SEC Form N-CSRS filed by Columbia Seligman Premium Technology Growth Fund Inc
$STK
Investment Managers
Finance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-22328
(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: Last Day of December
Date of reporting period: June 30, 2025
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 Seligman Premium
Technology Growth Fund, Inc.
Semiannual Report
June 30, 2025 (Unaudited)
Not FDIC or NCUA Insured | No Financial Institution Guarantee | May Lose Value |
(Unaudited)
Under the managed distribution policy of Columbia Seligman Premium Technology Growth Fund, Inc. (the Fund) and subject
to the approval of the Fund’s Board of Directors (the Board), the Fund expects to make quarterly cash distributions (in
February, May, August and November) to holders of common stock (Common Stockholders). The Fund’s most recent
distribution under its managed distribution policy (paid on August 26, 2025) amounted to $0.4625 per share, which is equal
to a quarterly rate of 1.4871% (5.95% annualized) of the Fund’s market price of $31.10 per share as of July 31, 2025. You
should not draw any conclusions about the Fund’s investment performance from the amount of the distributions or from the
terms of the Fund’s managed distribution policy. Historically, the Fund has at times distributed more than its income and net
realized capital gains, which has resulted in Fund distributions substantially consisting of return of capital or other capital
source. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back
to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be
confused with ‘yield’ or ‘income’. The Fund’s Board may determine in the future that the Fund’s managed distribution policy
and the amount or timing of the distributions should not be continued in light of changes in the Fund’s portfolio holdings,
market or other conditions or factors, including that the distribution rate under such policy may not be dependent upon the
amount of the Fund’s earned income or realized capital gains. The Board could also consider amending or terminating the
current managed distribution policy because of potential adverse tax consequences associated with maintaining the policy.
In certain situations, returns of capital could be taxable for federal income tax purposes, and all or a portion of the Fund’s
capital loss carryforwards from prior years, if any, could effectively be forfeited. The Board may amend or terminate the
Fund’s managed distribution policy at any time without prior notice to Fund stockholders; any such change or termination
may have an adverse effect on the market price of the Fund’s shares.
See Notes to Financial Statements for additional information related to the Fund’s managed distribution policy.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Table of Contents
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40 |
Columbia Seligman Premium Technology Growth Fund, Inc. (the Fund) mails one stockholder report to each stockholder
address. If you would like more than one report, please call shareholder services at 800.937.5449 and additional reports will
be sent to you.
Proxy voting policies and procedures
The policy of the Board is to vote the proxies of the companies in which the Fund holds investments consistent with the
procedures that can be found by visiting
columbiathreadneedleus.com/investor/
. Information regarding how the Fund voted
proxies relating to portfolio securities is filed with the SEC by August 31 for the most recent 12-month period ending June 30
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 800.937.5449.
Additional Fund information
For more information, go online to
columbiathreadneedleus.com/investor/
; or call Equiniti Trust Company, LLC, the Fund’s
Stockholder Servicing and Transfer Agent, at 866.666.1532. Customer Service Representatives are available to answer your
questions Monday through Friday from 8 a.m. to 8 p.m. Eastern time.
Fund investment manager
Columbia Management Investment Advisers, LLC (the Investment Manager)
290 Congress Street
Boston, MA 02210
Fund transfer agent
Equinity Trust Company, LLC
6201 15th Avenue
Brooklyn, NY 11219
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fund at a Glance
(Unaudited)
Portfolio management
Paul Wick
Lead Portfolio Manager
Managed Fund since 2009
Braj Agrawal
Co-Portfolio Manager
Managed Fund since 2010
Christopher Boova
Co-Portfolio Manager
Managed Fund since 2016
Jeetil Patel
Technology Team Member
Managed Fund since 2015
Vimal Patel
Technology Team Member
Managed Fund since 2018
Shekhar Pramanick
Technology Team Member
Managed Fund since 2018
Price Per Share | ||||
June 30, 2025 | March 31, 2025 | December 31, 2024 | ||
Market Price ($) | 30.41 | 27.98 | 31.95 | |
Net Asset Value ($) | 29.95 | 27.53 | 31.84 | |
Distributions Paid Per Common Share | |
Payable Date | Per Share Amount ($) |
January 21, 2025 | 3.2669 (a) |
February 25, 2025 | 0.4625 |
May 27, 2025 | 0.4625 |
(a) The Fund paid this special 2024 fourth quarter distribution beyond its typical quarterly managed distribution
policy to stockholders of record on December 16, 2024.
The net asset value of the Fund’s shares may not always correspond to the market price of such shares.
Common stock of many closed-end funds frequently trade at a discount from their net asset value. The Fund is
subject to stock market risk, which is the risk that stock prices overall will decline over short or long periods,
adversely affecting the value of an investment in the Fund.
2
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fund at a Glance
(continued)
(Unaudited)
The tables below show the investment makeup of the Fund represented as a percentage of Fund net assets as of June 30,
2025. Derivatives are excluded from the tables unless otherwise noted. The Fund’s portfolio composition is subject to
change.
Top Holdings | |
NVIDIA Corp. | 6.3 % |
Broadcom, Inc. | 6.2 % |
Lam Research Corp. | 6.1 % |
Microsoft Corp. | 5.5 % |
Bloom Energy Corp., Class A | 4.8 % |
Alphabet, Inc., Class A | 4.1 % |
Applied Materials, Inc. | 3.4 % |
Apple, Inc. | 3.3 % |
Visa, Inc., Class A | 2.9 % |
Oracle Corp. | 2.7 % |
Equity Sector Allocation | |
Information Technology | 69.9 % |
Communication Services | 13.9 % |
Financials | 6.5 % |
Industrials | 6.4 % |
Consumer Discretionary | 3.0 % |
Information Technology Sub-industry Allocation | |
Semiconductors | 22.6 % |
Systems Software | 13.5 % |
Semiconductor Materials & Equipment | 11.2 % |
Technology Hardware, Storage & Peripherals | 8.9 % |
Application Software | 5.4 % |
Communications Equipment | 3.6 % |
Internet Services & Infrastructure | 3.1 % |
Electronic Equipment & Instruments | 1.1 % |
Other | 0.5 % |
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
3
Fund Investment Objective, Strategies, Policies
and Principal Risks
(Unaudited)
Fund Investment Objective
The Fund’s investment objective is to seek growth of capital and current income. The Fund’s investment objective is
non-fundamental and may be changed by the Board without approval of the Fund’s stockholders.
Fund Investment Strategies and Policies
Under normal market conditions, the Fund invests at least 80% of its “Managed Assets” (as defined below) in a portfolio of
equity securities of technology and technology-related companies that Columbia Management Investment Advisers, LLC
(the Investment Manager) believes offer attractive opportunities for capital appreciation. Under normal market conditions,
the Fund’s investment program consists primarily of (i) investing in a portfolio of common stocks of technology and
technology-related companies that seeks to exceed the total return, before fees and expenses, of the S&P North American
Technology Sector Index (described further below) and (ii) writing call options on the NASDAQ 100 Index
®
, an unmanaged
index of the 100 largest non-financial domestic and international companies listed on the NASDAQ Stock Market based on
market capitalization, or an exchange-traded fund (ETF) equivalent (the NASDAQ 100) on a month-to-month basis, with an
aggregate notional amount typically ranging from 0%-90% of the underlying value of the Fund’s holdings of common stock
(the Rules-based Option Strategy, as further described below). The Fund expects to generate current income from premiums
received from writing call options on the NASDAQ 100. The Fund concentrates its investments in technology and
technology-related stocks. The Fund may invest in companies of any size, including small-, mid-, and large-cap companies,
as well as foreign companies.
Technology and technology-related companies in which the Fund invests are companies operating in the information
technology and communications services sectors, as well as other related industries, applying a global industry
classification standard, as it may be amended from time to time, to determine industry/sector classifications. These related
industry companies may also include companies operating in the consumer discretionary and healthcare sectors,
particularly those that are principally engaged in offering or developing products, processes, or services that benefit
significantly from technological advances and improvements. By way of example, technology and technology-related
companies may include semiconductor, semiconductor equipment, technology hardware, storage and peripherals, software,
communication equipment and services, electronic equipment and instruments, internet services and infrastructure, media,
health care equipment and supplies, and medical technology companies. The Fund tends to focus its technology and
technology-related investments on companies in the information technology sector and/or the semiconductor and
semiconductor equipment industry.
In determining the level (i.e., 0% to 90%) of call options to be written on the NASDAQ 100, the Investment Manager’s
Rules-based Option Strategy is based on the CBOE NASDAQ-100 Volatility Index
SM
(the VXN Index). The VXN Index
measures the market’s expectation of 30-day volatility implicit in the prices of near-term NASDAQ 100 Index options. The
VXN Index, which is quoted in percentage points (e.g., 19.36), is a leading barometer of investor sentiment and market
volatility relating to the NASDAQ 100 Index. In general, the Investment Manager intends to write more call options when
market volatility, as represented by the VXN Index, is high (and premiums received for writing the option are high) and write
fewer call options when market volatility, as represented by the VXN Index, is low (and premiums for writing the option are
low).
4
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
The Fund’s Rules-based Option Strategy with respect to writing call options is as follows:
When the VXN Index is: | Aggregate Notional Amount of Written Call Options as a Percentage of the Fund’s Holdings in Common Stocks |
17 or less | 25% |
Greater than 17, but less than 18 | Increase up to 50% |
At least 18, but less than 33 | 50% |
At least 33, but less than 34 | Increase up to 90% |
At least 34, but less than 55 | 90% |
At 55 or greater | 0% to 90% |
In addition to the Rules-based Option Strategy, the Fund may write additional calls with aggregate notional amounts of up to
25% of the value of the Fund’s holdings in common stock (to a maximum of 90% when aggregated with the call options
written pursuant to the Rules-based Option Strategy) when the Investment Manager believes call premiums are attractive
relative to the risk of the price of the NASDAQ 100. The Fund may also close (or buy back) a written call option if the
Investment Manager believes that a substantial amount of the premium (typically, 70% or more) to be received by the Fund
has been captured before exercise, potentially reducing the call position to 0% of total equity until additional calls are written.
The Fund, subject to the above-mentioned aggregate notional amount of 90% of the underlying value of the Fund’s holdings
of common stock, may also buy or write other call and put options on securities, indices, ETFs and market baskets of
securities to generate additional income or return or to provide the portfolio with downside protection.
The S&P North American Technology Sector Index is a benchmark that represents U.S. securities classified under the GICS
®
information technology sector as well as the internet and direct marketing retail, interactive home entertainment, and
interactive media and services sub-industries.
The Fund’s investment policy of investing at least 80% of its Managed Assets in equity securities of technology and
technology-related companies and its policy with respect to the use of the Rules-based Option Strategy on a month-to-month
basis may be changed by the Board without stockholder approval only with 60 days’ prior written notice to
stockholders.
The Fund is a non-diversified fund. A non-diversified fund is permitted to invest a greater percentage of its total assets in
fewer issuers than a diversified fund. This policy may not be changed without a stockholder vote.
The Fund has a fundamental policy of investing at least 25% of the value of its Managed Assets in technology and
technology-related stocks. This policy may not be changed without a stockholder vote.
The Fund may also invest: up to 15% of its Managed Assets in illiquid securities (i.e., securities that at the time of purchase
are not readily marketable); up to 20% of its Managed Assets in debt securities (including convertible and non-convertible
debt securities), such as debt securities issued by technology and technology-related companies and obligations of the
U.S. Government, its agencies and instrumentalities, and government-sponsored enterprises, as well as below-investment
grade securities (i.e., high-yield or junk bonds); and up to 25% of its Managed Assets in equity securities of companies
organized outside of the United States. The Fund may hold foreign securities of issuers located or doing substantial
business in emerging markets. Each of these policies may be changed by the Board without stockholder approval.
The Fund has other fundamental policies that may not be changed without a stockholder vote. Under these policies, the
Fund may not:
• Purchase or sell commodities or commodity contracts, except to the extent permissible under applicable law and
interpretations, as they may be amended from time to time, and except this shall not prevent the Fund from buying or selling
options, futures contracts and foreign currency or from entering into forward currency contracts or from investing in
securities or other instruments backed by, or whose value is derived from, physical commodities;
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
5
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
• Issue senior securities or borrow money, except as permitted by the Investment Company Act of 1940, as amended (1940
Act) or any rule thereunder, any Securities and Exchange Commission (SEC) or SEC staff interpretations thereof or any
exemptions therefrom which may be granted by the SEC;
• Make loans, except as permitted by the 1940 Act or any rule thereunder, any SEC or SEC staff interpretations thereof or any
exemptions therefrom which may be granted by the SEC;
• Underwrite the securities of other issuers, except insofar as the Fund may be deemed an underwriter under the Securities
Act of 1933 (1933 Act) in disposing of a portfolio security or in connection with investments in other investment companies;
• Buy or sell real estate, unless acquired as a result of ownership of securities or other instruments, except this shall not
prevent the Fund from investing in securities or other instruments backed by real estate or securities of companies engaged
in the real estate business or real estate investment trusts; and
• Invest 25% or more of its Managed Assets (as defined below), at market value, in the securities of issuers in any particular
industry, except that the Fund will invest at least 25% of the value of its Managed Assets in technology and technology-related
stocks (in which the Fund intends to concentrate) and may invest without limit in securities issued or guaranteed by
the U.S. Government, its agencies or instrumentalities, or government-sponsored enterprises, as described in the Fund’s
prospectus, which may be amended from time to time.
“Managed Assets” means the net asset value of the Fund’s outstanding common shares plus any liquidation preference of
any issued and outstanding shares of Fund preferred stock ("Preferred Shares") and the principal amount of any borrowings
used for leverage.
Certain of the Fund’s fundamental policies set forth above prohibit transactions “except as permitted by the 1940 Act or any
rule thereunder, any SEC or SEC staff interpretations thereof or any exemptions therefrom which may be granted by the
SEC.” The following discussion summarizes the flexibility that the Fund currently gains from these exceptions. To the extent
the 1940 Act or the rules and regulations thereunder may, in the future, be amended to provide greater flexibility, or to the
extent the SEC may in the future grant exemptive relief providing greater flexibility, the Fund will be able to use that flexibility
without seeking shareholder approval of its fundamental policies.
