Tri-Continental
Corporation
Annual
Report
December 31,
2025
|
Not
FDIC or NCUA Insured |
No
Financial Institution Guarantee |
May
Lose Value |
Table
of Contents
|
3 | |
5 | |
|
6 | |
16 | |
|
18 | |
28 | |
|
29 | |
30 | |
|
31 | |
34 | |
|
46 | |
47 | |
|
47 | |
53 |
If you elect to
receive the stockholder report for Tri-Continental Corporation (the Fund)
in paper, mailed to you, the Fund mails one
stockholder report to each stockholder address, unless such stockholder elects
to receive stockholder reports from the Fund
electronically via e-mail or by having a paper notice mailed to you (Postcard
Notice) that your Fund’s stockholder report
is available at the Columbia funds’ website (columbiathreadneedleus.com/investor/). If you would like
more
than one report in paper to be mailed to you, or would like to elect to receive
reports via e-mail or access them through Postcard Notice,
please call stockholder services at 800.345.6611 and additional reports will be
sent to you.
Proxy voting
policies and procedures
The policy of the
Board of Directors is to vote the proxies of the companies in which the Fund
holds investments consistent with the procedures
as stated in the SAI. You may obtain a copy of the SAI without charge by calling
800.345.6611, option 3; contacting your
financial intermediary; visiting columbiathreadneedleus.com/investor/; or searching the
website of the SEC at sec.gov. Information
regarding how the Fund voted proxies relating to portfolio securities is filed
with the SEC by August 31st for the most
recent 12-month period ending June 30th of that year, and is available without
charge by visiting columbiathreadneedleus.com/investor/, or searching the
website of the SEC at sec.gov.
Quarterly
schedule of investments
The Fund files a
complete schedule of portfolio holdings with the SEC for the first and third
quarters of each fiscal year on Form N-PORT. The
Fund’s Form N-PORT filings are available on the SEC’s website at sec.gov. The Fund’s
complete schedule of portfolio
holdings, as filed on Form N-PORT, can also be obtained without charge, upon
request, by calling 800.345.6611, option
3.
Additional
Fund information
For more information
about the Fund, please visit columbiathreadneedleus.com/investor/ or call
800.345.6611, option 3. Customer Service
Representatives are available to answer your questions Monday through Friday
from 8 a.m. to 7 p.m. Eastern
time.
Fund
investment manager
Columbia Management
Investment Advisers, LLC (the Investment Manager)
290 Congress
Street
Boston, MA
02210
Fund
distributor
Columbia Management
Investment Distributors, Inc.
290 Congress
Street
Boston, MA
02210
Fund
transfer agent
Columbia Management
Investment Services Corp.
P.O. Box
219104
Kansas City, MO
64121-9104
Tri-Continental
Corporation | 2025
Fund
at a Glance
(Unaudited)
Portfolio
management
David
King, CFA
Co-Portfolio
Manager
Managed Fund
since 2011
Yan
Jin
Co-Portfolio
Manager
Managed Fund
since 2012
Raghavendran
Sivaraman, Ph.D., CFA
Co-Portfolio
Manager
Managed Fund
since 2020
Grace
Lee, CAIA
Co-Portfolio
Manager
Managed Fund
since 2020
Oleg
Nusinzon, CFA
Co-Portfolio
Manager
Managed Fund
since 2021
|
Average
Annual Total Returns (%) | |||
|
|
1
year |
5
years |
10
years |
|
Market
Price |
16.14 |
12.59 |
13.63 |
|
Net
Asset Value |
15.45 |
12.27 |
13.04 |
|
S&P
500 Index
|
17.88 |
14.42 |
14.82 |
|
Blended
Benchmark - 50% S&P 500®
Index, 16.68% Russell 1000®
Value
Index, 16.66% Bloomberg U.S. Corporate Investment Grade &
High
Yield Index, 16.66% Bloomberg U.S. Convertible Composite
Index
|
15.93 |
10.03 |
11.81 |
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 ($) |
32.66 |
34.00 |
31.66 |
30.67 |
|
Net
Asset Value ($) |
36.35 |
37.76 |
35.62 |
34.41 |
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.
Tri-Continental
Corporation | 2025
3
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
Tri-Continental Corporation 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 | |
|
NVIDIA
Corp. |
4.7
% |
|
Alphabet,
Inc., Class A |
3.5
% |
|
Apple,
Inc. |
3.2
% |
|
Microsoft
Corp. |
2.4
% |
|
Meta
Platforms, Inc., Class A |
1.9
% |
|
Amazon.com,
Inc. |
1.6
% |
|
Bristol-Myers
Squibb Co. |
1.5
% |
|
Chevron
Corp. |
1.5
% |
|
Visa,
Inc., Class A |
1.3
% |
|
Cisco
Systems, Inc. |
1.0
% |
|
Asset
Categories | |
|
Common
Stocks |
67.8
% |
|
Corporate
Bonds & Notes |
18.7
% |
|
Convertible
Bonds |
6.6
% |
|
Convertible
Preferred Stocks |
5.3
% |
|
Other |
1.1
% |
|
Equity
Sector Allocation | |
|
Information
Technology |
20.1
% |
|
Financials |
11.4
% |
|
Health
Care |
8.1
% |
|
Communication
Services |
6.6
% |
|
Industrials |
6.5
% |
|
Consumer
Discretionary |
6.2
% |
|
Consumer
Staples |
3.8
% |
|
Utilities |
3.3
% |
|
Energy |
2.9
% |
|
Materials |
2.1
% |
|
Other |
2.1
% |
4
Tri-Continental
Corporation | 2025
Manager
Discussion of Fund Performance
(Unaudited)
Top
Performance Contributors
Stock
selection | In the quantitative
segment of the Fund, selections in the consumer discretionary, communications
services and energy
sectors were the most additive over the year. In the Fund’s flexible capital
segment, selections in the health care and real
estate sectors boosted the Fund’s relative performance most during the annual
period.
Allocations
| The
strategy of the quantitative segment of the portfolio strives to maintain a
sector-neutral approach, albeit allocation here
modestly contributed. In the flexible capital segment of the portfolio,
underweight positions in the consumer discretionary sector
contributed to Fund performance.
Individual
holdings | In the quantitative
segment, overweight positions in Tapestry, a luxury accessories and lifestyle
brand company; Citigroup,
a bank holding company, which engages in the provision of financial products and
services; and Ralph Lauren, a company in
the design, marketing, and distribution of luxury lifestyle products, including
apparel, footwear and accessories, home,
fragrances, and hospitality categories, all contributed to performance. In the
flexible capital segment, positions in AST
SpaceMobile, a space broadband cellular network company; Corning, an electronic
components company; and CVS, a drugstore
chain company, were among the top contributors to relative
performance.
Top
Performance Detractors
Stock
selection | Selections in the
information technology, industrials and utilities sectors were the main
detractors in the Fund’s
quantitative segment of the portfolio. In the flexible capital segment of
the portfolio, selections in the financials and information
technology sectors weighed on the Fund’s relative
performance.
Allocations
| In
the flexible capital segment of the portfolio, underweight positions in the
information technology sector detracted from
relative performance.
Individual
holdings | Overweight
positions in Fiserv, a company that engages in the provision of financial
services technology;
Salesforce, which engages in the design and development of cloud-based
enterprise software for customer relationship
management; and Broadcom, a global technology company, which designs, develops,
and supplies semiconductors and
infrastructure software solutions, all were the main drags on relative returns
in the quantitative segment of the
portfolio. Broadcom was also a top detractor for the flexible capital segment of
the portfolio, as was Newell Brands, a global
consumer goods company, and HP Inc., an information technology
company.
Tri-Continental
Corporation | 2025
5
Fund
Investment Objective, Strategies, Policies and
Principal Risks
(Unaudited)
Fund
Investment Objective
The Fund seeks to
produce future growth of both capital and income while providing reasonable
current income. The Fund’s investment objective
is not a fundamental policy and may be changed by the Fund Board without
stockholder approval.
Fund
Investment Strategies and Policies
The Fund invests
primarily for the longer term and has no charter restrictions with respect to
its investments. With respect to the Fund’s
investments, assets may be held in cash or invested in all types of securities,
that is, in common stocks, bonds, convertible bonds
(including high yield instruments), debentures, notes, preferred and convertible
preferred stocks, rights, and other securities
or instruments, in whatever amounts or proportions the Investment Manager
believes best suited to current and
anticipated economic and market conditions.
The Fund may invest
in debt/fixed income instruments and convertible securities that, at the time of
purchase, are rated below investment
grade or are unrated but determined to be of comparable quality (commonly
referred to as “high yield” investments or
“junk” bonds). The Fund may invest in debt instruments of any maturity and does
not seek to maintain a particular
dollar-weighted average maturity. A bond is issued with a specific maturity
date, which is the date when the issuer must pay back the
bond’s principal (face value). Bond maturities range from less than 1 year to
more than 30 years. Typically, the
longer a bond’s maturity, the more price risk the Fund and the Fund’s investors
face as interest rates rise, but the Fund could
receive a higher yield in return for that longer maturity and higher interest
rate risk.
The Fund may invest
up to 25% of its net assets in foreign investments, including emerging markets.
The Fund also employs leverage through its
outstanding shares of preferred stock.
The Fund may invest
in privately placed and other securities or instruments that are purchased and
sold pursuant to Rule 144A or other
exemptions under the Securities Act of 1933, as amended, subject to certain
regulatory restrictions.
The Fund may invest
in derivatives, such as futures contracts (including equity futures and index
futures), to equitize cash.
As of December 31,
2025, the Fund had invested 68.6% of its net assets in equity securities, 19.0%
of its net assets in debt/fixed income
instruments and 11.9% of its net assets in convertible
securities.
The Fund’s current
investment policies, in respect to which it has freedom of action,
are:
• it keeps
investments in individual issuers within the limits permitted for diversified
companies under the Investment Company Act of 1940,
as amended (the 1940 Act) (i.e., 75% of its total assets must be
represented by cash items, government
securities, securities of other investment companies, and securities of other
issuers which, at the time of investment, do not
exceed 5% of the Fund’s total assets at market value in the securities of any
issuer and do not exceed 10% of the voting
securities of any issuer);
• it does not make
investments with a view to exercising control or
management;
• it ordinarily does
not invest in other investment companies, but it may purchase up to 3% of the
voting securities of such investment
companies, provided purchases of securities of a single investment company do
not exceed in value 5% of the total assets of the
Fund and all investments in investment company securities do not exceed 10% of
total assets; and
• it has no fixed
policy with respect to portfolio turnover and purchases and sales in the light
of economic, market and investment
considerations. The portfolio turnover rates for the last ten fiscal years are
shown under Financial
Highlights.
The foregoing
investment objective and policies may be changed by the Fund’s Board without
stockholder approval, unless such a change would
change the Fund’s status from a “diversified” to a “non-diversified” company
under the 1940 Act. For purposes of applying
the limitation set forth in its issuer diversification policy, under certain
circumstances, the Fund may treat an investment,
if any, in a municipal bond refunded with escrowed U.S. Government securities as
an investment in U.S. Government
securities.
6
Tri-Continental
Corporation | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
The Fund may not
invest 25% or more of its total assets in securities of companies in any one
industry. The Fund may, however, invest a
substantial percentage of its assets in certain industries or economic sectors
believed to offer good investment
opportunities, including the information technology sector. If an industry or
economic sector in which the Fund is invested falls out
of favor, the Fund’s performance may be negatively affected. The Fund may not
acquire any illiquid investment if,
immediately after the acquisition, the Fund would have invested more than 15% of
its net assets in illiquid investments that are
assets.
The Fund’s stated
fundamental policies, which may not be changed without a vote of stockholders,
are listed below. Within the limits of these
fundamental policies, the Investment Manager has reserved freedom of action. The
Fund:
• may issue senior
securities such as bonds, notes or other evidences of indebtedness if
immediately after issuance the net assets of the Fund
provide 300% coverage of the aggregate principal amount of all bonds, notes or
other evidences of indebtedness and
that amount does not exceed 150% of the capital and surplus of the
Fund;
• may issue senior
equity securities on a parity with, but not having preference or priority over,
the preferred stock if immediately after
issuance its net assets are equal to at least 200% of the aggregate amount
(exclusive of any dividends accrued or in
arrears) to which all shares of the preferred stock, then outstanding, shall be
entitled as a preference over the common stock in the
event of voluntary or involuntary liquidation, dissolution or winding up of the
Fund;
• may borrow money
for substantially the same purposes as it may issue senior debt securities,
subject to the same restrictions and to
any applicable limitations prescribed by
law;
• may engage in the
business of underwriting securities either directly or through majority-owned
subsidiaries subject to any applicable
restrictions and limitations prescribed by
law;
• does not intend to
concentrate its assets in any one industry although it may from time to time
invest up to 25% of the value of its assets,
taken at market value, in a single
industry*;
* For purposes
of applying the limitation set forth in its concentration policy above, the Fund
will generally use the industry classifications provided by the Global Industry
Classification
Standard (GICS) for classification of issuers of equity securities and the
classifications provided by the Bloomberg U.S. Aggregate Bond Index for
classification
of issues of fixed-income securities. The Fund considers the investments of any
underlying funds in which it invests, and will consider the portfolio positions
applying the
Time of Purchase Standard, which in the case of unaffiliated underlying funds is
based on portfolio information made publicly available by them. The Fund
does not
consider futures or swaps clearinghouses or securities clearinghouses, where the
Fund has exposure to such clearinghouses in the course of making investments
in futures and
securities, to be part of any industry.
• may not, with
limited exceptions, purchase and sell real estate directly but may do so through
majority-owned subsidiaries, so long as its real
estate investments do not exceed 10% of the value of the Fund’s total
assets;
• may not purchase
or sell commodities or commodity contracts;
and
• may make money
loans (subject to restrictions imposed by law and by charter) (a) only to its
subsidiaries, (b) as incidents to its business
transactions or (c) for other purposes. The Fund will not lend securities if the
total of all such loans would exceed 33 1/3% of
the Fund’s total assets, except this fundamental investment policy shall not
prohibit the Fund from purchasing money
market securities, loans, loan participation or other debt securities, or from
entering into repurchase agreements, and it
may make loans represented by repurchase agreements, so long as such loans do
not exceed 10% of the value of total
assets.
If the Fund issues
senior securities, the Fund may not, to the extent required by the 1940 Act,
declare dividends (except dividends payable in
stock of the Fund) or other distributions on stock or purchase its stock
(including through tender offers) if, immediately
after doing so, it will have an asset coverage ratio of less than 300% or 200%,
as applicable.
During its last
three fiscal years, the Fund did not: (a) issue senior securities; (b) borrow
any money; (c) underwrite securities; (d) concentrate
investments in particular industries or groups of industries; (e) purchase or
sell real estate, commodities, or commodity contracts;
or (f) make money loans.
Tri-Continental
Corporation | 2025
7
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
Principal
Risks
An investment in the
Fund involves risks. In particular, investors should consider Market Risk,
Large-Cap Stock Risk, Interest Rate Risk, Credit
Risk, and Convertible Securities Risk, among others. Descriptions of these and
other 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.
Changing
Distribution Level Risk. The Fund normally
expects to receive income which may include interest, dividends and/or
capital
gains, depending upon its investments. The distribution amounts paid by the Fund
will vary and generally depend on the amount of income
the Fund earns (less expenses) on its portfolio holdings, and capital gains or
losses it recognizes. A decline in the
Fund’s income or net capital gains arising from its investments may reduce its
distribution level.
Convertible
Securities Risk. Convertible
securities are subject to the usual risks associated with debt instruments, such
as interest rate risk
(the risk of losses attributable to changes in interest rates) and credit risk
(the risk that the issuer of a debt instrument will
default or otherwise become unable, or be perceived to be unable or unwilling,
to honor a financial obligation, such as making
payments to the Fund when due). Convertible securities also react to changes in
the value of the common stock into which
they convert and are thus subject to market risk (the risk that the market
values of securities or other investments that the
Fund holds will fall, sometimes rapidly or unpredictably, or fail to rise).
