Columbia Seligman
Premium Technology Growth
Fund, Inc.
Annual
Report
December 31,
2025
|
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). On
November 7, 2025, the Fund declared a
fourth quarter distribution, beyond its typical quarterly managed distribution
policy, in the amount of $1.3280 per share of
common stock (which includes the Fund’s typical quarterly $0.4625 per share
distribution). A federal excise tax of 4%
applies to funds that do not distribute substantially all of their annual income
(including net gains) before the end of the
calendar year. The Fund’s income for 2025 exceeded the amounts previously
distributed pursuant to the Fund’s quarterly
managed distribution policy. As a result, the Fund distributed this excess
income so that it will not incur the 4% federal excise
tax in 2025. The Fund’s most recent distribution under its managed distribution
policy (paid on February 24, 2026)
amounted to $0.4625 per share, which is equal to a quarterly rate of 1.1577%
(4.63% annualized) of the Fund’s market price
of $39.95 per share as of January 31, 2026. 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
|
2 | |
4 | |
|
5 | |
14 | |
|
16 | |
20 | |
|
21 | |
22 | |
|
24 | |
26 | |
|
38 | |
39 | |
|
39 | |
45 |
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
Equiniti Trust
Company, LLC
28 Liberty Street,
Floor 53
New York, NY
10005
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
|
Average
Annual Total Returns (%) | |||
|
|
1
year |
5
years |
10
years |
|
Market
Price |
25.01 |
17.70 |
19.35 |
|
Net
Asset Value |
29.39 |
17.90 |
20.15 |
|
S&P
North American Technology Sector Index
|
27.82 |
18.02 |
22.54 |
|
Russell
3000 Index
|
17.15 |
13.15 |
14.29 |
Past
performance does not guarantee future performance. Performance does not reflect
the deduction of taxes
that a stockholder may pay on fund distributions or on the sale of fund shares.
Performance results reflect
the effect of any fee waivers / expense reimbursements, if applicable. All
results shown assume reinvestment
of distributions. Visit columbiathreadneedleus.com/investment-products/closed-end-funds for
more
recent performance information.
Returns
reflect changes in market price or net asset value, as applicable, and assume
reinvestment of distributions.
Returns do not reflect the deduction of taxes that investors may pay on
distributions or the sale of
shares.
|
Price
Per Share | ||||
|
|
December
31, 2025 |
September
30, 2025 |
June
30, 2025 |
March
31, 2025 |
|
Market
Price ($) |
36.79 |
35.32 |
30.41 |
27.98 |
|
Net
Asset Value ($) |
37.95 |
37.16 |
29.95 |
27.53 |
|
Distributions
Paid Per Common Share | |
|
Payable
Date |
Per
Share Amount ($) |
|
January
21, 2025 |
3.2669
(a) |
|
February
25, 2025 |
0.4625 |
|
May
27, 2025 |
0.4625 |
|
August 26,
2025 |
0.4625 |
|
December 9,
2025 |
1.3280
(b) |
(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.
(b) The
distribution amount includes a special 2025 fourth quarter distribution beyond
the Fund’s typical quarterly
managed distribution policy to stockholders of record on November 17, 2025 in
the amount of $0.8655 per share and
the Fund’s typical quarterly distribution of $0.4625 per
share.
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)
Performance
of a hypothetical $10,000 investment (December
31, 2015 —
December
31, 2025)
The chart
above shows the change in value of a hypothetical $10,000 investment in Columbia
Seligman Premium Technology Growth Fund, Inc. during the stated time
period, and
does not reflect the deduction of taxes that a shareholder may pay on Fund
distributions or on the sale of Fund shares.
The tables below
show the investment makeup of the Fund represented as a percentage of Fund net
assets as of December 31, 2025.
Derivatives are excluded from the tables unless otherwise noted. The Fund’s
portfolio composition is subject to
change.
|
Top
Holdings | |
|
Bloom
Energy Corp., Class A |
8.2
% |
|
Lam
Research Corp. |
7.2
% |
|
NVIDIA
Corp. |
5.3
% |
|
Broadcom,
Inc. |
5.0
% |
|
Alphabet,
Inc., Class A |
5.0
% |
|
Microsoft
Corp. |
4.1
% |
|
Western
Digital Corp. |
3.9
% |
|
Marvell
Technology, Inc. |
3.9
% |
|
Applied
Materials, Inc. |
3.8
% |
|
Apple,
Inc. |
3.4
% |
|
Equity
Sector Allocation | |
|
Information
Technology |
68.8
% |
|
Communication
Services |
12.3
% |
|
Industrials |
10.1
% |
|
Financials |
4.7
% |
|
Consumer
Discretionary |
2.5
% |
|
Other |
0.2
% |
|
Information
Technology Sub-industry Allocation | |
|
Semiconductors |
22.5
% |
|
Semiconductor
Materials & Equipment |
13.7
% |
|
Technology
Hardware, Storage & Peripherals |
10.5
% |
|
Systems
Software |
9.8
% |
|
Application
Software |
4.4
% |
|
Internet
Services & Infrastructure |
3.5
% |
|
Communications
Equipment |
3.1
% |
|
Electronic
Equipment & Instruments |
1.0
% |
|
Other |
0.3
% |
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
3
Manager
Discussion of Fund Performance
(Unaudited)
Top
Performance Contributors
Stock
selection | Selections in the
technology hardware, electronic equipment and semiconductors & semiconductor
equipment industries
boosted the Fund’s performance relative to its benchmark during the annual
period.
Allocations
|
Larger allocations to the electronic equipment and semiconductors &
semiconductor equipment industries, as well as smaller
allocations to the software industry lifted the Fund’s relative performance
during the annual period.
Individual
holdings | Positions in Bloom
Energy, a fuel cell technology provider; Lam Research, a semiconductor
fabrication equipment
manufacturer; Broadcom, a global semiconductor and infrastructure software
solutions provider; Western Digital, a data storage
solutions provider; and NVIDIA, a leading designer of GPUs and AI computing
platforms, were top contributors to the
Fund’s relative performance during the annual period.
Top
Performance Detractors
Stock
selection | Selections
in the IT services, interactive media & services, software and
entertainment industries hurt the Fund’s relative
performance during the annual period.
Allocations
|
Overweights in the financials sector and the interactive media & services
industry, as well as a neutral weight in the electronic
equipment industry detracted from the Fund’s relative
performance.
Individual
holdings | Positions in Global
Payments, a payment technology and software solutions provider; GoDaddy, an
internet domain
registrar and web hosting company; ON Semiconductor, a supplier of power and
sensing semiconductor solutions; Wix.com,
a cloud-based web development platform provider; and Salesforce, a leading
provider of customer relationship
management (CRM) software and enterprise cloud solutions, were top detractors
from the Fund’s relative performance during
the annual period.
Derivatives
usage | On a stand-alone
basis, the Fund’s use of derivatives during the period had a negative impact on
the Fund’s
performance.
4
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks
(Unaudited)
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 IndexSM
(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).
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
5
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;
6
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
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
Risks
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
7
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 "Risks and
uncertanties" in the Notes to Financial Statements
section.
Active
Management Risk. The Fund is
actively managed 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 significant risks. Derivatives are financial
instruments, traded 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
8
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
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 adversely 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 may 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,
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
9
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
currency conversion costs when converting foreign currencies into U.S. dollars
and vice versa.
Interest
Rate Risk. Interest rate risk
is the risk of losses attributable to changes in interest rates. In general, if
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 actions may
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/or wider bid/ask spreads 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 companies (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.
10
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
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 events – 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/or 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 Investment Plan.
See “Dividend
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
11
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
Investment Plan” in
the Fund’s Prospectus. Common Shares may be issued under the plan 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
advances to the same extent as if such proceeds were
fully invested as planned.
