.61%(c) | 2.67%(c) | 3% | $501,263 |
| Year Ended 10/31/2021 | $10.46 | 2.61% | 0.83% | 0.70%(e) | 2.55% | 5% | $171,415 |
| Year Ended 10/31/2020 | $10.51 | 2.36% | 0.82% | 0.73%(e) | 2.70% | 9% | $156,865 |
| Year Ended 10/31/2019 | $10.59 | 7.94% | 0.82%(f) | 0.76%(e),(f) | 2.97% | 14% | $152,575 |
| Year Ended 10/31/2018 | $10.11 | (1.18%) | 0.81%(g) | 0.76%(e),(g) | 2.98% | 8% | $157,597 |
| Year Ended 10/31/2017 | $10.54 | 1.39% | 0.84%(h) | 0.77%(e),(h) | 2.99% | 11% | $189,260 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.63 | (6.30%) | 0.61%(c) | 0.41%(c) | 2.85%(c) | 3% | $427,703 |
| Year Ended 10/31/2021 | $10.45 | 2.81% | 0.63% | 0.50%(e) | 2.75% | 5% | $6,615 |
| Year Ended 10/31/2020 | $10.50 | 2.47% | 0.62% | 0.53%(e) | 2.90% | 9% | $6,249 |
| Year Ended 10/31/2019 | $10.59 | 8.15% | 0.62%(f) | 0.56%(e),(f) | 3.22% | 14% | $5,927 |
| Year Ended 10/31/2018 | $10.11 | (0.89%) | 0.61%(g) | 0.56%(e),(g) | 3.18% | 8% | $20,349 |
| Year Ended 10/31/2017 | $10.53 | 1.50% | 0.63% | 0.58%(e) | 3.16% | 11% | $17,306 |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.64 | (6.67%) | 1.42%(c) | 1.21%(c) | 2.06%(c) | 3% | $14,405 |
| Year Ended 10/31/2021 | $10.46 | 1.99% | 1.47% | 1.30%(e) | 1.94% | 5% | $16,754 |
| Year Ended 10/31/2020 | $10.51 | 1.71% | 1.47% | 1.38%(e) | 2.06% | 9% | $21,469 |
| Year Ended 10/31/2019 | $10.59 | 7.14% | 1.47%(f) | 1.41%(e),(f) | 2.33% | 14% | $23,522 |
| Year Ended 10/31/2018 | $10.12 | (1.72%) | 1.46%(g) | 1.41%(e),(g) | 2.32% | 8% | $29,097 |
| Year Ended 10/31/2017 | $10.54 | 0.64% | 1.49%(h) | 1.42%(e),(h) | 2.34% | 11% | $44,951 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.64 | (6.29%) | 0.62%(c) | 0.41%(c) | 2.86%(c) | 3% | $704,972 |
| Year Ended 10/31/2021 | $10.46 | 2.81% | 0.63% | 0.50%(e) | 2.75% | 5% | $843,761 |
| Year Ended 10/31/2020 | $10.51 | 2.47% | 0.62% | 0.53%(e) | 2.90% | 9% | $900,641 |
| Year Ended 10/31/2019 | $10.60 | 8.15% | 0.62%(f) | 0.56%(e),(f) | 3.17% | 14% | $1,012,229 |
| Year Ended 10/31/2018 | $10.12 | (0.88%) | 0.61%(g) | 0.56%(e),(g) | 3.17% | 8% | $1,232,944 |
| Year Ended 10/31/2017 | $10.54 | 1.50% | 0.63%(h) | 0.57%(e),(h) | 3.18% | 11% | $1,679,211 |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.62 | (6.36%) | 0.55%(c) | 0.33%(c) | 2.98%(c) | 3% | $276,025 |
| Year Ended 10/31/2021 | $10.45 | 2.98% | 0.56% | 0.44% | 2.81% | 5% | $25,496 |
| Year Ended 10/31/2020 | $10.49 | 2.54% | 0.55% | 0.47% | 2.98% | 9% | $30,056 |
| Year Ended 10/31/2019 | $10.58 | 8.24% | 0.55%(f) | 0.49%(f) | 3.21% | 14% | $35,836 |
| Year Ended 10/31/2018 | $10.10 | (0.92%) | 0.55%(g) | 0.50%(g) | 3.25% | 8% | $15,697 |
| Year Ended 10/31/2017 | $10.53 | 1.67% | 0.54%(h) | 0.50%(h) | 3.26% | 11% | $12,401 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 41 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.47 | 0.15 | (0.79) | (0.64) | (0.16) | (0.02) | (0.18) |
| Year Ended 10/31/2021 | $10.52 | 0.30 | 0.01 | 0.31 | (0.31) | (0.05) | (0.36) |
| Year Ended 10/31/2020 | $10.61 | 0.32 | (0.05) | 0.27 | (0.32) | (0.04) | (0.36) |
| Year Ended 10/31/2019 | $10.13 | 0.34 | 0.49 | 0.83 | (0.35) | (0.00)(d) | (0.35) |
| Year Ended 10/31/2018 | $10.55 | 0.34 | (0.42) | (0.08) | (0.34) | — | (0.34) |
| Year Ended 10/31/2017(i) | $10.43 | 0.22 | 0.13(j) | 0.35 | (0.23) | — | (0.23) |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.46 | 0.14 | (0.80) | (0.66) | (0.14) | (0.02) | (0.16) |
| Year Ended 10/31/2021 | $10.50 | 0.27 | 0.02 | 0.29 | (0.28) | (0.05) | (0.33) |
| Year Ended 10/31/2020 | $10.59 | 0.29 | (0.05) | 0.24 | (0.29) | (0.04) | (0.33) |
| Year Ended 10/31/2019 | $10.11 | 0.32 | 0.48 | 0.80 | (0.32) | (0.00)(d) | (0.32) |
| Year Ended 10/31/2018 | $10.54 | 0.31 | (0.43) | (0.12) | (0.31) | — | (0.31) |
| Year Ended 10/31/2017 | $10.71 | 0.32 | (0.17) | 0.15 | (0.32) | — | (0.32) |
| 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) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (f) | Ratios include line of credit interest expense which is less than 0.01%. |
| (g) | Ratios include interfund lending expense which is less than 0.01%. |
| (h) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Class C | Institutional Class | Institutional 2 Class | Class V |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (i) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (j) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 42 | Columbia 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 4/30/2022 (Unaudited) | $9.65 | (6.23%) | 0.50%(c) | 0.28%(c) | 3.00%(c) | 3% | $4,270 |
| Year Ended 10/31/2021 | $10.47 | 2.93% | 0.52% | 0.39% | 2.86% | 5% | $2,897 |
| Year Ended 10/31/2020 | $10.52 | 2.59% | 0.51% | 0.42% | 3.01% | 9% | $2,495 |
| Year Ended 10/31/2019 | $10.61 | 8.27% | 0.51%(f) | 0.44%(f) | 3.28% | 14% | $2,542 |
| Year Ended 10/31/2018 | $10.13 | (0.76%) | 0.50%(g) | 0.45%(g) | 3.31% | 8% | $1,836 |
| Year Ended 10/31/2017(i) | $10.55 | 3.35% | 0.51%(c) | 0.47%(c) | 3.25%(c) | 11% | $1,865 |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.64 | (6.36%) | 0.77%(c) | 0.56%(c) | 2.71%(c) | 3% | $9,526 |
| Year Ended 10/31/2021 | $10.46 | 2.76% | 0.78% | 0.65%(e) | 2.60% | 5% | $10,456 |
| Year Ended 10/31/2020 | $10.50 | 2.31% | 0.77% | 0.68%(e) | 2.75% | 9% | $10,887 |
| Year Ended 10/31/2019 | $10.59 | 7.99% | 0.77%(f) | 0.71%(e),(f) | 3.02% | 14% | $11,562 |
| Year Ended 10/31/2018 | $10.11 | (1.13%) | 0.76%(g) | 0.71%(e),(g) | 3.03% | 8% | $12,260 |
| Year Ended 10/31/2017 | $10.54 | 1.44% | 0.79%(h) | 0.72%(e),(h) | 3.03% | 11% | $13,371 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 43 |
Notes to Financial Statements
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 1. Organization
Columbia Intermediate Municipal
Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized 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.
| 44 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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.
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.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 45 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 0.48% to 0.29% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2022 was 0.46% of the
Fund’s average daily net assets.
Compensation of board members
Members of the Board of Trustees
who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Fund as disclosed in the Statement of Operations. 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" in 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 April 30,
2022, the Fund engaged in cross-trades as follows:
| Purchases ($) | Sales ($) | Net realized gain (loss) ($) |
| — | 18,355,903 | 520,097 |
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.
| 46 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended April 30,
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 | 0.14 |
| Advisor Class | 0.14 |
| Class C | 0.14 |
| Institutional Class | 0.14 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class V | 0.14 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 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.
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 0.60% of the average daily net assets attributable to Class C shares of the Fund.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to
an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 33,042 |
| Class C | — | 1.00(b) | 546 |
| Class V | 4.75 | 0.50 - 1.00(c) | 201 |
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 47 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| December 11, 2021 through February 29, 2024 | Prior to December 11, 2021 | |
| Class A | 0.61% | 0.61% |
| Advisor Class | 0.41 | 0.41 |
| Class C | 1.21 | 1.21 |
| Institutional Class | 0.41 | 0.41 |
| Institutional 2 Class | 0.33 | 0.35 |
| Institutional 3 Class | 0.28 | 0.30 |
| Class V | 0.56 | 0.56 |
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 April 30, 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 ($) |
| 1,894,455,000 | 39,071,000 | (24,079,000) | 14,992,000 |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
| 48 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $55,017,695 and $452,275,558, respectively, for the six months ended April 30, 2022. The amount of purchase
and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Transactions to realign the
portfolio for the Fund following the reorganization as described in Note 8 are excluded for purposes of calculating the Fund’s portfolio turnover rate. These realignment transactions amounted to cost
of purchases and proceeds from sales of $0 and $39,173,088, respectively, for the six months ended April 30, 2022.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund did not borrow or lend
money under the Interfund Program during the six months ended April 30, 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 an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate 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 April 30, 2022.
Note 8. Fund
reorganization
At the close of business on
December 10, 2021, the Fund acquired the assets and assumed the identified liabilities of BMO Intermediate Tax-Free Fund (the Acquired Fund), a series of BMO Funds, Inc. The reorganization was completed after
shareholders of the Acquired Fund approved a plan of reorganization at a shareholder meeting held on November 23, 2021. The purpose of the reorganization was to combine two funds with comparable investment objectives
and strategies.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 49 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The aggregate net assets of the
Fund immediately before the reorganization were $1,074,755,495 and the combined net assets immediately after the reorganization were $2,584,824,601.
The reorganization was accomplished
by a tax-free exchange of 130,446,790 shares of the Acquired Fund valued at $1,510,069,106 (including $116,128,348 of unrealized appreciation/(depreciation)).
In exchange for the Acquired
Fund’s shares, the Fund issued the following number of shares:
| Shares | |
| Class A | 40,018,544 |
| Advisor Class | 104,285,243 |
For financial reporting purposes,
net assets received and shares issued by the Fund were recorded at fair value; however, the Acquired Fund’s cost of investments was carried forward.
The Fund’s financial
statements reflect both the operations of the Fund for the period prior to the reorganization and the combined Fund for the period subsequent to the reorganization. Because the combined investment portfolios have been
managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in the combined
Fund’s Statement of Operations since the reorganization was completed.
Assuming the reorganization had
been completed on November 1, 2021, the Fund’s pro-forma results of operations for the six months ended April 30, 2022 would have been approximately:
| ($) | |
| Net investment income | 32,869,000 |
| Net realized loss | (1,341,000) |
| Net change in unrealized appreciation/(depreciation) | (173,821,000) |
| Net decrease in net assets from operations | (142,293,000) |
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.
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.
| 50 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Generally, the less liquid the market at the time
the Fund sells a portfolio investment, the greater the risk of loss or decline of value to the Fund. A less liquid market can lead to an increase in Fund redemptions, which may negatively impact Fund performance and
net asset value per share, including, for example, if the Fund is forced to sell securities in a down market.
Market 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’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause 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 severe
adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further
disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact
Fund performance.
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 objective. Any such events 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,
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 51 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 April 30, 2022, four
unaffiliated shareholders of record owned 77.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. 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 are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of its activities as a diversified financial services firm. 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.
| 52 | Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Liquidity Risk
Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity
risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board
meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021,
through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| Columbia Intermediate Municipal Bond Fund | Semiannual Report 2022 | 53 |
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/
SAR167_10_M01_(06/22)
Columbia Strategic
California Municipal Income Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Strategic California Municipal Income 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 Strategic California Municipal Income
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, with a focus on income exempt from federal income tax and California individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA*
Portfolio Manager
Managed Fund since 2016
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Portfolio Manager of the Fund.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2022) | |
| AAA rating | 3.0 |
| AA rating | 27.6 |
| A rating | 23.6 |
| BBB rating | 17.0 |
| BB rating | 1.3 |
| D rating | 1.6 |
| Not rated | 25.9 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. 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 Strategic California Municipal Income 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 896.90 | 1,021.24 | 3.50 | 3.73 | 0.74 |
| Advisor Class | 1,000.00 | 1,000.00 | 897.60 | 1,022.24 | 2.55 | 2.72 | 0.54 |
| Class C | 1,000.00 | 1,000.00 | 894.70 | 1,018.75 | 5.86 | 6.24 | 1.24 |
| Institutional Class | 1,000.00 | 1,000.00 | 897.90 | 1,022.24 | 2.56 | 2.72 | 0.54 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 897.80 | 1,022.34 | 2.46 | 2.62 | 0.52 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 897.80 | 1,022.59 | 2.22 | 2.37 | 0.47 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 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 Strategic California Municipal Income Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
April 30, 2022 (Unaudited)
April 30, 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 Strategic California Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 12 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 14 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 15 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Money Market Funds 1.6% | ||
| Shares | Value ($) | |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(j) | 262,882 | 262,855 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(j) | 8,569,003 | 8,569,003 |
| Total Money Market Funds (Cost $8,831,875) | 8,831,858 | |
| Total Investments in Securities (Cost: $613,518,161) | 574,351,658 | |
| Other Assets & Liabilities, Net | (17,515,924) | |
| Net Assets | 556,835,734 | |
At April 30, 2022, securities and/or
cash totaling $857,199 were pledged as collateral.