Issuing senior securities — A “senior security” is an obligation with respect to the earnings or assets of a company that takes
precedence over the claims of that company’s common stock with respect to the same earnings or assets. The 1940 Act
limits a closed-end fund’s issuance of senior securities, but Rule 18f-4 provides relief from that prohibition as to certain
transactions that could be considered issuances of senior securities, provided that the Fund complies with its conditions.
The exception in the fundamental policy allows the Fund to operate in accordance with Rule 18f-4.
Borrowing money — The 1940 Act permits the Fund to borrow up to 33 1/3% of its Managed Assets, plus an additional 5% of
its Managed Assets for temporary purposes. The Fund’s compliance with its policy on borrowing is not determined by
applying the time of purchase standard.
Making loans — The 1940 Act generally prohibits the Fund from making loans to affiliated persons but does not otherwise
restrict the Fund’s ability to make loans.
Under the 1940 Act, the Fund’s fundamental policies may not be changed without the approval of the holders of a “majority
of the outstanding” common shares and, if issued, preferred shares voting together as a single class, and of the holders of a
“majority of the outstanding” preferred shares voting as a separate class. When used with respect to particular shares of the
Fund, a “majority of the outstanding” shares means the lesser of: (i) 67% or more of the shares present at a stockholder
meeting, if the holders of more than 50% of the outstanding shares are present at the meeting or represented by proxy, or (ii)
more than 50% of the outstanding shares of the Fund.
Principal
Ris
ks6
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
An investment in the Fund involves risks. The principal risks of investing in the Fund are provided below. There is no
assurance that the Fund will achieve its investment objective and you may lose money. The value of the Fund’s holdings may
decline, and the Fund’s net asset value (NAV) and share price may go down. An investment in the Fund is not a bank deposit
and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The
significance of any specific risk to an investment in the Fund will vary over time depending on the composition of the Fund’s
portfolio, market conditions, and other factors. You should read all of the risk information below carefully, because any one
or more of these risks may result in losses to the Fund. See also the Fund’s "Significant Risks" in the Notes to Financial
Statements section.
Active Management Risk
.
The Fund is actively man
a
ged and its performance therefore will reflect, in part, the ability of the portfolio managers to make investment decisions that seek to achieve the Fund’s investment objective. Due to its active
management, the Fund could underperform its benchmark index and/or other funds with similar investment objectives
and/or strategies.
Counterparty Risk
. The risk exists that a counterparty to a transaction in a financial instrument held by the Fund or by a
special purpose or structured vehicle in which the Fund invests may become insolvent or otherwise fail to perform its
obligations, including making payments to the Fund, due to financial difficulties. The Fund may obtain no or limited recovery
in a bankruptcy or other reorganizational proceedings, and any recovery may be significantly delayed. Transactions that the
Fund enters into may involve counterparties in the financial services sector and, as a result, events affecting the financial
services sector may cause the Fund’s NAV to fluctuate.
Credit Risk.
Credit risk is the risk that the value of debt instruments may decline if the issuer thereof 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. Various factors could affect the actual or perceived willingness or ability of the issuer to
make timely interest or principal payments, including changes in the financial condition of the issuer or in general economic
conditions. Credit rating agencies, such as S&P Global Ratings, Moody’s Ratings, Fitch, DBRS and KBRA, assign credit
ratings to certain debt instruments to indicate their credit risk. A rating downgrade by such agencies can negatively impact
the value of such instruments. Lower-rated or unrated instruments held by the Fund may present increased credit risk as
compared to higher-rated instruments. Non-investment grade debt instruments may be subject to greater price fluctuations
and are more likely to experience a default than investment grade debt instruments and therefore may expose the Fund to
increased credit risk. If the Fund purchases unrated instruments, or if the ratings of instruments held by the Fund are
lowered after purchase, the Fund will depend on analysis of credit risk more heavily than usual.
Derivatives Risk.
Derivatives may involve sig
n
ificant risks. Derivatives are financial instruments, tra
ded on an exchange or in the over-the-counter (OTC) markets, with a value in relation to, or derived from, the value of an underlying asset(s) (such as a
security, commodity or currency) or other reference, such as an index, rate or other economic indicator (each an underlying
reference). Derivatives may include those that are privately placed or otherwise exempt from SEC registration, including
certain Rule 144A eligible securities. Derivatives could result in Fund losses if the underlying reference does not perform as
anticipated. Use of derivatives is a highly specialized activity that can involve investment techniques, risks, and tax planning
different from those associated with more traditional investment instruments. The Fund’s derivatives strategy may not be
successful and use of certain derivatives could result in substantial, potentially unlimited, losses to the Fund regardless of
the Fund’s actual investment. A relatively small movement in the price, rate or other economic indicator associated with the
underlying reference may result in substantial losses for the Fund. Derivatives may be more volatile than other types of
investments. Derivatives can increase the Fund’s risk exposure to underlying references and their attendant risks, including
the risk of an adverse credit event associated with the underlying reference (credit risk), the risk of an adverse movement in
the value, price or rate of the underlying reference (market risk), the risk of an adverse movement in the value of underlying
currencies (foreign currency risk) and the risk of an adverse movement in underlying interest rates (interest rate risk).
Derivatives may expose the Fund to additional risks, including the risk of loss due to a derivative position that is imperfectly
correlated with the underlying reference it is intended to hedge or replicate (correlation risk), the risk that a counterparty will
fail to perform as agreed (counterparty risk), the risk that a hedging strategy may fail to mitigate losses, and may offset
gains (hedging risk), the risk that the return on an investment may not keep pace with inflation (inflation risk), the risk that
losses may be greater than the amount invested (leverage risk), the risk that the Fund may be unable to sell an investment at
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
7
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
an advantageous time or price (liquidity risk), the risk that the investment may be difficult to value (pricing risk), and the risk
that the price or value of the investment fluctuates significantly over short periods of time (volatility risk). The value of
derivatives may be influenced by a variety of factors, including national and international political and economic
developments. Potential changes to the regulation of the derivatives markets may make derivatives more costly, may limit
the market for derivatives, or may otherwise a
dve
rsely
affect the value or performance
of derivatives.Derivatives Risk – Options Risk.
Options are derivatives that give the purchaser the option to buy (call) or sell (put) an
underlying reference from or to a counterparty at a specified price (the strike price) on or before an expiration date. The Fund
may purchase or write (i.e., sell) put and call options on an underlying reference it is otherwise permitted to invest in. When
writing options, the Fund is exposed to the risk that it may be required to buy or sell the underlying reference at a
disadvantageous price on or before the expiration date. If the Fund sells a put option, the Fund may be required to buy the
underlying reference at a strike price that is above market price, resulting in a loss. If the Fund sells a call option, the Fund
may be required to sell the underlying reference at a strike price that is below market price, resulting in a loss. If the Fund
sells a call option that is not covered (it does not own the underlying reference), the Fund’s losses are potentially unlimited.
Options may involve economic leverage, which could result in greater volatility in price movement. Options may be traded on
a securities exchange or in the over-the-counter market. At or prior to maturity of an options contract, the Fund may enter
into an offsetting contract and may incur a loss to the extent there has been adverse movement in options prices. Options
can increase the Fund’s risk exposure to underlying references and their attendant risks such as credit risk, market risk,
foreign currency risk and interest rate risk, while potentially exposing the Fund to correlation risk, counterparty risk, hedging
risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.
Foreign Securities Risk.
Investments in or exposure to securities of foreign companies m
a
y involve heightened risks relative to investments in or exposure to securities of U.S. companies. For example, foreign markets can be extremely volatile.
Foreign securities may also be less liquid, making them more difficult to trade, than securities of U.S. companies so that the
Fund may, at times, be unable to sell foreign securities at desirable times or prices. Brokerage commissions, custodial costs
and other fees are also generally higher for foreign securities. The Fund may have limited or no legal recourse in the event of
default with respect to certain foreign securities, including those issued by foreign governments. In addition, foreign
governments may impose withholding or other taxes on the Fund’s income, capital gains or proceeds from the disposition
of foreign securities, which could reduce the Fund’s return on such securities. In some cases, such withholding or other
taxes could potentially be confiscatory. Other risks include: possible delays in the settlement of transactions or in the
payment of income; generally less publicly available information about foreign companies; the impact of economic, political,
social, diplomatic or other conditions or events (including, for example, military confrontations and actions, war, other
conflicts, terrorism and disease/virus outbreaks and epidemics), possible seizure, expropriation or nationalization of a
company or its assets or the assets of a particular investor or category of investors; accounting, auditing and financial
reporting standards that may be less comprehensive and stringent than those applicable to domestic companies; the
imposition of economic and other sanctions against a particular foreign country, its nationals or industries or businesses
within the country; and the generally less stringent standard of care to which local agents may be held in the local markets.
In addition, it may be difficult to obtain reliable information about the securities and business operations of certain foreign
issuers. Governments or trade groups may compel local agents to hold securities in designated depositories that are not
subject to independent evaluation. The less developed a country’s securities market is, the greater the level of risks.
Economic sanctions may be, and have been, imposed against certain countries, organizations, companies, entities and/or
individuals. Economic sanctions and other similar governmental actions could, among other things, effectively restrict or
eliminate the Fund’s ability to purchase or sell securities, and thus may make the Fund’s investments in such securities less
liquid or more difficult to value. In addition, as a result of economic sanctions, the Fund may be forced to sell or otherwise
dispose of investments at inopportune times or prices, which could result in losses to the Fund and increased transaction
costs. These conditions may be in place for a substantial period of time and enacted with limited advance notice to the
Fund. The risks posed by sanctions against a particular foreign country, its nationals or industries or businesses within the
country may be heightened to the extent the Fund invests significantly in the affected country or region or in issuers from
the affected country that depend on global markets. Additionally, investments in certain countries may subject the Fund to a
number of tax rules, the application of which may be uncertain. Countries may amend or revise their existing tax laws,
regulations and/or procedures in the future, possibly with retroactive effect. Changes in or uncertainties regarding the laws,
8
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
regulations or procedures of a country could reduce the after-tax profits of the Fund, directly or indirectly, including by
reducing the after-tax profits of companies located in such countries in which the Fund invests, or result in unexpected tax
liabilities for the Fund. The performance of the Fund may also be negatively affected by fluctuations in a foreign currency’s
strength or weakness relative to the U.S. dollar, particularly to the extent the Fund invests a significant percentage of its
assets in foreign securities or other assets denominated in currencies other than the U.S. dollar. Currency rates in foreign
countries may fluctuate significantly over short or long periods of time for a number of reasons, including changes in
interest rates, imposition of currency exchange controls and economic or political developments in the U.S. or abroad. The
Fund may also incur curre
nc
y conversion costs when converting foreign currencies into U.S. dollars and vice versa.Interest Rate Risk.
Interest rate risk is the ri
s
k of losses attributable to changes in interest rates. In general, if interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Changes
in the value of a debt instrument usually will not affect the amount of income the Fund receives from it but will generally
affect the value of your investment in the Fund. Changes in interest rates may also affect the liquidity of the Fund’s
investments in debt instruments. In general, the longer the maturity or duration of a debt instrument, the greater its
sensitivity to changes in interest rates. For example, a three-year duration means a bond is expected to decrease in value by
3% if interest rates rise 1% and increase in value by 3% if interest rates fall 1%. Interest rate declines also may increase
prepayments of debt obligations, which, in turn, would increase prepayment risk (the risk that the Fund will have to reinvest
the money received in securities that have lower yields). The Fund is subject to the risk that the income generated by its
investments may not keep pace with inflation. 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. Such
action
s m
ay negatively affect the value of debt instruments held by the Fund, resulting in a negative impact on the Fund’s performance and NAV. Any interest rate increases could cause the value of the Fund’s investments in debt instruments to
decrease.
Issuer Risk.
An issuer in which the Fund invests or to which it has exposure may perform poorly or below expectations and
the value of its securities may therefore decline, which may negatively affect the Fund’s performance. Underperformance of
an issuer may be caused by poor management decisions, competitive pressures, breakthroughs in technology, reliance on
suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military
confrontations and actions, war, other conflicts, terrorism, disease/virus outbreaks, epidemics or other events, conditions
and factors which may impair the value of your investment in the Fund and could result in a greater premium or discount
between the market price and the NAV of the Fund’s shares and wider bid/ask
sp
reads than those experienced by other closed-end funds.
Small- and Mid-Cap Stock Risk.
Securities of small- and mid-cap companies can, in certain circumstances, have a higher
potential for gains than securities of larger companies but are more likely to have more risk than larger companies. For
example, small- and mid-cap companies may be more vulnerable to market downturns and adverse business or economic
events than larger companies because they may have more limited financial resources and business operations. Small- and
mid-cap companies are also more likely than larger companies to have more limited product lines and operating histories
and to depend on smaller and generally less experienced management teams. Securities of small- and mid-cap companies
may trade less frequently and in smaller volumes and may be less liquid and fluctuate more sharply in value than securities
of larger companies. When the Fund takes significant positions in small- and mid-cap companies with limited trading
volumes, the liquidation of those positions, particularly in a distressed market, could be prolonged and result in Fund
investment losses that would affect the value of your investment in the Fund. In addition, some small- and mid-cap
companies may not be widely followed by the investment community, which can lower the demand for their stocks.
Large-Cap Stock Risk.
Investments in larger, more established comp
an
ies (larger companies), may involve certain risks associated with their larger size. For instance, larger companies may be less able to respond quickly to new competitive
challenges, such as changes in consumer tastes or innovation from smaller competitors. Also, larger companies are
sometimes less able to achieve as high growth rates as successful smaller companies, especially during extended periods
of economic expansion.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
9
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
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
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, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues,
recessions, depressions or other event
s
– or the potential for such events – could have a significant negative impact on global economic and market conditions and could result in a greater premium or discount between the market price and the
NAV of the Fund’s shares and wider bid/ask spreads than those experienced by other closed-end funds.
Market Trading Discount Risk.
The Fund’s Common Shares can and have traded at a discount to the Fund’s NAV. The shares
of closed-end management investment companies frequently trade at a discount from their NAV. This is a risk separate and
distinct from the risk that the Fund’s NAV may decrease.
Non-Diversified Fund Risk.
The Fund is non-diversified, which generally means that it may invest a greater percentage of its
total assets in the securities of 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.
Offering Risk.