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 Fund’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.
12
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
13
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 |
) |
|
Annual
Expenses ( | |
|
Management
fees(b) |
|
|
Other
expenses |
|
|
Acquired
fund fees and expenses |
|
|
Total
Annual Expenses(c) |
|
(a)
There are no
service 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. As of the date of this
report, the
Fund has not issued securities other than Common
Shares.
(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.
14
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
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 2024, 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 |
|
2024 |
|
|
|
|
|
|
|
1st
Quarter |
|
|
|
|
|
|
|
2nd
Quarter |
|
|
|
|
|
|
|
3rd
Quarter |
|
|
|
|
|
|
|
4th
Quarter |
|
|
|
|
|
(
) |
|
2025 |
|
|
|
|
|
|
|
1st
Quarter |
|
|
|
|
(
) |
|
|
2nd
Quarter |
|
|
|
|
|
|
|
3rd
Quarter |
|
|
|
|
(
) |
|
|
4th
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 December 31, 2025 were $36.79 , $37.95 , and (3.06 )%, respectively.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
15
Portfolio
of Investments
December
31, 2025
(Percentages
represent value of investments compared to net assets)
Investments
in securities
|
Common
Stocks 98.6% | ||
|
Issuer |
Shares |
Value
($) |
|
Communication
Services 12.3% | ||
|
Advertising
0.2% | ||
|
NIQ
Global Intelligence PLC(a)
|
85,997 |
1,418,091 |
|
Interactive
Home Entertainment 0.6% | ||
|
Electronic
Arts, Inc. |
19,661 |
4,017,332 |
|
Interactive
Media & Services 11.5% | ||
|
Alphabet,
Inc., Class A(b)
|
106,427 |
33,311,651 |
|
Alphabet,
Inc., Class C |
51,636 |
16,203,377 |
|
Match
Group, Inc. |
253,910 |
8,198,754 |
|
Meta
Platforms, Inc., Class A |
15,064 |
9,943,596 |
|
Pinterest,
Inc., Class A(a)
|
291,923 |
7,557,886 |
|
TripAdvisor,
Inc.(a)
|
127,406 |
1,855,031 |
|
Total |
77,070,295 | |
|
Total
Communication Services |
82,505,718 | |
|
Consumer
Discretionary 2.5% | ||
|
Broadline
Retail 1.9% | ||
|
Amazon.com,
Inc.(a),(b)
|
32,372 |
7,472,105 |
|
eBay,
Inc.(b)
|
58,587 |
5,102,928 |
|
Total |
12,575,033 | |
|
Hotels,
Resorts & Cruise Lines 0.6% | ||
|
Airbnb,
Inc., Class A(a)
|
29,364 |
3,985,282 |
|
Total
Consumer Discretionary |
16,560,315 | |
|
Financials
4.7% | ||
|
Transaction
& Payment Processing Services 4.7% | ||
|
Block,
Inc., Class A(a)
|
72,737 |
4,734,451 |
|
Global
Payments, Inc. |
157,757 |
12,210,392 |
|
Visa,
Inc., Class A(b)
|
42,327 |
14,844,502 |
|
Total |
31,789,345 | |
|
Total
Financials |
31,789,345 | |
|
Industrials
10.1% | ||
|
Heavy
Electrical Equipment 8.2% | ||
|
Bloom
Energy Corp., Class A(a),(b)
|
628,324 |
54,595,072 |
|
Passenger
Ground Transportation 1.9% | ||
|
Lyft,
Inc., Class A(a)
|
665,342 |
12,887,675 |
|
Total
Industrials |
67,482,747 | |
Information
Technology 68.8% | ||
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Application
Software 4.4% | ||
|
BILL
Holdings, Inc.(a)
|
55,504 |
3,027,188 |
|
DocuSign,
Inc.(a)
|
43,610 |
2,982,924 |
|
Five9,
Inc.(a)
|
37,039 |
742,632 |
|
Intuit,
Inc. |
4,568 |
3,025,935 |
|
RingCentral,
Inc., Class A(a)
|
158,466 |
4,576,498 |
|
Salesforce,
Inc. |
34,246 |
9,072,108 |
|
Synopsys,
Inc.(a)
|
12,745 |
5,986,581 |
|
Total |
29,413,866 | |
|
Communications
Equipment 3.1% | ||
|
Arista
Networks, Inc.(a)
|
79,883 |
10,467,069 |
|
Cisco
Systems, Inc. |
135,892 |
10,467,761 |
|
Total |
20,934,830 | |
|
Electronic
Components 0.2% | ||
|
Coherent
Corp.(a)
|
8,847 |
1,632,891 |
|
Electronic
Equipment & Instruments 1.0% | ||
|
Advanced
Energy Industries, Inc. |
30,817 |
6,452,155 |
|
Internet
Services & Infrastructure 3.5% | ||
|
GoDaddy,
Inc., Class A(a)
|
95,018 |
11,789,834 |
|
Wix.com
Ltd.(a)
|
114,372 |
11,882,107 |
|
Total |
23,671,941 | |
|
IT
Consulting & Other Services 0.1% | ||
|
EPAM
Systems, Inc.(a)
|
3,972 |
813,783 |
|
Semiconductor
Materials & Equipment 13.7% | ||
|
Applied
Materials, Inc.(b)
|
100,339 |
25,786,120 |
|
Lam
Research Corp. |
280,611 |
48,034,991 |
|
Teradyne,
Inc.(b)
|
92,363 |
17,877,782 |
|
Total |
91,698,893 | |
|
Semiconductors
22.5% | ||
|
Broadcom,
Inc.(b)
|
97,431 |
33,720,868 |
|
Marvell
Technology, Inc. |
305,566 |
25,966,999 |
|
NVIDIA
Corp.(b)
|
189,838 |
35,404,787 |
|
NXP
Semiconductors NV |
35,549 |
7,716,266 |
|
ON
Semiconductor Corp.(a)
|
110,819 |
6,000,849 |
|
QUALCOMM,
Inc. |
37,965 |
6,493,913 |
|
Renesas
Electronics Corp.(a)
|
504,300 |
6,907,323 |
|
Semtech
Corp.(a)
|
131,627 |
9,699,593 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
16
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Portfolio
of Investments (continued)
December
31, 2025
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Synaptics,
Inc.(a)
|
159,447 |
11,802,267 |
|
Taiwan
Semiconductor Manufacturing Co., Ltd., ADR |
22,447 |
6,821,419 |
|
Total |
150,534,284 | |
|
Systems
Software 9.8% | ||
|
Adeia,
Inc. |
308,153 |
5,315,639 |
|
Check
Point Software Technologies Ltd.(a)
|
15,987 |
2,966,548 |
|
CyberArk
Software Ltd.(a)
|
3,873 |
1,727,590 |
|
Gen
Digital, Inc. |
425,628 |
11,572,825 |
|
Microsoft
Corp.(b)
|
56,725 |
27,433,345 |
|
Oracle
Corp. |
43,406 |
8,460,264 |
|
Palo
Alto Networks, Inc.(a)
|
23,401 |
4,310,464 |
|
Tenable
Holdings, Inc.(a)
|
157,736 |
3,711,528 |
|
Total |
65,498,203 | |
|
Technology
Hardware, Storage & Peripherals 10.5% | ||
|
Apple,
Inc.(b)
|
83,114 |
22,595,372 |
|
Hewlett
Packard Enterprise Co. |
442,282 |
10,623,614 |
|
NetApp,
Inc. |
103,324 |
11,064,967 |
|
Western
Digital Corp. |
151,965 |
26,179,010 |
|
Total |
70,462,963 | |
|
Total
Information Technology |
461,113,809 | |
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Real
Estate 0.2% | ||
|
Telecom
Tower REITs 0.2% | ||
|
SBA
Communications Corp. |
8,530 |
1,649,958 |
|
Total
Real Estate |
1,649,958 | |
|
Total
Common Stocks
(Cost:
$285,322,409) |
661,101,892 | |
|
Call
Option Contracts Purchased 0.0% | ||||
|
|
|
|
|
Value
($) |
|
(Cost:
$65,728) |
39,160 | |||
|
Money
Market Funds 1.5% | ||
|
|
Shares |
Value
($) |
|
Columbia
Short-Term Cash Fund, 3.825%(c),(d)
|
9,753,550 |
9,750,624 |
|
Total
Money Market Funds
(Cost:
$9,750,624) |
9,750,624 | |
|
Total
Investments in Securities
(Cost
$295,138,761) |
670,891,676 | |
|
Other
Assets & Liabilities, Net |
|
(720,412
) |
|
Net
Assets |
$670,171,264 | |
At December
31, 2025, securities and/or cash totaling $178,528,307 were pledged as
collateral.