Investments in derivatives
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 10-Year Note | (458) | 06/2022 | USD | (54,573,562) | 1,326,929 | — |
Notes to Portfolio of
Investments
| (a) | The Fund is entitled to receive principal and interest from the guarantor after a day or a week’s notice or upon maturity. The maturity date disclosed represents the final maturity. |
| (b) | Represents a variable rate security where the coupon rate adjusts on specified dates (generally daily or weekly) using the prevailing money market rate. The interest rate shown was the current rate as of April 30, 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 April 30, 2022, the total value of these securities amounted to $88,665,301, which represents 15.92% of total net assets. |
| (e) | Zero coupon bond. |
| (f) | Represents a security purchased on a when-issued basis. |
| (g) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2022, the total value of these securities amounted to $33,648,554, which represents 6.04% of total net assets. |
| (h) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At April 30, 2022, the total value of these securities amounted to $11,361,050, which represents 2.04% of total net assets. |
| (i) | Inverse floating rate security issued by a tender option bond (TOB) trust, the interest rate on which varies inversely with the Securities Industry Financial Markets Association (SIFMA) short-term rate, which resets weekly, or a similar short-term rate, and is reduced by the expenses related to the TOB trust. The interest rate shown was the current rate as of April 30, 2022. |
| (j) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| ACA | ACA Financial Guaranty Corporation |
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| FHLMC | Federal Home Loan Mortgage Corporation |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Commercial Mortgage-Backed Securities - Agency | — | 2,062,182 | — | 2,062,182 |
| Floating Rate Notes | — | 100,000 | — | 100,000 |
| Municipal Bonds | — | 563,357,618 | — | 563,357,618 |
| Money Market Funds | 8,831,858 | — | — | 8,831,858 |
| Total Investments in Securities | 8,831,858 | 565,519,800 | — | 574,351,658 |
| Investments in Derivatives | ||||
| Asset | ||||
| Futures Contracts | 1,326,929 | — | — | 1,326,929 |
| Total | 10,158,787 | 565,519,800 | — | 575,678,587 |
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 Strategic California Municipal Income Fund | Semiannual Report 2022 | 17 |
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $613,518,161) | $574,351,658 |
| Cash | 16,751 |
| Margin deposits on: | |
| Futures contracts | 857,199 |
| Receivable for: | |
| Investments sold | 14,330 |
| Capital shares sold | 2,486,138 |
| Interest | 6,361,011 |
| Variation margin for futures contracts | 93,031 |
| Expense reimbursement due from Investment Manager | 376 |
| Prepaid expenses | 5,585 |
| Trustees’ deferred compensation plan | 133,712 |
| Total assets | 584,319,791 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 15,507,148 |
| Capital shares purchased | 10,214,268 |
| Distributions to shareholders | 1,511,150 |
| Management services fees | 7,141 |
| Distribution and/or service fees | 1,924 |
| Transfer agent fees | 43,989 |
| Compensation of board members | 42,567 |
| Other expenses | 22,158 |
| Trustees’ deferred compensation plan | 133,712 |
| Total liabilities | 27,484,057 |
| Net assets applicable to outstanding capital stock | $556,835,734 |
| Represented by | |
| Paid in capital | 600,743,289 |
| Total distributable earnings (loss) | (43,907,555) |
| Total - representing net assets applicable to outstanding capital stock | $556,835,734 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Class A | |
| Net assets | $291,639,436 |
| Shares outstanding | 10,625,459 |
| Net asset value per share | $27.45 |
| 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) | $28.30 |
| Advisor Class | |
| Net assets | $6,153,023 |
| Shares outstanding | 223,995 |
| Net asset value per share | $27.47 |
| Class C | |
| Net assets | $16,298,098 |
| Shares outstanding | 593,784 |
| Net asset value per share | $27.45 |
| Institutional Class | |
| Net assets | $232,329,285 |
| Shares outstanding | 8,461,151 |
| Net asset value per share | $27.46 |
| Institutional 2 Class | |
| Net assets | $2,220,773 |
| Shares outstanding | 80,767 |
| Net asset value per share | $27.50 |
| Institutional 3 Class | |
| Net assets | $8,195,119 |
| Shares outstanding | 296,899 |
| Net asset value per share | $27.60 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 19 |
Statement of Operations
Six Months Ended April 30, 2022 (Unaudited)
Six Months Ended April 30, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $2,945 |
| Interest | 11,268,654 |
| Total income | 11,271,599 |
| Expenses: | |
| Management services fees | 1,562,889 |
| Distribution and/or service fees | |
| Class A | 390,586 |
| Class C | 85,743 |
| Transfer agent fees | |
| Class A | 125,413 |
| Advisor Class | 2,231 |
| Class C | 7,110 |
| Institutional Class | 120,978 |
| Institutional 2 Class | 776 |
| Institutional 3 Class | 334 |
| Compensation of board members | 12,929 |
| Custodian fees | 6,484 |
| Printing and postage fees | 10,549 |
| Registration fees | 9,043 |
| Audit fees | 14,629 |
| Legal fees | 8,139 |
| Interest on interfund lending | 1,071 |
| Compensation of chief compliance officer | 80 |
| Other | 8,867 |
| Total expenses | 2,367,851 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (46,334) |
| Fees waived by distributor | |
| Class A | (57,665) |
| Class C | (19,710) |
| Total net expenses | 2,244,142 |
| Net investment income | 9,027,457 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (2,121,451) |
| Futures contracts | (811,589) |
| Swap contracts | 55,000 |
| Net realized loss | (2,878,040) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (76,064,417) |
| Futures contracts | 1,307,001 |
| Net change in unrealized appreciation (depreciation) | (74,757,416) |
| Net realized and unrealized loss | (77,635,456) |
| Net decrease in net assets resulting from operations | $(68,607,999) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 20 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
| Operations | ||
| Net investment income | $9,027,457 | $16,662,541 |
| Net realized loss | (2,878,040) | (385,543) |
| Net change in unrealized appreciation (depreciation) | (74,757,416) | 6,159,439 |
| Net increase (decrease) in net assets resulting from operations | (68,607,999) | 22,436,437 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (5,115,101) | (9,312,102) |
| Advisor Class | (96,960) | (166,820) |
| Class C | (242,784) | (504,032) |
| Institutional Class | (5,240,614) | (8,784,913) |
| Institutional 2 Class | (42,429) | (75,158) |
| Institutional 3 Class | (174,835) | (280,494) |
| Total distributions to shareholders | (10,912,723) | (19,123,519) |
| Increase (decrease) in net assets from capital stock activity | (113,493,268) | 117,508,991 |
| Total increase (decrease) in net assets | (193,013,990) | 120,821,909 |
| Net assets at beginning of period | 749,849,724 | 629,027,815 |
| Net assets at end of period | $556,835,734 | $749,849,724 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 21 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2022 (Unaudited) | October 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 502,818 | 15,128,103 | 1,669,589 | 52,579,109 |
| Distributions reinvested | 145,508 | 4,349,389 | 249,597 | 7,839,033 |
| Redemptions | (1,164,017) | (34,250,710) | (1,471,663) | (46,235,237) |
| Net increase (decrease) | (515,691) | (14,773,218) | 447,523 | 14,182,905 |
| Advisor Class | ||||
| Subscriptions | 71,055 | 2,023,539 | 152,743 | 4,820,360 |
| Distributions reinvested | 3,236 | 96,797 | 5,297 | 166,515 |
| Redemptions | (56,634) | (1,686,830) | (97,724) | (3,075,946) |
| Net increase | 17,657 | 433,506 | 60,316 | 1,910,929 |
| Class C | ||||
| Subscriptions | 56,844 | 1,698,287 | 80,679 | 2,533,992 |
| Distributions reinvested | 7,135 | 213,522 | 14,047 | 441,031 |
| Redemptions | (108,119) | (3,196,499) | (228,115) | (7,181,925) |
| Net decrease | (44,140) | (1,284,690) | (133,389) | (4,206,902) |
| Institutional Class | ||||
| Subscriptions | 1,195,333 | 36,151,115 | 4,891,749 | 154,009,974 |
| Distributions reinvested | 99,996 | 2,988,605 | 163,010 | 5,122,037 |
| Redemptions | (4,538,252) | (135,580,950) | (1,794,004) | (56,291,837) |
| Net increase (decrease) | (3,242,923) | (96,441,230) | 3,260,755 | 102,840,174 |
| Institutional 2 Class | ||||
| Subscriptions | 1,399 | 43,945 | 30,507 | 955,518 |
| Distributions reinvested | 1,412 | 42,274 | 2,379 | 74,866 |
| Redemptions | (10,847) | (322,244) | (17,998) | (566,540) |
| Net increase (decrease) | (8,036) | (236,025) | 14,888 | 463,844 |
| Institutional 3 Class | ||||
| Subscriptions | 90,560 | 2,697,989 | 121,159 | 3,832,501 |
| Distributions reinvested | 5,810 | 174,670 | 8,867 | 280,073 |
| Redemptions | (139,910) | (4,064,270) | (56,741) | (1,794,533) |
| Net increase (decrease) | (43,540) | (1,191,611) | 73,285 | 2,318,041 |
| Total net increase (decrease) | (3,836,673) | (113,493,268) | 3,723,378 | 117,508,991 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 22 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
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| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 23 |
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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $31.08 | 0.38 | (3.55) | (3.17) | (0.38) | (0.08) | (0.46) |
| Year Ended 10/31/2021 | $30.83 | 0.74 | 0.37 | 1.11 | (0.74) | (0.12) | (0.86) |
| Year Ended 10/31/2020 | $31.12 | 0.81 | 0.01(g) | 0.82 | (0.81) | (0.30) | (1.11) |
| Year Ended 10/31/2019 | $29.49 | 1.00 | 1.71 | 2.71 | (1.00) | (0.08) | (1.08) |
| Year Ended 10/31/2018 | $30.87 | 1.08 | (1.26) | (0.18) | (1.04) | (0.16) | (1.20) |
| Year Ended 10/31/2017 | $31.74 | 1.12 | (0.67) | 0.45 | (1.12) | (0.20) | (1.32) |
| Advisor Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $31.11 | 0.41 | (3.56) | (3.15) | (0.41) | (0.08) | (0.49) |
| Year Ended 10/31/2021 | $30.86 | 0.80 | 0.37 | 1.17 | (0.80) | (0.12) | (0.92) |
| Year Ended 10/31/2020 | $31.14 | 0.89 | 0.01(g) | 0.90 | (0.88) | (0.30) | (1.18) |
| Year Ended 10/31/2019 | $29.50 | 1.04 | 1.72 | 2.76 | (1.04) | (0.08) | (1.12) |
| Year Ended 10/31/2018 | $30.88 | 1.16 | (1.26) | (0.10) | (1.12) | (0.16) | (1.28) |
| Year Ended 10/31/2017 | $31.75 | 1.16 | (0.63) | 0.53 | (1.20) | (0.20) | (1.40) |
| Class C(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $31.08 | 0.31 | (3.55) | (3.24) | (0.31) | (0.08) | (0.39) |
| Year Ended 10/31/2021 | $30.83 | 0.58 | 0.37 | 0.95 | (0.58) | (0.12) | (0.70) |
| Year Ended 10/31/2020 | $31.12 | 0.67 | 0.01(g) | 0.68 | (0.67) | (0.30) | (0.97) |
| Year Ended 10/31/2019 | $29.49 | 0.84 | 1.71 | 2.55 | (0.84) | (0.08) | (0.92) |
| Year Ended 10/31/2018 | $30.87 | 0.92 | (1.22) | (0.30) | (0.92) | (0.16) | (1.08) |
| Year Ended 10/31/2017 | $31.75 | 0.96 | (0.68) | 0.28 | (0.96) | (0.20) | (1.16) |
| Institutional Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $31.09 | 0.41 | (3.55) | (3.14) | (0.41) | (0.08) | (0.49) |
| Year Ended 10/31/2021 | $30.85 | 0.80 | 0.36 | 1.16 | (0.80) | (0.12) | (0.92) |
| Year Ended 10/31/2020 | $31.13 | 0.88 | 0.02(g) | 0.90 | (0.88) | (0.30) | (1.18) |
| Year Ended 10/31/2019 | $29.50 | 1.08 | 1.67 | 2.75 | (1.04) | (0.08) | (1.12) |
| Year Ended 10/31/2018 | $30.88 | 1.12 | (1.22) | (0.10) | (1.12) | (0.16) | (1.28) |
| Year Ended 10/31/2017 | $31.76 | 1.20 | (0.68) | 0.52 | (1.20) | (0.20) | (1.40) |
| Institutional 2 Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $31.14 | 0.42 | (3.57) | (3.15) | (0.41) | (0.08) | (0.49) |
| Year Ended 10/31/2021 | $30.89 | 0.81 | 0.37 | 1.18 | (0.81) | (0.12) | (0.93) |
| Year Ended 10/31/2020 | $31.18 | 0.90 | 0.00(g),(j) | 0.90 | (0.89) | (0.30) | (1.19) |
| Year Ended 10/31/2019 | $29.54 | 1.00 | 1.80 | 2.80 | (1.08) | (0.08) | (1.16) |
| Year Ended 10/31/2018 | $30.92 | 1.16 | (1.22) | (0.06) | (1.16) | (0.16) | (1.32) |
| Year Ended 10/31/2017 | $31.80 | 1.20 | (0.68) | 0.52 | (1.20) | (0.20) | (1.40) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 24 | Columbia Strategic California Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $27.45 | (10.31%) | 0.78%(d),(e) | 0.74%(d),(e) | 2.55%(d) | 12% | $291,639 |
| Year Ended 10/31/2021 | $31.08 | 3.61% | 0.80% | 0.74%(f) | 2.35% | 14% | $346,280 |
| Year Ended 10/31/2020 | $30.83 | 2.69% | 0.81% | 0.78%(f) | 2.64% | 30% | $329,728 |
| Year Ended 10/31/2019 | $31.12 | 9.31% | 0.82%(e) | 0.80%(e),(f) | 3.26% | 37% | $347,854 |
| Year Ended 10/31/2018 | $29.49 | (0.62%) | 0.82% | 0.82%(f) | 3.52% | 13% | $323,725 |
| Year Ended 10/31/2017 | $30.87 | 1.49% | 0.82%(h) | 0.81%(f),(h) | 3.61% | 17% | $339,354 |
| Advisor Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $27.47 | (10.24%) | 0.55%(d),(e) | 0.54%(d),(e) | 2.75%(d) | 12% | $6,153 |
| Year Ended 10/31/2021 | $31.11 | 3.82% | 0.55% | 0.54%(f) | 2.55% | 14% | $6,418 |
| Year Ended 10/31/2020 | $30.86 | 3.03% | 0.56% | 0.54%(f) | 2.88% | 30% | $4,506 |
| Year Ended 10/31/2019 | $31.14 | 9.59% | 0.57%(e) | 0.54%(e),(f) | 3.37% | 37% | $6,206 |
| Year Ended 10/31/2018 | $29.50 | (0.38%) | 0.57% | 0.57%(f) | 3.76% | 13% | $1,363 |
| Year Ended 10/31/2017 | $30.88 | 1.75% | 0.57% | 0.56%(f) | 3.82% | 17% | $3,231 |
| Class C(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $27.45 | (10.53%) | 1.46%(d),(e) | 1.24%(d),(e) | 2.04%(d) | 12% | $16,298 |
| Year Ended 10/31/2021 | $31.08 | 3.09% | 1.55% | 1.24%(f) | 1.86% | 14% | $19,828 |
| Year Ended 10/31/2020 | $30.83 | 2.22% | 1.56% | 1.24%(f),(i) | 2.19% | 30% | $23,783 |
| Year Ended 10/31/2019 | $31.12 | 8.82% | 1.57%(e) | 1.25%(e),(f),(i) | 2.82% | 37% | $31,410 |
| Year Ended 10/31/2018 | $29.49 | (1.07%) | 1.57% | 1.27%(f),(i) | 3.07% | 13% | $35,145 |
| Year Ended 10/31/2017 | $30.87 | 1.03% | 1.57%(h) | 1.26%(f),(h),(i) | 3.16% | 17% | $46,521 |
| Institutional Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $27.46 | (10.21%) | 0.55%(d),(e) | 0.54%(d),(e) | 2.71%(d) | 12% | $232,329 |
| Year Ended 10/31/2021 | $31.09 | 3.78% | 0.55% | 0.54%(f) | 2.54% | 14% | $363,917 |
| Year Ended 10/31/2020 | $30.85 | 3.00% | 0.56% | 0.54%(f) | 2.87% | 30% | $260,443 |
| Year Ended 10/31/2019 | $31.13 | 9.58% | 0.57%(e) | 0.55%(e),(f) | 3.49% | 37% | $192,055 |
| Year Ended 10/31/2018 | $29.50 | (0.37%) | 0.57% | 0.57%(f) | 3.77% | 13% | $143,156 |
| Year Ended 10/31/2017 | $30.88 | 1.74% | 0.57%(h) | 0.56%(f),(h) | 3.86% | 17% | $120,839 |
| Institutional 2 Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $27.50 | (10.22%) | 0.53%(d),(e) | 0.52%(d),(e) | 2.76%(d) | 12% | $2,221 |
| Year Ended 10/31/2021 | $31.14 | 3.83% | 0.54% | 0.52% | 2.57% | 14% | $2,765 |
| Year Ended 10/31/2020 | $30.89 | 2.89% | 0.54% | 0.52% | 2.92% | 30% | $2,283 |
| Year Ended 10/31/2019 | $31.18 | 9.59% | 0.56%(e) | 0.53%(e) | 3.29% | 37% | $3,302 |
| Year Ended 10/31/2018 | $29.54 | (0.21%) | 0.56% | 0.55% | 3.80% | 13% | $196 |
| Year Ended 10/31/2017 | $30.92 | 1.75% | 0.55%(h) | 0.53%(h) | 3.95% | 17% | $78 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic California Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $31.26 | 0.43 | (3.59) | (3.16) | (0.42) | (0.08) | (0.50) |
| Year Ended 10/31/2021 | $31.01 | 0.82 | 0.38 | 1.20 | (0.83) | (0.12) | (0.95) |
| Year Ended 10/31/2020 | $31.29 | 0.91 | 0.02(g) | 0.93 | (0.91) | (0.30) | (1.21) |
| Year Ended 10/31/2019 | $29.65 | 1.08 | 1.72 | 2.80 | (1.08) | (0.08) | (1.16) |
| Year Ended 10/31/2018 | $31.03 | 1.16 | (1.22) | (0.06) | (1.16) | (0.16) | (1.32) |
| Year Ended 10/31/2017(k) | $30.52 | 0.80 | 0.51(g) | 1.31 | (0.80) | — | (0.80) |
| 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) | Per share amounts have been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
| (d) | Annualized. |
| (e) | Ratios include interfund lending expense which is less than 0.01%. |
| (f) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (g) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
| (h) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Class C | Institutional Class | Institutional 2 Class |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% |
| (i) | 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: |
| 10/31/2020 | 10/31/2019 | 10/31/2018 | 10/31/2017 | |
| Class C | 0.25% | 0.30% | 0.30% | 0.30% |
| (j) | Rounds to zero. |
| (k) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 26 | Columbia Strategic California Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $27.60 | (10.22%) | 0.48%(d),(e) | 0.47%(d),(e) | 2.81%(d) | 12% | $8,195 |
| Year Ended 10/31/2021 | $31.26 | 3.88% | 0.48% | 0.47% | 2.62% | 14% | $10,641 |
| Year Ended 10/31/2020 | $31.01 | 3.07% | 0.49% | 0.47% | 2.94% | 30% | $8,284 |
| Year Ended 10/31/2019 | $31.29 | 9.63% | 0.50%(e) | 0.48%(e) | 3.55% | 37% | $6,648 |
| Year Ended 10/31/2018 | $29.65 | (0.28%) | 0.50% | 0.50% | 3.85% | 13% | $3,905 |
| Year Ended 10/31/2017(k) | $31.03 | 4.34% | 0.52%(d) | 0.51%(d) | 3.93%(d) | 17% | $3,187 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 1. Organization
Columbia Strategic California
Municipal Income 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.
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.
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.
| 28 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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, failure of the clearinghouse or CCP may pose additional counterparty credit risk. 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.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 in 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 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.
Swap contracts
Swap contracts are negotiated in
the over-the-counter market and may be entered into as a bilateral contract or centrally cleared (centrally cleared swap contract). In a centrally cleared swap contract, immediately following execution of the swap
contract with a broker, the swap contract is novated to a central counterparty (the CCP) and the CCP becomes the Fund’s counterparty to the centrally cleared swap contract. The Fund is required to deposit
initial margin with the futures commission merchant (FCM), which pledges it through to the CCP in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap
contract. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is recorded in the Statement of Assets and Liabilities as margin deposits. For a bilateral swap
contract, the Fund has credit exposure to the broker, but exchanges daily variation margin with the broker based on the mark-to-market value of the swap contract to minimize that exposure. For centrally cleared swap
contracts, the Fund has minimal credit exposure to the FCM because the CCP stands between the Fund and the relevant buyer/seller on the other
| 30 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
side of the contract. Swap contracts are
marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swap contracts, if any, is recorded as a receivable or payable for
variation margin in the Statement of Assets and Liabilities.
Entering into these contracts
involves, to varying degrees, elements of interest, liquidity and counterparty credit risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there
may be unfavorable changes in interest rates, market conditions or other conditions, that it may be difficult to initiate a swap transaction or liquidate a position at an advantageous time or price which may result in
significant losses, and that the FCM or CCP may not fulfill its obligation under the contract.
Interest rate and inflation
rate swap contracts
The Fund entered into interest rate
swap transactions and/or inflation rate swap contracts to hedge the portfolio risk associated with some or all of the Fund’s securities. These instruments may be used for other purposes in future periods.
An interest rate swap or inflation rate swap, as applicable, is an agreement between two parties where there are two flows and payments are made between the two counterparties and the payments are dependent upon
changes in an interest rate, inflation rate or inflation index calculated on a nominal amount. Interest rate swaps are agreements between two parties that involve the exchange of one type of interest rate for another
type of interest rate cash flow on specified dates in the future, based on a predetermined, specified notional amount. Certain interest rate swaps are considered forward-starting, whereby the accrual for the exchange
of cash flows does not begin until a specified date in the future. The net cash flow for a standard interest rate swap transaction is generally the difference between a floating market interest rate versus a fixed
interest rate.
Interest rate swaps are valued
daily and unrealized appreciation (depreciation) is recorded. Certain interest rate swaps may accrue periodic interest on a daily basis as a component of unrealized appreciation (depreciation); the Fund will realize a
gain or loss upon the payment or receipt of accrued interest. The Fund will realize a gain or a loss when the interest rate swap is terminated.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of
the fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) at April 30, 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 | 1,326,929* |
| * | 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 April 30, 2022:
| Amount of realized gain (loss) on derivatives recognized in income | |||
| Risk exposure category | Futures contracts ($) | Swap contracts ($) | Total ($) |
| Interest rate risk | (811,589) | 55,000 | (756,589) |
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 31 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 1,307,001 |
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended April 30, 2022:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — short | 50,513,110 |
| Derivative instrument | Average unrealized appreciation ($)** | Average unrealized depreciation ($)** |
| Interest rate swap contracts | 1,900 | (9,674) |
| * | Based on the ending quarterly outstanding amounts for the six months ended April 30, 2022. |
| ** | Based on the ending daily outstanding amounts for the six months ended April 30, 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.
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.
| 32 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 2022 was 0.45% 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" in 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.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 33 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30,
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 | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 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.
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.