The provisions of the 1940 Act generally require that the public offering price of an investment company’s
common shares (less any underwriting commissions and discounts) must equal or exceed the NAV per share of an
investment company’s common stock (calculated within 48 hours of pricing), plus any sales commission charged in
connection with the offering. In the offering described in the Fund’s current Prospectus, the Fund may, subject to market
conditions, raise additional equity capital by issuing new Common Shares from time to time in varying amounts at a net
price at or above the Fund’s NAV per Common Share (calculated within 48 hours of pricing). To the extent that Fund
Common Shares do not trade at a premium, the Fund may be unable to issue additional Common Shares, and may incur
costs associated with maintaining an “at the market” program without the potential benefits. The offering described in the
Fund’s Prospectus may allow the Fund to pursue additional investment opportunities without the need to sell existing
portfolio investments and will increase the asset size of the Fund and thus cause the Fund’s fixed expenses to be spread
over a larger asset base. However, the issuance may not necessarily result in an increase to net income for stockholders,
which depends upon available investment opportunities and other factors. The Fund cannot predict whether its Common
Shares will trade in the future at a premium to Fund NAV per Common Share. Shares of common stock of closed-end
investment companies frequently trade at a discount from NAV, which may increase investors’ risk of loss. In no event will
Common Shares be issued at a price below the Fund’s NAV per Common Share (calculated within 48 hours of pricing) plus
any sales commission charged in connection with the offering. The offering described in the Fund’s Prospectus entails
potential risks to existing common stockholders. Although the issuance of additional Common Shares may facilitate a more
active market in the Fund’s Common Shares by increasing the amount of Common Shares outstanding, the issuance of
additional Common Shares may also have an adverse effect on prices for the Fund’s Common Shares in the secondary
market by increasing the supply of Common Shares available for sale. The issuance of additional Common Shares will dilute
the voting power of already outstanding Common Shares.
Secondary Market for the Common Shares Risk.
The issuance of Common Shares through the Fund’s Prospectus offering
may have an adverse effect on the secondary market for the Common Shares. The increase in the amount of the Fund’s
outstanding Common Shares resulting from this offering may put downward pressure on the market price for the Common
Shares of the Fund. Common Shares will not be issued pursuant to the offering at any time when Common Shares are
trading at a price lower than a price equal to the Fund’s NAV per Common Share plus the per Common Share amount of
commissions. The Fund also issues Common Shares of the Fund through its Dividend In
v
estment Plan. See “Dividend 10
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
Investment Plan” in the Fund’s Prospectus. Common Shares may be issued under the p
la
n at a discount to the market price for such Common Shares, which may put downward pressure on the market price for Common Shares of the Fund. When
the Common Shares are trading at a premium, the Fund may also issue Common Shares of the Fund that are sold through
transactions effected on the NYSE. The increase in the amount of the Fund’s outstanding Common Shares resulting from
that offering may also put downward pressure on the market price for the Common Shares of the Fund. The voting power of
current Common Stockholders will be diluted to the extent that such stockholders do not purchase shares in any future
Common Share offerings or do not purchase sufficient shares to maintain their percentage interest. In addition, if the
Investment Manager is unable to invest the proceeds of such offering as intended, the Fund’s per share distribution may
decrease (or may consist of return of capital) and the Fund may not participate in market advanc
e
s to the same extent as if such proceeds were fully invested as
pl
ann
ed.Sector Risk
.
At times, the Fund may have a significant portion of its assets invested in securities of companies conducting
business in a related group of industries within one or more economic sectors, including the communication services sector
and information technology sector. Companies in the same sector may be similarly affected by economic, regulatory,
political or market events or conditions, which may make the Fund vulnerable to unfavorable developments in that group of
industries or economic sector.
Communication Services Sector and Information Technology Sector.
The Fund is vulnerable to the particular risks that may
affect companies in the communication services sector and the information technology sector. Companies in these sectors
are subject to certain risks, including the risk that new services, equipment or technologies will not be accepted by
consumers and businesses or will become rapidly obsolete. Performance of such companies may be affected by factors
including obtaining and protecting patents (or the failure to do so) and significant competitive pressures, including
aggressive pricing of their products or services, new market entrants, competition for market share and short product cycles
due to an accelerated rate of technological developments. Such competitive pressures may lead to limited earnings and/or
falling profit margins. As a result, the value of their securities may fall or fail to rise. In addition, many communication
services sector and information technology sector companies have limited operating histories and prices of these
companies’ securities historically have been more volatile than other securities, especially over the short term. Some
companies in these sectors are facing increased government and regulatory scrutiny and may be subject to adverse
government or regulatory action, which could negatively impact the value of their securities.
Semiconductor and Semiconductor Equipment Industry Risk.
The Fu
n
d’s investment in the semiconductor and semiconductor equipment industry subjects the Fund to the risks of investments in the industry, including: intense competition, both
domestically and internationally, including competition from subsidized foreign competitors with lower production costs;
wide fluctuations in securities prices due to risks of rapid obsolescence of products and related technology; economic
performance of the customers of semiconductor and related companies; their research costs and the risks that their
products may not prove commercially successful; and thin capitalization and limited product lines, markets, financial
resources or quality management and personnel. Semiconductor design and process methodologies are subject to rapid
technological change requiring large expenditures, potentially requiring financing that may be difficult or impossible to
obtain, for research and development in order to improve product performance and increase manufacturing yields. These
companies rely on a combination of patents, trade secret laws and contractual provisions to protect their technologies. The
process of seeking patent protection can be long and expensive. The industry is characterized by frequent litigation
regarding patent and other intellectual property rights, which may require such companies to defend against competitors’
assertions of intellectual property infringement or misappropriation. Some companies are also engaged in other lines of
business unrelated to the semiconductor business, and these companies may experience problems with these lines of
business that could adversely affect their operating results. The international operations of many companies expose them
to the risks associated with instability and changes in economic and political conditions, foreign currency fluctuations,
changes in foreign regulations, tariffs, and trade disputes. Business conditions in this industry can change rapidly from
periods of strong demand to periods of weak demand. Any future downturn in the industry could harm the business and
operating results of these companies. The stock prices of companies in the industry have been and will likely continue to be
volatile relative to the overall market.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
11
Fund Investment Objective, Strategies, Policies
and Principal Risks
(continued)
(Unaudited)
Transactions in Derivatives.
The Fund may enter into derivative tran
s
actions or otherwise have exposure to derivative transactions through underlying investments. Derivatives are financial contracts whose values are, for example, based on (or
“derived” from) traditional securities (such as a stock or bond), assets (such as a commodity like gold or a foreign currency),
reference rates (such as the Secured Overnight Financing Rate (commonly known as SOFR)) or market indices (such as the
Standard & Poor’s 500
®
Index). The use of derivatives is a highly specialized activity which involves investment techniques
and risks different from those associated with ordinary portfolio securities transactions. Derivatives involve special risks and
may result in losses or may limit the Fund’s potential gain from favorable market movements. Derivative strategies often
involve leverage, which may exaggerate a loss, potentially causing the Fund to lose more money than it would have lost had
it invested in the underlying security or other asset directly. The values of derivatives may move in unexpected ways,
especially in unusual market conditions, and may result in increased volatility in the value of the derivative and/or the Fund’s
shares, among other consequences. The use of derivatives may also increase the amount of taxes payable by stockholders
holding shares in a taxable account. See the
Taxation
section in the Fund’s Statement of Additional Information for more
information. Other risks arise from the Fund’s potential inability to terminate or to sell derivative positions. A liquid secondary
market may not always exist for the Fund’s derivative positions at times when the Fund might wish to terminate or to sell
such positions. Over-the-counter instruments (investments not traded on an exchange) may be illiquid, and transactions in
derivatives traded in the over-the-counter market are subject to the risk that the other party will not meet its obligations. The
use of derivatives also involves the risks of mispricing or improper valuation and that changes in the value of the derivative
may not correlate perfectly with the underlying security, asset, reference rate or index. The Fund also may not be able to find
a suitable derivative transaction counterparty, and thus may be unable to engage in derivative transactions when it is
deemed favorable to do so, or at all. The U.S. government and the European Union (and some other jurisdictions) have
enacted regulations and similar requirements that prescribe clearing, margin, reporting and registration requirements for
participants in the derivatives market. These requirements are evolving and their ultimate impact on the Fund remains
unclear, but such impact could include restricting and/or imposing significant costs or other burdens upon the Fund’s
participation in derivatives transactions. Additionally regulations governing the use of derivatives by registered investment
companies, such as the Fund require, among other things, that a fund that invests in derivative instruments beyond a
specified limited amount apply a value-at-risk-based limit to its portfolio and establish a comprehensive derivatives risk
management program. As of the date of this report, the Fund is required to maintain a comprehensive derivatives risk
management program. For
more
information on the risks of derivative investments and strategies, see the Statement of Additional In
for
mation.12
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Fees and Expenses and Share Price Data
(Unaudited)
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell Common Shares.
You may pay other
fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and
examples below.
|
Stockholder Transaction Expenses |
|
|
Dividend Investment Plan and Stock Repurchase Program Fees |
(a ) |
|
Annual Expenses ( |
|
|
Management fees (b) |
|
|
Other expenses |
|
|
Acquired fund fees and expenses |
|
|
Total Annual Expenses (c) |
|
(a)
There are no servi
ce
or brokerage charges to participants in the dividend investment plan; however, the Fund reserves the right to amend the plan to include a service charge payable to the Fund by the participants. The Fund reserves the right to amend the plan to provide for payment of brokerage fees by the plan participants in the
event the plan is changed to provide for open market purchases of Fund Common Stock on behalf of plan participants. You will pay brokerage charges if you direct your
broker or the plan agent to sell your Common Shares that you acquired pursuant to this plan. The expenses of administering the Fund’s Dividend Investment Plan and
Stock Repurchase Program are included in “Other Expenses” of the Fund. You may also pay a pro rata share of brokerage commissions incurred in connection with
open-market purchases pursuant to the Fund’s Stock Repurchase Program.
(b)
The Fund’s management fee is 1.06% of the Fund’s average daily Managed Assets (which means the net asset value of Fund’s outstanding common stock plus the
liquidation preference of any issued and outstanding preferred stock of the Fund and the principal amount of any borrowing used for leverage). The management fee
rate noted in the table reflects the rate paid by Common Stockholders as a percentage of the Fund’s net assets attributable to Common Stock.
(c)
“Total Annual Expenses" include acquired fund fees and expenses (expenses the Fund incurs indirectly through its investments in other investment companies) and
may be higher than “Total gross expenses” shown in the
Financial Highlights
section of this report because “Total gross expenses” does not include acquired fund fees
and expenses.
Example
The following example is intended to help you compare the cost of investing in the Fund with the cost of investing in other
funds. The example illustrates the hypothetical expenses that you would incur over the time periods indicated, and assumes
that:
• you invest $1,000 in the Fund for the periods indicated,
• your investment has a 5% return each year, and
• the Fund’s total annual operating expenses remain the same as shown in the Annual Fund Operating Expenses table above.
Although your actual costs may be higher or lower, based on the assumptions listed above, your costs would be:
|
|
1 year |
3 years |
5 years |
10 years |
|
Columbia Seligman Premium Technology Growth Fund, Inc. Common Stock |
$ |
$ |
$ |
$ |
The purpose of the tables above is to assist you in understanding the various costs and expenses you will bear directly or
indirectly.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
13
Fees and Expenses and Share Price Data
(continued)
(Unaudited)
Share Price Data
The Fund’s Common Stock is traded primarily on the New York Stock Exchange (the Exchange). The following table shows
the high and low closing prices of the Fund’s Common Stock on the Exchange for each calendar quarter since the beginning
of 2023, as well as the net asset values and the range of the percentage (discounts)/premiums to net asset value per share
that correspond to such prices.
|
|
Market Price ($) |
Corresponding NAV ($) |
Corresponding (Discount)/Premium to NAV (%) |
|||
|
|
High |
Low |
High |
Low |
High |
Low |
|
2023 |
|
|
|
|
|
|
|
1 st Quarter |
|
|
|
|
|
|
|
2 nd Quarter |
|
|
|
|
|
|
|
3 rd Quarter |
|
|
|
|
|
|
|
4 th Quarter |
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
1 st Quarter |
|
|
|
|
|
|
|
2 nd Quarter |
|
|
|
|
|
|
|
3 rd Quarter |
|
|
|
|
|
|
|
4 th Quarter |
|
|
|
|
|
( ) |
|
2025 |
|
|
|
|
|
|
|
1 st Quarter |
|
|
|
|
( ) |
|
|
2 nd Quarter |
|
|
|
|
|
|
The Fund’s Common Stock has historically fluctuated between trading on the market at a discount to net asset value and at
a premium to net asset value. The closing market price, net asset value and percentage (discount)/premium to net asset
value per share of the Fund’s Common Stock on June 30, 2025 were $30.41 , $29.95 , and 1.54 %, respectively.