Investments
in derivatives
|
Call
option contracts purchased | ||||||||
|
Description |
Counterparty |
Trading
currency |
Notional
amount |
Number
of
contracts |
Exercise
price/Rate |
Expiration
date |
Cost
($) |
Value
($) |
|
Bloom
Energy Corp. |
Morgan
Stanley |
USD |
773,321 |
89 |
115.00 |
02/20/2026 |
65,728 |
39,160 |
|
Call
option contracts written | ||||||||
|
Description |
Counterparty |
Trading
currency |
Notional
amount |
Number
of
contracts |
Exercise
price/Rate |
Expiration
date |
Premium
received
($) |
Value
($) |
|
Bloom
Energy Corp. |
Morgan
Stanley |
USD |
(2,154,872
) |
(248
) |
150.00 |
02/20/2026 |
(74,657
) |
(32,860
) |
|
Bloom
Energy Corp. |
Morgan
Stanley |
USD |
(2,154,872
) |
(248
) |
140.00 |
02/20/2026 |
(91,219
) |
(44,640
) |
|
Bloom
Energy Corp. |
Morgan
Stanley |
USD |
(2,154,872
) |
(248
) |
145.00 |
02/20/2026 |
(80,954
) |
(45,260
) |
|
Teradyne,
Inc. |
Morgan
Stanley |
USD |
(1,916,244
) |
(99
) |
185.00 |
01/16/2026 |
(52,780
) |
(125,235
) |
|
Teradyne,
Inc. |
Morgan
Stanley |
USD |
(1,916,244
) |
(99
) |
180.00 |
01/16/2026 |
(64,401
) |
(166,320
) |
|
Total |
|
|
|
|
|
|
(364,011
) |
(414,315
) |
Notes
to Portfolio of Investments
|
(a) |
Non-income
producing investment. |
|
(b) |
This
security or a portion of this security has been pledged as collateral in
connection with investments sold short and/or derivative
contracts. |
|
(c) |
The
rate shown is the seven-day current annualized yield at December 31,
2025. |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
17
Portfolio
of Investments (continued)
December
31, 2025
Notes
to Portfolio of Investments (continued)
|
(d) |
Under
the Investment Company Act of 1940, an affiliated company is one in which
the Fund owns 5% or more of the company’s outstanding voting securities,
or a company
which is under common ownership or control with the Fund. The value of the
holdings and transactions in these affiliated companies during the year
ended December
31, 2025 are as follows: |
|
Affiliated
issuers |
Beginning
of
period($) |
Purchases($) |
Sales($) |
Net
change in
unrealized
appreciation
(depreciation)($) |
End
of
period($) |
Realized
gain
(loss)($) |
Dividends($) |
End
of
period
shares |
|
Columbia
Short-Term Cash Fund, 3.825% | ||||||||
|
|
16,091,932 |
180,598,386 |
(186,938,823
) |
(871
) |
9,750,624 |
(1,111
) |
412,048 |
9,753,550 |
Abbreviation
Legend
|
ADR |
American
Depositary Receipt |
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
accompanying Notes to Financial Statements are an integral part of this
statement.
18
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Portfolio
of Investments (continued)
December
31, 2025
Fair
value measurements (continued)
The following
table is a summary of the inputs used to value the Fund’s investments at
December 31, 2025:
|
|
Level
1 ($) |
Level
2 ($) |
Level
3 ($) |
Total
($) |
Investments
in Securities |
|
|
|
|
|
Common
Stocks |
|
|
|
|
|
Communication
Services |
82,505,718 |
— |
— |
82,505,718 |
|
Consumer
Discretionary |
16,560,315 |
— |
— |
16,560,315 |
|
Financials |
31,789,345 |
— |
— |
31,789,345 |
|
Industrials |
67,482,747 |
— |
— |
67,482,747 |
|
Information
Technology |
454,206,486 |
6,907,323 |
— |
461,113,809 |
|
Real
Estate |
1,649,958 |
— |
— |
1,649,958 |
|
Total
Common Stocks |
654,194,569 |
6,907,323 |
— |
661,101,892 |
|
Call
Option Contracts Purchased |
39,160 |
— |
— |
39,160 |
|
Money
Market Funds |
9,750,624 |
— |
— |
9,750,624 |
|
Total
Investments in Securities |
663,984,353 |
6,907,323 |
— |
670,891,676 |
Investments
in Derivatives |
|
|
|
|
|
Liability |
|
|
|
|
|
Call
Option Contracts Written |
(414,315
) |
— |
— |
(414,315
) |
|
Total |
663,570,038 |
6,907,323 |
— |
670,477,361 |
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.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
19
Statement
of Assets and Liabilities
December
31, 2025
Assets |
|
|
Investments
in securities, at value |
|
|
Unaffiliated
issuers (cost $285,322,409) |
$661,101,892 |
|
Affiliated
issuers (cost $9,750,624) |
9,750,624 |
|
Option
contracts purchased (cost $65,728) |
39,160 |
|
Cash |
41,283 |
|
Receivable
for: |
|
|
Dividends |
282,431 |
|
Foreign
tax reclaims |
28,106 |
|
Prepaid
expenses |
48,060 |
|
Total
assets |
671,291,556 |
Liabilities |
|
|
Option
contracts written, at value (premiums received
$364,011) |
414,315 |
|
Payable
for: |
|
|
Investments
purchased |
405,970 |
|
Management
services fees |
19,617 |
|
Stockholder
servicing and transfer agent fees |
2,407 |
|
Stockholders’
meeting fees |
3,243 |
|
Compensation
of chief compliance officer |
106 |
|
Compensation
of board members |
13,719 |
|
Other
expenses |
59,749 |
|
Deferred
compensation of board members |
201,166 |
|
Total
liabilities |
1,120,292 |
|
Net
assets applicable to outstanding Common Stock |
$670,171,264 |
Represented
by |
|
|
Paid
in capital |
269,979,985 |
|
Total
distributable earnings (loss) |
400,191,279 |
|
Total
- representing net assets applicable to outstanding Common
Stock |
$670,171,264 |
|
Shares
outstanding applicable to |
|
|
Net
asset value per share of outstanding Common Stock |
$37.95 |
|
Market
price per share of Common Stock |
$36.79 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
20
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Statement
of Operations
Year
Ended December 31, 2025
Net
investment income |
|
|
Income: |
|
|
Dividends
— unaffiliated issuers |
$3,611,937 |
|
Dividends
— affiliated issuers |
412,048 |
|
Foreign
taxes withheld |
(45,927
) |
|
Total
income |
3,978,058 |
|
Expenses: |
|
|
Management
services fees |
5,954,753 |
|
Stockholder
servicing and transfer agent fees |
31,800 |
|
Custodian
fees |
15,197 |
|
Printing
and postage fees |
71,461 |
|
Stockholders’
meeting fees |
66,634 |
|
Accounting
services fees |
53,565 |
|
Legal
fees |
2,941 |