Effective March 1, 2022, the
Distributor has reduced the service fee for Class A shares to 0.20% annually of the average daily net assets attributable to Class A shares. Prior to March 1, 2022, the Distributor contractually waived a portion of
the service fee for Class A shares so that the service fee did not exceed 0.20% annually of the average daily net assets attributable to Class A shares. This arrangement could have been modified or terminated at
the sole discretion of the Board of Trustees.
| 34 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Effective March 1, 2022, 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 March 1, 2022, 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 April 30, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 39,462 |
| Class C | — | 1.00(b) | 266 |
| (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:
| March 1, 2022 through February 28, 2023 | Prior to March 1, 2022 | |
| Class A | 0.74% | 0.79% |
| Advisor Class | 0.54 | 0.54 |
| Class C | 1.24 | 1.54 |
| Institutional Class | 0.54 | 0.54 |
| Institutional 2 Class | 0.52 | 0.52 |
| Institutional 3 Class | 0.47 | 0.47 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, 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 March 1, 2022, Class A and 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.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 35 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
At April 30, 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) ($) |
| 613,518,000 | 8,312,000 | (46,151,000) | (37,839,000) |
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 $80,074,248 and $137,796,677, respectively, for the six months ended April 30, 2022, of which $0 and $12,912,
respectively, were U.S. government securities. The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended April 30, 2022 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Borrower | 63,500,000 | 0.61 | 1 |
Interest expense incurred by the
Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at April 30, 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 an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate 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
| 36 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 April 30, 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.
High-yield investments risk
Securities and other debt
instruments held by the Fund that are rated below investment grade (commonly called "high-yield" or "junk" bonds) and unrated debt instruments of comparable quality expose the Fund to a greater risk of loss of
principal and income than a fund that invests solely or primarily in investment grade debt instruments. In addition, these investments have greater price fluctuations, are less liquid and are more likely to experience
a default than higher-rated debt instruments. High-yield debt instruments are considered to be predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal.
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’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause 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
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 37 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
such as terrorism, war, natural disasters,
disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events – or the potential for such events – could have a significant negative impact on global economic
and market conditions.
The 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 severe
adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further
disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact
Fund performance.
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 objective. Any such events 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.
| 38 | Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 April 30, 2022, one unaffiliated
shareholder of record owned 20.2% 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 33.2% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case
of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid
positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued 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 are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of its activities as a diversified financial services firm. 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.
| Columbia Strategic California Municipal Income Fund | Semiannual Report 2022 | 39 |
Liquidity Risk
Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity
risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board
meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021,
through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 40 | Columbia Strategic California Municipal Income 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/
SAR123_10_M01_(06/22)
Columbia
Massachusetts Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Massachusetts 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 Massachusetts Intermediate Municipal Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Massachusetts individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2012
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the
Fund.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2022) | |
| AAA rating | 3.6 |
| AA rating | 53.6 |
| A rating | 22.6 |
| BBB rating | 16.7 |
| BB rating | 3.0 |
| Not rated | 0.5 |
| 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 Massachusetts 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 926.10 | 1,020.94 | 3.84 | 4.03 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 927.20 | 1,022.19 | 2.64 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 924.90 | 1,018.70 | 6.00 | 6.29 | 1.25 |
| Institutional Class | 1,000.00 | 1,000.00 | 928.20 | 1,022.19 | 2.64 | 2.77 | 0.55 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 927.70 | 1,022.44 | 2.40 | 2.52 | 0.50 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 928.10 | 1,022.69 | 2.16 | 2.27 | 0.45 |
| Class V | 1,000.00 | 1,000.00 | 926.60 | 1,021.44 | 3.36 | 3.53 | 0.70 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 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 Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
April 30, 2022 (Unaudited)
April 30, 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 Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Municipal Bonds (continued) | ||||
| Issue Description | Coupon Rate | Principal Amount ($) | Value ($) | |
| Water & Sewer 3.3% | ||||
| Massachusetts Water Resources Authority | ||||
| Refunding Revenue Bonds | ||||
| General | ||||
| Series 2007B (AGM / TCRS) | ||||
| 08/01/2023 | 5.250% | 5,500,000 | 5,711,947 | |
| Total Municipal Bonds (Cost $176,809,067) | 172,892,867 | |||
| Money Market Funds 1.8% | ||
| Shares | Value ($) | |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(e) | 72,400 | 72,393 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(e) | 3,159,026 | 3,159,026 |
| Total Money Market Funds (Cost $3,231,426) | 3,231,419 | |
| Total Investments in Securities (Cost: $180,040,493) | 176,124,286 | |
| Other Assets & Liabilities, Net | (1,136,567) | |
| Net Assets | 174,987,719 | |
Notes to Portfolio of
Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Zero coupon bond. |
| (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 April 30, 2022, the total value of these securities amounted to $4,659,847, which represents 2.66% of total net assets. |
| (d) | Represents a security purchased on a when-issued basis. |
| (e) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
| TCRS | Transferable Custody Receipts |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Fair value measurements (continued)
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 172,892,867 | — | 172,892,867 |
| Money Market Funds | 3,231,419 | — | — | 3,231,419 |
| Total Investments in Securities | 3,231,419 | 172,892,867 | — | 176,124,286 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 11 |
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $180,040,493) | $176,124,286 |
| Receivable for: | |
| Capital shares sold | 168,057 |
| Interest | 1,986,388 |
| Expense reimbursement due from Investment Manager | 490 |
| Prepaid expenses | 2,352 |
| Trustees’ deferred compensation plan | 104,101 |
| Other assets | 1,059 |
| Total assets | 178,386,733 |
| Liabilities | |
| Due to custodian | 13,446 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 2,661,760 |
| Capital shares purchased | 230,995 |
| Distributions to shareholders | 338,176 |
| Management services fees | 2,261 |
| Distribution and/or service fees | 228 |
| Transfer agent fees | 22,046 |
| Compensation of board members | 10,351 |
| Other expenses | 15,650 |
| Trustees’ deferred compensation plan | 104,101 |
| Total liabilities | 3,399,014 |
| Net assets applicable to outstanding capital stock | $174,987,719 |
| Represented by | |
| Paid in capital | 179,642,450 |
| Total distributable earnings (loss) | (4,654,731) |
| Total - representing net assets applicable to outstanding capital stock | $174,987,719 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Class A | |
| Net assets | $23,308,009 |
| Shares outstanding | 2,405,219 |
| Net asset value per share | $9.69 |
| 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) | $9.99 |
| Advisor Class | |
| Net assets | $2,220,079 |
| Shares outstanding | 229,300 |
| Net asset value per share | $9.68 |
| Class C | |
| Net assets | $1,328,424 |
| Shares outstanding | 137,132 |
| Net asset value per share | $9.69 |
| Institutional Class | |
| Net assets | $137,356,571 |
| Shares outstanding | 14,174,868 |
| Net asset value per share | $9.69 |
| Institutional 2 Class | |
| Net assets | $93,193 |
| Shares outstanding | 9,599 |
| Net asset value per share | $9.71 |
| Institutional 3 Class | |
| Net assets | $144,217 |
| Shares outstanding | 14,810 |
| Net asset value per share | $9.74 |
| Class V | |
| Net assets | $10,537,226 |
| Shares outstanding | 1,087,396 |
| Net asset value per share | $9.69 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.17 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 13 |
Statement of Operations
Six Months Ended April 30, 2022 (Unaudited)
Six Months Ended April 30, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $368 |
| Interest | 2,728,505 |
| Total income | 2,728,873 |
| Expenses: | |
| Management services fees | 471,555 |
| Distribution and/or service fees | |
| Class A | 32,573 |
| Class C | 7,256 |
| Class V | 8,517 |
| Transfer agent fees | |
| Class A | 15,824 |
| Advisor Class | 2,153 |
| Class C | 971 |
| Institutional Class | 95,934 |
| Institutional 2 Class | 34 |
| Institutional 3 Class | 16 |
| Class V | 6,892 |
| Compensation of board members | 9,179 |
| Custodian fees | 820 |
| Printing and postage fees | 5,056 |
| Registration fees | 16,344 |
| Audit fees | 14,629 |
| Legal fees | 5,792 |
| Compensation of chief compliance officer | 21 |
| Other | 6,060 |
| Total expenses | 699,626 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (98,033) |
| Fees waived by distributor | |
| Class C | (1,661) |
| Total net expenses | 599,932 |
| Net investment income | 2,128,941 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (829,122) |
| Net realized loss | (829,122) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (15,751,843) |
| Net change in unrealized appreciation (depreciation) | (15,751,843) |
| Net realized and unrealized loss | (16,580,965) |
| Net decrease in net assets resulting from operations | $(14,452,024) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
| Operations | ||
| Net investment income | $2,128,941 | $4,708,519 |
| Net realized gain (loss) | (829,122) | 522,371 |
| Net change in unrealized appreciation (depreciation) | (15,751,843) | (1,134,827) |
| Net increase (decrease) in net assets resulting from operations | (14,452,024) | 4,096,063 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (315,894) | (538,101) |
| Advisor Class | (47,212) | (86,631) |
| Class C | (15,743) | (31,410) |
| Institutional Class | (2,111,222) | (3,815,010) |
| Institutional 2 Class | (1,346) | (5,352) |
| Institutional 3 Class | (2,112) | (3,766) |
| Class V | (143,050) | (249,485) |
| Total distributions to shareholders | (2,636,579) | (4,729,755) |
| Decrease in net assets from capital stock activity | (19,615,832) | (17,242,060) |
| Total decrease in net assets | (36,704,435) | (17,875,752) |
| Net assets at beginning of period | 211,692,154 | 229,567,906 |
| Net assets at end of period | $174,987,719 | $211,692,154 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 15 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2022 (Unaudited) | October 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 112,558 | 1,154,964 | 354,630 | 3,803,971 |
| Distributions reinvested | 27,659 | 285,361 | 45,037 | 481,701 |
| Redemptions | (297,895) | (3,025,922) | (473,874) | (5,080,839) |
| Net decrease | (157,678) | (1,585,597) | (74,207) | (795,167) |
| Advisor Class | ||||
| Subscriptions | 8,175 | 83,697 | 63,640 | 682,517 |
| Distributions reinvested | 4,555 | 47,086 | 8,086 | 86,416 |
| Redemptions | (149,520) | (1,501,175) | (66,876) | (714,779) |
| Net increase (decrease) | (136,790) | (1,370,392) | 4,850 | 54,154 |
| Class C | ||||
| Subscriptions | 5,243 | 55,300 | 9,299 | 99,347 |
| Distributions reinvested | 1,523 | 15,743 | 2,808 | 30,037 |
| Redemptions | (31,265) | (316,950) | (96,891) | (1,038,099) |
| Net decrease | (24,499) | (245,907) | (84,784) | (908,715) |
| Institutional Class | ||||
| Subscriptions | 178,302 | 1,855,634 | 670,741 | 7,181,132 |
| Distributions reinvested | 19,874 | 205,133 | 28,289 | 302,500 |
| Redemptions | (1,802,217) | (18,292,935) | (2,085,318) | (22,309,685) |
| Net decrease | (1,604,041) | (16,232,168) | (1,386,288) | (14,826,053) |
| Institutional 2 Class | ||||
| Subscriptions | — | — | 4,381 | 47,170 |
| Distributions reinvested | 118 | 1,219 | 470 | 5,042 |
| Redemptions | (118) | (1,219) | (16,510) | (177,094) |
| Net decrease | — | — | (11,659) | (124,882) |
| Institutional 3 Class | ||||
| Subscriptions | — | — | 117 | 1,270 |
| Distributions reinvested | 191 | 1,976 | 329 | 3,533 |
| Redemptions | (324) | (3,446) | (1,680) | (18,118) |
| Net decrease | (133) | (1,470) | (1,234) | (13,315) |
| Class V | ||||
| Subscriptions | 3,273 | 33,892 | 32,988 | 351,723 |
| Distributions reinvested | 8,329 | 85,903 | 13,578 | 145,224 |
| Redemptions | (29,557) | (300,093) | (105,032) | (1,125,029) |
| Net decrease | (17,955) | (180,298) | (58,466) | (628,082) |
| Total net decrease | (1,941,096) | (19,615,832) | (1,611,788) | (17,242,060) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
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| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 17 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.59 | 0.10 | (0.88) | (0.78) | (0.09) | (0.03) | (0.12) |
| Year Ended 10/31/2021 | $10.62 | 0.21 | (0.03) | 0.18 | (0.21) | (0.00)(d) | (0.21) |
| Year Ended 10/31/2020 | $10.65 | 0.24 | (0.03) | 0.21 | (0.23) | (0.01) | (0.24) |
| Year Ended 10/31/2019 | $10.17 | 0.29 | 0.51 | 0.80 | (0.29) | (0.03) | (0.32) |
| Year Ended 10/31/2018 | $10.62 | 0.28 | (0.42) | (0.14) | (0.28) | (0.03) | (0.31) |
| Year Ended 10/31/2017 | $10.88 | 0.29 | (0.19) | 0.10 | (0.29) | (0.07) | (0.36) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.58 | 0.11 | (0.87) | (0.76) | (0.11) | (0.03) | (0.14) |
| Year Ended 10/31/2021 | $10.61 | 0.23 | (0.03) | 0.20 | (0.23) | (0.00)(d) | (0.23) |
| Year Ended 10/31/2020 | $10.64 | 0.26 | (0.02) | 0.24 | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2019 | $10.16 | 0.31 | 0.51 | 0.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2018 | $10.61 | 0.31 | (0.43) | (0.12) | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2017 | $10.87 | 0.32 | (0.20) | 0.12 | (0.31) | (0.07) | (0.38) |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.58 | 0.08 | (0.87) | (0.79) | (0.07) | (0.03) | (0.10) |
| Year Ended 10/31/2021 | $10.62 | 0.16 | (0.04) | 0.12 | (0.16) | (0.00)(d) | (0.16) |
| Year Ended 10/31/2020 | $10.64 | 0.19 | (0.02) | 0.17 | (0.18) | (0.01) | (0.19) |
| Year Ended 10/31/2019 | $10.16 | 0.24 | 0.51 | 0.75 | (0.24) | (0.03) | (0.27) |
| Year Ended 10/31/2018 | $10.62 | 0.24 | (0.44) | (0.20) | (0.23) | (0.03) | (0.26) |
| Year Ended 10/31/2017 | $10.88 | 0.24 | (0.19) | 0.05 | (0.24) | (0.07) | (0.31) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.58 | 0.11 | (0.86) | (0.75) | (0.11) | (0.03) | (0.14) |
| Year Ended 10/31/2021 | $10.62 | 0.23 | (0.04) | 0.19 | (0.23) | (0.00)(d) | (0.23) |
| Year Ended 10/31/2020 | $10.65 | 0.26 | (0.02) | 0.24 | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2019 | $10.17 | 0.31 | 0.51 | 0.82 | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2018 | $10.62 | 0.31 | (0.43) | (0.12) | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2017 | $10.88 | 0.32 | (0.20) | 0.12 | (0.31) | (0.07) | (0.38) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.61 | 0.11 | (0.87) | (0.76) | (0.11) | (0.03) | (0.14) |
| Year Ended 10/31/2021 | $10.64 | 0.24 | (0.03) | 0.21 | (0.24) | (0.00)(d) | (0.24) |
| Year Ended 10/31/2020 | $10.66 | 0.28 | (0.02) | 0.26 | (0.27) | (0.01) | (0.28) |
| Year Ended 10/31/2019 | $10.18 | 0.32 | 0.51 | 0.83 | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2018 | $10.64 | 0.31 | (0.43) | (0.12) | (0.31) | (0.03) | (0.34) |
| Year Ended 10/31/2017 | $10.90 | 0.32 | (0.19) | 0.13 | (0.32) | (0.07) | (0.39) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 18 | Columbia Massachusetts 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 4/30/2022 (Unaudited) | $9.69 | (7.39%) | 0.90%(c) | 0.80%(c) | 1.92%(c) | 3% | $23,308 |
| Year Ended 10/31/2021 | $10.59 | 1.65% | 0.90% | 0.81%(e) | 1.92% | 8% | $27,129 |
| Year Ended 10/31/2020 | $10.62 | 2.02% | 0.90% | 0.81%(e) | 2.23% | 13% | $28,012 |
| Year Ended 10/31/2019 | $10.65 | 7.92% | 0.90% | 0.80%(e) | 2.75% | 15% | $23,968 |
| Year Ended 10/31/2018 | $10.17 | (1.36%) | 0.90% | 0.81%(e) | 2.72% | 13% | $19,046 |
| Year Ended 10/31/2017 | $10.62 | 0.95% | 0.90%(f) | 0.78%(e),(f) | 2.74% | 5% | $18,512 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.68 | (7.28%) | 0.65%(c) | 0.55%(c) | 2.15%(c) | 3% | $2,220 |
| Year Ended 10/31/2021 | $10.58 | 1.91% | 0.65% | 0.56%(e) | 2.17% | 8% | $3,872 |
| Year Ended 10/31/2020 | $10.61 | 2.27% | 0.65% | 0.56%(e) | 2.48% | 13% | $3,834 |
| Year Ended 10/31/2019 | $10.64 | 8.19% | 0.65% | 0.55%(e) | 3.00% | 15% | $3,188 |
| Year Ended 10/31/2018 | $10.16 | (1.12%) | 0.65% | 0.56%(e) | 2.97% | 13% | $2,568 |
| Year Ended 10/31/2017 | $10.61 | 1.20% | 0.66%(f) | 0.54%(e),(f) | 2.98% | 5% | $3,502 |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.69 | (7.51%) | 1.56%(c) | 1.25%(c) | 1.47%(c) | 3% | $1,328 |
| Year Ended 10/31/2021 | $10.58 | 1.10% | 1.65% | 1.26%(e) | 1.47% | 8% | $1,710 |
| Year Ended 10/31/2020 | $10.62 | 1.65% | 1.65% | 1.26%(e),(g) | 1.80% | 13% | $2,617 |
| Year Ended 10/31/2019 | $10.64 | 7.44% | 1.65% | 1.25%(e),(g) | 2.32% | 15% | $3,472 |
| Year Ended 10/31/2018 | $10.16 | (1.90%) | 1.65% | 1.26%(e),(g) | 2.27% | 13% | $5,780 |
| Year Ended 10/31/2017 | $10.62 | 0.50% | 1.66%(f) | 1.24%(e),(f),(g) | 2.29% | 5% | $7,470 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.69 | (7.18%) | 0.65%(c) | 0.55%(c) | 2.17%(c) | 3% | $137,357 |
| Year Ended 10/31/2021 | $10.58 | 1.81% | 0.65% | 0.56%(e) | 2.17% | 8% | $167,020 |
| Year Ended 10/31/2020 | $10.62 | 2.27% | 0.65% | 0.56%(e) | 2.49% | 13% | $182,343 |
| Year Ended 10/31/2019 | $10.65 | 8.19% | 0.65% | 0.55%(e) | 3.01% | 15% | $177,665 |
| Year Ended 10/31/2018 | $10.17 | (1.11%) | 0.65% | 0.56%(e) | 2.97% | 13% | $166,289 |
| Year Ended 10/31/2017 | $10.62 | 1.20% | 0.66%(f) | 0.54%(e),(f) | 2.98% | 5% | $199,199 |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.71 | (7.23%) | 0.60%(c) | 0.50%(c) | 2.22%(c) | 3% | $93 |
| Year Ended 10/31/2021 | $10.61 | 1.96% | 0.59% | 0.50% | 2.23% | 8% | $102 |
| Year Ended 10/31/2020 | $10.64 | 2.43% | 0.59% | 0.49% | 2.61% | 13% | $226 |
| Year Ended 10/31/2019 | $10.66 | 8.25% | 0.59% | 0.49% | 3.03% | 15% | $408 |
| Year Ended 10/31/2018 | $10.18 | (1.15%) | 0.57% | 0.50% | 3.01% | 13% | $41 |
| Year Ended 10/31/2017 | $10.64 | 1.28% | 0.56%(f) | 0.47%(f) | 3.05% | 5% | $10 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 19 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.64 | 0.12 | (0.88) | (0.76) | (0.11) | (0.03) | (0.14) |
| Year Ended 10/31/2021 | $10.67 | 0.24 | (0.02) | 0.22 | (0.25) | (0.00)(d) | (0.25) |
| Year Ended 10/31/2020 | $10.70 | 0.27 | (0.02) | 0.25 | (0.27) | (0.01) | (0.28) |
| Year Ended 10/31/2019 | $10.22 | 0.33 | 0.50 | 0.83 | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2018 | $10.67 | 0.32 | (0.42) | (0.10) | (0.32) | (0.03) | (0.35) |
| Year Ended 10/31/2017(h) | $10.56 | 0.22 | 0.11(i) | 0.33 | (0.22) | — | (0.22) |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.59 | 0.10 | (0.87) | (0.77) | (0.10) | (0.03) | (0.13) |
| Year Ended 10/31/2021 | $10.62 | 0.22 | (0.03) | 0.19 | (0.22) | (0.00)(d) | (0.22) |
| Year Ended 10/31/2020 | $10.65 | 0.25 | (0.03) | 0.22 | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2019 | $10.17 | 0.30 | 0.51 | 0.81 | (0.30) | (0.03) | (0.33) |
| Year Ended 10/31/2018 | $10.62 | 0.29 | (0.42) | (0.13) | (0.29) | (0.03) | (0.32) |
| Year Ended 10/31/2017 | $10.88 | 0.30 | (0.19) | 0.11 | (0.30) | (0.07) | (0.37) |
| 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) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (f) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Institutional 2 Class | Class V |
| 10/31/2017 | 0.03% | 0.02% | 0.02% | 0.02% | 0.02% | 0.02% |
| (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: |
| 10/31/2020 | 10/31/2019 | 10/31/2018 | 10/31/2017 | |
| Class C | 0.25% | 0.30% | 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.