Because the value of a convertible security
can be influenced by both interest rates and the common stock’s market
movements, a convertible security generally
is not as sensitive to interest rates as a similar debt instrument and generally
will not vary in value in response to other
factors to the same extent as the underlying common stock. In the event of a
liquidation of the issuing company, holders of
convertible securities would typically be paid before the company’s common
stockholders but after holders of any
senior debt obligations of the company. The Fund may be forced to convert a
convertible security before it otherwise would
choose to do so, which may decrease the Fund’s
return.
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 financials sector and, as a result, events
affecting the financials 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
8
Tri-Continental
Corporation | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
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 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 – Futures Contracts Risk. A futures contract
is an exchange-traded derivative transaction between two parties in which a
buyer (holding the “long” position) agrees to pay a fixed price (or rate) at a
specified future date for delivery of an underlying
reference from a seller (holding the “short” position). The seller hopes that
the market price on the delivery date is less than
the agreed upon price, while the buyer hopes for the contrary. Certain futures
contract markets are highly volatile, and
futures contracts may be illiquid. Futures exchanges may limit fluctuations in
futures contract prices by imposing a maximum
permissible daily price movement. The Fund may be disadvantaged if it is
prohibited from executing a trade outside the
daily permissible price movement. At or prior to maturity of a futures contract,
the Fund may enter into an offsetting contract
and may incur a loss to the extent there has been adverse movement in futures
contract prices. The liquidity of the
futures markets depends on participants entering into offsetting transactions
rather than making or taking delivery. To the
extent participants make or take delivery, liquidity in the futures market could
be reduced. Positions in futures contracts may be
closed out only on the exchange on which they were entered into or through a
linked exchange, and no secondary market
exists for such contracts. Futures positions are marked to market each day, and
variation margin payment must be paid
to or by the Fund. Because of the low margin deposits normally required in
futures trading, it is possible that the
Fund may employ a high degree of leverage in the portfolio. As a result, a
relatively small price movement in a futures
contract may result in substantial losses to the Fund, exceeding the amount of
the margin paid. For certain types of futures
contracts, losses are potentially unlimited. Futures markets are highly
volatile, and the use of futures may increase the
volatility of the Fund’s NAV. Futures contracts executed (if any) on foreign
exchanges may not provide the same protection as U.S.
exchanges. Futures contracts 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.
• An equity
future
is a derivative that is an agreement for the contract holder to buy or sell a
specified amount of an individual equity, a
basket of equities, or the securities in an equity index on a specified date at
a predetermined
price.
Tri-Continental
Corporation | 2025
9
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
Emerging
Market Securities Risk. Securities issued
by foreign governments or companies in emerging market countries, such as China,
Russia and certain countries in Eastern Europe, the Middle East, Asia, Latin
America or Africa, are more likely to have greater
exposure to the risks of investing in foreign securities that are described in
Foreign Securities Risk. In addition, emerging
market countries are more likely to experience instability resulting, for
example, from rapid changes or developments in
social, political, economic or other conditions. Their economies are usually
less mature and their securities markets are
typically less developed with more limited trading activity (i.e., lower trading
volumes and less liquidity) than more developed
countries. Emerging market securities tend to be more volatile, and may be more
susceptible to market manipulation, than
securities in more developed markets. Many emerging market countries are heavily
dependent on international trade
and have fewer trading partners, which makes them more sensitive to world
commodity prices and economic downturns
in other countries. Some emerging market countries have a higher risk of
currency devaluations, and some of these
countries may experience periods of high inflation or rapid changes in inflation
rates and may have hostile relations with other
countries. Due to the differences in the nature and quality of financial
information of issuers of emerging market securities,
including auditing and financial reporting standards, financial information and
disclosures about such issuers may be
unavailable or, if made available, may be considerably less reliable than
publicly available information about other foreign
securities.
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, 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
10
Tri-Continental
Corporation | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
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.
Frequent
Trading Risk. The portfolio
managers may actively and frequently trade investments in the Fund’s portfolio
to carry out its investment
strategies. Frequent trading of investments increases the possibility that the
Fund, as relevant, will realize taxable capital
gains (including short-term capital gains, which are generally taxable to
shareholders at higher rates than long-term capital
gains for U.S. federal income tax purposes), which could reduce the Fund’s
after-tax return. Frequent trading can also
mean higher brokerage and other transaction costs, which could reduce the Fund’s
return. The trading costs and tax effects
associated with portfolio turnover may adversely affect the Fund’s
performance.
High-Yield
Investments Risk. Securities and
other debt instruments held by the Fund that are rated below investment grade
(commonly called
“high-yield” or “junk” bonds) and unrated debt instruments of comparable quality
tend to be more sensitive to credit risk than
higher-rated debt instruments and may experience greater price fluctuations in
response to perceived changes in the
ability of the issuing entity or obligor to pay interest and principal when due
than to changes in interest rates. These investments
are generally more likely to experience a default than higher-rated debt
instruments. High-yield debt instruments are
considered to be predominantly speculative with respect to the issuer’s capacity
to pay interest and repay principal. These
debt instruments typically pay a premium – a higher interest rate or yield –
because of the increased risk of loss, including
default. High-yield debt instruments may require a greater degree of judgment to
establish a price, may be difficult to sell at
the time and price the Fund desires, may carry high transaction costs, and also
are generally less liquid than higher-rated
debt instruments. The ratings provided by third party rating agencies are based
on analyses by these ratings agencies of
the credit quality of the debt instruments and may not take into account every
risk related to whether interest or
principal will be timely repaid. In adverse economic and other circumstances,
issuers of lower-rated debt instruments are more
likely to have difficulty making principal and interest payments than issuers of
higher-rated debt instruments.
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.
Tri-Continental
Corporation | 2025
11
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
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.
Leverage
Risk.
Senior securities issued or money borrowed to raise funds for investment have a
prior fixed dollar claim on the Fund’s assets
and income. Any gain in the value of securities purchased or income received in
excess of the cost of the amount borrowed or
interest or dividends payable causes the net asset value of the Fund’s common
stock or the income available to it to
increase more than otherwise would be the case. Conversely, any decline in the
value of securities purchased or income
received on them that is less than the asset or income claims of the senior
securities or cost of borrowed money
causes the net asset value of the common stock or income available to it to
decline more sharply than would be the case if
there were no prior claim. Funds obtained through senior securities or
borrowings thus create investment
opportunity, but they also increase exposure to risk. This influence ordinarily
is called “leverage.” As of December 31, 2025,
the only senior securities of the Fund outstanding were 752,740 shares of its
preferred stock, $50 par value. The dividend
rate as of December 31, 2025 on the preferred stock was $2.50 per annum payable
quarterly. Based on the net asset value
of the Fund’s common stock on December 31, 2025, the Fund’s portfolio requires
an annual return of 0.10% in order to
cover dividend payments on the preferred stock. For a description of such
payments, see Capital
Stock, Long-Term
Debt, and Other Securities – Description of Capital Stock in the Fund’s
prospectus. The following table illustrates the effect of
leverage relating to presently outstanding preferred stock on the return
available to a holder of the Fund’s common
stock.
|
Assumed
Return on Portfolio (net of expenses) |
-10% |
-5% |
0% |
5% |
10% |
|
Corresponding
Return to Common Stockholders |
( |
( |
( |
|
|
The purpose of the
table above is to assist you in understanding the effects of leverage caused by
the Fund’s preferred stock. The
percentages appearing in the table are hypothetical. Actual returns may be
greater or less than those shown above.
The use of leverage
creates certain risks for the Fund’s common stockholders, including the greater
likelihood of higher volatility of the
Fund’s return, its net asset value and the market price of the Fund’s common
stock. Changes in the value of the Fund’s total
assets will have a disproportionate effect on the net asset value per share of
common stock because of the Fund’s leveraged
assets. For example, if the Fund was leveraged equal to 50% of the Fund’s common
stock equity, it would show an
approximately 1.5% increase or decline in net asset value for each 1% increase
or decline in the value of its total assets. An
additional risk of leverage is that the cost of the leverage plus applicable
Fund expenses may exceed the return on the transactions
undertaken with the proceeds of the leverage, thereby diminishing rather than
enhancing the return to the Fund’s common
stockholders. These risks generally would make the Fund’s return to common
stockholders more volatile. The Fund
also may be required to sell investments in order to make interest payments on
borrowings used for leverage when it may
be disadvantageous to do so. Because the fees received by the Investment Manager
are based on the net assets of the
Fund (including assets attributable to the Fund’s preferred stock and borrowings
that may be outstanding), the Investment
Manager has a financial incentive for the Fund to maintain the preferred stock
or use borrowings, which may create a conflict of
interest between the Investment Manager, on the one hand, and the common
stockholders on the other hand.
Liquidity
Risk. Liquidity risk is
the risk associated with any event, circumstance, or characteristic of an
investment or market that negatively
impacts the Fund’s ability to sell, or realize the proceeds from the sale of, an
investment at a desirable time or price. Liquidity
risk may arise because of, for example, a lack of marketability of the
investment, which means that when seeking to sell its
portfolio investments, the Fund could find that selling is more difficult than
anticipated, especially during times of high market
volatility. Decreases in the number of financial institutions, including banks
and broker-dealers, willing to make markets
(match up sellers and buyers) in the Fund’s investments or decreases in their
capacity or willingness to trade such
investments may increase the Fund’s exposure to this risk. The debt market has
experienced considerable growth, and
financial institutions making markets in instruments purchased and sold by the
Fund (e.g., bond dealers) have
12
Tri-Continental
Corporation | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
been subject to
increased regulation. The impact of that growth and regulation on the ability
and willingness of financial institutions to
engage in trading or “making a market” in such instruments remains unsettled.
Certain types of investments, such as lower-rated
securities or those that are purchased and sold in over-the-counter markets, may
be especially subject to liquidity risk.
Securities or other assets in which the Fund invests may be traded in the
over-the-counter market rather than on an exchange and
therefore may be more difficult to purchase or sell at a fair price, which may
have a negative impact on the Fund’s
performance. Market participants attempting to sell the same or a similar
instrument at the same time as the Fund could
exacerbate the Fund’s exposure to liquidity risk. The Fund may have to accept a
lower selling price for the holding, sell other
liquid or more liquid investments that it might otherwise prefer to hold
(thereby increasing the proportion of the Fund’s
investments in less liquid or illiquid securities), or forego another more
appealing investment opportunity. The liquidity of Fund
investments may change significantly over time and certain investments that were
liquid when purchased by the Fund may
later become illiquid, particularly in times of overall economic distress.
Changing regulatory, market or other conditions or
environments (for example, the interest rate or credit environments) may also
adversely affect the liquidity and the
price of the Fund’s investments. Judgment plays a larger role in valuing
illiquid or less liquid investments as compared to valuing
liquid or more liquid investments. Price volatility may be higher for illiquid
or less liquid investments as a result of, for
example, the relatively less frequent pricing of such securities (as compared to
liquid or more liquid investments).
Generally, the less liquid the market at the time the Fund sells a portfolio
investment, the greater the risk of loss or decline of
value to the Fund. Overall market liquidity and other factors can negatively
impact Fund performance and NAV, including, for
example, if the Fund is forced to sell investments in a down
market.
Market
Risk.
The Fund may incur losses due to declines in the value of one or more securities
in which it invests. These declines may be due
to factors affecting a particular issuer, or the result of, among other things,
political, regulatory, market, economic or social
developments affecting the relevant market(s) more generally. In addition,
turbulence in financial markets and reduced
liquidity in equity, credit and/or fixed income markets may negatively affect
many issuers, which could adversely affect the
Fund’s ability to price or value hard-to-value assets in thinly traded and
closed markets and could cause 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/asked spreads than those experienced by other closed-end
funds.
Preferred
Stock Risk. Preferred stock is
a type of stock that may pay dividends at a different rate than common stock of
the same issuer, if at
all, and that has preference over common stock in the payment of dividends and
the liquidation of assets. Preferred stock does
not ordinarily carry voting rights. The price of a preferred stock is generally
determined by earnings, type of products or
services, projected growth rates, experience of management, liquidity, general
market conditions of the markets on which the
stock trades. The most significant risks associated with investments in
preferred stock include issuer risk, market risk
and interest rate risk (the risk of losses attributable to changes in interest
rates).
Quantitative
Models Risk. Any quantitative
models used by the Fund may not effectively identify purchases and sales of
Fund
investments and may cause the Fund to underperform other investment strategies
for short or long periods of time. Performance will
depend upon the quality and accuracy of the assumptions, theories and framework
upon which a quantitative model
is based. The success of a quantitative model will depend upon its accurate
reflection of market conditions, with
proper adjustments as market conditions change over time. Adjustments, or lack
of adjustments, to the quantitative model,
including as conditions change, as well as any errors or imperfections in the
quantitative model, could adversely affect
Fund performance. The performance of a quantitative model depends upon the
quality of its design and effective execution
under actual market conditions. Even a well-designed quantitative model cannot
be expected to perform well in all market
conditions or across all time intervals. Quantitative models may underperform in
certain market environments
including stressed or volatile market conditions. Effective execution may
depend, in part, upon subjective selection and
application of factors and data inputs used by the quantitative model.
Discretion may be used by the portfolio management team when
determining the data collected and incorporated into a quantitative model.
Shareholders should be
Tri-Continental
Corporation | 2025
13
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
aware that there is
no guarantee that any specific data or type of data can or will be used in a
quantitative model. The portfolio management
team may also use discretion when interpreting and applying the results of a
quantitative model, including
emphasizing, discounting or disregarding its outputs. It is not possible or
practicable for a quantitative model to factor in all
relevant, available data. There is no guarantee that the data actually utilized
in a quantitative model will be the most accurate data
available or be free from errors. There can be no assurance that the use of any
quantitative models will enable the Fund to
achieve its objective.
Rule
144A and Other Exempted Securities Risk. The Fund may
invest in privately placed and other securities or instruments exempt from SEC
registration (collectively “private placements”), subject to certain regulatory
restrictions. In the U.S. market, private placements
are typically sold only to qualified institutional buyers, or qualified
purchasers, as applicable. An insufficient number
of buyers interested in purchasing private placements at a particular time could
adversely affect the marketability of
such investments and the Fund might be unable to dispose of them promptly or at
reasonable prices, subjecting the Fund
to liquidity risk (the risk that it may not be possible for the Fund to
liquidate the instrument at an advantageous time or
price). The Fund’s holdings of private placements may increase the level of Fund
illiquidity if eligible buyers are unable or
unwilling to purchase them at a particular time. The Fund may also have to bear
the expense of registering the
securities for resale and the risk of substantial delays in effecting the
registration. Additionally, the purchase price and subsequent
valuation of private placements typically reflect a discount, which may be
significant, from the market price of comparable
securities for which a more liquid market exists. Issuers of Rule 144A eligible
securities are required to furnish information
to potential investors upon request. However, the required disclosure is much
less extensive than that required of public
companies and is not publicly available since the offering information is not
filed with the SEC. Further, issuers of Rule 144A
eligible securities can require recipients of the offering information (such as
the Fund) to agree contractually to
keep the information confidential, which could also adversely affect the Fund’s
ability to dispose of the security.
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
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.
•
Information Technology Sector. The Fund is
vulnerable to the particular risks that may affect companies in the information
technology sector.
Companies in the information technology sector are subject to certain risks,
including the risk that new services, equipment
or technologies will not be accepted by consumers and businesses or will become
rapidly obsolete. Performance of such
companies may be affected by factors including obtaining and protecting patents
(or the failure to do so) and significant
competitive pressures, including aggressive pricing of their products or
services, new market entrants, competition for
market share and short product cycles due to an accelerated rate of
technological developments. Such competitive
pressures may lead to limited earnings and/or falling profit margins. As a
result, the value of their securities may fall or fail to
rise. In addition, many information technology sector companies have limited
operating histories and prices of these companies’
securities historically have been more volatile than other securities,
especially over the short term. Some companies in the
information technology sector are facing increased government and regulatory
scrutiny and may be subject to adverse
government or regulatory action, which could negatively impact the value of
their securities.