|
Compensation
of chief compliance officer |
99 |
|
Compensation
of board members |
29,143 |
|
Deferred
compensation of board members |
33,030 |
|
Other |
55,798 |
|
Total
expenses |
6,314,421 |
|
Net
investment loss |
(2,336,363
) |
Realized
and unrealized gain (loss) — net |
|
|
Net
realized gain (loss) on: |
|
|
Investments
— unaffiliated issuers |
87,448,999 |
|
Investments
— affiliated issuers |
(1,111
) |
|
Foreign
currency translations |
3,213 |
|
Option
contracts purchased |
3,152 |
|
Option
contracts written |
(28,941,302
) |
|
Net
realized gain |
58,512,951 |
|
Net
change in unrealized appreciation (depreciation) on: |
|
|
Investments
— unaffiliated issuers |
99,166,881 |
|
Investments
— affiliated issuers |
(871
) |
|
Foreign
currency translations |
279 |
|
Option
contracts purchased |
(26,568
) |
|
Option
contracts written |
(1,313,381
) |
|
Net
change in unrealized appreciation (depreciation) |
97,826,340 |
|
Net
realized and unrealized gain |
156,339,291 |
|
Net
increase in net assets resulting from operations |
$154,002,928 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
21
Statement
of Changes in Net Assets
|
|
Year
Ended
December
31, 2025 |
Year
Ended
December
31, 2024 |
Operations |
|
|
|
Net
investment loss |
$(2,336,363
) |
$(1,380,189
) |
|
Net
realized gain |
58,512,951 |
84,286,159 |
|
Net
change in unrealized appreciation (depreciation) |
97,826,340 |
48,040,499 |
|
Net
increase in net assets resulting from operations |
154,002,928 |
130,946,469 |
Distributions
to stockholders |
|
|
|
Net
investment income and net realized gains |
(47,106,696
) |
(84,735,804
) |
|
Total
distributions to stockholders |
(47,106,696
) |
(84,735,804
) |
|
Increase
in net assets from capital stock activity |
35,873,920 |
2,266,843 |
|
Total
increase in net assets |
142,770,152 |
48,477,508 |
|
Net
assets at beginning of year |
527,401,112 |
478,923,604 |
|
Net
assets at end of year |
$670,171,264 |
$527,401,112 |
|
|
Year
Ended |
Year
Ended | ||
|
|
December
31, 2025
|
December
31, 2024
| ||
|
|
Shares |
Dollars
($) |
Shares |
Dollars
($) |
|
Capital
stock activity | ||||
|
Common
Stock issued at market price in distributions |
916,657 |
30,840,579 |
75,332 |
2,266,843 |
|
Common
Stock issued through at-the-market offering |
181,502 |
5,033,341 |
— |
— |
|
Total
net increase |
1,098,159 |
35,873,920 |
75,332 |
2,266,843 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
22
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
[THIS
PAGE INTENTIONALLY LEFT BLANK]
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
23
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. A zero balance may reflect
an amount rounding to less than $0.01 or 0.01%.
The Report of
Independent Registered Public Accounting Firm does not cover information for the
years ended December 31, 2020 and
prior.
|
|
Year
ended December 31, | ||
|
2025
|
2024
|
2023
| |
|
Per
share data | |||
|
Net
asset value, beginning of period |
$31.84 |
$29.05 |
$22.63 |
|
Income
from investment operations: | |||
|
Net
investment income (loss) |
(0.13
) |
(0.08
) |
(0.05
) |
|
Net
realized and unrealized gain (loss) |
9.01 |
7.99 |
8.58 |
|
Total
from investment operations |
8.88 |
7.91 |
8.53 |
|
Less
distributions to Stockholders from: | |||
|
Net
investment income |
— |
— |
— |
|
Net
realized gains |
(2.72
) |
(5.12
) |
(2.12
) |
|
Total
distributions to Stockholders |
(2.72
) |
(5.12
) |
(2.12
) |
|
(Dilution)
Anti-dilution in net asset value from share purchases (via dividend
reinvestment program and at-the-market offerings)(a)
|
(0.05
) |
(0.00
) |
0.01 |
|
Anti-dilution
in net asset value from share buy-backs (via stock repurchase
program)(a)
|
— |
— |
— |
|
Net
asset value, end of period |
$37.95 |
$31.84 |
$29.05 |
|
Market
price, end of period |
$36.79 |
$31.95 |
$31.60 |
|
Total
return | |||
|
Based
upon net asset value |
29.39
% |
27.61
% |
38.89
% |
|
Based
upon market price |
25.01
% |
17.72
% |
47.19
% |
|
Ratios
to average net assets | |||
|
Total
gross expenses(b)
|
1.12
% |
1.13
% |
1.13
% |
|
Net
investment income (loss) |
(0.42
%) |
(0.26
%) |
(0.19
%) |
|
Supplemental
data | |||
|
Net
assets, end of period (in thousands) |
$670,171 |
$527,401 |
$478,924 |
|
Portfolio
turnover |
30
% |
40
% |
25
% |
|
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) |
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.
24
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Financial
Highlights (continued)
|
Year
ended December 31, | ||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
|
| ||||||
|
$35.42 |
$27.86 |
$23.43 |
$16.96 |
$20.83 |
$17.78 |
$17.29 |
|
| ||||||
|
(0.08
) |
(0.06
) |
0.11 |
(0.02
) |
(0.01
) |
(0.06
) |
(0.05
) |
|
(9.78
) |
10.76 |
6.17 |
8.34 |
(1.36
) |
5.74 |
2.39 |
|
(9.86
) |
10.70 |
6.28 |
8.32 |
(1.37
) |
5.68 |
2.34 |
|
| ||||||
|
— |
— |
(0.11
) |
— |
— |
— |
— |
|
(2.93
) |
(3.14
) |
(1.74
) |
(1.85
) |
(2.50
) |
(2.63
) |
(1.85
) |
|
(2.93
) |
(3.14
) |
(1.85
) |
(1.85
) |
(2.50
) |
(2.63
) |
(1.85
) |
|
(0.00
) |
— |
— |
— |
— |
— |
— |
|
— |
— |
— |
— |
— |
— |
— |
|
$22.63 |
$35.42 |
$27.86 |
$23.43 |
$16.96 |
$20.83 |
$17.78 |
|
$23.23 |
$37.01 |
$27.24 |
$23.55 |
$16.81 |
$22.25 |
$18.74 |
|
| ||||||
|
(28.74
%) |
39.38
% |
29.17
% |
51.04
% |
(7.77
%) |
32.72
% |
15.29
% |
|
(29.99
%) |
48.96
% |
25.65
% |
53.17
% |
(14.42
%) |
34.51
% |
17.18
% |
|
| ||||||
|
1.13
% |
1.13
% |
1.15
% |
1.15
% |
1.15
% |
1.16
% |
1.17
% |
|
(0.29
%) |
(0.18
%) |
0.50
% |
(0.08
%) |
(0.05
%) |
(0.28
%) |
(0.33
%) |
|
| ||||||
|
$366,036 |
$564,220 |
$443,114 |
$372,063 |
$265,315 |
$320,472 |
$273,226 |
|
9
% |
27
% |
32
% |
43
% |
34
% |
47
% |
61
% |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
25
Notes
to Financial Statements
December
31, 2025
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.