| 20 | Columbia Massachusetts 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 4/30/2022 (Unaudited) | $9.74 | (7.19%) | 0.55%(c) | 0.45%(c) | 2.27%(c) | 3% | $144 |
| Year Ended 10/31/2021 | $10.64 | 2.02% | 0.55% | 0.45% | 2.28% | 8% | $159 |
| Year Ended 10/31/2020 | $10.67 | 2.38% | 0.54% | 0.45% | 2.58% | 13% | $173 |
| Year Ended 10/31/2019 | $10.70 | 8.28% | 0.54% | 0.44% | 3.12% | 15% | $128 |
| Year Ended 10/31/2018 | $10.22 | (0.99%) | 0.54% | 0.45% | 3.08% | 13% | $108 |
| Year Ended 10/31/2017(h) | $10.67 | 3.10% | 0.55%(c) | 0.45%(c) | 3.21%(c) | 5% | $110 |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.69 | (7.34%) | 0.80%(c) | 0.70%(c) | 2.02%(c) | 3% | $10,537 |
| Year Ended 10/31/2021 | $10.59 | 1.76% | 0.80% | 0.71%(e) | 2.02% | 8% | $11,700 |
| Year Ended 10/31/2020 | $10.62 | 2.12% | 0.80% | 0.71%(e) | 2.34% | 13% | $12,363 |
| Year Ended 10/31/2019 | $10.65 | 8.03% | 0.80% | 0.70%(e) | 2.86% | 15% | $12,839 |
| Year Ended 10/31/2018 | $10.17 | (1.26%) | 0.80% | 0.71%(e) | 2.82% | 13% | $15,825 |
| Year Ended 10/31/2017 | $10.62 | 1.05% | 0.81%(f) | 0.69%(e),(f) | 2.83% | 5% | $17,934 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 21 |
Notes to Financial Statements
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 1. Organization
Columbia Massachusetts
Intermediate Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940
Act), as an open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized 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.
| 22 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 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" in 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.
| 24 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
For the six months ended April 30,
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 | 0.12 |
| Advisor Class | 0.12 |
| Class C | 0.12 |
| Institutional Class | 0.12 |
| Institutional 2 Class | 0.07 |
| Institutional 3 Class | 0.02 |
| Class V | 0.12 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 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.
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.
Effective March 1, 2022, 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 March 1, 2022, 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.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to
an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 5,345 |
| Class C | — | 1.00(b) | 70 |
| Class V | 4.75 | 0.50 - 1.00(c) | — |
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| March 1, 2022 through February 28, 2023 | Prior to March 1, 2022 | |
| 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 | 0.50 | 0.50 |
| Institutional 3 Class | 0.45 | 0.45 |
| Class V | 0.71 | 0.71 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, 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. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have
voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share
class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Prior to March 1, 2022, 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.
At April 30, 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) ($) |
| 180,040,000 | 1,777,000 | (5,693,000) | (3,916,000) |
| 26 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 $5,944,756 and $23,016,316, respectively, for the six months ended April 30, 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 April 30, 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 an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate 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 April 30, 2022.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause 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 severe
adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further
disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact
Fund performance.
| 28 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 objective. Any such events 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.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Shareholder concentration risk
At April 30, 2022, one unaffiliated
shareholder of record owned 72.6% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption
activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid
positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for
non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of its activities as a diversified financial services firm. 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.
| 30 | Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Liquidity Risk
Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity
risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board
meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021,
through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| Columbia Massachusetts Intermediate Municipal Bond Fund | Semiannual Report 2022 | 31 |
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/
SAR191_10_M01_(06/22)
Columbia Strategic
New York Municipal Income Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Strategic New York Municipal Income 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 Strategic New York Municipal Income
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks total return, with a focus on income exempt from federal income tax and New York individual income tax and capital appreciation.
Portfolio management
Douglas White, CFA
Lead Portfolio Manager
Managed Fund since 2018
Catherine Stienstra
Portfolio Manager
Managed Fund since 2010
Anders Myhran, CFA*
Portfolio Manager
Managed Fund since 2016
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Portfolio Manager of the Fund.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2022) | |
| AAA rating | 0.4 |
| AA rating | 29.3 |
| A rating | 28.9 |
| BBB rating | 17.5 |
| BB rating | 2.7 |
| B rating | 1.8 |
| D rating | 1.6 |
| Not rated | 17.8 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. 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 Strategic New York Municipal Income 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 905.30 | 1,021.04 | 3.71 | 3.93 | 0.78 |
| Advisor Class | 1,000.00 | 1,000.00 | 906.30 | 1,022.29 | 2.52 | 2.67 | 0.53 |
| Class C | 1,000.00 | 1,000.00 | 903.20 | 1,018.80 | 5.84 | 6.19 | 1.23 |
| Institutional Class | 1,000.00 | 1,000.00 | 906.40 | 1,022.29 | 2.52 | 2.67 | 0.53 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 906.50 | 1,022.39 | 2.42 | 2.57 | 0.51 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 906.70 | 1,022.64 | 2.19 | 2.32 | 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 Strategic New York Municipal Income Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
April 30, 2022 (Unaudited)
April 30, 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 Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
At April 30, 2022,
securities and/or cash totaling $233,300 were pledged as collateral.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Investments in derivatives
| Short futures contracts | ||||||
| Description | Number of contracts | Expiration date | Trading currency | Notional amount | Value/Unrealized appreciation ($) | Value/Unrealized depreciation ($) |
| U.S. Treasury 10-Year Note | (124) | 06/2022 | USD | (14,775,375) | 318,171 | — |
Notes to Portfolio of
Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $11,151,270, which represents 6.57% of total net assets. |
| (c) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2022, the total value of these securities amounted to $9,649,058, which represents 5.69% of total net assets. |
| (d) | Represents a security purchased on a when-issued basis. |
| (e) | Represents securities that have defaulted on payment of interest. The Fund has stopped accruing interest on these securities. At April 30, 2022, the total value of these securities amounted to $3,155,750, which represents 1.86% of total net assets. |
| (f) | Zero coupon bond. |
| (g) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| FHA | Federal Housing Authority |
| GNMA | Government National Mortgage Association |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
Under the direction of the
Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of
voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 13 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 166,967,035 | — | 166,967,035 |
| Money Market Funds | 2,016,400 | — | — | 2,016,400 |
| Total Investments in Securities | 2,016,400 | 166,967,035 | — | 168,983,435 |
| Investments in Derivatives | ||||
| Asset | ||||
| Futures Contracts | 318,171 | — | — | 318,171 |
| Total | 2,334,571 | 166,967,035 | — | 169,301,606 |
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.
| 14 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $177,324,593) | $168,983,435 |
| Cash | 3,762 |
| Margin deposits on: | |
| Futures contracts | 233,300 |
| Receivable for: | |
| Capital shares sold | 468,887 |
| Interest | 2,262,667 |
| Variation margin for futures contracts | 25,187 |
| Expense reimbursement due from Investment Manager | 384 |
| Prepaid expenses | 2,097 |
| Trustees’ deferred compensation plan | 89,484 |
| Total assets | 172,069,203 |
| Liabilities | |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,070,650 |
| Capital shares purchased | 728,396 |
| Distributions to shareholders | 419,327 |
| Management services fees | 2,193 |
| Distribution and/or service fees | 860 |
| Transfer agent fees | 10,868 |
| Compensation of board members | 10,239 |
| Other expenses | 21,433 |
| Trustees’ deferred compensation plan | 89,484 |
| Total liabilities | 2,353,450 |
| Net assets applicable to outstanding capital stock | $169,715,753 |
| Represented by | |
| Paid in capital | 178,893,688 |
| Total distributable earnings (loss) | (9,177,935) |
| Total - representing net assets applicable to outstanding capital stock | $169,715,753 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 15 |
Statement of Assets and Liabilities (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Class A | |
| Net assets | $96,914,849 |
| Shares outstanding | 3,602,016 |
| Net asset value per share | $26.91 |
| 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) | $27.74 |
| Advisor Class | |
| Net assets | $10,442,025 |
| Shares outstanding | 388,696 |
| Net asset value per share | $26.86 |
| Class C | |
| Net assets | $10,247,310 |
| Shares outstanding | 381,030 |
| Net asset value per share | $26.89 |
| Institutional Class | |
| Net assets | $49,246,362 |
| Shares outstanding | 1,831,949 |
| Net asset value per share | $26.88 |
| Institutional 2 Class | |
| Net assets | $2,130,599 |
| Shares outstanding | 79,451 |
| Net asset value per share | $26.82 |
| Institutional 3 Class | |
| Net assets | $734,608 |
| Shares outstanding | 27,309 |
| Net asset value per share | $26.90 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 16 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Statement of Operations
Six Months Ended April 30, 2022 (Unaudited)
Six Months Ended April 30, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $478 |
| Interest | 3,123,212 |
| Total income | 3,123,690 |
| Expenses: | |
| Management services fees | 456,363 |
| Distribution and/or service fees | |
| Class A | 138,244 |
| Class C | 52,778 |
| Transfer agent fees | |
| Class A | 42,214 |
| Advisor Class | 4,737 |
| Class C | 4,443 |
| Institutional Class | 21,381 |
| Institutional 2 Class | 773 |
| Institutional 3 Class | 55 |
| Compensation of board members | 9,133 |
| Custodian fees | 5,278 |
| Printing and postage fees | 7,253 |
| Registration fees | 8,939 |
| Audit fees | 14,629 |
| Legal fees | 5,759 |
| Interest on interfund lending | 7 |
| Compensation of chief compliance officer | 21 |
| Other | 5,610 |
| Total expenses | 777,617 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (76,055) |
| Fees waived by distributor | |
| Class C | (12,043) |
| Total net expenses | 689,519 |
| Net investment income | 2,434,171 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (776,940) |
| Futures contracts | (223,580) |
| Swap contracts | 22,000 |
| Net realized loss | (978,520) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (20,207,684) |
| Futures contracts | 312,504 |
| Net change in unrealized appreciation (depreciation) | (19,895,180) |
| Net realized and unrealized loss | (20,873,700) |
| Net decrease in net assets resulting from operations | $(18,439,529) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 17 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
| Operations | ||
| Net investment income | $2,434,171 | $4,847,512 |
| Net realized gain (loss) | (978,520) | 1,029,118 |
| Net change in unrealized appreciation (depreciation) | (19,895,180) | 4,181,313 |
| Net increase (decrease) in net assets resulting from operations | (18,439,529) | 10,057,943 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (2,226,261) | (3,501,106) |
| Advisor Class | (262,080) | (350,444) |
| Class C | (207,613) | (352,513) |
| Institutional Class | (1,181,996) | (1,705,752) |
| Institutional 2 Class | (57,799) | (60,839) |
| Institutional 3 Class | (18,596) | (27,385) |
| Total distributions to shareholders | (3,954,345) | (5,998,039) |
| Increase (decrease) in net assets from capital stock activity | (9,026,140) | 3,885,625 |
| Total increase (decrease) in net assets | (31,420,014) | 7,945,529 |
| Net assets at beginning of period | 201,135,767 | 193,190,238 |
| Net assets at end of period | $169,715,753 | $201,135,767 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 18 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2022 (Unaudited) | October 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 64,193 | 1,888,326 | 348,256 | 10,644,602 |
| Distributions reinvested | 62,894 | 1,859,360 | 95,819 | 2,917,413 |
| Redemptions | (413,172) | (12,074,331) | (426,551) | (13,004,856) |
| Net increase (decrease) | (286,085) | (8,326,645) | 17,524 | 557,159 |
| Advisor Class | ||||
| Subscriptions | 57,625 | 1,682,794 | 136,465 | 4,155,951 |
| Distributions reinvested | 8,898 | 261,863 | 11,508 | 350,104 |
| Redemptions | (86,596) | (2,410,347) | (47,995) | (1,459,024) |
| Net increase (decrease) | (20,073) | (465,690) | 99,978 | 3,047,031 |
| Class C | ||||
| Subscriptions | 17,966 | 524,805 | 48,086 | 1,466,017 |
| Distributions reinvested | 6,098 | 180,322 | 9,726 | 295,664 |
| Redemptions | (45,722) | (1,318,799) | (164,179) | (5,014,579) |
| Net decrease | (21,658) | (613,672) | (106,367) | (3,252,898) |
| Institutional Class | ||||
| Subscriptions | 477,178 | 13,938,716 | 396,425 | 12,118,408 |
| Distributions reinvested | 25,829 | 760,031 | 36,584 | 1,113,190 |
| Redemptions | (518,500) | (14,870,012) | (315,309) | (9,608,582) |
| Net increase (decrease) | (15,493) | (171,265) | 117,700 | 3,623,016 |
| Institutional 2 Class | ||||
| Subscriptions | 44,360 | 1,321,689 | 8,071 | 247,558 |
| Distributions reinvested | 1,957 | 57,583 | 1,994 | 60,499 |
| Redemptions | (28,410) | (799,776) | (15,344) | (466,433) |
| Net increase (decrease) | 17,907 | 579,496 | (5,279) | (158,376) |
| Institutional 3 Class | ||||
| Subscriptions | 5,648 | 164,730 | 6,222 | 189,093 |
| Distributions reinvested | 624 | 18,380 | 888 | 27,044 |
| Redemptions | (7,568) | (211,474) | (4,806) | (146,444) |
| Net increase (decrease) | (1,296) | (28,364) | 2,304 | 69,693 |
| Total net increase (decrease) | (326,698) | (9,026,140) | 125,860 | 3,885,625 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $30.32 | 0.36 | (3.18) | (2.82) | (0.36) | (0.23) | (0.59) |
| Year Ended 10/31/2021 | $29.68 | 0.73 | 0.81 | 1.54 | (0.72) | (0.18) | (0.90) |
| Year Ended 10/31/2020 | $30.29 | 0.78 | (0.32) | 0.46 | (0.78) | (0.29) | (1.07) |
| Year Ended 10/31/2019 | $28.51 | 0.88 | 1.78 | 2.66 | (0.88) | — | (0.88) |
| Year Ended 10/31/2018 | $29.81 | 0.92 | (1.22) | (0.30) | (0.96) | (0.04) | (1.00) |
| Year Ended 10/31/2017 | $30.33 | 0.96 | (0.52) | 0.44 | (0.92) | (0.04) | (0.96) |
| Advisor Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $30.27 | 0.39 | (3.18) | (2.79) | (0.39) | (0.23) | (0.62) |
| Year Ended 10/31/2021 | $29.64 | 0.80 | 0.81 | 1.61 | (0.80) | (0.18) | (0.98) |
| Year Ended 10/31/2020 | $30.25 | 0.85 | (0.32) | 0.53 | (0.85) | (0.29) | (1.14) |
| Year Ended 10/31/2019 | $28.47 | 0.96 | 1.78 | 2.74 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.77 | 1.00 | (1.26) | (0.26) | (1.00) | (0.04) | (1.04) |
| Year Ended 10/31/2017 | $30.27 | 1.04 | (0.50) | 0.54 | (1.00) | (0.04) | (1.04) |
| Class C(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $30.30 | 0.29 | (3.18) | (2.89) | (0.29) | (0.23) | (0.52) |
| Year Ended 10/31/2021 | $29.67 | 0.59 | 0.81 | 1.40 | (0.59) | (0.18) | (0.77) |
| Year Ended 10/31/2020 | $30.28 | 0.65 | (0.33) | 0.32 | (0.64) | (0.29) | (0.93) |
| Year Ended 10/31/2019 | $28.50 | 0.76 | 1.78 | 2.54 | (0.76) | — | (0.76) |
| Year Ended 10/31/2018 | $29.80 | 0.80 | (1.26) | (0.46) | (0.80) | (0.04) | (0.84) |
| Year Ended 10/31/2017 | $30.31 | 0.80 | (0.47) | 0.33 | (0.80) | (0.04) | (0.84) |
| Institutional Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $30.29 | 0.39 | (3.18) | (2.79) | (0.39) | (0.23) | (0.62) |
| Year Ended 10/31/2021 | $29.66 | 0.80 | 0.81 | 1.61 | (0.80) | (0.18) | (0.98) |
| Year Ended 10/31/2020 | $30.26 | 0.85 | (0.31) | 0.54 | (0.85) | (0.29) | (1.14) |
| Year Ended 10/31/2019 | $28.49 | 0.96 | 1.77 | 2.73 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.79 | 1.00 | (1.26) | (0.26) | (1.00) | (0.04) | (1.04) |
| Year Ended 10/31/2017 | $30.30 | 1.04 | (0.51) | 0.53 | (1.00) | (0.04) | (1.04) |
| Institutional 2 Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $30.22 | 0.40 | (3.17) | (2.77) | (0.40) | (0.23) | (0.63) |
| Year Ended 10/31/2021 | $29.58 | 0.81 | 0.81 | 1.62 | (0.80) | (0.18) | (0.98) |
| Year Ended 10/31/2020 | $30.19 | 0.86 | (0.32) | 0.54 | (0.86) | (0.29) | (1.15) |
| Year Ended 10/31/2019 | $28.42 | 0.96 | 1.77 | 2.73 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.72 | 1.00 | (1.26) | (0.26) | (1.00) | (0.04) | (1.04) |