Unrated
Securities
Risk.
The Fund may purchase unrated securities which are not rated by a rating agency.
Unrated securities may be
less liquid than comparable rated securities and involve the risk that the
Investment Manager may not accurately evaluate
the security’s comparative credit rating. Analysis of creditworthiness of
issuers of high yield securities may be more complex
than for issuers of higher-quality debt securities. To the extent that the Fund
purchases unrated securities, the
Fund’s success in achieving its investment objective may depend more heavily on
the Investment Manager’s creditworthiness
analysis than if the Fund invested exclusively in rated
securities.
Transactions
in Derivatives. The Fund may enter
into derivative transactions or otherwise have exposure to derivative
transactions through
underlying investments. Derivatives are financial contracts whose values are,
for example, based on (or “derived” from)
traditional securities (such as a stock or bond), assets (such as a
commodity like gold or a foreign currency), reference rates
(such as the Secured Overnight Financing Rate (commonly known as SOFR)) or
market indices (such as the
14
Tri-Continental
Corporation | 2025
Fund
Investment Objective, Strategies, Policies and
Principal Risks (continued)
(Unaudited)
Standard &
Poor’s 500®Index). The use of
derivatives is a highly specialized activity which involves investment
techniques and risks different
from those associated with ordinary portfolio securities transactions.
Derivatives involve special risks and may result in losses
or may limit the Fund’s potential gain from favorable market movements.
Derivative strategies often involve leverage,
which may exaggerate a loss, potentially causing the Fund to lose more money
than it would have lost had it invested in the
underlying security or other asset directly. The values of derivatives may move
in unexpected ways, especially in
unusual market conditions, and may result in increased volatility in the value
of the derivative and/or the Fund’s shares, among other
consequences. The use of derivatives may also increase the amount of taxes
payable by stockholders holding shares in a
taxable account. See the Taxation section in the
Statement of Additional Information for more information. Other
risks arise from the Fund’s potential inability to terminate or to sell
derivative positions. A liquid secondary market may not
always exist for the Fund’s derivative positions at times when the Fund might
wish to terminate or to sell such positions.
Over-the-counter instruments (investments not traded on an exchange) may be
illiquid, and transactions in derivatives traded
in the over-the-counter market are subject to the risk that the other party will
not meet its obligations. The use of derivatives
also involves the risks of mispricing or improper valuation and that changes in
the value of the derivative may not correlate
perfectly with the underlying security, asset, reference rate or index. The Fund
also may not be able to find a suitable
derivative transaction counterparty, and thus may be unable to engage in
derivative transactions when it is deemed favorable to
do so, or at all. The U.S. government and the European Union (and some other
jurisdictions) have enacted regulations
and similar requirements that prescribe clearing, margin, reporting and
registration requirements for participants in the
derivatives market. These requirements are evolving and their ultimate impact on
the Fund remains unclear, but such
impact could include restricting and/or imposing significant costs or other
burdens upon the Fund’s participation in
derivatives transactions. Additionally, regulations governing the use of
derivatives by registered investment companies, such as
the Fund, require, among other things, that a fund that invests in derivative
instruments beyond a specified limited
amount apply a value-at-risk-based limit to its portfolio and establish a
comprehensive derivatives risk management program.
As of the date of this report, the Fund is not required to maintain a
comprehensive derivatives risk management program
under Rule 18f-4 given its more limited use of derivatives. For more information
on the risks of derivative
investments and strategies, see the Statement of Additional
Information.
Tri-Continental
Corporation | 2025
15
Fees
and Expenses, Share Price Data and Senior
Securities
(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
Stock. 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 | |
|
Cash
Purchase Plan Fees |
$
(a) |
|
Annual
Expenses ( | |
|
Management
fees(b) |
|
|
Other
expenses |
|
|
Acquired
fund fees and expenses |
|
|
Total
Annual Expenses Before Impact of Dividends on Preferred Stock(c) |
|
|
Impact
of Dividends on Preferred Stock |
|
|
Total
Annual Expenses, Including Impact of Dividends on Preferred
Stock |
|
(a)
(b)
(c)
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 (including
the impact of dividends on preferred
stock).
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 |
|
Tri-Continental
Corporation Common Stock |
$ |
$ |
$ |
$ |
If dividends on the
Fund’s $2.50 cumulative preferred stock (Preferred Stock) were not included, the
total expenses incurred for 1, 3, 5 and 10
years would be $5, $16, $29, and $64,
respectively.
The purpose of the
tables above is to assist you in understanding the various costs and expenses
you will bear directly or indirectly.
16
Tri-Continental
Corporation | 2025
Fees
and Expenses, Share Price Data and Senior
Securities (continued)
(Unaudited)
Share
Price Data
The Fund’s Common
Stock is traded primarily on the New York Stock Exchange (the Exchange). The
following table shows the high and low
closing prices of the Fund’s Common Stock on the Exchange for each calendar
quarter since the beginning of 2024, as well as
the net asset values and the range of the percentage (discounts)/premiums to net
asset value per share that correspond to
such prices.
|
|
Market
Price ($) |
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 traded on the market at less than net asset value. The
closing market price, net asset value and
percentage discount to net asset value per share of the Fund’s Common Stock on
December 31, 2025 were $32.66 , $36.35 , and
(10.15 )%,
respectively.
Senior
Securities — $2.50 Cumulative Preferred Stock
The following
information is being presented with respect to the Fund’s Preferred Stock. The
“Total Shares Outstanding” column presents the
number of shares of Preferred Stock outstanding at the end of each year
presented. “Year-End Asset Coverage Per Share”
represents the total amount of net assets of the Fund in relation to each share
of Preferred Stock outstanding as of
the end of the respective year. The “Involuntary Liquidation Preference Per
Share” is the amount each share of Preferred
Stock would be entitled to upon involuntary liquidation of these shares. The
“Average Daily Market Value Per Share” is the
average daily market price per share of Preferred Stock throughout each
respective year. The information as of and for each
of the years ended December 31, 2025, 2024, 2023, 2022, and 2021, is derived
from our financial statements, which
have been audited by PricewaterhouseCoopers LLP, our independent registered
public accounting firm, as stated in their
report which is included herein.
|
Year |
Total
Shares
Outstanding |
Year-End
Asset
Coverage
Per
Share ($) |
Involuntary
Liquidation
Preference
Per
Share ($) |
Average
Daily
Market
Value
Per
Share ($) |
|
2025 |
|
|
|
|
|
2024 |
|
|
|
|
|
2023 |
|
|
|
|
|
2022 |
|
|
|
|
|
2021 |
|
|
|
|
|
2020 |
|
|
|
|
|
2019 |
|
|
|
|
|
2018 |
|
|
|
|
|
2017 |
|
|
|
|
|
2016 |
|
|
|
|
Tri-Continental
Corporation | 2025
17
Portfolio
of Investments
December
31, 2025
(Percentages
represent value of investments compared to net assets)
Investments
in securities
|
Common
Stocks 67.8% | ||
|
Issuer |
Shares |
Value
($) |
|
Communication
Services 6.6% | ||
|
Diversified
Telecommunication Services 0.9% | ||
|
AT&T,
Inc. |
425,000 |
10,557,000 |
|
Verizon
Communications, Inc. |
185,000 |
7,535,050 |
|
Total |
|
18,092,050 |
|
Interactive
Media & Services 5.4% | ||
|
Alphabet,
Inc., Class A |
222,415 |
69,615,895 |
|
Meta
Platforms, Inc., Class A |
57,062 |
37,666,055 |
|
Total |
|
107,281,950 |
|
Media
0.3% | ||
|
Comcast
Corp., Class A |
175,000 |
5,230,750 |
|
Total
Communication Services |
130,604,750 | |
|
Consumer
Discretionary 6.2% | ||
|
Automobile
Components 0.6% | ||
|
Aptiv
PLC(a)
|
161,387 |
12,279,937 |
|
Automobiles
0.6% | ||
|
Tesla,
Inc.(a)
|
25,228 |
11,345,536 |
|
Broadline
Retail 1.8% | ||
|
Amazon.com,
Inc.(a)
|
136,676 |
31,547,554 |
|
Macy’s,
Inc. |
225,000 |
4,961,250 |
|
Total |
|
36,508,804 |
|
Hotels,
Restaurants & Leisure 1.3% | ||
|
Booking
Holdings, Inc. |
3,499 |
18,738,300 |
|
Darden
Restaurants, Inc. |
40,000 |
7,360,800 |
|
Total |
|
26,099,100 |
|
Household
Durables 0.1% | ||
|
Newell
Brands, Inc. |
600,000 |
2,232,000 |
|
Specialty
Retail 0.4% | ||
|
Best
Buy Co., Inc. |
75,000 |
5,019,750 |
|
Ross
Stores, Inc. |
15,710 |
2,829,999 |
|
Total |
|
7,849,749 |
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Textiles,
Apparel & Luxury Goods 1.4% | ||
|
Ralph
Lauren Corp. |
40,844 |
14,442,847 |
|
Tapestry,
Inc. |
99,227 |
12,678,234 |
|
Total |
|
27,121,081 |
|
Total
Consumer Discretionary |
123,436,207 | |
|
Consumer
Staples 3.8% | ||
|
Beverages
0.7% | ||
|
Molson
Coors Beverage Co., Class B |
106,667 |
4,979,216 |
|
PepsiCo,
Inc. |
67,500 |
9,687,600 |
|
Total |
|
14,666,816 |
|
Consumer
Staples Distribution & Retail 0.1% | ||
|
Target
Corp. |
14,655 |
1,432,526 |
|
Food
Products 0.7% | ||
|
ConAgra
Foods, Inc. |
345,423 |
5,979,272 |
|
Mondelez
International, Inc., Class A |
140,000 |
7,536,200 |
|
Total |
|
13,515,472 |
|
Household
Products 0.6% | ||
|
Colgate-Palmolive
Co. |
22,821 |
1,803,316 |
|
Procter
& Gamble Co. (The) |
72,029 |
10,322,476 |
|
Total |
|
12,125,792 |
|
Personal
Care Products 0.3% | ||
|
Kenvue,
Inc. |
325,000 |
5,606,250 |
|
Tobacco
1.4% | ||
|
Altria
Group, Inc. |
298,152 |
17,191,444 |
|
Philip
Morris International, Inc. |
62,500 |
10,025,000 |
|
Total |
|
27,216,444 |
|
Total
Consumer Staples |
74,563,300 | |
|
Energy
2.9% | ||
|
Oil,
Gas & Consumable Fuels 2.9% | ||
|
Chevron
Corp. |
191,975 |
29,258,910 |
|
Diamondback
Energy, Inc. |
32,500 |
4,885,725 |
|
EOG
Resources, Inc. |
47,500 |
4,987,975 |
|
Exxon
Mobil Corp. |
122,256 |
14,712,287 |
|
Valero
Energy Corp. |
21,685 |
3,530,101 |
|
Total |
|
57,374,998 |
|
Total
Energy |
57,374,998 | |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
18
Tri-Continental
Corporation | 2025
Portfolio
of Investments (continued)
December
31, 2025
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Financials
9.9% | ||
|
Banks
2.5% | ||
|
Citigroup,
Inc. |
157,512 |
18,380,075 |
|
JPMorgan
Chase & Co. |
37,798 |
12,179,272 |
|
M&T
Bank Corp. |
50,000 |
10,074,000 |
|
U.S.
Bancorp |
190,000 |
10,138,400 |
|
Total |
|
50,771,747 |
|
Capital
Markets 3.4% | ||
|
Ares
Capital Corp. |
375,000 |
7,586,250 |
|
Bank
of New York Mellon Corp. (The) |
119,827 |
13,910,716 |
|
Blackrock,
Inc. |
11,558 |
12,370,990 |
|
Blackstone
Secured Lending Fund |
190,000 |
5,002,700 |
|
Charles
Schwab Corp. (The) |
68,274 |
6,821,255 |
|
CME
Group, Inc. |
5,958 |
1,627,011 |
|
Morgan
Stanley |
55,000 |
9,764,150 |
|
S&P
Global, Inc. |
20,391 |
10,656,133 |
|
Total |
|
67,739,205 |
|
Consumer
Finance 1.0% | ||
|
Synchrony
Financial |
231,299 |
19,297,275 |
|
Financial
Services 1.3% | ||
|
Clovis
Liquidation Trust(a),(b),(c)
|
9,371,357 |
117,142 |
|
Visa,
Inc., Class A |
71,947 |
25,232,532 |
|
Total |
|
25,349,674 |
|
Insurance
1.2% | ||
|
Allstate
Corp. (The) |
79,211 |
16,487,770 |
|
MetLife,
Inc. |
90,000 |
7,104,600 |
|
Total |
|
23,592,370 |
|
Mortgage
Real Estate Investment Trusts (REITS) 0.5% | ||
|
Starwood
Property Trust, Inc. |
550,000 |
9,905,500 |
|
Total
Financials |
196,655,771 | |
|
Health
Care 7.6% | ||
|
Biotechnology
1.9% | ||
|
AbbVie,
Inc. |
72,360 |
16,533,536 |
|
Amgen,
Inc. |
32,871 |
10,759,007 |
|
Argenx
SE, ADR(a)
|
1,309 |
1,100,804 |
|
BioMarin
Pharmaceutical, Inc.(a)
|
20,637 |
1,226,457 |
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Regeneron
Pharmaceuticals, Inc. |
4,083 |
3,151,545 |
|
Vertex
Pharmaceuticals, Inc.(a)
|
11,096 |
5,030,483 |
|
Total |
|
37,801,832 |
|
Health
Care Equipment & Supplies 0.4% | ||
|
Medtronic
PLC |
57,500 |
5,523,450 |
|
STERIS
PLC |
5,632 |
1,427,825 |
|
Total |
|
6,951,275 |
|
Health
Care Providers & Services 1.3% | ||
|
CVS
Health Corp. |
188,647 |
14,971,026 |
|
McKesson
Corp. |
13,977 |
11,465,193 |
|
Total |
|
26,436,219 |
|
Life
Sciences Tools & Services 0.7% | ||
|
Charles
River Laboratories International, Inc.(a)
|
63,894 |
12,745,575 |
|
Pharmaceuticals
3.3% | ||
|
Bristol-Myers
Squibb Co. |
554,423 |
29,905,577 |
|
Merck
& Co., Inc. |
90,000 |
9,473,400 |
|
Pfizer,
Inc. |
494,420 |
12,311,058 |
|
Viatris,
Inc. |
1,144,870 |
14,253,631 |
|
Total |
|
65,943,666 |
|
Total
Health Care |
149,878,567 | |
|
Industrials
5.5% | ||
|
Aerospace
& Defense 1.5% | ||
|
General
Dynamics Corp. |
50,185 |
16,895,282 |
|
Lockheed
Martin Corp. |
15,000 |
7,255,050 |
|
RTX
Corp. |
27,500 |
5,043,500 |
|
Total |
|
29,193,832 |
|
Air
Freight & Logistics 0.2% | ||
|
United
Parcel Service, Inc., Class B |
50,000 |
4,959,500 |
|
Construction
& Engineering 0.2% | ||
|
EMCOR
Group, Inc. |
5,533 |
3,385,034 |
|
Electrical
Equipment 0.1% | ||
|
Rockwell
Automation, Inc. |
5,533 |
2,152,724 |
|
Ground
Transportation 0.4% | ||
|
Uber
Technologies, Inc.(a)
|
40,816 |
3,335,076 |
|
Union
Pacific Corp. |
21,500 |
4,973,380 |
|
Total |
|
8,308,456 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
19
Portfolio
of Investments (continued)
December
31, 2025
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Machinery
1.7% | ||
|
Pentair
PLC |
148,819 |
15,498,011 |
|
Snap-On,
Inc. |
36,226 |
12,483,479 |
|
Stanley
Black & Decker, Inc. |
75,000 |
5,571,000 |
|
Total |
|
33,552,490 |
|
Passenger
Airlines 0.7% | ||
|
Delta
Air Lines, Inc. |
118,394 |
8,216,544 |
|
United
Airlines Holdings, Inc.(a)
|
43,036 |
4,812,285 |
|
Total |
|
13,028,829 |
|
Professional
Services 0.7% | ||
|
Automatic
Data Processing, Inc. |
27,635 |
7,108,551 |
|
Broadridge
Financial Solutions, Inc. |
29,900 |
6,672,783 |
|
Total |
|
13,781,334 |
|
Total
Industrials |
108,362,199 | |
|
Information
Technology 19.2% | ||
|
Communications
Equipment 1.8% | ||
|
Arista
Networks, Inc.(a)
|
117,864 |
15,443,720 |
|
Cisco
Systems, Inc. |
252,456 |
19,446,686 |
|
Total |
|
34,890,406 |
|
Electronic
Equipment, Instruments & Components 0.4% | ||
|
Corning,
Inc. |
87,500 |
7,661,500 |
|
TE
Connectivity PLC |
5,827 |
1,325,701 |
|
Total |
|
8,987,201 |
|
IT
Services 0.7% | ||
|
International
Business Machines Corp. |
20,000 |
5,924,200 |
|
VeriSign,
Inc. |
29,077 |
7,064,257 |
|
Total |
|
12,988,457 |
|
Semiconductors
& Semiconductor Equipment 7.3% | ||
|
Advanced
Micro Devices, Inc.(a)
|
29,642 |
6,348,131 |
|
Broadcom,
Inc. |
45,959 |
15,906,410 |
|
KLA
Corp. |
3,204 |
3,893,116 |
|
NVIDIA
Corp. |
499,736 |
93,200,764 |
|
QUALCOMM,
Inc. |
100,193 |
17,138,013 |
|
Texas
Instruments, Inc. |
50,000 |
8,674,500 |
|
Total |
|
145,160,934 |
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
Software
5.3% | ||
|
Adobe,
Inc.(a)
|
50,930 |
17,824,991 |
|
Fortinet,
Inc.(a)
|
35,651 |
2,831,046 |
|
Microsoft
Corp. |
99,720 |
48,226,586 |
|
Palantir
Technologies, Inc., Class A(a)
|
89,400 |
15,890,850 |
|
Salesforce,
Inc. |
70,666 |
18,720,130 |
|
ServiceNow,
Inc.(a)
|
16,239 |
2,487,652 |
|
Total |
|
105,981,255 |
|
Technology
Hardware, Storage & Peripherals 3.7% | ||
|
Apple,
Inc.(d)
|
231,434 |
62,917,647 |
|
HP,
Inc. |
300,000 |
6,684,000 |
|
NetApp,
Inc. |
33,267 |
3,562,563 |
|
Total |
|
73,164,210 |
|
Total
Information Technology |
381,172,463 | |
|
Materials
1.7% | ||
|
Chemicals
1.0% | ||
|
CF
Industries Holdings, Inc. |
143,183 |
11,073,773 |
|
LyondellBasell
Industries NV, Class A |
112,500 |
4,871,250 |
|
Nutrien
Ltd. |
82,500 |
5,091,900 |
|
Total |
|
21,036,923 |
|
Containers
& Packaging 0.3% | ||
|
International
Paper Co. |
135,000 |
5,317,650 |
|
Metals
& Mining 0.4% | ||
|
Newmont
Corp. |
77,174 |
7,705,824 |
|
Total
Materials |
34,060,397 | |
|
Real
Estate 2.1% | ||
|
Hotel
& Resort REITs 0.1% | ||
|
Host
Hotels & Resorts, Inc. |
83,842 |
1,486,518 |
|
Industrial
REITs 0.3% | ||
|
Prologis,
Inc. |
45,000 |
5,744,700 |
|
Office
REITs 0.2% | ||
|
BXP,
Inc. |
75,000 |
5,061,000 |
|
Residential
REITs 0.3% | ||
|
Invitation
Homes, Inc. |
190,000 |
5,280,100 |
|
Retail
REITs 0.3% | ||
|
Realty
Income Corp. |
90,000 |
5,073,300 |
|
Specialized
REITs 0.9% | ||
The
accompanying Notes to Financial Statements are an integral part of this
statement.