26
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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 FASB
Accounting Standards Update 2023-07, Segment Reporting (Topic 280) -
Improvements to Reportable Segment Disclosures
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
27
Notes
to Financial Statements (continued)
December
31, 2025
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, provides some
protection in the case of clearing member
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 or cleared derivatives
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 (including
the Fund) by account class, potentially resulting in losses to the
Fund.
In connection with
certain 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
foreign exchange forward contracts and contains, among other things, collateral
posting terms and netting
28
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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 may use options that are written or
purchased to enhance returns or to hedge an existing position or future
investment. A Fund may write call and put options on
securities and financial derivative instruments it owns or in which it may
invest. Writing put options tends to increase a Fund’s
exposure to the underlying instrument. Writing call options tends to decrease a
Fund’s exposure to the underlying
instrument. When a Fund writes a call or put, an amount equal to the premium
received is recorded and subsequently marked
to market to reflect the current value of the option written. 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
29
Notes
to Financial Statements (continued)
December
31, 2025
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 December 31, 2025:
|
Asset
derivatives |
| |
|
Risk
exposure
category |
Statement
of
assets and liabilities
location |
Fair
value ($) |
|
Equity
risk |
Investments,
at value — Option contracts purchased |
39,160 |
|
Liability
derivatives |
| |
|
Risk
exposure
category |
Statement
of
assets and liabilities
location |
Fair
value ($) |
|
Equity
risk |
Option
contracts written, at value |
414,315 |
The following table
indicates the effect of derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes)
in the Statement of Operations for the year ended December 31, 2025:
|
Amount
of realized gain (loss) on derivatives recognized in
income | |||
|
Risk
exposure category |
Option
contracts
purchased
($) |
Option
contracts
written
($) |
Total
($) |
|
Equity
risk |
3,152 |
(28,941,302
) |
(28,938,150
) |
|
| |||
|
Change
in unrealized appreciation (depreciation) on derivatives recognized in
income | |||
|
Risk
exposure category |
Option
contracts
purchased
($) |
Option
contracts
written
($) |
Total
($) |
|
Equity
risk |
(26,568
) |
(1,313,381
) |
(1,339,949
) |
The following table
is a summary of the average daily outstanding volume by derivative instrument
for the year ended December
31, 2025:
|
Derivative
instrument |
Average
value
($) |
|
Option
contracts purchased |
2,049 |
|
Option
contracts written |
(2,309,483
) |
30
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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 December 31, 2025:
|
|
Morgan
Stanley | |
|
Assets |
|
|
|
Call
option contracts purchased |
$ |
39,160
|
|
Liabilities |
|
|
|
Call
option contracts written |
$ |
414,315
|
|
Total
financial and derivative net assets |
|
(375,155
) |
|
Total
collateral received (pledged) (a)
|
|
(375,155
) |
|
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. |
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.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
31
Notes
to Financial Statements (continued)
December
31, 2025
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. 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 2025, the Fund’s managed distribution
policy provided stockholders with current income through quarterly distributions
of $0.4625 per share, comprised of $0.2082
in short-term capital gains and $1.6418 in long-term capital gains. In
order to avoid federal excise tax in 2025, the Fund
also paid a special fourth quarter capital gain distribution, beyond its typical
quarterly managed distribution policy,
in the amount of $0.8655 per share, comprised fully of long-term capital gains.
No portion of the Fund’s 2025 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.
32
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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.
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 and is
responsible for 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
effective management services fee rate
for the year ended December 31, 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 and during the period there were no borrowings used for
leverage.
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 December 31,
2025, these differences were primarily due to differing treatment for
deferral/reversal of wash sale losses, tax straddles,
trustees’ deferred compensation, foreign currency transactions, net operating
loss reclassification and distribution
reclassifications. To the extent these differences were permanent,
reclassifications were made among the components of the
Fund’s net assets. Temporary differences do not require
reclassifications.
The
following reclassifications were made:
|
Excess
of distributions
over
net investment
income
($) |
Accumulated
net
realized
gain
($) |
Paid
in
capital
($) |
|
10,353,919 |
(8,046,379
) |
(2,307,540
) |
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
33
Notes
to Financial Statements (continued)
December
31, 2025
Net investment
income (loss) and net realized gains (losses), as disclosed in the Statement of
Operations, and net assets were not affected by
this reclassification.
The tax character of
distributions paid during the years indicated was as follows:
|
Year
Ended December 31, 2025 |
Year
Ended December 31, 2024 | ||||
|
Ordinary
income
($) |
Long-term
capital
gains ($) |
Total
($) |
Ordinary
income
($) |
Long-term
capital
gains ($) |
Total
($) |
|
3,539,323 |
43,567,373 |
47,106,696 |
5,171,021 |
79,564,783 |
84,735,804 |
Short-term capital
gain distributions, if any, are considered ordinary income distributions for tax
purposes.
At December 31,
2025, the components of distributable earnings on a tax basis were as
follows:
|
Undistributed
ordinary
income ($) |
Undistributed
long-term
capital
gains ($) |
Capital
loss
carryforwards
($) |
Net
unrealized
appreciation
($) |
|
— |
27,777,542 |
— |
372,614,624 |
At December 31,
2025, the cost of all investments for federal income tax purposes along with the
aggregate gross unrealized
appreciation and depreciation based on that cost was:
|
Federal
tax
cost ($) |
Gross
unrealized
appreciation
($) |
Gross
unrealized
(depreciation)
($) |
Net
unrealized
appreciation
($) |
|
297,862,737 |
388,188,791 |
(15,574,167
) |
372,614,624 |
Tax cost of
investments and unrealized appreciation/(depreciation) may also include timing
differences that do not constitute
adjustments to tax basis.
Management of the
Fund has concluded that there are no significant uncertain tax positions in the
Fund that would require recognition in the
financial statements. However, management’s conclusion may be subject to review
and adjustment at a later date based on
factors including, but not limited to, new tax laws, regulations, and
administrative interpretations (including relevant
court decisions). Generally, the Fund’s federal tax returns for the prior three
fiscal years remain subject to examination by the
Internal Revenue Service.
Note
5. Portfolio
information
The cost of
purchases and proceeds from sales of securities, excluding short-term
investments and derivatives, if any, aggregated to
$167,395,143 and $258,132,627, respectively, for the year ended December 31,
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 916,657 shares were issued to the Plan participants
during the year ended December 31, 2025,
for proceeds of $30,840,579, a weighted average discount of (3.24)% 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), EQ Shareowner Services, Attn: OnBase, P.O. Box 500,
Newark, NJ 07101. Participation
34
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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. (the Distributor),
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
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 year ended December 31, 2025
for proceeds of $5,033,341, a weighted average premium of 4.34% from the net
asset value of those shares.
In September 2025,
the Fund’s Board approved the Fund’s 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; however,
in order to facilitate the required distributions, no repurchases will be made
during the period between the declaration date
and the ex-dividend date for Fund distributions. For the year ended December 31,
2025, no shares were purchased in the
open market.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
35
Notes
to Financial Statements (continued)
December
31, 2025
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.
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 year ended December 31, 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.
36
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Notes
to Financial Statements (continued)
December
31, 2025
Note
10. Risks and
uncertainties
An investment in the
Fund involves risks, including market risk and concentration risk, among others.
The value of the Fund’s holdings and the
Fund’s net asset value may go down. 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.
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 events – or
the potential for such events – could have a significant negative impact on
global economic and market conditions.
To the extent that
the Fund concentrates its investment in particular issuers, countries,
geographic regions, industries or sectors, the Fund
may be subject to greater risks of adverse developments in such areas of focus
than a fund that invests in a wider variety of
issuers, countries, geographic regions, industries, sectors or
investments.