| Year Ended 10/31/2017 | $30.22 | 1.04 | (0.50) | 0.54 | (1.00) | (0.04) | (1.04) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia Strategic New York Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $26.91 | (9.47%) | 0.85%(d),(e) | 0.78%(d),(e) | 2.44%(d) | 10% | $96,915 |
| Year Ended 10/31/2021 | $30.32 | 5.23% | 0.85% | 0.78%(f) | 2.39% | 18% | $117,874 |
| Year Ended 10/31/2020 | $29.68 | 1.59% | 0.85%(e) | 0.80%(e),(f) | 2.63% | 26% | $114,883 |
| Year Ended 10/31/2019 | $30.29 | 9.37% | 0.85% | 0.80%(f) | 3.00% | 46% | $117,062 |
| Year Ended 10/31/2018 | $28.51 | (1.02%) | 0.85% | 0.80%(f) | 3.21% | 19% | $120,625 |
| Year Ended 10/31/2017 | $29.81 | 1.59% | 0.85% | 0.79%(f) | 3.21% | 7% | $134,602 |
| Advisor Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $26.86 | (9.37%) | 0.60%(d),(e) | 0.53%(d),(e) | 2.69%(d) | 10% | $10,442 |
| Year Ended 10/31/2021 | $30.27 | 5.46% | 0.61% | 0.53%(f) | 2.63% | 18% | $12,373 |
| Year Ended 10/31/2020 | $29.64 | 1.84% | 0.60%(e) | 0.55%(e),(f) | 2.88% | 26% | $9,151 |
| Year Ended 10/31/2019 | $30.25 | 9.66% | 0.60% | 0.55%(f) | 3.23% | 46% | $6,470 |
| Year Ended 10/31/2018 | $28.47 | (0.78%) | 0.60% | 0.55%(f) | 3.48% | 19% | $4,821 |
| Year Ended 10/31/2017 | $29.77 | 1.84% | 0.59% | 0.55%(f) | 3.46% | 7% | $2,518 |
| Class C(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $26.89 | (9.68%) | 1.51%(d),(e) | 1.23%(d),(e) | 1.99%(d) | 10% | $10,247 |
| Year Ended 10/31/2021 | $30.30 | 4.72% | 1.60% | 1.23%(f) | 1.94% | 18% | $12,203 |
| Year Ended 10/31/2020 | $29.67 | 1.10% | 1.60%(e) | 1.25%(e),(f),(g) | 2.18% | 26% | $15,103 |
| Year Ended 10/31/2019 | $30.28 | 9.04% | 1.60% | 1.25%(f),(g) | 2.56% | 46% | $19,693 |
| Year Ended 10/31/2018 | $28.50 | (1.60%) | 1.60% | 1.25%(f),(g) | 2.76% | 19% | $21,111 |
| Year Ended 10/31/2017 | $29.80 | 1.13% | 1.60% | 1.24%(f),(g) | 2.76% | 7% | $27,972 |
| Institutional Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $26.88 | (9.36%) | 0.60%(d),(e) | 0.53%(d),(e) | 2.69%(d) | 10% | $49,246 |
| Year Ended 10/31/2021 | $30.29 | 5.46% | 0.60% | 0.53%(f) | 2.63% | 18% | $55,959 |
| Year Ended 10/31/2020 | $29.66 | 1.77% | 0.60%(e) | 0.55%(e),(f) | 2.88% | 26% | $51,296 |
| Year Ended 10/31/2019 | $30.26 | 9.80% | 0.60% | 0.55%(f) | 3.24% | 46% | $52,745 |
| Year Ended 10/31/2018 | $28.49 | (0.91%) | 0.60% | 0.55%(f) | 3.46% | 19% | $41,072 |
| Year Ended 10/31/2017 | $29.79 | 1.84% | 0.60% | 0.55%(f) | 3.48% | 7% | $46,257 |
| Institutional 2 Class(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $26.82 | (9.35%) | 0.59%(d),(e) | 0.51%(d),(e) | 2.71%(d) | 10% | $2,131 |
| Year Ended 10/31/2021 | $30.22 | 5.52% | 0.59% | 0.52% | 2.65% | 18% | $1,860 |
| Year Ended 10/31/2020 | $29.58 | 1.78% | 0.58%(e) | 0.53%(e) | 2.89% | 26% | $1,977 |
| Year Ended 10/31/2019 | $30.19 | 9.84% | 0.58% | 0.53% | 3.28% | 46% | $4,207 |
| Year Ended 10/31/2018 | $28.42 | (0.91%) | 0.58% | 0.54% | 3.46% | 19% | $5,457 |
| Year Ended 10/31/2017 | $29.72 | 1.98% | 0.59% | 0.54% | 3.46% | 7% | $6,497 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Strategic New York Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $30.31 | 0.40 | (3.18) | (2.78) | (0.40) | (0.23) | (0.63) |
| Year Ended 10/31/2021 | $29.67 | 0.82 | 0.82 | 1.64 | (0.82) | (0.18) | (1.00) |
| Year Ended 10/31/2020 | $30.28 | 0.87 | (0.32) | 0.55 | (0.87) | (0.29) | (1.16) |
| Year Ended 10/31/2019 | $28.50 | 0.96 | 1.78 | 2.74 | (0.96) | — | (0.96) |
| Year Ended 10/31/2018 | $29.80 | 1.04 | (1.26) | (0.22) | (1.04) | (0.04) | (1.08) |
| Year Ended 10/31/2017(h) | $29.32 | 0.68 | 0.48(i) | 1.16 | (0.68) | — | (0.68) |
| 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) | Per share amounts have been adjusted on a retroactive basis to reflect a 4 to 1 reverse stock split completed after the close of business on September 11, 2020. |
| (d) | Annualized. |
| (e) | Ratios include interfund lending expense which is less than 0.01%. |
| (f) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (g) | Ratios include 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: |
| 10/31/2020 | 10/31/2019 | 10/31/2018 | 10/31/2017 | |
| Class C | 0.25% | 0.30% | 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 Strategic New York Municipal Income 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(c) | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $26.90 | (9.33%) | 0.54%(d),(e) | 0.46%(d),(e) | 2.76%(d) | 10% | $735 |
| Year Ended 10/31/2021 | $30.31 | 5.56% | 0.54% | 0.47% | 2.70% | 18% | $867 |
| Year Ended 10/31/2020 | $29.67 | 1.87% | 0.54%(e) | 0.49%(e) | 2.95% | 26% | $780 |
| Year Ended 10/31/2019 | $30.28 | 9.71% | 0.54% | 0.49% | 3.17% | 46% | $741 |
| Year Ended 10/31/2018 | $28.50 | (0.72%) | 0.54% | 0.50% | 3.49% | 19% | $38 |
| Year Ended 10/31/2017(h) | $29.80 | 4.00% | 0.54%(d) | 0.50%(d) | 3.62%(d) | 7% | $105 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 1. Organization
Columbia Strategic New York
Municipal Income Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 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.
| 24 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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, failure of the clearinghouse or CCP may pose additional counterparty credit risk. 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 Strategic New York Municipal Income Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 in 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 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.
Swap contracts
Swap contracts are negotiated in
the over-the-counter market and may be entered into as a bilateral contract or centrally cleared (centrally cleared swap contract). In a centrally cleared swap contract, immediately following execution of the swap
contract with a broker, the swap contract is novated to a central counterparty (the CCP) and the CCP becomes the Fund’s counterparty to the centrally cleared swap contract. The Fund is required to deposit
initial margin with the futures commission merchant (FCM), which pledges it through to the CCP in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap
contract. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is recorded in the Statement of Assets and Liabilities as margin deposits. For a bilateral swap
contract, the Fund has credit exposure to the broker, but exchanges daily variation margin with the broker based on the mark-to-market value of the swap contract to minimize that exposure. For centrally cleared swap
contracts, the Fund has minimal credit exposure to the FCM because the CCP stands between the Fund and the relevant buyer/seller on the other side of the contract. Swap contracts are marked-to-market daily and changes
in value are recorded as unrealized appreciation (depreciation). The daily change in valuation of centrally cleared swap contracts, if any, is recorded as a receivable or payable for variation margin in the Statement
of Assets and Liabilities.
| 26 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Entering into these contracts
involves, to varying degrees, elements of interest, liquidity and counterparty credit risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there
may be unfavorable changes in interest rates, market conditions or other conditions, that it may be difficult to initiate a swap transaction or liquidate a position at an advantageous time or price which may result in
significant losses, and that the FCM or CCP may not fulfill its obligation under the contract.
Interest rate and inflation
rate swap contracts
The Fund entered into interest rate
swap transactions and/or inflation rate swap contracts to hedge the portfolio risk associated with some or all of the Fund’s securities. These instruments may be used for other purposes in future periods.
An interest rate swap or inflation rate swap, as applicable, is an agreement between two parties where there are two flows and payments are made between the two counterparties and the payments are dependent upon
changes in an interest rate, inflation rate or inflation index calculated on a nominal amount. Interest rate swaps are agreements between two parties that involve the exchange of one type of interest rate for another
type of interest rate cash flow on specified dates in the future, based on a predetermined, specified notional amount. Certain interest rate swaps are considered forward-starting, whereby the accrual for the exchange
of cash flows does not begin until a specified date in the future. The net cash flow for a standard interest rate swap transaction is generally the difference between a floating market interest rate versus a fixed
interest rate.
Interest rate swaps are valued
daily and unrealized appreciation (depreciation) is recorded. Certain interest rate swaps may accrue periodic interest on a daily basis as a component of unrealized appreciation (depreciation); the Fund will realize a
gain or loss upon the payment or receipt of accrued interest. The Fund will realize a gain or a loss when the interest rate swap is terminated.
Effects of derivative transactions in
the financial statements
The following tables are intended
to provide additional information about the effect of derivatives on the financial statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations, including realized and unrealized gains (losses). The derivative instrument schedules
following the Portfolio of Investments present additional information regarding derivative instruments outstanding at the end of the period, if any.
| 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 | 318,171* |
| * | 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 April 30, 2022:
| Amount of realized gain (loss) on derivatives recognized in income | |||
| Risk exposure category | Futures contracts ($) | Swap contracts ($) | Total ($) |
| Interest rate risk | (223,580) | 22,000 | (201,580) |
| Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
| Risk exposure category | Futures contracts ($) |
| Interest rate risk | 312,504 |
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The following table is a summary
of the average outstanding volume by derivative instrument for the six months ended April 30, 2022:
| Derivative instrument | Average notional amounts ($)* |
| Futures contracts — short | 11,546,672 |
| Derivative instrument | Average unrealized appreciation ($)** | Average unrealized depreciation ($)** |
| Interest rate swap contracts | 760 | (3,870) |
| * | Based on the ending quarterly outstanding amounts for the six months ended April 30, 2022. |
| ** | Based on the ending daily outstanding amounts for the six months ended April 30, 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.
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.
| 28 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 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" in 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.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended April 30,
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 | 0.08 |
| Advisor Class | 0.08 |
| Class C | 0.08 |
| Institutional Class | 0.08 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 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.
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.
Effective March 1, 2022, 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 March 1, 2022, 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 April 30, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 2,948 |
| 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.
| 30 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| March 1, 2022 through February 28, 2023 | Prior to March 1, 2022 | |
| Class A | 0.78% | 0.78% |
| Advisor Class | 0.53 | 0.53 |
| Class C | 1.23 | 1.53 |
| Institutional Class | 0.53 | 0.53 |
| Institutional 2 Class | 0.51 | 0.51 |
| Institutional 3 Class | 0.46 | 0.46 |
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 March 1, 2022, 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.
At April 30, 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) ($) |
| 177,325,000 | 1,726,000 | (9,749,000) | (8,023,000) |
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.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 31 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $19,468,760 and $27,333,140, respectively, for the six months ended April 30, 2022. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended April 30, 2022 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Borrower | 300,000 | 0.84 | 1 |
Interest expense incurred by the
Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at April 30, 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 an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate 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 April 30, 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.
| 32 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
High-yield investments risk
Securities and other debt
instruments held by the Fund that are rated below investment grade (commonly called "high-yield" or "junk" bonds) and unrated debt instruments of comparable quality expose the Fund to a greater risk of loss of
principal and income than a fund that invests solely or primarily in investment grade debt instruments. In addition, these investments have greater price fluctuations, are less liquid and are more likely to experience
a default than higher-rated debt instruments. High-yield debt instruments are considered to be predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal.
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’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause 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 severe
adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further
disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact
Fund performance.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 33 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 objective. Any such events 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.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
| 34 | Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Shareholder concentration risk
At April 30, 2022, one unaffiliated
shareholder of record owned 15.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Affiliated shareholders of
record owned 22.5% of the outstanding shares of the Fund in one or more accounts. Subscription and redemption activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case
of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid
positions. Large redemptions could result in decreased economies of scale and increased operating expenses for non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued 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 are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of its activities as a diversified financial services firm. 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.
| Columbia Strategic New York Municipal Income Fund | Semiannual Report 2022 | 35 |
Liquidity Risk
Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity
risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board
meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021,
through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| 36 | Columbia Strategic New York Municipal Income 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/
SAR205_10_M01_(06/22)
Columbia New York
Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia New York 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 New York Intermediate Municipal Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from New York individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2012
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the
Fund.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2022) | |
| AAA rating | 6.3 |
| AA rating | 24.6 |
| A rating | 52.8 |
| BBB rating | 10.0 |
| B rating | 1.5 |
| Not rated | 4.8 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. 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 New York 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 929.80 | 1,021.24 | 3.56 | 3.73 | 0.74 |
| Advisor Class | 1,000.00 | 1,000.00 | 930.10 | 1,022.49 | 2.36 | 2.47 | 0.49 |
| Class C | 1,000.00 | 1,000.00 | 927.00 | 1,019.00 | 5.72 | 5.99 | 1.19 |
| Institutional Class | 1,000.00 | 1,000.00 | 931.00 | 1,022.49 | 2.36 | 2.47 | 0.49 |
| Institutional 2 Class | 1,000.00 | 1,000.00 | 930.60 | 1,022.79 | 2.07 | 2.17 | 0.43 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 930.10 | 1,023.04 | 1.83 | 1.92 | 0.38 |
| Class V | 1,000.00 | 1,000.00 | 930.30 | 1,021.74 | 3.08 | 3.23 | 0.64 |
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 New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
April 30, 2022 (Unaudited)
April 30, 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 New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 10 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 11 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Money Market Funds 2.8% | ||
| Shares | Value ($) | |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(d) | 100,010 | 100,000 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(d) | 4,963,523 | 4,963,523 |
| Total Money Market Funds (Cost $5,063,523) | 5,063,523 | |
| Total Investments in Securities (Cost: $183,994,613) | 180,596,914 | |
| Other Assets & Liabilities, Net | 2,071,185 | |
| Net Assets | 182,668,099 | |
Notes to Portfolio of
Investments
| (a) | Income from this security may be subject to alternative minimum tax. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $2,449,581, which represents 1.34% of total net assets. |
| (c) | Zero coupon bond. |
| (d) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| BAN | Bond Anticipation Note |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
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.