14
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Portfolio of Investments
June 30, 2025 (Unaudited)
(Percentages represent value of investments compared to net assets)
Investments in securities
Common Stocks 99.7% | ||
Issuer | Shares | Value ($) |
Communication Services 13.9% | ||
Cable & Satellite 0.5% | ||
Comcast Corp., Class A | 71,100 | 2,537,559 |
Interactive Home Entertainment 0.8% | ||
Electronic Arts, Inc. | 26,200 | 4,184,140 |
Interactive Media & Services 11.7% | ||
Alphabet, Inc., Class A (a) | 122,020 | 21,503,585 |
Alphabet, Inc., Class C | 54,700 | 9,703,233 |
Match Group, Inc. | 259,900 | 8,028,311 |
Meta Platforms, Inc., Class A | 17,470 | 12,894,432 |
Pinterest, Inc., Class A (b) | 208,726 | 7,484,914 |
TripAdvisor, Inc. (b) | 92,354 | 1,205,220 |
Total | 60,819,695 | |
Movies & Entertainment 0.9% | ||
Walt Disney Co. (The) | 40,100 | 4,972,801 |
Total Communication Services | 72,514,195 | |
Consumer Discretionary 3.0% | ||
Broadline Retail 3.0% | ||
Amazon.com, Inc. (a),(b) | 44,100 | 9,675,099 |
eBay, Inc. (a) | 78,670 | 5,857,768 |
Total | 15,532,867 | |
Total Consumer Discretionary | 15,532,867 | |
Financials 6.5% | ||
Transaction & Payment Processing Services 6.5% | ||
Block, Inc., Class A (b) | 72,650 | 4,935,115 |
Global Payments, Inc. | 136,669 | 10,938,987 |
Shift4 Payments, Inc., Class A (b) | 30,046 | 2,977,859 |
Visa, Inc., Class A (a) | 42,625 | 15,134,006 |
Total | 33,985,967 | |
Total Financials | 33,985,967 | |
Industrials 6.4% | ||
Heavy Electrical Equipment 4.8% | ||
Bloom Energy Corp., Class A (b) | 1,048,634 | 25,083,325 |
Passenger Ground Transportation 1.6% | ||
Lyft, Inc., Class A (b) | 513,400 | 8,091,184 |
Total Industrials | 33,174,509 | |
Information Technology 69.9% | ||
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Application Software 5.4% | ||
BILL Holdings, Inc. (b) | 36,900 | 1,706,994 |
DocuSign, Inc. (b) | 22,217 | 1,730,482 |
Dropbox, Inc., Class A (b) | 122,535 | 3,504,501 |
RingCentral, Inc., Class A (b) | 159,583 | 4,524,178 |
Salesforce, Inc. | 29,487 | 8,040,810 |
Synopsys, Inc. (b) | 12,835 | 6,580,248 |
Unity Software, Inc. (b) | 87,700 | 2,122,340 |
Total | 28,209,553 | |
Communications Equipment 3.6% | ||
Arista Networks, Inc. (b) | 64,496 | 6,598,586 |
Cisco Systems, Inc. | 124,100 | 8,610,058 |
F5, Inc. (b) | 12,176 | 3,583,640 |
Total | 18,792,284 | |
Electronic Components 0.5% | ||
Coherent Corp. (b) | 30,400 | 2,711,984 |
Electronic Equipment & Instruments 1.1% | ||
Advanced Energy Industries, Inc. | 43,849 | 5,809,992 |
Internet Services & Infrastructure 3.1% | ||
GoDaddy, Inc., Class A (b) | 52,224 | 9,403,453 |
Wix.com Ltd. (b) | 43,528 | 6,897,447 |
Total | 16,300,900 | |
Semiconductor Materials & Equipment 11.2% | ||
Applied Materials, Inc. (a) | 98,571 | 18,045,393 |
Lam Research Corp. (a) | 324,799 | 31,615,935 |
Teradyne, Inc. | 97,549 | 8,771,606 |
Total | 58,432,934 | |
Semiconductors 22.6% | ||
Analog Devices, Inc. | 11,994 | 2,854,812 |
Broadcom, Inc. (a) | 117,633 | 32,425,535 |
Marvell Technology, Inc. | 159,092 | 12,313,721 |
NVIDIA Corp. (a) | 208,630 | 32,961,454 |
NXP Semiconductors NV | 40,600 | 8,870,694 |
ON Semiconductor Corp. (b) | 71,500 | 3,747,315 |
Renesas Electronics Corp. | 480,800 | 5,948,185 |
Semtech Corp. (b) | 132,555 | 5,983,533 |
Synaptics, Inc. (b) | 133,898 | 8,679,268 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
15
Portfolio of Investments
(continued)
June 30, 2025 (Unaudited)
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 17,800 | 4,031,522 |
Total | 117,816,039 | |
Systems Software 13.5% | ||
Adeia, Inc. | 294,425 | 4,163,170 |
Check Point Software Technologies Ltd. (b) | 9,300 | 2,057,625 |
Gen Digital, Inc. | 421,998 | 12,406,741 |
Microsoft Corp. (a) | 57,525 | 28,613,510 |
Oracle Corp. | 63,010 | 13,775,876 |
Palo Alto Networks, Inc. (b) | 20,766 | 4,249,554 |
Tenable Holdings, Inc. (b) | 140,748 | 4,754,468 |
Total | 70,020,944 | |
Technology Hardware, Storage & Peripherals 8.9% | ||
Apple, Inc. (a) | 83,700 | 17,172,729 |
Hewlett Packard Enterprise Co. | 279,000 | 5,705,550 |
NetApp, Inc. | 99,352 | 10,585,956 |
Sandisk Corp. (b) | 24,063 | 1,091,257 |
Common Stocks (continued) | ||
Issuer | Shares | Value ($) |
Western Digital Corp. | 178,989 | 11,453,506 |
Total | 46,008,998 | |
Total Information Technology | 364,103,628 | |
Total Common Stocks (Cost: $252,240,825) | 519,311,166 | |
Money Market Funds 1.1% | ||
Shares | Value ($) | |
Columbia Short-Term Cash Fund, 4.473% (c),(d) | 5,862,597 | 5,861,425 |
Total Money Market Funds (Cost: $5,860,505) | 5,861,425 | |
Total Investments in Securities (Cost $258,101,330) | 525,172,591 | |
Other Assets & Liabilities, Net | (4,247,523 ) | |
Net Assets | $520,925,068 | |
At June 30, 2025, securities and/or cash totaling $173,208,830 were pledged as collateral.
Investments in derivatives
Call option contracts written | ||||||||
Description | Counterparty | Trading currency | Notional amount | Number of contracts | Exercise price/Rate | Expiration date | Premium received ($) | Value ($) |
Apple, Inc. | Morgan Stanley | USD | (1,456,707 ) | (71 ) | 220.00 | 11/21/2025 | (73,053 ) | (66,385 ) |
NASDAQ 100 Index | Morgan Stanley | USD | (251,737,011 ) | (111 ) | 22,625.00 | 07/18/2025 | (1,224,358 ) | (4,215,225 ) |
Total | (1,297,411 ) | (4,281,610 ) | ||||||
Notes to Portfolio of Investments
(a) | This security or a portion of this security has been pledged as collateral in connection with derivative contracts. |
(b) | Non-income producing investment. |
(c) | The rate shown is the seven-day current annualized yield at June 30, 2025. |
(d) | Under Section 2(a)(3) of the Investment Company Act of 1940, an affiliated company is one in which the Fund owns 5% or more of the company’s outstanding voting securities, or a company which is under common ownership or control with the Fund. The value of the holdings and transactions in these affiliated companies during the period ended June 30, 2025 are as follows: |
Affiliated issuers | Beginning of period($) | Purchases($) | Sales($) | Net change in unrealized appreciation (depreciation)($) | End of period($) | Realized gain (loss)($) | Dividends($) | End of period shares |
Columbia Short-Term Cash Fund, 4.473% | ||||||||
16,091,932 | 110,154,419 | (120,384,975 ) | 49 | 5,861,425 | (627 ) | 256,206 | 5,862,597 | |
Abbreviation Legend
ADR | American Depositary Receipt |
The accompanying Notes to Financial Statements are an integral part of this statement.
16
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Portfolio of Investments
(continued)
June 30, 2025 (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.
Values of foreign equity securities actively traded in markets where there is a significant delay in the local close relative to the New York Stock Exchange may include an
adjustment to reflect the impact of market movements following the close of local trading, as described in Note 2 to the financial statements – Security valuation. When
such adjustments have been made, the foreign equity securities are classified as Level 2.
Investments falling into the Level 3 category, if any, 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 Fund’s Board of Directors (the Board) has designated the Investment Manager, through its Valuation Committee (the Committee), as valuation designee, responsible for
determining the fair value of the assets of the Fund for which market quotations are not readily available using 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 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. Representatives of Columbia Management Investment Advisers, LLC report to 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 June 30, 2025:
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Securities | ||||
Common Stocks | ||||
Communication Services | 72,514,195 | — | — | 72,514,195 |
Consumer Discretionary | 15,532,867 | — | — | 15,532,867 |
Financials | 33,985,967 | — | — | 33,985,967 |
Industrials | 33,174,509 | — | — | 33,174,509 |
Information Technology | 358,155,443 | 5,948,185 | — | 364,103,628 |
Total Common Stocks | 513,362,981 | 5,948,185 | — | 519,311,166 |
Money Market Funds | 5,861,425 | — | — | 5,861,425 |
Total Investments in Securities | 519,224,406 | 5,948,185 | — | 525,172,591 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
17
Portfolio of Investments
(continued)
June 30, 2025 (Unaudited)
Fair value measurements
(continued)
Level 1 ($) | Level 2 ($) | Level 3 ($) | Total ($) | |
Investments in Derivatives | ||||
Liability | ||||
Call Option Contracts Written | (4,281,610 ) | — | — | (4,281,610 ) |
Total | 514,942,796 | 5,948,185 | — | 520,890,981 |
See the Portfolio of Investments for all investment classifications not indicated in the table.
The Fund’s assets assigned to the Level 2 input category are generally valued using the market approach, in which a security’s value is determined through reference to
prices and information from market transactions for similar or identical assets. These assets include certain foreign securities for which a third party statistical pricing
service may be employed for purposes of fair market valuation. The model utilized by such third party statistical pricing service takes into account a security’s correlation to
available market data including relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable.
The accompanying Notes to Financial Statements are an integral part of this statement.
18
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Statement of Assets and Liabilities
June 30, 2025 (Unaudited)
Assets | |
Investments in securities, at value | |
Unaffiliated issuers (cost $252,240,825) | $ 519,311,166 |
Affiliated issuers (cost $5,860,505) | 5,861,425 |
Cash | 33,340 |
Receivable for: | |
Investments sold | 489,103 |
Dividends | 212,014 |
Foreign tax reclaims | 23,078 |
Prepaid expenses | 54,829 |
Other assets | 23,972 |
Total assets | 526,008,927 |
Liabilities | |
Option contracts written, at value (premiums received $1,297,411) | 4,281,610 |
Payable for: | |
Investments purchased | 533,526 |
Management services fees | 44,952 |
Stockholder servicing and transfer agent fees | 3,052 |
Compensation of chief compliance officer | 51 |
Compensation of board members | 13,775 |
Other expenses | 36,201 |
Deferred compensation of board members | 170,692 |
Total liabilities | 5,083,859 |
Net assets applicable to outstanding Common Stock | $520,925,068 |
Represented by | |
Paid in capital | 262,761,208 |
Total distributable earnings (loss) | 258,163,860 |
Total - representing net assets applicable to outstanding Common Stock | $520,925,068 |
Shares outstanding applicable to | |
Net asset value per share of outstanding Common Stock | $29.95 |
Market price per share of Common Stock | $30.41 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
19
Statement of Operations
Six Months Ended June 30, 2025 (Unaudited)
Net investment income | |
Income: | |
Dividends — unaffiliated issuers | $ 1,812,306 |
Dividends — affiliated issuers | 256,206 |
Foreign taxes withheld | (18,068 ) |
Total income | 2,050,444 |
Expenses: | |
Management services fees | 2,647,148 |
Stockholder servicing and transfer agent fees | 13,976 |
Custodian fees | 8,701 |
Printing and postage fees | 26,104 |
Stockholders’ meeting fees | 21,270 |
Accounting services fees | 26,562 |
Legal fees | 6,773 |
Compensation of chief compliance officer | 44 |
Compensation of board members | 16,651 |
Deferred compensation of board members | (1,209 ) |
Other | 27,342 |
Total expenses | 2,793,362 |
Net investment loss | (742,918 ) |
Realized and unrealized gain (loss) — net | |
Net realized gain (loss) on: | |
Investments — unaffiliated issuers | 28,143,256 |
Investments — affiliated issuers | (627 ) |
Foreign currency translations | 3,782 |
Option contracts purchased | 3,152 |
Option contracts written | (30,478,979 ) |
Net realized loss | (2,329,416 ) |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated issuers | (9,542,261 ) |
Investments — affiliated issuers | 49 |
Foreign currency translations | 591 |
Option contracts written | (4,247,276 ) |
Net change in unrealized appreciation (depreciation) | (13,788,897 ) |
Net realized and unrealized loss | (16,118,313 ) |
Net decrease in net assets resulting from operations | $(16,861,231 ) |
The accompanying Notes to Financial Statements are an integral part of this statement.
20
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Statement of Changes in Net Assets
Six Months Ended June 30, 2025 (Unaudited) | Year Ended December 31, 2024 | |
Operations | ||
Net investment loss | $ (742,918 ) | $ (1,380,189 ) |
Net realized gain (loss) | (2,329,416 ) | 84,286,159 |
Net change in unrealized appreciation (depreciation) | (13,788,897 ) | 48,040,499 |
Net increase (decrease) in net assets resulting from operations | (16,861,231 ) | 130,946,469 |
Distributions to stockholders | ||
Net investment income and net realized gains | (15,962,416 ) | (84,735,804 ) |
Total distributions to stockholders | (15,962,416 ) | (84,735,804 ) |
Increase in net assets from capital stock activity | 26,347,603 | 2,266,843 |
Total increase (decrease) in net assets | (6,476,044 ) | 48,477,508 |
Net assets at beginning of period | 527,401,112 | 478,923,604 |
Net assets at end of period | $520,925,068 | $527,401,112 |
Six Months Ended | Year Ended | |||
June 30, 2025 (Unaudited) | December 31, 2024 | |||
Shares | Dollars ($) | Shares | Dollars ($) | |
Capital stock activity | ||||
Common Stock issued at market price in distributions | 645,960 | 21,314,262 | 75,332 | 2,266,843 |
Common Stock issued through at-the-market offering | 181,502 | 5,033,341 | — | — |
Total net increase | 827,462 | 26,347,603 | 75,332 | 2,266,843 |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
21
Financial Highlights
The Fund’s financial highlights are presented below. Per share operating performance data is designed to allow investors to
trace the operating performance, on a per Common Stock share basis, from the beginning net asset value to the ending net
asset value, so that investors can understand what effect the individual items have on their investment, assuming it was
held throughout the period. Generally, the per share amounts are derived by converting the actual dollar amounts incurred
for each item, as disclosed in the financial statements, to their equivalent per Common Stock share amounts, using average
Common Stock shares outstanding during the period.
Total return measures the Fund’s performance assuming that investors purchased Fund shares at market price or net asset
value as of the beginning of the period, reinvested all their distributions, and then sold their shares at the closing market
price or net asset value on the last day of the period. The computations do not reflect taxes or any sales commissions
investors may incur on distributions or on the sale of Fund shares. Total returns and portfolio turnover are not annualized for
periods of less than one year. The ratios of expenses and net investment income are annualized for periods of less than one
year. The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments
and certain derivatives, if any. If such transactions were included, a Fund’s portfolio turnover rate may be higher.