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
Report
of Independent Registered Public Accounting
Firm
To
the Board of Directors and Stockholders of Columbia Seligman Premium Technology
Growth Fund, Inc.
Opinion
on the Financial Statements
We have audited the
accompanying statement of assets and liabilities, including the portfolio of
investments, of Columbia Seligman Premium
Technology Growth Fund, Inc. (the "Fund") as of December 31, 2025, the related
statement of operations for the year ended
December 31, 2025, the statement of changes in net assets for each of the two
years in the period ended December 31, 2025,
including the related notes, and the financial highlights for each of the five
years in the period ended December 31, 2025
(collectively referred to as the "financial statements"). In our opinion, the
financial statements present fairly, in all
material respects, the financial position of the Fund as of December 31, 2025,
the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period ended December
31, 2025 and the financial highlights
for each of the five years in the period ended December 31, 2025 in conformity
with accounting principles generally
accepted in the United States of America.
Basis
for Opinion
These financial
statements are the responsibility of the Fund’s management. Our responsibility
is to express an opinion on the Fund’s financial
statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to
the Fund in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the
PCAOB.
We conducted our
audits of these financial statements in accordance with the standards of the
PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material
misstatement, whether due to error or fraud.
Our audits included
performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures
included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our
audits also included evaluating the
accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the
financial statements. Our procedures included confirmation of securities owned
as of December 31, 2025 by
correspondence with the custodian, transfer agent and brokers; when replies were
not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
/s/PricewaterhouseCoopers
LLP
Minneapolis,
Minnesota
February 23,
2026
We have served as
the auditor of one or more investment companies in the Columbia Funds Complex
since 1977.
38
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Federal
Income Tax Information
(Unaudited)
The Fund hereby
designates the following tax attributes for the fiscal year ended December 31,
2025.
|
Qualified
dividend
income |
Dividends
received
deduction |
Section
199A
dividends |
Capital
gain
dividend |
|
40.23% |
37.07% |
1.44% |
$61,973,538 |
Qualified dividend
income. For taxable, non-corporate stockholders, the percentage of ordinary
income distributed during the fiscal year that
represents qualified dividend income subject to reduced tax rates.
Dividends received
deduction. The percentage of ordinary income distributed during the fiscal year
that qualifies for the corporate dividends
received deduction.
Section 199A
dividends. For taxable, non-corporate shareholders, the percentage of ordinary
income distributed during the fiscal year that
represents Section 199A dividends potentially eligible for a 20%
deduction.
Capital gain
dividend. The Fund designates as a capital gain dividend the amount reflected
above, or if subsequently determined to be
different, the net capital gain of such fiscal period.
Directors
and Officers
(Unaudited)
The Board oversees
the Fund’s operations and elects officers who are responsible for day-to-day
business decisions based on policies set by
the Board. The following table provides basic biographical information about the
Fund’s Directors as of the printing of this
report, including their principal occupations during the past five years,
although specific titles for individuals may have varied over
the period. Certain Directors may have served as a Trustee to other Funds in the
Columbia Funds Complex prior to the
date set forth in the Position Held with the Fund and Length of Service column.
Under the Fund’s charter and Amended
and Restated Bylaws, Directors may serve a term ending at the third annual
meeting of stockholders following their
election, whereupon, if nominated for re-election, they may be re-elected to
serve another term (the Fund’s Board has three
classes, with one class expiring each year at the Fund’s regular stockholder’s
meeting), or, under current Board policy, for
Directors not affiliated with the Investment Manager, generally through the end
of the calendar year in which they reach the
mandatory retirement age established by the Board.
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
39
Directors
and Officers (continued)
(Unaudited)
Independent
directors
|
Name,
Address,
Year
of Birth |
Position
Held
With
the Fund and
Length
of Service |
Principal
Occupation(s)
During
the Past Five Years
and
Other Relevant
Professional
Experience |
Number
of
Funds
in the
Columbia
Funds
Complex*
Overseen |
Other
Directorships
Held
by Director
During
the Past
Five
Years and other
Relevant
Board
Experience |
|
George
S. Batejan
c/o
Columbia Management
Investment
Advisers LLC
290
Congress Street
Boston,
MA 02210
1954 |
Director
since
January
2018 |
Executive
Vice President, Global Head of
Technology
and Operations, Janus Capital Group,
Inc.,
2010-2016 |
180 |
Former
Chairman of the
Board,
NICSA (National
Investment
Company
Services
Association)
(Executive
Committee,
Nominating
Committee and
Governance
Committee),
2014-
2016; former Director,
Intech
Investment
Management,
2011-2016;
former
Board Member, Metro
Denver
Chamber of
Commerce,
2015-2016;
former
Advisory Board
Member,
University of
Colorado
Business School,
2015-2018;
former Board
Member,
Chase Bank
International,
1993-1994 |
40
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Directors
and Officers (continued)
(Unaudited)
Independent
directors (continued)
|
Name,
Address,
Year
of Birth |
Position
Held
With
the Fund and
Length
of Service |
Principal
Occupation(s)
During
the Past Five Years
and
Other Relevant
Professional
Experience |
Number
of
Funds
in the
Columbia
Funds
Complex*
Overseen |
Other
Directorships
Held
by Director
During
the Past
Five
Years and other
Relevant
Board
Experience |
|
Kathleen
Blatz
c/o
Columbia Management
Investment
Advisers LLC
290
Congress Street
Boston,
MA 02210
1954 |
Director
since
October
2009 |
Attorney,
specializing in arbitration and mediation,
since
2006; Trustee of Gerald Rauenhorst 1982
Trusts,
2020-2024; Interim President and Chief
Executive
Officer, Blue Cross and Blue Shield of
Minnesota
(health care insurance), February-July
2018,
April-October 2021; Chief Justice, Minnesota
Supreme
Court, 1998-2006; Associate Justice,
Minnesota
Supreme Court, 1996-1998; Fourth
Judicial
District Court Judge, Hennepin County,
1994-1996;
Attorney in private practice and public
service,
1984-1993; State Representative,
Minnesota
House of Representatives, 1979-1993,
which
included service on the Tax and Financial
Institutions
and Insurance Committees; Member
and
Interim Chair, Minnesota Sports Facilities
Authority,
January-July 2017 |
180 |
Former
Trustee, Blue Cross
and
Blue Shield of
Minnesota,
2009-2021 (Chair
of
the Business Development
Committee,
2014-2017; Chair
of
the Governance
Committee,
2017-2019);
former
Member and Chair of
the
Board, Minnesota Sports
Facilities
Authority, January
2017-July
2017; former
Director,
Robina Foundation,
2009-2020
(Chair,
2014-2020);
Director, Richard
M.
Schulze Family
Foundation,
since 2021 |
|
Pamela
G. Carlton
c/o
Columbia Management
Investment
Advisers LLC
290
Congress Street
Boston,
MA 02210
1954 |
Director
since
October
2009; Chair
of
the Board since
January
2023 |
President,
Springboard-Partners in Cross Cultural
Leadership
(consulting company), since 2003;
Managing
Director of US Equity Research, JP
Morgan
Chase, 1999-2003; Director of US Equity
Research,
Chase Asset Management, 1996-1999;
Co-Director
Latin America Research, 1993-1996,
COO
Global Research, 1992-1996, Co-Director of
US
Research, 1991-1992, Investment Banker,
1982-1991,
Morgan Stanley; Attorney, Cleary
Gottlieb
Steen & Hamilton LLP, 1980-1982 |
180 |
Trustee,
New York
Presbyterian
Hospital Board,
since
1996; Director, DR Bank
(Audit
Committee, since
2017
and Audit Committee
Chair,
since November 2023);
Director,
Evercore Inc. (Audit
Committee,
Nominating and
Governance
Committee)
(financial
services
company),
since 2019;
Director,
Apollo Commercial
Real
Estate Finance, Inc.