20
Tri-Continental
Corporation | 2025
Portfolio
of Investments (continued)
December
31, 2025
|
Common
Stocks (continued) | ||
|
Issuer |
Shares |
Value
($) |
|
American
Tower Corp. |
43,010 |
7,551,266 |
|
Equinix,
Inc. |
3,058 |
2,342,917 |
|
SBA
Communications Corp. |
21,146 |
4,090,271 |
|
VICI
Properties, Inc. |
175,000 |
4,921,000 |
|
Total |
|
18,905,454 |
|
Total
Real Estate |
41,551,072 | |
|
Utilities
2.3% | ||
|
Electric
Utilities 1.8% | ||
|
Duke
Energy Corp. |
42,500 |
4,981,425 |
|
Edison
International |
90,076 |
5,406,362 |
|
Entergy
Corp. |
55,000 |
5,083,650 |
|
Exelon
Corp. |
130,508 |
5,688,844 |
|
FirstEnergy
Corp. |
115,000 |
5,148,550 |
|
PG&E
Corp. |
553,506 |
8,894,841 |
|
Total |
|
35,203,672 |
|
Gas
Utilities 0.3% | ||
|
UGI
Corp. |
150,000 |
5,614,500 |
|
Independent
Power and Renewable Electricity Producers 0.2% | ||
|
AES
Corp. (The) |
350,441 |
5,025,324 |
|
Total
Utilities |
45,843,496 | |
|
Total
Common Stocks
(Cost
$900,935,601) |
1,343,503,220 | |
|
Convertible
Bonds 6.6% | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Aerospace
& Defense 0.2% | ||||
|
Intuitive
Machines, Inc.(e)
| ||||
|
10/01/2030 |
2.500% |
|
3,200,000 |
4,850,240 |
|
Automotive
0.2% | ||||
|
Rivian
Automotive, Inc. | ||||
|
03/15/2029 |
4.625% |
|
4,000,000 |
5,025,000 |
|
Brokerage/Asset
Managers/Exchanges 0.8% | ||||
|
Galaxy
Digital Holdings LP(e)
| ||||
|
12/01/2029 |
2.500% |
|
2,500,000 |
3,153,867 |
|
05/01/2031 |
0.500% |
|
2,000,000 |
1,511,000 |
|
MARA
Holdings, Inc.(f)
| ||||
|
06/01/2031 |
0.000% |
|
8,500,000 |
7,072,000 |
|
WisdomTree,
Inc.(e)
| ||||
|
08/15/2030 |
4.625% |
|
5,000,000 |
5,117,500 |
|
Total |
16,854,367 | |||
|
Convertible
Bonds (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Cable
and Satellite 0.2% | ||||
|
BlackSky
Technology, Inc.(e)
| ||||
|
08/01/2033 |
8.250% |
|
4,500,000 |
4,795,678 |
|
Consumer
Products 0.2% | ||||
|
LCI
Industries(e)
| ||||
|
03/01/2030 |
3.000% |
|
4,000,000 |
4,730,000 |
|
Diversified
Manufacturing 0.3% | ||||
|
Greenbrier
Companies, Inc. (The) | ||||
|
04/15/2028 |
2.875% |
|
4,800,000 |
5,156,640 |
|
Electric
0.9% | ||||
|
PG&E
Corp. | ||||
|
12/01/2027 |
4.250% |
|
5,000,000 |
5,138,000 |
|
PPL
Capital Funding, Inc.(e)
| ||||
|
12/01/2030 |
3.000% |
|
5,000,000 |
5,012,769 |
|
WEC
Energy Group, Inc. | ||||
|
06/01/2029 |
4.375% |
|
6,500,000 |
7,582,250 |
|
Total |
17,733,019 | |||
|
Finance
Companies 0.3% | ||||
|
Hercules
Capital, Inc.(e)
| ||||
|
09/01/2028 |
4.750% |
|
5,100,000 |
5,109,180 |
|
Health
Care 0.3% | ||||
|
Oscar
Health, Inc.(e)
| ||||
|
09/01/2030 |
2.250% |
|
5,200,000 |
5,072,080 |
|
Healthcare
REIT 0.2% | ||||
|
Welltower
OP LLC(e)
| ||||
|
07/15/2029 |
3.125% |
|
3,000,000 |
4,530,000 |
|
Leisure
0.3% | ||||
|
Live
Nation Entertainment, Inc. | ||||
|
01/15/2030 |
2.875% |
|
4,800,000 |
5,042,400 |
|
Metals
and Mining 0.2% | ||||
|
Vizsla
Silver Corp.(e)
| ||||
|
01/15/2031 |
5.000% |
|
2,400,000 |
3,152,581 |
|
Other
REIT 0.5% | ||||
|
PennyMac
Corp. | ||||
|
03/15/2026 |
5.500% |
|
9,500,000 |
9,466,750 |
|
Pharmaceuticals
0.3% | ||||
|
Cytokinetics,
Inc.(e)
| ||||
|
10/01/2031 |
1.750% |
|
4,200,000 |
5,236,657 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
21
Portfolio
of Investments (continued)
December
31, 2025
|
Convertible
Bonds (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Retailers
0.0% | ||||
|
Farfetch
Ltd.(g)
| ||||
|
05/01/2027 |
0.000% |
|
5,300,000 |
19,875 |
|
Technology
1.3% | ||||
|
Eos
Energy Enterprises, Inc.(e)
| ||||
|
06/15/2030 |
6.750% |
|
1,300,000 |
3,218,150 |
|
12/01/2031 |
1.750% |
|
2,000,000 |
1,935,000 |
|
Nebius
Group NV(e)
| ||||
|
09/15/2032 |
2.750% |
|
8,000,000 |
7,656,000 |
|
Plug
Power, Inc.(e)
| ||||
|
12/01/2033 |
6.750% |
|
2,400,000 |
2,390,400 |
|
Progress
Software Corp. | ||||
|
03/01/2030 |
3.500% |
|
5,000,000 |
5,063,500 |
|
Strategy,
Inc.(e),(f)
| ||||
|
03/01/2030 |
0.000% |
|
5,500,000 |
4,743,750 |
|
Total |
25,006,800 | |||
|
Transportation
Services 0.2% | ||||
|
Hertz
Corp. (The)(e)
| ||||
|
10/01/2030 |
5.500% |
|
6,500,000 |
4,996,875 |
|
Wireless
0.2% | ||||
|
AST
SpaceMobile, Inc.(e)
| ||||
|
10/15/2032 |
2.375% |
|
2,200,000 |
2,898,500 |
|
01/15/2036 |
2.000% |
|
2,000,000 |
1,992,600 |
|
Total |
4,891,100 | |||
|
Total
Convertible Bonds
(Cost
$129,346,564) |
131,669,242 | |||
|
Convertible
Preferred Stocks 5.3% | |||
|
Issuer |
|
Shares |
Value
($) |
|
Financials
1.5% | |||
|
Banks
0.5% | |||
|
Bank
of America Corp.(h)
|
7.250% |
8,000 |
9,997,000 |
|
Capital
Markets 0.7% | |||
|
Ares
Management Corp. |
6.750% |
90,000 |
4,527,900 |
|
KKR
& Co., Inc. |
6.250% |
190,000 |
9,819,200 |
|
Total |
|
|
14,347,100 |
|
Financial
Services 0.3% | |||
|
Shift4
Payments, Inc. |
6.000% |
60,000 |
4,789,200 |
|
Total
Financials |
29,133,300 | ||
|
Convertible
Preferred Stocks (continued) | |||
|
Issuer |
|
Shares |
Value
($) |
|
Health
Care 0.5% | |||
|
Health
Care Providers & Services 0.3% | |||
|
BrightSpring
Health Services, Inc. |
6.750% |
42,500 |
5,376,374 |
|
Life
Sciences Tools & Services 0.2% | |||
|
Bruker
Corp. |
6.375% |
13,500 |
4,935,330 |
|
Total
Health Care |
10,311,704 | ||
|
Industrials
1.0% | |||
|
Aerospace
& Defense 0.6% | |||
|
Boeing
Co. (The) |
6.000% |
160,000 |
11,112,000 |
|
Trading
Companies & Distributors 0.4% | |||
|
QXO,
Inc. |
5.500% |
150,000 |
8,305,373 |
|
Total
Industrials |
19,417,373 | ||
|
Information
Technology 0.9% | |||
|
Semiconductors
& Semiconductor Equipment 0.4% | |||
|
Microchip
Technology, Inc. |
7.500% |
145,000 |
8,453,500 |
|
Technology
Hardware, Storage & Peripherals 0.5% | |||
|
Hewlett
Packard Enterprise Co. |
7.625% |
155,000 |
10,244,644 |
|
Total
Information Technology |
18,698,144 | ||
|
Materials
0.4% | |||
|
Chemicals
0.4% | |||
|
Albemarle
Corp. |
7.250% |
125,000 |
7,356,250 |
|
Total
Materials |
7,356,250 | ||
|
Utilities
1.0% | |||
|
Electric
Utilities 1.0% | |||
|
Nextera
Energy, Inc. |
7.234% |
70,000 |
3,398,500 |
|
NextEra
Energy, Inc. |
7.299% |
75,000 |
3,867,539 |
|
PG&E
Corp. |
6.000% |
130,000 |
5,319,137 |
|
Southern
Co. (The) |
7.125% |
150,000 |
7,448,378 |
|
Total |
|
|
20,033,554 |
|
Total
Utilities |
20,033,554 | ||
|
Total
Convertible Preferred Stocks
(Cost
$94,013,058) |
104,950,325 | ||
|
Corporate
Bonds & Notes 18.7% | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Aerospace
& Defense 0.5% | ||||
|
Boeing
Co. (The) | ||||
|
05/01/2054 |
6.858% |
|
4,500,000 |
5,050,161 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
22
Tri-Continental
Corporation | 2025
Portfolio
of Investments (continued)
December
31, 2025
|
Corporate
Bonds & Notes (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
United
Technologies Corp. | ||||
|
06/01/2042 |
4.500% |
|
5,200,000 |
4,700,868 |
|
Total |
9,751,029 | |||
|
Airlines
0.2% | ||||
|
American
Airlines, Inc.(e)
| ||||
|
02/15/2028 |
7.250% |
|
4,700,000 |
4,803,720 |
|
Apartment
REIT 0.3% | ||||
|
Invitation
Homes Operating Partnership LP | ||||
|
02/01/2035 |
4.875% |
|
5,000,000 |
4,938,445 |
|
Automotive
0.7% | ||||
|
American
Axle & Manufacturing, Inc.(e)
| ||||
|
10/15/2033 |
7.750% |
|
4,800,000 |
4,889,820 |
|
Nissan
Motor Co., Ltd.(e)
| ||||
|
07/17/2030 |
7.500% |
|
4,500,000 |
4,713,225 |
|
Rivian
Holdings/Automotive LLC(e)
| ||||
|
01/15/2031 |
10.000% |
|
5,000,000 |
4,924,171 |
|
Total |
14,527,216 | |||
|
Banking
0.8% | ||||
|
Citigroup,
Inc.(i)
| ||||
|
Subordinated | ||||
|
09/19/2039 |
5.411% |
|
5,000,000 |
5,035,011 |
|
JPMorgan
Chase & Co.(h),(i)
| ||||
|
|
6.500% |
|
4,700,000 |
4,876,625 |
|
JPMorgan
Chase & Co.(i)
| ||||
|
04/22/2052 |
3.328% |
|
7,000,000 |
4,965,986 |
|
Total |
14,877,622 | |||
|
Building
Materials 0.3% | ||||
|
Stanley
Black & Decker, Inc. | ||||
|
11/15/2048 |
4.850% |
|
6,000,000 |
5,273,554 |
|
Cable
and Satellite 0.1% | ||||
|
Telesat
Canada/LLC(e)
| ||||
|
10/15/2027 |
6.500% |
|
5,286,000 |
2,439,824 |
|
Chemicals
0.8% | ||||
|
INEOS
Finance PLC(e)
| ||||
|
04/15/2029 |
7.500% |
|
5,700,000 |
4,904,709 |
|
Innophos
Holdings, Inc.(e)
| ||||
|
06/15/2029 |
11.500% |
|
4,840,000 |
4,390,635 |
|
Olympus
Water US Holding Corp.(e)
| ||||
|
10/01/2029 |
6.250% |
|
7,500,000 |
7,286,270 |
|
Total |
16,581,614 | |||
|
Corporate
Bonds & Notes (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Construction
Machinery 0.1% | ||||
|
Vortex
Opco LLC.(e),(g)
| ||||
|
04/30/2030 |
0.000% |
|
4,890,600 |
78,910 |
|
Vortex
Opco LLC.(e),(j)
| ||||
|
3-month
Term SOFR + 6.250%
Floor
0.500%
04/30/2030 |
10.842% |
|
1,123,200 |
982,800 |
|
Total |
1,061,710 | |||
|
Consumer
Products 0.7% | ||||
|
Mattel,
Inc.(e)
| ||||
|
04/01/2029 |
3.750% |
|
3,000,000 |
2,926,309 |
|
Mattel,
Inc. | ||||
|
10/01/2040 |
6.200% |
|
1,430,000 |
1,444,050 |
|
11/01/2041 |
5.450% |
|
745,000 |
700,988 |
|
Newell
Brands, Inc.(i)
| ||||
|
04/01/2036 |
7.375% |
|
3,200,000 |
3,004,952 |
|
Newell
Brands, Inc. | ||||
|
04/01/2046 |
7.000% |
|
4,600,000 |
3,844,196 |
|
SWF
Escrow Issuer Corp.(e)
| ||||
|
10/01/2029 |
6.500% |
|
7,500,000 |
1,859,716 |
|
Total |
13,780,211 | |||
|
Electric
1.9% | ||||
|
Duke
Energy Corp.(i)
| ||||
|
09/01/2054 |
6.450% |
|
4,900,000 |
5,139,332 |
|
Entergy
Corp.(i)
| ||||
|
12/01/2054 |
7.125% |
|
4,700,000 |
4,939,585 |
|
Entergy
Louisiana LLC | ||||
|
03/15/2055 |
5.800% |
|
5,000,000 |
5,031,839 |
|
FirstEnergy
Corp. | ||||
|
03/01/2050 |
3.400% |
|
14,000,000 |
9,679,287 |
|
Pacific
Gas and Electric Co. | ||||
|
07/01/2050 |
4.950% |
|
6,000,000 |
5,080,429 |
|
Wisconsin
Electric Power Co. | ||||
|
10/01/2054 |
5.050% |
|
8,200,000 |
7,548,767 |
|
Total |
37,419,239 | |||
|
Food
and Beverage 0.7% | ||||
|
Primo
Water Holdings, Inc./Triton Water Holdings, Inc.(e)
| ||||
|
04/01/2029 |
6.250% |
|
7,000,000 |
7,038,167 |
|
United
Natural Foods, Inc.(e)
| ||||
|
10/15/2028 |
6.750% |
|
7,180,000 |
7,180,034 |
|
Total |
14,218,201 | |||
|
Gaming
0.4% | ||||
|
Scientific
Games Holdings LP/US FinCo, Inc.(e)
| ||||
|
03/01/2030 |
6.625% |
|