Six Months Ended June 30, 2025 (Unaudited) | Year ended December 31, | |||
2024 | 2023 | 2022 | ||
Per share data | ||||
Net asset value, beginning of period | $31.84 | $29.05 | $22.63 | $35.42 |
Income from investment operations: | ||||
Net investment income (loss) | (0.04 ) | (0.08 ) | (0.05 ) | (0.08 ) |
Net realized and unrealized gain (loss) | (0.94 ) | 7.99 | 8.58 | (9.78 ) |
Total from investment operations | (0.98 ) | 7.91 | 8.53 | (9.86 ) |
Less distributions to Stockholders from: | ||||
Net investment income | — | — | — | — |
Net realized gains | (0.93 ) | (5.12 ) | (2.12 ) | (2.93 ) |
Total distributions to Stockholders | (0.93 ) | (5.12 ) | (2.12 ) | (2.93 ) |
(Dilution) Anti-dilution in net asset value from share purchases (via dividend reinvestment program and at-the-market offerings) (a) | 0.02 | (0.00 ) (b) | 0.01 | (0.00 ) (b) |
Anti-dilution in net asset value from share buy-backs (via stock repurchase program) (a) | — | — | — | — |
Net asset value, end of period | $29.95 | $31.84 | $29.05 | $22.63 |
Market price, end of period | $30.41 | $31.95 | $31.60 | $23.23 |
Total return | ||||
Based upon net asset value | (3.02 %) | 27.61 % | 38.89 % | (28.74 %) |
Based upon market price | (1.87 %) | 17.72 % | 47.19 % | (29.99 %) |
Ratios to average net assets | ||||
Total gross expenses (c) | 1.12 % | 1.13 % | 1.13 % | 1.13 % |
Net investment income (loss) | (0.30 %) | (0.26 %) | (0.19 %) | (0.29 %) |
Supplemental data | ||||
Net assets, end of period (in thousands) | $520,925 | $527,401 | $478,924 | $366,036 |
Portfolio turnover | 14 % | 40 % | 25 % | 9 % |
Notes to Financial Highlights | |
(a) | Prior to the period ended December 31, 2022, per share amounts were only presented if the net dilution/anti-dilution impact was material relative to the Fund’s average net assets for Common Stock. |
(b) | Rounds to zero. |
(c) | 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. |
The accompanying Notes to Financial Statements are an integral part of this statement.
22
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Financial Highlights
(continued)
Year ended December 31, | ||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
$27.86 | $23.43 | $16.96 | $20.83 | $17.78 | $17.29 | $17.69 |
(0.06 ) | 0.11 | (0.02 ) | (0.01 ) | (0.06 ) | (0.05 ) | (0.04 ) |
10.76 | 6.17 | 8.34 | (1.36 ) | 5.74 | 2.39 | 1.49 |
10.70 | 6.28 | 8.32 | (1.37 ) | 5.68 | 2.34 | 1.45 |
— | (0.11 ) | — | — | — | — | — |
(3.14 ) | (1.74 ) | (1.85 ) | (2.50 ) | (2.63 ) | (1.85 ) | (1.85 ) |
(3.14 ) | (1.85 ) | (1.85 ) | (2.50 ) | (2.63 ) | (1.85 ) | (1.85 ) |
— | — | — | — | — | — | — |
— | — | — | — | — | — | — |
$35.42 | $27.86 | $23.43 | $16.96 | $20.83 | $17.78 | $17.29 |
$37.01 | $27.24 | $23.55 | $16.81 | $22.25 | $18.74 | $17.93 |
39.38 % | 29.17 % | 51.04 % | (7.77 %) | 32.72 % | 15.29 % | 8.40 % |
48.96 % | 25.65 % | 53.17 % | (14.42 %) | 34.51 % | 17.18 % | 5.05 % |
1.13 % | 1.15 % | 1.15 % | 1.15 % | 1.16 % | 1.17 % | 1.17 % |
(0.18 %) | 0.50 % | (0.08 %) | (0.05 %) | (0.28 %) | (0.33 %) | (0.24 %) |
$564,220 | $443,114 | $372,063 | $265,315 | $320,472 | $273,226 | $265,426 |
27 % | 32 % | 43 % | 34 % | 47 % | 61 % | 61 % |
The accompanying Notes to Financial Statements are an integral part of this statement.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
23
Notes to Financial Statements
June 30, 2025 (Unaudited)
Note 1.
Organization
Columbia Seligman Premium Technology Growth Fund, Inc. (the Fund) is a non-diversified fund. The Fund is registered
under the Investment Company Act of 1940, as amended (the 1940 Act), as a closed-end management investment
company.
The Fund was incorporated under the laws of the State of Maryland on September 3, 2009, and commenced investment
operations on November 30, 2009. The Fund had no investment operations prior to November 30, 2009 other than those
relating to organizational matters and the sale to Columbia Management Investment Advisers, LLC (the Investment
Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), of 5,250 shares of Common Stock
at a cost of $100,275 on October 14, 2009. As of December 31, 2009, the Fund issued 14,300,000 shares of Common Stock,
including 13,100,000 shares of Common Stock in its initial public offering and 1,200,000 shares of Common Stock
purchased by the Fund’s underwriters pursuant to an over-allotment option granted to the underwriters in connection with
the initial public offering. On January 13, 2010, the Fund’s underwriters purchased an additional 545,000 shares of Common
Stock pursuant to the over-allotment option, resulting in a total of 14,845,000 shares of Common Stock issued by the Fund
in its initial public offering, including shares purchased by the underwriters pursuant to the over-allotment option. With the
closing of this additional purchase of Common Stock, the Fund’s total raise-up in its initial public offering was an aggregate
of $296.9 million. The Fund has one billion authorized shares of Common Stock. The issued and outstanding Common
Stock trades on the New York Stock Exchange under the symbol “STK”.
On June 26, 2024, the Fund filed a registration statement on Form N-2 (File No. 333-280485) with the Securities and
Exchange Commission (the SEC), relating to the offer and sale of up to 8,000,000 shares of Fund Common Stock, from time
to time, through ALPS Distributors, Inc., as agent for the Fund (the Distributor), in transactions that are deemed to be
“at-the-market” as defined in Rule 415 under the Securities Act of 1933, as amended. On November 15, 2024, the SEC
declared this registration statement to be effective. Offering costs of the registration were paid by the Investment Manager
and therefore are not included in the fees or expenses of the Fund. With respect to the Fund’s at-the-market offering, the
Fund compensates the Distributor with respect to sales of the Common Stock at a commission rate of up to 1.0% of the
gross proceeds of the sale of Common Stock. The Distributor may enter into sub-placement agent agreements with one or
more selected dealers for the offer and sale of Common Stock under the Fund’s at-the-market offering. In that regard, the
Distributor entered into a sub-placement agreement with UBS Securities LLC.
The Fund currently has outstanding Common Stock. Each outstanding share of Common Stock entitles the holder thereof to
one vote on all matters submitted to a vote of the Common Stockholders, including the election of directors. Because the
Fund has no other classes or series of stock outstanding, Common Stock possesses exclusive voting power. All of the
Fund’s shares of Common Stock have equal dividend, liquidation, voting and other rights. The Fund’s Common Stockholders
have no preference, conversion, redemption, exchange, sinking fund, or appraisal rights and have no preemptive rights to
subscribe for any of the Fund’s securities.
Although the Fund has no current intention to do so, the Fund is authorized and reserves the flexibility to use leverage to
increase its investments or for other management activities through the issuance of Preferred Stock and/or borrowings. The
costs of issuing Preferred Stock and/or a borrowing program would be borne by Common Stockholders and consequently
would result in a reduction of net asset value of Common Stock.
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.
24
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial
statements.
Segment reporting
The intent of ASU 2023-07, Segment Reporting is to enable investors to better understand an entity’s overall performance
and to assess its potential future cash flows through improved segment disclosures. The chief operating decision maker
(CODM) for the Fund is Columbia Management Investment Advisers, LLC through its Investment Oversight Committee and
Global Executive Group, which are responsible for assessing performance and making decisions about resource allocation.
The CODM has determined that the Fund has a single operating segment because the CODM monitors the operating results
of the Fund as a whole and the Fund’s long-term strategic asset allocation is pre-determined in accordance with the terms
of its prospectus, based on a defined investment strategy which is executed by the Fund’s portfolio managers as a team.
The financial information provided to and reviewed by the CODM is consistent with that presented within the Fund’s financial
statements.
Security valuation
Equity securities listed on an exchange are valued at the closing price or last trade price on their primary exchange at the
close of business of the New York Stock Exchange. Securities with a closing price not readily available or not listed on any
exchange are valued at the mean between the closing bid and ask prices. Listed preferred stocks convertible into common
stocks are valued using an evaluated price from a pricing service.
Foreign equity securities are valued based on the closing price or last trade price on their primary exchange at the close of
business of the New York Stock Exchange. If any foreign equity security closing prices are not readily available, the
securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency
exchange rates are determined at the scheduled closing time of the New York Stock Exchange. Many securities markets and
exchanges outside the U.S. close prior to the close of the New York Stock Exchange; therefore, the closing prices for
securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close
of the New York Stock Exchange. In those situations, foreign securities will be fair valued pursuant to a policy approved by
the Board of Directors. Under the policy, the Fund may utilize a third-party pricing service to determine these fair values. The
third-party pricing service takes into account multiple factors, including relevant general and sector indices, currency
fluctuations, depositary receipts, and futures, as applicable, to determine a good faith estimate that reasonably reflects the
current market conditions as of the close of the New York Stock Exchange. The fair value of a security is likely to be different
from the quoted or published price, if available.
Investments in open-end investment companies (other than exchange-traded funds (ETFs)), are valued at the latest net
asset value reported by those companies as of the valuation time.
Option contracts are valued at the mean of the latest quoted bid and ask prices on their primary exchanges. Option
contracts, including over-the-counter option contracts, with no readily available market quotations are valued using
mid-market evaluations from independent third-party vendors.
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
the Board of Directors. 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.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
25
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
Foreign currency transactions and translations
The values of all assets and liabilities denominated in foreign currencies are generally translated into U.S. dollars at
exchange rates determined at the close of regular trading on the New York Stock Exchange. Net realized and unrealized
gains (losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in
exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of
foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and
foreign withholding taxes.
For financial statement purposes, the Fund does not distinguish that portion of gains (losses) on investments which is due
to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such
fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.
Derivative instruments
The Fund may invest in certain derivative instruments, which are transactions whose values depend on or are derived from
(in whole or in part) the value of one or more other assets, such as securities, currencies, commodities or indices. The Fund
uses a rules-based call option writing strategy on the NASDAQ 100 Index
®
, an unmanaged index that includes the largest
and most active nonfinancial domestic and international companies listed on the Nasdaq Stock Market, or its exchange-traded
fund equivalent (NASDAQ 100) on a month-to-month basis.
The Fund may also seek to provide downside protection by purchasing puts on the NASDAQ 100 when premiums on these
options are considered by the Investment Manager to be low and, therefore, attractive relative to the downside protection
provided.
The Fund may also buy or write other call and put options on securities, indices, ETFs and market baskets of securities to
generate additional income or return or to provide the portfolio with downside protection. In this regard, options may include
writing “in-” or “out-of-the-money” put options or buying or selling options in connection with closing out positions prior to
expiration of any options. However, the Fund does not intend to write “naked” call options on individual stocks (i.e., selling a
call option on an individual security not owned by the Fund) other than in connection with implementing the options
strategies with respect to the NASDAQ 100. The put and call options purchased, sold or written by the Fund may be
exchange-listed or over-the-counter.
The notional exposure of a financial instrument is the nominal or face amount that is used to calculate payments made on
that instrument and/or changes in value for the instrument. The notional exposure is a hypothetical underlying quantity upon
which payment obligations are computed. Notional exposures provide a gauge for how the Fund may behave given changes
in the underlying rate, asset or reference instrument and individual markets. The notional amounts of derivative instruments,
if applicable, are not recorded in the financial statements. A derivative instrument may suffer a mark 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 under the contract. Options written by the Fund do not typically
give rise to counterparty credit risk, as options written generally obligate the Fund and not the counterparty to perform. With
exchange-traded purchased options, there is less counterparty credit risk to the Fund than in the case of an over-the-counter
derivative, since the exchange’s clearinghouse, as counterparty to such instruments, guarantees against a possible default.
The clearinghouse stands between the buyer and the seller of the contract; therefore, the primary counterparty credit risk is
the risk of failure of the clearinghouse. However, credit risk still exists in exchange traded option contracts with respect to
any collateral that is held in a broker’s customer accounts. While clearing brokers are required to segregate customer
collateral 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 collateral held by the broker for all its clients, U.S. bankruptcy laws will
typically allocate that shortfall on a pro-rata basis across all the clearing broker’s customers, 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 in
respect of over-the-counter derivatives, 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 a bilateral agreement between a Fund and a counterparty that governs over-the-counter derivatives and
26
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
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 financial instrument’s payables and/or receivables with collateral held and/or
posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net
payment in the event of default (close-out netting) including the bankruptcy or insolvency of the counterparty. Note, however,
that bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of
offset in bankruptcy, insolvency or other events. Collateral (margin) requirements differ by type of derivative. 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. Margin requirements are established by the exchange
for exchange traded options and by the CCP for futures and options on futures. Brokers can ask for margin in excess of the
minimum in certain circumstances. 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 or receive interest income on cash collateral pledged
to the broker. 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.
Investments in derivative instruments may expose the Fund to certain additional risks, including those detailed below.
Options contracts
Options are contracts which entitle the holder to purchase or sell securities or other identified assets at a specified price, or
in the case of index option contracts, to receive or pay the difference between the index value and the strike price of the
index option contract. Option contracts can be either exchange-traded or over-the-counter. The Fund purchased and has
written option contracts to produce incremental earnings, to decrease the Fund’s exposure to equity risk, to increase return
on investments, to protect gains and to facilitate buying and selling of securities for investments. These instruments may be
used for other purposes in future periods. Completion of transactions for option contracts traded in the over-the-counter
market depends upon the performance of the other party. Collateral may be collected or posted by the Fund to secure
over-the-counter option contract trades. Collateral held or posted by the Fund for such option contract trades must be
returned to the broker or the Fund upon closure, exercise or expiration of the contract.