| 12 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 175,533,391 | — | 175,533,391 |
| Money Market Funds | 5,063,523 | — | — | 5,063,523 |
| Total Investments in Securities | 5,063,523 | 175,533,391 | — | 180,596,914 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 13 |
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $183,994,613) | $180,596,914 |
| Receivable for: | |
| Capital shares sold | 188,802 |
| Interest | 2,421,671 |
| Expense reimbursement due from Investment Manager | 767 |
| Prepaid expenses | 2,348 |
| Trustees’ deferred compensation plan | 95,116 |
| Total assets | 183,305,618 |
| Liabilities | |
| Due to custodian | 4,851 |
| Payable for: | |
| Capital shares purchased | 124,967 |
| Distributions to shareholders | 358,799 |
| Management services fees | 2,354 |
| Distribution and/or service fees | 202 |
| Transfer agent fees | 22,664 |
| Compensation of board members | 10,355 |
| Other expenses | 18,211 |
| Trustees’ deferred compensation plan | 95,116 |
| Total liabilities | 637,519 |
| Net assets applicable to outstanding capital stock | $182,668,099 |
| Represented by | |
| Paid in capital | 186,636,422 |
| Total distributable earnings (loss) | (3,968,323) |
| Total - representing net assets applicable to outstanding capital stock | $182,668,099 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 14 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Class A | |
| Net assets | $16,982,531 |
| Shares outstanding | 1,529,040 |
| Net asset value per share | $11.11 |
| Maximum sales charge | 3.00% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class A shares) | $11.45 |
| Advisor Class | |
| Net assets | $4,760,388 |
| Shares outstanding | 429,231 |
| Net asset value per share | $11.09 |
| Class C | |
| Net assets | $3,513,864 |
| Shares outstanding | 316,323 |
| Net asset value per share | $11.11 |
| Institutional Class | |
| Net assets | $146,890,350 |
| Shares outstanding | 13,226,896 |
| Net asset value per share | $11.11 |
| Institutional 2 Class | |
| Net assets | $4,883,501 |
| Shares outstanding | 439,025 |
| Net asset value per share | $11.12 |
| Institutional 3 Class | |
| Net assets | $1,147,789 |
| Shares outstanding | 102,993 |
| Net asset value per share | $11.14 |
| Class V | |
| Net assets | $4,489,676 |
| Shares outstanding | 404,286 |
| Net asset value per share | $11.11 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $11.66 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 15 |
Statement of Operations
Six Months Ended April 30, 2022 (Unaudited)
Six Months Ended April 30, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $327 |
| Interest | 2,747,452 |
| Total income | 2,747,779 |
| Expenses: | |
| Management services fees | 480,426 |
| Distribution and/or service fees | |
| Class A | 24,385 |
| Class C | 17,700 |
| Class V | 3,685 |
| Transfer agent fees | |
| Class A | 11,950 |
| Advisor Class | 3,576 |
| Class C | 2,391 |
| Institutional Class | 100,845 |
| Institutional 2 Class | 1,262 |
| Institutional 3 Class | 81 |
| Class V | 3,006 |
| Compensation of board members | 9,194 |
| Custodian fees | 829 |
| Printing and postage fees | 6,253 |
| Registration fees | 10,720 |
| Audit fees | 14,629 |
| Legal fees | 5,805 |
| Interest on interfund lending | 19 |
| Compensation of chief compliance officer | 22 |
| Other | 6,129 |
| Total expenses | 702,907 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (155,816) |
| Fees waived by distributor | |
| Class C | (4,031) |
| Total net expenses | 543,060 |
| Net investment income | 2,204,719 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (613,945) |
| Net realized loss | (613,945) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (15,907,321) |
| Net change in unrealized appreciation (depreciation) | (15,907,321) |
| Net realized and unrealized loss | (16,521,266) |
| Net decrease in net assets resulting from operations | $(14,316,547) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 16 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
| Operations | ||
| Net investment income | $2,204,719 | $4,670,467 |
| Net realized gain (loss) | (613,945) | 411,451 |
| Net change in unrealized appreciation (depreciation) | (15,907,321) | 1,823,798 |
| Net increase (decrease) in net assets resulting from operations | (14,316,547) | 6,905,716 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (229,383) | (399,260) |
| Advisor Class | (75,900) | (118,391) |
| Class C | (37,281) | (77,803) |
| Institutional Class | (2,143,937) | (4,035,527) |
| Institutional 2 Class | (57,209) | (84,123) |
| Institutional 3 Class | (16,925) | (26,504) |
| Class V | (60,285) | (109,630) |
| Total distributions to shareholders | (2,620,920) | (4,851,238) |
| Decrease in net assets from capital stock activity | (14,853,056) | (18,739,579) |
| Total decrease in net assets | (31,790,523) | (16,685,101) |
| Net assets at beginning of period | 214,458,622 | 231,143,723 |
| Net assets at end of period | $182,668,099 | $214,458,622 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 17 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2022 (Unaudited) | October 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 85,070 | 991,940 | 348,558 | 4,260,555 |
| Distributions reinvested | 13,140 | 154,738 | 21,303 | 259,677 |
| Redemptions | (248,939) | (2,865,649) | (528,646) | (6,430,053) |
| Net decrease | (150,729) | (1,718,971) | (158,785) | (1,909,821) |
| Advisor Class | ||||
| Subscriptions | 26,403 | 315,512 | 199,900 | 2,437,253 |
| Distributions reinvested | 6,448 | 75,772 | 9,707 | 118,166 |
| Redemptions | (109,494) | (1,257,066) | (50,639) | (617,372) |
| Net increase (decrease) | (76,643) | (865,782) | 158,968 | 1,938,047 |
| Class C | ||||
| Subscriptions | 11,892 | 141,623 | 39,109 | 476,677 |
| Distributions reinvested | 2,552 | 30,078 | 5,177 | 63,111 |
| Redemptions | (33,905) | (395,696) | (235,292) | (2,874,573) |
| Net decrease | (19,461) | (223,995) | (191,006) | (2,334,785) |
| Institutional Class | ||||
| Subscriptions | 428,874 | 4,878,085 | 562,131 | 6,853,396 |
| Distributions reinvested | 32,689 | 384,499 | 56,273 | 685,922 |
| Redemptions | (1,569,524) | (18,091,856) | (2,011,197) | (24,512,912) |
| Net decrease | (1,107,961) | (12,829,272) | (1,392,793) | (16,973,594) |
| Institutional 2 Class | ||||
| Subscriptions | 155,238 | 1,799,711 | 93,240 | 1,138,193 |
| Distributions reinvested | 4,857 | 57,081 | 6,872 | 83,895 |
| Redemptions | (74,774) | (883,237) | (36,868) | (448,169) |
| Net increase | 85,321 | 973,555 | 63,244 | 773,919 |
| Institutional 3 Class | ||||
| Subscriptions | 11,236 | 134,576 | 21,852 | 268,366 |
| Distributions reinvested | 1,225 | 14,449 | 1,806 | 22,090 |
| Redemptions | (13,235) | (154,744) | (8,370) | (102,238) |
| Net increase (decrease) | (774) | (5,719) | 15,288 | 188,218 |
| Class V | ||||
| Subscriptions | 1,767 | 20,172 | 2,290 | 27,897 |
| Distributions reinvested | 3,440 | 40,484 | 5,784 | 70,504 |
| Redemptions | (21,250) | (243,528) | (42,567) | (519,964) |
| Net decrease | (16,043) | (182,872) | (34,493) | (421,563) |
| Total net decrease | (1,286,290) | (14,853,056) | (1,539,577) | (18,739,579) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 18 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
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| Columbia New York 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 4/30/2022 (Unaudited) | $12.09 | 0.11 | (0.95) | (0.84) | (0.12) | (0.02) | (0.14) |
| Year Ended 10/31/2021 | $11.99 | 0.23 | 0.11 | 0.34 | (0.24) | (0.00)(e) | (0.24) |
| Year Ended 10/31/2020 | $12.07 | 0.25 | (0.07) | 0.18 | (0.26) | (0.00)(e) | (0.26) |
| Year Ended 10/31/2019 | $11.46 | 0.29 | 0.61 | 0.90 | (0.29) | — | (0.29) |
| Year Ended 10/31/2018 | $11.91 | 0.31 | (0.44) | (0.13) | (0.31) | (0.01) | (0.32) |
| Year Ended 10/31/2017 | $12.09 | 0.32 | (0.18) | 0.14 | (0.32) | (0.00)(e) | (0.32) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $12.08 | 0.13 | (0.97) | (0.84) | (0.13) | (0.02) | (0.15) |
| Year Ended 10/31/2021 | $11.98 | 0.26 | 0.11 | 0.37 | (0.27) | (0.00)(e) | (0.27) |
| Year Ended 10/31/2020 | $12.06 | 0.28 | (0.07) | 0.21 | (0.29) | (0.00)(e) | (0.29) |
| Year Ended 10/31/2019 | $11.45 | 0.32 | 0.61 | 0.93 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $11.90 | 0.34 | (0.44) | (0.10) | (0.34) | (0.01) | (0.35) |
| Year Ended 10/31/2017 | $12.08 | 0.35 | (0.18) | 0.17 | (0.35) | (0.00)(e) | (0.35) |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $12.10 | 0.09 | (0.97) | (0.88) | (0.09) | (0.02) | (0.11) |
| Year Ended 10/31/2021 | $12.00 | 0.18 | 0.10 | 0.28 | (0.18) | (0.00)(e) | (0.18) |
| Year Ended 10/31/2020 | $12.07 | 0.20 | (0.07) | 0.13 | (0.20) | (0.00)(e) | (0.20) |
| Year Ended 10/31/2019 | $11.46 | 0.24 | 0.61 | 0.85 | (0.24) | — | (0.24) |
| Year Ended 10/31/2018 | $11.91 | 0.26 | (0.44) | (0.18) | (0.26) | (0.01) | (0.27) |
| Year Ended 10/31/2017 | $12.09 | 0.27 | (0.18) | 0.09 | (0.27) | (0.00)(e) | (0.27) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $12.09 | 0.13 | (0.96) | (0.83) | (0.13) | (0.02) | (0.15) |
| Year Ended 10/31/2021 | $11.99 | 0.26 | 0.11 | 0.37 | (0.27) | (0.00)(e) | (0.27) |
| Year Ended 10/31/2020 | $12.07 | 0.28 | (0.07) | 0.21 | (0.29) | (0.00)(e) | (0.29) |
| Year Ended 10/31/2019 | $11.46 | 0.32 | 0.61 | 0.93 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $11.91 | 0.34 | (0.44) | (0.10) | (0.34) | (0.01) | (0.35) |
| Year Ended 10/31/2017 | $12.09 | 0.35 | (0.18) | 0.17 | (0.35) | (0.00)(e) | (0.35) |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $12.11 | 0.13 | (0.96) | (0.83) | (0.14) | (0.02) | (0.16) |
| Year Ended 10/31/2021 | $12.01 | 0.27 | 0.11 | 0.38 | (0.28) | (0.00)(e) | (0.28) |
| Year Ended 10/31/2020 | $12.09 | 0.29 | (0.08) | 0.21 | (0.29) | (0.00)(e) | (0.29) |
| Year Ended 10/31/2019 | $11.48 | 0.33 | 0.61 | 0.94 | (0.33) | — | (0.33) |
| Year Ended 10/31/2018 | $11.93 | 0.35 | (0.44) | (0.09) | (0.35) | (0.01) | (0.36) |
| Year Ended 10/31/2017 | $12.11 | 0.36 | (0.18) | 0.18 | (0.36) | (0.00)(e) | (0.36) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 20 | Columbia New York 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 4/30/2022 (Unaudited) | $11.11 | (7.02%) | 0.90%(c),(d) | 0.74%(c),(d) | 1.95%(c) | 1% | $16,983 |
| Year Ended 10/31/2021 | $12.09 | 2.84% | 0.90% | 0.75%(f) | 1.89% | 3% | $20,315 |
| Year Ended 10/31/2020 | $11.99 | 1.47% | 0.89% | 0.75%(f) | 2.10% | 7% | $22,051 |
| Year Ended 10/31/2019 | $12.07 | 7.96% | 0.90% | 0.75%(f) | 2.46% | 19% | $19,270 |
| Year Ended 10/31/2018 | $11.46 | (1.11%) | 0.89% | 0.75%(f) | 2.68% | 15% | $13,368 |
| Year Ended 10/31/2017 | $11.91 | 1.24% | 0.91%(g) | 0.74%(f),(g) | 2.70% | 9% | $15,639 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $11.09 | (6.99%) | 0.64%(c),(d) | 0.49%(c),(d) | 2.19%(c) | 1% | $4,760 |
| Year Ended 10/31/2021 | $12.08 | 3.09% | 0.65% | 0.50%(f) | 2.14% | 3% | $6,109 |
| Year Ended 10/31/2020 | $11.98 | 1.72% | 0.65% | 0.50%(f) | 2.34% | 7% | $4,155 |
| Year Ended 10/31/2019 | $12.06 | 8.23% | 0.65% | 0.50%(f) | 2.71% | 19% | $1,234 |
| Year Ended 10/31/2018 | $11.45 | (0.87%) | 0.64% | 0.50%(f) | 2.91% | 15% | $745 |
| Year Ended 10/31/2017 | $11.90 | 1.49% | 0.66%(g) | 0.49%(f),(g) | 2.96% | 9% | $1,296 |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $11.11 | (7.30%) | 1.55%(c),(d) | 1.19%(c),(d) | 1.49%(c) | 1% | $3,514 |
| Year Ended 10/31/2021 | $12.10 | 2.37% | 1.65% | 1.20%(f) | 1.45% | 3% | $4,062 |
| Year Ended 10/31/2020 | $12.00 | 1.09% | 1.64% | 1.20%(f),(h) | 1.66% | 7% | $6,319 |
| Year Ended 10/31/2019 | $12.07 | 7.47% | 1.65% | 1.20%(f),(h) | 2.05% | 19% | $9,996 |
| Year Ended 10/31/2018 | $11.46 | (1.56%) | 1.64% | 1.20%(f),(h) | 2.23% | 15% | $12,491 |
| Year Ended 10/31/2017 | $11.91 | 0.78% | 1.66%(g) | 1.19%(f),(g),(h) | 2.25% | 9% | $17,015 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $11.11 | (6.90%) | 0.64%(c),(d) | 0.49%(c),(d) | 2.20%(c) | 1% | $146,890 |
| Year Ended 10/31/2021 | $12.09 | 3.09% | 0.65% | 0.50%(f) | 2.14% | 3% | $173,347 |
| Year Ended 10/31/2020 | $11.99 | 1.72% | 0.64% | 0.50%(f) | 2.36% | 7% | $188,611 |
| Year Ended 10/31/2019 | $12.07 | 8.23% | 0.65% | 0.50%(f) | 2.72% | 19% | $191,680 |
| Year Ended 10/31/2018 | $11.46 | (0.87%) | 0.64% | 0.50%(f) | 2.93% | 15% | $169,671 |
| Year Ended 10/31/2017 | $11.91 | 1.49% | 0.66%(g) | 0.49%(f),(g) | 2.95% | 9% | $197,180 |
| Institutional 2 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $11.12 | (6.94%) | 0.58%(c),(d) | 0.43%(c),(d) | 2.27%(c) | 1% | $4,884 |
| Year Ended 10/31/2021 | $12.11 | 3.16% | 0.58% | 0.43% | 2.21% | 3% | $4,284 |
| Year Ended 10/31/2020 | $12.01 | 1.79% | 0.57% | 0.43% | 2.43% | 7% | $3,489 |
| Year Ended 10/31/2019 | $12.09 | 8.29% | 0.58% | 0.43% | 2.77% | 19% | $3,916 |
| Year Ended 10/31/2018 | $11.48 | (0.77%) | 0.58% | 0.44% | 3.03% | 15% | $1,472 |
| Year Ended 10/31/2017 | $11.93 | 1.56% | 0.58%(g) | 0.42%(g) | 3.02% | 9% | $215 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia New York 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 4/30/2022 (Unaudited) | $12.14 | 0.14 | (0.98) | (0.84) | (0.14) | (0.02) | (0.16) |
| Year Ended 10/31/2021 | $12.03 | 0.28 | 0.12 | 0.40 | (0.29) | (0.00)(e) | (0.29) |
| Year Ended 10/31/2020 | $12.12 | 0.29 | (0.08) | 0.21 | (0.30) | (0.00)(e) | (0.30) |
| Year Ended 10/31/2019 | $11.50 | 0.33 | 0.63 | 0.96 | (0.34) | — | (0.34) |
| Year Ended 10/31/2018 | $11.95 | 0.36 | (0.45) | (0.09) | (0.35) | (0.01) | (0.36) |
| Year Ended 10/31/2017(i) | $11.81 | 0.24 | 0.14(j) | 0.38 | (0.24) | — | (0.24) |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $12.09 | 0.12 | (0.96) | (0.84) | (0.12) | (0.02) | (0.14) |
| Year Ended 10/31/2021 | $11.99 | 0.24 | 0.11 | 0.35 | (0.25) | (0.00)(e) | (0.25) |
| Year Ended 10/31/2020 | $12.07 | 0.26 | (0.07) | 0.19 | (0.27) | (0.00)(e) | (0.27) |
| Year Ended 10/31/2019 | $11.46 | 0.31 | 0.61 | 0.92 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $11.91 | 0.33 | (0.45) | (0.12) | (0.32) | (0.01) | (0.33) |
| Year Ended 10/31/2017 | $12.09 | 0.33 | (0.17) | 0.16 | (0.34) | (0.00)(e) | (0.34) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Annualized. |
| (d) | Ratios include interfund lending expense which is less than 0.01%. |
| (e) | Rounds to zero. |
| (f) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (g) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Institutional 2 Class | Class V |
| 10/31/2017 | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| (h) | 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: |
| 10/31/2020 | 10/31/2019 | 10/31/2018 | 10/31/2017 | |
| Class C | 0.26% | 0.30% | 0.30% | 0.30% |
| (i) | Institutional 3 Class shares commenced operations on March 1, 2017. Per share data and total return reflect activity from that date. |
| (j) | Calculation of the net gain (loss) per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized gain (loss) presented in the Statement of Operations due to the timing of subscriptions and redemptions of Fund shares in relation to fluctuations in the market value of the portfolio. |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 22 | Columbia New York 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 4/30/2022 (Unaudited) | $11.14 | (6.99%) | 0.54%(c),(d) | 0.38%(c),(d) | 2.31%(c) | 1% | $1,148 |
| Year Ended 10/31/2021 | $12.14 | 3.29% | 0.53% | 0.38% | 2.26% | 3% | $1,259 |
| Year Ended 10/31/2020 | $12.03 | 1.75% | 0.53% | 0.39% | 2.45% | 7% | $1,065 |
| Year Ended 10/31/2019 | $12.12 | 8.41% | 0.54% | 0.39% | 2.80% | 19% | $678 |
| Year Ended 10/31/2018 | $11.50 | (0.73%) | 0.54% | 0.38% | 3.05% | 15% | $190 |
| Year Ended 10/31/2017(i) | $11.95 | 3.24% | 0.52%(c) | 0.39%(c) | 3.06%(c) | 9% | $335 |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $11.11 | (6.97%) | 0.80%(c),(d) | 0.64%(c),(d) | 2.05%(c) | 1% | $4,490 |
| Year Ended 10/31/2021 | $12.09 | 2.94% | 0.80% | 0.65%(f) | 1.99% | 3% | $5,083 |
| Year Ended 10/31/2020 | $11.99 | 1.57% | 0.79% | 0.65%(f) | 2.21% | 7% | $5,454 |
| Year Ended 10/31/2019 | $12.07 | 8.07% | 0.80% | 0.65%(f) | 2.59% | 19% | $5,696 |
| Year Ended 10/31/2018 | $11.46 | (1.01%) | 0.79% | 0.65%(f) | 2.78% | 15% | $6,077 |
| Year Ended 10/31/2017 | $11.91 | 1.33% | 0.81%(g) | 0.64%(f),(g) | 2.80% | 9% | $6,533 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 1. Organization
Columbia New York Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class, Institutional 2 Class
and Institutional 3 Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s
prospectus. Class V shares are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized 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 New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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.
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.
Guarantees and indemnifications
Under the Trust’s
organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition,
certain of the Fund’s contracts with its service providers contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown since the amount of any future claims
that may be made against the Fund cannot be determined, and the Fund has no historical basis for predicting the likelihood of any such claims.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 0.47% to 0.31% as the Fund’s net assets increase. The annualized effective management services fee rate for the six months ended April 30, 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" in 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 April 30,
2022, the Fund engaged in cross-trades as follows:
| Purchases ($) | Sales ($) | Net realized gain (loss) ($) |
| 1,243,643 | — | — |
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.
| 26 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The Transfer Agent also receives
compensation from the Fund for various shareholder services and reimbursements for certain out-of-pocket fees. Total transfer agency fees for Institutional 2 Class and Institutional 3 Class shares are subject to an
annual limitation of not more than 0.07% and 0.02%, respectively, of the average daily net assets attributable to each share class.
For the six months ended April 30,
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 | 0.12 |
| Advisor Class | 0.12 |
| Class C | 0.12 |
| Institutional Class | 0.12 |
| Institutional 2 Class | 0.06 |
| Institutional 3 Class | 0.01 |
| Class V | 0.12 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 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.
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.
Effective March 1, 2022, 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 March 1, 2022, 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.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to
an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | 124 |
| Class C | — | 1.00(b) | 100 |
| Class V | 4.75 | 0.50 - 1.00(c) | 499 |
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| March 1, 2022 through February 28, 2023 | Prior to March 1, 2022 | |
| Class A | 0.75% | 0.75% |
| Advisor Class | 0.50 | 0.50 |
| Class C | 1.20 | 1.50 |
| Institutional Class | 0.50 | 0.50 |
| Institutional 2 Class | 0.43 | 0.43 |
| Institutional 3 Class | 0.38 | 0.39 |
| Class V | 0.65 | 0.65 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, 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. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have
voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share
class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Prior to March 1, 2022, 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 New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
At April 30, 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) ($) |
| 183,995,000 | 1,258,000 | (4,656,000) | (3,398,000) |
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 $1,243,643 and $17,806,701, respectively, for the six months ended April 30, 2022. The amount of purchase and
sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6. Interfund
lending
Pursuant to an exemptive order
granted by the Securities and Exchange Commission, the Fund participates in a program (the Interfund Program) allowing each participating Columbia Fund (each, a Participating Fund) to lend money directly to and,
except for closed-end funds and money market funds, borrow money directly from other Participating Funds for temporary purposes. The amounts eligible for borrowing and lending under the Interfund Program are subject
to certain restrictions.