9,500,000 |
8,440,956 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
23
Portfolio
of Investments (continued)
December
31, 2025
|
Corporate
Bonds & Notes (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Health
Care 1.0% | ||||
|
Acadia
Healthcare Co., Inc.(e)
| ||||
|
04/15/2029 |
5.000% |
|
5,200,000 |
5,002,751 |
|
CVS
Health Corp.(i)
| ||||
|
03/10/2055 |
7.000% |
|
4,500,000 |
4,719,908 |
|
Quotient
Ltd.(b),(c),(e),(k)
| ||||
|
04/15/2030 |
12.000% |
|
3,501,957 |
3,396,898 |
|
Star
Parent, Inc.(e)
| ||||
|
10/01/2030 |
9.000% |
|
6,800,000 |
7,267,507 |
|
Total |
20,387,064 | |||
|
Independent
Energy 1.2% | ||||
|
Hilcorp
Energy I LP/Finance Co.(e)
| ||||
|
04/15/2030 |
6.000% |
|
10,000,000 |
9,702,854 |
|
Occidental
Petroleum Corp. | ||||
|
07/15/2044 |
4.500% |
|
9,340,000 |
7,390,100 |
|
04/15/2046 |
4.400% |
|
9,600,000 |
7,566,733 |
|
Total |
24,659,687 | |||
|
Life
Insurance 0.3% | ||||
|
MetLife,
Inc. | ||||
|
07/15/2052 |
5.000% |
|
5,500,000 |
5,032,021 |
|
Media
and Entertainment 1.4% | ||||
|
Clear
Channel Outdoor Holdings, Inc.(e)
| ||||
|
04/15/2028 |
7.750% |
|
9,800,000 |
9,803,956 |
|
Deluxe
Corp.(e)
| ||||
|
06/01/2029 |
8.000% |
|
5,000,000 |
5,087,261 |
|
Lions
Gate Capital Holdings LLC(e)
| ||||
|
04/15/2029 |
5.500% |
|
11,500,000 |
9,263,845 |
|
Mav
Acquisition Corp.(e)
| ||||
|
08/01/2029 |
8.000% |
|
4,500,000 |
4,547,949 |
|
Total |
28,703,011 | |||
|
Midstream
0.3% | ||||
|
AmeriGas
Partners LP/Finance Corp.(e)
| ||||
|
06/01/2030 |
9.500% |
|
4,700,000 |
5,008,144 |
|
Oil
Field Services 0.9% | ||||
|
Nabors
Industries Ltd.(e)
| ||||
|
01/15/2028 |
7.500% |
|
4,800,000 |
4,805,259 |
|
Nabors
Industries, Inc.(e)
| ||||
|
08/15/2031 |
8.875% |
|
5,000,000 |
4,851,250 |
|
Transocean
Aquila Ltd.(e)
| ||||
|
09/30/2028 |
8.000% |
|
3,760,000 |
3,852,670 |
|
Transocean
Titan Financing Ltd.(e)
| ||||
|
02/01/2028 |
8.375% |
|
4,139,096 |
4,227,818 |
|
Total |
17,736,997 | |||
|
Corporate
Bonds & Notes (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
Other
Financial Institutions —% | ||||
|
WeWork
Companies US LLC(b),(c),(e)
| ||||
|
08/15/2027 |
0.000% |
|
4,500,000 |
0 |
|
Other
REIT 0.2% | ||||
|
Prologis
LP | ||||
|
03/15/2054 |
5.250% |
|
5,000,000 |
4,755,528 |
|
Packaging
0.4% | ||||
|
Mauser
Packaging Solutions Holding Co.(e)
| ||||
|
04/15/2030 |
9.250% |
|
9,000,000 |
8,675,366 |
|
Pharmaceuticals
0.7% | ||||
|
1261229
BC Ltd.(e)
| ||||
|
04/15/2032 |
10.000% |
|
4,800,000 |
4,999,336 |
|
AbbVie,
Inc. | ||||
|
03/15/2055 |
5.600% |
|
5,000,000 |
5,016,992 |
|
Organon
& Co./Foreign Debt Co-Issuer BV(e)
| ||||
|
05/15/2034 |
7.875% |
|
3,900,000 |
3,134,407 |
|
Organon
Finance 1 LLC(e)
| ||||
|
04/30/2031 |
5.125% |
|
1,600,000 |
1,325,916 |
|
Total |
14,476,651 | |||
|
Railroads
0.3% | ||||
|
Union
Pacific Corp. | ||||
|
02/20/2035 |
5.100% |
|
4,900,000 |
5,055,875 |
|
Restaurants
0.5% | ||||
|
Fertitta
Entertainment LLC/Finance Co., Inc.(e)
| ||||
|
01/15/2030 |
6.750% |
|
10,500,000 |
9,973,146 |
|
Retailers
0.4% | ||||
|
Magic
MergeCo, Inc.(e)
| ||||
|
05/01/2029 |
7.875% |
|
7,500,000 |
6,918,942 |
|
Supermarkets
0.3% | ||||
|
Albertsons
Cos, Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC(e)
| ||||
|
03/31/2031 |
5.500% |
|
2,261,000 |
2,287,591 |
|
Safeway,
Inc. | ||||
|
02/01/2031 |
7.250% |
|
4,200,000 |
4,557,400 |
|
Total |
6,844,991 | |||
|
Technology
3.0% | ||||
|
APLD
ComputeCo LLC(e)
| ||||
|
12/15/2030 |
9.250% |
|
8,000,000 |
7,846,614 |
|
Broadcom,
Inc. | ||||
|
02/15/2041 |
3.500% |
|
6,200,000 |
5,054,759 |
|
Cloud
Software Group, Inc.(e)
| ||||
|
09/30/2029 |
9.000% |
|
4,500,000 |
4,686,555 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
24
Tri-Continental
Corporation | 2025
Portfolio
of Investments (continued)
December
31, 2025
|
Corporate
Bonds & Notes (continued) | ||||
|
Issuer |
Coupon
Rate |
|
Principal
Amount
($) |
Value
($) |
|
CoreWeave,
Inc.(e)
| ||||
|
06/01/2030 |
9.250% |
|
8,000,000 |
7,440,913 |
|
Hewlett
Packard Enterprise Co. | ||||
|
10/15/2054 |
5.600% |
|
5,200,000 |
4,823,155 |
|
International
Business Machines Corp. | ||||
|
02/06/2053 |
5.100% |
|
4,300,000 |
3,917,202 |
|
Minerva
Merger Sub, Inc.(e)
| ||||
|
02/15/2030 |
6.500% |
|
7,500,000 |
7,502,516 |
|
Neptune
Bidco US, Inc.(e)
| ||||
|
04/15/2029 |
9.290% |
|
7,254,000 |
7,272,627 |
|
Picard
Midco, Inc.(e)
| ||||
|
03/31/2029 |
6.500% |
|
4,700,000 |
4,760,990 |
|
Rocket
Software, Inc.(e)
| ||||
|
02/15/2029 |
6.500% |
|
7,200,000 |
7,063,237 |
|
Total |
60,368,568 | |||
|
Transportation
Services 0.3% | ||||
|
Hertz
Corp. (The)(e)
| ||||
|
07/15/2029 |
12.625% |
|
5,000,000 |
5,039,489 |
|
Total
Corporate Bonds & Notes
(Cost
$384,353,309) |
371,748,821 | |||
|
Preferred
Debt 0.3% | ||||
|
Issuer |
Coupon
Rate |
Shares |
Value
($) | |
|
Banking
0.3% | ||||
|
Citigroup
Capital XIII(i)
| ||||
|
10/30/2040 |
10.470% |
|
165,000 |
4,983,000 |
|
Total
Preferred Debt
(Cost
$4,356,642) |
4,983,000 | |||
|
Warrants
—% | ||
|
Issuer |
Shares |
Value
($) |
|
Health
Care —% | ||
|
Health
Care Equipment & Supplies —% | ||
|
Quotient
Ltd.(a),(b),(c)
10/13/2026 |
39,425 |
0 |
|
Quotient
Ltd.(a),(b),(c)
07/06/2027 |
181,609 |
0 |
|
Total |
|
0 |
|
Total
Health Care |
0 | |
|
Total
Warrants
(Cost
$—) |
0 | |
|
| ||
|
Money
Market Funds 0.8% | ||
|
|
Shares |
Value
($) |
|
Columbia
Short-Term Cash Fund, 3.825%(l),(m)
|
15,328,906 |
15,324,308 |
|
Total
Money Market Funds
(Cost
$15,322,770) |
15,324,308 | |
|
Total
Investments in Securities
(Cost:
$1,528,327,944) |
1,972,178,916 | |
|
Other
Assets & Liabilities, Net |
|
10,624,438 |
|
Net
Assets |
1,982,803,354 | |
At December
31, 2025, securities and/or cash totaling $3,336,810 were pledged as
collateral.
Investments
in derivatives
|
Long
futures contracts | ||||||
|
Description |
Number
of
contracts |
Expiration
date |
Trading
currency |
Notional
amount |
Value/Unrealized
appreciation
($) |
Value/Unrealized
depreciation
($) |
|
S&P
500 Index E-mini |
33 |
03/2026 |
USD |
11,372,625 |
8,581 |
— |
Notes
to Portfolio of Investments
|
(a) |
Non-income
producing investment. |
|
(b) |
Represents
fair value as determined in good faith under procedures approved by the
Board of Directors. At December 31, 2025, the total value of these
securities amounted
to $3,514,040, which represents 0.18% of total net
assets. |
|
(c) |
Valuation
based on significant unobservable inputs. |
|
(d) |
This
security or a portion of this security has been pledged as collateral in
connection with investments sold short and/or derivative
contracts. |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
25
Portfolio
of Investments (continued)
December
31, 2025
Notes
to Portfolio of Investments (continued)
|
(e) |
Represents
privately placed and other securities and instruments exempt from
Securities and Exchange Commission registration (collectively, private
placements), such
as Section 4(a)(2) and Rule 144A eligible securities, which are often sold
only to qualified institutional buyers. At December 31, 2025, the total
value of these securities
amounted to $314,707,900, which represents 15.87% of total net
assets. |
|
(f) |
Zero
coupon bond. |
|
(g) |
Represents
a security in default. |
|
(h) |
Perpetual
security with no specified maturity date. |
|
(i) |
Represents
a variable rate security with a step coupon where the rate adjusts
according to a schedule for a series of periods, typically lower for an
initial period and then
increasing to a higher coupon rate thereafter. The interest rate shown was
the current rate as of December 31, 2025. |
|
(j) |
Variable
rate security. The interest rate shown was the current rate as of December
31, 2025. |
|
(k) |
Payment-in-kind
security. Interest can be paid by issuing additional par of the security
or in cash. |
|
(l) |
The
rate shown is the seven-day current annualized yield at December 31,
2025. |
|
(m) |
Under
the Investment Company Act of 1940, an affiliated company is one in which
the Fund owns 5% or more of the company’s outstanding voting securities,
or a company
which is under common ownership or control with the Fund. The value of the
holdings and transactions in these affiliated companies during the year
ended December
31, 2025 are as follows: |
|
Affiliated
issuers |
Beginning
of
period($) |
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% | ||||||||
|
|
24,998,794 |
379,282,590 |
(388,956,053
) |
(1,023
) |
15,324,308 |
(2,350
) |
888,822 |
15,328,906 |
Abbreviation
Legend
|
ADR |
American
Depositary Receipt |
|
SOFR |
Secured
Overnight Financing Rate |
Currency
Legend
|
USD |
US
Dollar |
Fair
value measurements
The Fund
categorizes its fair value measurements according to a three-level hierarchy
that maximizes the use of observable inputs and minimizes the use of
unobservable inputs by
prioritizing that the most observable input be used when available. Observable
inputs are those that market participants would use in pricing an investment
based on market data
obtained from sources independent of the reporting entity. Unobservable inputs
are those that reflect the Fund’s assumptions about the information market
participants
would use in pricing an investment. An investment’s level within the fair value
hierarchy is based on the lowest level of any input that is deemed significant
to the asset’s or
liability’s fair value measurement. The input levels are not necessarily an
indication of the risk or liquidity associated with investments at that level.
For example,
certain U.S. government securities are generally high quality and liquid,
however, they are reflected as Level 2 because the inputs used to determine fair
value may not always be
quoted prices in an active market.
Fair value
inputs are summarized in the three broad levels listed below:
■
Level 1
— Valuations based on quoted prices for investments in active markets that the
Fund has the ability to access at the measurement date. Valuation
adjustments are not
applied to Level 1 investments.