(Chair,
Nominating and
Governance
Committee),
since
2021; the Governing
Council
of the Independent
Directors
Council (IDC), since
2021;
Director, Apollo
Asset-Backed
Finance LC
Board,
since 2024; Member,
Independent
Directors
Institute
(IDC) since 2021
and
Member, Investment
Company
Institute (ICI)
Board
of Governance since
2024 |
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
41
Directors
and Officers (continued)
(Unaudited)
Independent
directors (continued)
|
Name,
Address,
Year
of Birth |
Position
Held
With
the Fund and
Length
of Service |
Principal
Occupation(s)
During
the Past Five Years
and
Other Relevant
Professional
Experience |
Number
of
Funds
in the
Columbia
Funds
Complex*
Overseen |
Other
Directorships
Held
by Director
During
the Past
Five
Years and other
Relevant
Board
Experience |
|
Janet
Langford Carrig
c/o
Columbia Management
Investment
Advisers, LLC
290
Congress Street
Boston,
MA 02210
1957 |
Director
since
January
2023 |
Senior
Vice President, General Counsel and
Corporate
Secretary, ConocoPhillips (independent
energy
company), September 2007-October 2018 |
180 |
Director,
Waterbridge
Infrastructure
LLC (Audit
Committee)
(water
infrastructure
company),
since
December 2025;
Former
Director, EQT
Corporation
(natural gas
producer),
July 2019-April
2025;
former Director,
Whiting
Petroleum
Corporation
(independent oil
and
gas company),
2020-2022
|
|
Brian
J. Gallagher
c/o
Columbia Management
Investment
Advisers LLC
290
Congress Street
Boston,
MA 02210
1954 |
Director
since
January
2020 |
Retired;
Partner with Deloitte & Touche LLP and its
predecessors,
1977-2016 |
180 |
Trustee,
Catholic Schools
Foundation,
2004-2024 |
|
Douglas
A. Hacker
c/o
Columbia Management
Investment
Advisers, LLC
290
Congress Street
Boston,
MA 02210
1955
|
Director
since
January
2022
|
Independent
business executive since May 2006;
Executive
Vice President – Strategy of United
Airlines,
December 2002-May 2006; President of
UAL
Loyalty Services (airline marketing company),
September
2001-December 2002; Executive Vice
President
and Chief Financial Officer of United
Airlines,
July 1999-September 2001
|
180 |
Former
Director,
SpartanNash
Company (food
distributor),
November
2013-September
2025
(Former
Chair of the Board,
May
2021-September 2025);
Director,
Aircastle Limited
(aircraft
leasing), since
August
2006 (Chair of Audit
Committee);
former Director,
Nash
Finch Company (food
distributor),
2005-2013;
former
Director, SeaCube
Container
Leasing Ltd.
(container
leasing),
2010-2013;
and former
Director,
Travelport
Worldwide
Limited (travel
information
technology),
2014-2019
|
|
Nancy
T. Lukitsh
c/o
Columbia Management
Investment
Advisers, LLC,
290
Congress Street
Boston,
MA 02210
1956 |
Director
since
January
2026 |
Senior
Vice President, Partner and Director of
Marketing,
Wellington Management Company, LLP
(investment
adviser), 1997-2010; Chair, Wellington
Management
Portfolios (commingled non-U.S.
investment
pools), 2007 -2010; Director, Wellington
Trust
Company, NA and other Wellington affiliates,
1997-2010
|
180 |
None |
42
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Directors
and Officers (continued)
(Unaudited)
Independent
directors (continued)
|
Name,
Address,
Year
of Birth |
Position
Held
With
the Fund and
Length
of Service |
Principal
Occupation(s)
During
the Past Five Years
and
Other Relevant
Professional
Experience |
Number
of
Funds
in the
Columbia
Funds
Complex*
Overseen |
Other
Directorships
Held
by Director
During
the Past
Five
Years and other
Relevant
Board
Experience |
|
David
M. Moffett
c/o
Columbia Management
Investment
Advisers, LLC
290
Congress Street
Boston,
MA 02210
1952 |
Director
since
January
2024 |
Retired;
former Chief Executive Officer of Freddie
Mac
and Chief Financial Officer of U.S. Bank |
180 |
Director,
CSX Corporation
(transportation
suppliers);
Director,
PayPal
Holdings
Inc. (payment and
data
processing services);
former
Director, eBay Inc.
(online
trading community),
2007-2015;
and former
Director,
CIT Bank, CIT
Group
Inc. (commercial and
consumer
finance),
2010-2016;
former Senior
Adviser
to The Carlyle Group
(financial
services), March
2008-September
2008;
former
Governance
Consultant
to Bridgewater
Associates
(investment
company),
January
2013-December
2015 |
|
Catherine
James Paglia
c/o
Columbia Management
Investment
Advisers LLC
290
Congress Street
Boston,
MA 02210
1952 |
Director
since
October
2009 |
Director,
Enterprise Asset Management, Inc.
(private
real estate and asset management
company),
since September 1998; Managing
Director
and Partner, Interlaken Capital, Inc.,
1989-1997;
Vice President, 1982-1985, Principal,
1985-1987,
Managing Director, 1987-1989, Morgan
Stanley;
Vice President, Investment Banking,
1980-1982,
Associate, Investment Banking,
1976-1980,
Dean Witter Reynolds, Inc. |
180 |
Director,
Valmont Industries,
Inc.
(irrigation systems
manufacturer),
since 2012;
Trustee,
Carleton College (on
the
Investment Committee),
since
1987; Trustee,
Carnegie
Endowment for
International
Peace (on the
Investment
Committee),
since
2009 |
|
Sandra
L. Yeager
c/o
Columbia Management
Investment
Advisers, LLC
290
Congress Street
Boston,
MA 02210
1964
|
Director
since June
2020
|
Retired;
President and founder, Hanoverian Capital,
LLC
(SEC registered investment advisor firm),
2008-2016;
Managing Director, DuPont Capital,
2006-2008;
Managing Director, Morgan Stanley
Investment
Management, 2004-2006; Senior Vice
President,
Alliance Bernstein, 1990-2004
|
180 |
Former
Director, NAPE
(National
Alliance for
Partnerships
in Equity)
Education
Foundation,
October
2016-October 2020;
Advisory
Board, Jennersville
YMCA,
June 2022-June 2023 |
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
43
Directors
and Officers (continued)
(Unaudited)
Independent
directors (continued)
Interested
director affiliated with Investment Manager**
|
Name,
Address,
Year
of Birth |
Position
Held
With
the Fund and
Length
of Service |
Principal
Occupation(s)
During
the Past Five Years
and
Other Relevant
Professional
Experience |
Number
of
Funds
in the
Columbia
Funds
Complex*
Overseen |
Other
Directorships Held
by
Trustee During the
Past
Five Years and
Other
Relevant Board
Experience |
|
Ryan
C. Larrenaga
c/o
Columbia Management
Investment
Advisers, LLC,
290
Congress Street
Boston,
MA 02210
1970 |
Director
since
September
2025
Senior Vice President since
2017, Chief
Legal
Officer since
2017
and Secretary
since
2015 |
Vice
President and Chief Counsel – Legal,
Ameriprise
Financial, Inc., since August 2018; Vice
President
and General Counsel, Ameriprise
Certificate
Company (registered investment
company),
since April 2025; officer of the
Columbia
Funds or affiliated registered and
unregistered
funds since 2005 |
180 |
None |
|
* |
The
term “Columbia Funds Complex” as used herein includes Columbia Credit
Income Opportunities Fund, Columbia Seligman Premium Technology Growth
Fund, Inc., Tri-Continental
Corporation and each series of Columbia Acorn Trust, Columbia Funds Series
Trust (CFST), Columbia Funds Series Trust I (CFST I), Columbia Funds
Series
Trust II (CFST II), Columbia ETF Trust I (CET I), Columbia ETF Trust II
(CET II), Columbia Funds Variable Insurance Trust (CFVIT), Columbia Funds
Variable Series
Trust (CFVST) and Columbia Funds Variable Series Trust II (CFVST II).