Options contracts purchased are recorded as investments. When the Fund writes an options contract, the premium received
is recorded as an asset and an amount equivalent to the premium is recorded as a liability in the Statement of Assets and
Liabilities and is subsequently adjusted to reflect the current fair value of the option written. Changes in the fair value of the
written option are recorded as unrealized appreciation or depreciation until the contract is exercised or has expired. The
Fund realizes a gain or loss when the option contract is closed or expires. When option contracts are exercised, the
proceeds on sales for a written call or purchased put option contract, or the purchase cost for a written put or purchased
call option contract, is adjusted by the amount of premium received or paid.
For over-the-counter options purchased, the Fund bears the risk of loss of the amount of the premiums paid plus the
positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the
contracts. Option contracts written by the Fund do not typically give rise to significant counterparty credit risk, as options
written generally obligate the Fund and not the counterparty to perform. The risk in writing a call option contract is that the
Fund gives up the opportunity for profit if the market price of the security increases above the strike price and the option
contract is exercised. The risk in writing a put option contract is that the Fund may incur a loss if the market price of the
security decreases below the strike price and the option contract is exercised. Exercise of a written option could result in the
Fund purchasing or selling a security or foreign currency when it otherwise would not, or at a price different from the current
market value. In purchasing and writing options, the Fund bears the risk of an unfavorable change in the value of the
underlying instrument or the risk that the Fund may not be able to enter into a closing transaction due to an illiquid market.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
27
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
Effects of derivative transactions in the financial statements
The following tables are intended to provide additional information about the effect of derivatives on the financial
statements of the Fund, including: the fair value of derivatives by risk category and the location of those fair values in the
Statement of Assets and Liabilities; and the impact of derivative transactions over the period in the Statement of Operations,
including realized and unrealized gains (losses). The derivative instrument schedules following the Portfolio of Investments
present additional information regarding derivative instruments outstanding at the end of the period, if any.
The following table is a summary of the fair value of derivative instruments (not considered to be hedging instruments for
accounting disclosure purposes) at June 30, 2025:
Liability derivatives | ||
Risk exposure category | Statement of assets and liabilities location | Fair value ($) |
Equity risk | Option contracts written, at value | 4,281,610 |
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 June 30, 2025:
Amount of realized gain (loss) on derivatives recognized in income | |||
Risk exposure category | Option contracts purchased ($) | Option contracts written ($) | Total ($) |
Equity risk | 3,152 | (30,478,979 ) | (30,475,827 ) |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | |
Risk exposure category | Option contracts written ($) |
Equity risk | (4,247,276 ) |
The following table is a summary of the average daily outstanding volume by derivative instrument for the six months
ended June 30, 2025:
Derivative instrument | Average value ($) |
Option contracts purchased | 960 |
Option contracts written | (3,095,356 ) |
Offsetting of assets and liabilities
The following table presents the Fund’s gross and net amount of assets and liabilities available for offset under netting
arrangements with counterparties as well as any related collateral received or pledged by the Fund as of June 30, 2025:
Morgan Stanley | ||
Liabilities | ||
Call option contracts written | $ | 4,281,610 |
Total financial and derivative net assets | (4,281,610 ) | |
Total collateral received (pledged) (a) | (4,281,610 ) | |
Net amount (b) | $ | - |
(a) | In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization. |
(b) | Represents the net amount due from/(to) counterparties in the event of default. |
28
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
Security transactions
Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific
identification method for both financial statement and federal income tax purposes.
Income recognition
Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the
ex-dividend date or upon receipt of an ex-dividend notification in the case of certain foreign securities.
The Fund may receive distributions from holdings in equity securities, business development companies (BDCs),
exchange-traded funds (ETFs), limited partnerships (LPs), other regulated investment companies (RICs), and real estate
investment trusts (REITs), which report information as to the tax character of their distributions annually. These distributions
are allocated to dividend income, capital gain and return of capital based on actual information reported. Return of capital is
recorded as a reduction of the cost basis of securities held. If the Fund no longer owns the applicable securities, return of
capital is recorded as a realized gain. With respect to REITs, to the extent actual information has not yet been reported,
estimates for return of capital are made by Columbia Management Investment Advisers, LLC (the Investment Manager), a
wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Investment Manager’s estimates are
subsequently adjusted when the actual character of the distributions is disclosed by the REITs, which could result in a
proportionate change in return of capital to stockholders.
Awards from class action litigation are recorded as a reduction of cost basis if the Fund still owns the applicable securities
on the payment date. If the Fund no longer owns the applicable securities on the payment date, the proceeds are recorded
as realized gains.
Determination of net asset value
The net asset value per share of the Fund is computed by dividing the value of the net assets of the Fund by the total
number of outstanding shares of the Fund, rounded to the nearest cent, at the close of regular trading (ordinarily 4:00 p.m.
Eastern Time) every day the New York Stock Exchange is open.
Federal income tax status
The Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue
Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any,
for its tax year, and as such will not be subject to federal income taxes. In addition, the Fund intends to distribute in each
calendar year substantially all of its ordinary income, capital gain net income and certain other amounts, if any, such that the
Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provision is recorded.
Foreign taxes
The Fund may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may
be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax
rules and regulations that exist in the markets in which it invests.
Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund
accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable.
The amount, if any, is disclosed as a liability in the Statement of Assets and Liabilities.
Dividends to stockholders
In November 2010, the Fund paid its first dividend under the Fund’s managed distribution policy adopted by the Fund’s
Board of Directors. Prior to the managed distribution policy, the Fund paid distributions pursuant to a level rate distribution
policy. Under its former distribution policy and consistent with the 1940 Act, the Fund could not distribute long-term capital
gains, as defined in the Internal Revenue Code of 1986, more often than once in any one taxable year. In October 2010, the
Fund received exemptive relief from the Securities and Exchange Commission that permits the Fund to distribute long-term
capital gains more often than once in any one taxable year. After consideration by the Fund’s Board of Directors, the Fund
adopted the managed distribution policy which allows the Fund to make periodic distributions of long-term capital gains.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
29
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
Under its managed distribution policy, the Fund intends to make quarterly distributions to Common Stockholders at a rate
that reflects the past and projected performance of the Fund. The Fund expects to receive all or some of its current income
and gains from the following sources: (i) dividends received by the Fund that are paid on the equity and equity-related
securities in its portfolio; and (ii) capital gains (short-term and long-term) from option premiums and the sale of portfolio
securities. It is possible that the Fund’s distributions will at times exceed the earnings and profits of the Fund and therefore
all or a portion of such distributions may constitute a return of capital as described below. A return of capital is a return of a
portion of an investor’s original investment. A return of capital is not taxable, but it reduces a Stockholder’s tax basis in his or
her shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition by the Stockholder of his or
her shares. Distributions may vary, and the Fund’s distribution rate will depend on a number of factors, including the net
earnings on the Fund’s portfolio investments and the rate at which such net earnings change as a result of changes in the
timing of, and rates at which, the Fund receives income from the sources described above. The net investment income of
the Fund consists of all income (other than net short-term and long-term capital gains) less all expenses of the Fund.
The Board of Directors may change the Fund’s distribution policy and the amount or timing of the distributions, based on a
number of factors, including, but not limited to, as the Fund’s portfolio and market conditions change, the amount of the
Fund’s undistributed net investment income and net short- and long-term capital gains and historical and projected net
investment income and net short- and long-term capital gains. Over time, the Fund will distribute all of its net investment
income and net short-term capital gains. In addition, at least annually, the Fund intends to distribute any net capital gain
(which is the excess of net long-term capital gain over net short-term capital loss) or, alternatively, to retain all or a portion of
the year’s net capital gain and pay federal income tax on the retained gain.
Dividends and other distributions to stockholders are recorded on ex-dividend dates.
The Fund has an investment objective to seek growth of capital and current income. In the latter regard, in 2024, the Fund’s
managed distribution policy provided stockholders with current income through quarterly distributions of $0.4625 per share,
comprised of $1.85 in long-term capital gains. In order to avoid federal excise tax in 2024, the Fund also paid a special
fourth quarter capital gain distribution, beyond its typical quarterly managed distribution policy, in the amount of $3.2669 per
share, comprised of $0.3122 in short-term capital gains and $2.9547 in long-term capital gains. No portion of the Fund’s
2024 distributions, including such special distribution, consisted of a return of capital. A return of capital may occur, for
example, when some or all of the money that you invested in the Fund is paid back to you. The Fund was fully invested
throughout 2024, implementing its technology and options investing strategies so as to position the Fund to achieve its
capital appreciation investment objective, as evidenced by the Fund’s NAV return of 27.61% in 2024, which underperformed
the Fund’s benchmark, the S&P North American Technology Sector Index’s return of 36.08% for the same period.
Guarantees and indemnifications
Under the Fund’s organizational documents and, in some cases, by contract, its officers and directors are indemnified
against certain liabilities arising out of the performance of their duties to the Fund. 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.
Recent accounting pronouncements and regulatory updates
Accounting Standards Update 2023-09 Income Taxes (Topic 740)
In December 2023, the FASB issued Accounting Standards Update No. 2023-09 Income Taxes (Topic 740) Improvements to
Income Tax Disclosures. The amendments were issued to enhance the transparency and decision usefulness of income tax
disclosures primarily related to rate reconciliation and income taxes paid information. The amendments are effective for
annual periods beginning after December 15, 2024, with early adoption permitted. Management expects that the adoption of
the amendments will not have a material impact on its financial statements.
30
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (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 payable as a percentage of the Fund’s daily Managed Assets that
declines from 1.06% to 0.85% as the Fund’s Managed Assets increase. The annualized effective management services fee
rate for the six months ended June 30, 2025, was 1.06% of the Fund’s average daily Managed Assets. "Managed Assets"
means the net asset value of the Fund’s outstanding Common Stock plus the liquidation preference of any issued and
outstanding preferred stock of the Fund and the principal amount of any borrowings used for leverage. To date, the Fund
has not issued preferred stock.
Compensation of Board members
Members of the Board of Directors 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 Directors 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 Directors’ fees
deferred during the current period as well as any gains or losses on the Directors’ deferred compensation balances as a
result of market fluctuations, is included in "Deferred compensation of board members" in the Statement of Operations.
Compensation of Chief Compliance Officer
The Board of Directors 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.
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 June 30, 2025, 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 ($) |
256,804,000 | 274,595,000 | (10,508,000 ) | 264,087,000 |
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 Seligman Premium Technology Growth Fund, Inc. | 2025
31
Notes to Financial Statements
(continued)
June 30, 2025 (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 $70,636,388 and $135,445,384, respectively, for the six months ended June 30, 2025. The amount of
purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.
Note 6.
Capital stock transactions
The Fund, in connection with its Dividend Investment Plan (the Plan), issues shares of its own Common Stock, as needed, to
satisfy the Plan requirements. A total of 645,960 shares were issued to the Plan participants during the six months ended
June 30, 2025, for proceeds of $21,314,262, a weighted average premium of 0.29% from the net asset value of those shares.
Pursuant to the Plan, unless a Common Stockholder elects otherwise, all cash dividends, capital gains distributions, and
other distributions are automatically reinvested in additional Common Stock. If you hold your shares in street name or other
nominee (i.e., through a broker), you should contact them to determine their policy, as the broker firm’s policy with respect to
Fund distributions may be to default to a cash payment. Common Stockholders who elect not to participate in the Plan
(including those whose intermediaries do not permit participation in the Plan by their customers) will receive all dividends
and distributions payable in cash directly to the Common Stockholder of record (or, if the shares of Common Stock are held
in street or other nominee name, then to such nominee). Common Stockholders may elect not to participate in the Plan and
to receive all distributions of dividends and capital gains or other distributions in cash by sending written instructions to
Equiniti Trust Company, LLC (Equiniti), 6201 15th Avenue, Brooklyn, NY 11219. Participation in the Plan may be terminated or
resumed at any time without penalty by written notice if received by Equiniti, prior to the record date for the next distribution.
Otherwise, such termination or resumption will be effective with respect to any subsequently declared distribution. The
income tax consequences of participation in the Plan are the same whether you participate in the Plan and reinvest your
Fund distributions or you elect not to participate in the Plan and receive all your Fund distributions in cash (i.e., capital gains
and income are realized, although cash is not received by the shareholder).
Under the Plan, Common Stockholders receive shares of Common Stock in lieu of cash distributions unless they have
elected otherwise as described above. Common Stock will be issued in lieu of cash by the Fund from previously authorized
but unissued Common Stock. If the market price of a share on the ex-dividend date of such a distribution is at or above the
Fund’s net asset value per share on such date, the number of shares to be issued by the Fund to each Common Stockholder
receiving shares in lieu of cash distributions will be determined by dividing the amount of the cash distribution to which such
Common Stockholder would be entitled by the greater of the net asset value per share on such date or 95% of the market
price of a share on such date. If the market price of a share on such an ex-dividend date is below the net asset value per
share, the number of shares to be issued to such Common Stockholders will be determined by dividing such amount by the
per share market price. The issuance of Common Stock at less than net asset value per share will dilute the net asset value
of all Common Stock outstanding at that time. Market price on any day means the closing price for the Common Stock at
the close of regular trading on the New York Stock Exchange on such day or, if such day is not a day on which the Common
Stock trades, the closing price for the Common Stock at the close of regular trading on the immediately preceding day on
which trading occurs.
The Fund reserves the right to amend or terminate the Plan as applied to any distribution paid subsequent to written notice
of the change sent to participants in the Plan at least 90 days before the record date for such distribution. There are no
service or brokerage charges to participants in the Plan; however, the Fund reserves the right to amend the Plan to include a
service charge payable to the Fund by the participants. The Fund reserves the right to amend the Plan to provide for
payment of brokerage fees by the Plan participants in the event the Plan is changed to provide for open market purchases of
Common Stock on behalf of the Plan participants. All correspondence concerning the Plan should be directed to Equiniti.