■
Level 2
— Valuations based on other significant observable inputs (including quoted
prices for similar securities, interest rates, prepayment speeds, credit risks,
etc.).
■
Level 3
— Valuations based on significant unobservable inputs (including the Fund’s own
assumptions and judgment in determining the fair value of
investments).
Inputs that
are used in determining fair value of an investment may include price
information, credit data, volatility statistics, and other factors. These inputs
can be either observable or
unobservable. The availability of observable inputs can vary between
investments, and is affected by various factors such as the type of investment,
and the volume and
level of activity for that investment or similar investments in the marketplace.
The inputs will be considered by the Investment Manager, along with any other
relevant
factors in the calculation of an investment’s fair value. The Fund uses prices
and inputs that are current as of the measurement date, which may include
periods of market
dislocations. During these periods, the availability of prices and inputs may be
reduced for many investments. This condition could cause an investment to be
reclassified
between the various levels within the hierarchy.
Investments
falling into the Level 3 category, 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
accompanying Notes to Financial Statements are an integral part of this
statement.
26
Tri-Continental
Corporation | 2025
Portfolio
of Investments (continued)
December
31, 2025
Fair
value measurements (continued)
The Fund’s
Board of Directors (the Board) has designated the Investment Manager, through
its Valuation Committee (the Committee), as valuation designee, responsible for
determining
the fair value of the assets of the Fund for which market quotations are not
readily available using valuation procedures approved by the Board. The
Committee consists of
voting and non-voting members from various groups within the Investment
Manager’s organization, including operations and accounting, trading and
investments,
compliance, risk management and legal.
The Committee
meets at least monthly to review and approve valuation matters, which may
include a description of specific valuation determinations, data regarding
pricing
information received from approved pricing vendors and brokers and the results
of Board-approved valuation policies and procedures (the Policies). The Policies
address, among
other things, instances when market quotations are or are not readily available,
including recommendations of third party pricing vendors and a determination
of appropriate pricing methodologies; events that require specific valuation
determinations and assessment of fair value techniques; securities with a
potential for
stale pricing, including those that are illiquid, restricted, or in default; and
the effectiveness of third party pricing vendors, including periodic reviews of
vendors. The
Committee meets more frequently, as needed, to discuss additional valuation
matters, which may include the need to review back-testing results, review
time-sensitive
information or approve related valuation actions. Representatives of Columbia
Management Investment Advisers, LLC report to the Board at each of its
regularly
scheduled meetings to discuss valuation matters and actions during the period,
similar to those described earlier.
The following
table is a summary of the inputs used to value the Fund’s investments at
December 31, 2025:
|
|
Level
1 ($) |
Level
2 ($) |
Level
3 ($) |
Total
($) |
Investments
in Securities |
|
|
|
|
|
Common
Stocks |
|
|
|
|
|
Communication
Services |
130,604,750 |
— |
— |
130,604,750 |
|
Consumer
Discretionary |
123,436,207 |
— |
— |
123,436,207 |
|
Consumer
Staples |
74,563,300 |
— |
— |
74,563,300 |
|
Energy |
57,374,998 |
— |
— |
57,374,998 |
|
Financials |
196,538,629 |
— |
117,142 |
196,655,771 |
|
Health
Care |
149,878,567 |
— |
— |
149,878,567 |
|
Industrials |
108,362,199 |
— |
— |
108,362,199 |
|
Information
Technology |
381,172,463 |
— |
— |
381,172,463 |
|
Materials |
34,060,397 |
— |
— |
34,060,397 |
|
Real
Estate |
41,551,072 |
— |
— |
41,551,072 |
|
Utilities |
45,843,496 |
— |
— |
45,843,496 |
|
Total
Common Stocks |
1,343,386,078 |
— |
117,142 |
1,343,503,220 |
|
Convertible
Bonds |
— |
131,669,242 |
— |
131,669,242 |
|
Convertible
Preferred Stocks |
|
|
|
|
|
Financials |
— |
29,133,300 |
— |
29,133,300 |
|
Health
Care |
— |
10,311,704 |
— |
10,311,704 |
|
Industrials |
— |
19,417,373 |
— |
19,417,373 |
|
Information
Technology |
— |
18,698,144 |
— |
18,698,144 |
|
Materials |
— |
7,356,250 |
— |
7,356,250 |
|
Utilities |
— |
20,033,554 |
— |
20,033,554 |
|
Total
Convertible Preferred Stocks |
— |
104,950,325 |
— |
104,950,325 |
|
Corporate
Bonds & Notes |
— |
368,351,923 |
3,396,898 |
371,748,821 |
|
Preferred
Debt |
4,983,000 |
— |
— |
4,983,000 |
|
Warrants |
|
|
|
|
|
Health
Care |
— |
— |
0
* |
0
* |
|
Total
Warrants |
— |
— |
0
* |
0
* |
|
Money
Market Funds |
15,324,308 |
— |
— |
15,324,308 |
|
Total
Investments in Securities |
1,363,693,386 |
604,971,490 |
3,514,040 |
1,972,178,916 |
Investments
in Derivatives |
|
|
|
|
|
Asset |
|
|
|
|
|
Futures
Contracts |
8,581 |
— |
— |
8,581 |
|
Total |
1,363,701,967 |
604,971,490 |
3,514,040 |
1,972,187,497 |
|
* |
Rounds
to zero. |
See the
Portfolio of Investments for all investment classifications not indicated in the
table.
The Fund’s
assets assigned to the Level 2 input category are generally valued using the
market approach, in which a security’s value is determined through reference to
prices and
information from market transactions for similar or identical
assets.
Derivative
instruments are valued at unrealized appreciation
(depreciation).
The Fund does
not hold any significant investments (greater than one percent of net assets)
categorized as Level 3.
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
27
Statement
of Assets and Liabilities
December
31, 2025
Assets |
|
|
Investments
in securities, at value |
|
|
Unaffiliated
issuers (cost $1,513,005,174) |
$1,956,854,608 |
|
Affiliated
issuers (cost $15,322,770) |
15,324,308 |
|
Cash |
186,222 |
|
Receivable
for: |
|
|
Investments
sold |
1,961,783 |
|
Capital
shares sold |
23,724 |
|
Dividends |
2,517,782 |
|
Interest |
8,260,486 |
|
Foreign
tax reclaims |
22,874 |
|
Prepaid
expenses |
89,071 |
|
Total
assets |
1,985,240,858 |
Liabilities |
|
|
Payable
for: |
|
|
Investments
purchased |
826,095 |
|
Common
Stock |
544,535 |
|
Preferred
Stock dividends |
470,463 |
|
Variation
margin for futures contracts |
85,388 |
|
Management
services fees |
22,346 |
|
Stockholder
servicing and transfer agent fees |
4,315 |
|
Stockholders’
meeting fees |
5,445 |
|
Compensation
of chief compliance officer |
316 |
|
Compensation
of board members |
26,845 |
|
Other
expenses |
50,279 |
|
Deferred
compensation of board members |
401,477 |
|
Total
liabilities |
2,437,504 |
|
Net
assets |
$1,982,803,354 |
|
Preferred
Stock |
37,637,000 |
|
Net
assets for Common Stock |
1,945,166,354 |
Represented
by |
|
|
$ |
|
|
Shares
issued and outstanding — |
37,637,000 |
|
|
|
|
Shares
issued and outstanding — |
26,757,790 |
|
Capital
surplus |
1,450,570,045 |
|
Total
distributable earnings (loss) |
467,838,519 |
|
Net
assets |
$1,982,803,354 |
|
Net
asset value per share of outstanding Common Stock |
$36.35 |
|
Market
price per share of Common Stock |
$32.66 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
28
Tri-Continental
Corporation | 2025
Statement
of Operations
Year
Ended December 31, 2025
Net
investment income |
|
|
Income: |
|
|
Dividends
— unaffiliated issuers |
$33,757,173 |
|
Dividends
— affiliated issuers |
888,822 |
|
Interest |
33,642,013 |
|
Foreign
taxes withheld |
(45,009
) |
|
Total
income |
68,242,999 |
|
Expenses: |
|
|
Management
services fees |
7,836,995 |
|
Stockholder
servicing and transfer agent fees |
328,895 |
|
Custodian
fees |
26,557 |
|
Printing
and postage fees |
39,659 |
|
Stockholders’
meeting fees |
68,453 |
|
Accounting
services fees |
53,565 |
|
Legal
fees |
11,315 |
|
Interest
on collateral |
790 |
|
Compensation
of chief compliance officer |
309 |
|
Compensation
of board members |
57,036 |
|
Deferred
compensation of board members |
64,771 |
|
Other |
117,111 |
|
Total
expenses |
8,605,456 |
|
Net
investment income(a)
|
59,637,543 |
Realized
and unrealized gain (loss) — net |
|
|
Net
realized gain (loss) on: |
|
|
Investments
— unaffiliated issuers |
135,842,138 |
|
Investments
— affiliated issuers |
(2,350
) |
|
Futures
contracts |
530,990 |
|
Net
realized gain |
136,370,778 |
|
Net
change in unrealized appreciation (depreciation) on: |
|
|
Investments
— unaffiliated issuers |
58,039,517 |
|
Investments
— affiliated issuers |
(1,023
) |
|
Futures
contracts |
261,995 |
|
Net
change in unrealized appreciation (depreciation) |
58,300,489 |
|
Net
realized and unrealized gain |
194,671,267 |
|
Net
increase in net assets resulting from operations |
$254,308,810 |
|
(a) |
Net
investment income for Common Stock is $57,755,693, which is net of
Preferred Stock dividends of
$1,881,850. |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
29
Statement
of Changes in Net Assets
|
|
Year
Ended
December
31, 2025 |
Year
Ended
December
31, 2024 |
Operations |
|
|
|
Net
investment income |
$59,637,543 |
$59,523,817 |
|
Net
realized gain |
136,370,778 |
139,396,563 |
|
Net
change in unrealized appreciation (depreciation) |
58,300,489 |
121,829,237 |
|
Net
increase in net assets resulting from operations |
254,308,810 |
320,749,617 |
Distributions
to stockholders |
|
|
|
Net
investment income and net realized gains
|
|
|
|
Preferred
Stock |
(1,881,850
) |
(1,881,850
) |
|
Common
Stock
|
(201,815,658
) |
(171,556,614
) |
|
Total
distributions to stockholders |
(203,697,508
) |
(173,438,464
) |
|
Increase
in net assets from capital stock activity |
30,823,525 |
5,329,556 |
|
Total
increase in net assets |
81,434,827 |
152,640,709 |
|
Net
assets at beginning of year |
1,901,368,527 |
1,748,727,818 |
|
Net
assets at end of year |
$1,982,803,354 |
$1,901,368,527 |
|
|
Year
Ended |
Year
Ended | ||
|
|
December
31, 2025
|
December
31, 2024
| ||
|
|
Shares |
Dollars
($) |
Shares |
Dollars
($) |
|
Capital
stock activity | ||||
|
Common
Stock issued at market price in distributions |
3,194,017 |
101,906,813 |
2,608,910 |
82,584,081 |
|
Common
Stock issued to cash purchase plan participants |
37,958 |
1,184,727 |
23,711 |
736,127 |
|
Common
Stock purchased from cash purchase plan participants |
(636,636
) |
(20,589,629
) |
(510,267
) |
(16,034,327
) |
|
Common
Stock purchased in the open market |
(1,612,817
) |
(51,678,386
) |
(1,986,238
) |
(61,956,325
) |
|
Total
net increase |
982,522 |
30,823,525 |
136,116 |
5,329,556 |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
30
Tri-Continental
Corporation | 2025
Financial
Highlights
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 shares of the
Fund at the market price or net asset value as
of the beginning of the period, invested all distributions paid, as provided for
in the Fund’s Prospectus and then sold their
shares at the closing market price or net asset value per share on the last day
of the period. The computations do not reflect any
sales commissions or transaction costs you may incur in purchasing or selling
shares of the Fund, or taxes investors
may incur on distributions or on the sale of shares of the Fund, and are not
annualized for periods of less than one
year.
The portfolio
turnover rate is calculated without regard to purchase and sales transactions of
short-term instruments and certain derivatives,
if any, and is not annualized for periods of less than one year. If such
transactions were included, the Fund’s portfolio
turnover rate may be higher.
The ratios of
expenses and net investment income to average net assets for Common Stock for
the periods presented do not reflect the
effect of dividends paid to Preferred Stockholders and are annualized for
periods of less than one year. 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.
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
31
Financial
Highlights (continued)
|
|
Year
ended December 31, | ||
|
2025
|
2024
|
2023
| |
|
Per
share data | |||
|
Net
asset value, beginning of period |
$35.48 |
$32.66 |
$29.07 |
|
Income
from investment operations: | |||
|
Net
investment income |
1.15 |
1.15 |
1.12 |
|
Net
realized and unrealized gain (loss) |
3.76 |
5.06 |
3.66 |
|
Total
from investment operations |
4.91 |
6.21 |
4.78 |
|
Less
distributions to Stockholders from: | |||
|
Net
investment income — Preferred Stock |
(0.04
) |
(0.04
) |
(0.04
) |
|
Net
investment income — Common Stock |
(1.10
) |
(1.12
) |
(1.12
) |
|
Net
realized gains — Common Stock |
(2.81
) |
(2.24
) |
(0.14
) |
|
Total
distributions to Stockholders |
(3.95
) |
(3.40
) |
(1.30
) |
|
(Dilution)
Anti-dilution in net asset value from share purchases (via dividend
reinvestment program and cash purchase
plan)(a)
|
(0.26
) |
(0.20
) |
(0.07
) |
|
Anti-dilution
in net asset value from share buy-backs (via stock repurchase program and
cash purchase plan)(a)
|
0.17 |
0.21 |
0.18 |
|
Net
asset value, end of period |
$36.35 |
$35.48 |
$32.66 |
|
Adjusted
net asset value, end of period(b)
|
$36.22 |
$35.35 |
$32.54 |
|
Market
price, end of period |
$32.66 |
$31.69 |
$28.83 |
|
Total
return | |||
|
Based
upon net asset value |
15.45
% |
20.53
% |
17.74
% |
|
Based
upon market price |
16.14
% |
21.96
% |
17.88
% |
|
Ratios
to average net assets | |||
|
Expenses
to average net assets for Common Stock(c)
|
0.46
%(d) |
0.47
%(d) |
0.47
%(d) |
|
Net
investment income to average net assets for Common
Stock |
3.07
% |
3.13
% |
3.54
% |
|
Supplemental
data | |||
|
Net
assets, end of period (000’s): |
|
|
|
|
Common
Stock |
$1,945,166 |
$1,863,732 |
$1,711,091 |
|
Preferred
Stock |
$37,637 |
$37,637 |
$37,637 |
|
Total
net assets |
$1,982,803 |
$1,901,369 |
$1,748,728 |
|
Portfolio
turnover |
49
% |
48
% |
48
% |
|
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) |
Assumes
the exercise of outstanding warrants. |
|
(c) |
In
addition to the fees and expenses that the Fund bears directly, the Fund
indirectly bears a pro rata share of the fees and expenses of any other
funds in which it invests.