Messrs. Batejan, Gallagher, Hacker, Larrenaga and Moffett and Mses. Blatz,
Carlton, Carrig,
Lukitsh, Paglia and Yeager serve as directors of Columbia Seligman Premium
Technology Growth Fund, Inc. and Tri-Continental
Corporation. |
|
** |
Interested
person (as defined under the 1940 Act) by reason of being an officer,
director, security holder and/or employee of the Investment Manager or
Ameriprise Financial. |
The Board has
elected officers who are responsible for day-to-day business decisions based on
policies it has established. The officers serve
at the pleasure of the Board. The following table provides basic information
about the Officers of the Fund as of the date of
this report, including principal occupations during the past five years,
although their specific titles may have varied over the
period. In addition to Mr. Larrenaga, who is the Senior Vice President,
Chief Legal Officer and Secretary, the Fund’s other
officers are:
Fund
officers
|
Name,
address
and
year
of birth |
Position
and year
first
appointed to
position
for any Fund
in
the Columbia
Funds
Complex or a
predecessor
thereof |
Principal
occupation(s) during past five years |
|
Michael
G. Clarke
290
Congress Street
Boston,
MA 02210
1969 |
Chief
Financial Officer and
Principal
Financial Officer
(2009);
Senior Vice
President
(2019); and
Treasurer
and Chief
Accounting
Officer
(Principal
Accounting
Officer)
(2024)
|
Senior
Vice President and North America Head of Global Operations & Investor
Services and
Member
of Board of Governors, Columbia Management Investment Advisers, LLC, since
June 2023
and
January 2024, respectively (previously Senior Vice President and Head of
Global Operations &
Investor
Services, March 2022 - June 2023, Vice President, Head of North America
Operations, and
Co-Head
of Global Operations, June 2019 - February 2022 and Vice President –
Accounting and
Tax,
May 2010 - May 2019); senior officer of Columbia Funds and affiliated
funds, since 2002.
Director,
Ameriprise Trust Company, since June 2023; Director, Columbia Management
Investment
Services
Corp., since September 2024; Member of Board of Governors, Columbia Wanger
Asset
Management,
LLC, since October 2024. |
|
Charles
H. Chiesa
290
Congress Street
Boston,
MA 02210
1978 |
Treasurer
and Chief
Accounting
Officer
(Principal
Accounting
Officer)
(2024) and Principal
Financial
Officer (2024)
|
Vice
President, Head of Accounting and Tax of Global Operations & Investor
Services, Columbia
Management
Investment Advisers, LLC, since May 2024; Senior Manager, KPMG, October
2022 –
May
2024; Director - Business Analyst, Columbia Management Investment
Advisers, LLC,
December
2013 - October 2022. |
44
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
Directors
and Officers (continued)
(Unaudited)
Fund
officers (continued)
|
Name,
address
and
year
of birth |
Position
and year
first
appointed to
position
for any Fund
in
the Columbia
Funds
Complex or a
predecessor
thereof |
Principal
occupation(s) during past five years |
|
Marybeth
Pilat
290
Congress Street
Boston,
MA 02210
1968
|
Assistant
Treasurer (2021)
|
Vice
President – Product Pricing and Administration, Columbia Management
Investment Advisers,
LLC,
since May 2017. |
|
William
F. Truscott
290
Congress Street
Boston,
MA 02210
1960
|
Senior
Vice President (2001)
|
Formerly,
Trustee/Director of Columbia Funds Complex or legacy funds, November 2001
- January
1,
2021; Chief Executive Officer, Global Asset Management, Ameriprise
Financial, Inc., since
September
2012; Chairman of the Board and President, Columbia Management Investment
Advisers,
LLC, since July 2004 and February 2012, respectively; President, Chief
Executive Officer
and
Chairman of the Board, Columbia Management Investment Distributors, Inc.,
since January
2024,
February 2012 and November 2008, respectively; Chairman of the Board and
Director, TAM
UK
International Holdings Limited, since July 2021; President and Chairman of
the Board, Columbia
Wanger
Asset Management, LLC, since October 2024; formerly Chairman of the Board
and Director,
Threadneedle
Asset Management Holdings, Sàrl, March 2013 – December 2022 and December
2008
– December 2022, respectively; senior executive of various entities
affiliated with Columbia
Threadneedle
Investments. |
|
Christopher
O. Petersen
901
3rd Ave S
Minneapolis,
MN 55402
1970
|
Senior
Vice President and
Assistant
Secretary (2021) |
Formerly,
Trustee/Director of funds within the Columbia Funds Complex, July 1, 2020
- November
22,
2021; Senior Vice President and Assistant General Counsel, Ameriprise
Financial, Inc., since
September
2021 (previously Vice President and Lead Chief Counsel, January 2015 -
September
2021);
formerly, President and Principal Executive Officer of the Columbia Funds,
2015 - 2021;
officer
of Columbia Funds and affiliated funds, since
2007. |
|
Thomas
P. McGuire
290
Congress Street
Boston,
MA 02210
1972 |
Senior
Vice President and
Chief
Compliance Officer
(2012) |
Vice
President – Asset Management Compliance, Ameriprise Financial, Inc., since
May 2010; Chief
Compliance
Officer, Columbia Funds, since April 2012; formerly, Chief Compliance
Officer,
Ameriprise
Certificate Company, September 2010 – September
2020. |
|
Michael
E. DeFao
290
Congress Street
Boston,
MA 02210
1968 |
Vice
President (2011) and
Assistant
Secretary (2010) |
Vice
President and Lead Chief Counsel, Ameriprise Financial, Inc., since May
2010; Vice President,
Chief
Legal Officer and Assistant Secretary, Columbia Management Investment
Advisers, LLC and
Columbia
Management Investment Distributors, LLC, since October 2021 (previously
Vice
President
and Assistant Secretary, May 2010 – September
2021). |
|
Veronica
A. Seaman
290
Congress Street
Boston,
MA 02210
1962 |
Vice
President (2025) |
Vice
President, Global Operations and Investor Services, since 2010; Director
(since 2018), and
President
(since 2024), Columbia Management Investment Services
Corp. |
|
Victoria
K. Bender
c/o
Columbia Fund Secretary
290
Congress Street
Boston,
MA 02210
1980 |
Vice
President (2026) |
Vice
President and Chief Administrative Officer, Columbia Management Investment
Advisers, LLC
since
February 2020. |
|
Joseph
D’Alessandro
485
Lexington Avenue
New
York, NY 10017
1971 |
Vice
President (2026) and
Assistant
Secretary (2009) |
Vice
President and Group Counsel, Ameriprise Financial, Inc. since 2009;
officer of the Columbia
Funds
since 2009. |
RESULTS
OF MEETING OF STOCKHOLDERS
(Unaudited)
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
45
RESULTS
OF MEETING OF STOCKHOLDERS (continued)
(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:
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 |
*Mr. Beckman
resigned from the Fund’s Board and retired from the Fund’s investment manager
effective September 5, 2025.
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 |
46
Columbia Seligman
Premium Technology Growth Fund, Inc. | 2025
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 EQ Shareowner Services, Attn: OnBase, P.O. Box 500, Newark, NJ 07101. 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.
© 2026
Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
ANN221_12_T01_(02/26)