The Fund has entered into the Distribution Agreement with ALPS Distributors, Inc., pursuant to which the Fund may offer and
sell up to 8,000,000 shares of Fund Common Stock, from time to time, through the Distributor, in transactions that are
deemed to be "at-the-market" as defined in Rule 415 under the 1933 Act. There is no guarantee that there will be any sales
of Common Stock pursuant to the Prospectus relating to this offering. There is no guarantee that the Fund will sell all of the
Common Stock available for sale or that there will be any sales of Common Stock under this offering. The minimum price at
which Common Stock may be sold will not be less than an amount at least equal to the then current NAV per share of
Common Stock plus the per share of Common Stock amount of the commission to be paid to the Distributor (Minimum
32
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
Price). The Fund along with the Distributor and the sub placement agent will not authorize sales of Common Stock if the
price per share of the Common Stock is less than the Minimum Price. The Fund may elect not to authorize sales of
Common Stock on a particular day even if the price per share of the Common Stock is equal to or greater than the Minimum
Price or may only authorize a fixed number of shares of Common Stock to be sold on any particular day. The Fund has full
discretion regarding whether sales of shares of Common Stock will be authorized on a particular day and, if so, in what
amounts. A total of 181,502 shares were issued under the at-the-market offering during the six months ended June 30, 2025
for proceeds of $5,033,341, a weighted average premium of 4.34% from the net asset value of those shares.
The Fund’s Board re-approved the Fund’s stock repurchase program for 2025, which is identical to the Fund’s 2024 stock
repurchase program. The Fund, under its stock repurchase program, currently intends to make open market purchases of its
Common Stock from time to time when the Fund’s Common Stock is trading at a discount to its net asset value, in an
amount approximately sufficient to offset the growth in the number of shares of Common Stock issued as a result of the
reinvestment of the portion of its distributions to Common Stockholders that are attributable to distributions received by the
Fund from its underlying portfolio investments less fund expenses. For the six months ended June 30, 2025, no shares were
purchased in the open market.
Note 7.
Affiliated money market fund
The Fund invests in Columbia Short-Term Cash Fund, an affiliated money market fund established for the exclusive use by
the Fund and other affiliated funds (the Affiliated MMF). The income earned by the Fund from such investments is included
as Dividends - affiliated issuers in the Statement of Operations. As an investing fund, the Fund indirectly bears its
proportionate share of the expenses of the Affiliated MMF. The Affiliated MMF prices its shares with a floating net asset
value. The Securities and Exchange Commission has adopted amendments to money market fund rules requiring
institutional prime money market funds like the Affiliated MMF to be subject to a discretionary liquidity fee of up to 2% if the
imposition of such a fee is determined to be in the best interest of the Affiliated MMF and to a mandatory liquidity fee if daily
net redemptions exceed 5% of net assets.
Note 8.
Interfund Lending
Pursuant to an exemptive order granted by the Securities and Exchange Commission, the Fund entered into a master
interfund lending agreement (the Interfund Program) with certain other funds advised by the Investment Manager or its
affiliates (each a Participating Fund). The Interfund Program allows each Participating Fund to lend money directly to and,
other than closed-end funds (including the Fund) and money market funds, borrow money directly from other Participating
Funds for temporary purposes through the Interfund Program (each an Interfund Loan).
A Participating Fund may make unsecured borrowings under the Interfund Program if its outstanding borrowings from all
sources, including those outside of the Interfund Program, immediately after such unsecured borrowing under the Interfund
Program are equal to or less than 10% of its total assets, provided that if the borrowing Participating Fund has a secured
loan outstanding from any other lender, including but not limited to another Participating Fund, the borrowing Participating
Fund’s borrowing under the Interfund Program will be secured on at least an equal priority basis with at least an equivalent
percentage of collateral to loan value as any outstanding loan that requires collateral. A Participating Fund may not borrow
through the Interfund Program or from any other source if its total outstanding borrowings immediately after a borrowing
would be more than 33 1/3% of its total assets or any lower threshold provided for by a Participating Fund’s fundamental or
non-fundamental policy restriction.
No Participating Fund may lend to another Participating Fund through the Interfund Program if the loan would cause the
lending Participating Fund’s aggregate outstanding loans under the Interfund Program to exceed 15% of its current net
assets at the time of the loan. A Participating Fund’s Interfund Loans to any one Participating Fund may not exceed 5% of
the lending Participating Fund’s net assets at the time of the loan. The duration of Interfund Loans will be limited to the time
required to receive payment for securities sold, but in no event more than seven days. Interfund Loans effected within
seven days of each other will be treated as separate loan transactions for purposes of this limitation. Each Interfund Loan
may be called on one business day’s notice by a lending Participating Fund and may be repaid on any day by a borrowing
Participating Fund.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
33
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
Loans under the Interfund Program are subject to the risk that the borrowing Participating Fund could be unable to repay the
loan when due, and a delay in repayment to the lending Participating Fund could result in a lost opportunity by the lending
Participating Fund to invest those loaned assets and additional lending costs. Because the Investment Manager provides
investment management services to both borrowing and lending Participating Funds, the Investment Manager may have a
potential conflict of interest in determining that an Interfund Loan is comparable in credit quality to other high-quality money
market instruments. The Participating Fund has adopted policies and procedures that are designed to manage potential
conflicts of interest, but the administration of the Interfund Program may be subject to such conflicts.
As noted above, the Fund may only participate in the Interfund Program as a Lending Fund. The Fund did not lend money
under the Interfund Program during the six months ended June 30, 2025.
Note 9.
Investments in illiquid investments
The Fund may not acquire any illiquid investment if, immediately after the acquisition, the Fund would have invested more
than 15% of Managed Assets in illiquid investments that are assets. For these purposes, an “illiquid investment” means any
investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven
calendar days or less without the sale or disposition significantly changing the market value of the investment.
Note 10.
Significant risks
Derivatives risk
Losses involving derivative instruments may be substantial, because a relatively small movement in the underlying reference
(which is generally the price, rate or other economic indicator associated with a security(ies), commodity, currency, index or
other instrument or asset) may result in a substantial loss for the Fund. In addition to the potential for increased losses, the
use of derivative instruments may lead to increased volatility within the Fund. Derivatives will typically increase the Fund’s
exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including
correlation risk, counterparty risk, hedging risk, leverage risk, liquidity risk and pricing risk.
Information technology sector risk
The Fund invests a substantial portion of its assets in technology and technology-related companies. The market prices of
technology and technology-related stocks tend to exhibit a greater degree of market risk and price volatility than other types
of investments. These stocks may fall in and out of favor with investors rapidly, which may cause sudden selling and
dramatically lower market prices. These stocks also may be affected adversely by changes in technology, consumer and
business purchasing patterns, government regulation and/or obsolete products or services. In addition, a rising interest rate
environment tends to negatively affect technology and technology-related companies. In such an environment, those
companies with high market valuations may appear less attractive to investors, which may cause sharp decreases in the
companies’ market prices. Further, those technology or technology-related companies seeking to finance their expansion
would have increased borrowing costs, which may negatively impact their earnings. As a result, these factors may
negatively affect the performance of the Fund. Finally, the Fund may be susceptible to factors affecting the technology and
technology-related industries, and the Fund’s net asset value may fluctuate more than a fund that invests in a wider range of
industries. Technology and technology-related companies are often smaller and less experienced companies and may be
subject to greater risks than larger companies, such as limited product lines, markets and financial and managerial
resources. These risks may be heightened for technology companies in foreign markets. Some companies in the
information technology sector are facing increased government and regulatory scrutiny and may be subject to adverse
government or regulatory action, which could negatively impact the value of their securities.
Market risk
The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be
due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or
social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and
reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely
affect the Fund’s ability to price or value hard-to-value assets in thinly traded and closed markets and could cause
operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events
34
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
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, other conflicts, 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.
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
value will likely be more volatile than the value of a more diversified fund.
Options risk
The Fund engages in transactions in options on securities, indices, exchange traded funds and market baskets of securities
on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices and expiration
dates and require the parties to post margin against their obligations, and the performance of the parties’ obligations in
connection with such options is guaranteed by the exchange or a related clearing corporation. OTC options have more
flexible terms negotiated between the buyer and the seller, but generally do not require the parties to post margin and are
subject to greater credit risk. OTC options also involve greater liquidity risk.
In addition to writing call options as described above, the Fund may purchase put options. By buying a put option, the Fund
will pay a premium to acquire a right to sell the securities or instruments underlying the put at the exercise price of the
option. The Fund will lose money if the securities or instruments underlying the option do not decline in value below the
exercise price of the option by an amount sufficient to offset the premium paid to acquire the option. To the extent the Fund
purchases put options in the OTC market, the Fund will be subject to the credit risk of the seller of the option. The Fund also
may write put options on the types of securities or instruments that may be held by the Fund, provided that such put options
are secured by segregated, liquid instruments. The Fund will receive a premium for writing a put option, which increases the
Fund’s return. In exchange for the premium received, the Fund has the obligation to buy the securities or instruments
underlying the option at an agreed-upon exercise price if the securities or instruments decrease below the exercise price of
the option.
The Fund will lose money if the securities or instruments decrease in value so that the amount the Fund is obligated to pay
the counterparty to the option to purchase the securities underlying the option upon exercise of the option exceeds the value
of those securities by an amount that is greater than the premium received by the Fund for writing the option.
The Fund may purchase call options on any of the types of securities or instruments in which it may invest. In exchange for
paying the option premium, a purchased call option gives the Fund the right to buy, and obligates the seller to sell, the
underlying security or instrument at the exercise price. The Fund will lose money if the securities or instruments underlying
the option do not appreciate in value in an amount sufficient to offset the premium paid by the Fund to acquire the option.
Writing call options risk
A principal aspect of the Fund’s investment strategy involves writing call options on the NASDAQ 100. This part of the Fund’s
strategy subjects the Fund to certain additional risks. A decision as to whether, when and how to use options involves the
exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful to some degree because of
market behavior or unexpected events. The principal factors affecting the market value of an option include supply and
demand, interest rates, the current market price of the underlying index or security in relation to the exercise price of the
option, the actual or perceived volatility of the underlying index or security and the time remaining until the expiration date.
The Fund intends to write call options on the NASDAQ 100; however, it does not intend to have a portfolio of securities that
mirrors the securities in the NASDAQ 100. As a result, during a period when the Fund has outstanding call options written on
the NASDAQ 100, the NASDAQ 100 may appreciate to a greater extent than the securities in the Fund’s portfolio. If the call
options are exercised in these circumstances, the Fund’s loss on the options will be greater because it will be paying the
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
35
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
option holder not only an amount effectively representing appreciation on securities in its own portfolio but also an amount
representing the greater appreciation experienced by the securities in the NASDAQ 100 that the Fund does not own. If, at a
time these call options may be exercised, the securities underlying these options have market values above the exercise
price, then these call options will be exercised and the Fund will be obligated to deliver to the option holder either the
securities underlying these options or to deliver the cash value of those securities, in exchange for which the option holder
will pay the Fund the exercise price. In either case, the Fund will incur losses to the extent the market value of the underlying
securities exceed the sum of the premium the Fund received from writing the call options and the exercise price of the call
options, which loss may be very substantial.
To the extent all or part of the Fund’s call options are covered, the Fund forgoes, during the option’s life, the opportunity to
profit from increases in the market value of the security underlying the call option above the sum of the option premium
received and the exercise price of the call, but has retained the risk of loss should the price of the underlying security decline
below the exercise price minus the option premium received. The writer of an exchange-listed option on a security has no
control over when during the exercise period of the option (which may be a single day or multiple days) it may be required to
fulfill its obligation as a writer of the option. Once an option writer has received an exercise notice, it would be obligated to
deliver the underlying security at the exercise price. Thus, the writing of call options may require the Fund to sell portfolio
securities at inopportune times or for prices other than current market values and will limit the amount of appreciation the
Fund can realize above the exercise price of an option.
The Fund may be required to sell investments from its portfolio to effect cash settlement (or transfer ownership of a stock
or other instrument to physically settle) on any written call options that are exercised. Such sales (or transfers) may occur at
inopportune times, and the Fund may incur transaction costs that increase the costs borne by Common Stockholders. The
Fund may sell written call options over an exchange or in the OTC market. The options in the OTC markets may not be as
liquid as exchange-listed options. The Fund may be limited in the number of counterparties willing to take positions opposite
the Fund or may find the terms of such counterparties to be less favorable than the terms available for listed options. The
Fund cannot guarantee that its options strategies will be effective. Moreover, OTC options may provide less favorable tax
treatment than listed options.
The value of options may be adversely affected if the market for such options becomes less liquid or smaller. There can be
no assurance that a liquid market will exist when the Fund seeks to close out an option position, in the case of a call option
written, by buying the option back. Reasons for the absence of a liquid secondary market on an exchange include the
following: (i) there may be insufficient trading interest in certain options; (ii) restrictions may be imposed by an exchange on
opening transactions or closing transactions or both; (iii) trading halts, suspensions or other restrictions may be imposed
with respect to particular classes or series of options; (iv) unusual or unforeseen circumstances may interrupt normal
operations on an exchange; (v) the facilities of an exchange or the Options Clearing Corporation (OCC) may not at all times
be adequate to handle current trading volume; or (vi) one or more exchanges could, for economic or other reasons, decide or
be compelled to discontinue the trading of options (or a particular class or series of options) at some future date. If trading
were discontinued, the secondary market on that exchange (or in that class or series of options) would cease to exist.
However, outstanding options on that exchange that had been issued by the OCC as a result of trades on that exchange
would continue to be exercisable in accordance with their terms. The Fund’s ability to terminate OTC options will be more
limited than with exchange-traded options and may involve the risk that broker-dealers participating in such transactions will
not fulfill their obligations.
The hours of trading for options may not conform to the hours during which the underlying securities are traded. To the
extent that the options markets close before the markets for the underlying securities, significant price and rate movements
can take place in the underlying markets that would not be reflected concurrently in the options markets. Call options are
marked to market daily and their value will be affected by changes in the value of and dividend rates of the underlying
common stocks, changes in interest rates, changes in the actual or perceived volatility of the stock market and the
underlying common stocks and the remaining time to the options’ expiration.
Additionally, the exercise price of an option may be adjusted downward before the option’s expiration as a result of the
occurrence of certain corporate events affecting the underlying equity security, such as extraordinary dividends, stock splits,
merger or other extraordinary distributions or events. A reduction in the exercise price of an option would reduce the Fund’s
capital appreciation potential on the underlying security.
36
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Notes to Financial Statements
(continued)
June 30, 2025 (Unaudited)
The Fund’s options transactions will be subject to limitations established by each of the exchanges, boards of trade or other
trading facilities on which such options are traded. These limitations govern the maximum number of options in each class
which may be written or purchased by a single investor or group of investors acting in concert, regardless of whether the
options are written or purchased on the same or different exchanges, boards of trade or other trading facilities or are held or
written in one or more accounts or through one or more brokers. Thus, the number of options which the Fund may write or
purchase may be affected by options written or purchased by other investment advisory clients of the Investment Manager.