Such indirect expenses are not included in the Fund’s reported expense
ratios. |
|
(d) |
Ratios
include interest on collateral expense which is less than
0.01%. |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
32
Tri-Continental
Corporation | 2025
Financial
Highlights (continued)
|
Year
ended December 31, | ||||||
|
2022
|
2021
|
2020
|
2019
|
2018
|
2017
|
2016
|
|
| ||||||
|
$36.69 |
$33.26 |
$31.03 |
$26.58 |
$29.88 |
$25.91 |
$23.49 |
|
| ||||||
|
1.11 |
1.07 |
1.05 |
1.03 |
0.99 |
0.93 |
0.90 |
|
(6.53
) |
7.28 |
2.86 |
5.39 |
(2.35
) |
4.24 |
2.33 |
|
(5.42
) |
8.35 |
3.91 |
6.42 |
(1.36
) |
5.17 |
3.23 |
|
| ||||||
|
(0.03
) |
(0.04
) |
(0.04
) |
(0.04
) |
(0.03
) |
(0.03
) |
(0.03
) |
|
(1.08
) |
(1.05
) |
(1.07
) |
(1.01
) |
(0.96
) |
(1.07
) |
(0.91
) |
|
(1.15
) |
(3.64
) |
(0.57
) |
(0.92
) |
(0.95
) |
(0.10
) |
— |
|
(2.26
) |
(4.73
) |
(1.68
) |
(1.97
) |
(1.94
) |
(1.20
) |
(0.94
) |
|
(0.10
) |
(0.32
) |
— |
— |
— |
— |
(0.06
) |
|
0.16 |
0.13 |
— |
— |
— |
— |
0.19 |
|
$29.07 |
$36.69 |
$33.26 |
$31.03 |
$26.58 |
$29.88 |
$25.91 |
|
$28.97 |
$36.57 |
$33.14 |
$30.92 |
$26.48 |
$29.77 |
$25.83 |
|
$25.63 |
$33.19 |
$29.47 |
$28.20 |
$23.52 |
$26.94 |
$22.05 |
|
| ||||||
|
(14.10
%) |
26.76
% |
14.17
% |
25.20
% |
(4.10
%) |
20.82
% |
15.25
% |
|
(16.28
%) |
29.41
% |
11.31
% |
28.59
% |
(5.88
%) |
28.00
% |
15.08
% |
|
| ||||||
|
0.46
%(d) |
0.46
%(d) |
0.48
% |
0.49
% |
0.49
% |
0.49
% |
0.50
% |
|
3.35
% |
2.77
% |
3.45
% |
3.32
% |
3.14
% |
3.21
% |
3.59
% |
|
| ||||||
|
|
|
|
|
|
|
|
|
$1,577,033 |
$2,005,857 |
$1,745,135 |
$1,664,401 |
$1,431,211 |
$1,637,553 |
$1,470,843 |
|
$37,637 |
$37,637 |
$37,637 |
$37,637 |
$37,637 |
$37,637 |
$37,637 |
|
$1,614,670 |
$2,043,494 |
$1,782,772 |
$1,702,038 |
$1,468,848 |
$1,675,190 |
$1,508,480 |
|
48
% |
56
% |
67
% |
60
% |
63
% |
95
% |
82
% |
The
accompanying Notes to Financial Statements are an integral part of this
statement.
Tri-Continental
Corporation | 2025
33
Notes
to Financial Statements
December
31, 2025
Note
1. Organization
Tri-Continental
Corporation (the Fund) is a 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 has 1
million authorized shares of preferred capital stock (Preferred Stock) and 159
million authorized shares of common stock (Common
Stock). The issued and outstanding Common Stock trades primarily on the New York
Stock Exchange under the
symbol "TY".
The Fund’s Preferred
Stock is entitled to two votes per share and the Common Stock is entitled to one
vote per share at all meetings of
Stockholders. In the event of a default in payments of dividends on the
Preferred Stock equivalent to six quarterly dividends,
the holders of the Fund’s Preferred Stock (Preferred Stockholders) are entitled,
voting separately as a class to the
exclusion of the holders of the Fund’s Common Stock (Common Stockholders), to
elect two additional directors, with such right to
continue until all arrearages have been paid and current Preferred Stock
dividends are provided for. Generally, the vote
of Preferred Stockholders is required to approve certain actions adversely
affecting their rights.
Note
2. Summary of
significant accounting policies
Basis
of preparation
The Fund is an
investment company that applies the accounting and reporting guidance in the
Financial Accounting Standards Board
(FASB) Accounting Standards Codification Topic 946, Financial
Services - Investment Companies (ASC 946). The financial
statements are prepared in accordance with U.S. generally accepted accounting
principles (GAAP), which requires management
to make certain estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses
during the reporting period. Actual results could differ from those
estimates.
The following is a
summary of significant accounting policies followed by the Fund in the
preparation of its financial statements.
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.
Debt securities
generally are valued based on prices obtained from pricing services, which are
intended to reflect market transactions for
normal, institutional-size trading units of similar securities. The services may
use various pricing techniques that take into
account, as applicable, factors such as yield, quality, coupon rate, maturity,
type of issue, trading characteristics and other data, as
well as approved independent broker-dealer quotes. Debt securities for which
quotations are not
34
Tri-Continental
Corporation | 2025
Notes
to Financial Statements (continued)
December
31, 2025
readily available or
not believed to be reflective of market value may also be valued based upon a
bid quote from an approved independent
broker-dealer. Debt securities maturing in 60 days or less are valued primarily
at amortized market value, unless this
method results in a valuation that management believes does not approximate fair
value.
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.
Futures and options
on futures contracts are valued based upon the settlement price at the close of
regular trading on their principal exchanges
or, in the absence of a settlement price, at the mean of the latest quoted bid
and ask prices.
Investments for
which market quotations are not readily available, or that have quotations which
management believes are not reflective of
market value or reliable, are valued at fair value as determined in good faith
under procedures approved by 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.
Derivative
instruments
The Fund invests in
certain derivative instruments, as detailed below, in seeking to meet its
investment objectives. Derivatives are
instruments whose values depend on, or are derived from, in whole or in part,
the value of one or more securities,
currencies, commodities, indices, or other assets or instruments. Derivatives
may be used to increase investment flexibility
(including to maintain cash reserves while maintaining desired exposure to
certain assets), for risk management (hedging) purposes,
to facilitate trading, to reduce transaction costs and to pursue higher
investment returns. The Fund may also use derivative
instruments to mitigate certain investment risks, such as foreign currency
exchange rate risk, interest rate risk and credit
risk. Derivatives may involve various risks, including the potential inability
of the counterparty to fulfill its obligations under
the terms of the contract, the potential for an illiquid secondary market
(making it difficult for the Fund to sell or terminate,
including at favorable prices) and the potential for market movements which may
expose the Fund to gains or losses in excess
of the amount shown in the Statement of Assets and Liabilities. The notional
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.
Tri-Continental
Corporation | 2025
35
Notes
to Financial Statements (continued)
December
31, 2025
A derivative
instrument may suffer a marked-to-market loss if the value of the contract
decreases due to an unfavorable change in the market
rates or values of the underlying instrument. Losses can also occur if the
counterparty does not perform its
obligations under the contract. The Fund’s risk of loss from counterparty credit
risk on over-the-counter derivatives is
generally expected to be limited to the aggregate unrealized gain netted against
any collateral held by the Fund and the amount of
any variation margin held by the counterparty, plus any replacement costs or
related amounts. With exchange-traded or
centrally cleared derivatives, there is reduced counterparty credit risk to the
Fund since the clearinghouse or central
counterparty 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 and centrally cleared
derivatives with respect to any collateral that is
held in a broker’s customer accounts. While clearing brokers are required to
segregate customer margin from their own
assets, in the event that a clearing broker becomes insolvent or goes into
bankruptcy and at that time there is a shortfall in the
aggregate amount of margin held by the clearing broker for all its clients and
such shortfall is remedied by the central
counterparty or otherwise, U.S. bankruptcy laws will typically allocate that
shortfall on a pro-rata basis across all the clearing
broker’s customers (including the Fund) 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 an agreement between the Fund and a counterparty that governs
over-the-counter derivatives and foreign exchange
forward contracts and contains, among other things, collateral posting terms and
netting provisions in the event of a
default and/or termination event. Under an ISDA Master Agreement, the Fund may,
under certain circumstances, offset with the
counterparty certain derivative instruments’ payables and/or receivables with
collateral held and/or posted and create
one single net payment. The provisions of the ISDA Master Agreement typically
permit a single net payment in the event
of default (close-out netting), including the bankruptcy or insolvency of the
counterparty. Note, however, that
bankruptcy or insolvency laws of a particular jurisdiction may impose
restrictions on or prohibitions against the right of offset
or netting in bankruptcy, insolvency or other events.
Collateral (margin)
requirements differ by type of derivative. Margin requirements are established
by the clearinghouse or central counterparty
for exchange-traded and centrally cleared derivatives. Brokers can ask for
margin in excess of the minimum in certain
circumstances. Collateral terms for most over-the-counter derivatives are
subject to regulatory requirements to
exchange variation margin with trading counterparties and may have contract
specific margin terms as well. For
over-the-counter derivatives traded under an ISDA Master Agreement, the
collateral requirements are typically calculated by
netting the marked-to-market amount for each transaction under such agreement
and comparing that amount to the value of any
variation margin currently pledged by the Fund and/or the counterparty.
Generally, the amount of collateral due from
or to a party has to exceed a minimum transfer amount threshold (e.g., $250,000)
before a transfer has to be made. To the
extent amounts due to the Fund from its counterparties are not fully
collateralized, contractually or otherwise, the Fund
bears the risk of loss from counterparty nonperformance. The Fund may also pay
interest expense on cash collateral
received from the broker 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.
Certain ISDA Master
Agreements allow counterparties of over-the-counter derivatives transactions to
terminate derivatives contracts prior to
maturity in the event the Fund’s net asset value declines by a stated percentage
over a specified time period or if the
Fund fails to meet certain terms of the ISDA Master Agreement, which would cause
the Fund to accelerate payment of any net
liability owed to the counterparty. The Fund also has termination rights
if the counterparty fails to meet certain terms of the
ISDA Master Agreement. In determining whether to exercise such termination
rights, the Fund would consider, in
addition to counterparty credit risk, whether termination would result in a net
liability owed from the counterparty.
For financial
reporting purposes, the Fund does not offset derivative assets and derivative
liabilities that are subject to netting arrangements
in the Statement of Assets and Liabilities.
36
Tri-Continental
Corporation | 2025
Notes
to Financial Statements (continued)
December
31, 2025
Futures
contracts
Futures contracts
are exchange-traded and represent commitments for the future purchase or sale of
an asset at a specified price on a
specified date. The Fund bought and sold futures contracts to manage its
exposure to the securities markets or to
movements in interest rates and currency values. A Fund invests in futures
contracts as part of its primary investment strategy
and/or to equitize its cash flows. Investments in futures contracts may increase
or decrease exposure to a particular
market. These instruments may be used for other purposes in future periods. Upon
entering into futures contracts, the Fund
bears risks that it may not achieve the anticipated benefits of the futures
contracts and may realize a loss. Additional
risks include counterparty credit risk, the possibility of an illiquid market,
and that a change in the value of the contract or
option may not correlate with changes in the value of the underlying
asset.
Upon entering into a
futures contract, the Fund deposits cash or securities with the broker, known as
a futures commission merchant (FCM), in
an amount sufficient to meet the initial margin requirement. The initial margin
deposit must be maintained at an
established level over the life of the contract. Cash deposited as initial
margin is recorded in the Statement of Assets and
Liabilities as margin deposits. Securities deposited as initial margin are
designated in the Portfolio of Investments.
Subsequent payments (variation margin) are made or received by the Fund each
day. The variation margin payments are equal
to the daily change in the contract value and are recorded as variation margin
receivable or payable and are offset in
unrealized gains or losses. The Fund generally expects to earn interest income
on its margin deposits. The Fund recognizes a
realized gain or loss when the contract is closed or expires. Futures contracts
involve, to varying degrees, risk of loss in excess of
the variation margin disclosed in the Statement of Assets and
Liabilities.
Effects
of derivative transactions in the financial statements
The following tables
are intended to provide additional information about the effect of derivatives
on the financial statements of the
Fund, including: the fair value of derivatives by risk category and the location
of those fair values in the Statement of Assets
and Liabilities; and the impact of derivative transactions over the period in
the Statement of Operations, including realized
and unrealized gains (losses). The derivative instrument schedules following the
Portfolio of Investments present additional
information regarding derivative instruments outstanding at the end of the
period, if any.
The following table
is a summary of the fair value of derivative instruments (not considered to be
hedging instruments for accounting
disclosure purposes) at December 31, 2025:
|
Asset
derivatives |
| |
|
Risk
exposure
category |
Statement
of
assets and liabilities
location |
Fair
value ($) |
|
Equity
risk |
Component
of total distributable earnings (loss) — unrealized appreciation on
futures contracts |
8,581
* |
|
* |
Includes
cumulative appreciation (depreciation) as reported in the tables following
the Portfolio of Investments. Only the current day’s variation margin for
futures and centrally
cleared swaps, if any, is reported in receivables or payables in the
Statement of Assets and
Liabilities. |
The following table
indicates the effect of derivative instruments (not considered to be hedging
instruments for accounting disclosure purposes)
in the Statement of Operations for the year ended December 31, 2025:
|
Amount
of realized gain (loss) on derivatives recognized in
income | |
|
Risk
exposure category |
Futures
contracts
($) |
|
Equity
risk |
530,990 |
|
| |
|
Change
in unrealized appreciation (depreciation) on derivatives recognized in
income | |
|
Risk
exposure category |
Futures
contracts
($) |
|
Equity
risk |
261,995 |
Tri-Continental
Corporation | 2025
37
Notes
to Financial Statements (continued)
December
31, 2025
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
notional
amounts
($) |
|
Futures
contracts — long |
12,845,761 |
Security
transactions
Security
transactions are accounted for on the trade date. Cost is determined and gains
(losses) are based upon the specific identification
method for both financial statement and federal income tax purposes.
Income
recognition
Interest income is
recorded on an accrual basis. Market premiums and discounts, including original
issue discounts, are amortized and
accreted, respectively, over the expected life of the security on all debt
securities, unless otherwise noted. For convertible
securities, premiums attributable to the conversion feature are not
amortized.
The Fund may place a
debt security on non-accrual status and reduce related interest income when it
becomes probable that the interest
will not be collected and the amount of uncollectible interest can be reasonably
estimated. The Fund may also adjust accrual
rates when it becomes probable the full interest will not be collected and a
partial payment will be received. A
defaulted debt security is removed from non-accrual status when the issuer
resumes interest payments or when collectability of
interest is reasonably assured.
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.
The value of
additional securities received as an income payment through a payment-in-kind,
if any, is recorded as interest income and increases
the cost basis of such securities.
Determination
of net asset value
The net asset value
per share of the Fund is computed by dividing the value of the net
assets for common stock of the Fund by the total number
of outstanding common 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.
38
Tri-Continental
Corporation | 2025
Notes
to Financial Statements (continued)
December
31, 2025
Federal
income tax status
The Fund intends to
qualify each year as a regulated investment company under Subchapter M of the
Internal Revenue Code, as amended,
and will distribute substantially all of its investment company taxable income
and net capital gain, if any, for its tax year,
and as such will not be subject to federal income taxes. In addition, the Fund
intends to distribute in each calendar year
substantially all of its ordinary income, capital gain net income and certain
other amounts, if any, such that the Fund should not be
subject to federal excise tax. Therefore, no federal income or excise tax
provision is recorded.
Foreign
taxes
The Fund may be
subject to foreign taxes on income, gains on investments or currency
repatriation, a portion of which may be recoverable. The
Fund will accrue such taxes and recoveries, as applicable, based upon its
current interpretation of tax rules and
regulations that exist in the markets in which it invests.
Realized gains in
certain countries may be subject to foreign taxes at the Fund level, based on
statutory rates. The Fund accrues for such
foreign taxes on realized and unrealized gains at the appropriate rate for each
jurisdiction, as applicable. The amount, if any,
is disclosed as a liability in the Statement of Assets and
Liabilities.
Distributions
to stockholders
The Fund has an
earned distribution policy. Under this policy, the Fund intends to make
quarterly distributions to holders of Common Stock that
are approximately equal to net investment income, less dividends payable on the
Fund’s Preferred Stock. Capital
gains, when available, are distributed to Common Stockholders at least
annually.
Dividends and other
distributions to stockholders are recorded on ex-dividend
dates.
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 an annual fee that is
equal to a percentage of the Fund’s daily net
assets (which includes assets attributed to the Fund’s Common and Preferred
Stock) that declines from 0.415% to 0.385% as
the Fund’s net assets increase and it is borne by the holders of the Fund’s
Common Stock. The effective management
services fee rate for the year ended December 31, 2025 was 0.42% of the Fund’s
average daily net assets for Common
Stock, paid by Common Stockholders (and 0.41% of the Fund’s total average daily
net assets).