Interfund loans are subject to the
risk that the borrowing fund could be unable to repay the loan when due, and a delay in repayment to the lending fund could result in lost opportunities and/or additional lending costs. The exemptive order is subject
to conditions intended to mitigate conflicts of interest arising from the Investment Manager’s relationship with each Participating Fund.
The Fund’s activity in the
Interfund Program during the six months ended April 30, 2022 was as follows:
| Borrower or lender | Average loan balance ($) | Weighted average interest rate (%) | Number of days with outstanding loans |
| Borrower | 200,000 | 0.85 | 4 |
Interest expense incurred by the
Fund is recorded as Interfund lending in the Statement of Operations. The Fund had no outstanding interfund loans at April 30, 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 an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate 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
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 29 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
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 April 30, 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’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause 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
| 30 | Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
preferences, cyberattacks and espionage) could
have severe adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets,
further disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively
impact Fund performance.
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 objective. Any such events 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.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 31 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2022, one unaffiliated
shareholder of record owned 66.0% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. Subscription and redemption
activity by concentrated accounts may have a significant effect on the operations of the Fund. In the case of a large redemption, the Fund may be forced to sell investments at inopportune times, including its liquid
positions, which may result in Fund losses and the Fund holding a higher percentage of less liquid positions. Large redemptions could result in decreased economies of scale and increased operating expenses for
non-redeeming Fund shareholders.
Note 9. Subsequent
events
Management has evaluated the
events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosure.
Note 10. Information
regarding pending and settled legal proceedings
Ameriprise Financial and certain
of its affiliates are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of its activities as a diversified financial services firm. 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 New York Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Liquidity Risk
Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity
risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board
meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021,
through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| Columbia New York Intermediate Municipal Bond Fund | Semiannual Report 2022 | 33 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR204_10_M01_(06/22)
Columbia
Connecticut Intermediate Municipal Bond Fund
Not FDIC or NCUA Insured •
No Financial Institution Guarantee • May Lose Value
Table of Contents
If you elect to receive the
shareholder report for Columbia Connecticut 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 Connecticut Intermediate Municipal Bond
Fund | Semiannual Report 2022
Fund at a Glance
(Unaudited)
(Unaudited)
Investment objective
The Fund
seeks as high a level of current interest income exempt from federal income tax and, to the extent possible, from Connecticut individual income tax, as is consistent with relative stability of principal.
Portfolio management
Paul Fuchs, CFA
Co-Portfolio Manager
Managed Fund since 2016
Douglas Rangel, CFA
Co-Portfolio Manager
Managed the Fund since June 2022
Anders Myhran, CFA*
Co-Portfolio Manager
Managed Fund since 2019
Prior to June 15, 2022, Deborah Vargo served as a Portfolio Manager of the Fund.
* Anders Myhran has announced that he plans to retire from the Investment Manager effective September 30, 2022. Until then, Mr. Myhran will continue to serve as Co-Portfolio Manager of the
Fund.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 3 |
Fund at a Glance (continued)
(Unaudited)
(Unaudited)
| Quality breakdown (%) (at April 30, 2022) | |
| AAA rating | 14.4 |
| AA rating | 45.6 |
| A rating | 32.4 |
| BBB rating | 5.0 |
| BB rating | 2.6 |
| Total | 100.0 |
Percentages indicated are based
upon total fixed income investments.
Bond ratings apply to the underlying
holdings of the Fund and not the Fund itself and are divided into categories ranging from highest to lowest credit quality, determined by using the middle rating of Moody’s, S&P and Fitch, after dropping the
highest and lowest available ratings. When ratings are available from only two rating agencies, the lower rating is used. When a rating is available from only one rating agency, that rating is used. 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 Connecticut 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 $1,000 = 8.6), then multiply the results by the expenses paid during the period under
the “Actual” column. The amount listed in the “Hypothetical” column assumes a 5% annual rate of return before expenses (which is not the Fund’s actual return) and then applies the
Fund’s actual expense ratio for the period to the hypothetical return. You should not use the hypothetical account values and expenses to estimate either your actual account balance at the end of the period or
the expenses you paid during the period. See “Compare with other funds” below for details on how to use the hypothetical data.
Compare with other funds
Since all mutual funds are
required to include the same hypothetical calculations about expenses in shareholder reports, you can use this information to compare the ongoing cost of investing in the Fund with other funds. To do so, compare the
hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. As you compare hypothetical examples of other funds, it is important to note that hypothetical examples are
meant to highlight the ongoing costs of investing in a fund only and do not reflect any transaction costs, such as sales charges, or redemption or exchange fees. Therefore, the hypothetical calculations are useful in
comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If transaction costs were included in these calculations, your costs would be higher.
| November 1, 2021 — April 30, 2022 | |||||||
| Account value at the beginning of the period ($) | 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 | 931.20 | 1,020.94 | 3.85 | 4.03 | 0.80 |
| Advisor Class | 1,000.00 | 1,000.00 | 931.30 | 1,022.19 | 2.65 | 2.77 | 0.55 |
| Class C | 1,000.00 | 1,000.00 | 929.10 | 1,018.70 | 6.01 | 6.29 | 1.25 |
| Institutional Class | 1,000.00 | 1,000.00 | 931.40 | 1,022.19 | 2.65 | 2.77 | 0.55 |
| Institutional 3 Class | 1,000.00 | 1,000.00 | 932.10 | 1,022.64 | 2.22 | 2.32 | 0.46 |
| Class V | 1,000.00 | 1,000.00 | 930.60 | 1,021.44 | 3.37 | 3.53 | 0.70 |
Expenses paid during the period
are equal to the annualized expense ratio for each class as indicated above, multiplied by the average account value over the period and then multiplied by the number of days in the Fund’s most recent fiscal
half year and divided by 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 Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 5 |
Portfolio of Investments
April 30, 2022 (Unaudited)
April 30, 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 Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 7 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 8 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Money Market Funds 4.0% | ||
| Shares | Value ($) | |
| Dreyfus Tax Exempt Cash Management Fund, Institutional Shares, 0.318%(e) | 229,771 | 229,748 |
| JPMorgan Institutional Tax Free Money Market Fund, Institutional Shares, 0.283%(e) | 2,886,240 | 2,886,240 |
| Total Money Market Funds (Cost $3,116,011) | 3,115,988 | |
| Total Investments in Securities (Cost: $79,641,790) | 78,174,692 | |
| Other Assets & Liabilities, Net | (443,955) | |
| Net Assets | 77,730,737 | |
Notes to Portfolio of
Investments
| (a) | Municipal obligations include debt obligations issued by or on behalf of territories, possessions, or sovereign nations within the territorial boundaries of the United States. At April 30, 2022, the total value of these securities amounted to $900,546, which represents 1.16% of total net assets. |
| (b) | Represents privately placed and other securities and instruments exempt from Securities and Exchange Commission registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. At April 30, 2022, the total value of these securities amounted to $1,944,793, which represents 2.50% of total net assets. |
| (c) | Income from this security may be subject to alternative minimum tax. |
| (d) | Represents a security purchased on a when-issued basis. |
| (e) | The rate shown is the seven-day current annualized yield at April 30, 2022. |
Abbreviation Legend
| AGM | Assured Guaranty Municipal Corporation |
| AMBAC | Ambac Assurance Corporation |
| BAM | Build America Mutual Assurance Co. |
| NPFGC | National Public Finance Guarantee Corporation |
Fair value measurements
The Fund categorizes its fair
value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available.
Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the
Fund’s assumptions about the information market participants would use in pricing an investment. An investment’s level within the fair value hierarchy is based on the lowest level of any input that is
deemed significant to the asset’s or liability’s fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example,
certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.
Fair value inputs are summarized in
the three broad levels listed below:
| ■ | Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date. Valuation adjustments are not applied to Level 1 investments. |
| ■ | Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.). |
| ■ | Level 3 — Valuations based on significant unobservable inputs (including the Fund’s own assumptions and judgment in determining the fair value of investments). |
Inputs that are used in determining
fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary
between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered
by the Investment Manager, along with any other relevant factors in the calculation of an investment’s fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include
periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels
within the hierarchy.
Investments falling into the Level 3
category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency
and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant
unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and
estimated cash flows, and comparable company data.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 9 |
Portfolio of Investments (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Fair value measurements (continued)
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
Under the direction of the Fund’s Board of Trustees (the Board), the Investment Manager’s Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager’s organization, including operations and accounting, trading and investments, compliance, risk management and legal.
The Committee meets at least monthly
to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of
Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendations of third
party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale
pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to
discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members
of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.
The following table is a summary of
the inputs used to value the Fund’s investments at April 30, 2022:
| Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
| Investments in Securities | ||||
| Municipal Bonds | — | 75,058,704 | — | 75,058,704 |
| Money Market Funds | 3,115,988 | — | — | 3,115,988 |
| Total Investments in Securities | 3,115,988 | 75,058,704 | — | 78,174,692 |
See the Portfolio of Investments for
all investment classifications not indicated in the table.
The Fund’s assets assigned to
the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to prices and information from market transactions for similar or identical
assets.
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 10 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Assets and Liabilities
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Assets | |
| Investments in securities, at value | |
| Unaffiliated issuers (cost $79,641,790) | $78,174,692 |
| Receivable for: | |
| Capital shares sold | 96,241 |
| Interest | 988,656 |
| Expense reimbursement due from Investment Manager | 299 |
| Prepaid expenses | 1,326 |
| Trustees’ deferred compensation plan | 87,423 |
| Other assets | 48 |
| Total assets | 79,348,685 |
| Liabilities | |
| Due to custodian | 1,665 |
| Payable for: | |
| Investments purchased on a delayed delivery basis | 1,217,180 |
| Capital shares purchased | 131,160 |
| Distributions to shareholders | 145,101 |
| Management services fees | 1,006 |
| Distribution and/or service fees | 103 |
| Transfer agent fees | 9,231 |
| Compensation of board members | 9,648 |
| Other expenses | 15,431 |
| Trustees’ deferred compensation plan | 87,423 |
| Total liabilities | 1,617,948 |
| Net assets applicable to outstanding capital stock | $77,730,737 |
| Represented by | |
| Paid in capital | 79,394,911 |
| Total distributable earnings (loss) | (1,664,174) |
| Total - representing net assets applicable to outstanding capital stock | $77,730,737 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 11 |
Statement of Assets and Liabilities (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| Class A | |
| Net assets | $7,285,114 |
| Shares outstanding | 740,633 |
| Net asset value per share | $9.84 |
| 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) | $10.14 |
| Advisor Class | |
| Net assets | $1,406,927 |
| Shares outstanding | 143,212 |
| Net asset value per share | $9.82 |
| Class C | |
| Net assets | $1,166,324 |
| Shares outstanding | 118,573 |
| Net asset value per share | $9.84 |
| Institutional Class | |
| Net assets | $60,176,558 |
| Shares outstanding | 6,120,417 |
| Net asset value per share | $9.83 |
| Institutional 3 Class | |
| Net assets | $9,342 |
| Shares outstanding | 948 |
| Net asset value per share(a) | $9.86 |
| Class V | |
| Net assets | $7,686,472 |
| Shares outstanding | 782,588 |
| Net asset value per share | $9.82 |
| Maximum sales charge | 4.75% |
| Maximum offering price per share (calculated by dividing the net asset value per share by 1.0 minus the maximum sales charge for Class V shares) | $10.31 |
| (a) | Net asset value per share rounds to this amount due to fractional shares outstanding. |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| 12 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Operations
Six Months Ended April 30, 2022 (Unaudited)
Six Months Ended April 30, 2022 (Unaudited)
| Net investment income | |
| Income: | |
| Dividends — unaffiliated issuers | $921 |
| Interest | 1,155,850 |
| Total income | 1,156,771 |
| Expenses: | |
| Management services fees | 205,429 |
| Distribution and/or service fees | |
| Class A | 8,972 |
| Class C | 7,066 |
| Class V | 6,162 |
| Transfer agent fees | |
| Class A | 4,083 |
| Advisor Class | 813 |
| Class C | 887 |
| Institutional Class | 39,395 |
| Institutional 3 Class | 1 |
| Class V | 4,681 |
| Compensation of board members | 8,538 |
| Custodian fees | 568 |
| Printing and postage fees | 4,529 |
| Registration fees | 7,805 |
| Audit fees | 14,629 |
| Legal fees | 5,269 |
| Compensation of chief compliance officer | 9 |
| Other | 4,985 |
| Total expenses | 323,821 |
| Fees waived or expenses reimbursed by Investment Manager and its affiliates | (59,445) |
| Fees waived by distributor | |
| Class C | (1,625) |
| Total net expenses | 262,751 |
| Net investment income | 894,020 |
| Realized and unrealized gain (loss) — net | |
| Net realized gain (loss) on: | |
| Investments — unaffiliated issuers | (123,627) |
| Net realized loss | (123,627) |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments — unaffiliated issuers | (6,715,009) |
| Net change in unrealized appreciation (depreciation) | (6,715,009) |
| Net realized and unrealized loss | (6,838,636) |
| Net decrease in net assets resulting from operations | $(5,944,616) |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 13 |
Statement of Changes in Net Assets
| Six Months Ended April 30, 2022 (Unaudited) | Year Ended October 31, 2021 | |
| Operations | ||
| Net investment income | $894,020 | $2,066,819 |
| Net realized gain (loss) | (123,627) | 41,894 |
| Net change in unrealized appreciation (depreciation) | (6,715,009) | (485,902) |
| Net increase (decrease) in net assets resulting from operations | (5,944,616) | 1,622,811 |
| Distributions to shareholders | ||
| Net investment income and net realized gains | ||
| Class A | (69,405) | (161,918) |
| Advisor Class | (15,586) | (27,595) |
| Class C | (11,452) | (26,785) |
| Institutional Class | (750,895) | (1,753,952) |
| Institutional 3 Class | (112) | (3,699) |
| Class V | (83,337) | (190,930) |
| Total distributions to shareholders | (930,787) | (2,164,879) |
| Decrease in net assets from capital stock activity | (9,408,880) | (2,758,010) |
| Total decrease in net assets | (16,284,283) | (3,300,078) |
| Net assets at beginning of period | 94,015,020 | 97,315,098 |
| Net assets at end of period | $77,730,737 | $94,015,020 |
The accompanying Notes to
Financial Statements are an integral part of this statement.
| 14 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Statement of Changes in Net Assets (continued)
| Six Months Ended | Year Ended | |||
| April 30, 2022 (Unaudited) | October 31, 2021 | |||
| Shares | Dollars ($) | Shares | Dollars ($) | |
| Capital stock activity | ||||
| Class A | ||||
| Subscriptions | 105,850 | 1,080,395 | 73,223 | 792,051 |
| Distributions reinvested | 4,947 | 51,138 | 10,295 | 111,102 |
| Redemptions | (84,672) | (894,238) | (101,450) | (1,094,544) |
| Net increase (decrease) | 26,125 | 237,295 | (17,932) | (191,391) |
| Advisor Class | ||||
| Subscriptions | 12,046 | 122,903 | 45,117 | 487,069 |
| Distributions reinvested | 1,499 | 15,482 | 2,541 | 27,367 |
| Redemptions | (7,589) | (78,739) | (3,673) | (39,693) |
| Net increase | 5,956 | 59,646 | 43,985 | 474,743 |
| Class C | ||||
| Subscriptions | 8,001 | 84,685 | 49,497 | 533,718 |
| Distributions reinvested | 1,032 | 10,703 | 2,273 | 24,531 |
| Redemptions | (47,278) | (480,762) | (48,406) | (522,369) |
| Net increase (decrease) | (38,245) | (385,374) | 3,364 | 35,880 |
| Institutional Class | ||||
| Subscriptions | 195,141 | 2,008,853 | 554,611 | 5,992,959 |
| Distributions reinvested | 11,033 | 114,168 | 21,149 | 228,078 |
| Redemptions | (1,079,711) | (11,171,443) | (818,726) | (8,834,335) |
| Net decrease | (873,537) | (9,048,422) | (242,966) | (2,613,298) |
| Institutional 3 Class | ||||
| Distributions reinvested | — | — | 311 | 3,362 |
| Redemptions | — | — | (14,330) | (153,732) |
| Net decrease | — | — | (14,019) | (150,370) |
| Class V | ||||
| Subscriptions | 776 | 8,020 | 1,790 | 19,287 |
| Distributions reinvested | 4,638 | 47,967 | 10,191 | 109,819 |
| Redemptions | (31,035) | (328,012) | (41,297) | (442,680) |
| Net decrease | (25,621) | (272,025) | (29,316) | (313,574) |
| Total net decrease | (905,322) | (9,408,880) | (256,884) | (2,758,010) |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 15 |
Financial Highlights
The following table is intended to
help you understand the Fund’s financial performance. Certain information reflects financial results for a single share of a class held for the periods shown. Per share net investment income (loss) amounts are
calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total return does not reflect payment of sales charges, if any. Total
return and portfolio turnover are not annualized for periods of less than one year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments and certain
derivatives, if any. If such transactions were included, the Fund’s portfolio turnover rate may be higher.