An exchange, board of trade or other trading facility may order the liquidation of positions found to be in excess of these
limits, and may impose certain other sanctions.
Note 11.
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 12.
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 their activities as part of 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
.
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, it is inherently difficult to determine whether any loss is probable or even reasonably possible, or to reasonably
estimate the amount of any loss that may result from such matters. An adverse outcome in one or more of these
proceedings could result in adverse judgments, settlements, fines, penalties or other relief, and may lead to further claims,
examinations, adverse publicity or reputational damage, each of which could have a material adverse effect on the
consolidated financial condition or results of operations or financial condition of Ameriprise Financial or one or more of its
affiliates that provide services to the Fund.
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
37
Approval of Management Agreement
(Unaudited)
Columbia Management Investment Advisers, LLC (the Investment Manager, and together with its domestic and global
affiliates, Columbia Threadneedle Investments), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise
Financial), serves as the investment manager to Columbia Seligman Premium Technology Growth Fund, Inc. (the Fund).
Under a management agreement (the Management Agreement), the Investment Manager provides investment advice and
other services to the Fund and other funds in the Columbia Fund family (collectively, the Columbia Funds).
On an annual basis, the Fund’s Board of Trustees (the Board), including the independent Board members (the Independent
Trustees), considers renewal of the Management Agreement. The Investment Manager prepared detailed reports for the
Board and its Contracts Committee (including its Contracts Subcommittee) in March, April and June 2025, including reports
providing the results of analyses performed by a third-party data provider, Broadridge Financial Solutions, Inc. (Broadridge),
and comprehensive responses by the Investment Manager to written requests for information by independent legal counsel
to the Independent Trustees (Independent Legal Counsel), to assist the Board in making this determination. In addition,
throughout the year, the Board (or its committees or subcommittees) regularly meets with portfolio management teams and
senior management personnel and reviews information prepared by the Investment Manager addressing the services the
Investment Manager provides and Fund performance. The Board also accords appropriate weight to the work, deliberations
and conclusions of the various committees (including their subcommittees), such as the Contracts Committee, the
Investment Review Committee, the Audit Committee and the Compliance Committee in determining whether to continue the
Management Agreement.
The Board, at its June 26, 2025 Board meeting (the June Meeting), considered the renewal of the Management Agreement
for an additional one-year term. At the June Meeting, Independent Legal Counsel reviewed with the Independent Trustees
various factors relevant to the Board’s consideration of advisory agreements and the Board’s legal responsibilities related to
such consideration. The Independent Trustees considered such information as they, their legal counsel or the Investment
Manager believed reasonably necessary to evaluate and to approve the continuation of the Management Agreement.
Among other things, the information and factors considered included the following:
•
Information on the investment performance of the Fund relative to the performance of a group of funds determined to
be comparable to the Fund by Broadridge, as well as performance relative to one or more benchmarks;
•
Information on the Fund’s management fees and total expenses, including information comparing the Fund’s expenses
to those of a group of comparable funds, as determined by Broadridge;
•
Terms of the Management Agreement;
•
Descriptions of various services performed by the Investment Manager under the Management Agreement, including
portfolio management and portfolio trading practices;
•
Information regarding the resources of the Investment Manager, including information regarding senior management,
portfolio managers and other personnel;
•
Information regarding the capabilities of the Investment Manager with respect to compliance monitoring services;
•
The profitability to the Investment Manager and its affiliates from their relationships with the Fund; and
•
Report provided by the Board’s independent fee consultant, JDL Consultants, LLC (JDL).
Following an analysis and discussion of the foregoing, and the factors identified below, the Board, including all of the
Independent Trustees, approved the renewal of the Management Agreement.
Nature, extent and quality of services provided by the Investment Manager
The Board analyzed various reports and presentations it had received detailing the services performed by the Investment
Manager, as well as its history, expertise, resources and relative capabilities, and the qualifications of its personnel.
38
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
Approval of Management Agreement
(continued)
(Unaudited)
The Board specifically considered the many developments during recent years concerning the services provided by the
Investment Manager. Among other things, the Board noted the organization and depth of the equity and credit research
departments. The Board further observed the enhancements to the investment risk management department’s processes,
systems and oversight over the past several years. The Board also took into account the broad scope of services provided
by the Investment Manager to the Fund, including, among other services, investment, risk and compliance oversight. The
Board also took into account the information it received concerning the Investment Manager’s ability to attract and retain
key portfolio management personnel and that it has sufficient resources to provide competitive and adequate compensation
to investment personnel.
In connection with the Board’s evaluation of the overall package of services provided by the Investment Manager, the Board
also considered the nature, quality and range of administrative services provided to the Fund by the Investment Manager, as
well as the achievements in 2024 in the performance of administrative services, and noted the various enhancements
anticipated for 2025. In evaluating the quality of services provided under the Management Agreement, the Board also took
into account the organization and strength of the Fund’s and its service providers’ compliance programs. The Board also
reviewed the financial condition of the Investment Manager and its affiliates and each entity’s ability to carry out its
responsibilities under the Management Agreement.
In addition, the Board discussed the acceptability of the terms of the Management Agreement, noting that no changes were
proposed from the form of agreement previously approved. The Board also noted the wide array of legal and compliance
services provided to the Fund under the Management Agreement.
After reviewing these and related factors (including investment performance as discussed below), the Board concluded,
within the context of their overall conclusions, that the nature, extent and quality of the services provided to the Fund under
the Management Agreement supported the continuation of the Management Agreement.
Investment performance
The Board carefully reviewed the investment performance of the Fund, including detailed reports providing the results of
analyses performed by each of the Investment Manager, Broadridge and JDL collectively showing, for various periods
(including since manager inception): (i) the performance of the Fund, (ii) the Fund’s performance relative to peers and
benchmarks and (iii) the net assets of the Fund. The Board observed that the Fund’s performance for certain periods ranked
above median based on information provided by Broadridge.
The Board also reviewed a description of the third-party data provider’s methodology for identifying the Fund’s peer groups
for purposes of performance and expense comparisons.
The Board also considered the Investment Manager’s performance and reputation generally, After reviewing these and
related factors, the Board concluded, within the context of their overall conclusions, that the performance of the Fund and
the Investment Manager, in light of other considerations, supported the continuation of the Management Agreement.
Comparative fees, costs of services provided and the profits realized by the Investment Manager and its
affiliates from their relationships with the Fund
The Board reviewed comparative fees and the costs of services provided under the Management Agreement. The Board
members considered detailed comparative information set forth in an annual report on fees and expenses, including, among
other things, data (based on analyses conducted by Broadridge and JDL) showing a comparison of the Fund’s expenses
with median expenses paid by funds in its comparative peer universe, as well as data showing the Fund’s contribution to the
Investment Manager’s profitability.
The Board considered the reports of JDL, which assisted in the Board’s analysis of the Funds’ performance and expenses
and the reasonableness of the Funds’ fee rates. The Board accorded particular weight to the notion that a primary objective
of the level of fees is to achieve a rational pricing model applied consistently across the various product lines in the Fund
family, while assuring that the overall fees for each Columbia Fund (with certain exceptions) are generally in line with the
current “pricing philosophy” such that Fund total expense ratios, in general, approximate or are lower than the median
expense ratios of funds in the same Lipper comparison universe. With respect to the Fund, a closed-end Fund, the Board
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
39
Approval of Management Agreement
(continued)
(Unaudited)
observed that although the Fund’s expense ratio was higher than the comparative closed-end fund peer group’s median
expense ratio, the Fund is the only technology-focused fund in the universe. The Board further observed that, unlike many
technology-focused open-end funds, the Fund employs a unique options-writing strategy designed to cushion its downside
performance.
After reviewing these and related factors, the Board concluded, within the context of their overall conclusions, that the levels
of management fees and expenses of the Fund, in light of other considerations, supported the continuation of the
Management Agreement.
The Board also considered the profitability of the Investment Manager and its affiliates in connection with the Investment
Manager providing management services to the Fund. With respect to the profitability of the Investment Manager and its
affiliates, the Independent Trustees referred to information discussing the profitability to the Investment Manager and
Ameriprise Financial from managing the Columbia Funds. The Board considered that the profitability generated by the
Investment Manager in 2024 had increased from 2023 levels due to a variety of factors, including the increased assets
under management of the Funds. It also took into account the indirect economic benefits flowing to the Investment
Manager or its affiliates in connection with managing the Columbia Funds, such as the enhanced ability to offer various
other financial products to Ameriprise Financial customers, soft dollar benefits and overall reputational advantages. The
Board noted that the fees paid by the Fund should permit the Investment Manager to offer competitive compensation to its
personnel, make necessary investments in its business and earn an appropriate profit. After reviewing these and related
factors, the Board concluded, within the context of their overall conclusions, that the costs of services provided and the
profitability to the Investment Manager and its affiliates from their relationships with the Fund supported the continuation of
the Management Agreement.
Economies of scale
The Board considered the economies of scale that might be realized as the Fund’s net asset level grows and took note of the
extent to which Fund shareholders might also benefit from such growth. In this regard, the Board took into account that
management fees decline as Fund assets exceed various breakpoints, all of which have not been surpassed. The Board
observed that the Management Agreement thus provides for breakpoints in the management fee rate schedule that allow
opportunities for shareholders to realize lower fees as Fund assets grow and that there are additional opportunities through
other means for sharing economies of scale with shareholders. The Board observed, however, that there is limited potential
for economies of scale that would inure to the benefit of shareholders, given the closed-end nature of the Fund.
Conclusion
The Board reviewed all of the above considerations in reaching its decision to approve the continuation of the Management
Agreement. In reaching its conclusions, no single factor was determinative.
On June 26, 2025, the Board, including all of the Independent Trustees, determined that fees payable under the Management
Agreement were fair and reasonable in light of the extent and quality of services provided and approved the renewal of the
Management Agreement.
RESULTS OF MEETING OF STOCKHOLDERS
(Unaudited)
The 15th Annual Meeting of Stockholders of Columbia Seligman Premium Technology Growth Fund, Inc. (the Fund) was
held on June 24, 2025 at the Marquette Hotel, 710 S. Marquette Avenue, Minneapolis, Minnesota 55402. Stockholders voted
in favor of two Board of Directors’ recommended proposals. The description of each proposal and number of shares voted
are as follows:
40
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
RESULTS OF MEETING OF STOCKHOLDERS
(continued)
(Unaudited)
Proposal 1
To elect four directors to the Fund’s Board of Directors to serve until the 2028 Annual Meeting of Stockholders and until their
successors are duly elected and qualified was as follows:
Director | For | Withheld |
Daniel J. Beckman | 10,755,465 | 227,023 |
Janet L. Carrig | 10,697,942 | 284,546 |
Douglas A. Hacker | 10,704,120 | 278,368 |
Sandra L. Yeager | 10,737,493 | 244,995 |
Proposal 2
To ratify the selection of PricewaterhouseCoopers LLP as the Fund’s independent registered public accounting firm for
2025:
For | Against | Abstain |
10,711,553 | 111,532 | 159,397 |
Columbia Seligman Premium Technology Growth Fund, Inc. | 2025
41
Columbia Seligman Premium Technology Growth Fund, Inc.
290 Congress Street
Boston, MA 02210
You should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. You can obtain the
Fund’s most recent periodic reports and other regulatory filings by contacting your financial advisor or Equiniti Trust Company, LLC at
866.666.1532 or 6201 15th Avenue, Brooklyn, NY 11219. These reports and other filings can also be found on the Securities and
Exchange Commission’s EDGAR Database. You should read these reports and other filings carefully before investing.
Columbia Threadneedle Investments
®
(Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of
companies. All rights reserved.
© 2025 Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
SAR221_12_R01_(08/25)
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments
(a)The registrant’s “Schedule I – Investments in securities of unaffiliated issuers” (as set forth in
17 CFR 210.12-12) is included in Item 1 of this Form N-CSR.
(b)Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Not applicable.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract
Statement regarding basis for approval of Investment Advisory Contract is included in Item 1 of this Form N-CSR.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
(1)For the period ended June 30, 2025, under the terms of its stock repurchase program, the registrant did not repurchase any of its shares of common stock.
(2a) The registrant's current stock repurchase program, which is reviewed at least annually by the registrant’s Board of Directors, was first approved by the registrant’s Board of Directors in 2009.
(2b) Provided that the criteria for share repurchases are met under the registrant’s stock repurchase program, there is no limit to the number of shares the registrant can repurchase.
(2c) The registrant’s stock repurchase program has no expiration date.
(2d) Not Applicable
(2e) Not Applicable
Item 15. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors implemented since the registrant last provided disclosure as to such procedures in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K or Item 15 of Form N-CSR.
Item 16. Controls and Procedures
(a)The registrant’s principal executive officer and principal financial officer, based on their evaluation of the registrant’s disclosure controls and procedures as of a date within 90 days of the filing of this report, have concluded that such controls and procedures are adequately designed to ensure that information required to be disclosed by the registrant in Form N-CSR is accumulated and communicated to the registrant’s management, including the principal executive officer and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
(b)There was no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation
Not applicable.
Item 19. Exhibits
(a)(1) Not applicable
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
(registrant) |
Columbia Seligman Premium Technology Growth Fund, Inc |
|
|
|
|
By (Signature and Title) |
/s/ Daniel J. Beckman |
|
|
Daniel J. Beckman, President and Principal Executive Officer |
|
|
|
|
Date |
August 21, 2025 |
|
|
|
|
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By (Signature and Title) |
/s/ Daniel J. Beckman |
|
|
Daniel J. Beckman, President and Principal Executive Officer |
|
|
|
|
Date |
August 21, 2025 |
|
By (Signature and Title) |
/s/ Michael G. Clarke |
|
|
Michael G. Clarke, Chief Financial Officer, |
|
|
Principal Financial Officer and Senior Vice President |
|
|
|
|
Date |
August 21, 2025 |
|
By (Signature and Title) |
/s/ Charles H. Chiesa |
|
|
Charles H. Chiesa, Treasurer, Chief Accounting |
|
|
Officer and Principal Financial Officer |
|
|
|
|
Date |
August 21, 2025 |