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.
Tri-Continental
Corporation | 2025
39
Notes
to Financial Statements (continued)
December
31, 2025
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.
Stockholder
servicing fees
Under a Stockholder
Service Agent Agreement, Columbia Management Investment Services Corp. (the
Servicing Agent), an affiliate of the
Investment Manager and a wholly-owned subsidiary of Ameriprise Financial,
maintains Fund stockholder accounts and records
and provides Fund stockholder services. Under the Stockholder Service Agent
Agreement, the Fund pays the Servicing
Agent a monthly stockholder servicing and transfer agent fee based on the number
of Common Stock open accounts. The
Servicing Agent is also entitled to reimbursement for out-of-pocket
fees.
For the year ended
December 31, 2025, the Fund’s effective stockholder servicing and transfer agent
fee rate as a percentage of Common
Stock average net assets was 0.02%.
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, derivative
investments, investments in certain convertible securities, principal and/or
interest from fixed income securities, defaulted
securities/troubled debt, trustees’ deferred compensation, distributions, deemed
distributions and miscellaneous adjustments.
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:
|
Undistributed
net
investment
income
($) |
Accumulated
net
realized
gain
($) |
Paid
in
capital
($) |
|
1,003,970 |
(1,003,972
) |
2 |
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 ($) |
Total
($) |
|
82,254,608 |
121,442,900 |
203,697,508 |
78,163,274 |
95,275,190 |
173,438,464 |
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
($) |
Net
unrealized
appreciation
($) |
|
7,035,171 |
22,844,281 |
— |
438,831,007 |
40
Tri-Continental
Corporation | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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)
($) |
Net
unrealized
appreciation
($) |
|
1,533,356,490 |
499,891,481 |
(61,060,474
) |
438,831,007 |
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
$940,296,686 and $1,047,953,933, 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
Under the Fund’s
Charter, dividends on Common Stock cannot be declared unless net assets, after
deducting the amount of such dividends and
all unpaid dividends declared on Preferred Stock, equal at least $100 per share
of Preferred Stock outstanding. The
equivalent figure at December 31, 2025 was $2,634. The Preferred Stock is
subject to redemption at the Fund’s option at any
time on 30 days’ notice at $55 per share (or a total of $41,400,700 for the
shares outstanding at December 31, 2025)
plus accrued dividends, and entitled in liquidation to $50 per share plus
dividends accrued or in arrears, as the case may
be.
Automatic
Dividend Investment Plan, Cash Purchase Plan and Stock Repurchase
Program
The Fund makes
available the Automatic Dividend Investment Plan and the Cash Purchase Plan
(collectively, the Investment Plans) to any Common
Stockholder with a Direct-at-Fund Account (as defined below) that wishes to
purchase additional shares of the Fund.
The Automatic Dividend Investment Plan provides stockholders with the option to
add to their investment with
reinvested distributions from the Fund, and the Cash Purchase Plan provides
stockholders with the option to add to their
investment with cash purchases. Direct-at-Fund Account holders may participate
in one or both of the Investment Plans.
Direct-at-Fund Account stockholders will automatically be enrolled in the
reinvested distributions option under the Automatic
Dividend Investment Plan, but must elect to participate in the cash purchase
option under the Cash Purchase
Plan.
Automatic
Dividend Investment Plan. Under the
Automatic Dividend Investment Plan, you may elect to purchase additional
shares
of the Fund’s Common Stock with dividends or other distributions on shares of
the Fund owned. For Direct-at-Fund Accounts, unless the
Servicing Agent is otherwise instructed by you as described below, 100% of
distributions on the Common Stock are
automatically paid in book shares of Common Stock, which are entered in your
Fund account as “book credits.” You may
otherwise elect to receive distributions 75% in shares and 25% in cash, 50% in
shares and 50% in cash, or 100% in cash. Any
request to change your distribution payment option must be received by the
Servicing Agent by the record date for a
distribution in order for the change to take effect for such distribution.
Elections received after a record date for a distribution will be
effective for the next distribution. Shares issued to the stockholder in respect
of distributions will be at a price equal to the
lower of: (i) the closing sale or bid price, plus applicable commission, of the
Common Stock on the New York Stock Exchange
on the ex-dividend date or (ii) the greater of NAV per share of Common Stock and
95% of the closing price of the Common
Stock on the New York Stock Exchange on the ex-dividend date (without adjustment
for the exercise of Warrants
remaining outstanding). The issuance of Common Stock at less than NAV per share
will dilute the NAV of all Common Stock
outstanding at that time.
Tri-Continental
Corporation | 2025
41
Notes
to Financial Statements (continued)
December
31, 2025
The tax treatment of
dividends and capital gain distributions as a participant in the Automatic
Dividend Investment Plan are the same whether you
participate in the Plan and reinvest your Fund distributions or whether 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).
At present there is
no charge for reinvested distribution purchases made under the Automatic
Dividend Investment Plan.
Cash
Purchase Plan. Under the Cash
Purchase Plan, you may elect to purchase additional shares of the Fund’s Common
Stock
with cash dividends paid by other corporations in which stock is owned, or with
cash purchase payments (including via ACH, as
described below).
Under the Cash
Purchase Plan, the Servicing Agent may receive and invest other corporations’
distributions or cash payments made by you
in additional shares of the Fund’s Common Stock (after deducting a $2
per-transaction fee) in your accounts, as
described above in the Fees and Expenses of the Fund table). Purchase orders
received in connection with the Cash Purchase Plan
are generally priced one time per week, typically each Wednesday (or the next
available business day if the NYSE is not open
for business on Wednesday), subject to the potential for the suspension of such
purchases under certain
circumstances. Cash purchase payments forwarded by you under the Cash Purchase
Plan should be made payable to Tri-Continental
Corporation and mailed to the following regular or overnight mail
address:
Regular Mail:
Tri-Continental Corporation
P.O. Box 219371
Kansas City, MO 64121-9371
Tri-Continental Corporation
P.O. Box 219371
Kansas City, MO 64121-9371
Overnight
Mail:
Tri-Continental Corporation
801 Pennsylvania Ave., Ste 219371
Kansas City, MO 64105-1307
Tri-Continental Corporation
801 Pennsylvania Ave., Ste 219371
Kansas City, MO 64105-1307
Checks for
investment must be in U.S. dollars drawn on a domestic bank. You will be
assessed a $15 fee for any checks rejected by your
financial institution due to insufficient funds or other reasons. The Fund does
not accept cash, credit card, convenience checks,
money orders, traveler’s checks, starter checks, third or fourth party checks,
or other cash equivalents.
Automated
Clearing House (ACH). If you elect to
participate in the Cash Purchase Plan, you may establish the ACH privilege
on your
account, which allows you to transfer money directly from your bank account by
electronic funds transfer to be invested in
additional shares of Common Stock for your Direct-at-Fund
Account.
You may elect to
participate, change your election, or terminate participation in any investment
option available under the Investment Plans at
any time by completing the “Tri-Continental Corporation Authorization Form”
(which provides details for each of the
investment options available under the Investment Plans) available at
columbiathreadneedleus.com. There is no minimum additional
investment. Purchases and sales of shares of the Fund’s Common Stock (other than
for tax-deferred retirement plan
accounts) are limited to a total of 12,500 shares transacted per calendar
quarter, subject to a maximum 40,000 shares per
calendar year, per account (including any related accounts, e.g., those under
the same social security number or tax
identification number or otherwise under common control), subject to certain
limited exceptions at the sole discretion of the
Fund.
Stockholders may
elect to terminate participation in the Investment Plans at any time by
contacting the Servicing Agent (note that a minimum
notice in advance of a pending transaction may be required) in writing. The
Investment Plans, with respect to a
Direct-at-Fund Account, will terminate automatically upon full liquidation of
the account. If your shares are held in book credit form,
you may terminate your participation in the Investment Plans and (i) receive a
certificate for all or a part of your shares, or
(ii) have all or a part of your shares sold for you by the Fund, and retain any
unsold shares in book credit form or receive a
certificate for any unsold shares. If you elect to have shares sold, you will
receive the proceeds from the sale. Only
participants whose shares are held in book credit form may elect upon
termination of their participation in the Investment Plans to
have shares sold in the above manner. Instructions must be signed by all
registered stockholders and should be sent to
the Fund at the address above. This will not affect the date on which your
instruction to sell shares is
42
Tri-Continental
Corporation | 2025
Notes
to Financial Statements (continued)
December
31, 2025
actually processed.
If your Direct-at-Fund Account is terminated between the record and payment
dates of a Fund distribution, the
distribution payment will be made in cash. The Servicing Agent may amend or
terminate the Investment Plans at any time
upon written notice to stockholders. Additional information about the Investment
Plans is available by contacting the
Servicing Agent at the contact information noted above. As of February 11, 2026,
7,612 stockholders, owning approximately
18,222,202 shares of Common Stock, were using the Investment Plans.
The Fund, in
connection with its Investment Plans, acquires and issues shares of its own
Common Stock, as needed, to satisfy the
requirements of the Investment Plans. A total of 37,958 shares were issued to
the participants of the Cash Purchase Plan during
the period for proceeds of $1,184,727, a weighted average discount of 13.11%
from the NAV of those shares. In addition,
a total of 3,194,017 shares were issued at market price in distributions during
the period for proceeds of $101,906,813, a
weighted average discount of 11.37% from the NAV of those
shares.
For the year ended
December 31, 2025, the Fund purchased 636,636 shares of its Common Stock from
the Cash Purchase Plan participants at
a cost of $20,589,629, which represented a weighted average discount of 10.70%
from the NAV of those acquired
shares.
On September
8, 2025, the Fund’s Board approved the Fund’s stock repurchase program,
under which the Fund repurchases up to 5% of the
Fund’s outstanding Common Stock during the year directly from Stockholders and
in the open market, provided that, with
respect to shares purchased in the open market, the excess of the NAV of a share
of Common Stock over its market price
(the discount) is greater than 10%; 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. The intent of the stock repurchase
program is, among other things, to moderate the growth in the number of shares
of Common Stock outstanding,
increase the NAV of the Fund’s outstanding shares, reduce the dilutive impact on
stockholders who do not take capital gain
distributions in additional shares, and increase the liquidity of the Fund’s
Common Stock in the marketplace. For the year ended
December 31, 2025, including under a slightly different program prior to
September 2025 that did not suspend Fund
repurchases between declaration date and ex-dividend date of a Fund
distribution, the Fund purchased 1,612,817 shares of
its Common Stock in the open market at an aggregate cost of $51,678,386, which
represented a weighted average
discount of 10.76% from the NAV of those acquired shares.
Shares of Common
Stock repurchased to satisfy the Plan requirements or in the open market
pursuant to the Fund’s stock repurchase program
are no longer outstanding.
Warrants
At December 31,
2025, the Fund reserved 193,859 shares of Common Stock for issuance upon
exercise of 8,014 Warrants, each of which
entitled the holder to purchase 24.19 shares of Common Stock at $0.93 per
share.
Assuming the
exercise of all Warrants outstanding at December 31, 2025, net assets would have
increased by $180,289 and the net asset value
of the Common Stock would have been $36.22 per share. The number of Warrants
exercised during the year ended December
31, 2025 was zero.
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.
Tri-Continental
Corporation | 2025
43
Notes
to Financial Statements (continued)
December
31, 2025
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. 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.
44
Tri-Continental
Corporation | 2025
Notes
to Financial Statements (continued)
December
31, 2025
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
10. Subsequent
events
Management has
evaluated the events and transactions that have occurred through the date the
financial statements were issued and noted no
items requiring adjustment of the financial statements or additional
disclosure.
Note
11. Information
regarding pending and settled legal proceedings
Ameriprise Financial
and certain of its affiliates are involved in the normal course of business in
legal proceedings which include regulatory
inquiries, arbitration and litigation, including class actions concerning
matters arising in connection with the conduct of 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.
Tri-Continental
Corporation | 2025
45
Report
of Independent Registered Public Accounting
Firm
To
the Board of Directors and Stockholders of Tri-Continental
Corporation
Opinion
on the Financial Statements
We have audited the
accompanying statement of assets and liabilities, including the portfolio of
investments, of Tri-Continental
Corporation (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.
We have also
previously audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the
statements of assets and liabilities, including the portfolios of investments,
of the Fund as of December 31, 2024,
2023, 2022 and 2021, the related statements of operations for each of the years
ended December 31, 2021 through 2024
and the statements of changes in net assets for each of the years ended December
31, 2021 through 2023 (none of which
are presented herein), and we expressed unqualified opinions on those financial
statements. In our opinion, the
information set forth in the Senior Securities - $2.50 Cumulative Preferred
Stock table of the Fund for each of the five years in
the period ended December 31, 2025 is fairly stated, in all material respects,
in relation to the financial statements from
which it has been derived.
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. 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.
46
Tri-Continental
Corporation | 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 |
|
37.75% |
35.72% |
2.37% |
$121,017,374 |
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 stockholders, 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.
Tri-Continental
Corporation | 2025
47
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 |
|
Kathleen
Blatz
c/o
Columbia Management
Investment
Advisers, LLC,
290
Congress Street
Boston,
MA 02210
1954 |
Director
since
November
2008 |
Attorney,
specializing in arbitration and mediation,
since
2006; Trustee of Gerald Rauenhorst 1982
Trusts,
2020-2024; Interim President and Chief
Executive
Officer, Blue Cross 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 |
48
Tri-Continental
Corporation | 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 |
|
Pamela
G. Carlton
c/o
Columbia Management
Investment
Advisers, LLC,
290
Congress Street
Boston,
MA 02210
1954 |
Director
since
November
2008;
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 |
|
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
|
Tri-Continental
Corporation | 2025
49
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 |
|
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 |
|
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 |
50
Tri-Continental
Corporation | 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 |
|
Catherine
James Paglia
c/o
Columbia Management
Investment
Advisers, LLC,
290
Congress Street
Boston,
MA 02210
1952 |
Director
since
November
2008 |
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 |
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 Statement of
Additional Information has additional information about the Fund’s Board members
and is available, without charge, upon
request by calling 800.345.6611, contacting your financial intermediary or
visiting
investor.columbiathreadneedleus.com.
investor.columbiathreadneedleus.com.
Tri-Continental
Corporation | 2025
51
Directors
and Officers (continued)
(Unaudited)
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 printing
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. |
|
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). |
52
Tri-Continental
Corporation | 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 |
|
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)
The 95th Annual
Meeting of Stockholders of Tri-Continental Corporation (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 or until their successors are duly
elected and qualified was as follows:
|
Director |
For |
Withheld |
|
Daniel
J. Beckman* |
34,228,281 |
1,501,768 |
|
Janet
L. Carrig |
33,854,861 |
1,875,188 |
|
Douglas
A. Hacker |
33,267,768 |
2,462,281 |
|
Sandra
L. Yeager |
34,344,202 |
1,385,847 |
*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 |
|
34,613,468 |
701,380 |
415,201 |
Tri-Continental
Corporation | 2025
53
Tri-Continental
Corporation
P.O. Box
219371
Kansas City, MO
64121-9371
You should
consider the investment objectives, risks, charges and expenses of the Fund
carefully before investing. A prospectus containing
information about the Fund (including its investment objectives, risks, charges,
expenses and other information about the Fund) may be
obtained by contacting your financial advisor or Columbia Management Investment
Services Corp. at 800.345.6611, option 3. The
prospectus should be read carefully before investing in the Fund.
Tri-Continental Corporation is managed by Columbia Management
Investment Advisers, LLC.
Columbia
Threadneedle Investments® (Columbia
Threadneedle) is the global brand name of the Columbia and Threadneedle group of
companies.
All rights reserved.
© 2026
Columbia Management Investment Advisers, LLC.
columbiathreadneedleus.com/investor/
ANN240_12_T01_(02/26)