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class A | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.67 | 0.10 | (0.83) | (0.73) | (0.10) | (0.00)(c) | (0.10) |
| Year Ended 10/31/2021 | $10.74 | 0.21 | (0.06) | 0.15 | (0.21) | (0.01) | (0.22) |
| Year Ended 10/31/2020 | $10.68 | 0.24 | 0.06 | 0.30 | (0.24) | — | (0.24) |
| Year Ended 10/31/2019 | $10.16 | 0.27 | 0.53 | 0.80 | (0.28) | — | (0.28) |
| Year Ended 10/31/2018 | $10.56 | 0.27 | (0.37) | (0.10) | (0.28) | (0.02) | (0.30) |
| Year Ended 10/31/2017 | $10.86 | 0.29 | (0.26) | 0.03 | (0.29) | (0.04) | (0.33) |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.66 | 0.11 | (0.84) | (0.73) | (0.11) | (0.00)(c) | (0.11) |
| Year Ended 10/31/2021 | $10.72 | 0.23 | (0.04) | 0.19 | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2020 | $10.67 | 0.27 | 0.05 | 0.32 | (0.27) | — | (0.27) |
| Year Ended 10/31/2019 | $10.15 | 0.30 | 0.53 | 0.83 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $10.54 | 0.30 | (0.37) | (0.07) | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2017 | $10.84 | 0.31 | (0.26) | 0.05 | (0.31) | (0.04) | (0.35) |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.67 | 0.07 | (0.82) | (0.75) | (0.08) | (0.00)(c) | (0.08) |
| Year Ended 10/31/2021 | $10.74 | 0.16 | (0.06) | 0.10 | (0.16) | (0.01) | (0.17) |
| Year Ended 10/31/2020 | $10.68 | 0.19 | 0.06 | 0.25 | (0.19) | — | (0.19) |
| Year Ended 10/31/2019 | $10.16 | 0.23 | 0.52 | 0.75 | (0.23) | — | (0.23) |
| Year Ended 10/31/2018 | $10.55 | 0.23 | (0.37) | (0.14) | (0.23) | (0.02) | (0.25) |
| Year Ended 10/31/2017 | $10.86 | 0.24 | (0.27) | (0.03) | (0.24) | (0.04) | (0.28) |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.67 | 0.11 | (0.84) | (0.73) | (0.11) | (0.00)(c) | (0.11) |
| Year Ended 10/31/2021 | $10.73 | 0.24 | (0.05) | 0.19 | (0.24) | (0.01) | (0.25) |
| Year Ended 10/31/2020 | $10.68 | 0.27 | 0.05 | 0.32 | (0.27) | — | (0.27) |
| Year Ended 10/31/2019 | $10.16 | 0.30 | 0.53 | 0.83 | (0.31) | — | (0.31) |
| Year Ended 10/31/2018 | $10.55 | 0.30 | (0.37) | (0.07) | (0.30) | (0.02) | (0.32) |
| Year Ended 10/31/2017 | $10.86 | 0.31 | (0.27) | 0.04 | (0.31) | (0.04) | (0.35) |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.70 | 0.11 | (0.83) | (0.72) | (0.12) | (0.00)(c) | (0.12) |
| Year Ended 10/31/2021 | $10.76 | 0.25 | (0.05) | 0.20 | (0.25) | (0.01) | (0.26) |
| Year Ended 10/31/2020 | $10.70 | 0.28 | 0.06 | 0.34 | (0.28) | — | (0.28) |
| Year Ended 10/31/2019 | $10.18 | 0.31 | 0.53 | 0.84 | (0.32) | — | (0.32) |
| Year Ended 10/31/2018 | $10.58 | 0.31 | (0.37) | (0.06) | (0.32) | (0.02) | (0.34) |
| Year Ended 10/31/2017(h) | $10.55 | 0.21 | 0.03(i) | 0.24 | (0.21) | — | (0.21) |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| 16 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 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 4/30/2022 (Unaudited) | $9.84 | (6.88%) | 0.94%(d) | 0.80%(d) | 1.85%(d) | 1% | $7,285 |
| Year Ended 10/31/2021 | $10.67 | 1.39% | 0.94% | 0.81%(e) | 1.94% | 9% | $7,627 |
| Year Ended 10/31/2020 | $10.74 | 2.87% | 0.93% | 0.80%(e) | 2.27% | 17% | $7,864 |
| Year Ended 10/31/2019 | $10.68 | 7.95% | 0.93% | 0.80%(e) | 2.59% | 12% | $7,910 |
| Year Ended 10/31/2018 | $10.16 | (0.97%) | 0.92% | 0.81%(e) | 2.63% | 13% | $6,967 |
| Year Ended 10/31/2017 | $10.56 | 0.28% | 0.93%(f) | 0.77%(e),(f) | 2.71% | 6% | $6,424 |
| Advisor Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.82 | (6.87%) | 0.69%(d) | 0.55%(d) | 2.10%(d) | 1% | $1,407 |
| Year Ended 10/31/2021 | $10.66 | 1.74% | 0.69% | 0.56%(e) | 2.19% | 9% | $1,463 |
| Year Ended 10/31/2020 | $10.72 | 3.03% | 0.68% | 0.55%(e) | 2.52% | 17% | $1,000 |
| Year Ended 10/31/2019 | $10.67 | 8.23% | 0.68% | 0.55%(e) | 2.84% | 12% | $801 |
| Year Ended 10/31/2018 | $10.15 | (0.63%) | 0.67% | 0.56%(e) | 2.89% | 13% | $357 |
| Year Ended 10/31/2017 | $10.54 | 0.54% | 0.66%(f) | 0.51%(e),(f) | 2.96% | 6% | $511 |
| Class C | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.84 | (7.09%) | 1.60%(d) | 1.25%(d) | 1.39%(d) | 1% | $1,166 |
| Year Ended 10/31/2021 | $10.67 | 0.94% | 1.69% | 1.26%(e) | 1.49% | 9% | $1,674 |
| Year Ended 10/31/2020 | $10.74 | 2.41% | 1.68% | 1.25%(e),(g) | 1.82% | 17% | $1,647 |
| Year Ended 10/31/2019 | $10.68 | 7.47% | 1.68% | 1.25%(e),(g) | 2.15% | 12% | $2,038 |
| Year Ended 10/31/2018 | $10.16 | (1.32%) | 1.67% | 1.26%(e),(g) | 2.17% | 13% | $2,312 |
| Year Ended 10/31/2017 | $10.55 | (0.27%) | 1.68%(f) | 1.23%(e),(f),(g) | 2.26% | 6% | $3,914 |
| Institutional Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.83 | (6.86%) | 0.69%(d) | 0.55%(d) | 2.09%(d) | 1% | $60,177 |
| Year Ended 10/31/2021 | $10.67 | 1.74% | 0.69% | 0.56%(e) | 2.19% | 9% | $74,626 |
| Year Ended 10/31/2020 | $10.73 | 3.03% | 0.68% | 0.55%(e) | 2.52% | 17% | $77,664 |
| Year Ended 10/31/2019 | $10.68 | 8.22% | 0.68% | 0.55%(e) | 2.83% | 12% | $81,364 |
| Year Ended 10/31/2018 | $10.16 | (0.63%) | 0.67% | 0.56%(e) | 2.87% | 13% | $80,804 |
| Year Ended 10/31/2017 | $10.55 | 0.44% | 0.68%(f) | 0.53%(e),(f) | 2.95% | 6% | $100,370 |
| Institutional 3 Class | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.86 | (6.79%) | 0.61%(d) | 0.46%(d) | 2.19%(d) | 1% | $9 |
| Year Ended 10/31/2021 | $10.70 | 1.84% | 0.59% | 0.46% | 2.30% | 9% | $10 |
| Year Ended 10/31/2020 | $10.76 | 3.23% | 0.58% | 0.45% | 2.62% | 17% | $161 |
| Year Ended 10/31/2019 | $10.70 | 8.32% | 0.57% | 0.45% | 2.94% | 12% | $10 |
| Year Ended 10/31/2018 | $10.18 | (0.61%) | 0.57% | 0.45% | 2.99% | 13% | $10 |
| Year Ended 10/31/2017(h) | $10.58 | 2.31% | 0.56%(d) | 0.45%(d) | 3.02%(d) | 6% | $10 |
The accompanying Notes to Financial
Statements are an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 17 |
Financial Highlights (continued)
| Net asset value, beginning of period | Net investment income | Net realized and unrealized gain (loss) | Total from investment operations | Distributions from net investment income | Distributions from net realized gains | Total distributions to shareholders | |
| Class V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $10.66 | 0.10 | (0.83) | (0.73) | (0.11) | (0.00)(c) | (0.11) |
| Year Ended 10/31/2021 | $10.72 | 0.22 | (0.05) | 0.17 | (0.22) | (0.01) | (0.23) |
| Year Ended 10/31/2020 | $10.67 | 0.25 | 0.05 | 0.30 | (0.25) | — | (0.25) |
| Year Ended 10/31/2019 | $10.15 | 0.28 | 0.53 | 0.81 | (0.29) | — | (0.29) |
| Year Ended 10/31/2018 | $10.54 | 0.28 | (0.36) | (0.08) | (0.29) | (0.02) | (0.31) |
| Year Ended 10/31/2017 | $10.85 | 0.30 | (0.27) | 0.03 | (0.30) | (0.04) | (0.34) |
| Notes to Financial Highlights | |
| (a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund’s reported expense ratios. |
| (b) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
| (c) | Rounds to zero. |
| (d) | Annualized. |
| (e) | The benefits derived from expense reductions had an impact of less than 0.01%. |
| (f) | Expenses have been reduced due to a reimbursement of expenses overbilled by a third party. If the reimbursement had been excluded, the expense ratios would have been higher by the percentages shown for each class in the table below. All fee waivers and expense reimbursements by the Investment Manager and its affiliates were applied before giving effect to this third party reimbursement. |
| Year Ended | Class A | Advisor Class | Class C | Institutional Class | Class V |
| 10/31/2017 | 0.04% | 0.05% | 0.03% | 0.03% | 0.03% |
| (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: |
| 10/31/2020 | 10/31/2019 | 10/31/2018 | 10/31/2017 | |
| Class C | 0.25% | 0.30% | 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.
| 18 | Columbia Connecticut 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 V | |||||||
| Six Months Ended 4/30/2022 (Unaudited) | $9.82 | (6.94%) | 0.84%(d) | 0.70%(d) | 1.95%(d) | 1% | $7,686 |
| Year Ended 10/31/2021 | $10.66 | 1.59% | 0.84% | 0.71%(e) | 2.04% | 9% | $8,615 |
| Year Ended 10/31/2020 | $10.72 | 2.88% | 0.83% | 0.70%(e) | 2.37% | 17% | $8,979 |
| Year Ended 10/31/2019 | $10.67 | 8.06% | 0.83% | 0.70%(e) | 2.69% | 12% | $9,167 |
| Year Ended 10/31/2018 | $10.15 | (0.78%) | 0.82% | 0.71%(e) | 2.73% | 13% | $9,477 |
| Year Ended 10/31/2017 | $10.54 | 0.28% | 0.83%(f) | 0.68%(e),(f) | 2.80% | 6% | $10,456 |
The accompanying Notes to Financial Statements are
an integral part of this statement.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 19 |
Notes to Financial Statements
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Note 1. Organization
Columbia Connecticut Intermediate
Municipal Bond Fund (the Fund), a series of Columbia Funds Series Trust I (the Trust), is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts business trust.
Fund shares
The Trust may issue an unlimited
number of shares (without par value). The Fund offers each of the share classes listed in the Statement of Assets and Liabilities. Although all share classes generally have identical voting, dividend and liquidation
rights, each share class votes separately when required by the Trust’s organizational documents or by law. Each share class has its own expense and sales charge structure. Different share classes may have
different minimum initial investment amounts and pay different net investment income distribution amounts to the extent the expenses of distributing such share classes vary. Distributions to shareholders in a
liquidation will be proportional to the net asset value of each share class.
As described in the Fund’s
prospectus, Class A and Class C shares are offered to the general public for investment. Class C shares automatically convert to Class A shares after 8 years. Advisor Class, Institutional Class and Institutional 3
Class are available through authorized investment professionals to omnibus retirement plans or to institutional investors and to certain other investors as also described in the Fund’s prospectus. Class V shares
are available only to investors who received (and who continuously held) Class V shares in connection with previous fund reorganizations.
Note 2. Summary of
significant accounting policies
Basis of preparation
The Fund is an investment company
that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services - Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires
management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
The following is a summary of
significant accounting policies followed by the Fund in the preparation of its financial statements.
Security valuation
Debt securities generally are
valued by pricing services approved by the Board of Trustees based upon market transactions for normal, institutional-size trading units of similar securities. The services may use various pricing techniques that take
into account, as applicable, factors such as yield, quality, coupon rate, maturity, type of issue, trading characteristics and other data, as well as approved independent broker-dealer quotes. Debt securities for
which quotations are not readily available or not believed to be reflective of market value may also be valued based upon a bid quote from an approved independent broker-dealer. Debt securities maturing in 60 days or
less are valued primarily at amortized 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.
| 20 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 21 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 April 30, 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" in 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.
| 22 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
For the six months ended April 30,
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 | 0.11 |
| Advisor Class | 0.11 |
| Class C | 0.11 |
| Institutional Class | 0.11 |
| Institutional 3 Class | 0.02 |
| Class V | 0.11 |
An annual minimum account balance
fee of $20 may apply to certain accounts with a value below the applicable share class’s initial minimum investment requirements to reduce the impact of small accounts on transfer agency fees. These minimum
account balance fees are remitted to the Fund and recorded as part of expense reductions in the Statement of Operations. For the six months ended April 30, 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.
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.
Effective March 1, 2022, 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 March 1, 2022, 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.
Shareholder services fees
The Fund has adopted a shareholder
services plan that permits it to pay for certain services provided to Class V shareholders by their selling and/or servicing agents. The Fund may pay shareholder servicing fees up to an aggregate annual rate of 0.40%
of the Fund’s average daily net assets attributable to Class V shares (comprised of up to 0.20% for shareholder services and up to 0.20% for administrative support services). These fees are currently limited to
an aggregate annual rate of not more than 0.15% of the Fund’s average daily net assets attributable to Class V shares.
Sales charges
Sales charges, including front-end
charges and contingent deferred sales charges (CDSCs), received by the Distributor for distributing Fund shares for the six months ended April 30, 2022, if any, are listed below:
| Front End (%) | CDSC (%) | Amount ($) | |
| Class A | 3.00 | 0.75(a) | — |
| Class C | — | 1.00(b) | — |
| Class V | 4.75 | 0.50 - 1.00(c) | — |
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 23 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
| (a) | This charge is imposed on certain investments of $500,000 or more if redeemed within 12 months after purchase. |
| (b) | This charge applies to redemptions within 12 months after purchase, with certain limited exceptions. |
| (c) | This charge is imposed on certain investments of between $1 million and $50 million redeemed within 18 months after purchase, as follows: 1.00% if redeemed within 12 months after purchase, and 0.50% if redeemed more than 12, but less than 18, months after purchase, with certain limited exceptions. |
The Fund’s other share
classes are not subject to sales charges.
Expenses waived/reimbursed by the
Investment Manager and its affiliates
The Investment Manager and certain
of its affiliates have contractually agreed to waive fees and/or reimburse expenses (excluding certain fees and expenses described below) for the period(s) disclosed below, unless sooner terminated at the sole
discretion of the Board of Trustees, so that the Fund’s net operating expenses, after giving effect to fees waived/expenses reimbursed and any balance credits and/or overdraft charges from the Fund’s
custodian, do not exceed the following annual rate(s) as a percentage of the classes’ average daily net assets:
| March 1, 2022 through February 28, 2023 | Prior to March 1, 2022 | |
| 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 3 Class | 0.46 | 0.46 |
| Class V | 0.71 | 0.71 |
Under the agreement governing
these fee waivers and/or expense reimbursement arrangements, the following fees and expenses are excluded from the waiver/reimbursement commitment, and therefore will be paid by the Fund, if applicable: taxes
(including foreign transaction taxes), expenses associated with investments in affiliated and non-affiliated pooled investment vehicles (including mutual funds and exchange-traded funds), transaction costs and
brokerage commissions, costs related to any securities lending program, dividend expenses associated with securities sold short, inverse floater program fees and expenses, transaction charges and interest on borrowed
money, interest, 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. In addition to the contractual agreement, the Investment Manager and certain of its affiliates have
voluntarily agreed to waive fees and/or reimburse Fund expenses (excluding certain fees and expenses described above) so that Fund level expenses (expenses directly attributable to the Fund and not to a specific share
class) are waived proportionately across all share classes. This arrangement may be revised or discontinued at any time. Prior to March 1, 2022, 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.
At April 30, 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) ($) |
| 79,642,000 | 781,000 | (2,248,000) | (1,467,000) |
Tax cost of investments and
unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.
| 24 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Management of the Fund has
concluded that there are no significant uncertain tax positions in the Fund that would require recognition in the financial statements. However, management’s conclusion may be subject to review and adjustment at
a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally, the Fund’s federal tax returns for the
prior three fiscal years remain subject to examination by the Internal Revenue Service.
Note 5. Portfolio
information
The cost of purchases and
proceeds from sales of securities, excluding short-term investments and derivatives, if any, aggregated to $1,217,180 and $8,950,029, respectively, for the six months ended April 30, 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 April 30, 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 an agreement between the Fund and certain other funds managed by the Investment Manager
or an affiliated investment manager, severally and not jointly, permits aggregate 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 April 30, 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.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 25 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
Interest rate risk
Interest rate risk is the risk of
losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt 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’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause 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 severe
adverse impacts on regional and/or global securities and commodities markets, including markets for oil and natural gas. These impacts may include reduced market liquidity, distress in credit markets, further
disruption of global supply chains, increased risk of inflation, and limited access to investments in certain international markets and/or issuers. These developments and other related events could negatively impact
Fund performance.
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
| 26 | Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 2022 (Unaudited)
and epidemics in emerging market countries may be
greater due to generally less established healthcare systems, governments and financial markets. Public health crises caused by the COVID-19 outbreak may exacerbate other pre-existing political, social and economic
risks in certain countries or globally. The disruptions caused by COVID-19 could prevent the Fund from executing advantageous investment decisions in a timely manner and negatively impact the Fund’s ability to
achieve its investment objective. Any such events 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.
Non-diversification risk
A non-diversified fund is permitted
to invest a greater percentage of its total assets in fewer issuers than a diversified fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of
the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund’s value will likely be more volatile than the value of a more diversified fund.
Shareholder concentration risk
At April 30, 2022, one unaffiliated
shareholder of record owned 65.9% of the outstanding shares of the Fund in one or more accounts. The Fund has no knowledge about whether any portion of those shares was owned beneficially. 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 Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 27 |
Notes to Financial Statements (continued)
April 30, 2022 (Unaudited)
April 30, 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 are involved in the normal course of business in legal proceedings which include regulatory inquiries, arbitration and litigation, including class actions concerning matters arising in connection
with the conduct of its activities as a diversified financial services firm. 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 Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 |
Liquidity Risk
Management Program
(Unaudited)
Pursuant to Rule 22e-4 under the
1940 Act, the Fund has adopted a liquidity risk management program (Program). The Program’s principal objectives include assessing, managing and periodically reviewing the Fund’s liquidity risk. Liquidity
risk is defined as the risk that the Fund could not meet redemption requests without significant dilution of remaining investors’ interests in the Fund.
The Board has appointed the
Investment Manager as the program administrator for the Fund’s Program. The Investment Manager has delegated oversight of the Program to its Liquidity Risk Management Committee (the Committee). At a board
meeting during the fiscal period, the Committee provided the Board with a report addressing the operations of the program and assessing its adequacy and effectiveness of implementation for the period January 1, 2021,
through December 31, 2021, including:
| • | the Fund had sufficient liquidity to both meet redemptions and operate effectively on behalf of shareholders; |
| • | there were no material changes to the Program during the period; |
| • | the implementation of the Program was effective to manage the Fund’s liquidity risk; and |
| • | the Program operated adequately during the period. |
There can be no assurance that the
Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an
investment in the Fund may be subject.
| Columbia Connecticut Intermediate Municipal Bond Fund | Semiannual Report 2022 | 29 |
Please read and consider the
investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus and summary prospectus, which contains this and other important information about the Fund, go to
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/. The Fund is distributed by Columbia Management Investment Distributors, Inc., member FINRA, and managed by Columbia Management Investment Advisers, LLC.
Columbia Threadneedle Investments
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies. All rights reserved.
© 2022 Columbia Management Investment
Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR131_10_M01_(06/22)